KUALA LUMPUR (Oct 7): Khazanah Nasional Bhd is aiming to reduce as much as RM12 billion of its debt burden from the current RM47 billion to RM35 billion as soon as possible, said Economic Affairs Minister Datuk Seri Mohamed Azmin Ali.

“We are [hoping] to manage our debt level to RM35 billion to RM40 billion as soon as possible. we are now identifying those assets [to be disposed]," Azmin told reporters on the sidelines of the Khazanah Megatrends Forum 2019 here today.

While Azmin, who is also a board member of Khazanah, said that managing Khazanah’s debt level well is crucial, he added that “the net balance sheet of Khazanah is now much stronger than before”.

“Now, of course, the value of assets is about RM130 biliion, but the net value assets is stronger,” he added.

Noting that the process of selling Khazanah’s asset is normal, he also said that for the last 10 years, Khazanah has been selling assets, about more than 100 assets worth about RM65 billion.

“This is not something that is unusual. It is just that we need to make a strategic consideration based on the market condition and which will create values to our assets.”

“The money that we generate from the sales of assets will then be reinvested into other assets, and we want to make sure that it gives a better return and profit to Khazanah and subsequently will be able to give dividends to the government,” said Azmin.

Last Friday, Khazanah managing director Datuk Shahril Ridza Redzuan was reported as saying that the sovereign wealth fund has managed to reduce its debt burden from RM55 billion to RM47 billion in one year through asset and investment sales, its.

He said Khazanah also managed to generate RM9 billion in revenue during the same period and is expected to recover and able to generate RM5 billion in potential revenue this year.