Asset restructuring a normal procedure, says Khazanah MD

Shahril Ridza Ridzuan. (Bernama pic)

KUALA LUMPUR: Khazanah Nasional Bhd managing director Shahril Ridza Ridzuan today maintained that diversifying the company’s assets was a natural part of its management.

“Like any fund manager, we are restructuring our portfolio. This happens all the time, whether it is Permodalan Nasional Bhd (PNB), EPF (Employees Provident Fund) or Tabung Haji.

“We tend to sell assets and buy new ones at the same time.”

Speaking to reporters on the sidelines of the China Conference organised by the South China Morning Post, he also rubbished the idea that this was being done to help the government raise money.

“It’s just part of our normal portfolio restructuring,” he said.

It was reported yesterday that Khazanah and PNB were set to review and offload several “non-strategic assets” as part of Putrajaya’s fiscal consolidation measures.

Shahril said there was no set target for Khazanah, and that the portfolio restructuring would depend on the market.

On Prime Minister Dr Mahathir Mohamad’s statement that Khazanah was not a government company, he said it had two “very clear mandates”.

“On the commercial front, we act very much as a private investor. On the strategic side, we help the government in terms of domestic development.”

By nature, he said, Khazanah was a private company, only it happened to be owned by the government.

He added that Khazanah operated on commercial terms with commercially-written objectives, and had no current plans to invest in the private sector.