The term "22 months of governing" refers specifically to the Pakatan Harapan (PH) administration, which led the federal government under Tun Dr. Mahathir Mohamad from May 2018 until February 2020. [1, 2]
During this time, the government did not directly sell off physical federal land or national infrastructure. Instead, the transactions involved rebalancing corporate investment portfolios held by sovereign funds, saving financially troubled state agencies, and liquidating seized criminal assets to pay down national debt. [1, 2, 3, 4, 5]
The main assets disposed of, their values, and the reasons for their sale include: [1]
1. Khazanah Nasional Divestments (Foreign & Local Corporate Stakes)
The government's sovereign wealth fund, Khazanah Nasional, routinely restructured its portfolio by reducing or exiting stakes in various companies. Between May 2018 and June 2019, Khazanah disposed of assets totaling RM18.8 billion. [1, 2, 3, 4]
Notable corporate sales within that pool included:
- IHH Healthcare Bhd: Khazanah sold a 16% stake to Mitsui & Co. Ltd for RM8.42 billion.
- Alibaba Group Holding Ltd: A partial stake sale raised RM2.23 billion.
- BDO Unibank Inc. (Philippines): Entire stake sold for RM1.56 billion.
- M1 Limited (Singapore telco): Disposed of for RM1.65 billion.
- Tenaga Nasional Bhd (TNB): Share placement worth RM1.05 billion.
- Reason for disposal: Unlike other state funds, Khazanah does not receive automatic cash injections from public or employee savings. It had to sell mature or non-core investments to generate cash to pay off expiring debts, reinvest in newer technologies, and pay dividends back to the federal government. [1, 2, 3, 4, 5, 6, 7]
2. The "Equanimity" Superyacht
This luxury 91-meter vessel was originally bought by fugitive financier Jho Low for an estimated US$250 million using money stolen from the state fund, 1Malaysia Development Berhad (1MDB). It was seized by law enforcement and sold directly to Genting Malaysia Bhd for US$126 million (around RM514 million). [1, 2, 3, 4]
- Reason for disposal: The government was spending RM14.5 million just to maintain and dock the idle yacht. Liquidating it through the court allowed the government to recover 1MDB losses and cut off expensive storage bills. [1, 3, 4]
3. Lembaga Tabung Haji Asset Transfer
Note: This was a restructuring bailout, not a commercial sell-off to the public.
In late 2018, underperforming investments, overvalued properties, and bad hotel assets with a book value of RM9.7 billion were transferred out of the pilgrims' fund to a government-owned Special Purpose Vehicle (SPV) named Urusharta Jamaah Sdn Bhd. In return, the SPV issued RM19.9 billion in Islamic bonds back to Tabung Haji to balance its books. [1, 2, 3, 4, 5]
- Reason for disposal: An audit revealed a massive financial gap where Tabung Haji’s liabilities exceeded its actual assets by over RM10 billion due to years of mismanagement. To prevent a total collapse and protect depositors' savings, the government moved the bad assets into its own holding company to rehabilitate them. The assets remained fully under the ownership of the Ministry of Finance, and none were sold off to foreign or non-Muslim interests. [1, 2, 3, 4]
To provide the exact analysis you need, please share the specific list of companies or deals you are referencing. In the meantime, the framework below demonstrates how to conduct a rigorous analytic review of an asset sale and compare it across different political administrations.
Step 1: Asset Valuation & Financial Health Review
An analytic review requires benchmarking the asset’s sale price against its fundamental financial metrics at the time of transaction.
- Valuation Multiples: Calculate Enterprise Value to EBITDA (EV/EBITDA), Price-to-Earnings (P/E), and Price-to-Sales (P/S) ratios. [1, 2, 3]
- Asset Quality: Review historical capital expenditure (CapEx) efficiency and depreciation schedules to evaluate the condition of physical or digital assets.
- Discounted Cash Flow (DCF): Project free cash flows (FCF) using historical growth rates to determine if the sale price reflected fair intrinsic value.
Step 2: Cross-Administration Comparison Framework
Comparing asset sales across different political administrations helps identify structural patterns, policy shifts, and valuation anomalies.
- Strategic Intent: Identify if the administration's goal was fiscal deficit reduction (rushed liquidation) vs. sector deregulation (strategic partnership).
- Transaction Structure: Contrast full privatizations (complete equity transfer) with public-private partnerships (PPPs) or minority stake sales.
- Market Timing: Control for macroeconomic conditions (e.g., interest rate environments, commodity cycles) during each administration's tenure to isolate deal performance from broader market movements.
Step 3: Assessing Structural Risk & Post-Sale Performance
Track the asset's trajectory after the sale to determine the long-term economic efficacy of the transaction.
- Regulatory Backlash: Evaluate whether subsequent administrations imposed new tariffs, windfall taxes, or operational constraints.
- Operational Efficiency: Measure whether profitability, service delivery, or production improved under private ownership compared to state control.
- Hidden Costs: Identify government guarantees, structural subsidies, or retained liabilities that eroded the net proceeds of the sale.
[ IHH ]
Evaluating IHH Healthcare Berhad (Bursa: 5225) requires focusing on how its massive scale was built and managed across distinct Malaysian government leadership eras. Originally forged as a healthcare champion by Malaysia's sovereign wealth fund, Khazanah Nasional Bhd, IHH’s trajectory shows a fascinating transition from an aggressive, state-backed international aggregator to a corporatized global entity facing foreign divestment and strategic localized consolidation. [1, 2, 3, 4]
Step 1: Asset Valuation & Corporate Evolution (Analytic Review)
IHH has fundamentally shifted from capital-heavy Greenfield expansions to high-synergy Brownfield asset acquisitions. [1]
- Valuation & Financial Profile: As of recent financial reporting, IHH's revenues reached RM25.7 billion, experiencing steady top-line growth from its core pillars in Singapore, Malaysia, India, and Turkey. Its historical valuation has typically commanded a premium (EV/EBITDA often hovering between 15x–22x) due to its defensive sector moats and high medical tourism exposure. [1, 2, 3, 4, 5]
- The M&A Playbook: IHH's financial health is defined by its core strategic acquisitions. This is highlighted by its RM3.92 billion acquisition of Island Hospital in Penang (buying out Affinity Equity Partners at roughly late-stage healthcare multiples). This deal targeted the lucrative medical travel market, aiming for RM200 million in localized operational synergies. [1, 2, 3, 4]
- Asset Quality & Capital Allocation: The company’s long-standing operational risk has been currency mismatch—earning heavily in Turkish Lira (TRY) and Indian Rupees (INR) while consolidating statements in Ringgit (MYR). However, its asset quality remains premier, owning iconic institutional brands like Gleneagles, Mount Elizabeth, and Pantai. [1, 2, 3, 4]
📊 Step 2: Cross-Administration Comparison
The governance and strategic ownership of IHH vary noticeably across different Malaysian administrations, moving from state control to corporate foreign partnership.
| Dimension | Barisan Nasional Era (Pre-2018) | Pakatan Harapan / Transition Era (2018–2020) | Perikatan / Current Administrations (2020–2026) |
|---|---|---|---|
| Sovereign Mandate | Aggressive Empire Building. Khazanah held a dominant majority stake. Used state backing to buy Parkway Holdings (Singapore) and Acibadem (Turkey). | Fiscal Rationalization & Divestment. Khazanah fundamentally pivoted to paring down non-core holdings. | Private Sector Re-Consolidation. State institutional funds (EPF, PNB) became stabilizing blockholders alongside corporate giants. |
| The Anchor Deal | Acquisition of Fortis Healthcare (India) for RM2.4 billion (31.1% stake) initiated right before the political transition. | The 16% Stake Sale to Mitsui & Co. Khazanah divested a massive chunk to Japan's Mitsui for RM8.4 billion at a premium price, moving state control into an international partnership. | Acquisition of Island Hospital (2024) and localized bolt-on deals to entrench domestic dominance. |
| Policy Objective | Projecting Malaysian corporate soft power globally through healthcare. | Trimming federal fiscal baggage; utilizing Khazanah as a liquidity provider to pay off state debts. | Maximizing public-private healthcare integration and capturing regional medical tourism. |
Step 3: Structural Risks & Post-Sale Trajectory
The operational reality of IHH across these leadership eras reveals structural headwinds that often overrode political macro-strategies:
The Fortis Overhang: The 2018 transaction to buy Fortis Healthcare India became a regulatory quagmire involving the Japanese pharmaceutical giant Daiichi Sankyo and India’s Supreme Court. The deal faced years of legal gridlock, highlighting the steep execution risk of cross-border state-backed M&A. It was only fully cleared by SEBI in late 2025. [1, 2, 3, 4, 5]
Foreign Ownership & National Asset Debate: When the administration authorized the 16% stake sale to Mitsui, it sparked heavy political backlash from opposition figures who claimed "national jewels" were being sold off to foreign entities. Empirically, however, Mitsui's ascendancy to the largest single shareholder (32.8%) streamlined corporate governance away from purely domestic bureaucratic interference. [1, 2, 3, 4, 5]
Private-to-Public Friction: As Malaysia grapples with rising healthcare costs and nursing shortages, IHH faces a regulatory tightrope. While recent administrations push for enhanced Public-Private Partnerships (PPPs) to ease overstrained public hospitals, IHH must defend its high margins from potential state pricing ceilings or mandatory talent-retention regulations. [1, 2, 3]
IHH Healthcare Bhd: Khazanah sold a 16% stake to Mitsui & Co. Ltd for RM8.42 billion. The Question?
Is it a justified decision for the early disposal of IHH share to Mitsui , knowing very well the health care industry boom?
Whether Khazanah Nasional Bhd's late 2018 divestment of a 16% stake in IHH Healthcare Bhd to Japan's Mitsui & Co. Ltd for RM8.42 billion (RM6.00 per share) was justified depends on looking at it through a short-term fiscal portfolio lens versus a long-term economic nationalism lens. From a pure portfolio rebalancing and financial execution standpoint, the decision was strongly justified by the immediate financial premium unlocked and the structural needs of the fund at the time. [1, 2, 3, 4, 5]
Financial and Strategic Justifications
Secured a High Valuation Premium: Khazanah sold the shares at RM6.00 per share, which represented a substantial 20% premium over the prevailing market price of around RM5.00 at the time. Executing a block sale of this magnitude above market price is considered a highly successful capital extraction.
Retained Strategic Upside Exposure: Khazanah did not completely exit the healthcare industry. By retaining a 26.05% stake, Khazanah remained the second-largest shareholder, maintaining board representation and continuing to benefit from the healthcare boom and IHH's global growth. [1, 2, 3, 4]
Funded Portfolio Restructuring: Following the 2018 change in Malaysian government, Khazanah’s mandate was redefined to separate its commercial wealth-generation goals from its strategic national development functions. The RM8.42 billion in cash provided crucial liquidity to pare down national liabilities and fund new domestic investment allocations. [1, 2, 3, 4, 5]
Risk Mitigation During Volatility: Around the time of the sale, IHH was facing significant operational headwinds due to foreign exchange volatility from its Turkish asset, Acibadem Saglik Yatirimlari Holding A.S.. Trimming the stake helped Khazanah hedge against mounting geopolitical and currency risks in emerging markets. [1, 2, 3, 4]
The Counterarguments and Criticisms
Loss of Controlling Malaysian Ownership: The transaction increased Mitsui's stake to 32.9%, displacing Khazanah as the single-largest shareholder. Critics, including former political leaders, argued that this effectively signed away control of a crown jewel multinational corporation built by Malaysia. [1, 2, 3, 4]
Selling Before the Pandemic Peak: While the macro-outlook for healthcare was clear, no one predicted the massive acceleration caused by the COVID-19 pandemic. Retaining a 42% stake during the global medical upswing would have yielded significantly higher dividend payouts and paper wealth for the government. [1, 2]
Summary Trade-off Framework
| Factor | Decisive Outcome | Analysis |
|---|---|---|
Transaction Price | RM6.00 / Share | Realized an immediate 20% value re-rating for the fund. |
| Control Matrix | Mitsui single largest (32.9%) | Shifted primary oversight to an international partner, though public institutional funds still hold a combined majority. |
Liquidity Value | RM8.42 Billion Cash | Met immediate macro-fiscal requirements for sovereign fund realignment. |
The Verdict: The disposal was not an uncalculated exit, but rather a controlled profit-taking move. Khazanah capitalized on a long-term partner (Mitsui) willing to pay a heavy premium to assume operational risks, while ensuring that the Malaysian public sector collectively retained enough equity to continue participating in the global healthcare boom. [1, 2, 3]
Would like to examine how IHH Healthcare's stock performance and financial earnings trended post-2018 to evaluate if the RM6.00 exit price held up well against its long-term peak valuations?
Yes, looking back, the RM6.00 exit price did not hold up well against IHH Healthcare's long-term peak valuations, as Khazanah sold right before a massive, sustained growth cycle. Driven by the post-2018 global healthcare boom, organic expansion, and high inflation-led pricing power, IHH’s operational scale and share price both skyrocketed far beyond the RM6.00 mark.
Post-2018 Stock Performance & Peak Valuations
The Valuation Surge: While the stock consolidated between RM5.00 and RM6.00 through 2019 and the early pandemic, it broke out fiercely in late 2021, hitting RM6.78. It then embarked on a powerful bull run, culminating in a historic all-time high peak of RM10.48. [1, 2, 3, 4, 5]
The Premium Erased: The 20% premium (RM6.00) that Khazanah celebrated in 2018 eventually transformed into an approximate 42% discount relative to IHH's peak market value. [1, 2]
Current Standing: As of August 2026, the stock trades robustly around RM8.20 to RM8.50. This reinforces that the post-2018 structurally higher baseline value completely outpaced Khazanah's disposal price
Exponential Financial Earnings Trend
IHH's financial fundamentals did not just increase; they scaled entirely new heights over the next several years, showing that the "healthcare boom" was even larger than projected:
- Revenue Growth: Group revenue steadily climbed from roughly RM11.5 billion in 2018 to RM24.4 billion in FY24, finally hitting a record RM26.2 billion ($6.62 billion) in FY25. This represented an immense doubling of the top-line business scale. [1, 2]
- EBITDA Expansion: Driven by high inpatient volumes and high-intensity clinical procedures across Malaysia, Singapore, and Turkey, EBITDA expanded heavily to RM5.4 billion in FY24 and RM5.8 billion in FY25. [1, 2, 3]
- Core Profitability: Core net profit (PATMI excluding exceptional items) rose steadily to RM2.3 billion in FY25. This financial strength allowed IHH to comfortably declare higher ordinary dividend payouts (reaching 10.5 sen per share) while simultaneously funding multi-billion ringgit acquisitions, like the mega purchase of Island Hospital Penang. [1, 2, 3]
