Malaysia’s Khazanah Nasional Reports Strong Profit Growth with 5.2% Returns in 2025

According to the fund’s latest disclosures, Khazanah’s net asset base rose to RM105 billion by the close of 2025, reflecting measured growth in a challenging market environment.

In a year marked by persistent global volatility and geopolitical uncertainty, Khazanah Nasional Berhad, Malaysia’s sovereign wealth fund, has delivered a notably resilient financial performance for the financial year ending 31 December 2025. The fund’s latest annual review reveals a 5.2 per cent return on its investment portfolio, accompanied by robust profit growth and a substantial rise in asset value. This outcome underscores Khazanah’s disciplined investment philosophy and strategic focus on long-term value creation. 

According to the fund’s latest disclosures, Khazanah’s net asset base rose to RM105 billion by the close of 2025, reflecting measured growth in a challenging market environment. Against this backdrop, the reported 5.2 per cent annual return stands as testament to the effectiveness of the fund’s diversified investment strategy, which blends domestic and international exposures across multiple sectors. Despite the uncertainties that have characterised financial markets through 2025, this performance attests to the fund’s capacity to balance risk and opportunity with considered judgement and long-range planning.  

Central to Khazanah’s achievement last year was an operational profit of RM5.6 billion. This figure not only represents a healthy increase compared with prior years but also reflects the fund’s ongoing commitment to delivering tangible contributions to Malaysia’s public finances. In line with this mandate, Khazanah declared a dividend of RM2 billion payable to the Malaysian government, reinforcing its role as a key institutional contributor to national economic development and fiscal stability. 

The gains reported by Khazanah extend beyond simple financial metrics. Total assets under management increased to RM156 billion by the end of 2025, illustrating that the fund continues to expand its investment footprint in both domestic and global markets. This growth can be attributed in part to sustained performance across public equities and value-creation initiatives undertaken within its portfolio. Over the long term, Khazanah has built a reputation for pursuing strategic engagements and nurturing assets that generate steady returns while delivering broader socioeconomic value. 

Datuk Amirul Feisal Wan Zahir, Managing Director of Khazanah, commented on the results, emphasising the significance of disciplined investment management in navigating a complex macroeconomic landscape. His remarks highlight that while 2025 presented unique challenges, the fund’s unwavering focus on long-term objectives and its ability to adapt to evolving conditions have been critical in realising resilient financial outcomes. Under his stewardship, the fund has blended prudence with opportunistic positioning in markets that demonstrate sustainable growth potential. 

Khazanah’s investment strategy is underpinned by a balanced approach to portfolio construction and risk management. The fund’s seven-year rolling annualised return of 6.1 per cent demonstrates a commitment to steady, long-term performance rather than short-term gains. This perspective is consistent with the fund’s overarching mandate: to preserve and enhance national wealth in a way that supports Malaysia’s evolving economic priorities.  

Furthermore, the fund’s activities extend beyond traditional financial capital deployment. Khazanah’s initiatives through programmes such as Dana Impak and the K-Youth training scheme reflect a broader commitment to capacity building and community development. In 2025 alone, the fund allocated RM330 million to such initiatives, with thousands of young Malaysians benefiting from skills development in areas including digital technologies, semiconductors, and aviation. These efforts reflect a strategic vision that seeks not merely to generate returns, but to create lasting social and economic impact within the nation. 

The continued expansion of the fund’s portfolio – from RM81 billion in 2018 to RM95 billion at the end of 2025 – demonstrates Khazanah’s proactive stance in enhancing its investment base. Such growth has been supported by a diversified mix of high-quality assets, disciplined risk assessment, and strategic capital allocation across sectors that are poised for long-term advancement.