“This is really good timing for us to get together as a group, all of the funds, together with all the relevant regulators, to come up with a long term plan on how do we actually manage and balance between the needs of domestic [market] as well as global exposure,” EPF CEO Tunku Alizakri Alias said during a forum at Invest Malaysia 2020 on Tuesday.
“Our SAA [strategic asset allocation team] keeps on saying that we need to be overseas,” he said, adding that the fund has always played catch up in terms of overseas investment allocation.
He said regulators have been “accommodative” in their engagement with state funds.
Khazanah managing director Shahril Ridza Ridzuan said the sovereign wealth fund has been focusing on its global exposure, especially in areas such as technology.
“Khazanah’s job is to diversify sources of income for the country. We’re much more focused on non-domestic [investments],” he said.
KWAP, which manages 140.8 billion ringgit of assets, will need to match its ringgit liabilities and focus on domestic investments, even as it looks to invest in international assets, CEO Hamadah Syed Othman said at the same forum.
KWAP’s international exposure is less than 20 per cent of total assets.
Last week, Bloomberg reported that EPF, the country’s largest pension fund, is looking to invest more overseas as it seeks higher gains to beat the 4-5 per cent return it has been providing.
The pension fund, which manages 974.75 billion in assets, has been expanding its global portfolio to maintain high dividends as it faces limited opportunities in the country. About 30 per cent of its investments are overseas.
Earlier in his keynote address, Finance Minister Tengku Zafrul Aziz said Malaysia’s economic growth for 2020 is projected to be within the range of -3.8 per cent to 0.5 per cent, as more than 150 out of 195 countries in the world are expected to post negative growth in 2020.