Khazanah directors' move not surprising, more changes at top management: Analysts

KUALA LUMPUR: The move by Khazanah Nasional Bhd's Board of Directors (BoD) to offer to resign en masse was not a surprise to some analysts and economists, who believed there would be more changes at the top management of government-linked companies.
"It's normal in every country that once we change the government there will be new mission and vision by the new government. Singapore's Temasek Holdings for example had changed its top management after a change in the government.
"I anticipate that maybe with the new Khazanah (if the government accepts their resignations), Malaysia will see more injections and perhaps talents from overseas or maybe second tier management from the sovereign fund can take over the company," Hermana Capital Bhd Chief Executive Officer and Chief Investment Officer Datuk Dr Nazri Khan Adam Khan told Bernama.
"Prime Minister Tun Dr Mahathir Mohamad likes to give the younger people opportunity, so may be he wants to see fresh blood there," he added.
Earlier today, Khazanah Nasional announced that all nine members of its BoD including Managing Director Tan Sri Azman Mokhtar had offered to resign from their posts.
In a statement issued today, it said this would facilitate a smooth and orderly transition under the new Government.
The other members are Datuk Seri Nazir Razak, Tan Sri Md Nor Md Yusof, Tan Sri Mohamed Azman Yahya, Datuk Mohammed Azlan Hashim, Tan Sri Andrew Sheng Len Tao, Tan Sri Raja Arshad Raja Tun Uda, Datuk Nirmala Menon, and Yeo Kar Peng.
Dr Mahathir was reported as saying that there will be some restructuring in the sovereign fund as the appointments of the top level people are mostly political appointees.
He also urged the country's sovereign wealth fund to go back to one of its core purposes of helping the Bumiputeras.
The fund, according to him, was initially formed to buy shares allocated to the Bumiputeras, who would normally buy shares and sell them to others immediately.
"I don't understand when he said that Khazanah had deviated from that mission, but knowing Dr Mahathir, he always have a different mission that he wants to give to the new Khazanah. It could be to further empower the Bumiputera economy, say in other contexts like technology and education.
"I foresee Khazanah 2.0 to have these elements," Nazri Khan explained.
Currently, the total asset value managed by the fund stands at RM159 billion, out of which 30 per cent are held by foreign investors.
Khazanah is the national strategic investment fund entrusted to hold and manage the commercial assets of the government and to undertake strategic investments.
It is involved in various sectors such as power, telecommunications, banking, healthcare, airport management, infrastructure, leisure and tourism, property development, broadcasting, investment holding, and technology.
Some of the key listed companies under its investment portfolio are Telekom Malaysia Bhd, Tenaga Nasional Bhd, CIMB Group Holdings Bhd, Axiata Group Bhd, IHH Healthcare Bhd, Malaysia Airports Holdings Bhd, and UEM Sunrise Bhd.
As at 3.20 pm, the shares of some companies under Khazanah's portfolio were traded mixed — CIMB was down by four sen to RM5.85, TM eased two sen to RM3.85, Tenaga rose 14 sen to RM15.02 and IHH added two sen to RM5.99. — Bernama