Khazanah aims to quadruple overseas investment to spread risk

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NSTbusiness: 'Khazanah should have four to five years ago started to actually restructure the portfolio, exit some of the assets and reinvest back into other things,' said Shahril.

Khazanah's overseas investment - including a stake in China's Alibaba Group - accounts for only around 15% of its total holdings compared with 44% five years ago, with the decline due in part to restrictions placed by the central bank on foreign outflows in order to protect the ringgit.

Managing Director Datuk Shahril Ridza Ridzuan told reporters earlier this month that Khazanah was targeting a pretax profit this year of at least 5 billion ringgit - the highest in eight years. "So that essentially if something happens to your local economy, you still have outside income coming in," Shahril said in the report made public on Wednesday.The commercial portfolio includes stakes in CIMB Group Holdings, Axiata Group, IHH Healthcare, Alibaba and some lesser-known listed and unlisted companies.

Decisions on strategic assets - such as state utility Tenaga Nasional, Malaysia Airlines, Malaysia Airports and Telekom Malaysia - were for the government to take.

 

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