Telekom Malaysia Bhd undertook the High Speed Broadband Phase 2 (HSBB2) and Sub-Urban Broadband (SUBB) projects.
KUALA LUMPUR: Malaysia accounted for about 55.1% of Khazanah Nasional Bhd’s realisable asset value (RAV) by geographic exposure in 2015.
The sovereign wealth fund said on Wednesday that overseas investments accounted for the remainder of RAV.
The RAV reflected Khazanah’s internationalisation strategy in 2015, which saw the setting up of a London office by its unit subsidiary Khazanah Europe Investment Ltd. The London office is Khazanah’s fifth regional office after Beijing, Mumbai, San Francisco and Istanbul.
There was also strong focus on deepening the innovation and technology component of Khazanah’s portfolio, via several investments in various geographies including India, the US, the UK, China and Malaysia.
The resilient portfolio performance enabled the sustained execution of Khazanah’s strategic mandate to further catalyse growth, create and distribute value.
This includes continuing to drive greater performance in investee companies and catalysing further domestic growth, balanced with the further expansion of its international footprint and that of investee companies.
Khazanah said 2015 saw Government-linked Investment Companies (GLICs) and Government-linked Companies (GLCs) “graduating” from the 10-year GLC Transformation Programme, after a decade of transformative progress focused on enhancing financial performance, institutionalising good governance, and delivering broader, impactful contributions to national socioeconomic development. GLCs have delivered significant financial results and are today more dynamic, performance driven and well-governed organisations.
Since May 2004, G20 market capitalisation grew almost three times, with GLCs delivering a TSR CAGR of 10.5% per annum.
Iskandar Malaysia
It also said there was also further progress in the development of Iskandar Malaysia, which overall has received cumulative committed investments totaling RM187bil and created over 600,000 jobs since 2006.
Pinewood Iskandar Malaysia Studios (PIMS) saw work on several international productions, including “Asia’s Got Talent” and “Lost in the Pacific”.
More than 2,100 jobs have been created through PIMS’ operations since 2014. In addition, the Afiniti Medini wellness development and the capital restructuring of Iskandar Investment Berhad were also successfully completed.
MAS Recovery Plan
Khazanah said there was also steady and continued progress in the rollout of the five-year 12-point Malaysia Airlines Bhd (MAS Recovery Plan, which after 16 months of implementation is on track and on schedule.
Key milestones in 2015 include the appointment of Christoph Mueller to helm Malaysia Airlines Bhd (MAB), the smooth transition from Malaysian Airline System Berhad (MAS) to MAB, and the passing of the Malaysian Aviation Commission Act by Parliament.
Economic fundamentals
Khazanah announced in 2015 investments and initiatives amounting to RM9.27bil. These were in support of the Government’s proactive measures to strengthen the country’s economic fundamentals and address the impact of financial turbulence.
This includes accelerated and additional domestic investments totaling RM6.77bil in several key sectors to be delivered by Khazanah through relevant investee companies and development partners over the immediate and medium term.
The sectors are leisure and tourism, healthcare and health tourism, export-oriented creative industries, innovation and technology and Business Process Outsourcing (“BPO”).
Khazanah is also setting up a RM500mi New Economy Investments Venture Fund for local entrepreneurs, and together with Permodalan Nasional Berhad (PNB) and Kumpulan Wang Persaraan (Diperbadankan) (KWAP), is providing additional funding for ValueCAP Sdn Bhd to invest in the equity market, as announced by the Government last year.
Core portfolio companies
Core portfolio companies delivered on several major transactions and projects in 2015, including the completion of Malaysia Airports Holdings Berhad
’s (MAHB) 100% acquisition of Istanbul Sabiha Gokcen airport (MAHB is also undertaking the development of the KLIA Aeropolis announced in 2015).
IHH Healthcare Bhd acquired a 51% stake in Continental Hospitals and 73.4% stake in Global Hospitals, both in India.
Tenaga Nasional Bhd acquired a 70% stake in Jimah East Power and a 30% stake in Turkish power company Gama Enerji AS.
Axiata Group Bhd acquired a 75% stake in Digicel Myanmar Tower Company and an 80% stake in NCell, Nepal’s leading mobile operator.
UEM Group Bhd subsidiary PLUS Expressways International completed the Cikopo-Palimanan toll road in Indonesia.
Telekom Malaysia Bhd undertook the High Speed Broadband Phase 2 (HSBB2) and Sub-Urban Broadband (SUBB) projects.
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