Khazanah Eyes Partnerships In US And China, Says CIO

SINGAPORE, Malaysia’s sovereign wealth fund, Khazanah Nasional Bhd, is looking to strengthen its partnerships with both the United States and China, recognising their pivotal roles in shaping global capital flows, supply chains, and technological advancement, according to its Chief Investment Officer, Datuk Hisham Hamdan.

Speaking on the sidelines of the Milken Institute Asia Summit 2025 in Singapore, Hisham said Khazanah’s mandate extends beyond investing in foreign companies. A key focus, he noted, is to identify businesses in the US and China that can collaborate with Malaysian entrepreneurs and contribute expertise in research and development (R&D).

“You have to pay attention to these countries,” Hisham told Reuters in an interview, highlighting China’s R&D expenditure of 2.7% of GDP as a benchmark that underscores the importance of knowledge partnerships.

Malaysia has in recent years attracted growing inflows of investment from both the US and China, particularly in data centre infrastructure, with major commitments from global technology giants including Microsoft, Alphabet, and Amazon, as well as Chinese leaders such as Tencent, Alibaba, and Huawei. The nation is also positioning itself as a regional hub for semiconductors, automotive manufacturing, and critical minerals such as rare earths.

On macroeconomic conditions, Hisham said he was encouraged by the potential convergence of US interest rate cuts and China’s supply chain realignments. “That reminds me of the roaring 90s,” he said, recalling the period when Malaysia’s economy surged on the back of US monetary easing and Japan’s supply chain relocations to Southeast Asia. “We want to take advantage of this shift — China’s supply chain diversification into ASEAN and Malaysia,” he added.

Khazanah currently holds investments across more than 8,000 companies worldwide. Hisham stressed that the fund’s strategy is not just about targeting individual firms, but rather ensuring the right balance between geographic exposure and sectoral positioning.

Founded in 1994 and wholly owned by the Malaysian government, Khazanah has in recent years pivoted toward a more diversified and global portfolio, with rising allocations to technology, renewable energy, and private equity.

When asked about Reuters’ exclusive report on Khazanah’s potential partnership with a Chinese state-owned enterprise to develop a rare earth refinery in Malaysia, Hisham declined to confirm the discussions, saying it was “way too early.” However, he acknowledged that rare earths remain one of the industries under review by the fund.

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