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Khazanah’s commitment to fostering enduring value for Malaysia has shaped our journey as the nation’s sovereign wealth fund over the past three decades. Our long-term vision has propelled the rise of regional leaders across industries, accelerated the growth of innovators and emerging sectors, and championed the adoption of transformative technologies and approaches that safeguard our nation's future. Our strategy emphasises a diversified investment approach to mitigate the effects of economic uncertainties. The Khazanah Report 2023 (TKR2023) outlines our efforts over the past year to grow our portfolio, all driven by the ambition of nurturing Malaysia's long-term wealth.
Established as a public limited company on 3 September 1993, we began our operations in 1994. The ownership primarily lies with the Minister of Finance (Incorporated), except for a single share held by the Federal Lands Commissioner (Incorporated). Our investment portfolio spans various facets of the Malaysian economy, from established listed companies to emerging sectors, and also extends globally across diverse markets, asset types, and geographical areas. We operate under the direct oversight of the Malaysian government, with the Prime Minister, YAB Dato’ Seri Anwar Ibrahim, presiding over our Board of Directors.
We invest to deliver sustainable value for Malaysians.
Positioned at the intersection of government, private sector and the community, we are committed to advancing Malaysia’s development. Our primary goal is to achieve robust, long-term returns that balance risk across our investment portfolio. Our role extends beyond financial returns. We actively foster the growth of emerging industries and businesses within Malaysia, enhancing the nation’s global competitiveness and contributing to its overall prosperity. By doing so, we aim to build dynamic, thriving communities.
Our efforts and investments are dedicated to creating a lasting, positive impact that paves the way for a better future for all Malaysians.
As we celebrate our 30 th anniversary, we reflect on our journey of Advancing Malaysia. We invest in multiple sectors, both locally and internationally, with our investee companies becoming pillars of success for us and the nation. In our commitment to deliver sustainable value for Malaysians, we focus on building capacity and fostering vibrant communities through our value-creation efforts.
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).
Read moreAmid a year of economic volatility and global uncertainties, Khazanah pushed forward, steadfast in our mandate to deliver sustainable value for Malaysians. Through disciplined capital allocation, strategic investments, and an unwavering commitment to sustainability, we continued to contribute towards a more resilient Malaysia, delivering economic and societal returns for the nation.
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For the year under review, the Net Asset Value (NAV) of our Overall Portfolio increased to RM85 billion, reflecting a compounded annual growth rate of 5.1% since 2004. This growth is attributed to disciplined capital allocation and strategic portfolio rebalancing. In terms of portfolio return, the Investments Portfolio achieved a 5-year rolling NAV Time-Weighted Rate of Return (TWRR) of 2.9% and a 1-year NAV TWRR of 5.7%, driven by gains in the developed market portfolio and a partial recovery of listed investee companies in Malaysia.
Financial HighlightsOur intergenerational portfolio aims to generate long-term risk-adjusted returns to preserve and grow the long-term value of our assets.
This impact fund aims to increase Malaysia’s economic competitiveness and build national resilience while delivering socio-economic impact for Malaysians.
These assets are intended to deliver a high economic impact through longterm developmental investments. They require a longer gestation period to realise the targeted financial returns and achieve their national and/or societal benefits and outcomes.
These assets require turnarounds in profitability and sustainable operating cash flows, with specific targets and action plans approved by the Board annually.
Human capital development is crucial for a nation to progress economically and socially. A well-educated and skilled workforce drives productivity, fosters technological advancements and enhances the overall competitiveness of a country. Since 2006, Khazanah has remained steadfast in nurturing Malaysia’s talent pool through a comprehensive range of upskilling and empowerment initiatives.
Future Ready TalentIn 2023, nations around the world continued to move with greater urgency towards solving one of the most pressing challenges of our time - climate change.
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We believe in driving sustainability through:
Embedding sustainability into our investment decision-making processes
Embedding sustainability into our day-to-day practices, including through contributions to society and communities
We continue to implement sustainability enablers across our organisation with the aim of building our internal capabilities and capacity to address sustainability issues. The sustainability enablers we have implemented include:
Offering
training and development
opportunities to all employees, both in-house and external
Advocating
sustainability matters
with our stakeholders
Enhancing our
ESG data and analytics
capabilities
Building a
culture of sustainability
through internal initiatives to manage and reduce emissions and waste
To guide and focus our sustainability efforts over the coming years, we have also committed to the following short, medium and long-term targets across our three pillars. These targets align our aspirations with our stakeholders, including the Government of Malaysia, as well as other national institutions.
We acknowledge that the ESG space is evolving at a fast pace, and in response we will continue to adapt our targets and actions to ensure they remain relevant for the long-term. Since the inception of our ESG Framework in June 2022, we have focused on advancing towards our identified targets. Our commitment lies in fostering lasting and impactful change, ensuring that the measures we take contribute to a sustainable future.
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The Malaysia Futures forum, co-organised by KRI and the LSE Saw Swee Hock Southeast Asia Centre on 31 May and 1 June 2023, brought together over 300 leading scholars, policymakers, think tanks, thought leaders, and young researchers—both in person and virtually—to engage in riveting discourse on the possible ways in which “Malaysia futures” could be imagined.
The Khazanah Research Institute (KRI) conducts in-depth research on critical national issues to provide insights and recommendations for public policies that enhance the socio-economic wellbeing of Malaysians. KRI actively participates in shaping public policy by advocating for evidence-based policy recommendations to policymakers.
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Indigenous (Orang Asli) Bateq families from Kampung Cangkung, Pahang, supporting their children in the Kelas Literasi Rimba Bateq programme by Yayasan Food Bank Malaysia. This initiative motivates 34 enthusiastic children to attend school and is supported by YH in collaboration with the Ministry of Finance (MOF) through the Hasanah Special Grant (HSG).
2023 marks a decade of Yayasan Hasanah (YH) as a leading foundation in Malaysia’s philanthropic sector. Moving beyond traditional charity to focus on social justice for the rakyat, YH has impacted over 2.9 million people from all walks of life since its establishment in 2015.
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Sunlight shining through the trees, enhancing the serenity and beauty of the Taman Tugu trails. Taman Tugu is open daily from 7:00 am to 6:30 pm, with last entry being 5:45 pm.
Taman Tugu, a not-for-profit corporate social responsibility initiative under Khazanah, was developed through collaboration among various public and private sector entities, including multiple ministries and civil society groups.
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Pentas Seni Merdeka, on Jalan Raja at Dataran Merdeka, is part of creative activations aiming to transform Downtown Kuala Lumpur into a global creative and cultural destination, in line with the Ekonomi MADANI aspirations.
As a wholly owned subsidiary of Khazanah, Think City advocates for people-friendly, resilient and liveable cities through collaboration. Since its establishment in 2009, Think City has initiated numerous urban rejuvenation projects across Malaysia, beginning with the George Town Grants Programme (GTGP) in Penang.
Read moreAs we entered three decades of operations, we continue to place our employees as the cornerstone of our value creation. In 2023, we further enhanced high-performance standards across our workforce, enabling us to deliver greater value for the nation. We aim to achieve this by fostering collaboration and openness and offering meaningful learning and development opportunities.
To maximise our employees’ potential, we continued to cultivate our culture based on three Core Values:
Delivering results in an
ethical manner
Deriving value from diverse ideas and opinions
Being mindful of the priorities and circumstances of others
Khazanah volunteers with children from Rumah Kebajikan dan Bimbingan At-Taqwa Puchong during a Berbudi Bersama activity.
KVN unites Khazanah staff, their families, related companies, and nongovernmental organisations, providing a platform to give back to society. In 2023, volunteers participated in various initiatives such as a blood donation drive with Pusat Darah Negara, Celebrate Malaysia @ Taman Tugu, a river cleanup at Sungai Keroh, and the...
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The University Outreach Programme at UKM.
We launched the University Outreach Programme and ‘Super Tuesday’ to engage with public universities in Malaysia to promote a more equitable and inclusive society, aligning with nation-building objectives.
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Meet the graduates who joined Khazanah’s Graduate Trainee Programmes. From left to right: Kelvin Wong Chern Wei (Investments), Wan Afriena Rasydan (Investments), Roshan Sivabalan (Investments), Adlan Hidayat (Investments), and Edryna Syfinaz Zarif Ahmed Zaharani (Research).
The KGTP is a rigorous 12-month programme that exposes top graduates to diverse sectors and fields. This immersive experience fosters accelerated growth within a dynamic, fast-paced environment. Exceptional graduates are offered the opportunity to advance their careers as Associates at Khazanah, which provides a unique platform to contribute their talents and progress the nation.
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KLDP Cohort 4 participants with Dato’ Amirul Feisal Wan Zahir and Datuk Hisham Hamdan.
The KLDP seeks to nurture effective, influential and visible mid-level leaders who embody Khazanah’s values, demonstrate self-awareness, effectively lead teams, possess strong business acumen and contribute strategically to organisational growth.
Read moreThe SDB promotes the continuous growth of our workforce by providing financial support to employees, aiming to enhance their knowledge, skills, and competencies beyond our formal training programmes.
SDB specifically facilitates part-time study for undergraduate or postgraduate courses and professional certification programmes such as Chartered Financial Analyst (CFA), Chartered Institute of Management Accountants (CIMA), and Association of Chartered Certified Accountants (ACCA), with an emphasis on job-related fields. To date, 178 employees have benefited from this initiative.
Read moreSimultaneously, we are actively executing value-creation plans for Malaysian investments, ensuring the growth of a diversified portfolio through a multi-pronged approach that includes portfolio rebalancing to navigate diverse market conditions.
We are also dedicated to supporting new economic enablers and creating long-term societal impact, particularly through implementing our Dana Impak projects.
Amidst these efforts, sustainability remains at the forefront of our agenda. We are firmly committed to creating a sustainable future by adopting sustainable practices across our operations.
Our mandate extends beyond mere economic returns. We are deeply committed to delivering societal value by Building Capacity and Vibrant Communities, collaborating closely with our affiliate entities.
As we embark on this journey, which has lasted over 30 years, our commitment to Advancing Malaysia remains unwavering. We will continue collaborating with all stakeholders and segments of society to drive progress and prosperity for all.
Hello! We would love to hear your thoughts on The Khazanah Report 2023 (TKR2023). Your valuable feedback is greatly appreciated as we continuously work to improve how we communicate our journey as a sovereign wealth fund.
THIS IS OUR STORY
OUR LEADERS LEAD WITH A VISION THAT CREATES VALUE
FORTIFYING OUR FINANCIAL STRENGTH
BY OPTIMISING OUR PORTFOLIO TO SUSTAIN GROWTH
FOSTERING SUSTAINABILITY
EMPOWERING OUR PEOPLE AND COMMUNITIES
TO FORGE A LASTING FUTURE TOGETHER
