By P PREM KUMAR
The Retirement Fund Inc (KWAP) is projected to achieve a fund size of RM500 billion by 2050, said Prime Minister (PM) Datuk Seri Mohd Najib Razak.
Najib, who is also finance minister, said the ambitious fund size can be achieved by KWAP with an annual fund size growth of between 8% and10%.
“KWAP will continue to grow to greater heights as a high-performance organisation. I believe the projected RM500 million fund size can be achieved by 2050, God willing,” Najib said at KWAP’s 10th anniversary celebration yesterday. Also present were Treasury Secretary General and KWAP chairman Tan Sri Dr Mohd Irwan Serigar Abdullah and KWAP CEO Datuk Wan Kamaruzaman Wan Ahmad. Najib said in the 10 years since it was established, KWAP has recorded remarkable performance with over 200% growth in fund size from RM42 billion in 2007 to RM125 billion in December last year.
“Out of the total, RM53.6 billion is revenue from investment income, which will subsequently be used to fund the pension’s liabilities. This is one of KWAP’s contributions to the country and civil servant retirees,” the PM said.
Najib said KWAP has also achieved a 6.5% average gross return on investment in the span of 10 years.
“Even when global prospects are uncertain due to external challenges in investment and the economic climate in the past few years, I believe KWAP will continue to show positive and consistent financial performance,” he added.
Meanwhile, Wan Kamaruzaman told reporters that KWAP would only consider whether or not to invest in Bandar Malaysia, after a new master developer was roped in.
He said the pension fund would study the master developer before committing to any sort of investment.
“We have to look at the opportunities and who is the master developer. If we believe the partner is right, we may look at being part of it as we don’t have the ability to do it ourselves,” said Wan Kamaruzaman.