Kumpulan Wang Persaraan (Diperbadankan) (KWAP) is set to mobilise billions of ringgit in strategic investments across Malaysia’s semiconductor, climate technology, start-up and domestic capital markets as part of its commitment to supporting the country’s long-term economic growth under Budget 2027.
KWAP Chief Executive Officer Dato’ Jay Khairil Jeremy Abdullah said the retirement fund welcomed the government’s continued emphasis on strengthening national competitiveness, attracting quality investments and developing high-value industries under the Ekonomi MADANI framework.
He said Budget 2027 highlighted the important role of long-term domestic capital in driving economic development while balancing the immediate needs of Malaysians with the country’s longer-term economic priorities.
“Budget 2027 highlights the important role of long-term domestic capital in catalysing Malaysia’s economic progress. For KWAP, our priority remains to invest the Retirement Fund prudently and generate sustainable long-term returns, while pursuing investment opportunities that complement the Government’s development priorities under Ekonomi MADANI,” he said.
KWAP also welcomed the government’s commitment to narrowing the fiscal deficit to 3.3% of gross domestic product (GDP) in 2027 from a projected 3.6% in 2026.
According to the retirement fund, the target reflects continued efforts towards fiscal consolidation, strengthening public finances and improving Malaysia’s resilience against future economic challenges.
As part of its investment strategy, KWAP plans to channel RM1.5 billion through Dana Pemacu to strengthen Malaysia’s local fund management capabilities, attract private capital and improve access to growth-stage financing for domestic businesses.
Another RM200 million will be deployed through Dana Perintis to support start-ups and strengthen Malaysia’s innovation ecosystem.
Meanwhile, RM1 billion has been earmarked through Dana Iklim+ for climate-focused investments aimed at supporting the country’s energy transition.
KWAP also intends to allocate up to RM1 billion towards the semiconductor industry, focusing on investment opportunities across the value chain to enhance Malaysia’s domestic capabilities and industrial competitiveness.
These investments are expected to support the development of strategic industries while encouraging greater private sector participation in the economy.
The retirement fund said the planned capital deployment across private markets, strategic sectors and domestic capital markets would remain subject to its investment processes, risk-return considerations and prevailing market conditions.
RM750 Million For Student Accommodation, RM50 Million For University Innovation
Beyond industrial development, KWAP plans to allocate RM750 million through Projek Vista Kampus to develop purpose-built student accommodation at selected public and private universities.
The initiative is intended to address Malaysia’s higher education infrastructure needs while expanding investment opportunities in education-related assets.
In addition, KWAP and the government will establish a RM50 million UniVC fund to support the commercialisation of university research and encourage greater private capital participation in locally developed innovations.
The initiative is expected to help bridge the gap between academic research and commercial applications, creating opportunities for homegrown technologies and businesses to scale.
Jay Khairil said KWAP’s investment strategy would focus on strengthening local enterprises, supporting key sectors and attracting additional private investment.
“By deploying capital strategically in Malaysia, we aim to support the development of local businesses, strengthen key sectors, and encourage greater private capital participation,” he said.
KWAP also welcomed Budget 2027’s measures to improve the welfare of government retirees, including an increase in the minimum monthly pension from RM1,000 to RM1,350.
The adjustment is expected to benefit nearly 59,000 pensioners and recipients of derivative pensions, among others.
The government also announced special financial assistance of RM750 for government retirees.
Jay Khairil said KWAP would continue contributing to broader efforts to improve Malaysians’ wellbeing, including through the implementation of the revised minimum wage.
“Beyond investments, we are contributing to the Government’s broader efforts in improving the rakyat’s wellbeing through the implementation of the revised minimum wage,” he said.
He emphasised that KWAP’s involvement in national development must remain consistent with its responsibilities as a long-term institutional investor and its obligation to safeguard retirement funds.
KWAP said its investment activities would continue to be guided by its mandate under the Retirement Fund Act 2007 (Act 662), fiduciary responsibilities and commitment to Malaysian pensioners.
