SINGAPORE (July 26): Malaysia’s strategic investment fund, Khazanah Nasional Berhad, saw a major shake-up this morning, after all nine of its board members tendered their resignation, including managing director Tan Sri Azman Mokhtar.

The other board members are Datuk Seri Nazir Razak, Tan Sri Md Nor Md Yusof, Tan Sri Mohamed Azman Yahya, Datuk Mohammed Azlan Hashim, Tan Sri Andrew Sheng Len Tao, Tan Sri Raja Arshad Raja Uda, Datuk Nirmala Menon, and Yeo Kar Peng.

In a statement issued this morning, Khazanah said the move was to facilitate a smooth and orderly transition under the new Pakatan Harapan (PH) government.

“The current board have been honoured to serve, and feels it appropriate to offer the new government the discretion and reaffirm the prerogative to form the new Board. We will issue a further statement once we have further details of the reconstitution of the board,” said Khazanah.

Two weeks ago, Mahathir publicly said that the sovereign wealth fund, which he founded in 1994, had deviated from its original objectives and has become a vehicle for the previous Barisan Nasional (BN) government to reward its cronies.

"The GLCs (government-linked companies) inevitably lose money, but the salaries of these people are very high and they enjoy all this without bothering whether the company makes a profit or not," said Mahathir in a recent interview with Hong Kong’s Investine.

Currently, Khazanah holds stakes in Tenaga Nasional, Telekom Malaysia, Axiata Group, CIMB Group Holdings, Malaysia Airports Holdings, as well as Singapore Exchange-listed IHH Healthcare. It is also the sole shareholder of Malaysia Airlines.

Khazanah is also in a joint venture with Singapore's Temasek Holdings in M+S, which was involved in the development of Marina One in Marina South and Duo in the Ophir-Rochor area.