KWAP chief executive officer Datuk Nik Amlizan Mohamed.
PETALING JAYA: The Retirement Fund Inc, or KWAP, which saw its fund size grow 9% or RM15.8bil to RM185.6bil in 2024, remains focused on navigating an increasingly complex global environment through a data-driven approach, robust risk management and a diversified portfolio.
In a statement, the statutory body which manages the pension scheme for Malaysia’s civil servants said this strategy enables the fund to capitalise on opportunities while mitigating risks, ensuring long-term resilience.
Yesterday, KWAP reported its highest-ever investment income of RM18bil in 2024, delivering a total return of 12% – its best performance since inception.
KWAP said domestic investments generated returns of 12.9%.
Its international portfolio, meanwhile, delivered returns of 9%.
These results stem from public equity which generated a total return of 21.9%, with domestic equity attaining 23.2% and international equity achieving 16.9%.
While its fund grew by 9.3% in 2024 –adding RM15.8bil to reach RM185.6bil –KWAP said its gross increase was RM20.8bil before a RM5bil withdrawal to help finance the government’s pension liabilities.
The portfolio’s asset allocation as of Dec 31, 2024 was 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 remaining balance held in cash management for liquidity purposes.
Overall, 74.6% of the portfolio was invested domestically, while 25.4% was allocated internationally.
“This asset allocation strategy has enabled the fund to optimise its investment returns amidst varying market conditions,” it noted.
Since its establishment in 2007, KWAP’s fund size has quadrupled, growing at an average rate of 9.1% per annum.
In the realm of retirement services, KWAP served over 810,000 pension recipients nationwide as of Dec 31, 2024.
This was a 2.4% increase, adding more than 19,000 new recipients compared to 2023.
The fund maintained an 99.8% service level agreement performance score, well above the 95% threshold.
“KWAP also enhanced its outreach to pensioners through initiatives such as Jelajah MyPesara, which engaged over 8,000 participants in 40 locations, and the Karnival MyPesara, which attracted more than 20,000 attendees in Johor Baru,” it said.
Under its GEAR-uP initiative and in collaboration with other government-linked companies, KWAP said it continued to invest in priority sectors such as data centres and sustainable energy.
“KWAP also strengthened its environmental, social and governance (ESG) practices to align with evolving global trends, embedding responsible investment principles across its portfolio,” it said.
Additionally, through collaborations, KWAP provided disaster relief to flood-affected communities in Kelantan and Terengganu, with essential items worth RM350,000.
Looking ahead, KWAP said it remains committed to invest up to RM40bil over the next five years in the domestic private markets under the GEAR-uP programme spearheaded by the Finance Ministry in collaboration with other government-linked investment companies or GLICs to help catalyse growth in key economic sectors in Malaysia.
It said the fund will also introduce initiatives to address the evolving needs of Malaysian pensioners, including “promoting entrepreneurship in the silver economy, improving healthcare access, fostering digital literacy and enhancing overall quality of life.”
“As Malaysia progresses towards pension reform, KWAP aims to play a key role in shaping a more resilient, inclusive and adaptable pension system,” it said.
“By working closely with policymakers and stakeholders, KWAP is dedicated to fostering financial sustainability and enhancing the well-being of Malaysian pensioners.”
Its chief executive officer Datuk Nik Amlizan Mohamed said KWAP’s record performance in 2024 reflects 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 noted.
Meanwhile, its chairman Datuk Johan Mahmood Merican said KWAP’s “commendable” performance in 2024 reflected the strength of its strategies and the dedication of its team.
“Achieving our best results to date highlights our ongoing efforts to support the long-term financial sustainability of the pension ecosystem,” he said.
“We are confident that our continued focus on strategic investments and sustainability will further strengthen KWAP’s contributions to Malaysia’s pension ecosystem for generations to come.”
