The Government Pension Fund Global, managed by Norway's central bank, shrank its Malaysian portfolio value to US$2.89 billion as at June 30 from US$4.27 billion at the end of 2025.
Norway wealth fund cuts Malaysia exposure by a third as bond holdings plunge
KUALA LUMPUR (Aug 18): Norway's sovereign wealth fund has reduced its holdings of Malaysian stocks and bonds, cutting its total investments by about a third in the first half of 2026.
The fund, formally known as the Government Pension Fund Global (GPFG), shrank its Malaysian portfolio value to US$2.89 billion (RM11.7 billion) as at June 30 from US$4.27 billion at the end of 2025, according to The Edge's analysis of latest disclosures by its manager Norges Bank Investment Management.
The fund trimmed its Malaysian government bonds to US$226.02 million from US$1.44 billion at the end of 2025, while bonds issued by national oil company PETRONAS were no longer on its books.
The sharp decline of GPFG’s Malaysian fixed-income holdings coincided with the ringgit’s appreciation in the first six months of 2026, and followed aggressive bond-buying in 2025.
GPFG is the world's largest sovereign wealth fund and is managed by Norway's central bank to preserve and grow wealth generated from the country's oil and gas resources for future generations. The fund owns a small stake in more than 10,000 companies across most countries and industries.
In Malaysia, GPFG held 174 Malaysian-listed companies worth US$2.66 billion at end-June, compared with 200 counters valued at US$2.80 billion at the end of 2025.
The fund dumped 43 stocks and added 17 new counters during the first half.
Among notable exits were digital services company Zetrix AI Bhd (KL:ZETRIX), as its share price declined even as broader technology stocks rallied, and Aquaria KLCC operator Aquawalk Group Bhd (KL:AQUAWALK) whose shares have been struggling since listing in November 2025.
GPFG offloaded companies that had reported weak or unexpectedly poor earnings. Among them was SKP Resources Bhd (KL:SKPRES), after the electronics manufacturing services provider slipped into its first-ever quarterly loss amid geopolitical tensions in the Middle East and US tariff measures.
The fund also sold Astro Malaysia Holdings Bhd (KL:ASTRO), facing persistent headwinds as the pay-television operator tries everything, from offering discounts to cutting content costs, and from digitising its offerings to attracting new subscribers and reducing its workforce to save expenses.
Technology exposure rises
The fund, meanwhile, expanded its portfolio of technology stocks that accounted for about 15% of its Malaysian equity portfolio at end-June, compared to just 8.5% at the end of 2025.
Chip designer SkyeChip Bhd (KL:SKYECHIP) was added to its portfolio and holdings in several existing firms were raised, including Unisem (M) Bhd (KL:UNISEM), Inari Amertron Bhd (KL:INARI), UWC Bhd (KL:UWC) and computer hardware distributor VSTECS Bhd (KL:VSTECS).
GPFG is raising its weightage of Malaysian technology stocks at a time when Malaysia is attracting domestic and foreign investments into semiconductors, digital infrastructure and artificial intelligence.
The first half of 2026 also saw GPFG taking positions in new listings, including MTT Shipping and Logistics Bhd (KL:MTTSL), Empire Premium Food Bhd (KL:EMPIRE), which operates the Empire Sushi chain, and private hospital operator Sunway Healthcare Holdings Bhd (KL:SUNMED).
Financial stocks were still GPFG's largest Malaysian equity exposure by far, accounting for more than one third of its portfolio at end-June, followed by industrials at about 18%.
Overall, Malaysian investments represent just 0.1% of GPFG’s entire global portfolio worth US$2.29 trillion at the end of June.