KUALA LUMPUR, March 5 (Reuters) - Malaysian sovereign wealth fund Khazanah Nasional Bhd unveiled a new investment strategy on Tuesday that classifies its portfolio into a commercial and a strategic fund, even as it reported weak results for last year.
The rejig comes as Prime Minister Mahathir Mohamad urgently needs to raise money for government coffers, depleted by a fiscal deficit and a massive debt from a multi-billion-dollar scandal at state investment fund 1Malaysia Development Bhd (1MDB).
“Our performance in 2018 was affected by several key global and domestic developments,” Khazanah Managing Director Shahril Ridza Ridzuan, who took charge in August, told reporters at a news conference.
“At the same time, the government initiated a reset of Khazanah, which involved significant changes including a refreshed mandate,” he said.
Khazanah said the realisable asset value of its portfolio value fell to 136 billion ringgit ($33.37 billion) in 2018 from 157 billion ringgit in the previous year. ($1 = 4.0750 ringgit) (Reporting by Liz Lee in KUALA LUMPUR; Writing by Anshuman Daga; Editing by Christopher Cushing and Himani Sarkar)