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Khazanah’s ‘big and heavy’ trove

August 6, 2018 2:05 AM
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ESTABLISHED in 1993, Khazanah began its operation a year later after assuming a custodial role in managing the government's commercial assets as well as investing in strategic and high-technology sectors.

Over the years, the fund has been investing in the key areas such as aviation, automotive, healthcare and banking.

The year 2004 marked its strategic revamp with a new mandate from the government to be an active shareholder and to drive the transformation of government-linked companies (GLCs). It also commenced its first wave of overseas investments into Indonesia, China, India and Saudi Arabia.

Its net worth adjusted has trebled from RM33.3 billion on May 14, 2004 to RM115.6 billion on Dec 31, 2017.

Among Khazanah's core holdings, Silterra Malaysia Sdn Bhd is certainly one of the main drags. The semiconductor wafer firm reported a huge net loss of RM2.63 billion for the financial year ended Dec 31, 2016 against a net profit of RM639.84 million, according to filings with the Companies Commission of Malaysia.

Out of the last 10 financial years, Silterra has incurred losses in six years. Khazanah has been looking to sell its stake in Silterra to foreign investors, but nothing has been firmed up.

Of course, Malaysia Airlines Bhd (MAB) is another thorn in Khazanah's side as the national carrier is grappling with intense market competition. Some RM6 billion has been pumped in for its restructuring plan after it was privatised in 2014.

For the financial year ended Dec 31, 2016, MAB incurred a narrowed net loss of RM438.87 million against RM1.13 billion a year ago. Its revenue more than doubled to RM8.57 billion from RM3.14 billion.

Khazanah's realisable asset value grew 8.2% to RM157.2 billion in 2017, while profit before tax jumped 84.7% to RM2.89 billion.


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