KUALA LUMPUR: Retirement Fund (Incorporated) (KWAP) has launched Dana Iklim+, Malaysia’s first dedicated climate-focused investment fund, with an initial target deployment of RM2 billion to accelerate the country’s transition to a low-carbon and climate-resilient economy.
The fund, launched today at the Kuala Lumpur Sustainability Summit 2025 by Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani, who is also acting Minister of Natural Resources and Environmental Sustainability, marks a milestone in the nation’s sustainable finance agenda.
Dana Iklim+ is structured as a multi-asset investment strategy spanning infrastructure, private equity, real estate and nature-based solutions. It aims to deliver sustainable financial returns while achieving measurable environmental outcomes, with a goal of reducing or mitigating up to one million metric tons of carbon dioxide equivalent through its climate-aligned investments.
“Dana Iklim+ is an integral part of our effort to advance Malaysia’s transition to a low-carbon, climate-resilient economy. As a responsible institutional investor, KWAP is taking a significant step forward in mobilising capital to drive both environmental impact and sustainable economic growth,” said KWAP chief investment officer Hazman Hilmi Sallahuddin.
The initiative is the third catalytic programme by KWAP, following Dana Pemacu and Dana Perintis, which were introduced to strengthen Malaysia’s private market ecosystem. Dana Iklim+ extends this mandate by placing climate action at the forefront of its investment strategy, aligning with national frameworks such as the National Energy Transition Roadmap, Madani Economy and the Ministry of Finance’s GEAR-uP initiative.
Hazman said the “+” in Dana Iklim+ reflects its wider scope beyond carbon reduction, capturing co-benefit indicators such as food security, clean water, energy access and inclusive economic growth. “A credible climate strategy must also address interconnected development goals. Through this fund, we aim to invest in solutions that create lasting value for Malaysia’s future.’
“Dana Iklim+ reflects KWAP’s long-term commitment to embed sustainability into Malaysia’s financial ecosystem,” Hazman said.
“Through this fund, we want to demonstrate that institutional capital can create exponential impact – not only in decarbonisation, but also in building resilience and delivering inclusive economic growth.”
The fund’s impact will be measured across six dimensions, including national alignment, climate resilience, and contributions to the United Nations Sustainable Development Goals. This approach, according to KWAP, ensures that its investments are not only financially viable but also socially inclusive and environmentally sustainable.
Johari, in officiating the launch, underscored the importance of institutional investors playing a catalytic role in financing the green transition. “Malaysia’s path to Net Zero requires strong collaboration between the public and private sectors, and initiatives such as Dana Iklim+ demonstrate how capital markets can be harnessed to deliver sustainable economic growth while safeguarding the environment.”
The initiative also ties into KWAP’s long-term pledge to achieve a net zero investment portfolio by 2050. The fund will prioritise opportunities that offer scalable climate solutions, from renewable energy projects to sustainable real estate developments and conservation-driven nature-based investments.
By positioning itself as a catalyst for climate investment, KWAP aims to stimulate greater participation from private markets and reinforce Malaysia’s standing as a regional leader in sustainable finance.
