Malaysia's Khazanah names EPF CEO as managing director

Shahril (pictured) will replace Azman Mokhtar on August 20. The nomination follows a resignation offer from the entire board of directors of Khazanah. Prime Minister Mahathir Mohamad, who won an historic election in May on a platform that prioritized anti-corruption efforts in state investment programs, will take over as chairman of Khazanah.

According to a release, four other new directors have been appointed to the Khazanah board with immediate effect, including Sukhdave Singh, chairman for the private equity arm of Maybank, and Minister of Economic Affairs Mohamed Azmin Ali. Meanwhile, Tunku Alizakri Alias, who joined EPF in 2014 as deputy CEO, has been named the pension fund’s incoming CEO.

The reshuffle coincides with an ongoing investigation into misuse of the government’s strategic investment program known as the 1Malaysia Development (1MDB) fund. The scandal has already seen Najib Razak, the former prime minister, arrested on charges of embezzling billions of dollars. Najib’s Barisan Nasional party, which was defeated earlier this year, had held power in the country since 1957.

Prior to joining EPF, Shahril was a managing director at the Malasyian Resources Corporation, where he was responsible for development of Kuala Lumpur Sentral, a major transportation hub. He also previously contributed to corporate recovery and credit restructuring work for engineering and property development company Pengurusan Danaharta Nasional following the Asian Financial Crisis of 1997.

“Though with a heavy heart, I am proud that Datuk Shahril has been appointed to take on greater challenges at Khazanah,” EPF Chairman Samsudin Osman, said in a statement. “He has brought the EPF to new heights with strong dividends, enhancements to the EPF’s policies as well as improvements to the customer experience. Datuk Shahril is a prime example of dedication and professionalism.”

Khazanah was established in 1993 and is owned by the Ministry of Finance. It claimed total assets of about MYR92.6 million ($22.7 billion) at the end of 2017. Revenue during the year declined slightly to MYR6.1 billion, while profit increased 95% to MYR2.8 billion. The firm attributed the performance to a number of risk management and prudential measures in prior years.

Established in 1951, EPF is said to be one of the oldest provident fund schemes globally. It claimed to have MYR791.5 billion in assets under management as of the end of 2017. Gross income for 2017 totaled MYR53.1 billion compared to MYR46.5 billion the prior year. This was said to be EPF’s highest yearly income to date, resulting in a gross return on investment of 7.3%.

Malaysia’s private equity and venture capital industries are regarded as heavily dependent on government support. However, local investors have expressed confidence in the government’s policy reform and anti-corruption efforts as well as a range of economic drivers including an improving talent pool and regional logistical advantages.

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• Topics
• Southeast Asia
• LPs
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• Malaysia
• Khazanah Nasional
• EPF