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PAC Demands Probe of Khazanah's Domestic Investments

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  Published in Business and Finance on Wednesday, March 11th 2026 at 16:03 GMT by Free Malaysia Today
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Scrutiny Intensifies on Khazanah: PAC Demands Deeper Dive into Domestic Investments, Calls for Increased Transparency

PUTRAJAYA, Malaysia - March 11th, 2026 - The Public Accounts Committee (PAC) has escalated its concerns regarding Khazanah Nasional Berhad, Malaysia's sovereign wealth fund, issuing a strongly worded report urging the Finance Ministry to undertake a comprehensive investigation into its domestic investment portfolio. The report, declassified today, highlights persistent issues of transparency and accountability surrounding Khazanah's investment decisions and overall performance.

The PAC's findings stem from a prolonged period of scrutiny surrounding Khazanah, particularly following reported losses in recent financial years. While the sovereign wealth fund remains a crucial asset for Malaysia's economic development, questions have arisen regarding the efficacy and oversight of its domestic investments. The committee stresses that a deeper examination is necessary to ensure these investments are aligned with national economic goals and are being managed responsibly.

"This isn't simply about past performance," stated PAC Chairperson, YB Tan Sri Dato' Seri Ahmad bin Hassan, in a press conference this afternoon. "It's about establishing a robust framework for future investments, ensuring that every ringgit invested on behalf of the Malaysian people is utilized effectively and with complete transparency. We need to understand the rationale behind each domestic investment, the projected returns, and the mechanisms in place to mitigate risk."

The PAC report specifically calls for the Finance Ministry to review Khazanah's investment decisions, not just in terms of financial returns, but also in relation to their broader impact on the Malaysian economy. This includes assessing whether investments are contributing to job creation, technological advancement, and sustainable development. The report notes a perceived lack of clarity surrounding the criteria used to select domestic projects and the level of due diligence conducted before funds are committed.

Experts suggest the PAC's concerns are not unfounded. "Sovereign wealth funds globally are facing increased pressure to demonstrate their societal impact," explains Dr. Maya Sharma, an economist specializing in sovereign wealth fund governance. "It's no longer sufficient to simply generate profits. Funds like Khazanah are expected to play a more active role in supporting national development priorities, and that requires a higher level of transparency and accountability."

The call for increased transparency extends to the reporting of Khazanah's performance. The PAC recommends that the Finance Ministry provide regular, detailed updates not only to the government but also to the public. This would allow for greater public oversight and foster trust in the management of the fund. Currently, information regarding Khazanah's domestic investments is often limited, making it difficult for stakeholders to assess its effectiveness.

The situation with Khazanah mirrors a growing global trend of increased scrutiny of sovereign wealth funds. Norway's Government Pension Fund Global, for instance, faces rigorous public reporting requirements and operates under strict ethical guidelines. Singapore's GIC and Temasek Holdings also demonstrate a commitment to transparency, providing detailed annual reports and outlining their investment strategies.

While Khazanah has previously defended its investment strategies, arguing that some long-term investments may take time to yield returns, the PAC believes that greater clarity is essential. The committee is also examining the potential for conflicts of interest within Khazanah's investment process, ensuring that decisions are made solely in the best interests of the nation.

The Finance Ministry has yet to formally respond to the PAC's report. However, sources within the ministry indicate that a review of Khazanah's domestic investments is already underway, and that the ministry is committed to addressing the concerns raised by the PAC. The next few months are expected to be critical as the Finance Ministry implements the PAC's recommendations and seeks to restore public confidence in Khazanah's management and governance. The PAC has stated it intends to reconvene in six months to review the progress made.