Malaysia’s KWAP Aims to Grow More than 25% by 2025

By Nick Hedley

Malaysia’s Retirement Fund Incorporated (KWAP) aims to grow the size of its fund by more than a quarter by 2025, Finance Minister Zafrul Abdul Aziz said in a statement.

While announcing a new three-year strategy for the fund, Zafrul said KWAP intended to have RM200 billion ($45 billion) in assets by 2025, from $35.67 billion at the end of 2021.

“At a time when markets are experiencing unprecedented volatility, I expect KWAP to strengthen its ability to facilitate more catalytic investments that directly benefit the Malaysian economy, continue to grow its fund size and equally important, elevate service levels for pensioners,” he said.

KWAP said in the same statement it planned to invest in digital services, automation and data analytics to enhance its service levels, and will focus on developing the capabilities of its workforce.

The overarching goal is to achieve “stronger and sustainable returns.”

For the 2021 fiscal year, KWAP’s net income reached a record $2.24 billion.

In January, the fund appointed Hazman Hilmi Sallahuddin as its new chief investment officer.

Hazman was previously managing director of Damansara Assets, a wholly owned real-estate subsidiary of Johor Corporation, and was CEO of AMAL by Malaysia Airlines, a wholly owned subsidiary of the Malaysian Aviation Group.

Prior to that, Hazman was with Khazanah Nasional Berhad, where he served in various roles across the organization over 12 years, including as senior vice president of Khazanah Europe Investment.