Kumpulan Wang Persaraan (KWAP)

KYCO: Know Your Company

Reveal Profile

4 November 2025

1) Overview of the Company

Kumpulan Wang Persaraan Diperbadankan (KWAP) is Malaysia’s largest public sector pension fund for civil servants, headquartered in Kuala Lumpur with pension services operations in Cyberjaya. Established on 1 March 2007 under the Retirement Fund Act 2007 (Act 662), KWAP replaced the Pensions Trust Fund and assumed all its powers, functions, activities, assets and liabilities. The organization operates as Malaysia’s second-largest pension fund and serves as one of the country’s key government-linked investment companies (GLICs).

KWAP achieved unprecedented growth in 2024, with fund size increasing by RM15.8 billion to RM185.6 billion, representing a 9.3% increase from RM169.8 billion in 2023. The pension fund recorded its highest-ever investment income of RM18.0 billion, delivering a 12% total return in 2024. Since inception in 2007, KWAP’s fund size has quadrupled with an average growth rate of 9.1% per annum.

The fund maintains a diversified asset allocation strategy with 74.6% of its portfolio invested domestically and 25.4% internationally as of December 2024. The portfolio allocation includes 51.7% in equity, 32.4% in fixed income, 5.4% in private equity, 5.2% in real estate, and 2.2% in infrastructure. KWAP operates with a workforce of 201-500 employees and manages contributions from the Federal Government, statutory bodies, and local authorities.

KWAP serves over 810,000 pension recipients throughout Malaysia as of December 2024, representing a 2.4% increase from the previous year. The organization maintains a 99.8% Service Level Agreement performance score, well above the 95% threshold. In 2015, KWAP officially took over pension payment administration from the Public Services Department, expanding its role beyond investment management to comprehensive pension services.

The fund operates wholly-owned subsidiaries including Prima Ekuiti UK Limited, incorporated in England in 2011 for international investment diversification, and Kwest Sdn Bhd for real estate development. KWAP has committed to investing up to RM40 billion over five years in domestic private markets under the government’s GEAR-uP initiative, collaborating with other GLICs to catalyze growth in key economic sectors.

2) History

Kumpulan Wang Persaraan Diperbadankan was established on 1 March 2007 under the Retirement Fund Act 2007 (Act 662), replacing the repealed Pensions Trust Fund Act 1991 (Act 454). The organization’s origins trace back to the Pensions Trust Fund, which was enacted on 1 June 1991 to assist the Federal Government in funding its pension liability, beginning with a launching grant of RM500 million from the Federal Government. The Pensions Trust Fund was administered by the Pensions Trust Fund Council with the Accountant-General of Malaysia responsible for day-to-day administration and management.

With KWAP’s incorporation in March 2007, all powers, functions, activities, assets and liabilities of the Pensions Trust Fund were transferred in totality to the new organization. The Pensions Trust Fund had grown from its initial RM500 million grant in 1991 to RM42 billion by 2007, representing substantial expansion over its 16-year operation. KWAP’s establishment marked a significant transformation from the previous administrative structure to a dedicated corporate entity focused on pension fund management and investment operations.

A major operational milestone occurred in November 2015 when KWAP was officially appointed as agent to the Federal Government for overall pension management and payment operations, taking over this role from the Public Services Department’s Post Pension Services Division. This expansion significantly broadened KWAP’s mandate beyond investment management to include comprehensive pension administration and payment services for public sector retirees.

KWAP’s international expansion began in 2011 with the incorporation of Prima Ekuiti UK Limited in England on 6 October 2011, as part of the organization’s initiatives to diversify investments internationally by encouraging active management of foreign investments. The London office of Prima Ekuiti UK Limited was officially launched on 30 April 2012, witnessed by distinguished officials including the former Malaysian High Commissioner to the UK.

The organization underwent significant transformation through its TERAS 5 program, launched on 3 August 2022 by the former Minister of Finance. TERAS 5 represented a 3-year transformation program (2022-2024) built on five key pillars focusing on Structure, Governance, People, Process, and Digital enablement, designed to catalyze internal restructuring and ensure KWAP remained agile and ready for future challenges. This transformation elevated IT to a strategic level and activated three new divisions: Finance Division, Digital Division, and Strategy & Services Division.

KWAP achieved several historic milestones throughout its development, including reaching a fund size of RM140.8 billion by 2017 and continuing growth to RM169.8 billion in 2023, marking consistent expansion since inception. In 2024, the organization recorded unprecedented growth with fund size increasing by RM15.8 billion to RM185.6 billion, achieving its highest-ever investment income of RM18.0 billion and delivering a 12% total return. Since establishment in 2007, KWAP’s fund size has quadrupled with an average growth rate of 9.1% per annum.

Recent strategic developments include the introduction of specialized investment programs such as Dana Perintis initiative launched in 2023 with RM500 million allocation to accelerate growth within the Malaysian entrepreneurial landscape, and the commitment to invest up to RM40 billion over five years in domestic private markets under the government’s GEAR-uP initiative. KWAP also demonstrated its commitment to sustainability through pledging RM20 billion to transition assets in 2024, aligning with the MADANI Economy Framework and the organization’s dedication to fostering a low-carbon economy.

3) Key Executives

Datuk Hajah Nik Amlizan Mohamed was appointed as Chief Executive Officer of KWAP on 2 November 2020. She previously served as Chief Executive Officer of Lembaga Tabung Angkatan Tentera from September 2018 to September 2020, and prior to that was KWAP’s Chief Investment Officer from 2016 to 2018, having served the organisation in various roles since first joining in 2007. Her professional career spans over 25 years in financial services and pension funds, overseeing investment functions across all asset classes, with extensive experience in fund management, transformational change and corporate governance. She graduated with a Bachelor’s Degree in Economics/Accounting from Claremont McKenna College, United States in 1991.

Hazman Hilmi Sallahuddin was appointed as Chief Investment Officer of KWAP on 3 January 2022. He was previously the Managing Director of Damansara Assets Sdn Bhd, a wholly owned real-estate subsidiary of Johor Corporation, and Chief Executive Officer of AMAL by Malaysia Airlines, a wholly owned subsidiary of the Malaysian Aviation Group. Prior to that, he served at Khazanah Nasional Berhad for 12 years in various roles, including Senior Vice President of Khazanah Europe Investment Limited based in London, and Vice President of Khazanah Turkey Regional Office based in Istanbul. He obtained his MEng (First Class) in Engineering, Economics and Management from Balliol College, University of Oxford, United Kingdom, and MSc in Operational Research from the London School of Economics & Political Science, United Kingdom.

Encik Haizad Rizal A Aziz was appointed as Chief Financial Officer of KWAP on 3 October 2022. He brings over two decades of experience in financial services, having previously served as Chief Financial Officer at Sime Darby Oils, SME Bank Group and Johawaki Group. He began his career in Ireland for nine years with BDO Simpson Xavier, Daiwa Europe Fund Managers and KPMG Ireland, subsequently joining RHB Banking Group in 2009 where he took on various roles. He is a Fellow Chartered Accountant from Institute of Chartered Accountants in Ireland and holds a BA (Hons) in Accounting and Finance from Dublin Business School.

Encik Maz Mirza Bin Mohd Aminurashid was appointed as the first Chief Digital Officer of KWAP on 3 October 2022. He brings 25 years of expertise in the Information Technology industry and cybersecurity, previously serving as Head of IT at Mass Rapid Transit Corporation. Before joining MRT Corp, he served as Head of IT at Puspakom and was attached to several subsidiaries of Sime Darby group for 13 years. He graduated with a Bachelor’s Degree (Honours) in Computer Science from University of Cambridge, United Kingdom in 1997.

Encik Nik Ahmad Fauzan Bin Nik Mohamed serves as Chief Operating Officer of KWAP since September 2015. His background includes extensive experience in corporate services and operations management across various sectors. He holds a Bachelor of Accountancy degree from The George Washington University School of Business and a Master of Business Administration from The George Washington University School of Business.

Nazaiful Affendi Zainal Abidin was promoted to Chief Strategy and Services Officer effective 1 November 2024. With over 25 years of experience in investment strategy and research across various markets and asset classes, he previously served as Head of Portfolio Strategy and Research for 16 years at KWAP. His expertise in investment research and governance was built through progressive leadership roles at several established institutions including the Securities Commission, Kumpulan Guthrie Berhad, and Alliance Merchant Bank. He holds a Master of Business Administration in Finance and a Bachelor’s Degree in Business Administration majoring in Finance and Economics from the International Islamic University Malaysia.

Zarina Halim was appointed as Chief Retirement Services Officer effective 2 January 2024. She brings over 20 years of experience from Hektar Group, where she spearheaded the sustainability agenda for Hektar REIT, resulting in a four-star rating on Bursa Malaysia’s FTSE4GD Index and numerous ESG awards. She previously held the position of Chief Corporate Officer at Hektar Asset Management and was part of the founding group in 2002 responsible for the listing of Hektar REIT on Bursa Malaysia in December 2006. She holds a Bachelor’s Degree in Accounting and Finance (Honours) from the University of Manchester, United Kingdom, and a Bachelor’s Degree in Law (Honours) from the University of London.

4) Ownership

Kumpulan Wang Persaraan Diperbadankan (KWAP) is a statutory body established under Malaysia’s Retirement Fund Act 2007 (Act 662) and is not a privately owned entity. It is one of Malaysia’s key government-linked investment companies (GLICs). Legal Entity Identifier (LEI) data categorizes KWAP as a “RESIDENT_GOVERNMENT_ENTITY” and “CENTRAL_GOVERNMENT” entity, with its legal form listed as “PENSION FUND”. Consistent with its status as a statutory body, registration records state “NO_KNOWN_PERSON” for both its direct and ultimate parent, indicating it has no parent company.

The fund’s capital is derived from contributions made by the Federal Government of Malaysia, statutory bodies, local authorities, and other government agencies. These funds are managed by KWAP with the objective of assisting the federal government in financing its pension liabilities for public sector employees. Since 2015, KWAP’s mandate expanded to include acting as an agent for the Federal Government in the administration and payment of pensions.

KWAP operates through wholly-owned subsidiaries to execute specific investment strategies. Prima Ekuiti UK Limited, incorporated in England on October 6, 2011, serves as the vehicle for managing international investments. Kwest Sdn Bhd was established in 2017 as an investment platform for real estate development. LEI registration data for KWAP formally identifies Prima Ekuiti UK Limited as a direct and ultimate child entity.

While KWAP itself does not have external equity owners, it is a substantial institutional investor and shareholder in numerous publicly listed companies, both in Malaysia and globally. To manage its portfolio, KWAP allocates a portion of its investments to external fund managers (EFMs) and general partners (GPs). Consequently, its shareholdings in various companies are often held as a combination of direct interests by KWAP and indirect interests through its appointed fund managers.

5) Legal Claims and Actions

Publicly available information did not reveal any material legal claims or regulatory actions against Kumpulan Wang Persaraan Diperbadankan (KWAP) or its subsidiaries Prima Ekuiti UK Limited and Kwest Sdn Bhd within the last ten years based on the sources reviewed.

However, KWAP was materially involved in legal proceedings concerning SRC International Sdn Bhd, a former subsidiary of 1Malaysia Development Berhad (1MDB). During the criminal trial of former Prime Minister Datuk Seri Najib Tun Razak, court testimony revealed that KWAP had approved two loans totaling RM4 billion to SRC International in 2011 and 2012. Testimony from a former KWAP official indicated that the initial RM2 billion loan was expedited following direction from the then-Prime Minister, who also served as Finance Minister and had oversight of KWAP. The loan did not meet KWAP’s standard investment policy criteria, although it was secured by a government guarantee.

In May 2022, SRC International Sdn Bhd, under new management controlled by the Ministry of Finance Incorporated, filed civil litigation against Najib and six former SRC directors for alleged breach of trust and breach of statutory duty in relation to the RM4 billion KWAP loan. The lawsuit alleges that SRC’s previous directors failed to take reasonable steps to ensure KWAP’s loans were used properly to finance the company’s general investment activities and working capital requirements, and that a large number of withdrawals, transfers and uses of KWAP loans were fraudulent or improper. KWAP was not named as a defendant in this civil action.

Following enhanced governance measures implemented by KWAP’s current leadership since 2020, the organization instituted a “no exemption” clause in its investment policy, requiring every investment to strictly meet all established criteria without exception. The RM4 billion loan was fully repaid by the Malaysian government in 2022 and is no longer on KWAP’s books.

KWAP maintains comprehensive compliance frameworks including the Three Lines of Defence Model for managing compliance risk, with regulatory compliance covering external regulations from Bank Negara Malaysia, Securities Commission, Bursa Malaysia and other regulatory bodies. The organization’s compliance function identifies, assesses, monitors and reports on compliance risk as an independent function to preserve KWAP’s reputation and competitive standing.

6) Recent Media Coverage

In February 2025, Kumpulan Wang Persaraan Diperbadankan (KWAP) announced its unaudited financial results for 2024, reporting a record-high investment income of RM18.0 billion and a total return of 12.0%, both the highest since its inception. This performance drove the fund’s size up by 9.3% year-over-year to RM185.6 billion, despite a RM5.0 billion withdrawal by the government to finance pension liabilities. The strong results followed a positive 2023, where KWAP’s net income was reported at RM9.7 billion, a significant recovery from RM263 million in 2022, with a total fund investment return of 8.2% for that year.

Media coverage has highlighted KWAP’s strategic pivot towards private markets, with the fund reportedly aiming to increase this allocation from 13% in 2023 to 20% by 2028, and potentially as high as 30% over the next five years. This strategy includes several new initiatives launched between 2023 and 2025. In September 2023, KWAP launched Dana Perintis, a RM500 million fund for venture capital and startup investments, making its first RM100 million in commitments by February 2024. This was followed by the May 2024 launch of Dana Pemacu, a RM6.0 billion private capital initiative, for which KWAP announced the selection of 12 global general partners in June 2025 to manage investments in private equity, infrastructure, and real estate. In October 2025, KWAP also launched Dana Iklim+, a RM2 billion climate-focused fund, and announced a combined investment increase with Khazanah Nasional Bhd to RM750 million to support the startup ecosystem.

Adverse media attention in January and February 2025 centered on KWAP’s investment in the Indonesian agritech startup eFishery. Reports emerged that the firm, valued at US$1.4 billion in 2023, was under investigation for alleged financial irregularities, including inflated revenue and profit figures, leading to the suspension of its co-founders. KWAP participated in eFishery’s US$200 million Series D funding round in 2023. Subsequent reports in February 2025, citing documents from advisers, indicated that investors like KWAP were facing a potential near-total loss of their capital, with recovery estimated at less than 10 cents on the dollar.

In ESG-related news, KWAP pledged in August 2024 to commit RM20 billion to transition assets by 2030 as part of its goal to achieve a net-zero portfolio by 2050 and support Malaysia’s MADANI Economy framework. This includes an investment of RM219 million in Cyan Renewables, an offshore wind support vessel operator, announced in October 2024. Separately, media outlets have recently reported on KWAP’s trading activities, including the disposal of shares in Zetrix AI Bhd and Johor Plantations Group Bhd in 2025, reducing its holdings below the 5% substantial shareholder threshold, and the accumulation of shares in Dialog Group Bhd.

Recent media has also revisited historical legal matters involving KWAP. In August 2022, it was reported that the RM4 billion in loans KWAP provided to SRC International Sdn Bhd in 2011 and 2012 had been fully repaid by the Malaysian government. The loans were a central element in the criminal trial of former Prime Minister Najib Razak. More recently, in November 2024, reports quoted KWAP’s CEO, Datuk Nik Amlizan Mohamed, stating that as a result of lessons learned from the SRC affair, the fund had implemented a “no exemption” clause in its investment policy to ensure all future investments strictly adhere to established criteria. In May 2021, SRC, under new management, filed a civil suit against Najib and its former directors for breach of trust related to the KWAP loan, though KWAP was not a party to this lawsuit.

On the operational front, it was reported in July 2025 that KWAP awarded a RM148 million contract to Mesiniaga Bhd for the development of a new pension system, with the project slated for completion by July 2028. In December 2023, KWAP entered into sale-and-leaseback agreements for two of its purpose-built workers’ accommodation assets in Malaysia for a total of RM227.0 million ($65.2 million), leasing them back for 15 years as part of its asset-light strategy.

7) Strengths

Kumpulan Wang Persaraan Diperbadankan’s (KWAP) senior management team possesses extensive experience in financial services, investment management, and public sector governance. CEO Datuk Hajah Nik Amlizan Mohamed has over two decades of experience in pension funds and was part of KWAP’s founding team. CIO Hazman Hilmi Sallahuddin previously held senior roles at Khazanah Nasional Berhad, including in its London and Istanbul offices. Other C-suite executives bring specialized expertise from prior leadership positions at firms such as Sime Darby Oils, Mass Rapid Transit Corporation, and Hektar Group.

As a key Government-Linked Investment Company (GLIC) and a statutory body, KWAP holds a strategic position within Malaysia’s economic framework. This status provides it with a stable mandate, a consistent source of capital from government contributions, and involvement in national economic initiatives such as the Ekonomi MADANI framework and the GEAR-uP program. This relationship with the government facilitates access to large-scale, long-term investment opportunities aligned with national development goals.

Established in its current form in 2007, KWAP builds on the legacy of its predecessor, the Pensions Trust Fund, which dates back to 1991. Since its inception with an initial fund size of RM41.9 billion, KWAP has grown its total assets to RM185.6 billion as of the end of 2024, demonstrating an average annual growth rate of 9.1%. This track record of consistent growth underscores its ability to manage and expand its portfolio through various economic cycles.

KWAP maintains a well-diversified investment portfolio across multiple asset classes and geographies to optimize returns and manage risk. As of December 2024, its asset allocation included 51.7% in equity, 32.4% in fixed income, and allocations to private equity (5.4%), real estate (5.2%), and infrastructure (2.2%). Geographically, the fund has a presence in 43 countries, with 74.6% of its portfolio invested domestically and 25.4% internationally, providing a balance between supporting the domestic economy and capturing global growth opportunities.

KWAP is strategically increasing its allocation to private markets to enhance long-term returns. The fund aims to increase its private market exposure from 12.3% in 2023 to 20% by 2028, with some reports suggesting a target as high as 30%. This strategy is executed through dedicated initiatives like the RM6 billion Dana Pemacu for private equity, infrastructure, and real estate, and the RM500 million Dana Perintis for venture capital, positioning KWAP to capitalize on higher yields from illiquid assets.

Beyond its investment functions, KWAP has served as the government’s agent for administering and paying public sector pensions since 2015. In 2024, it served over 810,000 pension recipients and maintained a 99.8% Service Level Agreement (SLA) performance score. This dual role provides operational stability and a deep connection to its core stakeholders, reinforcing its purpose-driven mission as “Your Retirement Companion”.

8) Potential Risk Areas for Further Diligence

The RM4 billion loans extended to SRC International Sdn Bhd in 2011-2012, which did not meet Kumpulan Wang Persaraan Diperbadankan’s (KWAP) standard investment policy and were reportedly expedited under political pressure, created significant reputational and governance risks. Although the loans have been fully repaid and KWAP has since implemented a “no exemption” clause in its investment approval process, the incident highlights a historical vulnerability to external influence. Further diligence is required to assess the ongoing effectiveness of these enhanced controls and to ensure that the current governance framework is sufficiently robust to prevent any recurrence and withstand political pressure, thereby protecting the fund’s integrity and its pensioners’ interests.

KWAP is strategically increasing its allocation to private markets, targeting a 20% allocation by 2028 and potentially as high as 30% of its total portfolio, a significant increase from 12.3% in 2023. While this strategy aims to capture higher returns, it introduces greater exposure to illiquidity, valuation, and market risks associated with private equity, infrastructure, and real estate. Diligence should focus on the fund’s risk management framework for these asset classes, the expertise of its internal teams and chosen external managers, and the due diligence processes for new initiatives like Dana Pemacu and Dana Iklim+. The performance of these less-liquid assets during market downturns warrants close examination.

While the current leadership team is experienced, the organization’s C-suite has seen several key appointments and promotions since 2022, including a new Chief Investment Officer, Chief Financial Officer, Chief Digital Officer, and Chief Retirement Services Officer. Further diligence should be conducted on the stability of the senior management team, succession planning for key roles, and the integration of new executives into the organization’s culture and long-term strategy. Any disruption in leadership could impact the execution of KWAP’s strategic initiatives, including its pivot to private markets.

KWAP relies on a network of external fund managers (EFMs) and general partners (GPs) to manage a portion of its investments, particularly in specialized and international markets. This introduces operational and principal-agent risks. Diligence is needed to evaluate KWAP’s processes for selecting, monitoring, and terminating these external partners. The framework for ensuring these managers adhere to KWAP’s ESG principles, risk parameters, and the “no exemption” policy is critical, especially as the allocation to externally managed private market funds increases.

KWAP launched its TERAS 5 transformation program in 2022, which elevated its digital strategy and established a new Digital Division, and appointed its first Chief Digital Officer. As the fund increases its reliance on digital platforms for pension services and investment management, it becomes more susceptible to cybersecurity threats, data breaches, and operational disruptions. Further inquiry should assess the maturity of its digital infrastructure, the security measures in place to protect sensitive pensioner and investment data, and the execution risk associated with its ongoing digital transformation.

As a large institutional investor, KWAP’s performance is inherently linked to global and domestic market volatility, geopolitical risks, and fluctuating interest rates. A significant portion of its portfolio is in public equities (51.7%), making it sensitive to market downturns. Any adverse changes in the macroeconomic environment could impact the fund’s ability to achieve its targeted returns and grow its assets under management.

Sources

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