KUALA LUMPUR: The performance of the Retirement Fund (Incorporated) (KWAP) needs to be assessed fairly considering that the retirement fund managed to record a net profit of RM12.9 billion, said Prime Minister Datuk Seri Anwar Ibrahim.
Speaking at the Dewan Negara, he said it would not have been possible without the expertise, commitment and dedication of KWAP's investment panel, management and leadership.
Regarding the investment in eFishery, the Prime Minister said that not only KWAP, but leading investment companies from Singapore such as Temasek, Japanese bank SoftBank, Sequoia Capital, Aqua-Spark, 42XFund based in Abu Dhabi and NorthStar from Indonesia, had also invested in the aquaculture technology startup.
"So I ask my esteemed colleagues to look at the whole picture. Because the profit and growth called the ‘compound annual growth rate’ is more than 8.5 per cent," said Anwar, who is also the Finance Minister.
He said KWAP does not only invest in foreign companies, but also has large investments in local startups. Anwar said that apart from existing investments, KWAP is also involved in the GEAR-uP initiative led by the Ministry of Finance (MOF) together with the National Trust Fund (KWAN), involving funds totalling RM30 billion.
The Prime Minister was replying to a question from Senator Mohd Hasbie Muda regarding the strategy to ensure that the national retirement funds, namely the Employees Provident Fund (EPF) and KWAP, are able to provide the best dividends despite facing global geopolitical uncertainties.
Replying to Mohd Hasbie's additional question on KWAP's projection of fully financing pension liabilities through its investment returns without relying on government funds, Anwar said that so far the profits recorded, despite reaching tens of billions of ringgit, are still not able to cover pension costs in the long term.
"That is why we have also had to face controversy regarding the demands of some parties for funds to be withdrawn more easily," he said.
Replying to a supplementary question from Senator Datuk Abdul Hasim Suleiman on the membership of KWAP's investment committee and whether the majority of it consists of professionals, Anwar said the investment panel is made up entirely of professionals, while its board also comprises representatives of ministries and workers.
"However, I agree with Yang Berhormat, the loss (on the investment in eFishery) should give us a warning, it is not necessarily the approval given by the world's major investment panels, as we saw earlier from Europe, Japan, (for example) that should influence us.
"Of course it gives some consideration because for Softbank, for example investing in the UAE or Europe, of course it gives great consideration but if we look at it, analyse the process, it is an extraordinary incident," said Anwar. - Bernama
