Proposed changes to how Malaysian GLICs operate should clarify what their mandates are meant to achieve but risk putting pressure on returns, say observers
The sovereign wealth fund has replaced Shahril Ridza Ridzuan, making it the latest government-linked investment company to change its leader.
Experts say the recent changes of chief executives at state investment funds PNB, EPF and Kwap all have similar explanations, with Khazanah potentially being next.
Malaysia’s sovereign wealth fund has been hit especially hard by Covid-19, to the extent that its chief executive and more of its overseas offices are seen as under threat.
The pandemic has sharpened investors’ focus on ESG adoption, but for Khazanah and other asset owners in Asia, scaling up sustainability-themed investments has its challenges.
Some asset owners in the region are reducing riskier assets, while more investors around the world are planning to increase their allocations to government bonds.