Khazanah reports RM5.1 billion operating profit for 2024
Astro Awani
February 5, 2025 17:42 MYT
February 5, 2025 17:42 MYT
Khazanah Managing Director, Datuk Amirul Feisal Wan Zahir (center), speaks during a media briefing on the Khazanah 2025 Annual Review here on Wednesday. - Screengrab/Astro AWANI
KUALA LUMPUR: Khazanah Nasional Berhad, Malaysia's sovereign wealth fund, reported positive 2024 financial results, driven by solid domestic market performance and strategic investments supporting the government’s Ekonomi MADANI agenda.
AI Brief
- Khazanah's net asset value rose to RM103.6 bil in 2024, with a 24.6% return driven by strong domestic investments and market recovery.
- Key 2024 initiatives included RM1 bil for Malaysia's semiconductor industry, RM1.5 bil for energy transition projects, and the RM18.4 bil privatisation of MAHB
- Khazanah declared a RM1 bil dividend to the govt, invested RM600 million in cultural heritage, and allocated RM200 mil to youth training programs.
The fund’s net asset value (NAV) increased to RM103.6 billion, up from RM84.8 billion in 2023, a rise of RM18.8 billion. The time-weighted rate of return (TWRR) climbed to 24.6% from 5.7% last year. Profit from operations reached RM5.1 billion, supported by disciplined monetisation, steady dividend income, and gains in global public equities.
“Our portfolio growth was significantly driven by the outperformance of major Malaysian holdings and the recovery in emerging markets,” said Managing Director Datuk Amirul Feisal Wan Zahir. He cited gains on account of Malaysia's resilient economy with projected GDP growth of between 4.8% and 5.3% for the year, the Ringgit having strengthened by 2.7% against the US dollar, and a 12.58% increase in FBM KLCI.
Khazanah declared a RM1 billion dividend to the Malaysian government, bringing its total payout since 2004 to RM19.1 billion. The balance sheet remains robust, with a ratio of RAV to debt at 3.2 times.
In 2024, Khazanah established Jelawang Capital, the National Fund-of-Funds, to enhance the venture capital ecosystem, and allocated RM1 billion under Dana Impak to support Malaysia’s semiconductor industry. The fund also invested RM1.5 billion in decarbonising industrial parks and solar projects as part of the country's energy transition efforts.
Khazanah also moved to privatise Malaysia Airports Holdings Berhad (MAHB), with Gateway Development Alliance valuing MAHB at RM18.4 billion. The fund committed RM600 million to cultural heritage projects, including restoring Bangunan Sultan Abdul Samad and Carcosa Seri Negara.
Community development remained a focus, with RM200 million allocated to the K-Youth Programme to train over 8,000 youths. Through its philanthropic arm, Yayasan Hasanah, Khazanah deployed RM86 million into 207 impact-driven projects.
Looking ahead, Khazanah aims to sustain growth by leveraging technological advancements, addressing climate change, and navigating geopolitical challenges.
"We remain confident in Malaysia's resilience, supported by political stability and strong policy direction," said Amirul Feisal.