Malaysia $34 Billion Public Service Retirement Fund KWAP Launches $1.2 Billion Malaysia-Focused Private Equity Investment Group Dana Pemacu via Separately Managed Account Funds in 3 Asset Classes Private Equity, Infrastructure & Real Estate, $600 Million to be Invested in Shariah-Compliant Funds
5th June 2024 | Hong Kong
Malaysia $34 billion public service retirement fund KWAP (Kumpulan Wang Persaraan) has launched a new $1.2 billion (MYR 6 billion) Malaysia-focused private equity investment group Dana Pemacu via Separately Managed Account (SMA) funds in 3 asset classes private equity, infrastructure & real estate. Dana Pemacu will invest 50% of the $1.2 billion ($600 million) in shariah-compliant funds. Dana Pemacu will target at Malaysia 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 Ekonomi MADANI framework. (Ekonomi MADANI – The framework of ‘Ekonomi MADANI: Memperkasa Rakyat’ is then introduced on 27 July 2023 as a platform to restore the honour and dignity of the country. The main emphasis is to restructure the Malaysian economy towards becoming a leader in the Asian economy. Shariah-compliant funds – Shariah-compliant funds complies with the principles of Shariah (Islamic Law), in terms of its primary business and investment activities as well as financial position. Non-permissible investments include interest-based or businesses that are in the alcohol, pork, entertainment & tobacco industries.). KWAP (28/5/24): “At the Global Forum on Islamic Economics and Finance, YAB Prime Minister Datuk Seri Anwar Ibrahim announced today that Kumpulan Wang Persaraan (Diperbadankan) [KWAP] will invest RM3 billion in Shariah compliant investments, making up 50% of the total Dana Pemacu 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 Ekonomi 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. The RM6 billion capital commitment will be invested via conventional and Shariah-compliant SMAs, with 50% to be Shariah-focused, unlocking the potential of Islamic equity capital in creating a greater impact in Shariah-compliant investment and enhancing the overall private markets, as well as offering unique opportunities for ethical and socially responsible investing. With Dana Pemacu as an investment strategy, KWAP continues to strive for optimal returns for the Fund to assist the Federal Government in financing its pension liabilities.”
“ Malaysia $34 Billion Public Service Retirement Fund KWAP Launches $1.2 Billion Malaysia-Focused Private Equity Investment Group Dana Pemacu via Separately Managed Account Funds in 3 Asset Classes Private Equity, Infrastructure & Real Estate, $600 Million to be Invested in Shariah-Compliant Funds “
YB Minister of Finance II Datuk Seri Amir Hamzah Azizan: “The launch of Dana Pemacu by KWAP is in line with the broader reform by the Government to optimise GLIC 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.”
Datuk Hajah Nik Amlizan Mohamed, CEO of KWAP: “We believe that Dana Pemacu is instrumental for the growth and progress of the nation. Our 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. Through this newly launched capital investment, we aspire to support more local companies to scale domestically and internationally through both conventional and Shariah-compliant channels, ultimately strengthening financial markets and enhancing local talent development in Malaysia.”
Ekonomi MADANI – The framework of ‘Ekonomi MADANI: Memperkasa Rakyat’ is then introduced on 27 July 2023 as a platform to restore the honour and dignity of the country. The main emphasis is to restructure the Malaysian economy towards becoming a leader in the Asian economy.
Shariah-compliant funds – Shariah-compliant funds complies with the principles of Shariah (Islamic Law), in terms of its primary business and investment activities as well as financial position. Non-permissible investments include interest-based or businesses that are in the alcohol, pork, entertainment & tobacco industries.
Malaysia $34 Billion Public Service Retirement Fund KWAP Launches $106 Million Fund to Invest in Startups & Venture Capital Funds, MYR 500 Million Dana Perintis Fund with 50% to be Invested in Startups & 50% in 10 Venture Capital Funds
23rd September 2023 – Malaysia $34 billion public service retirement fund KWAP (Kumpulan Wang Persaraan) has launched a $106 million fund (MYR 500 million) to invest in startups & venture capital funds, named Dana Perintis fund with 50% to be invested in startups and 50% in 10 venture capital funds. More info below:
Encik Hazman Hilmi Sallahuddin, Chief Investment Officer of KWAP: “KWAP recognises the potential for innovation and growth within Malaysia’s venture ecosystem. We are proud to introduce Dana Perintis, an initiative that also serves as a testament to our commitment to enhance the growth of Malaysia’s startup industry. With Dana Perintis, we are not just investing financial capital, but also putting in our expertise, resources, and commitment to seeing these Malaysian startups succeed on a global stage, especially with the ones we are directly involved in. We are dedicated to empowering startups and SMEs, supporting employment, and nurturing innovation. In realising these visions, KWAP has already identified several potential startups to invest in, which currently employ more than 1,000 Malaysians from different backgrounds.”
Malaysia $34 Billion Public Service Retirement Fund KWAP Launches $106 Million Fund to Invest in Startups & Venture Capital Funds
21st September 2023 – Kumpulan Wang Persaraan (Diperbadankan) [KWAP] announced today the launch of Dana Perintis, aimed at injecting vitality into Malaysia’s venture and startup ecosystem. With a commitment to invest up to RM500 million over the next 18 to 24 months, KWAP is set to empower early-stage companies, drive innovation, and support economic resilience.
- Launched by YB Tuan Mohd Rafizi Ramli, Minister of Economy at KWAP’s office earlier today, Dana Perintis encompasses two strategic pillars: investments into selected Malaysia-focused Venture Capital (VC) funds and direct investments into early-stage companies. With an allocation of RM250 million for each pillar, KWAP’s initiative aims to accelerate growth within the Malaysian entrepreneurial landscape in line with KWAP’s sustainability commitment as a signatory of the UN Principles for Responsible Investment (PRI).
- As one of Malaysia’s prominent investors, KWAP seeks to play a pivotal role in steering the nation toward a flourishing early-stage ecosystem. By strategically investing and addressing critical gaps, KWAP aims to propel the growth trajectory of the startup landscape, reaping attractive risk-adjusted returns for its stakeholders.
- A substantial portion of up to RM250 million will be directed towards investing in VC funds with exposure focusing on Malaysia. This approach aligns with KWAP’s endeavour to support the development of a self-sustaining venture ecosystem. These VC funds serve as dynamic catalysts, nurturing innovative startups by providing essential capital and guidance. KWAP’s strategic investments will span the spectrum of the startup journey—ranging from accelerators to growth managers—contributing to the maturation of the overall Malaysian venture space. In parallel to the fund investments, another RM250 million will be committed towards direct investments into promising early-stage companies. This commitment echoes KWAP’s intention to nurture startups through growth and expansion stages.
- The launch of Dana Perintis is aligned with the Economy Madani initiative and reflects KWAP’s focus on empowering SMEs for expansion, fostering economic growth and contributing to Malaysia’s entrepreneurial future.
- As KWAP implements this initiative, it remains conscious of its role and commitment to the pensioners who are its primary stakeholders, to spur the growth of the pension fund and enabling KWAP to fulfil its role in line with its tagline: ‘Your Retirement Companion’.
About Kumpulan Wang Persaraan (Diperbadankan)
Kumpulan Wang Persaraan (Diperbadankan) [KWAP] or the Retirement Fund (Incorporated) was established on 1st March 2007 under the Retirement Fund Act 2007 (Act 662) replacing the repealed Pensions Trust Fund Act 1991 (Act 454). KWAP manages contributions from the federal government and relevant agencies made into the Retirement Fund [Fund] to obtain optimum returns on its investments through sound management and investment of the Fund in equity, fixed-income securities, money market instruments, and other forms of investments as permitted under the Retirement Fund Act 2007 (Act 662). The Fund shall be applied towards assisting the Federal Government in financing its pension duties. In 2015, KWAP was officially appointed as an agent of the Federal Government for the purpose of pension payment, gratuity, or other benefits granted under any written law from the Consolidated Fund as agreed between the Federal Government and KWAP.
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