PETALING JAYA: The Dewan Rakyat passes the National Trust Fund (KWAN) Bill 2026 to secure intergenerational savings and preserve long-term wealth for future generations of Malaysians.
The Finance Ministry in a statement on Friday (July 17) said that the legislation overhauls the 1988 framework to establish a sustainable financial reserve for present and future citizens.
It said that a new statutory body, Kumpulan Wang Amanah Negara (Incorporated), will manage the fund. Bank Negara Malaysia will continue managing the fund during the transition period. The fund stood at RM22.43bil at the end of 2024.
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New legally binding rules mandate minimum contributions. The Federal Government will be required to contribute at least 0.1% of its projected annual revenue, in addition to 2% of Petronas dividends received by the government and 2% of export duties from depleting natural resources after deductions for state governments.
The prescribed rates are minimum contributions and may be increased at any time.
To protect the core wealth for the future, annual withdrawals are capped at 50% of the expected long-term real rate of return. Higher withdrawals require the approval of the Dewan Rakyat.
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Furthermore, spending is strictly restricted to education, healthcare, and climate change initiatives.
Investments will be made prudently across permitted asset classes based on a Strategic Asset Allocation approved by the Finance Minister.
Finance Minister II Datuk Seri Amir Hamzah Azizan stated that current resources are a trust held for future generations.
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"Resources that we enjoy today do not belong to us alone. We hold them in trust for future generations. Through this Bill, the Government is strengthening KWAN as an intergenerational savings fund by ensuring more consistent sources of contributions, more disciplined use and stronger governance.
"This will allow more of the nation's wealth to be preserved and passed on to future generations of Malaysians," he said.
The bill will next be tabled in the Dewan Negara in October.
