The Dewan Rakyat has passed the National Trust Fund (KWAN) Bill 2026, introducing a stronger legal framework to ensure more consistent contributions, tighter withdrawal rules and clearer governance for Malaysia’s long term sovereign reserve fund.
The Bill, tabled by Deputy Finance Minister Liew Chin Tong, was approved by a majority voice vote after being debated by 15 Members of Parliament.
Liew said the legislation aims to strengthen the fund’s role as a long term financial reserve for future generations by addressing weaknesses identified under the existing framework.
He said KWAN’s assets stood at RM22.43 billion at the end of 2024, with Petroliam Nasional Bhd (Petronas) remaining the fund’s only voluntary contributor, having contributed RM13.5 billion.
“During the same period, the experience of managing the fund, including the RM5 billion withdrawal in 2021 that attracted public attention, showed that the existing framework needed improvement, as contributions depended entirely on discretion, there was no withdrawal limit and the purpose of utilisation was broadly defined.
“This Bill is drafted to strengthen that framework through statutory contributions, withdrawal discipline and modern governance,” he said when winding up the debate in the Dewan Rakyat.
Liew added that the statutory contribution rate of 0.1% is set as the minimum rate and is intended to preserve intergenerational savings regardless of changes in fiscal cycles or government administrations.
He said any amendment to the contribution rate can only be made through an Act of Parliament, requiring the government of the day to seek approval from the Dewan Rakyat.
