Malaysia’s Khazanah to steer more capital to power grids and chip firms, chief says in Davos
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Khazanah managing director Amirul Feisal Wan Zahir said Khazanah expected its international portfolio share to rise gradually over time.
PHOTO: BLOOMBERG
- Khazanah Nasional will invest more in Malaysia's power grid to support AI computing demands, prioritising energy resilience.
- The fund will also support local semiconductor firms financially to enhance their advanced packaging capabilities and value chain position.
- Khazanah's net asset value increased by 22% to RM103.6 billion in 2024, and anticipates its international portfolio will grow.
AI generated
DAVOS - Malaysia’s sovereign wealth fund Khazanah Nasional has plans to channel more capital into strengthening the power system and supporting local semiconductor firms as artificial intelligence (AI) drives the next investment cycle, its chief has told Reuters.
Surging AI computing needs were reshaping what is “investable” in the AI boom, with energy supply and grid resilience being central to competitiveness, Khazanah managing director Amirul Feisal Wan Zahir said in an interview at the World Economic Forum’s annual meeting in Davos on Jan 19.
“What it does need is computing power, and what computing power means is energy. So that’s when we think about capturing some of that growth,” Mr Feisal said.
While global investors have been pouring money into data centres, he said Khazanah would instead focus on infrastructure.
“We’re really looking at the energy part, so again looking at grid resilience,” he said, adding that cheap and reliable power, including renewables, would be critical as AI infrastructure scales up.
The firm was also “seeing how we can help fund some of the capital requirements of our semiconductor players to move up the value chain to advanced packaging”, Mr Feisal said.
Malaysia has been rolling out industrial policies aimed at strengthening its role in the global chip supply chain.
Malaysian Prime Minister Anwar Ibrahim said in May 2024 that the government aims to attract at least RM500 billion (S$159 billion) in semiconductor investment, supported by at least US$5.3 billion (S$6.8 billion) in fiscal incentives, and that it plans to build up local capabilities in chip design and advanced packaging.
Khazanah invests in Malaysia and internationally across markets, asset classes, sectors and geographies and counts the country’s second-largest lender CIMB Group and national carrier Malaysia Aviation Group among its portfolio.
Its net asset value rose 22 per cent to RM103.6 billion in 2024 from RM84.8 billion a year earlier.
Mr Feisal said Khazanah expected its international portfolio share to rise gradually over time.
Asked about the ringgit, he said there was “room” for the currency to strengthen depending on the US dollar, citing uncertainty over the path of US interest rates, but did not specify a level. REUTERS
