Khazanah records RM5.9b in profit from operations in 2023 financial year

 

Khazanah Nasional Bhd recorded a higher profit from operations of RM5.9 billion in financial year 2023 (FY2023) compared with RM1.6 billion in FY2022 amid volatile global market conditions.

Managing director Amirul Feisal Wan Zahir said its stronger performance was driven by higher dividends and distributions from investee companies, fair value gains, and capital preservation.

“2023 was challenging for Khazanah and the global markets, influenced by the anticipated peak in the US Federal Reserve rates, a slowdown in elevated inflation, tight monetary conditions, a concentrated rally in artificial intelligence, weak growth in China, and ongoing geopolitical conflicts,” he told a media briefing on Khazanah Annual Review 2024 today. 

Nevertheless, he said, Khazanah remained resilient and demonstrated disciplined capital allocation to deliver sustainable returns while investing for the future and embedding sustainability across operations.

The sovereign wealth fund announced a better dividend of RM1 billion for 2023 to the government (FY2022: RM500 million), bringing the cumulative dividends paid since 2004 to RM18.1 billion.

Amirul said Khazanah’s debt increased marginally to RM50.2 billion from RM49.1 billion in the previous year while its realisable asset value over debt ratio remained healthy at 2.7 times.

“Net asset value grew from RM33 billion in 2004 to RM85 billion in 2023, resulting in a compounded annual growth rate of 5.1 percent and fulfilling Khazanah’s mandate to deliver sustainable returns to the nation and growing Malaysia’s long-term wealth,” he added.

For this year, Amirul said, the global macroeconomic and market environment is expected to remain challenging and volatile, with ongoing geopolitical conflicts in the Middle East, the continuation of the Russia-Ukraine War, and global competition between China and the US.

Additionally, he said a significant global election cycle involving 76 countries, representing over 60 percent of the world’s gross domestic product, will introduce further volatility.

“In this environment, Khazanah remains vigilant in its investment activities to maintain portfolio resilience through strategic diversification,” he added.

- Bernama