Key Highlights
- RM1.5 billion through Dana Pemacu
- RM1 billion through Dana Iklim+
- RM200 million through Dana Perintis
- Up to RM1 billion towards Malaysia’s semiconductor sector
- RM750 million through Projek Vista Kampus for purpose-built student accommodation across selected local public and private universities
- RM50 million towards UniVC to encourage the commercialisation of university-led research
- RM1,350 minimum monthly pension, increased from RM1,000
KUALA LUMPUR, 9 October 2026 – Kumpulan Wang Persaraan (Diperbadankan) [KWAP] welcomes Budget 2027 and the Government’s continued commitment to realising the Ekonomi MADANI vision. By balancing the immediate needs of the rakyat with the country’s longer-term economic priorities, the Budget sets out measures to sustain Malaysia’s growth momentum, strengthen national competitiveness, and improve the wellbeing of Malaysians.
Under the theme ‘Malaysia MADANI: Menggapai di Langit, Mengakar di Bumi’, Budget 2027, as presented by YAB Dato’ Seri Anwar Ibrahim, Prime Minister and Minister of Finance, highlights the Government’s continued focus on strengthening Malaysia’s economic competitiveness through the development of high-value industries, quality investments, technological innovation, and enhanced productivity.
Alongside these priorities, KWAP also welcomes the Government’s commitment to reducing the fiscal deficit to 3.3% of Gross Domestic Product (GDP) in 2027, from a projected 3.6% in 2026. This target reflects the Government’s continued efforts to strengthen public finances through gradual consolidation, enhance economic resilience, and create greater flexibility to address future challenges.
Dato’ Jay Khairil Jeremy Abdullah, Chief Executive Officer of KWAP, said, “Budget 2027 highlights the important role of long-term domestic capital in catalysing Malaysia’s economic progress. For KWAP, our priority remains to invest the Retirement Fund prudently and generate sustainable long-term returns, while pursuing investment opportunities that complement the Government’s development priorities under Ekonomi MADANI.
“By deploying capital strategically in Malaysia, we aim to support the development of local businesses, strengthen key sectors, and encourage greater private capital participation. Beyond investments, we are contributing to the Government’s broader efforts in improving the rakyat’s wellbeing through the implementation of the revised minimum wage. These are areas where KWAP can contribute meaningfully to nation-building while remaining focused on our responsibilities as a long-term institutional investor.”
KWAP plans to mobilise capital across private markets, strategic sectors, and the domestic capital market, subject to KWAP’s investment processes, risk-return considerations, and market conditions.
This includes RM1.5 billion through Dana Pemacu to strengthen local fund management capabilities, crowd in private capital, and provide Malaysian businesses with greater access to growth-stage financing; RM200 million through Dana Perintis to spur Malaysia’s start-up and innovation ecosystem; and RM1 billion through Dana Iklim+ towards climate-focused investments to facilitate Malaysia’s energy transition.
KWAP intends to allocate up to RM1 billion towards the semiconductor sector, supporting opportunities across the value chain and strengthening Malaysia’s domestic capabilities and industrial competitiveness.
Further to these commitments, KWAP plans to channel RM750 million through Projek Vista Kampus for purpose-built student accommodation across selected local public and private universities to support Malaysia’s higher education infrastructure needs.
To further strengthen Malaysia’s innovation ecosystem, the Government and KWAP will establish the RM50 million UniVC fund to support the commercialisation of university research and encourage greater private capital participation in homegrown innovation.
Budget 2027 also announced an increase in the minimum monthly pension from RM1,000 to RM1,350, benefiting nearly 59,000 pensioners, and recipients of derivative pensions, among others. In addition, special financial assistance of RM750 will be extended to government retirees.
This reaffirms KWAP’s role as a GLIC in mobilising long-term capital to support the nation’s economic priorities, while remaining firmly guided by its mandate under the Retirement Fund Act 2007 [Act 662], fiduciary responsibilities, and commitment to Malaysian pensioners. KWAP will continue to invest with purpose and discipline, delivering sustainable long-term returns while strengthening Malaysia’s investment ecosystem, building domestic capabilities, and contributing the nation’s long-term economic growth.
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About Kumpulan Wang Persaraan (Diperbadankan)
Kumpulan Wang Persaraan (Diperbadankan) [KWAP] or the Retirement Fund (Incorporated) was established on 1st March 2007 under the Retirement Fund Act 2007 (Act 662) replacing the repealed Pensions Trust Fund Act 1991 (Act 454).
KWAP manages contributions from the Federal Government and relevant agencies made into the Retirement Fund [Fund] to obtain optimum returns on its investments through sound management and investment of the Fund in equity, fixed income securities, money market instruments, and other forms of investments as permitted under the Retirement Fund Act 2007 (Act 662). The Fund shall be applied towards assisting the Federal Government in funding its pension duties. In 2015, KWAP was officially appointed as an agent of the Federal Government for the purpose of payment of pension, gratuity, and other benefits granted under any written law from the Consolidated Fund as agreed between the Federal Government and KWAP.
Visit www.kwap.gov.my for more information.
Issued by Kumpulan Wang Persaraan (Diperbadankan) [KWAP]
