Malaysia sovereign wealth fund Khazanah’s board offers to resign

Kuala Lumpur, July 26

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The managing director and board members of Malaysia’s 157.2 billion ringgit ($39 billion) sovereign wealth fund Khazanah Nasional Bhd have offered to resign, marking the biggest shake-up among state-linked companies since a new government was elected in May.

“This is done in order to facilitate a smooth and orderly transition under the new Government,” Khazanah said in a statement on Thursday.

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. Azman has led the fund for 14 years.

Prime Minister Mahathir Mohamad’s coalition, which came to power in a historic general election in May when voters booted out former Prime Minister Najib Razak’s long-ruling party, has promised big structural reforms at state-linked firms and agencies in efforts to boost governance and accountability.

Last month, the chairman of Permodalan Nasional Bhd (PNB), Malaysia’s largest fund management firm, was replaced. Malaysia also named a new central bank chief in June after Mahathir’s government took charge.

Talks have been swirling for weeks of management changes at more state-linked companies, including Khazanah. — Reuters.