KUALA LUMPUR, 28 May 2024 – At the Global Forum on Islamic Economics and Finance, YAB Prime Minister Datuk Seri Anwar Ibrahim announced today that Kumpulan Wang Persaraan (Diperbadankan) [KWAP] will invest RM3 billion in Shariah compliant investments, making up 50% of the total Dana Pemacu capital commitment of RM6 billion. Dana Pemacu will be a Malaysia-focused private equity investment strategy, targeting key economic sectors including food security, education, silver economy and healthcare, energy transition, digital economy, financial inclusion, and other impact-related critical themes under the Ekonomi MADANI framework.
Dana Pemacu will be executed through Separately Managed Account (SMA) funds in partnership between local talents and top international investment managers across three different asset classes: Private Equity, Infrastructure, and Real Estate.
“The launch of Dana Pemacu by KWAP is in line with the broader reform by the Government to optimise GLIC institutional funds to spur investments into high growth Malaysian companies, contributing to initiatives which Raise the Ceiling under the Economy MADANI framework. Dana Pemacu’s approach of partnership with domestic and international investment managers will help strengthen Malaysia’s private markets ecosystem,” explained YB Minister of Finance II Datuk Seri Amir Hamzah Azizan, who officiated the launch of Dana Pemacu.
The RM6 billion capital commitment will be invested via conventional and Shariah-compliant SMAs, with 50% to be Shariah-focused, unlocking the potential of Islamic equity capital in creating a greater impact in Shariah-compliant investment and enhancing the overall private markets, as well as offering unique opportunities for ethical and socially responsible investing。
Datuk Hajah Nik Amlizan Mohamed, Chief Executive Officer of KWAP said, “We believe that Dana Pemacu is instrumental for the growth and progress of the nation. Our plan is to deploy this investment through the creation of partnership models between local talents and international fund managers, which will serve to catalyse the private market investment ecosystem in Malaysia. Furthermore, this initiative will bring global best practices and expertise to the local market as well as driving knowledge-transfer and industry network – enhancing local talents.”
“Through this newly launched capital investment, we aspire to support more local companies to scale domestically and internationally through both conventional and Shariah-compliant channels, ultimately strengthening financial markets and enhancing local talent development in Malaysia.”
She added, “Through Dana Pemacu we aim to support Malaysia’s pursuit of transforming the country’s industrial sector to be more competitive, sustainable, and inclusive under the NIMP 2030 plan of the MADANI Economy, through financing projects related to private equity, infrastructure, and real estate sectors.”
With Dana Pemacu as an investment strategy, KWAP continues to strive for optimal returns for the Fund to assist the Federal Government in financing its pension liabilities.
For more information about KWAP, please visit www.kwap.gov.my.
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About Kumpulan Wang Persaraan (Diperbadankan)
Kumpulan Wang Persaraan (Diperbadankan) [KWAP] or the Retirement Fund (Incorporated) was established on 1st March 2007 under the Retirement Fund Act 2007 (Act 662) replacing the repealed Pensions Trust Fund Act 1991 (Act 454).
KWAP manages contributions from the Federal Government and relevant agencies made into the Retirement Fund [Fund] to obtain optimum returns on its investments through sound management and investment of the Fund in equity, fixed income securities, money market instruments, and other forms of investments as permitted under the Retirement Fund Act 2007 (Act 662). The Fund shall be applied towards assisting the Federal Government in funding its pension duties. In 2015, KWAP was officially appointed as an agent of the Federal Government for the purpose of payment of pension, gratuity, and other benefits granted under any written law from the Consolidated Fund as agreed between the Federal Government and KWAP.
Visit www.kwap.gov.my for more information.
For media enquiries, please contact:
Amirah Kamarulzaman
Contact Number: +603-2174 8000, ext 8669
E-mail: nurulamirah.k@kwap.gov.my
