Khazanah on the lookout for potential new strategic investments in Malaysia

KUALA LUMPUR (March 4): Khazanah Nasional Bhd is on the lookout for potential new strategic investments in Malaysia, in line with the call from the government to seek more contributions from government-linked companies (GLCs) and government-linked investment companies (GLICs) to grow the economy, particularly in the current climate.  

“The government is very keen to see how long-term investors like Khazanah can do their part to help spur investments in the sectors, bring about new industries and new entrants to come in, and maybe even partner with the private sector to do this,” said Khazanah managing director Datuk Shahril Ridza Ridzuan (pictured) at the fund’s annual review today.

“And this is an important discussion that we need to have, as we think about investing for the long term for Malaysia’s future growth. That’s where we think about capital recycling, how we recycle capital from older assets into newer assets that can create economic growth and potentially new jobs,” he said. 

While keeping mum on the sort of sectors being explored, Shahril said: “We must think of investments, especially if you think about it strategically, as a tool to spur more economic growth.”  

“So if you are only buying and trading existing assets, I’m not sure if it adds any more growth to the market. Other than inflating asset prices, as you create demand for existing assets.  

“The approach that we are doing with the Ministry of Finance and other counterparts is to try and identify what sectors of the economy Malaysia should really pay attention to, in terms of expanding our investments and their roles in the economy,” he added. 

Last year, Finance Minister Tengku Zafrul Tengku Abdul Aziz pleaded for GLCs and GLICs not to slow down or postpone on domestic investments under the current economic situation, and instead to spend and invest more.  

Khazanah, through its strategic fund, invested some RM4.2 billion in the country last year, Shahril said during the annual review press conference. 

The sovereign wealth fund contributed RM2.2 billion to the government in the form of dividends, taxes and other contributions, he added.

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