KUALA LUMPUR, March 2 ― Malaysia’s sovereign wealth fund Khazanah Nasional Berhad today reported lower profits from its operations in 2021 compared to 2020, which it attributed to the continued challenges posed to the tourism and aviation sectors during the pandemic era.

The company reported RM670 million in 2021 compared to RM2.9 billion in 2020, which is still a far cry from 2019 where after a successful turnaround saw profit from operations shoot up to a record RM7.36 billion compared to a loss of RM6.27 billion the year before.

Khazanah managing director Datuk Feisal Zahir said the company has continued to support many of its assets in the Strategic Fund to weather the impact of Covid-19.

He added that the fund recorded a net asset value time weighted rate of return of 11.4 per cent.

"Khazanah maintained support for its developmental assets such as Themed Attractions Resorts & Hotels and Iskandar Malaysia through capital injections in 2021, and is currently working with the management of those companies to develop and execute strategies for business recovery and sustainability,” he told reporters here while presenting Khazanah’s Annual review.

Khazanah is the largest shareholder in Malaysia Airlines Berhad (MAB).

The national carrier has been struggling to regain its footing even before the pandemic brought a total halt to the aviation industry, as governments around the world shut down borders to stem the virus’ spread.

The national carrier was delisted in August 2014 after the fund offered to buy out its minority share for a total of RM1.38 billion and undertake restructuring.

The airlines known popularly as MAS had suffered two major aviation disasters that year following the losses of two jets.

First, Flight MH370 disappeared under mysterious circumstances with all passengers and crew on board now presumed dead.

The second, flight MH17 was downed by a missile over Ukraine while en route from Amsterdam to Kuala Lumpur.

The total takeover of MAB is to cost Khazanah some RM6 billion.

Since then, Khazanah has struggled to revive the airline, incurring losses of RM6 billion in 2020 compared to 4.9 billion in 2019 from MAB.

Feisal declined to comment exactly when asked how much will be pumped into the ailing airline or if they would sell the company.

"Right now, we are focusing on the operations of the company. Whether we are allowed to sell a national interest we have to work with the government.

"If somebody wants to buy it, it’s hypothetical. Ideally if somebody wants it it has to make sense and also what value can these parties bring to the table. So we shall wait and see,” he said.

"The borders reopening will be a good start to help the company,” said Feisal when asked what the potential investment in MAB would look like this year.