Khazanah Profits Take Massive Impact, Drops From RM2.9 Billion To RM670 million In 2021

The country’s national sovereign wealth fund, Khazanah Nasional registered a massive drop in operating profits for 2021 after it was called in to play a vital role in financial assistance for key national assets, mainly airline and tourism.

While NAV grew from RM79b to RM86 billion, profits however took a dip from RM2.9 billion in 2020 to RM670m, this was attributed to continuing financial assistance being extended to Khazanah’s Airlines and Tourism companies still weathering headwinds from Covid-19 pandemic. Profit was also impacted by lower fair value gains and lower dividend income from investee companies on the back of subdued 2020 earnings.

For 2021, Khazanah deployed RM8.7b in new investments with a significant portion invested in Malaysia (41.7% or RM3.6b) and raised RM4.8b from monetisation of assets in its portfolio. It has continued to grow and safeguard its assets on behalf of the nation, with NAV recording a compounded annual growth rate (“CAGR”) of 5.8% since 2004.

Dato’ Amirul Feisal Wan Zahir Khazanah Managing Director said, “Despite a challenging backdrop of movement restrictions and reduced economic activity globally, Khazanah managed to create value, generate strong investment returns, and grow our NAV by RM7b. We also continued our rebalancing efforts towards having a more diversified portfolio and undertook measures to support our investee companies that were most impacted by Covid-19 namely in the aviation and tourism sectors.”

During the presentation, the MD also presented a long-term strategy through a new Dana Impak allocation aimed to catalyse new growth sectors.

Khazanah assures that it continues to maintain its financial discipline with operating expenses (OPEX) reduced to RM420m from RM490m in 2020. Debt increased marginally to RM48b from RM43b in the previous year, while its Realisable Asset Value (“RAV”) over debt ratio remained healthy at 2.8 times.

Khazanah declared a dividend of RM2.0b to the government for 2021.

Moving forward, Khazanah has set four strategic imperatives to deliver its purpose of delivering sustainable value for Malaysians. Dana Impak to invest in catalytic sectors, six themes have been identified, namely Digital Society & Technology hub, Quality Health & Education for all, Decent Work & Social Mobility, Food & Energy Security, Building Climate Resilience, and Competing in Global Markets and be an active participant in Malaysia’s capital markets.

Previous articleChina’s February PMI Sustains Expansion, Engine Continues To Hum
Next articleSoutheast Asia’s Major Virtual Career Fair Launched by SEEK Asia


Please enter your comment!
Please enter your name here