KUALA LUMPUR: The government had only tapped into the National Trust Fund (KWAN) twice since its establishment nearly 40 years ago, including to purchase Covid-19 vaccines, says Deputy Finance Minister Liew Chin Tong.
“After almost 40 years, KWAN’s net assets had grown to RM22.43 bil in 2024. Since its establishment, Petronas has remained the sole contributor to KWAN, with total contributions amounting to RM13.5bil,” he said when tabling the National Trust Fund Bill 2026 for its second reading in the Dewan Rakyat on Thursday (July 16).
Throughout this period, KWAN has only been utilised twice, including RM5bil between 2021 and 2023 to finance the purchase of Covid-19 vaccines, and RM42mil for the Malaysia Wetland Sanctuary Project in 1998. This record reflects the original intention behind the establishment of KWAN as a long-term national savings fund, to be used only when absolutely necessary,” he added.
The Bill was tabled for its first reading on July 14. It seeks to repeal the National Trust Fund Act 1988 and transfer the administration of the fund under the new law.
Under the proposed legislation, KWAN will be administered through the National Trust Fund (Incorporated).
Under the new Bill, the federal government will be required to contribute at least 0.1% of its projected annual revenue to the fund, while 2% of PETRONAS dividends will also be channelled into KWAN.
The federal government must contribute 2% of export duties collected from depleting natural resources such as crude oil, mineral ores and iron ore.
The Bill also limits annual withdrawals from KWAN to 50% of the fund’s expected long-term real investment return for the relevant financial year.
Should the Finance Minister determine that a larger withdrawal is necessary, a motion must first be tabled and approved by the Dewan Rakyat.
The government will transfer the required contributions to the fund at the end of each financial year. State governments may continue to make voluntary contributions from petroleum royalties.
The fund may also receive income from investments, as well as grants, donations, endowments, gifts, contributions and bequests.
Under Clause 24 of the Bill, the fund may only be used for expenditure relating to education, healthcare, and climate change mitigation and adaptation.
