Khazanah Nasional shifts focus to power and chips for AI growth

Khazanah Nasional Bhd, the sovereign wealth fund of Malaysia MY, has announced plans to increase capital allocation toward power system infrastructure and semiconductor firms. Managing Director amirul feisal wan zahir stated at the World Economic Forum in Davos on January 19, 2025, that the fund will prioritize these sectors to capitalize on investment opportunities driven by artificial intelligence. This strategy aims to position Malaysiato support the large-scale infrastructure shift required as AI computing demand continues to accelerate globally.

The fund plans to focus specifically on energy infrastructure and grid resilience, which amirul feisal wan zahir identified as critical competitive factors in the AI era. Rather than focusing solely on data centers, Khazanah is addressing the underlying infrastructure bottlenecks. The fund is considering funding capital requirements for semiconductor players in Malaysiato move up the value chain toward advanced packaging. This shift is intended to strengthen the nation's role in the global chip supply chain and support the build-up of local capabilities in chip design.