KUALA LUMPUR, 16 OCTOBER 2025 – Kumpulan Wang Persaraan (Diperbadankan) [KWAP] has officially launched Dana Iklim⁺, Malaysia’s first climate-focused investment fund, marking a significant step forward in advancing the nation’s sustainable finance agenda.

With a target deployment of RM2 billion, the fund aims to accelerate Malaysia’s transition to Net Zero by channelling institutional capital towards climate-focused investments across infrastructure, private equity, real estate, and nature-based solutions. Dana Iklim⁺ seeks to deliver both sustainable financial returns and measurable environmental outcomes, supporting the country’s transition to a low-carbon, climate-resilient economy.

As KWAP’s third catalytic investment programme, Dana Iklim⁺ builds on the foundation laid by Dana Pemacu and Dana Perintis, both of which were launched to catalyse Malaysia’s private markets and strengthen the country’s investment ecosystem. Dana Iklim⁺ advances this agenda by introducing a dedicated climate-focused investment strategy, mobilising institutional capital towards measurable decarbonisation and resilience outcomes.

Dana Iklim⁺ was launched by Yang Berhormat Datuk Seri Johari bin Abdul Ghani, Minister of Plantation and Commodities and Acting Minister of Natural Resources and Environmental Sustainability, at the Kuala Lumpur Sustainability Summit (KLSS) 2025. The initiative reflects KWAP’s long-term commitment to achieve a Net Zero investment portfolio by 2050, while expanding its role as a catalyst for sustainable economic growth through climate-focused investments that create lasting value for Malaysia.

Structured as a multi-asset investment strategy, Dana Iklim⁺ prioritises opportunities that drive meaningful climate impact while generating sustainable long-term returns.

Hazman Hilmi Sallahuddin, Chief Investment Officer of KWAP, said the launch of Dana Iklim⁺ reflects the organisation’s commitment to align investment strategy with Malaysia’s long-term climate objectives.

“As a responsible institutional investor, KWAP is taking a significant step forward in advancing the nation’s transition to a low-carbon, climate-resilient economy. Dana Iklim⁺ is an integral part of this effort and demonstrates how institutional capital can be mobilised to drive both environmental impact and sustainable economic growth. Through this fund, we aim to invest in solutions that create lasting value for Malaysia’s future.”

The initiative is guided by KWAP’s impact measurement framework, which measures impact across six dimensions including national alignment, climate resilience, and co-benefits indicators  aligned with the United Nations Sustainable Development Goals (SDGs). The ‘+’ in Dana Iklim⁺ represents these co-benefit indicators, that can have exponential impact from climate-focused investments, reflecting KWAP’s recognition that a credible climate strategy must also address interconnected development goals such as food security, clean water, energy access and inclusive economic growth.

“Dana Iklim⁺ aims to deliver both environmental and financial impact, targeting the mitigation or reduction of up to one million metric tonnes of CO₂e through climate-aligned investments. This initiative reinforces KWAP’s role as a responsible institutional, reflecting its long-term commitment to embedding sustainability into Malaysia’s financial ecosystem,” added Hazman.

Dana Iklim⁺ is strategically aligned with key national frameworks, including the National Energy Transition Roadmap (NETR), Ekonomi MADANI, and the Ministry of Finance’s GEAR-uP initiative, which collectively aim to accelerate private market participation, promote sustainable growth and position Malaysia as a leader in green investment. The fund also supports Malaysia’s broader climate ambitions under the 13^th Malaysia Plan, affirming KWAP’s leadership in driving the nation’s low-carbon transition.

For more information, please visit www.kwap.gov.my.