Khazanah MD says US tariffs uncertainty makes it hard to exit private assets

The fund, which manages over US$30 billion (RM134.92 billion) of assets, is still assessing its next moves, as events are “literally still unfolding”, its managing director Datuk Amirul Feisal Wan Zahir said in a Bloomberg TV interview with Avril Hong in Kuala Lumpur on Wednesday.

“We are exposed to private assets internationally and domestically,” he said on the sidelines of the Asean Investment Conference 2025. “When you have policy changes such as this impacting global markets, it becomes very difficult for exits and investments. So, we will see what happens.”

Amirul said he was looking to diversify risks internationally, noting that risk factors would change with the restructuring of global trade. Domestically, Khazanah is focused on “key enablers” for the Malaysian economy that would help the country’s infrastructure, such as aviation connectivity and the energy transition. The fund is also looking at investing in startups, venture capital funding, and semiconductors, he added.

Concerns that Trump’s tariffs could push the world economy into recession have roiled global markets, threatening to erode Khazanah’s investment returns. The fund reported a 22% increase in its net asset value last year, bolstered by gains in domestic assets. Amirul said it was still too early to evaluate its net asset value targets for 2025.

Separately, state-owned asset manager Permodalan Nasional Bhd (PNB) is reconsidering whether to increase its investment in US equities, in light of the tariffs, according to deputy president and group chief executive Rick Ramli.

“I still haven’t formed a view,” he said during a panel discussion at the conference. PNB manages more than US$77 billion in assets.

Trump’s administration has imposed a 24% levy on imports from Malaysia as part of broader measures by the US to counter what it said were large imbalances with trading partners. The Southeast Asian country said it will continue to engage with Washington to find a fair solution to trade issues.

Malaysia’s stock market has experienced some of the worst fund outflows in Southeast Asia this month. Khazanah is one of the largest shareholders in the nation’s equities.

Still, Amirul was upbeat that economic growth would prevail in the country.

“For Malaysia, I think we are more optimistic. We see growth,” he said. “Rates at the moment are at a level where it is conducive for trade still.”

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