Khazanah Nasional

Khazanah Nasional
خزانه ناسيونل
Government-owned unlisted public
Industry Sovereign wealth fund
Founded 1993
Headquarters Kuala Lumpur, Malaysia
Key people
 Najib Tun Razak, Chairman
Azman Mokhtar, Managing Director
Revenue Undisclosed
Total assets RM150.2 billion
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 a member of the International Forum of Sovereign Wealth Funds[1] and has therefore signed up to the Santiago Principles on best practice 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 ten-member Board of Directors comprising representatives from the Government and the corporate sector with diverse professional backgrounds and expertis. Najib Razak, the current Prime Minister of Malaysia and Minister of Finance, is the Chairman of the Board.

In 2015, Khazanah's portfolio grew by nearly 3.2% to RM150.2 billion in terms of its realisable asset value (RAV), and declined by 1.6% to RM108.9 billion in terms of net worth adjusted (NWA). It also registered a proforma profit before tax (PBT) of RM1.2 billion. Khazanah also made 23 investments totalling RM8.7 billion and 10 divestments with a gain on divestment of RM2.9 billion for the year.[2]

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 Dato' Azman Hj Mokhtar, the current Managing Director of Khazanah, was appointed to the position in that year. He reports to a ten-member Board of Directors chaired by Malaysia's Prime Minister and Minister of Finance, Dato' Sri Mohd Najib Tun Hj Abdul Razak.[3]

Khazanah’s vision is to be the leading strategic investment house that creates sustainable value for a globally competitive Malaysia. Its proactive investment approach includes the management of existing investments and the GLC Transformation Programme, and making strategic investments in new sectors and geographies that are deemed important to Malaysia’s future. It is also involved in the active development of human, social and knowledge capital for the country.

Leadership

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.

Chairman - Dato' Seri Mohd Najib Tun Abdul Razak, Prime Minister and Finance Minister of Malaysia

Deputy Chairman – Tan Sri Dato’ Seri Utama Nor Mohamed Yakcop, former Minister in the Prime Minister’s Department and Minister of Finance II, and Special Economic Adviser to the Prime Minister

Board members
Management Team

Governance framework

Khazanah is guided by a governance and accountability framework that establishes a clear structure of responsibility, authority and governance in how we operate. This is strengthened by internal systems and controls in the form of policies, procedures and guidelines on matters ranging from risk management and investment approvals to corporate values and ethical standards.

Khazanah makes disclosures of its performance and operations, including information required by law and the relevant authorities or voluntary dissemination of information to our stakeholders, including the public, across various platforms and forums.

Khazanah accounts are audited by an independent external auditor as well as the Auditor-General’s Office, and the audited financial statements are submitted to the Companies Commission of Malaysia. Key information is also shared with the Public Accounts Committee (PAC).

Public key information is also available on Khazanah’s official website and annual publications, including The Khazanah Report.

Portfolio companies

Khazanah's investee companies are involved in various sectors such as:

Agriculture

Aviation

Creative & media

Financial services

Healthcare

Infrastructure & construction

Innovation & technology

Life Sciences

Leisure & tourism

Power

Property

Sustainable development

Telecommunications

Others

Portfolio segmentation by major sectors (as at 31 December 2015)

RAV by geography (as at 31 December 2015)

Thought leadership

Khazanah Megatrends Forum (KMF)

Held annually preceding Khazanah’s strategy and business planning cycle, KMF brings together experts and thought leaders to discuss the main mega trends, as well as to address topical matters of interest. Invited guests were Malaysian corporate leaders, policy makers, think tanks and practitioners from the public and private sectors as well as civil society.

Khazanah Global Lectures (KGL)

As part of the mandate for human capital development, KGL features global leaders and thinkers that have influenced the way people live, work and think; to share their thoughts, beliefs and ideas. With the theme “development”, each speaker share his/her own experience and ideas on international, economic, social and corporate development issues while taking into consideration Malaysia’s past, present and future direction. KGL is broadcast live to universities across the nation to ensure a wider reach among the younger generation and future leaders of Malaysia.

Corporate responsibility

Khazanah’s corporate responsibility (CR) is led by Yayasan Hasanah (Hasanah), a foundation incorporated in December 2013 to carry out an enhanced and more strategic approach to sustainable value distribution. Hasanah supports efforts that empower communities, encourage social inclusivity, and improve local environments.[7]

Its 5 core areas:

References

  1. ↑ International Forum of Sovereign Wealth Funds. "IFSWF Our members". Retrieved 24 September 2016.
  2. ↑ The Khazanah Report 2015. 2016. pp. 30 & 37.
  3. ↑ The Khazanah Report 2015. Khazanah Nasional. 2016. pp. 14–15.
  4. ↑ "Datuk Johari Abdul Ghani appointed to Khazanah Board of Directors". 15 September 2016.
  5. ↑ "The Star KWAP chairman Irwan appointed to Khazanah board". 3 July 2015.
  6. ↑ "Tengku Hassanal Ibrahim Alam Shah Leads Recipients Of Pahang State Awards". 24 October 2016.
  7. ↑ "Yayasan Hasanah website". Yayasan Hasanah.

External links

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