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Sovereign Wealth Funds

Board of Malaysian strategic investment arm Khazanah offers to resign

The nine-member board of Khazanah Nasional Berhad, the Malaysian government's strategic investment arm, has offered to resign, according to a Khazanah news release Thursday.

All members of the board, including Managing Director Azman Mokhtar, made the offer to allow Malaysia's new government, elected on May 9, to form a new board, the release said.

The move comes almost three weeks after Mahathir Mohamad, who returned to power at the head of an opposition coalition after serving as prime minister between 1981 and 2003, criticized Kuala Lumpur-based Khazanah for straying from its mandate and doing "all sorts of funny things."

In response to the prime minister's comments, the sovereign wealth fund, with 157.2 billion ringgit ($38.7 billion) of investments in companies such as Telekom Malaysia, Tenaga Nasional and Malaysia Airports Holdings, issued a news release July 6 saying Khazanah would seek clarification from the government regarding its mandate.

Mohd Raslan Sharif, a Khazanah spokesman, couldn't immediately be reached for further comment.