Retirement fund set to hit RM500bil in 2050


  • Nation
  • Tuesday, 06 Jun 2017

KUALA LUMPUR: Retirement Fund Inc (KWAP) is expected to reach RM500bil in 2050, based on a growth of between 8% and 10% annually, said the Prime Minister.

“I believe this projection will be achieved, God willing,” said Datuk Seri Najib Tun Razak in his speech at KWAP’s 10th anniversary celebration yesterday.

Since KWAP was set up, Najib said it had recorded a remarkable performance, with the fund growing by 200% from RM42bil in 2007 to RM125bil as of December last year.

“Out of the RM125bil, RM53.6bil is in returns of investment (ROI), which will be used to cater to pension liabilities.

“This is a contribution by KWAP to the country and retirees,” he said, adding that it had achieved an average gross ROI of 6.5% over the past decade.

Despite recent global economic challenges, Najib said he believed that KWAP would continue to show positive and consistent financial performance.

Last year, KWAP registered a gross income of RM6.67bil, higher than the previous year’s RM6.24bil.

Previously set up as Kumpulan Wang Amanah Pencen (KWAP) in 1991, the pension fund operated with RM500mil in funds and grew to RM42bil when it was incorporated in 2007.

KWAP is the second largest pension fund in the country with investments in other countries such as Australia, Germany and Britain.

Suggesting that KWAP look into wellness investment, Najib said a United Nations study showed that Malaysia would become an ageing nation in 2030, with more than 15% of its population aged above 60 by then.

This could present critical challenges economically and socially, as seen in some countries such as Japan where the cost of public health had escalated and the productivity rate had dropped, said Najib.

The Prime Minister also launched the MyPesara app for pensioners and future retirees to keep track of their pension status, payment and others.

KWAP chief executive officer Datuk Wan Kamaruzaman Wan Ahmad said it might be new but its responsibilities were wide, covering 1.6 million civil servants and 700,000 pensioners.

“We cannot afford to slack. The stakes are very high,” he added.

Wan Kamaruzaman said that from the beginning, KWAP had achieved an annual growth of 11.4%, which was a good performance, especially given the recent uncertainties in local and international markets.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

News , bureaus

   

Next In Nation

Serious efforts undertaken to preserve Tasik Chini, says Pahang Forestry Dept
Sabah NGO gets marine conservation cryptocurrency as funding from US company for turtle hatchery, beach cleanup initiative
Covid-19: Taxi, e-hailing drivers to be extra careful, follow strict SOPs
Covid-19: Symptomatic caregivers urged not to accompany family members to hospital after cluster outbreak in Temerloh hospital
Restaurant association Presma wants automatic moratorium, rent relief following lockdown extension
Dads to feel the love on Father's Day despite lockdown
Permission for floral businesses to operate brings relief to owners, operators
Ismail Sabri: Govt studying possibility of relaxing SOP if Covid-19 cases drop below 4, 000
Health Minister: Malaysian researchers developing two Covid-19 vaccines
Covid-19: 5,304 new cases bring total to 657,508

Stories You'll Enjoy


Vouchers