KUALA LUMPUR: Kumpulan Wang Persaraan (Diperbadankan) (KWAP), achieved a historic milestone in its unaudited results for the financial year ended Dec 31, 2024 (FY2024).
KWAP’s fund size grew by RM15.8 billion to RM185.6 billion, reflecting a 9.3% increase from RM169.8 billion in 2023.
Prior to accounting for withdrawals of RM5 billion to partially finance the Government’s pension duties, the gross increase of RM20.8 billion year-on-year highlights the continued success of KWAP’s disciplined investment strategy and its focus on sustainable long-term growth.
Since its establishment in 2007, KWAP’s fund size has quadrupled, with an average growth of 9.1% per annum.
KWAP recorded its highest-ever investment income of RM18.0 billion in 2024, delivering total returns of 12.0%. Domestic investments generated returns of 12.9%, while the international portfolio delivered returns of 9.0%. 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%.
The fund’s asset allocation strategy remains diversified and resilient, with 74.6% of its portfolio invested domestically and 25.4% internationally. As of Dec 31, 2024, the portfolio was allocated as follows: 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 balance in cash management for liquidity purposes. This asset allocation strategy has enabled the fund to optimise its investment returns amidst varying market conditions.
KWAP CEO, Datuk Hajah Nik Amlizan Mohamed said, “KWAP’s exceptional performance in 2024 reflects our 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.”
KWAP chairman, Datuk Johan Mahmood Merican also expressed his confidence in KWAP, stating - “KWAP’s commendable performance in 2024 reflects the strength of our strategies and the dedication of our team. Achieving our best results to date highlights our ongoing efforts to support the long-term financial sustainability of the pension ecosystem. 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.”
Other Notable Achievements for 2024
In terms of retirement services, KWAP served more than 810,000 pension recipients throughout Malaysia as of Dec 31, 2024. This represents a 2.4% increase, or more than 19,000 additional pension recipients compared to 2023. KWAP maintained a 99.8% Service Level Agreement (SLA) 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 Bahru.
In 2024, KWAP continued supporting the Government’s efforts to drive future-proof economic growth through investments in priority sectors such as data centres and sustainable energy under its GEAR-uP initiative. KWAP also strengthened its environmental, social, and governance (ESG) practices to align with evolving global trends, embedding responsible investment principles across its portfolio.
Through collaborations with the GLC Demi Rakyat & Negara (GDRN) and MyFundAction, KWAP extended disaster relief efforts to flood-affected communities in Kelantan and Terengganu, providing essential items worth RM350,000 under the MyPesara Prihatin initiative.
Looking Ahead
KWAP remains focused on navigating an increasingly complex global environment through a data-driven approach, robust risk management, and a diversified portfolio. This strategy enables the fund to capitalise on opportunities while mitigating risks, ensuring long-term resilience.
As Malaysia progresses towards pension reform, KWAP aims to play a key role in shaping a more resilient, inclusive, and adaptable pension system. By working closely with policymakers and stakeholders, KWAP is dedicated to fostering financial sustainability and enhancing the well-being of Malaysian pensioners.
Under the GEAR-uP programme spearheaded by MOF, KWAP remains committed to invest up to RM40 billion over the next 5 years in the domestic private markets, in collaboration with other GLICs to help catalyse growth in key economic sectors in Malaysia.
At the same time, KWAP continues to introduce initiatives that address the evolving needs of Malaysian pensioners beyond financial well-being. These efforts include promoting entrepreneurship in the silver economy, improving healthcare access, fostering digital literacy, and supporting overall well-being to help pensioners lead independent and fulfilling lives.
