Khazanah Nasional

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Khazanah Nasional Berhad
Government-linked investment company
Industry Sovereign wealth fund
Founded 1993
Headquarters Kuala Lumpur, Malaysia
Key people
Azman Mokhtar, Managing Director
Revenue Undisclosed
Total assets RM145.1 billion
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. The fund 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.

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 2016, Khazanah registered a proforma profit before tax (PBT) of RM1.55 billion, a 32% increase over the previous year.[2] Its portfolio decreased 3.4% to RM145.1 billion in terms of its realisable asset value (RAV), and declined 6.4% to RM101.9 billion in terms of net worth adjusted (NWA). Khazanah also made investments totalling RM8.7 billion and 13 divestments with proceeds amounting to RM4.7 billion, with a gain on divestments of RM2.9 billion for the year. Khazanah Nasional opened a regional office in The Shard, London - The world's financial capital in 2016 to support the fund's investment activities in Europe [3]

History[edit]

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 Dato' Azman Hj Mokhtar, the current Managing Director of Khazanah, was appointed to the position in that year. He reports to the board of directors.[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[edit]

Board of directors

Khazanah is governed by its board of directors. The board members consist of representatives from the Government as well as the corporate sector with diverse professional backgrounds and expertise.

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

The Board is assisted by two sub-committees – the Executive Committee (EXCO) and the Audit & Risk Committee (ARC). The four-member EXCO comprises three Non-Executive Directors and one Executive Director while the ARC consists of three independent Directors.

Board members
  • Tan Sri Md Nor Md Yusof, Chairman of Malaysia Airlines and Pelaburan Hartanah
  • Dato’ Mohammed Azlan Hashim, Chairman of SILK Holdings and D&O Green Technologies, and Non-executive Director of IHH Healthcare Berhad and Labuan Financial Services Authority
  • Raja Tan Sri Dato’ Seri Arshad Raja Tun Uda, Chairman of Maxis, Ekuiti Nasional, Asia Capital Reinsurance Malaysia and Yayasan Raja Muda Selangor
  • Tan Sri Mohamed Azman Yahya, Founder and CEO of Symphony House, Executive Chairman of Symphony Life, and board member of Ekuiti Nasional
  • Tan Sri Andrew Sheng Len Tao, Chief Adviser to the China Banking Regulatory Commission and distinguished fellow of Fung Global Institute
  • Dato’ Sri Nazir Razak, Chairman of CIMB Group, board member of the Investment Panel and chairman of the Investment Panel Risk Committee of the Employees Provident Fund
  • Dato’ Dr. Nirmala Menon, former Executive Vice President, Head of Designated Markets & Health Asia at MetLife Asia Pacific Ltd[5]
  • Ms. Yeo Kar Peng, Chairman/Managing Partner of Kendall Court Capital Partners, and board member of Cenviro Sdn Bhd
Management Team
  • Managing Director - Tan Sri Datuk Wira Azman Hj. Mokhtar
  • 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 Overseeing Executive Director of Khazanah Americas Inc. – 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 – Kenneth Shen
  • Executive Director, Investments – Zaida Khalida Shaari
  • Executive Director, Investments – Dato' Mohd Izani Ghani [6]
  • Executive Director, Investments – Nik Rizal Kamil [6]
  • Executive Director, Investments – Roni Lihawa Abdul Wahab [6]
  • Executive Director, Investments – Serena Tan Mei Shwen [6]
  • Executive Director, Investments – 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 [6]
  • Director, Finance and Chief Financial Officer – Faridah Bakar Ali [6]
  • Executive Director, Corporate & Support Services, Company Secretary, and Head, Legal – Dato' Mohamed Nasri Sallehuddin[7]
  • Executive Director, Strategic Human Capital Management and Head of Strategic Human Capital Management – Latifah Daud

Portfolio companies[edit]

Khazanah's investee companies are involved in various sectors such as (as at 31 December 2016):[8]

Agrifood

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

Aviation

Creative & Media

  • ASTRO Holdings Sdn. Bhd. (29.3%)
  • ASTRO Malaysia Holdings (20.7%)
  • Iskandar Malaysia Studios (99.4%)
  • Imagica Southeast Asia (51%)
  • Rhizophora Ventures (100%)

Financial Services

  • CIMB Group (29.3%)
  • 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 (90% owned by Avicennia Capital)
  • ACR Capital (23.4%)
    • ACR Capital Reinsurance Malaysia (30% owned by ACR Capital, 70% by Khazanah)
    • ACR ReTakaful (20% owned by ACR Capital, 40% by Khazanah)
  • Jadwa Investment (10.3%)
  • Bank Muamalat (30%)
  • ValueCap (33.3%)
  • Fajr Capital (21%)
  • BDO Unibank (4.4%)
  • China Huarong Asset Management (3%)
  • CITIC Securities (0.8%)
  • WeLab (12.6%)

Healthcare

Infrastructure & Construction

  • UEM Group (100%)
    • PLUS Malaysia (51% owned by UEM Group)
    • UEM Builders (100% owned by UEM Group)
    • Cement Industries of Malaysia Berhad (CIMA) (100% owned by UEM Group)
    • UEM Edgenta (70.7% owned by UEM Group)

Innovation & Technology

Life Sciences

  • Xeraya Capital (100%)
  • Malaysian Technology Development Corp (MTDC) (100%)

Leisure & Tourism

  • Themed Attractions Resorts & Hotels (100%)

Power

  • Tenaga Nasional (28.9%)
  • TOFM Spartans (100%)
  • 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 (48.6%)
  • Pulau Indah Ventures (50%)
  • Southern Marina (30%)
  • Putrajaya Holdings (15.6%)
  • STLR (100%)
  • 8990 Holdings (8.6%)

Sustainable Development

  • Cenviro (100%)
  • Cenergi Southeast Asia (92.9%)
  • RedT Energy (9.5%)
  • Beijing Development Hong Kong (23.1%)
  • Beijing Enterprises Water Group (4.6%)

Telecommunications

  • Axiata (37.6%)
  • Telekom Malaysia Berhad (26.2%)
  • Pulau Kapas Ventures (30%)
  • TIME dotCom (31.4% owned by Pulau Kapas Ventures, 11.3% by Khazanah)

Others

  • John Keells (10.2%)
  • LeapEd (100%)
  • i2M Ventures (100%)
  • Zivame (23.0%)

Portfolio segmentation by major sectors (as at 31 December 2016)

  • Healthcare (16.2%)
  • Financial Services (15.3%)
  • Property (11.0%)
  • Power (15.7%)
  • Transportation & Logistics (5.8%)
  • Infrastructure & Construction (4.0%)
  • Media & Communications (17.8%)
  • Innovation & Technology (4.0%)
  • Leisure & Tourism (2.2%)
  • Others (2.7%)
  • Sustainable Development (1.3%)
  • Consumer (0.7%)
  • Life Sciences (0.6%)
  • Agrifood (0.4%)
  • Education (0.03%)
  • Creative (0.3%)
  • Cash (1.8%)

Portfolio segmentation by geographic exposure (as at 31 December 2016)

  • Malaysia (54.9%)
  • Singapore (13.0%)
  • Indonesia (4.6%)
  • Turkey (6.5%)
  • China (7.0%)
  • India (4.6%)
  • Philippines (1.4%)
  • Others (0.9%)
  • Japan (0.2%)
  • Cambodia (0.4%)
  • Middle East (1.1%)
  • North America (1.3%)
  • Sri Lanka (1.3%)
  • Africa (0.2%)
  • Europe (0.7%)
  • Thailand (0.7%)
  • Bangladesh (1.2%)

References[edit]

  1. ^ International Forum of Sovereign Wealth Funds. "IFSWF Our members". Archived from the original on 27 September 2016. Retrieved 24 September 2016. 
  2. ^ "Thirteenth 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. ^ The Khazanah Report 2015. Khazanah Nasional. 2016. pp. 14–15. 
  5. ^ "Khazanah Nasional Berhad website". 
  6. ^ a b c d e f "Khazanah announces appointments and changes to refresh and further strengthen Senior Leadership Team". 28 April 2017. 
  7. ^ "Tengku Hassanal Ibrahim Alam Shah Leads Recipients Of Pahang State Awards". 24 October 2016. 
  8. ^ "Selected portfolio of companies". Khazanah Nasional Berhad.