KUALA LUMPUR, August 12, 2021 – Kumpulan Wang Persaraan (Diperbadankan) [KWAP] is fully supportive of the Government’s Perkukuh Pelaburan Rakyat (PERKUKUH) initiative as a vital step in reforming the ecosytem for Government-Linked Investment Companies (GLICs) and Sovereign Wealth Funds (SWFs). PERKUKUH aims to future-proof Malaysian GLICs with a view to strengtehening Goverment-Linked Companies (GLCs). It also provides greater clarity for the rules undertaken by SWFs which will include KWAP as well.
PERKUKUH will ensure SWFs have a sharpened focus on their mandate to drive catalytic investments in new growth sectors with a reinforced governance framework. In addition, this major initiative by the Government will put in place enhanced fiscal discipline across different time horizons, while at the same time ensuring that SWFs act as custodians of strategic national assets. More importantly, PERKUKUH will ensure enhanced risk adjusted returns, which enables KWAP to focus on its role to ensure sustainability both for the medium term and the long term.
NIk Amlizan Mohamed, Chief Executive Officer of KWAP said, “KWAP was set up as part of a long-term solution for the nation’s pension ecosystem needs. We are please to be part of the PERKUKUH intiative, which will strengthen our role and accelerate our ability to provide optimum returns that are at the same time sustainable, as we build a more robust pension fund structure through our ongoing public pension reform programme.
Our Strategic Asset Allocation (SAA) framework has allowed us to successfully maintain a well-balanced and diversified portfolio of investments. Moving Forward, as part of a SWF superfund, we will be able to benefit from the synergies and economies of scale created by the initiative.”
“With the new and refined mandate in place, we are optimistic that it dovetails into our core aspirations of resilience, sustainability, and governance. PERKUKUH will spur job creation, business opportunities, and catalytic investing especially in high potential growth sectors. Equally important, KWAP’s involvement in these sectors and investments will also support and safeguard national interest with a view to multiplying the nation’s wealth.”
“The launch of PERKUKUH is especially timely given the impact of the pandemic and the accelerated need to increase resilience and sustainability. Based on the findings of a pension scheme study KWAP had conducted to grow with longer life expectancy. As such, the need for a sustainable fund is paramount to ensure the regulatory requirements for the annual pension pay-outs are met. At this current juncture, PERKUKUH is a pertinent move by the Government to ensure Malaysia’s pension ecosystem is well equipped in addressing both the growing pension liabilities and the inflationary pressures of the economy. Looking ahead, while we expect the headwinds to persist, we look to continue strengthening the organisation and improving our capabilities to benefit current and future Malaysian pensioners, as we fulfil the Government’s goal of the lifting the socioeconomic status of all Malaysians.” concluded Nik Amlizan.
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 financing its pension duties. In 2015, KWAP was officially appointed as an agent of the Federal Government for the purpose of pension payment, gratuity, or other benefits granted under any written law from the Consolidated Fund as agreed between the Federal Government and KWAP.
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