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ENRICHING PERFORMANCE AND COMMITMENTS ENRICHING ACCOUNTABILITY AND INTEGRITY ENRICHING RESILIENCE AND SUSTAINABLE GROWTH OTHER INFORMATION

KWAP WItHIN MALAYSIA’S PENSION SYStEM

Policy Setting Member Investment Investment Members Benefit
Contribution Policy & Management Administration Payments
Collection Guidelines
Set policy for Manage Set investment Execute Manage Manage
pension or collection of policy and investment members’ financial
provident fund members’ monitor management accounts administration
contributions performance and payment
PENSIONABLE treasury Appointed Agent by the Federal
CIVIL • Financial Administration
SERVICE impact
calculation
• Approve EPU
policies
• Develop
and review
policies
PSD
• Develop
and review
policies
ARMED MINDEF LtAt Veterans Affairs (MINDEF)
FORCES Develop and
review policies • Collection of contribution from armed forces • Communicate with retirees
personnel and the Federal Administration • Benefits calculation
• Calculation of LTAT refund to KWAP • Disbursement of withdrawals
• Communication with active members • Transfer of refunds to KWAP
• Administration of members’ account balance
PRIVAtE EPF
SECtOR Provide
AND NON- policy input
PENSIONABLE
CIVIL SERVICE

Legends: treasury: Treasury, Ministry of Finance MINDEF: Ministry of Defence EPF: Employees Provident Fund
PSD: Public Services Department LtAt: Armed Forces Fund Board

INVEStMENt PHILOSOPHY AND ESG BELIEFS

KWAP believes that alpha opportunities exist as markets are not always efficient. As such, we shall pursue active
strategies in asset classes where it holds strong alpha convictions in and/or in opportunities in which we believe we are
capable of exploiting directly or indirectly. Passive strategies shall be adopted when there is weak conviction that active
management can add value.
In the context of ESg, KWAP shall, where possible, refrain from investing in companies, which may undermine or
compromise our commitment and progress on responsible investing and ESg and/or whose business activities have
reputational risk or adverse impact on KWAP.

KWAP believes that ESg integration is a journey to a sustainable future. We acknowledge that companies may be at
different stages in the journey towards embracing ESg and sustainability. KWAP’s stewardship activities are therefore
primarily aimed at long-term value creation with our investee companies.

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