KUALA LUMPUR: Malaysia’s economy has demonstrated strong growth and impressive returns for 2024, supported by robust exports, increasing tourist arrivals, steady stock market performance, and a strengthening ringgit, which has further solidified the country’s standing. Khazanah Nasional Bhd managing director Datuk Amirul Feisal Wan Zahir said.
He said this resilience has played a crucial role in restoring investor confidence, as both local and foreign investors recognise Malaysia’s economic potential.
“The positive outlook has not only reassured existing investors but has also encouraged new participants to explore opportunities in the market. As a result, Malaysia has witnessed an uptick in foreign direct investments, with international businesses viewing the country as a reliable and profitable destination.
“The improving business environment and favourable economic indicators have contributed to sustained interest from global investors. With investor confidence steadily returning, Malaysia is poised for continued economic expansion, reinforcing its role as a key player in the regional and global markets,“ he told reporters at the Khazanah Annual Review 2024 today.
The sovereign wealth fund achieved RM5.1 billion in profit from operations in 2024, driven by monetisation strategies, steady dividend income and fair value gains from global public equities. The balance sheet remains healthy with a regulatory asset value over debt ratio at 3.2 times.
Khazanah’s net asset value (NAV) surged by RM18.8 billion to reach RM103.6 billion. This growth was accompanied by a strong NAV time-weighted rate of return of 24.6%, a significant jump from 5.7% in 2023.
From the perspective of the Khazanah portfolio, NAV growth increased from RM33 billion in 2004 to RM104 billion in 2024, achieving a compounded annual growth rate of 5.9%. This growth aligns with Khazanah’s mandate to generate sustainable returns for the nation while enhancing Malaysia’s long-term wealth.
The fund’s positive performance underscores its ability to generate sustainable long-term returns, which benefit its stakeholders and the broader Malaysian economy.
Khazanah has declared a dividend of RM1 billion for 2024 to the government, contributing to a cumulative total of RM19.1 billion in dividends paid since 2004.
“We achieved significant growth in our portfolio in 2024, driven by the strong performance of our Malaysian investments, particularly our holdings in the major constituents outperforming the FBM KLCI, on the back of strong domestic market performance, the continued growth of public equities in developed markets and the recovery in emerging markets,“ Amirul Feisal said.
For this year, Khazanah will remain steadfast in navigating the complex interplay of medium- to long-term global megatrends and immediate macroeconomic dynamics, he said.
With an ageing global workforce, ever-evolving technological advances, particularly in artificial intelligence, ongoing geopolitical tensions, rising protectionism and the mounting imperative of combating climate change, Khazanah’s focus is on harnessing these transformative forces to build a sustainable and resilient future.
“We are confident that Malaysia will continue to be resilient, bolstered by political stability and clear policy direction. The significant influx of investments from foreign and domestic sources reflects the confidence in our nation’s potential for sustained growth,“ Amirul Feisal said.
