Strategy - Introduction
Key themes of Khazanah Nasional's mandate as a strategic investment house include:
- Creating sustainable value
- Raising national competitiveness
- Cultivating a culture of high performance
These are to be achieved via four strategic pillars; namely:
- Legacy investments: Streamline, restructure, nurture
- GLC transformation: Increase shareholder and strategic value
- New investments: New sectors, cross border
- Human capital management: Active development of Human Capital for the nation
The framework for change in Khazanah Nasional's mandate announced by YABhg. Tun Abdullah Ahmad Badawi in May 2004 is within the broader context of the very important task of improving national competitiveness. This is especially pertinent in view of the increasing pressures of liberalisation and globalisation.
Khazanah is to take on a proactive role to catalyse the transformation of the Government-Linked Companies (GLC) into high-performing entities that are better prepared for a more liberalized world. GLCs are companies that have a primary commercial objective and in which the Malaysian Government has a direct controlling stake. The GLC transformation program is part of an ongoing effort by the government to drive the development of and grow the Malaysian economy by enhancing the performance of the companies under its control.
In this respect, Khazanah’s role as an active strategic investor now involves driving and creating greater shareholder and strategic value. The first involves financial returns, the second, generally, in terms of enhancing capabilities. This may involve, where appropriate, taking calculated risks on behalf of the nation in new sectors and new markets that are deemed important in terms of penetration, linkages and potential for the nation's long-term competitiveness.