Khazanah Nasional
Malaysia's sovereign wealth fund and strategic investment institution.
Last updated November 4, 2026
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Overview
Khazanah Nasional Berhad is Malaysia's sovereign wealth fund and a government-owned strategic investment institution. Incorporated on 3 September 1993 under Malaysia's Companies Act and operational from 1994, it was created to manage and maximise the value of government-owned commercial assets and equities. Unlike a statutory government agency, Khazanah is a company with its own board and professional management structure, although the Malaysian government remains its owner and the prime minister serves as chairman. The institution is administered through Minister of Finance Incorporated, with one share held by the Federal Land Commissioner. Khazanah's mandate combines financial and developmental objectives. It seeks long-term, risk-adjusted returns while investing in areas that can strengthen Malaysia's economic competitiveness, support strategic industries, develop domestic capabilities and contribute to broader social outcomes. Its portfolio has extended across banking, telecommunications, infrastructure, healthcare, aviation, leisure and tourism, consumer businesses, sustainable development, technology, venture capital and other sectors. The fund generally does not receive regular capital injections from the government; instead, it generates returns, recycles capital and uses capital-market transactions to support its investment activities. The institution's role expanded substantially after a strategic mandate review in 2004. It became an active shareholder in government-linked companies and helped drive the transformation and governance of Malaysia's government-linked corporate sector. During the 1990s and 2000s, Khazanah participated in infrastructure development, financial-sector restructuring, telecommunications, aerospace, satellite broadcasting, banking and regional investments. Its later activities included the development of Putrajaya, the acquisition and restructuring of UEM Group, investments in healthcare platforms, the expansion of IHH Healthcare, the nationalisation and recapitalisation of Malaysia Airlines, and joint ventures with international investors such as Singapore's Temasek Holdings. Khazanah is also an issuer and participant in international capital markets. In 2004 it became a regular global-market issuer and supported Malaysia's development as a centre for Islamic finance through sukuk and other Sharia-compliant transactions. Its capital-market history includes exchangeable sukuk, a renminbi-denominated offshore sukuk and sustainable and responsible investment instruments. In April 2023 it received its first issuer credit ratings, A3 from Moody's Investors Service and A- from S&P Global Ratings, according to the reference material. Its investment framework is organised around four broad structures: a commercial investments portfolio, the Dana Impak portfolio for investments intended to create socioeconomic outcomes, developmental assets and special situations. The Dana Impak programme has focused on areas such as raising household incomes, strengthening the digital and technology economy, improving healthcare access, supporting food and energy resilience, and advancing environmental sustainability. In 2023 the fund reported profit of RM5.9 billion, compared with RM1.6 million in 2022, and announced a RM1 billion dividend to the Malaysian government; these figures are financial-year results reported in the reference material. Khazanah has developed a network of regional offices and international investment relationships. Its sustainability framework, introduced in June 2022, included a target for carbon-neutral operations by the end of 2023 and an ambition of net-zero emissions by 2050. It is a member of the International Forum of Sovereign Wealth Funds, a signatory to the United Nations-supported Principles for Responsible Investment, and participates in Malaysian and international initiatives on institutional investment, long-term capital and corporate integrity. In December 2024, the fund was reported to have approximately US$36 billion in assets under management. Its present identity is therefore that of both a financial investor and a national institution expected to catalyse economic, technological and social development in Malaysia.
History
Khazanah Nasional was incorporated on 3 September 1993 as a Malaysian public limited company and began operations in 1994. Its initial purpose was to manage and improve the returns generated by federal government assets and equity holdings. In the mid-1990s it became involved in large-scale national development and industrial projects, including Putrajaya Holdings, satellite broadcasting through Astro-related holdings, wafer-fabrication capability and an aerospace cooperation arrangement with British Aerospace. It also participated in the restructuring of Malaysian banks during the late-1990s financial crisis. The institution broadened its role in the 2000s. It acquired UEM Group through its subsidiary Syarikat Danasaham in 2001, helping address the highly leveraged position of UEM and Renong. In 2004 the Malaysian government gave Khazanah a revised mandate to act as an active shareholder and lead transformation among government-linked companies. The fund subsequently introduced a transformation programme and guidelines for government-owned companies. It also became a significant issuer in global capital markets, including through pioneering Sharia-compliant and sustainable finance transactions. Regional expansion included investments in Indonesia, the Northern Corridor Economic Region, takaful and reinsurance, and Malaysian biotechnology and traditional-herb development. During the 2010s Khazanah pursued a mixture of commercial, developmental and strategic investments. Its healthcare platform IHH Healthcare acquired Parkway Holdings in 2010, while Khazanah and Temasek formed M+S in 2011 to develop projects connected with Iskandar Malaysia and Singapore. The fund backed tourism assets, insurance businesses and healthcare companies, and later acquired Prince Court Medical Center before selling it to IHH Healthcare in 2019. It also invested in technology and digital businesses, including WeLab, and supported FashionValet alongside Permodalan Nasional Berhad. In 2014 it announced the purchase of the remaining publicly held shares in Malaysia Airlines and the airline's subsequent delisting, returning the carrier to government-linked ownership. The fund also disposed of stakes in several foreign companies and Indonesian infrastructure assets as part of portfolio management. A major restructuring began in 2018 after a change in Malaysia's government. The process involved leadership changes, a review of the fund's mandate and objectives, and reassessment of its investment portfolio. Khazanah continued to invest in domestic capabilities and strategic sectors while seeking greater international exposure, including a stated interest in United States technology companies. During the COVID-19 crisis it pledged RM20 million toward relief efforts in April 2020 and invested RM3.6 billion in Malaysia Airlines in 2021. The Dana Impak portfolio was also given a larger role in addressing household incomes and other socioeconomic priorities. From 2022 onward, Khazanah placed greater emphasis on sustainability, venture capital, technology, inclusion and green investment. It partnered with SK Ecoplant in relation to Cenviro, explored investment opportunities in Southeast Asia and India, invested in Xpressbees and PolicyStreet, and worked with Antler to support Malaysia's startup ecosystem. In 2023 it launched the Future Malaysia Program and announced plans for a green investment platform operated by UEM Group. In 2024 it completed the acquisition of MAVCAP and Penjana Kapital, and a national fund-of-funds was announced with an initial RM1 billion allocation. By December 2024, the reference material reported assets under management of approximately US$36 billion. Khazanah's continuing model combines portfolio returns, capital recycling and strategic investment with national development objectives.
- 2024
Venture-capital platform consolidation
[1]Khazanah completed the acquisition and integration of MAVCAP and Penjana Kapital.
- 2023
Future Malaysia Program
[1]Khazanah launched a programme to support Malaysian startups, entrepreneurs and venture-capital participants.
- 2022
Sustainability framework
[1]Khazanah introduced a framework targeting carbon-neutral operations by the end of 2023 and net-zero emissions by 2050.
- 2021
Expanded Dana Impak allocation
[1]Khazanah allocated RM6 billion through Dana Impak toward household-income and socioeconomic objectives.
- 2018
Corporate restructuring
[1]The Malaysian government initiated a restructuring involving leadership, mandate and portfolio review.
- 2014
Malaysia Airlines renationalisation
[1]Khazanah announced a plan to acquire minority shares in Malaysia Airlines and delist the carrier.
- 2010
Parkway expansion
[1]Khazanah's healthcare subsidiary IHH acquired the remaining shares of Parkway Holdings.
- 2004
Strategic mandate refresh
[1]The government appointed Khazanah to act more actively as a shareholder and lead transformation of government-linked companies.
- 2001
UEM Group acquisition
[1]Khazanah acquired UEM Group through Syarikat Danasaham in a restructuring effort involving UEM and Renong.
- 1994
Operations begin
[1]The institution began operating as a manager of government-owned commercial assets and equities.
Products and positioning
A state-owned strategic investor combining long-term financial returns with national economic development and socioeconomic impact.
Investment portfolio
Commercial Investments Portfolio
Khazanah's commercial portfolio invests across sectors and geographies with the objective of generating sustainable, long-term risk-adjusted returns. Its historical holdings and transactions have included banking, telecommunications, infrastructure, healthcare, aviation, consumer businesses, technology and international equities.
Impact investment portfolio · 2021
Dana Impak
Dana Impak is the impact-oriented investment structure used to pursue measurable socioeconomic outcomes alongside financial discipline. Its themes include household-income improvement, digitalisation, healthcare access, technology, environmental sustainability and the development of Malaysia's entrepreneurial ecosystem.
Sukuk and structured finance · 2004
Islamic capital-markets instruments
Khazanah has used global capital markets to issue sukuk and related instruments, supporting Malaysia's Islamic-finance ambitions. Its reported transactions include exchangeable Sharia-compliant bonds, a sustainable and responsible investment sukuk and the first offshore renminbi-denominated sukuk.
Entrepreneurship and venture ecosystem programme · 2023
Future Malaysia Program
Launched under Dana Impak, the Future Malaysia Program supports entrepreneurs, startups, venture funds and corporate-venture programmes through partnerships with local and international ecosystem participants.
Marketing campaigns
- 2023Future Malaysia Program
Malaysia
The programme was launched to strengthen Malaysia's startup, entrepreneur, venture-fund and corporate-venture ecosystem.
Outcome. Expanded Khazanah's ecosystem-building and impact-investment activities.
- 2020COVID-19 relief contribution
Malaysia
Khazanah committed RM20 million in total to relief efforts during the COVID-19 pandemic.
Outcome. Supported pandemic-response activities.
- 2005Government-linked company transformation programme
Malaysia
Khazanah introduced a transformation programme and guidelines intended to improve the performance and governance of government-linked companies.
Outcome. Provided a framework for Khazanah's active-shareholder role.
Brand decisions
2024
Integrate MAVCAP and Penjana KapitalM&ABackground
Malaysia sought to consolidate and strengthen its venture-capital infrastructure.
Action taken
Khazanah completed the acquisition and integration of Malaysia Capital Venture Management and Penjana Kapital.
Aftermath
The transaction was intended to reinforce Malaysia's venture-capital ecosystem.
2023
Launch the Future Malaysia ProgramProduct launchBackground
Malaysia's startup and venture ecosystem required additional domestic and international capital and institutional support.
Action taken
Khazanah launched the Future Malaysia Program under its Dana Impak mandate.
Aftermath
The initiative broadened Khazanah's role in venture development and ecosystem building.
2018
Restructure the institution and review the portfolioStrategyBackground
A new Malaysian government initiated a review of Khazanah's leadership, mandate, objectives and investments.
Action taken
Khazanah underwent corporate reorganisation, leadership changes and reassessment of its investment holdings.
Aftermath
The review reset the balance between commercial returns, strategic investment and socioeconomic objectives.
2014
Acquire and delist Malaysia AirlinesM&ABackground
Khazanah sought to restructure Malaysia Airlines and return the loss-making national carrier to government-linked ownership.
Action taken
It announced plans to purchase the remaining shares held by minority investors and delist the airline.
Aftermath
The transaction effectively renationalised the airline and was followed by a restructuring programme.
2004
Adopt an active-shareholder mandateStrategyBackground
The Malaysian government sought a stronger role for Khazanah in improving government-linked companies and supporting national economic priorities.
Action taken
Khazanah received a revised mandate to act as an active shareholder and lead government-linked company transformation.
Aftermath
The mandate shaped the institution's subsequent governance, restructuring and portfolio-management activities.
Sources1 sources
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