KWAP’s fund size to hit RM500bil by 2050

Prime Minister Datuk Seri Mohd Najib Razak visiting the newly office of KWAP in Kuala Lumpur. Also present are CEO of KWAP Tan Sri Dr Mohd Irwan Serigar ( centre ) and CEO of KWAP Datuk Wan Kamaruzaman Wan Ahmad ( right )

KUALA LUMPUR: The Retirement Fund Inc’s (KWAP) fund size is expected to hit RM500bil by 2050, growing between 8% to 10% a year, Datuk Seri Najib Tun Razak said.

The Prime Minister said since its establishment one decade ago, KWAP had recorded commendable achievements and performance.

He said KWAP’s fund size grew 200% from RM42bil in 2007 to RM125bil in December 2016.

“Of the RM125bil, RM53.6bil 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, in Kuala Lumpur on Monday.

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% 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 had 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 had 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. - Bernama