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It is without a doubt that as a nation, we had to once again navigate a challenging year, under the shadow of persistent inflation, slower-than-normal economic growth and geopolitical uncertainty. Nonetheless, we managed to weather this storm, buoyed by robust domestic demand. While this is noteworthy, I believe that Malaysia has the potential to deliver more with the support of Khazanah and through strategic collaborations with Government-Linked Companies (GLCs) and Government-Linked Investment Companies (GLICs).
It is without a doubt that as a nation, we had to once again navigate a challenging year, under the shadow of persistent inflation, slower-than-normal economic growth and geopolitical uncertainty. Nonetheless, we managed to weather this storm, buoyed by robust domestic demand. While this is noteworthy, I believe that Malaysia has the potential to deliver more with the support of Khazanah and through strategic collaborations with Government-Linked Companies (GLCs) and Government-Linked Investment Companies (GLICs).
The MADANI Economy Framework was unveiled in July 2023. This is a comprehensive strategy designed to restructure the economy, position Malaysia as a leading player in Southeast Asia, and to ensure that economic benefits are equitably shared by “raising the floor” and “raising the ceiling”. Key components include boosting domestic direct investments (DDI), fostering innovation and advancing up the value chain.
The launch of the National Energy Transition Roadmap (NETR) and the New Industrial Master Plan 2030 are some of the key blueprints that will help us achieve these objectives.
I am pleased to highlight that these proactive measures have been wellreceived and have started to bear fruit. Malaysia recorded a historical high of approved investments of RM329.5 billion in 2023, with a significantly encouraging 35.1% year-on-year increase in DDI. This proves that companies across the entire business spectrum, including GLCs and GLICs, have responded positively to my call to deepen domestic investments. By doing so, it is my firm belief that foreign investors will be emboldened to invest more in Malaysia given the strong confidence that local investors have in our economy.
Dato’ Seri Anwar Ibrahim delivering his closing address at the Khazanah Megatrends Forum 2023.
Khazanah delivered strong financial results in 2023 despite the challenging global and domestic environment, effectively putting its portfolio back on track after a challenging five-year period. It furthered the sustainability agenda with the launch of a green investment platform through UEM Lestra Berhad, further aligning with the NETR’s goal of net-zero emissions by 2050. Additionally, Khazanah invested over RM800 million through Dana Impak to bolster Malaysia’s digital and start-up ecosystems, reinforcing the Advancing Malaysia strategy. Internally, Khazanah met its Environmental, Social and Governance (ESG) targets by achieving carbonneutral operations and establishing a Diversity, Equity and Inclusivity (DEI) framework. Celebrating a decade of philanthropic impact, Yayasan Hasanah has reached over 2.9 million people, significantly advancing education, community development, arts and knowledge.
In 2023, Khazanah pushed ahead with its Advancing Malaysia strategy, aligning itself closely with the MADANI Economy Framework through nationbuilding and sustainable development initiatives. Strategic investments in high-growth sectors such as digital technology and renewable energy have directly contributed to enhancing Malaysia’s economic competitiveness. In addition, Khazanah actively supports the MSME ecosystem by advocating digital transformation and innovation to drive economic activity across the nation.
Khazanah’s focus on socio-economic impact further supported the goals of the MADANI Economy Framework by fostering inclusive growth and building national resilience. Food security was addressed through projects like Dana Impak’s Khazanah Impact Innovation Challenge, while the Future Malaysia Skills initiative bridged the skills gap and prepared the workforce for future demands. Community development efforts, led by Yayasan Hasanah, enhanced socio-economic benefits for underserved populations. Finally, by integrating ESG principles into Khazanah’s operations and refining the SEMARAK impact assessment framework, we are ensuring that our initiatives deliver tangible benefits, contributing to Malaysia’s socio-economic resilience and prosperity.
While considerable progress has been made, our collective and continued success in these endeavours hinges on the unified effort of all stakeholders. Nation-building is a shared responsibility, and Khazanah eagerly seeks collaboration with other GLICs, GLCs, the private sector and the wider Malaysian community to drive growth and secure economic prosperity.
Dato’ Seri Anwar Ibrahim, Datuk Seri Amir Hamzah Azizan and Dato’ Amirul Feisal attended the gallery tour showcasing the vision for rejuvenating Bangunan Sultan Abdul Samad.
Dato’ Seri Anwar Ibrahim at Karnival Kerjaya Program Setahun Bersama Kerajaan Malaysia MADANI held at Stadium Bukit Jalil.
The role of Khazanah has evolved over the past three decades, matching the progress and development of Malaysia’s economic and societal imperatives. Even so, Khazanah remains steadfast to its mission of nation-building. Through strategic investments in sustainable economic and societal value, Khazanah empowers future generations and contributes meaningfully to Malaysia’s advancement.
I believe that Malaysia, located at the heart of Southeast Asia and the epicentre of the wider Asia Pacific region, has much to offer the world. In this regard, Khazanah remains unwavering in its agenda to support Malaysia’s economic growth through strategic value creation in existing investments and by exploring new growth frontiers.
In closing, I extend my sincere gratitude to the Board Members of Khazanah for their steadfast and responsible decisionmaking, ensuring robust governance and performance. I also wish to express my deepest appreciation to the departing Board Members—Tan Sri Mohammed Azlan Hashim, Dato’ Zainal Abidin Putih and Lau Seng Yee—for their dedicated service. Their contributions have been invaluable and their legacy will inspire our continued progress.
Dato’ Seri Anwar Ibrahim
Chairman