Our long-term investments are not just about financial and strategic returns, but also include societal value creation. We do so by balancing capital economy with people economy, which ultimately would lead to higher quality of life for the rakyat. Below are selected Khazanah driven initiatives that promote inclusion and sustainability.

Value Distribution through Yayasan Hasanah

Incorporated in December 2013, Yayasan Hasanah (Hasanah) is set up to lead Khazanah’s corporate responsibility (CR) initiatives, an enhanced and strategic approach to value distribution to the nation for years to come. Hasanah’s mandate is to support the development and implementation of solutions that empower communities, encourage social inclusivity and improve local environments.

Hasanah’s yearly budget is financed through an annual return that is generated from the Khazanah RM3 billion endowment fund. This is largely channelled towards supporting and funding the programmes of its partners, with a minimal allocation for the operations of Hasanah.

As a grant-giving organisation, Hasanah goes beyond ringgit and cents to facilitate an ecosystem of transformation, working in collaboration with multiple stakeholders that includes civil society organisations, communities, corporates, and government agencies, infusing a spirit of advocacy and building capacity in five key focus areas: Education; Community Development; Environment; Arts, Heritage and Culture; and Knowledge. Collectively and collaboratively, Hasanah hopes to shift the needle of social and community reform to deliver long-term social impact for Malaysians, towards a better Malaysia.

In 2017, Hasanah continued to deepen its impact through support provided to programmes that increase number of final beneficiaries; innovate ways and methodologies to achieve long term social impact; and have potential to influence institutional structures and frameworks.

For more info on Yayasan Hasanah, visit www.yayasanhasanah.org

Balancing Capital Economy and People Economy

Click for
Bigger View

EDUCATION

Yayasan Khazanah(“YK”) is entrusted to select, support, groom and nurture exceptional individuals’ who will eventually take on high-level positions in the best organisations including government-linked companies (GLCs) in Malaysia. Apart from offering scholarships at premier universities around the world or in Malaysia, YK also provides a broad range of opportunities for Khazanah scholars including leadership and character development programmes, volunteering opportunities with non-governmental or non-profit making bodies and job attachment in companies including GLCs, GLICs or Government Agencies.

For more info on Yayasan Khazanah, visit www.yayasankhazanah.com.my

Yayasan AMIR is a not-for-profit foundation incorporated on 26 October 2010 by Khazanah Nasional Berhad to improve accessibility of quality education in Malaysian Government schools through a Public-Private Partnership with the Ministry of Education.

The Yayasan AMIR Trust Schools Programme aims to be a leading network of Trust Schools across Malaysia, with the goal of setting up a replicable school transformation model on a nationwide scale. Yayasan AMIR Trust Schools are holistic in nature, inclusive and representative of Malaysia’s diverse ethnic background. We aim to transform student outcomes by promoting enhanced school management practices, and championing improvements to curriculum and delivery of education.

For more info on Yayasan AMIR,
visit www.yayasanamir.org.my

Trust Schools students learning to set up a tent at the Outward Bound School in Lumut, Perak

PROMOTING PUBLIC SPACES

Khazanah is involved in the promotion of public spaces as part of its contribution towards sustainable development by creating more sustainable and liveable cities.

Malaysia is the second Asian country after Japan to have the Cruyff Courts Programme, a collaboration between Yayasan Hasanah and the Johan Cruyff Foundation. Cruyff Court Iskandar Malaysia was launched in 2012 while Cruyff Court Kuala Lumpur in Brickfields was opened in 2013. The programme provides a unique football experience to disadvantaged children, youths and the larger community. Cruyff Courts brings old playing fields that are lost to urbanisation back to the community to restore social unity, as they serve as playing fields as well as meeting places where themes like mutual respect, health, integration, development and teamwork are nurtured. In 2017, two new courts were launched at Projek Perumahan Rakyat (PPR) Air Panas & PPR Seri Semarak in Setiawangsa, Kuala Lumpur.

The launch of Cruyff Court at Projek Perumahan Rakyat (PPR) Seri Semarak, Kuala Lumpur, during Hari Hasanah on 3 Spetember

The Taman Tugu Project is a multi-component not-for-profit corporate social responsibility (CSR) initiative led by Khazanah Nasional Berhad in collaboration with various public sector agencies, private sector companies and civil society organisations through a Public-Private-Civil Society Partnership. They include amongst others, Ministry of Natural Resources and Environment, Ministry of Federal Territories, Economic Planning Unit (EPU), Public Private Partnership Unit (UKAS), Dewan Bandaraya Kuala Lumpur (DBKL), Forest Research Institute of Malaysia (FRIM), Institute of Landscape Architects Malaysia (ILAM) and Malaysian Nature Society (MNS).

On an overall basis, up to RM650 million has been set aside for the project covering the following components:

PARK: Conserving and activating an urban forest park – it’ll be home to approximately 1,000 species of ethnic Malaysian rainforest flora & fauna

CONNECTORS: Connecting the surrounding area to activate Taman Tugu park and further stitch the urban fabric of the city

ILMU: Development of a learning and innovation centre, Khazanah ILMU, contributing to continuous learning and encouraging local start ups

TRUST: Establishment of a National Public Trust including operations, maintenance, partnerships and community development up to 2030

Timeline of Completion

Click for
Bigger View

Public engagement and community development

Click for
Bigger View

For more information on the Taman Tugu Project, visit www.tamantuguproject.com.my

SOCIAL INCLUSION

Evidence-based Policy Research

Khazanah Research Institute (KRI), which started operations in February 2014, aims to undertake analyses and research on the pressing issues of the nation, and based on the research, provide policy recommendations to improve the well-being of Malaysians. In 2017, KRI published two major publications, the first one being “Building Social Capital: The George Town Experiment”, launched at the Khazanah Megatrends Forum 2017 in October. This report highlights the benefits of a Community Development Fund in alleviating the pressures of social displacements in top-down urban regeneration development. In November 2017, KRI also published “Why Trade Matters: Trade Issues in Non-communicable Diseases, Essential Medicines and Education”, the third in a series of reports on international trade and trade policy. This series examines how international trade and trade policy integrate the effects of globalisation into the domestic economy and our daily lives. This report addresses: (1) Trade and policies targeting ‘lifestyle’ diseases; (2) Trade and access to essential medicines; and (3) Trade and access to education. In 2017, KRI also worked alongside the Ministry of Urban Wellbeing, Housing and Local Government to formulate a new National Housing Policy for Malaysia.

For more info on KRI, visit www.krinstitute.org

Driving Urban Rejuvenation

Think City is a community-focused urban regeneration organisation based in George Town, Penang, with operations in Kuala Lumpur, Butterworth and Johor Bahru. Focused on historic city centres, we were first established in 2009. Through the George Town Grants programme, Think City demonstrated the benefits of a community-focused and collaborative approach to regeneration of cities. The success in Penang deepened existing relationships with local and national institutions and opened up further opportunities to widen our partnerships base locally and internationally. Today, working closely with local authorities, communities, institutions, private entities and global experts, Think City continues to trial, plan and implement programmes to rejuvenate cities.

For more info on Think City, visit www.thinkcity.com.my

KONSTRUK, a bamboo installation art project by 15 artists and architects, is part of a place-making initiative to increase the livability of Iskandar Puteri, Johor

An artistic rendering of the micro houses being installed at Medan Pasar in Kuala Lumpur

Development of Iskandar Puteri Public Transport System

The next phase of development for Iskandar Puteri is the setting up of a bus service system that inter-connects all key nodes in the area. According to Iskandar Regional Development Authority (IRDA), work on the Iskandar Malaysia Bus Rapid Transit system is expected to start in early 2019 and will cover 90% of the economic growth corridor.

Affordable Housing in Iskandar Malaysia

In support of the Johor state’s affordable housing scheme, Rumah Mampu Milik Johor, UEM Sunrise has developed Taman Nusantara, Bayu Nusantara, and Denai Nusantara within Iskandar Malaysia.

SUSTAINABILITY

Our philosophy of Building True Value means adopting an inclusive and sustainable approach to meet the needs of our stakeholders, both current and future generations; and is measured by the financial, economic and societal value created through our investments.

Measuring True Value
As the value of inclusiveness and sustainability is subjective with various interpretations, Khazanah has embarked on an internal initiative, called Project Chronos, to objectively measure the value of sustainable practices. Project Chronos will provide a proprietary framework to measure the value impact, including defining indicator benchmarks as the baseline to assess True Value performance. A reflection of good performance can be determined by a positive score by indicator, a positive total score and a positive directional growth over a period of time.

Investing in True Value
Khazanah is constantly on the look-out for investments that fulfil the commercial mandate at the same time create a high social development and inclusion impact. Our impact investments include 8990 Holdings, which focuses on building homes for lower income groups in the Philippines; Cenviro, which is involved in sustainable waste management; and Cenergi SEA in the clean energy sector.

In 2015, Khazanah also successfully demonstrated responsible investing when it successfully combined education and Islamic finance along with socially responsible investments through the issuance of the world’s first Ringgit-denominated Sustainable and Responsible Investment (SRI) Sukuk. This innovative structure, while relatively new, is a powerful concept with investor awareness and responsiveness expected to increase over time. In 2017, the second tranche of the SRI sukuk was launched and featured for the first time a retail portion for individual Malaysians to participate in supporting the cause.

As an institution that advocates sustainability, inclusiveness and responsiveness, Khazanah will continue to strive and push the boundaries of impact investing and find more ways to do so in the future.

Khazanah Americas Inc

Khazanah Americas Inc, which was opened in 2013, helps to faciliate investments in the Americas which are of strategic interest to Khazanah, its investee companies, and Malaysia in general. Located in San Francisco, a premier hub for innovation and technology, the office provides Khazanah with the platform to better evaluate opportunities in the global technology sector.

DELIVERING BENEFITS TO STAKEHOLDERS

Khazanah’s mandate goes beyond value creation in the financial and strategic spheres. We are also tasked with delivery of societal returns, as part of our role in helping Malaysia to achieve developed nation status with a high-income, sustainable and inclusive economy.

To add The Khazanah Report 2017 onto your home screen: tap and then Add to Home Screen