(Jan 26): Norway’s US$2.1 trillion (RM8.3 trillion) sovereign wealth fund has to raise its preparedness to handle growing geopolitical risks, a government-appointed advisory panel said. “The political risk to which the fund’s investments are exposed abroad is increasing,” the panel said, pointing out that the size and visibility of the fund further raises such risks. “The fund may ultimately be subject to increased taxation, regulatory intervention and even confiscation.”The report comes after a tumultuous period for the world’s biggest owner of listed equities. That, in turn, led Norwegian policymakers to suspend the ethics council advising the fund, to prevent other sudden divestments. The group is urging policymakers to use scenario-analysis to increase the understanding of political risks, echoing recommendations from another government-appointed panel which in 2022 warned that the fund was likely to face increasingly challenging moral dilemmas.

Source: The Edge Markets January 26, 2026 14:53 UTC