KUALA LUMPUR, July 26 — The en masse departure of Khazanah Nasional’s board of directors may disrupt the sovereign fund’s investment holdings and the operations of firms in its stable, said Opposition Leader Datuk Seri Ahmad Zahid Hamidi.
Zahid said he was reserving comment on the purported reasons for the directors’ departures, but expressed concern that similarly drastic changes would take place within government-linked companies under Khazanah.
While he said these may present advancement opportunities for those in such firms, he expressed suspicion that the ruling Pakatan Harapan may use the openings to reward its supporters instead.
“The resignation of the board of directors causes us great unease as these individuals had genuinely served and contributed to the success of the company,” he said in a statement.
Zahid added that the fund’s entire investment portfolio may be jeopardised if PH is seen as replacing the board with political appointees.
He added that the outgoing directors were experienced corporate captains who have had experience leading commercial banks and serving in Bank Negara Malaysia.
The Opposition expects the government to nominate those with equal or better qualifications than the outgoing directors in order to preserve the value of Khazanah’s investments and maintain investor confidence, he said.
Khazanah held significant stakes in critical firms such as Tenaga Nasional, Telekom Malaysia, Axiata Group, CIMB Group, Malaysia Airports Holdings, IHH Healthcare and Malaysia Airlines, he pointed out when stating concerns on the effects to their share values.
He further noted Khazanah was working with Singaporean counterpart, Temasek Holdings, in several developments in the republic including Marina One and Duo.
Zahid pointed out that ties with Singapore were already strained by the government’s decision to delay or discontinue the High-Speed Rail between the two countries, and said changes in Khazanah could further affect diplomatic ties with the city state.
Khazanah confirmed this morning that its entire board including managing director Tan Sri Azman Mokhtar have submitted their resignations.
