KWAP’s Dana Pemacu to Channel RM6 Billion into Financial Inclusion, Other Key Sectors

KWAP’s Dana Pemacu to Channel RM6 Billion into Financial Inclusion, Other Key Sectors

by May 28, 2024

The Kumpulan Wang Persaraan (Diperbadankan) [KWAP] has announced a RM6 billion allocation for private capital investment under its Dana Pemacu initiative.

The announcement was made today by Prime Minister Datuk Seri Anwar Ibrahim at the Global Forum on Islamic Economics and Finance.

KWAP’s investment includes RM3 billion in Shariah-compliant investments, representing half of the total capital commitment.

Dana Pemacu aims to support key economic sectors such as food security, education, healthcare, energy transition, digital economy, financial inclusion, and other critical themes under the Ekonomi MADANI framework.

The RM6 billion commitment will be channeled through conventional and Shariah-compliant Separately Managed Accounts (SMAs).

This dual approach is designed to unlock the potential of Islamic equity capital and provide opportunities for ethical and socially responsible investing.

The execution of Dana Pemacu will involve partnerships between local talents and international investment managers across three asset classes: private equity, infrastructure, and real estate.

This strategy is expected to drive optimal returns for KWAP, aiding the Federal Government in financing its pension liabilities.

Datuk Seri Amir Hamzah Azizan

Datuk Seri Amir Hamzah Azizan

YB Minister of Finance II Datuk Seri Amir Hamzah Azizan, who officiated the launch of Dana Pemacu, said,

“The launch of Dana Pemacu by KWAP is in line with the broader reform by the Government to optimise GLIC institutional funds to spur investments into high growth Malaysian companies, contributing to initiatives which Raise the Ceiling under the Economy MADANI framework.

 

Dana Pemacu’s approach of partnership with domestic and international investment managers will help strengthen Malaysia’s private markets ecosystem.”

Datuk Hajah Nik Amlizan Mohamed

Datuk Hajah Nik Amlizan Mohamed

Datuk Hajah Nik Amlizan Mohamed, Chief Executive Officer of KWAP said,

“We believe that Dana Pemacu is instrumental for the growth and progress of the nation. Our plan is to deploy this investment through the creation of partnership models between local talents and international fund managers, which will serve to catalyse the private market investment ecosystem in Malaysia.

 

Furthermore, this initiative will bring global best practices and expertise to the local market as well as driving knowledge-transfer and industry network – enhancing local talents.”

Through Dana Pemacu, KWAP aims to support local companies in scaling both domestically and internationally via conventional and Shariah-compliant channels.

This initiative is part of Malaysia’s efforts to transform its industrial sector to be more competitive, sustainable, and inclusive under the NIMP 2030 plan of the MADANI Economy.