kuala lumpur: The Retirement Fund Berhad (KWAP) today launched a new private capital investment dubbed “Dana Pemacu”, with an allocation of RM6 billion.
The fund will target investments in key economic sectors including food security, education, silver economy, healthcare, energy transition, digital economy, financial inclusion and other key impact-related themes within the MADANI Economic Framework.
KWAP detailed in a statement that Dana Pemak will work with local talent and top international investment managers across three asset classes – private equity, infrastructure and real estate – and will be implemented through separately managed account (SMA) funds.
The RM6 billion investment will be made through conventional and Shariah-compliant SMAs, 50% of which will be dedicated to Shariah-focused investments, aiming to leverage Islamic equity capital to increase exposure to Shariah-compliant investments and strengthen the overall private market, whilst providing unique opportunities for ethical and socially responsible investment.
Speaking at the Global Forum on Islamic Economics and Finance earlier today, Prime Minister Datuk Seri Anwar Ibrahim revealed KWAP’s plans to allocate RM3 billion, equivalent to half of Dana Pemak’s total capital commitment, for sharia-compliant investments.
See also: KWAP’s total fund size increases to 190.3 billion ringgits: Finance Ministry
Meanwhile, KWAP chief executive officer Datuk Nik Amrizan Mohamed emphasised how significant Dana Pemak is to the country’s growth and progress.
He said the plan involves deploying this investment through a partnership model between local talent and international fund managers to boost Malaysia’s private market investment ecosystem.
“Furthermore, the initiative will bring global best practices and expertise to the local market, promote knowledge transfer and industry networking, and strengthen local talent.”
“Through this newly launched capital investment, we hope to help more local businesses expand their operations both domestically and internationally through both traditional and Shariah-compliant channels, ultimately strengthening Malaysia’s financial market and promoting local talent development,” she added.
KWAP has employed Dana Pemacu as its investment strategy and continues to work towards achieving optimal returns for the fund to help fund the federal government’s pension liabilities.
See also: KWAP invests RM500 million in newly launched Dana Perintis Fund
