Khazanah Bets on Power Grids and Chips as AI Redefines Investments

Malaysia’s sovereign wealth fund, Khazanah Nasional Bhd, plans to direct more capital toward strengthening power infrastructure and supporting domestic semiconductor companies as artificial intelligence reshapes global investment priorities.

Speaking at the World Economic Forum in Davos, Khazanah’s Managing Director Amirul Feisal Wan Zahir said the rapid growth of AI is changing what investors consider critical, with energy supply and resilient power grids emerging as key enablers of competitiveness. He explained that while many global investors are focusing heavily on data centres, Khazanah sees greater long-term value in investing in the energy systems that support large-scale computing.

Reliable, affordable power, including renewable energy, will be essential as AI-driven infrastructure expands. Alongside energy, Khazanah is also looking to support Malaysian semiconductor firms by helping fund their move up the value chain, particularly in advanced chip packaging. This approach aligns with Malaysia’s broader industrial push to strengthen its position in the global semiconductor supply chain.

The Malaysian government aims to attract massive semiconductor investments while building local capabilities in chip design and advanced manufacturing. Khazanah, which holds stakes in major institutions such as CIMB Group and Malaysia Aviation Group, reported a strong rise in its net asset value in 2024 and expects its international investments to gradually increase over time.

Source: The Economic Times