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ReAlising A FulFilling FutuRe Annual Report 2022 9

Investments were prudently focused on companies with on the importance of observing KWAP’s related anti-
strong fundamentals such as those with strong balance corruption policies and practices. On the same note, KWAP
sheets and solid cash-flow positions, while capitalising on had collaborated with Khazanah Nasional, Kumpulan
prevailing market trends by making tactical calls to take Wang Simpanan Pekerja, Lembaga Tabung Angkatan
advantage of sudden market movements and opportunities Tentera and Permodalan Nasional Berhad in organising
that may arise in the short-term. the inaugural Government-Linked Investment Companies
(GLICs) Integrity Event 2022 with the objective to uphold
As a whole, KWAP’s domestic investments, which make the national integrity agenda among the GLICs.
up 81% of KWAP’s total investment assets, saw a better
return in comparison with global market indices. ENHANCING GOVERNANCE & RISK MANAGEMENT
FORTIFYING INTEGRITY Progress was also made in uplifting the efficacy of
KWAP’s risk and governance frameworks. The Enterprise
Integrity is critical in KWAP’s operations as the custodian Risk Management Framework was upgraded from the
of Malaysia’s biggest pension fund. As an organisation Committee of Sponsoring Organisations of the Treadway
certified with ISO 37001 Anti-Bribery Management Commission (COSO) 2004 to ISO31000:2018 standards
System, or ABMS, since 2021, the Board ensures that during the year. A comprehensive Corporate Governance
robust standards of corporate governance and the highest Framework, was also consolidated and approved later in
principles of integrity, transparency and accountability the year. This was accompanied by a review of the many
anchor its operations. We successfully completed the first committees in KWAP and streamlined into a compact
ABMS Surveillance Audit last year with no issuance of and more comprehensible framework with only one
Non-Conformance Report.
single authority responsible for governing the creation or
KWAP achieved 56% completion rate, in which 32 out of disbandment of any committees. The Investment Risk
57 initiatives of the Organisational Anti-Corruption Plan Policies and Guidelines were also streamlined into a
(OACP) have been completed. consolidated document for better comprehension and
efficacy.
KWAP had also completed its first organisation-wide
integrity assessment by using Integrity Assessment Tool As part of our continuous review and improvement of
(IAT), introduced by the Malaysian Institute of Integrity (IIM). oversight duties, talks were organised for our Board and
According to the IIM scoring result, KWAP achieved a total Investment Panel members on the ‘Fiduciary Duties of the
score of 84.17% from the survey, putting it at the high level Board and Investment Panel’ and on ‘Environmental, Social
of an organisation “that has best practices in ethics and & Governance: Improving the Quality of ESG Data and
integrity.” Its Impact’.

As part of KWAP’s Business Associates Outreach It was a busy year on the governance front. As at end
Programme, 2022 also presented the first-ever physical December 2022, a total of 130 Board, Investment Panel,
session for KWAP’s broker fund managers and vendors to Board Committees, Executive Committee and Investment
raise their awareness of corruption and their understanding Committee meetings were organised.