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KWAP hopes to grow gross fund size to RM200b by 2025, says Tengku Zafrul

Tengku Zafrul: At a time when markets are experiencing unprecedented volatility, I expect KWAP to strengthen its ability to facilitate more catalytic investments that directly benefit the Malaysian economy, continue to grow its fund size and equally important, elevate service levels for pensioners. (Photo by Zahid Izzani Mohd Said/The Edge)

Tengku Zafrul: At a time when markets are experiencing unprecedented volatility, I expect KWAP to strengthen its ability to facilitate more catalytic investments that directly benefit the Malaysian economy, continue to grow its fund size and equally important, elevate service levels for pensioners. (Photo by Zahid Izzani Mohd Said/The Edge)

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KUALA LUMPUR (Aug 3): Kumpulan Wang Persaraan (Diperbadankan)’s (KWAP) hopes to achieve gross fund size of RM200 billion by 2025, said Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

Tengku Zafrul announced on Wednesday (Aug 3) KWAP’s target as he launched the fund’s three-year programme (2022 to 2024) Teras 5 at the pension fund manager’s office.

Notably, KWAP has achieved a record fund size of approximately RM159 billion as at end-2021, a three-fold increase from its RM41.9 billion worth of funds back when it was established in 2007.

The minister said the sovereign wealth fund also aims to increase the number of its property assets from 17 to more than 30, and to own more than 35 subsidiaries by 2025.

“Teras 5 is very much aligned with the aspirations of the government to optimise the strengths of GLICs (government-linked investment companies),” he said in his speech.

“At a time when markets are experiencing unprecedented volatility, I expect KWAP to strengthen its ability to facilitate more catalytic investments that directly benefit the Malaysian economy, continue to grow its fund size and equally important, elevate service levels for pensioners.”

Teras 5 is part of KWAP's long-term transformation plan to support sustainable growth to benefit pensioners.

It is based on elevating five enablers, namely structure, governance, people, processes and digital, which will drive eight workstreams: organisational structure; enterprise; investment; contribution and retirement services; digital; people and culture; corporate services; and risk, governance and oversight.

The eight workstreams have been tasked to drive the implementation of 44 initiatives, which include key initiatives on realignment of front, middle and back office, organisational restructuring towards a value chain-based structure and refinement of a group-wide governance framework.

“Teras 5 was fully developed by the KWAP team itself. It does not involve the appointment of external consultants and it clearly proves the talent capability at KWAP,” KWAP chief executive officer Nik Amlizan Mohamed said in her speech.

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