KUALA LUMPUR, Oct 24 ― Khazanah Nasional Bhd will shift its entire operations from its main base at the iconic Petronas Twin Towers to newer premises in KL Sentral, managing director Datuk Shahril Ridza Ridzuan revealed in a parliamentary inquiry.
Shahril confirmed to the Public Accounts Committee (PAC) of Khazanah’s relocation in April when he was summoned to explain the sovereign wealth fund’s shocking RM6.3 billion loss.
According to details of the report published today, Shahril said the move will save Khazanah at least RM20 million a year.
“Even within Kuala Lumpur, you know, we have two offices in Kuala Lumpur. Actually, there is no need for it,” Shahril told PAC in the April meeting.
“So we actually [are] going to consolidate everything to one office at a cheaper location. So, right now we are in KLCC as well as KL Sentral.
“We probably close down the one in KLCC and move everybody to KL Sentral. That saves us about RM20 million a year, just in rental alone,” he added.
He was responding to then committee chairman Datuk Seri Ronald Kiandee who asked whether Khazanah was planning to cut down its manpower to reduce its overall cost of operation by about 30 to 40 per cent.
Shahril said Khazanah was also planning on closing down some of its offices overseas which it deemed not necessary.
He also said that Khazanah will ensure that it is not overpaying its staff, although he insisted that Khazanah needs to offer attractive pay as it is competing with other investment banks and sovereign wealth funds.
Khazanah currently has two offices in Tower 2 of the Petronas Twin Towers in Kuala Lumpur City Centre (KLCC) and Mercu UEM in KL Sentral.
In July, The Malaysian Reserve quoted an anonymous source saying the move would probably take place in the first half of 2020.
It reported that the move will relocate 300 staff members, coinciding with the lapse of the lease agreement for the Twin Towers office.
Khazanah owns the 29-floor Mercu UEM building through its fully-owned subsidiary UEM Group Bhd.
PAC said yesterday it is satisfied with Khazanah’s explanation over its RM6.3 billion loss last year, which was due to: a change in the government’s telecommunication policy, financial reporting standards, and a change in investment strategy.