Khazanah’s divestments are commercial decisions

Khazanah’s divestments are commercial decisions

The Malaysian Reserve-News·2019-10-17 14:39

graphic by DYG NORAZHAR

THE divestment exercises by Khazanah Nasional Bhd are purely commercial decisions, according to Deputy Economic Affairs Minister Dr Mohd Radzi Md Jidin.

Mohd Radzi said it is normal for the sovereign wealth fund to release investments and then redeploying capital for new investments.

“The decision to sell or hold assets was based purely on commercial reasons,” Mohd Radzi told the Dewan Rakyat yesterday.

He was responding to a question by Datuk Seri Dr Wee Ka Siong (Barisan Nasional-Ayer Hitam) who asked, how would Khazanah receive consistent returns if the fund divests its strategic investments without replacing it.

Mohd Radzi said the sale of Khazanah’s 60% stake in property developer M+S Pte Ltd to its joint-venture partner, Singapore state investor Temasek Holdings Pte Ltd, was a decision made by the previous administration and was recently completed by the Pakatan Harapan (PH) government.

“For example, the sale of M+S was decided by the previous government, and the PH administration went on with it simply because it was a commercial decision made by Khazanah,” he added.

The deputy minister explained that the fund will consider whether it is better to hold the assets or sell and use the proceeds to make new investments.

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