Malaysia’s sovereign wealth fund Khazanah Nasional said Wednesday that it achieved a profit from operations of MYR 5.1 billion ($1.15 billion) in 2024, driven by disciplined monetization strategies, steady dividend income and fair value gains from global public equities.

The firm said in a statement that its balance sheet remains healthy with realizable asset value (RAV) over debt ratio at 3.2 times.

Meanwhile, the fund’s net asset value (NAV) in 2024 increased to MYR 103.6 billion ($23.42 billion) compared to MYR 84.8 billion ($19.17 billion) in 2023, marking a notable increase of MYR 18.8 billion ($4.25 billion).

From an overall Khazanah portfolio perspective, overall NAV growth increased from MYR 33 billion ($7.46 billion) in 2004 to MYR 104 billion ($23.51 billion) in 2024, achieving a compounded annual growth rate (CAGR) of 5.9 percent.

This growth aligns with Khazanah’s mandate to generate sustainable returns for the nation while enhancing Malaysia’s long-term wealth.

While these results reflect strong overall performance, a relatively weaker performance was observed in the private market due to the lagged effects of higher interest rates,
challenging financing and exit environment.

Khazanah has declared a dividend of MYR 1 billion ($230 million) for 2024 to the government of Malaysia, contributing to a cumulative total of MYR 19.1 billion ($4.32 billion) in dividends paid since 2004.

“We achieved a significant growth in our portfolio in 2024, driven by the strong performance of our Malaysian investments, particularly our holdings in the major constituents outperforming the KLCI, on the back of strong domestic market performance, continued growth of public
equities in developed markets and the recovery in emerging markets,

“Our positive performance is also driven by the Ekonomi MADANI framework, championed by the Prime Minister of Malaysia, showcasing how strategic investments and sustainable practices can drive inclusive economic growth,” said Amirul Feisal Wan Zahir, Khazanah Managing Director.

According to him, Malaysia’s economy also demonstrated strong resilience in 2024, with gross domestic product (GDP) growth expected to accelerate to between 4.8 percent to 5.3 percent.

“The Ringgit strengthened by 2.7 percent against the US dollar, and the FBM KLCI achieved an impressive 12.58 percent gain,

“This robust economic environment, along with Khazanah’s disciplined investment approach, contributed to our strong performance for the year, with NAV time-weighted rate of return (TWRR) reaching 24.6 percent, a significant increase from 5.7 percent in 2023,” he noted.

He said the fund aims to maintain the strong momentum from 2024 and to ensure the successful execution of its value creation efforts through its long-term strategy of Advancing Malaysia, anchored on ‘A Nation That Creates’ approach to progress the country and build a better Malaysia, in line with the Ekonomi MADANI values of Innovation (Daya Cipta).

This includes collaboration with other government linked investment companies (GLICs) and leveraging on catalytic partnerships and innovations that will elevate the country’s competitiveness and productivity, he added.

Moving forward, Khazanah will continue to execute its value creation efforts and portfolio rebalancing strategy to strengthen the balance sheet and build a resilient financial position.

It said the fund will remain steadfast in navigating the complex interplay of medium- to long-term global megatrends and immediate macroeconomic dynamics.

With an aging global workforce, ever-evolving technological advances particularly in artificial intelligence, ongoing geopolitical tensions, rising protectionism and the mounting imperative of combating climate change, Khazanah said its focus is on harnessing these transformative forces to build a sustainable and resilient future.

“We are confident that Malaysia will continue to maintain resilient, bolstered by political stability and clear policy direction,

“The significant influx of investments from both foreign and domestic sources reflects the confidence in our nation’s potential for sustained growth. Indeed, we look forward to working with all parties – government, firms, non-governmental organizations (NGOs), investors and the rakyat (people)– as we continue in our mission of Advancing Malaysia,” Amirul Feisal added.

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