KUALA LUMPUR: Retirement Fund (Incorporated) – KWAP – has allocated RM6 billion for private capital investment under Dana Pemacu.
KWAP will allocate RM3 billion for syariah-compliant investments, making up 50% of Dana Pemacu’s total capital commitment of RM6 billion.
Dana Pemacu will be a Malaysia-focused private equity investment strategy, targeting key economic sectors including food security, education, silver economy and healthcare, energy transition, digital economy, financial inclusion, and other impact-related critical themes under the Economy Madani framework.
Dana Pemacu will be executed through Separately Managed Account (SMA) funds in partnership between local talents and top international investment managers across three different asset classes – private equity, infrastructure and real estate.
Minister of Finance II Datuk Seri Amir Hamzah Azizan, who launched Dana Pemacu, said it is in line with the broader reform by the government to optimise government-linked investment company institutional funds to spur investments into high-growth Malaysian companies, contributing to initiatives which raise the ceiling under the Economy Madani framework.
“Dana Pemacu’s approach of partnership with domestic and international investment managers will help strengthen Malaysia’s private markets ecosystem,” he explained.
The RM6 billion capital commitment will be invested via conventional and syariah-compliant SMAs, with 50% to be syariah-focused, unlocking the potential of Islamic equity capital in creating a greater impact in syariah-compliant investment and enhancing the overall private markets, as well as offering unique opportunities for ethical and socially responsible investing.
KWAP CEO Datuk Nik Amlizan Mohamed said the fund believes Dana Pemacu is instrumental for the growth and progress of the nation.
She also said that the plan is to deploy this investment through the creation of partnership models between local talents and international fund managers, which will serve to catalyse the private market investment ecosystem in Malaysia.
“Furthermore, this initiative will bring global best practices and expertise to the local market as well as driving knowledge-transfer and industry network – enhancing local talents,” she added.
Nik Amlizan said KWAP aspires to support more local companies to scale domestically and internationally through both conventional and syariah-compliant channels through this newly launched capital investment, ultimately strengthening financial markets and enhancing local talent development in Malaysia.
“Through Dana Pemacu we aim to support Malaysia’s pursuit of transforming the country’s industrial sector to be more competitive, sustainable, and inclusive under the New Industrial Master Plan 2030 of the Madani Economy, through financing projects related to private equity, infrastructure, and real estate sectors,” she added.
With Dana Pemacu as an investment strategy, KWAP said it continues to strive for optimal returns for the fund to assist the government in financing its pension liabilities
