Khazanah Nasional, Malaysia's sovereign wealth fund, announced a 13.5% decline in profit from operations for the year 2024. The fund reported profits amounting to 5.1 billion ringgit, equivalent to approximately $1.15 billion, down from 5.9 billion ringgit in 2023. This report, released on Wednesday, highlights the challenges faced by the fund over the past year.
The announcement was made during a press event held in Kuala Lumpur on February 5, where Managing Director Amirul Feisal Wan Zahir addressed reporters. The decrease in profits is primarily attributed to underperformance in the private market sector. Factors such as higher interest rates and a challenging financing and exit environment have impacted the fund's operations.
"Relatively weaker performance was observed in the private market due to the lagging effects of higher interest rates, challenging financing and [the] exit environment," – Khazanah Nasional
Khazanah Nasional's financial results underscore the broader economic conditions affecting investment returns. The fund, which holds significant investments across multiple sectors, experienced headwinds due to global economic uncertainties and local market dynamics.
Amirul Feisal Wan Zahir provided insights into the fund's strategic approach moving forward. He emphasized the importance of adapting to changing market conditions and exploring potential opportunities to diversify Khazanah's investment portfolio. The fund is considering new avenues to enhance its resilience and sustain long-term profitability.
The press conference, captured in a photograph by Norman Goh, showcased Amirul's commitment to transparency and communication with stakeholders. As markets continue to fluctuate, Khazanah aims to mitigate risks and capitalize on emerging trends within the investment landscape.
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