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FoR betteR PeRFoRmAnce Annual Report 2022 73

Given that Prima Ekuiti’s office is located in the UK, Beyond investments, Prima Ekuiti ensures compliance
the team is able to establish professional relationships and governance are maintained at its highest standards
and connect to top quartile global fund managers and and as a result, the company received the ISO 37001 Anti-
best-in-class assets within the private equity and real Bribery Management System (ABMS) Accreditation after
estate space for investments and research purposes. In an audit from SIRIM-QAS in 2022. In addition, Prima Ekuiti
addition, given KWAP’s various existing assets and fund continues to contribute to future talents of Malaysia where
managers located in the UK and Europe, Prima Ekuiti has the company had conducted a successful internship
been able to connect and manage local assets efficiently programme with 11 interns alongside other various
given the time difference and close proximity. participation in student-led investment programmes.
In 2022, Prima Ekuiti has expanded its scope within Moving forward in 2023, a new corporate blueprint of
investments to include the establishment of a central Prima Ekuiti, which was approved by KWAP Board, is set
dealing desk for KWAP where dealing within equities’ asset to unfold and will entail:
class will be conducted in Malaysia and the UK. Given
the expansion of scope across multiple asset classes, i. A re-introduction of fund management where Prima
Prima Ekuiti initiated new research products including Ekuiti will manage KWAP’s UK/EU Global Equity
a multi-asset research and ESG methodologies, both of portfolio;
which have contributed to actionable investments across ii. An increased number of deal-flows to KWAP’s Private
KWAP’s investment portfolio. As part of the expansion in Equity and Real Estate Department. Prima Ekuiti also
coverage of the UK office, Prima Ekuiti played a pivotal aims to maintain high conversion of these deal flows;
role in KWAP’s first global real estate fund, which was and
one of the largest residential fund managers in Europe. iii. A brand refresh and reorganisation of Prima Ekuiti
to better communicate the changes in services to
KWAP.

2023 INVESTMENT OUTLOOK
Looking ahead to 2023, high interest rates are expected to continue dragging global growth. The degree of inflation
moderation will determine the path of global growth trajectory. A persistently elevated inflation will deter central
banks from pressing the brake on the path of interest rate hikes which may bring about the risk of recession. Thus,
financial markets will likely be volatile for the year as the tussle between the risk of recession and persistent inflation
continues.
Malaysia’s economy is projected to moderate in 2023 amid the global economic slowdown as well as the impact
of tighter financial conditions arising from cumulative interest rate hikes by global central banks over the past year.
Private consumption will remain the key driver for growth despite the expected normalisation as the release of pent-
up demand dissipates and the impact of the OPR hikes on the economy materialises. Meanwhile, continued tourism
recovery and implementation of multi-year projects will also provide some support to domestic growth in 2023.

We are cautiously optimistic on global and domestic financial markets in view of moderating economic growth
expectation in 2023. Given such scenario, KWAP remains cognisant of protecting the value of its international
investments. It continues to minimise interest rate and currency risks through various hedging instruments.

Moving forward, KWAP will stay focused on investing in companies with strong fundamentals such as those with
strong balance sheets and solid cash-flow positions as well as companies which have good governance and ESG
practices. KWAP’s investment approach is not only strategic, but also reflects its unwavering commitment to
achieve sustainable and inclusive economic growth for Malaysia.
A more domestic focused approach is being undertaken and this will prioritise investment opportunities that
specifically cater to the renewable energy, digital economy, silver economy, food security and education in Malaysia.
By prioritising these key sectors, KWAP is determined to play an influential stewardship role in Malaysia’s financial
and capital market ecosystem.