Khazanah Lays Out Vision for High Impact Investing Domestically

Posted on 08/12/2021

Malaysia’s sovereign wealth fund Khazanah Nasional Berhad disclosed that it seeks to raise its high-impact and commercially viable investments over the next five years. Khazanah will do this through a 6 billion MYR internal fund (Dana Impak) to help build Malaysia’s economic competitiveness and resilience. In a statement, the allocation will be funded through profits and capital returned from its commercial investments while it continues with its divestment and portfolio rebalancing strategy. Khazanah said the measure is in line with the government’s Perkukuh Pelaburan Rakyat initiative launched by Malaysian Prime Minister Tan Sri Muhyiddin Yassin.

Khazanah said it will pursue greater accountability in its development investing.

“We will do so by investing to achieve long-term risk adjusted returns and grow our financial assets. From this position of strength, we can undertake catalytic investments and other activities towards creating impactful economic and social benefits for Malaysia,” it said in a statement today.

“Moving forward, we will look to actively engage more with our investee companies and place emphasis on material ESG issues, to ensure that those issues are appropriately managed.”

“The development target outcomes will be linked to forward-looking national agendas and aspirations, and will include targets such as improvements to household income, creation of high-value employment and other socioeconomic target outcomes,” it said.

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