Source of publication : Daily Express (East Malaysia)
Date : 16 July 2010
Kuala Lumpur: The Retirement Fund Incorporated (KWAP)'s fund size increased by 27.9 per cent or RM13.4 billion to RM61.5 billion in 2009 from RM48.08 billion in 2007, said Second Finance Minister, Datuk Seri Ahmad Husni Hanadzlah.
He said a strong income performance coupled with steady contributions from the Federal Government, statutory bodies, local authorities and agencies have significantly boosted the asset size.
KWAP also achieved a net income of RM5.70 billion translated into net return on investment of 10.4 per cent for the financial year ended December 31, 2009 compared to RM560.0 million in 2008, Ahmad Husni said in his keynote address announcing KWAP 2009 financial results and launch of a new web portal, here Thursday.
Out of the RM5.70 billion, RM3.24 billion was gross investment income, he said, adding that improved sentiments in the domestic equity market towards end of last year allowed KWAP to make a write-back of diminution in value allowances for equity investment amounting to RM2.48 billion.
"As a guardian of trust, KWAP is obliged to maintain the highest levels of good governance. The need for disclosure is important as it promotes transperancy and accountability," he said.
Meanwhile, KWAP's Chief Executive Officer, Datuk Azian Mohd Noh said KWAP's fund size is targeted to grow over RM70 billion by end of the year.
As at June 2010, she said KWAP's fund stood at RM66 billion.
Azian said contributions from the government, statutory body and local authorities will contribute to the growth of the fund size.
KWAP, which was incorporated on March 1, 2007, was established under the Retirement Fund Act 2007 replacing the repealed Pensions Trust Fund Act 1991.
With the incorporation of KWAP, all powers, functions, activities, assets and liabilities of the Pensions Trust Fund were taken over in totality by KWAP.
The objective of KWAP is to manage the fund established under Section 13 of the Retirement Fund Act 2007 towards achieving optimum returns on its investments.
Meanwhile, when asked on the speculation that business tycoon, Tan Sri Syed Mokhtar Al-Bukhary is eyeing to buy PLUS Highway, Husni said he had no information.-Bernama