MANILA (Bernama): Khazanah Nasional Bhd owes lawmakers and the people an explanation of its first pre-tax loss in 13 years, recorded in 2018, says Tun Dr Mahathir Mohamad.
The Prime Minister said the sovereign wealth fund should also have a comprehensive action plan to revive its position so as not to continue suffering losses.
He said one of the main causes of losses suffered by the company was due to the unsatisfactory performance of Malaysia Airlines Bhd (MAB).
“This is not an easy thing to do. However, I am confident that they have plans to address the problems faced by their low-performing companies.
“Perhaps they will divest their stakes in some (government-linked companies),” he told Malaysian journalists on the last day of his three-day visit to the Philippines, here Friday (March 8).
Khazanah posted a pre-tax loss of RM6.3bil for 2018, compared with a pre-tax profit of RM2.9bil in the preceding year, after recording impairments totalling RM7.3bil – more than triple the RM2.3bil seen in 2017.
Foreign Minister Datuk Saifuddin Abdullah and International Trade and Industry Minister Datuk Darell Leiking were present.
Dr Mahathir said even though there has been no discussion on his proposal to Khazanah to divest non-performing companies, it was one of the approaches it could do to return to profitability.
“The companies that are not part of Khazanah's core operations, sometimes they are doing something that other people should do.
“Perhaps they (Khazanah) need to study such thing. Divesting businesses is one of the ways to reduce the losses suffered by Khazanah,” he said. – Bernama
Did you find this article insightful?