Khazanah invests in China, India stock markets

graphic by MZUKRI

SOVEREIGN wealth fund Khazanah Nasional Bhd made RM6.4 billion worth of investment as of June, with about 10% of the amount channelled into new stocks in China and India.

Deputy Economic Affairs Minister Dr Mohd Radzi Md Jidin said RM553 million had been placed in the public market in China, while the remaining RM84 million in India. Khazanah also purchased new shares in China’s largest online financial company Ant Financial Services Group and CIMB Group Holdings Bhd since Pakatan Harapan won the federal election last year.

Total investment included a combined RM2.53 billion spent on IHH Healthcare Bhd and Prince Court Medical Centre before Khazanah’s shares were sold off, Mohd Radzi told the Dewan Rakyat yesterday.

He said this in response to a query by Datuk Seri Ahmad Maslan (Barisan Nasional-Pontian) who asked the minister to state the total number of assets under state-owned entities such as Khazanah, the Federal Land Development Authority (Felda) and Petroliam Nasional Bhd (Petronas) that have been sold to foreign buyers.

Mohd Radzi said in April, Petronas had acquired a 100% interest in Singapore-based Amplus Energy Solutions Pte Ltd for an undisclosed fee as part of the oil giant’s move into renewable energy.

On assets sold to foreign buyers, the deputy minister said there have only been two such divestments namely the sale of its stake in IHH Healthcare to Japan’s Mitsui & Co Ltd for RM8.42 billion in cash and its joint-venture decision to sell part of the duo projects to Hoi Hup Realty Pte Ltd for S$475 million (RM1.44 billion).

No divestments have been made by Petronas and Felda so far, he said. Economic Affairs Minister Datuk Seri Mohamed Azmin Ali last month revealed that the fund divested RM18.8 billion worth of assets to date. The amount disposed of was at RM3.2 billion between May and December 2018, while another RM15.6 billion in assets were divested from January to June 2019.

Apart from the abovementioned, Khazanah has also divested a portion of its stake in the Chinese e-commerce giant Alibaba Group Holding Ltd worth RM2.2 billion. The divestment is one of seven overseas investments disposed of by the sovereign wealth fund over the 13-month period.

Others included entire stake sales in BDO Unibank Inc worth RM1.56 billion, Ltd (RM771 million), SEA Ltd (RM612 million), Infosys Ltd (RM201 million), PT Charoen Pokphand Indonesia Tbk (RM196 million) and a partial stake sale in Titan Industries Ltd (RM89 million).

Azmin said the disposals were not uncommon given Khazanah’s role as an investment fund. He added that the sale of an asset is immediately considered once its financial and strategic goals are met.