Page 10 - KWAP_Integrated-Report_2023

ENRICHING NAtIoNAL PRoGRESS ENRICHING StAKEHoLDER VALUE ENRICHING SUStAINABLE IMPACt

MESSAGE FROM tHE CHAIRMAN

I am delighted to share with you that KWAP has continued to perform exceptionally well in both financial
terms and the services we provide to our esteemed pensioners. Despite the complexities arising
from the post-pandemic macro environment, which has introduced unprecedented uncertainties into
the global economy, KWAP has achieved remarkable results.

For one, the global economy has They also highlight the concerted This success reflects the effectiveness
grappled with various macroeconomic efforts made by both public of our investment strategies and asset
challenges since the pandemic and private sectors to create an allocation decisions. As a long-term
outbreak. Pervasive global inflationary investment-friendly environment. In pension fund, our focus extends
pressures and consequently tighter alignment with the Ekonomi MADANI beyond single-year performance
international monetary policies framework, Malaysia’s economic as we can adopt a patient capital
both combined to complicate the momentum is poised for further approach. Over a 10-year rolling
investment landscape. Additionally, improvement this year with economic period, our annualised TWRR of 5.1%
geopolitical upheavals also persist, growth projected to be between 4.0% outperformed the benchmark by 313
further heightening uncertainty on and 5.0% as the Government’s pro- basis points. We remain on track to
the global stage. Like most countries, growth and investor-friendly policies achieve our 10-year target growth of
Malaysia was not spared from this continue to take shape and produce 7% TWRR.
difficult environment but nonetheless, solid economic results.
managed to register a respectable KWAP’s Strategic Asset Allocation
economic growth of 3.6% last year. NAVIGAtING GROWtH AND (SAA) is our compass for achieving
PRuDENt MANAGEMENt sustainable long-term risk-adjusted
In 2023, Malaysia achieved a returns. Adhering firmly to our
significant milestone by attracting a Our fiduciary duty remains unwavering robust risk appetite framework, we
staggering RM329.5 billion in approved – to protect and sustainably grow the strategically allocate our investments
investments. This impressive figure retirement fund whilst assisting the across multiple asset classes with
represents a substantial 23.0% Federal government in funding its a strong emphasis on fund growth.
increase compared to the RM267.8 pension liabilities. Our historical efforts Central to this investment strategy
billion of investments secured in the have borne fruit, with the pension fund is our commitment to diversify our
previous year. Notably, Foreign Direct growing from RM41.94 billion in 2007 investments in private markets.
Investment (FDI) played a pivotal role, to an impressive RM169.82 billion as
contributing an impressive 57.2% at end 2023. Looking ahead, KWAP To augment our solid investment
(equivalent to RM188.4 billion) to aspires to achieve an Accumulated performance, we emphasise prudent
the total approved investments. This Adjusted Fund Size of RM200 billion and effective spending. Every
underscores the trust and confidence by 2025, inclusive of cumulative expenditure is aligned with our
that the global business community withdrawals. strategic objectives, contributing to
places in Malaysia as an attractive Despite global uncertainties, KWAP the overall efficiency of our operations
investment destination. at the same time enabling us to
achieved an impressive Time- execute all our initiatives effectively
These figures reflect the resilience of Weighted Rate of Return (TWRR) and fulfil our role as a reputable and
our nation’s economic ecosystem. of 8.2% for the financial year 2023. prudent institutional investor.

8 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) i INtEGRAtED REPoRt 2023