KUALA LUMPUR: It is a valid request for the government to ask for a higher dividend for 2020 due to the extraordinary financial pressure faced last year, said Khazanah Nasional Bhd managing director Datuk Shahril Ridza Ridzuan.
According to the Khazanah Annual Review 2021 released today, the sovereign wealth fund declared a dividend of RM2.0 billion for 2020 to the government, double the RM1.0 billion dividend declared for 2019.
Shahril Ridza said the government’s traditional sources to fund the budget usually came from taxes, investment gains and dividends.
“On the (dividend) request from the government, whether you consider it as a higher dividend for 2020, to help support the government during this time, I think it is a valid request and due to the higher budget approved for 2020,” he said.
He was responding to a question during a virtual press briefing in conjunction with the release of the Khazanah Annual Review 2021 here today.
However, Shahril Ridza declined to speculate whether Khazanah would continue paying higher dividend for the government in the coming years as “it all depends on the needs of the situation”.
To help spur the economic growth, he revealed that the fund was currently in discussion with the government, including the finance ministry, to look at investing in new growth sectors moving forward.
According to Shahril Ridza, the government is very keen to see how long-term investors like Khazanah could do their part to spur their investments, build up a new industry, or even partner with the private sector in these new growth sectors to boost economic growth.
“We are thinking about capital recycling, such as how do we recycle capital from older assets into newer assets in order to create companies with potential growth, as well as create more new jobs,” he said, adding that further details would be announced in the future.
Moving forward, Shahril Ridza said Khazanah would continue to diversify its global portfolio as it built sustainable value for Malaysia as part of its long-term mandate.
He also said its current capital position was at an “extremely comfortable” level.
Chief investment officer Tengku Datuk Seri Azmil Zahruddin Raja Abdul Aziz said at present, the majority of Khazanah’s investments were still made in Malaysia, and the sovereign wealth fund was gradually shifting its investment portfolio overseas.
“In 2020, we have seen higher profit from overseas than Malaysia,” he added.
According to the presentation slides, over the last two years Khazanah has begun the rebalancing of its commercial fund portfolio to diversify the portfolio and improve risk-adjusted returns.
Its asset allocation in the global public market increased to 17 per cent as at Dec 31, 2020, from 12 per cent in Dec 31, 2018, while allocation in Malaysia’s public market reduced to 50 per cent as at end-2020 from 58 per cent as at end-2018.
-- BERNAMA
Bernama
Thu Mar 04 2021
-On the (dividend) request from the government, whether you consider it as a higher dividend for 2020, to help support the government during this time, I think it is a valid request and due to the higher budget approved for 2020,- Shahril Ridza said.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.
Minimum wage to increase to RM1,700 effective Feb 1, 2025
The Progressive Wage Policy would be fully enforced next year with an allocation of RM200 million, benefiting 50,000 workers.
Bursa Malaysia ends higher on Budget 2025 optimism
The benchmark index, which opened 1.85 points higher at 1,643.29, moved between 1,641.71 and 1,649.31 throughout the trading session.
Five important aspects relating to people’s lives in Budget 2025 - PM
The focus is on driving the MADANI Economy, speeding reforms, cutting red tape, raising wages, and tackling the cost of living.
Economic outlook: Govt plans to leverage, expand existing city transit system
The expansion aims to provide a more efficient and reliable public transportation network, reduce congestion, and improve accessibility.
Economic outlook: Budget 2025 to lay foundation for a digital-driven economy
The report said Budget 2025 will entail efforts to position Kuala Lumpur as a top 20 global startup hub by 2030 through the KL20 initiative.
Economic outlook: Corruption and lack of accountability hinder economic progress
Special Cabinet Committee on National governance is established to curb corruption, law reforms to modernise outdate regulations, MoF said.
National Wages Consultative Council will be strengthened
The govt will also incentivise hiring women returning from career breaks, offer job matching and improve care services facilities.
Economic outlook: Ensuring 11 years of compulsory education for all children
Budget 2025 will continue prioritising upskilling and retraining initiatives to equip workers with the latest skill sets necessary.
Consolidated public sector projected to record lower surplus of RM41.7 bil 2024
The MoF said the consolidated general government revenue is estimated to increase slightly to RM384.7 billion in 2024.
PM announces substantial Budget 2025 hastening Malaysia to become Asian economic powerhouse
Datuk Seri Anwar Ibrahim said it would create jobs and also tackle financial leakages to enhance public spending efficiency.