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INVESTING IN GROWTH AND DEVELOPMENT

Khazanah’s investment strategy is aligned to the national development agenda

Our approach is driven by our mission to create sustainable value for a globally competitive Malaysia.

Our investments are primarily commercially driven, anchored on financial value creation while also taking into account economic contribution, in terms of job creation, technological content, societal returns and other forms of economic multipliers.

Our investments cut across different types of transactions, from corporate exercises to large-scale development projects. All investments are rigorously evaluated and submitted to the Board of Directors for consideration and approval.

Part of our investment strategy can be seen in efforts to further strengthen our Core Investments, which are chiefly the Government’s commercial assets that we hold and manage. Our investee companies are some of Malaysia’s largest companies and leading players in their respective sectors.

We are active shareholders, collaborating with our investee companies, supporting them where necessary to help achieve their strategic objectives, including becoming regional players in their own right.

To support the country’s aspiration to become a developed nation, we also participate in a broad array of Catalytic Investments on the home front. These investments include those that are able to deliver financial as well as strategic and societal returns to develop new areas, build capacity for the nation and effect transformative changes in the economy in the long term. This can be seen in our initiatives in Iskandar Malaysia in Johor, where we invested significant resources into the growth corridor’s development, as well as various strategic and developmental sectors.

We also invest – both directly and through our investee companies – in new sectors and geographies that offer strong potential to help build the country’s long-term competitiveness. These Growth Investments, as they are called, include investments that we believe will shape the economy of the future, provide strategic linkages, and enable the nation to tap into new sources of growth.

For example, our investments in the Innovation & Technology (I&T) sector are part of our mandate to create long-term value for Malaysia. While there are certain risks ascribed to I&T investments, our I&T portfolio is prudently managed to mitigate those risks.

Overall, our investment strategy has allowed us to have a robust investment portfolio that is well-balanced and poised for growth. The net worth adjusted (NWA) of our portfolio stood at RM102.1 billion as at 31 December 2016, having grown at compounded annual growth rate of 9.3% per annum since 2004. This growth has been achieved by balancing an appropriate risk appetite and return-on-investments outlook with the national strategic imperative of having strong, sustainable and inclusive economic growth.

An aerial view of Puteri Harbour in Iskandar Puteri
An artist impression of Acibadem Altunizade Hospital, the healthcare group’s newest investment in Turkey

We highly appreciate our partnership with Khazanah especially as we share the same aspiration and values. Our partnership is based on mutual respect not financials. As a team, we work together day and night to achieve our goal “Do business for a better world”. Our long term relationship will continue to grow for further future successes.

Satoshi Tanaka
Executive Vice President
Mitsui & Co., Ltd.

“We help create value by identifying individuals and firms with long term growth potential and share the value created with the government, employees, suppliers, clients, other stakeholders and the society at large. It is important to share the value created to give everyone an opportunity to develop their ideas, helping set off a multiplier effect bringing enormous benefits to all.”

Dominic Savio Oscar Dcosta
Vice President, Investments Khazanah India Advisors Private Limited