Khazanah Continues To Diversify, Strengthen Global Portfolio, Driving Value Creation For Malaysia - MD

KUALA LUMPUR, Feb 5 (Bernama) -- Khazanah Nasional Bhd will continue to diversify and strengthen its global portfolio in 2025 amid a not-so-easy and volatile global environment, managing director Datuk Amirul Feisal Wan Zahir said.

He noted that the group’s strategy going forward is to drive value creation for Malaysia, and the group has already set up its Malaysian strategy for the year.

“We will continue to diversify and strengthen the global portfolio because diversification works, so we will continue to do that.

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“However, we actually have set up programmes for more domestic investments, and I think you will see more concentrated effort in investing domestically,” he said during a media briefing on Khazanah Annual Review 2025 today.

During the briefing on Khazanah's investment portfolio by asset class as of Dec 31, 2024, Amirul Feisal said the Malaysian public market comprised 57.5 per cent of its investment portfolio, with a return of 34.3 per cent, while the global public market stood at 17.4 per cent, with a return of 10.9 per cent last year.

Additionally, the private market constituted 16.5 per cent of its portfolio, with a return of -6.6 per cent, while real assets were at 8.6 per cent and a return of -3.5 per cent.

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Commenting further, Khazanah chief investment officer Datuk Hisham Hamdan highlighted that the sovereign wealth fund's portfolio will be heavily concentrated in Malaysia at around 60 per cent.

“We will constantly rebalance our investment, and the ratio is still to maintain slightly over 60 per cent in Malaysia.

“In the last few years, the developed market has done really well, and last year, Malaysia also did really well (and this) is something that we will constantly need to monitor and rebalance accordingly in order to get optimal return given whatever risk,” he added.

Meanwhile, regarding the 2025 outlook,  Amirul Feisal stressed that global megatrends are expected to continue shaping the medium-term global environment, with their impacts already evident.

He said the immediate thing to focus on is the United States policies, which will have a big impact on the global economy as President Donald Trump comes in with new policies favouring domestic business.

“It is quite inflationary, (and) we are likely to see higher rates for longer, which also means that we are going to see a higher, stronger dollar. It is not going to be easy, and because of that, you see a more volatile environment.

“He (Trump) is making a lot of policy changes with respect to tariffs in dealing with trade with other countries, and that too raises geopolitical tension as well as trade fragmentation, and this is the environment that we see going forward," he added.

-- BERNAMA