Malaysia sovereign fund Khazanah to diversify portfolio amid lower 2024 profits
MALAYSIAN sovereign wealth fund Khazanah Nasional Bhd will further diversify its global portfolio but expects a difficult year in 2025, its managing director said on Wednesday after the fund posted a drop in profit for 2024.
Khazanah said its 2024 profit from operations fell to RM5.1 billion (S$1.6 billion) from RM5.9 billion in 2023.
Net asset value grew 22.2 per cent to RM103.6 billion in 2024 from RM84.8 billion a year earlier.
Khazanah’s portfolio includes Malaysia’s second-largest lender CIMB Group, electricity utility Tenaga Nasional and national carrier Malaysia Aviation Group. It invests in sectors ranging from energy and healthcare to information technology and real estate, according to its website.
Managing director Amirul Feisal Wan Zahir told a press conference that higher interest rates, a stronger US dollar, geopolitical tensions, and trade fragmentation meant 2025 was “not going to be easy”. He said Malaysia would need to play smart, as it was caught between the US and China, which are currently at odds over tariffs.
Amirul Feisal said Khazanah’s performance was underpinned by strong exports and tourist arrivals, as well as an increase in foreign direct investment and investor confidence in Malaysia.
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The fund will increasingly invest in public equities and private markets in the US, Europe, Japan and China, its chief investment officer Hisham Hamdan said.
Khazanah paid a dividend of RM1 billion for 2024 to the Malaysian government, the same amount as in 2023. REUTERS
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