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ENRICHING tHE FUtURE ENRICHING NAtIoNAL PRoGRESS ENRICHING StAKEHoLDER VALUE ENRICHING SUStAINABLE IMPACt

StAtEMENt ON RISK MANAGEMENt

AND INtERNAL CONtROL (CONtINuED)

Principles on Good Governance (PGG) requirements. We then designed the programme to close
any identified gaps and ensure compliance with the
The Pgg was launched on 15 April 2022 by Ministry timeframe as set by the Pgg (the deadline is by 15 April
of Finance (MOF). It was developed in support of the 2025). As at 31 December 2023, KWAP had completed
initiative to enhance the governance and sustainability 97% of the identified action plans and target to be fully
standards and practices across all government-Linked completed by the fourth quarter 2024.
Investment Companies (gLICs). The Pgg serves
as the single reference on baseline governance and In summary, Risk Management and Compliance provides
sustainability practices that should be adopted by gLICs. the guardrails for KWAP as an organisation to operate,
innovate and strive to meet its strategic objectives.
Our Compliance team had spearheaded the initiative to
identify relevant departments in KWAP to fulfil the Pgg

KEY RISK AND OPPORtuNItIES FOR YEAR 2024
KWAP acknowledges the presence of numerous risks that may impact the global economy and financial markets
in 2024 and beyond. It is, nevertheless a challenging and intricate task to accurately predict the risk outlook and
trajectory for a specific year. Despite the complexity of the task given the uncertain geo-political outlook on the global
economy, some potential risks that may impact KWAP in 2024 and beyond include:

Risk Description Key Actions

The global economy is slowly recovering from Regular internal assessments and external
the COVID-19 pandemic, though its effects are engagements are conducted to evaluate risks
still felt. The pandemic’s long-term impact on from economic or geopolitical factors and their
Economic our lives remains significant. New challenges, potential impact on investments. Continuous
factors and including inflation, rising interest rates, supply monitoring of market developments is
uncertainties chain disruptions, stock market volatility, performed to monitor signs of economic
and changes in trade policies, could affect uncertainties.
the economic outlook for 2023. Additionally,
lingering memories of the pandemic and
potential new variants pose ongoing risks to Key actions are detailed on page 33 to 37 of this
public health and economic recovery. Integrated Report.

Escalating tensions between major global KWAP has continuously enhanced its
powers like the United States, China, and investment processes by integrating ESg
Russia have heightened geopolitical risks, with considerations into all investments and
geopolitical long-term impacts expected beyond 2023. refraining from investing in companies related
risks Regional conflicts in the Middle East, North to weapons manufacturing and other sensitive
Africa, and Africa, along with intensified natural industries. Additionally, KWAP adopts a
disasters, also threaten global economic balanced approach to dynamically assess
stability. global warming has statistically and respond to potential impacts on its
increased the frequency and severity of natural investments.
disasters, potentially leading to more regional Key actions are detailed on page 33 to 37 of this
conflicts and severe natural events. Integrated Report.

126 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) i INtEGRAtED REPoRt 2023