Page 25 - KWAP_AR2022

FoR betteR PeoPle Annual Report 2022 23

AT A GLANCE IN 2022 Meanwhile, for the financial year ended 31 December
2022, KWAP posted a Net Income of RM0.26 billion and
2022 was a challenging year as the world went through a Total Comprehensive Loss of RM0.56 billion.
the aftermath of the COVID-19 pandemic. The tightening
monetary policy done via the interest rate increases The Net Income translated to the Accounting Rate of
across emerging markets, the ripple effects of the Return (ARR) of 0.17% in FY2022, as compared to 6.39%
Russia-Ukraine war and the China’s zero-COVID strategy posted in FY2021.
had further exacerbated the repercussions.

As at 31 December 2022, KWAP fund size stood at Accounting Rate of Return (ARR) (%)
RM158.10 billion post RM17.50 billion withdrawal, as
compared to RM159.03 billion as at 31 December 2021. 0.80 4.67 5.88 6.39 0.17

In fulfilling our duty in assisting the Federal Government
to fund the pension liability and in accordance to the
Retirement Fund Act 2007 (Act 662), RM3 billion was
withdrawn from the Fund by the Federal Government in
2022. Excluding the said withdrawal, the fund size as at
31 December 2022 would have been RM161.10 billion. 2018 2019 2020 2021 2022
GROSS INVESTMENT INCOME OPERATING EXPENDITURE

KWAP recorded a Gross Investment Income of RM7.01 KWAP’s Operating Expenditure (OPEx) increased
billion, 10.7% higher than RM6.33 billion in FY2021, by 2.0% to RM0.34 billion (FY2021: RM0.33 billion),
attributable to the higher divestment gain from our translating to a budget utilisation of 86% against the
investment activities. approved budget of RM0.38 billion. The increase was
primarily attributable to the higher Professional Services
Equity investment and fixed income investment portfolios
contributed 52% and 35% of the Gross Investment and Fees, and rise in Staff Costs.
Income, respectively; while both private equity and real
estate investment contributed the remaining 13% of the
Gross Investment Income.

Operating Expenses (RM million)

160 133.58 143.65
140
120
100 79.46 88.53
80 63.66
60 35.07
40 29.00 17.31 20.13
20 16.51 15.30 15.07 3.78 4.72
0
Staff Costs Professional Tax Other Depreciation Rental Property-Related
Service and Expenses Expenses and Expenditure
Fees Amortisation
• FY2021 • FY2022