Despite the gloomy economic conditions, Khazanah Nasional will be investing RM58 billion for the period 2009 to 2011.

The investment holding arm of the Malaysian government is also confident that “most of its companies would be able to withstand the upcoming crisis”.

At its annual review recently, Khazanah emphasised on its crisis prepardness measures and initiatives to catalyse economic growth.

azman mokhtarIts managing director, Azman Mokhtar, said that Khazanah has also already run its “Defence First, then Offence” strategic preparations to face the uncertainties ahead.

On Khazanah’s preparedness, Azman revealed that “there would be opportunities as the GLCs had done their VSS several years ago under the bare market scenario. In 2009, most commodity user companies would tend to profit as commodity prices go down.”

During the presentation, he pointed that the overall investment portfolio has been on the decline, but Khazanah was doing better than the benchmark as its financial position remained strong.

The company had also indulged in more divesting activities in the last six months or so.

“The financial restructuring of MAS Airlines is complete. Tradewinds have been sold. Currently, we are looking at strategic options for Silterra Holdings and Proton,” Azman said.

“Khazanah has also secured RM43 billion as capital investment for Iskandar,” while the “realisable asset value liability cover has decreased from RM2.9 billion in 2004 to RM1.9 billion in 2008”’

Commitment to integration continues

Khazanah is also anticipating earnings of G20 to drop significantly. G20 is a grouping of top 20 companies in Malaysia, out of which nine are Khazanah companies.

On deepening its regional footprint, Khazanah’s commitment to integration continues.

Questioned by Malaysiakini on political transitions, Azman had this to say: “They would not be a major direct impact on Khazanah as we have no direct interests there.

“In Malaysia, we expect Najib to continue present policies. In indonesia, CIMB has some interests over there but we have been happy with the developments in the past. It is part of capitalising economic growth.”

On the issue of the Labu LCCT and competition between MAS and Air Asia, he said: “The national airport masterplan must be consulted. The clustering must be together and it must have software connectivity. MAS and Air Asia must co-exist.”

Khazanah Nasional has also been developing human capital via its “Green programme” where unemployed graduates with CGPA 2.5 to 3.0 have been absorbed into Khazanah and other GLCs.