State investment arm Khazanah Nasional today said it will continue to pursue overseas investment despite failing to acquire a 51 percent stake in Indonesia's PT Bank Permata in its first foray abroad.

"That does not change (the plan to invest abroad)," Khazanah managing director Azman Mokhtar was quoted as saying by the official Bernama news agency at a forum.

Khazanah is in a good growth position and received "very good feedback" from the Indonesian authorities during its pitch for Bank Permata, he said.

"They particularly liked our ideas on (Islamic) banking," he added.

Cash-rich Khazanah teamed up with top bank Malayan Banking and an Indonesian partner to bid for a stake in Indonesia's seventh largest bank but lost out to Standard Chartered Bank and its partner automotive distributor Astra International. The stake was worth 2.77 trillion rupiah (US$305 million).

Malaysia aims to transform Khazanah into an investment giant in Southeast Asia after earlier this year it transferred shares worth billions of dollars in some 30 publicly listed companies held by the Ministry of Finance to Khazanah.

Letting go GLCs

Azman said Khazanah may ease its holdings in some government-linked companies especially utilities such as power firm Tenaga and Telekom Malaysia, and switch to new areas such as the technology and financial industries.

Khazanah might embark on further "capacity building" from early next year, he said.

"But we have to make sure we have the right human capital and other safeguards in place. Otherwise it can be a recipe for losing a lot of money," he added.