Assets under management: US$3bn5 (MYR 11bn)
 Established:
2008
 Headquarters: Malaysia
 Origin: Oil































1Malaysia Development Berhad

(former Terengganu Investment Authority)

Fund details

Source of funds
Terengganus sovereign wealth fund will be given a boost when Deputy Prime Minister Datuk Seri Najib Tun Razak hands over MYR 400 million in oil royalties to the state government.
The money is the first part of the MYR 3 billion oil royalties promised by the Federal Government to the state government².

MYR 11 billion5 will be sourced from the local and foreign capital markets with a proposal for the Federal Government to provide a government guarantee of up to MYR 5 billion¹

Management
TIA will have separate boards of advisors and directors, and a team of managers, to put in safeguard procedures to ensure the independence of each strata within the company. Risk management processes will also be strictly adhered to4.

The Sultan of Terengganu will be the chairman of the Board of Advisers2.

TIA assets
TIA will acquire some of the assets owned by the state.

The listed companies, held by its investment arm Terengganu Incorporated Sdn Bhd, are Eastern Pacific Industrial Corporation Bhd (EPIC), TDM Bhd and Golden Pharos Bhd.

Among the unlisted assets are Syarikat Air Terengganu Sdn Bhd and several parcels of land that have been partially developed³ 

Investments
Funds raised will be invested both within Terengganu and also the rest of Malaysia. But the TIA will also have a mandate to invest globally¹.
Shahrol Halmi, TIA Chief Executive Officer said that the fund plans to invest in "high-impact, strategic projects in Terengganu, other parts of Malaysia, and in regional and international projects that have positive spillover benefits to Terengganu"5.


References
1. Terengganu forms own investment fund , The Malaysian Insider, December 12, 2008
2. RM400mil boost for Terengganu sovereign wealth fund, Malaysia Today, December 13, 2008
3. T'ganu fund to buy state assets, The Edge Daily, December 16, 2008
4. The Terengganu Investment Authority can uplift the state, The Star, December1 8, 2008
5. Malaysian State Plans 11 Billion-Ringgit Wealth Fund, Bloomberg, May 18, 2009 

Last Updated: 19.05.2009

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