KUALA LUMPUR: Kumpulan Wang Persaraan (Diperbadankan) or KWAP has seen its fund size growing by RM15.8 billion to RM185.6 billion for the year ended Dec 31 2024 (FY2024).
This reflects a 9.3 per cent increase from RM169.8 billion in 2023, KWAP said today.
Prior to accounting for withdrawals of RM5 billion to partially finance the government 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 cent per annum.
KWAP recorded its highest-ever net income of RM12.9 billion in 2024, delivering a total return of 12.0 per cent.
Domestic investments generated returns of 12.9 per cent, while the international portfolio delivered returns of 9.0 per cent.
KWAP said the results stem from public equity which generated a total return of 21.9 per cent, with domestic equity attaining 23.2 per cent and international equity achieving 16.9 per cent.
The fund’s asset allocation strategy remains diversified and resilient, with 74.6 per cent of its portfolio invested domestically and 25.4 per cent internationally.
As of Dec 31 2024, KWAP’s portfolio was allocated as follows:
* 51.7 per cent in equity,
* 32.4 per cent in fixed income,
* 5.4 per cent in private equity,
* 5.2 per cent in real estate, and
* 2.2 per cent in infrastructure with balance in cash management for liquidity purpose.
This asset allocation strategy has enabled the fund to optimise its investment returns amid varying market conditions, KWAP chief executive officer 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,” she added.
KWAP chairman Datuk Johan Mahmood Merican expressed his confidence.
“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,” he said.
KWAP served more than 810,000 pension recipients throughout Malaysia as of Dec 31 last year.
This represents a 2.4 per cent increase, or more than 19,000 additional pension recipients compared to 2023.
“KWAP maintained a 99.8 per cent Service Level Agreement (SLA) performance score, well above the 95 per cent threshold,” it said.
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 practices to align with evolving global trends, embedding responsible investment principles across its portfolio.
Under the GEAR-uP programme spearheaded by the Finance Ministry, KWAP remains committed to invest up to RM40 billion over the next five years in the domestic private markets, in collaboration with other GLICs to help catalyse growth in key economic sectors in Malaysia.
