Difficulty: Easy
Correct Answer: Malaysia
Explanation:
Introduction / Context:
Many countries operate sovereign wealth funds or state owned investment holding companies to manage national investments and strategic assets. Khazanah is one such well known entity. This question tests your awareness of which country owns Khazanah as its official investment holding arm.
Given Data / Assumptions:
- Khazanah is a state owned investment holding company.- It acts on behalf of a national government, managing stakes in key companies and strategic sectors.- The options are Singapore, Japan, Mauritius and Malaysia.- Only one country correctly matches Khazanah as its sovereign investment arm.
Concept / Approach:
Khazanah Nasional Berhad is the sovereign wealth fund and investment holding company of the Government of Malaysia. It holds and manages the government's commercial assets and invests in sectors such as infrastructure, telecommunications, healthcare and financial services. While Singapore also has a famous state investor, Temasek Holdings, that is a different institution. Knowing these names helps you match each country to its respective investment arm.
Step-by-Step Solution:
Step 1: Recall the full name Khazanah Nasional and associate it with Malaysia, where the word Nasional reflects national ownership.Step 2: Recognise that Singapore's sovereign investment company is Temasek Holdings, so Khazanah cannot belong to Singapore.Step 3: Note that Japan and Mauritius do not commonly feature Khazanah in discussions of their state investment vehicles.Step 4: Match Khazanah with Malaysia, where it is widely known as the government's strategic investment fund.Step 5: Choose Malaysia as the correct answer from the options.
Verification / Alternative check:
You can verify by recalling that Khazanah has major holdings in Malaysian companies such as national airlines, telecommunication firms and infrastructure projects. Public reports describe Khazanah as a key instrument in Malaysia's economic transformation programmes. Comparing this with Temasek in Singapore and other funds elsewhere confirms that Khazanah is specifically linked with the Malaysian government, not with the other countries listed.
Why Other Options Are Wrong:
Singapore: The main state owned investment company here is Temasek Holdings, not Khazanah.Japan: Japan has various public financial institutions, but Khazanah is not one of them.Mauritius: No major state investment arm called Khazanah is associated with Mauritius; the name clearly points to Malaysia.
Common Pitfalls:
Students sometimes confuse Khazanah with Temasek because both are from Southeast Asia and play similar strategic roles. Others may guess randomly among Asian countries without remembering specific fund names. A good strategy is to pair country names with their flagship sovereign funds: Malaysia with Khazanah, Singapore with Temasek, and so on. This method helps you quickly eliminate incorrect options during exams.
Final Answer:
Khazanah is the state owned investment holding arm of Malaysia.
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