Khazanah pumping RM6.8b investments into Malaysia’s economy

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KUALA LUMPUR, Sept 14, 2015 – Khazanah Nasional Bhd, Malaysia’s sovereign wealth fund, today announced additional domestic investments of RM6.77 billion to support the government’s economic measures to boost investor sentiment.

The Malaysian government announced earlier today economic measures to boost confidence. The measures included the injection of RM20 billion into a state investment firm to shore up the stock market.

Khazanah will “accelerate and increase domestic investments over the immediate and medium term” in sectors ranging from leisure and tourism to innovation and technology, the fund said in a press statement.

The RM6.77 billion investments are:

* Desaru Coast Destination Resort, an integrated leisure and tourism resort in Desaru, Johor, with a development cost of approximately RM4.5 billion between now and 2017 to 2022.

* A new Tourism Venture Fund of RM50 million for qualified tourism entrepreneurs in the sub sectors of eco-tourism and cultural/heritage tourism.

* New hospitals and extension of existing hospitals under IHH Healthcare Bhd costing approximately RM670 million between 2015 and 2017 in Medini, Iskandar; Kuala Lumpur, Klang, Malacca, and Kota Kinabalu.

* A new in-patient rehabilitation hospital business with investment totalling approximately RM100 million over the next two years until 2017, together with a foreign technical operator and equity partner to bring in global best practices.

* Development of Dataran Muzium and Tugu Park at an estimated development cost of RM1.1 billion between 2016 and 2018 to 2020, with Khazanah funding approximately RM730 million of the cost. The projects are a not-for-profit contribution to public spaces and are expected to be completed between 2018 and 2020.

* In the creative industries, the set-up of Sonneratia Capital, a RM50 million co-investments fund to finance production of local content for the export markets. Sonneratia Capital expects to see the release of the films in various regional markets starting from the end of 2015.

* In Iskandar Malaysia, i2M Sdn Bhd, a 100% subsidiary of Khazanah, will accelerate an investment of RM90 million to attract a targeted RM2.2 billion of additional foreign investment by 2020 in the BPO sector.

* An additional RM115 million for the domestic innovation and technology sector across several initiatives including the creation of physical innovation and accelerator space; startup bootcamps; angel matching co-investments in early-stage companies; and seed-stage venture capital funding for the Information Technology (“IT”) and non-IT sectors, respectively; and

* In line with the Government’s call to increase the Skim Latihan 1Malaysia (SL1M) programme allocation from 10,000 to 15,000 participants in 2015 (from the overall SL1M programme total of 4,500 participants in 2014), Khazanah is committed to more than double its existing commitment from 1,330 to 3,800 participants, at an estimated total cost of RM95 million per annum.

In a statement, Khazanah said: “The above projects and initiatives are over and above Khazanah’s existing commitments and investments through its various subsidiaries, major investee companies, and investment programmes.

“It is to be noted that the identified projects are incremental to investment plans announced previously or are being accelerated.”

Its major investee companies include Tenaga Nasional Bhd, Telekom Malaysia Bhd, CIMB Group Holdings Bd, Axiata Bhd, UEM Group Bhd, Malaysia Airports Holdings Bhd, Malaysia Airlines Bhd, Valuecap Bhd and Iskandar Investment Bhd. – The Rakyat Post

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