Khazanah Must Bide Its Time For Asset Sales




QUESTION TIME | Soon after the Pakatan Harapan government took over in May 2018, 16 months ago, an unlikely target that resurrected Prime Minister Dr Mahathir Mohamad trained his guns on was Khazanah Nasional Bhd, the national sovereign wealth fund
That was rather puzzling because Khazanah was one of the better performing funds owned by the government. It had done very well in terms of increasing the wealth of its commercial holdings for the country under managing director Azman Mokhtar and supported by a core of professionals and a decent board
In fact, so well had it done that Khazanah became the secretariat for the transformation of government-linked investment companies (GLICs) and government-linked companies (GLCs) which were not under its stable, such as Permodalan Nasional Bhd and its extensive list of investments worth over RM280 billion
Khazanah’s own holdings had risen to give a net realisable value of RM136 billion as at the end of 2018, against RM68 billion at the end of 2008

Mahathir, however, was for some reason unhappy with all that
"But along the way, Khazanah decided it should take all the shares for itself and if they are good shares, well why not acquire the shares at the time of listing when the price of shares was very low and so they forget entirely about holding the shares for the bumiputera
“They decided that they should be holding the shares forever as a part of the government companies owned by the government," Mahathir said
He repeated that unfounded allegation in a recent BFM interview, which was widely reported
But an examination of its corporate profile at that time showed no such objective for Khazanah
Here is its mandate: “Khazanah strives to create sustainable value and cultivate a high-performance culture that helps contribute to Malaysia's economic competitiveness. Utilising a proactive investment approach, we aim to build true value through management of our core investments, leveraging on our global footprint for new growth, as well as undertaking catalytic investments that strategically boost the country's economy. We also actively develop human, social and knowledge capital for the country.”However, it did not totally abandon its bumiputera agenda
Khazanah had a high proportion of bumiputera employees even though Azman (above) introduced competent non-bumiputeras into the mix, injecting a much more diverse pool of managerial staff than the fund had ever known before
It encouraged bumiputera entrepreneurship and sold some of its companies to bumiputeras
But stung by Mahathir’s unfair criticisms and his refusal to give an appointment to Azman, the whole Khazanah board, in an unprecedented move, resigned, allowing Mahathir a free hand to shape the new board and push policies
This is probably what he, and his trusted adviser and long-time associate Daim Zainuddin, wanted anyway
Against advice from within Harapan that he should not take a post in Khazanah in line with Harapan’s promise to de-politicise the Khazanah board, Mahathir virtually appointed himself board chairman, a position traditionally held by the prime minister of the day
The saving graceThe saving grace, however, is that the new Khazanah board is composed of pretty capable and reputable individuals
The new managing director is the highly regarded and respected former Employees Provident Fund CEO Shahril Ridza Ridzuan
But even then, the new mandate introduced later did not include any specific bumiputera agenda
According to its updated website, “Khazanah’s mandate is to grow Malaysia’s long-term wealth. Grow in this context is to sustainably increase the value of investments while safeguarding financial capital injected into the fund. Long-term refers to a period spanning generations and focuses on ensuring future generations’ ability to meet their needs. Wealth refers to the value of Khazanah’s financial assets and economic development outcomes for the nation
“We achieve our mandate by pursuing two investment objectives – commercial and strategic. The commercial objective focuses on achieving optimal risk-adjusted returns, to grow financial assets and diversify revenue sources for the nation. The strategic objective is to undertake strategic investments with long-term economic benefits for Malaysia or Malaysians, including holding strategic national stakes.”Essentially, what the new mandate has done is to explicitly enable the sale of assets from the commercial assets it holds to realise value
Presumably, this will enable the sales to fill up government coffers as and when necessary
Mahathir (above) has offered up “the debt of over one trillion ringgit” argument as one of the reasons for selling Khazanah assets but at the time Harapan took power in May 2018, the reported debt was only RM687 billion, only increasing to over RM1 trillion after the inclusion of contingencies and other obligations not normally included in international definitions of debt
Thus, it has been inferred that Mahathir’s intention to change the direction of Khazanah was driven by a desire to perhaps sell assets held by Khazanah to aspiring bumiputera businessman close to him and Daim
But that’s not going to be easy - very few of controlling stakes or major stakes for Khazanah’s major investments are cheap
A 16 percent stake in IHH costs RM8.42 billion and a 3.54 percent stake in CIMB costs RM1.75 billion
Such large stake sales require careful consideration so that Khazanah can maximise prices by considering issues of timing and be above board
Negotiated tenders won’t do even if they are sales to bumiputeras because that might result in prices which are too low
Khazanah must not be pressured to sell their assets but must bide their time to maximise value
P GUNASEGARAM believes in the old adage, haste makes waste. He is the editor-in-chief of business publication Focus Malaysia. - Mkini

Artikel ini hanyalah simpanan cache dari url asal penulis yang berkebarangkalian sudah terlalu lama atau sudah dibuang :

http://malaysiansmustknowthetruth.blogspot.com/2019/09/khazanah-must-bide-its-time-for-asset.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MalaysiansMustKnowTheTruth+%28Malaysians+Mu

Kempen Promosi dan Iklan
Kami memerlukan jasa baik anda untuk menyokong kempen pengiklanan dalam website kami. Serba sedikit anda telah membantu kami untuk mengekalkan servis percuma aggregating ini kepada semua.

Anda juga boleh memberikan sumbangan anda kepada kami dengan menghubungi kami di sini
Ex Selangor Mb Worried Khazanah Not Getting Good Deals In Asset Sales

Ex Selangor Mb Worried Khazanah Not Getting Good Deals In Asset Sales

papar berkaitan - pada 22/9/2019 - jumlah : 182 hits
Former Selangor Menteri Besar Abdul Khalid Ibrahim has expressed concern that Khazanah Nasional Berhad may not be getting a good deal in its asset sales Khalid said this was because Khazanah s intent to sell assets to pare down the national...
Dr M Launches Shared Prosperity Vision Says It S Time For Next Step

Dr M Launches Shared Prosperity Vision Says It S Time For Next Step

papar berkaitan - pada 5/10/2019 - jumlah : 346 hits
Prime Minister Dr Mahathir Mohamad today launched Shared Prosperity Vision 2030 outlining the government s plans for the future Mahathir said SPV 2030 will be fullly implemented from 2021 In 2021 we will hit the ground running and pursue th...
Khazanah Sells Prince Court Medical Centre For Rm1 02b

Khazanah Sells Prince Court Medical Centre For Rm1 02b

papar berkaitan - pada 18/9/2019 - jumlah : 253 hits
Khazanah Nasional Berhad today announced that it is selling Prince Court Medical Centre in Kuala Lumpur for RM1 02 billion in cash The sale comes slightly more than a year after Khazanah acquired the hospital from Petronas According to a Bu...
The Show Must Go On Kwjf Will Have Its Venue Date Back To Normal Next Year

The Show Must Go On Kwjf Will Have Its Venue Date Back To Normal Next Year

papar berkaitan - pada 28/9/2019 - jumlah : 210 hits
KUCHING The next edition of the Kuching Waterfront Jazz Festival will be held at Kuching Waterfront next year says Minister of Tourism Arts Culture Youth and Sports Datuk Abdul Karim Rahman Hamzah He asserted that during the first editions ...
Report Khazanah Pushing For Mab Airasia X Merger

Report Khazanah Pushing For Mab Airasia X Merger

papar berkaitan - pada 26/9/2019 - jumlah : 228 hits
Khazanah Nasional is reportedly pushing for a merger between Malaysia Airlines Berhad and AirAsia X both of whom are loss making companies However The Malaysian Reserve citing sources said several of Khazanah s stakeholders are against the ...
Counting Hours For Mommies Me Time To Ho Chin Min City

Counting Hours For Mommies Me Time To Ho Chin Min City

papar berkaitan - pada 5/10/2019 - jumlah : 383 hits
Counting Hours For Mommies Me Time To Ho Chin Min City Ya Allah tak sabarnya dan teruja giler nak travel kali ni Selalu travel atau bercuti dengan suami dan family Kali ni travel dengan kawan kawan sekerja dan bergelar ibu pula Perasaan tu ...
Govt Loses Twice From Asset Sales Says Ex Mb

Govt Loses Twice From Asset Sales Says Ex Mb

papar berkaitan - pada 23/9/2019 - jumlah : 220 hits
Former Selangor menteri besar Khalid Ibrahim said today that sales of national assets causes double the harm to the government finances We lose twice he said at a forum We don t have the assets and we are still in debt And now we are forced...
Salesman Takes Used Car Buyer For A Ride

Salesman Takes Used Car Buyer For A Ride

papar berkaitan - pada 25/9/2019 - jumlah : 240 hits
Abdul Hadi bought a used car but ended up being conned by the salesman who did not change the vehicle s ownership registration JOHOR BARU Self employed Abdul Hadi Murtadza will never buy a used vehicle again after learning a bitter lesson w...
Donald Trump Says He Deserves A Nobel Prize For A Lot Of Things

Donald Trump Says He Deserves A Nobel Prize For A Lot Of Things

papar berkaitan - pada 25/9/2019 - jumlah : 213 hits
US President Donald Trump claimed on Monday that he deserves a Nobel Prize for a lot of things but complained that the committee that hands out the awards does so unfairly The comment came during a bilateral meeting in New York with Pakista...
Fungi Wechat Yang Ramai Tak Tahu

Ziana Zain Duta Rasmi Csa Academy

Asan Lembu The Movie

Di Masjid Muhammadiyah Nurul Yakin Paus Quran Dan Sains By Dr Hm Raki

Hospital Kuala Pilah

Ramadan Bazaars 2024 Exploring The Culinary Delights Of Selangor S Ramadan Bazaars

Saya Dan Rafizi Tiada Isu Peribadi Kata Puad

Hallway Wall Art Mockup For A Sophisticated Look



Koleksi 15 Lagu Hari Raya Terbaru Yang Meriahkan Aidilfitri 2024 Bakal Evergreen Bak Lagu Lama

6 Pantang Larang Penting Kalau Nak Selamat di Sekolah Asrama

Info Dan Sinopsis Filem 19 Puasa Playboys Of Plastik Hitam Astro First

Casimir Zeglen Paderi Yang Mencipta Jaket Kalis Peluru

Biodata Mohammad Rifdean Masdor Atlet Muay Thai Malaysia Yang Gegarkan One Championship Seangkatan Johan Ghazali Jojo


Tawarkan Lebih Pilihan Pembiayaan Kepada Mahasiswa

Hari Ini 2 Al Hamdulillah Padi Dalam Pasu

Menu Sahur

Terkejut Jumpa Segenggam Paku Dalam Lemang

Pemain Newcastle Tonali Dituduh Melanggar Peraturan Pertaruhan Bahasa Inggeris

Akmal Sokong Mb Johor Tularkan Isu Kesesakan Tambak Johor