Malaysia’s sovereign wealth fund Khazanah Nasional Berhad announced its financial results for the year ended 31 December 2023 today, recording strong performance with net profit more than tripling to RM5.9 billion compared to RM1.6 billion in 2022. It also managed to achieved a 5-year rolling of 2.9% Net Asset Value Time-Weighted Rate of Return for the Investments Portfolio.
Khazanah Managing Director Dato’ Amirul Feisal Wan Zahir said, “We delivered a stronger performance in 2023, more than three-fold in profit as compared to FY2022. Our commitment remains as we continue to leverage our value creation efforts and portfolio rebalancing approach to strengthen our balance sheet and build a resilient financial position. While 2024 is expected to be yet another challenging year globally with heightened political uncertainties, Advancing Malaysia will remain our overarching theme to steer our strategies and actions towards delivering national development and ensuring a sustainable future for Malaysia.”
On its financial performance, debt increased marginally to RM50.2b from RM49.1b in the previous year. Realisable Asset
Value (“RAV”) over debt ratio remained healthy at 2.7x. NAV grew from RM33b in 2004 to RM85b in 2023, resulting in a compounded annual growth rate of 5.1%, fulfilling Khazanah’s mandate to deliver sustainable returns to the nation and growing Malaysia’s long-term wealth. The Investment Portfolio achieved a 5- Year Rolling NAV TWRR of 2.9% and a 1-year NAV TWRR of 5.7% amidst the challenging market landscape within this period.
The returns improved in 2023, driven by the developed market portfolio and a partial recovery of our listed investee companies in Malaysia. In 2023, Khazanah deployed RM7.3b in new investments and raised RM7.2b from asset monetisation.
Khazanah’s Airline and Tourism assets showed improved financial and operational performance. Malaysia Aviation Group Berhad (“MAGB”) recorded positive NIAT for the first time in a full year, while Destination Resorts and Hotels (“DRH”) made a strong recovery post-pandemic. No additional capital injections were required during the year
Khazanah paid a dividend of RM1b for 2023 to the Government of Malaysia, with RM18.1b cumulative dividends paid since 2004.
