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KWAP sets growth, returns targets

KUALA LUMPUR: Kumpulan Wang Persaraan Diperbadankan (KWAP) has set itself several high targets including to grow its fund size by about 25 per cent and achieve greater returns under its newly-launched Teras 5 blueprint.

KWAP, which manages the pension scheme for civil servants, wants to expand its fund size from RM159 billion currently to RM200 billion by the end of the three-year Teras 5 in 2025.

Chief executive officer Nik Amlizan Mohamed said KWAP also wanted to grow its property assets to more than 30 from the existing 17 and have more than 35 subsidiaries. 

She said among the key improvements targeted via Teras 5 included restructuring the current organisational structure to elevate the strategy, finance and digital functions to allow for a more holistic approach in charting KWAP's growth plans. 

Teras 5 also entailed further enhancement of KWAP's governance and oversight and cultivate an agile and future-ready talent pool, Nik Amlizan said at the launch by Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz here today.

She noted that digitalisation would be the primary thrust of Teras 5 as KWAP looked to become a digital native organisation through nurturing citizen developers internally. 

She said KWAP aimed to leverage further on data analytics to enhance real tume dashboards related to investments and pensioner's data in order to ensure timely investments and of optimisation of opportunities. 

"We are embarking on our restructuring initiative via Teras 5 from a position of strength. In fact for the fiscal year 2021, we achieved a historical high net income of RM10 billion. 

KWAP had been steadily achiving a six per cent return per annum for the last 10 years, she added.

"Teras 5 is fully developed in house to solidify our foundation ti be future ready and grow sustainably, particularly from an environmental, social and governance perspective underpinned by 44 initiatives for the benefit of our stakehokders and the nation," she said. 

Meanwhile, Tengku Zafrul said Teras 5 was very much aligned with the government's aspirations to optimise the strengths of  government-linked investment companies. 

"At a time when markets are experiencing unpecedented volatility, I expect KWAP to strengthen its ability to facilitate more catalytic investments that directly benefit the Malaysian economy, continue ti grow its fund size and equally important, elevate service levels for pensioners," he added.

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