KWAP chief executive officer Datuk Nik Amlizan Mohamed.
KUALA LUMPUR: The Retirement Fund Inc (KWAP) achieved a historic milestone in its financial year ended Dec 31, 2024 (FY24) results, with its fund size increasing by RM15.8bil to RM185.6bil, marking a 9.3% growth from RM169.8bil in 2023.
In a statement, KWAP said that before accounting for withdrawals of RM5bil to partially finance the Government’s pension duties, the gross year-on-year increase of RM20.8bil highlights the continued success of its disciplined investment strategy and focus on sustainable long-term growth.
Since its establishment in 2007, KWAP’s fund size has quadrupled, with an average growth of 9.1% per annum.
KWAP achieved a record-high investment income of RM18bil in 2024, delivering total returns of 12.0%. Domestic investments generated returns of 12.9%, while the international portfolio returned 9.0%.
It said the gains were driven by public equity, which recorded a total return of 21.9%, with domestic equity at 23.2% and international equity at 16.9%.
The fund’s asset allocation strategy remains diversified and resilient, with 74.6% of its portfolio invested domestically and 25.4% internationally.
As of Dec 31, 2024, the portfolio was allocated with 51.7% in equity, 32.4% in fixed income, 5.4% in private equity, 5.2% in real estate, and 2.2% in infrastructure, with the rest in cash for liquidity. This strategy has helped the fund maximise returns despite market changes.
Chief executive officer Datuk Nik Amlizan Mohamed said KWAP’s exceptional performance in 2024 reflected its disciplined investment approach, underpinned by the resilience of Malaysia’s economy.
“The stable domestic market and supportive policies under the Madani Government were instrumental in strengthening our returns, enabling us to create sustainable long-term value for our stakeholders. Although global uncertainties and geopolitical risks remain, we will stay vigilant, adapting our strategies to mitigate risks and seize emerging opportunities,” she said.
Looking ahead, KWAP remains committed to a data-driven approach, strong risk management, and a diversified portfolio to navigate global challenges, seize opportunities, and ensure long-term resilience.
“As Malaysia progresses towards pension reform, KWAP aims to play a key role in shaping a more resilient, inclusive, and adaptable pension system. By working closely with policymakers and stakeholders, KWAP is dedicated to fostering financial sustainability and enhancing the well-being of Malaysian pensioners.”
Under the GEAR-uP programme spearheaded by MOF, KWAP remains committed to investing up to RM40bil over the next five years in the domestic private markets, in collaboration with other GLICs to help catalyse growth in key economic sectors in Malaysia.
