Khazanah Nasional

Khazanah Nasional Berhad
Sovereign wealth fund investment company
Industry Sovereign wealth fund
Founded 1993
Headquarters Kuala Lumpur, Malaysia
Key people
 Mahathir Mohamad, Chairman
Shahril Ridza Ridzuan, Managing Director
Revenue Profit Before Tax: RM2.89 billion (2017)
Total assets Realiasable Asset Value: RM157.2 billion (2017)
Owner Government of Malaysia
Parent Malaysian Ministry of Finance
Subsidiaries
Website www.khazanah.com.my

Khazanah Nasional Berhad is the sovereign wealth fund of the Government of Malaysia.

Khazanah holds and manages selected commercial assets of the Government and undertakes strategic investments on behalf of the nation. It is involved in sectors such as power, telecommunications, finance, healthcare, aviation, infrastructure, leisure and tourism, and property, amongst others.

Khazanah is a member of the International Forum of Sovereign Wealth Funds,[1] which maintains and promotes the Santiago Principles on best practices in managing sovereign wealth funds. It is also a signatory of the United Nations-supported Principles for Responsible Investment (UNPRI), signatory of the Malaysian Code for Institutional Investors and a member of the Institutional Investor Council Malaysia (IIC), member of FCLTGlobal (Focusing Capital on the Long Term), and signatory of the Malaysian Anti-Corruption Commission’s (MACC) Corporate Integrity Pledge.

Its portfolio includes Axiata, CIMB, Tenaga Nasional, IHH Healthcare, UEM Group, Telekom Malaysia, Malaysia Airlines, and Malaysia Airports.

Khazanah was incorporated under the Companies Act, 1965 in Malaysia on 3 September 1993 as a public limited company and commenced operations a year later. Khazanah is owned by the Malaysian government and administered by the Minister of Finance Incorporated, except for one share held by the Federal Land Commissioner.

Khazanah is governed by a Board of Directors comprising representatives from the Government and the corporate sector with diverse professional backgrounds and expertise.

In 2017, Khazanah registered a proforma profit before tax (PBT) of RM2.89 billion, a 85% increase over the previous year.[2] Its portfolio increased 8.2% to RM157.2 billion in terms of its realisable asset value (RAV), and rose 13.2% to RM115.6 billion in terms of net worth adjusted (NWA). Khazanah also made 14 investments totalling RM6.3 billion and 12 divestments with proceeds amounting to RM6.4 billion, with a gain on divestments of RM2.5 billion for the year. Khazanah Nasional has regional offices in Shanghai, Mumbai, Istanbul, San Francisco and London to support its investment activities overseas. [3]

History

Incorporation

Khazanah was incorporated under the Companies Act 1965 on 3 September 1993 as a public limited company and commenced operations a year later. Except for one share owned by the Federal Land Commissioner, all the share capital of Khazanah is owned by the Minister of Finance Incorporated, a body incorporated pursuant to the Minister of Finance (Incorporation) Act 1957.

The New Mandate

In 2004, Khazanah went through a strategic revamp and was given its current mandate. Tan Sri Datuk Wira Azman Hj Mokhtar, the former Managing Director of Khazanah, was appointed to the position in that year. In 2018, Datuk Shahril Ridza Ridzuan was appointed Managing Director.[4]

Khazanah strives to create sustainable value and cultivate a high-performance culture that helps contribute to Malaysia's economic competitiveness. By taking a proactive investment approach, it aims to build true value through management of its core investments, leveraging on its global footprints for new growth, as well as undertaking catalytic investments that strategically boost the country's economy. It also actively develops human, social and knowledge capital for the country.

Leadership and Governance

Board of Directors

Khazanah is governed by its board of directors, which is led by Tun Dr. Mahathir Mohamad, the Prime Minister of Malaysia, as Chairman of the Board. The Board members comprise representatives from the Government as well as the corporate sector with diverse professional backgrounds and expertise. The Managing Director reports to the Board.

List of Chairmen and Managing Directors
Chairman Year appointed Managing Director Year appointed
Tun Dr. Mahathir Mohamad 1994 Tan Sri Dato' Mohd Sheriff Mohd Kassim 1994
Tun Abdullah Ahmad Badawi 2003 Dato' Anwar Aji 2003
Dato' Sri Mohd Najib Abdul Razak 2009 Tan Sri Datuk Wira Azman Hj Mokhtar 2004
Tun Dr. Mahathir Mohamad 2018 Datuk Shahril Ridza Ridzuan 2018

The Board meets regularly and is ultimately accountable and responsible for Khazanah’s overall governance and performance[5]. A Board Charter sets out the roles and responsibilities of the board in overseeing the management of Khazanah.

Khazanah is guided by a framework that establishes a responsibility, authority and governance structure. Its Governance and Risk Management Framework comprises a Risk Management Policy, Schedule of Matters for the Board, Limits of Authority for the management, Code of Conduct for employees, and operational Policies and Procedures.

Board Members

Chairman:

Directors:

Management Team
  • Managing Director – Datuk Shahril Ridza Ridzuan[7]
  • Deputy Managing Director, Executive Director, Investments, and Head of Strategic Management Unit, MD’s Office – Ahmad Zulqarnain Onn
  • Deputy Managing Director, Executive Director, Investments, and Head of Investments – Tengku Dato’ Sri Azmil Zahruddin Raja Abdul Aziz
  • Executive Director, Investments – Dato’ Noorazman Abd Aziz
  • Executive Director, Investments and Head of Khazanah Research & Investment Strategy – Datuk Hisham Hamdan
  • Executive Director, Investments – Zaida Khalida Shaari
  • Executive Director, Investments – Dato' Mohd Izani Ghani [8]
  • Executive Director, Investments – Nik Rizal Kamil [8]
  • Executive Director, Investments – Roni Lihawa Abdul Wahab [8]
  • Executive Director, Investments – Serena Tan Mei Shwen [8]
  • Executive Director, Khazanah Nasional Consulting (Beijing) Company Limited – Bryan Lim
  • Executive Director, Investments – Amran Hafiz Affifudin
  • Executive Director, Khazanah Europe Investment Ltd - Javier Santiso
  • Executive Director, Khazanah India Advisors Pte Ltd - Chinta Bhagat
  • Executive Director, MD’s Office and Head of MD’s Office – Jiv Sammanthan
  • Executive Director, MD’s Office and Head of Special Projects Office – Mohd Izani Ashari
  • Director, MD’s Office and Chief Risk Officer – Suhana Dewi Selamat [8]
  • Director, Finance and Chief Financial Officer – Faridah Bakar Ali [8]
  • Executive Director, Corporate & Support Services, Company Secretary, and Head, Legal – Dato' Mohamed Nasri Sallehuddin[9]
  • Executive Director, Strategic Human Capital Management and Head of Strategic Human Capital Management – Latifah Daud

Portfolio companies

Khazanah's investee companies are involved in various sectors (as at 31 December 2017; list is not exhaustive). [10]

Agrifood

  • Agrifood Resources (100%)
  • Malaysian Agrifood Corp (MAFC) (100%)
  • Blue Archipelago (100%)
  • Biotropics (100%)
  • The Holstein Milk Company (30%)

Aviation

Creative & Media

  • Granatum Ventures (100%)
  • ASTRO Malaysia Holdings (20.7%)
  • Iskandar Malaysia Studios (99.4% owned by Granatum Ventures)

Financial Services

  • CIMB Group (27.3%)
  • IDFC (9.5%)
  • Avicennia Capital (100%)
    • Sun Life Malaysia Assurance (49% owned by Avicennia Capital)
    • Sun Life Malaysia Takaful (49% owned by Avicennia Capital)
    • Acibadem Sigorta (100% owned by Avicennia Capital)
  • ACR Capital (24%)
  • Jadwa Investment (10.3%)
  • Bank Muamalat (30%)
  • ValueCap (33.3%)
  • Fajr Capital (19.1%)
  • BDO Unibank (3.9%)

Healthcare

  • IHH Healthcare (42.3%)
  • Acibadem (60% owned by IHH, 15% by Khazanah)
  • ReGen (60%)

Infrastructure & Construction

  • UEM Group (100%)
    • PLUS Malaysia (51% owned by UEM Group)
    • UEM Builders (100% owned by UEM Group)
    • Cement Industries of Malaysia (CIMA) (100% owned by UEM Group)
    • UEM Edgenta (69.1% owned by UEM Group)

Innovation & Technology

Life Sciences

  • Xeraya Capital (100%)

Leisure & Tourism

  • Themed Attractions Resorts & Hotels (100%)

Power

  • Tenaga Nasional (28.9%)
  • Shuaibah Water & Electricity Company (6% owned by Tenaga Nasional, 12% by Khazanah)

Property

  • UEM Sunrise (66.1% owned by UEM Group)
  • Iskandar Investment Berhad (60%)
  • Iskandar Ventures (100%)
  • Medini Iskandar Malaysia (40% owned by Iskandar Ventures, 20% owned by Iskandar Investment Berhad)
  • M+S Pte Ltd (60%)
  • Sunway Iskandar (40%)
  • Pulau Indah Ventures (50%)
  • Southern Marina (30%)
  • Putrajaya Holdings (15.6%)
  • 8990 Holdings (8.6%)

Sustainable Development

  • Cenviro (100%)
  • Cenergi Southeast Asia (92.9%)
  • Beijing Enterprises Water Group (4.6%)

Telecommunications

  • Axiata (37.3%)
  • Telekom Malaysia (26.2%)
  • edotco (10.6% owned by Khazanah, 63% owned by Axiata)
  • Pulau Kapas Ventures (30%)
  • TIME dotCom (30.5% owned by Pulau Kapas Ventures, 11.2% by Khazanah)

Others

  • John Keells (10.2%)
  • LeapEd (100%)
  • i2M Ventures (100%)

Portfolio Segmentation

A. By major sectors (as at 31 December 2017)

  • Healthcare (13.9%)
  • Financial Services (16.9%)
  • Property (9.0%)
  • Power (15.9%)
  • Transportation & Logistics (6.0%)
  • Infrastructure & Construction (3.4%)
  • Media & Communications (17.0%)
  • Innovation & Technology (5.2%)
  • Leisure & Tourism (2.2%)
  • Others (3.0%)
  • Sustainable Development (1.2%)
  • Consumer (0.8%)
  • Life Sciences (0.6%)
  • Agrifood (0.3%)
  • Education (0.03%)
  • Creative (2.3%)
  • Cash (2.2%)

B. By geographic exposure (as at 31 December 2017)

  • Malaysia (55.5%)
  • Singapore (11.8%)
  • Indonesia (5.1%)
  • Turkey (5.7%)
  • China (7.7%)
  • India (4.4%)
  • Philippines (1.6%)
  • Others (0.9%)
  • Japan (0.1%)
  • Cambodia (0.4%)
  • Middle East (0.8%)
  • North America (1.5%)
  • Sri Lanka (1.3%)
  • Africa (0.2%)
  • Europe (0.8%)
  • Thailand (0.8%)
  • Bangladesh (1.3%)

References

  1. ↑ International Forum of Sovereign Wealth Funds. "IFSWF Our members". Archived from the original on 27 September 2016. Retrieved 24 September 2016.
  2. ↑ "Fourteenth Khazanah Annual Review". Khazanah Nasional Berhad.
  3. ↑ https://uk.reuters.com/article/uk-malaysia-swf-khazanah/malaysia-sovereign-fund-opens-london-office-as-its-europe-hq-idUKKCN0YA0P1
  4. ↑ "Khazanah appoints Datuk Shahril Ridza Ridzuan as Managing Director". Khazanah Nasional Berhad. 3 August 2018.
  5. ↑ "Our Governance and Accountability Framework". The Khazanah Report 2017. 1 May 2018.
  6. ↑ "Azmin, Hassan Merican, Sukhdave appointed to Khazanah board". Bernama. Borneo Post. 30 July 2018. Retrieved 30 July 2018.
  7. ↑ "Khazanah appoints Datuk Shahril Ridza Ridzuan as Managing Director". Khazanah Nasional Berhad. 3 August 2018.
  8. 1 2 3 4 5 6 "Khazanah announces appointments and changes to refresh and further strengthen Senior Leadership Team". 28 April 2017.
  9. ↑ "Tengku Hassanal Ibrahim Alam Shah Leads Recipients Of Pahang State Awards". 24 October 2016.
  10. ↑ "Selected portfolio of companies". Khazanah Nasional Berhad.
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