KWAP presents the RM6b “Dana Pemacu” investment program aimed at key sectors

KUALA LUMPUR: The Retirement Fund Inc’s (KWAP) today launched a new private equity investment called “Dana Pemacu” with an allocation of RM6 billion.

The fund targets investments in key economic sectors, including food security, education, silver economy, healthcare, energy transition, digital economy, financial inclusion and other key impact themes within the MADANI economy.

In a statement, KWAP detailed that Dana Pemacu will be implemented through separately managed account (SMA) funds, in partnership with local talent and leading international investment managers across three asset classes – private equity, infrastructure and real estate.

The RM6 billion commitment will be invested through conventional and Shariah-compliant SMAs, with 50% earmarked for Shariah-focused investments aimed at leveraging Islamic equity to achieve greater impact in Shariah-compliant investments and strengthen general private markets, while offering unique opportunities for ethical and socially responsible investing.

Today at the Global Forum on Islamic Economics and Finance, Prime Minister Datuk Seri Anwar Ibrahim unveiled KWAP’s plan to allocate RM3 billion for Shariah-compliant investments, representing half of Dan Pemac’s total capital commitment.

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Meanwhile, KWAP Chief Executive Officer Datuk Nik Amlizan Mohamed highlighted the importance of Dana Pemacu to the nation’s growth and progress.

She said the plan is to implement this investment based on partnership models between local talent and international fund managers, which catalyzes the private market investment ecosystem in Malaysia.

“Moreover, this initiative will bring global best practices and expertise to the local market, driving knowledge transfer and industry networking, thereby strengthening local talent.

“Through this newly launched capital investment, we aim to support more local companies to expand their businesses in domestic and international markets, through both conventional and Shariah-compliant channels, ultimately strengthening financial markets and enhancing the development of local talent in Malaysia,” she added.

Leveraging Dan Pemacu’s investment strategy, KWAP remains committed to achieving optimal returns for the Fund to assist the Federal Government in financing its pension obligations.

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