KUALA LUMPUR, June 5 – The Retirement Fund Inc’s (KWAP) fund size is expected to hit US$500 billion by 2050, growing between eight to 10 per cent a year, Datuk Seri Najib Razak said.
The Prime Minister said since its establishment one decade ago, KWAP has recorded commendable achievements and performance.
He said KWAP’s fund size grew 200 per cent from RM42 billion in 2007 to RM125 billion in December 2016.
“Of the US$125 billion, RM53.6 billion resulted from increased in investment income which in turn will be used to fund pension liabilities.
“This is KWAP’s contribution to the nation and the retirees,” he said at KWAP’s 10th anniversary celebration and opening of its new main office at Menara KWAP Integra, The Intermark, here today.
KWAP Chairman Tan Sri Dr Mohd Irwan Serigar Abdullah and KWAP Chief Executive Officer Datuk Wan Kamaruzaman Wan Ahmad were present.
Najib, who is also Finance Minister, said KWAP also achieved an average gross return on investment of 6.5 per cent for the last 10 years.
“Although global prospects are uncertain, with external challenges in the investment and economic climate in recent years, I believe KWAP will continue to show positive and consistent financial performance as it had achieved so far,” he added.
He said KWAP has greatly contributed to the nation by financing and implementing an efficient retirement functions and helping the government in the redistribution of income to ensure that the welfare of pensioners are guaranteed.
The Prime Minister said KWAP’s fund has helped the government finance rakyat’s projects such as affordable housing built by Skim Perumahan Nasional Bhd, infrastructure projects such as government quarters, hospitals, schools and sports centres spearheaded through the private finance initiative.
Meanwhile, Najib asked KWAP to invest in healthcare as Malaysia is expected to enter an ageing nation status in 2030 based on a survey conducted by the United Nations.
However, he said the investment would have to meet certain criteria and would be able to provide returns to KWAP.
At the event, Najib also launched MyPesara, a mobile app designed specifically for retirees. — Bernama