KUALA LUMPUR (REUTERS) - The managing director and board members of Malaysia's US$39 billion (S$53 billion) sovereign wealth fund Khazanah Nasional have offered to resign, the firm said in a statement on Thursday (July 26).

"This is done in order to facilitate a smooth and orderly transition under the new government," Khazanah said in a statement.

Khazanah managing director Azman Mokhtar, whose term expires in the first half of next year, has hinted before that he may not seek an extension of his contract.

Tan Sri Azman has led the fund for 14 years.

The statement came hours after The Straits Times broke the story that Mr Azman and eight other members of the Malaysian sovereign wealth fund's board have submitted their resignations to the government.

The Straits Times reported on Thursday that Mr Azman and the Khazanah directors held a special board meeting late in the afternoon on Tuesday and decided to sign undated resignation letters that were subsequently submitted to Prime Minister Mahathir Mohamad's administration.