KUALA LUMPUR: Khazanah Nasional Bhd, Malaysia’s sovereign wealth fund, has expressed difficulty in exiting private assets as it navigates the uncertainty caused by US President Donald Trump’s sweeping global tariffs. The fund, which oversees over US$30 billion in assets, is currently reviewing its portfolio as global market conditions remain volatile.
In an interview with Bloomberg TV’s Avril Hong on the sidelines of the ASEAN Investment Conference 2025, Managing Director Amirul Feisal Wan Zahir highlighted the challenge of exiting and making investments amid shifting global policies.
“We are exposed to private assets both internationally and domestically,” said Amirul. “Policy changes, like the ones we’re seeing now, have a significant impact on global markets, making it harder to exit or make new investments. We will have to see how things unfold,” he added.
Amirul noted that Khazanah is focusing on diversifying risks internationally, particularly in response to the restructuring of global trade. Domestically, the fund is focused on supporting key sectors crucial to Malaysia’s economy, such as aviation connectivity and energy transition.
In addition, Khazanah is exploring investments in startups, venture capital, and semiconductors, he mentioned.
The uncertainty surrounding Trump’s tariffs, which have raised concerns about a potential global recession, has caused market turbulence and threatened to impact Khazanah’s investment returns. Last year, however, the fund reported a 22% increase in its net asset value, bolstered by gains in domestic assets.
Amirul also acknowledged the challenges posed by a 24% tariff imposed on Malaysian imports by the US, part of broader measures aimed at addressing perceived trade imbalances. Despite this, Malaysia remains committed to engaging with Washington for a fair resolution.
While Malaysia’s stock market has faced significant fund outflows in recent weeks, Amirul remains optimistic about the country’s economic prospects. “We are more optimistic about Malaysia’s growth,” he said. “Current rates remain conducive for trade.”–BLOOMBERG
