KUALA LUMPUR: Government-linked investment companies remain firm on their institutional investment goals to fuel the economy amidst global market volatility.
Retirement Fund (Incorporated) (KWAP) chief investment officer Hazman Hilmi Sallahuddin said the body remains committed to its long-term mission of strengthening both the public and private markets in Malaysia.
Acknowledging its “better position” in the midst of global economic condition following a trimming in position of several US stocks, Hazman said adaptability is key and investors should not panic or overreact.
“The long-term mission will still be intact, including the 70% public and 30% private market exposure, balancing between local and foreign and emphasising domestic deployment,” he said during a panel session at the Asean Investment Conference yesterday.
Khazanah Nasional chief investment officer Datuk Hisham Hamdan shared similar views, saying in the moment of crisis, countries should remain calm and learn how to be adaptable.
While recognising the current climate as part of a recurring cycle of crises, he stressed the importance of long-term strategies, including staying invested, enabling local ecosystems and focusing on impact over purely financial returns in areas like private equity.
“We have been there before and we survived. There’s a lot of things that we have to think about, but I am sure we will figure this out,” he said, applauding the government’s measures to assess the situation and figure out how to adapt collectively with other countries impacted.
Permodalan Nasional Bhd (PNB) deputy president and group chief executive officer Datuk Rick Ramli said PNB is reassessing its investment strategy, particularly in global fixed income and US equities.
He said the firm will be eyeing opportunities in healthcare and the electrical & electronics (E&E) sector.
He also called on the need for government support to boost domestic pharmaceutical production to ensure supply chain security and reduce import dependency.
“I think this kind of environment where supply chains get rejigged is a good time to look at that, be selective and focused on who we want and how we want to strengthen our ecosystem,” he added.
Affin Bank group chief economist Alan Tan said renewed focus on intra-Asean trade and resilient domestic demand could help buffer the region, including Malaysia, from the impact of global economic uncertainties.
“When we listened to Prime Minister Datuk Seri Anwar Ibrahim and ministers yesterday, the emphasis on intra-Asean cooperation was clear.
“There are real opportunities across sectors and Malaysia is positioned to take advantage of them,” he said in an interview.
Tan said similarly, the broader Asean countries are aligned with its approach towards the ongoing global trade tensions, especially concerning the new tariffs imposed by the United States.
“I think Asean, instead of retaliating, will be negotiating with the US and therefore, hopefully, get some positive outcome from the negotiation,” he said.
Tan cautioned that uncertainties surrounding these trade policies rather than the tariffs themselves, poses the bigger threat to global economic stability.
“Having said that, the situation remains uncertain. The expectation is that tariff does not really cause recession, but the uncertainty surrounding it causes recession in the US as well as possibly the global scenarios,” he warned.
