Malaysia’s Khazanah eyes $1.2b pre-tax profit after first loss in decade

The Khazanah Nasional Berhad logo is displayed on a laptop. Photo: Ipsita Ray/DEALSTREETASIA

Malaysia’s sovereign wealth fund Khazanah Nasional Bhd said on Monday it is targeting a pretax profit this year of at least 5 billion ringgit ($1.2 billion), which would be its highest in eight years, after posting its first loss in a decade in 2018.

“For this year, we hope to achieve profitability of at least 5 billion ringgit,” Shahril Ridza Ridzuan, Khazanah’s managing director, said in comments to reporters at the fund’s annual conference.

Shahril did not elaborate on the reasons for the stronger outlook.

Last year Khazanah swung to a pretax loss of 6.3 billion ringgit from a profit of 2.9 billion ringgit in 2017, hit by higher impairments and lower dividend income.

Shahril also said the fund was on track to achieve this year’s target of cutting debt to 47 billion to 48 billion ringgit, from 50 billion ringgit. He added that over 3 to 5 years, the fund is aiming to reduce debt to 40 billion ringgit.

Khazanah is the majority shareholder of several government-linked companies including state utility Tenaga Nasional Bhd, banking group CIMB Group Holdings Bhd, Malaysia Airports Holdings Bhd and Telekom Malaysia Bhd.

Khazanah said in March the realizable asset value of its portfolio fell to 136 billion ringgit in 2018 from 157 billion ringgit a year prior.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.