The Public Accounts Committee calls for Khazanah Nasional to deepen scenario analysis on tech and geopolitical risks to improve investment agility.
KUALA LUMPUR: The Public Accounts Committee (PAC) has urged Khazanah Nasional Bhd to strengthen its risk management by conducting deeper scenario analyses on non-financial market shocks.
PAC chairperson Datuk Mas Ermieyati Samsudin said Khazanah should reinforce its existing stress-testing analysis, which has accounted for shocks like disruptive technology and geopolitical shifts since 2018.
“This is to ensure that it can act proactively by restructuring or disposing of investments quickly when the fundamentals of those investments change drastically,” she said in a statement.
She noted Khazanah’s commitment to continuous improvement but reminded the sovereign wealth fund to remain vigilant against drastic changes.
The PAC also noted that Khazanah’s reporting to the Ministry of Finance now extends beyond financial performance to include overall strategic performance.
This encompasses key developments, initiatives, and specific reviews of investee company performance.
On this matter, the PAC recommended the Ministry of Finance coordinate reporting requirements with Khazanah for a deeper understanding.
This understanding should cover not only domestic investments but also economic projections and relevant industry sectors.
