PAC Urges Khazanah To Strengthen Non-financial Risk Analysis

KUALA LUMPUR, Dec 3 (Bernama) -- The Public Accounts Committee (PAC) has recommended that Khazanah Nasional Bhd strengthen its risk management framework by conducting deeper scenario analyses on non-financial market shocks such as technological and geopolitical changes.

PAC chairperson Datuk Mas Ermieyati Samsudin said Khazanah should reinforce its existing stress-testing analysis, which has taken into account non-financial market shocks such as disruptive technological changes and geopolitical shifts since 2018. “This is to ensure that it can act proactively by restructuring or disposing of investments quickly when the fundamentals of those investments change drastically,” she said in a statement today.

She said that although Khazanah has stated its commitment to continuously improving this process, the PAC reminds Khazanah to remain vigilant and always ensure internal preparedness to face any drastic changes in investment fundamentals.

“In addition, the PAC takes note that Khazanah’s reporting to the Ministry of Finance (MOF) is no longer limited to financial performance alone, but also encompasses the overall strategic performance of its investments. This includes key developments and initiatives that are underway or have been implemented, in line with Khazanah’s mandate and role, as well as specific reviews and updates regarding the performance of Khazanah’s investee companies.

“On this matter, the PAC recommends that the MOF coordinate reporting requirements with Khazanah to obtain a deeper understanding not only of Khazanah’s domestic investments, but also projections related to the economy as well as relevant industries and sectors,” she added.

-- BERNAMA