PETALING JAYA: Kumpulan Wang Persaraan (Diperbadankan) (KWAP) welcomes Budget 2027 and the government’s continued commitment to realising the Madani Economy vision.
KWAP also welcomes the government’s commitment to reducing the fiscal deficit to 3.3% of gross domestic product (GDP) in 2027, from a projected 3.6% in 2026. This target reflects the government’s continued efforts to strengthen public finances through gradual consolidation, enhance economic resilience and create greater flexibility to address future challenges.
CEO Datuk Jay Khairil Jeremy Abdullah said, “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.”
By deploying capital strategically in Malaysia, he added, they aim to support the development of local businesses, strengthen key sectors and encourage greater private capital participation.
Beyond investments, Jay Khairil said they are contributing to the government’s broader efforts in improving the rakyat’s wellbeing through the implementation of the revised minimum wage.
“These are areas where KWAP can contribute meaningfully to nation-building while remaining focused on our responsibilities as a long-term institutional investor,” he said, adding that KWAP plans to mobilise capital across private markets, strategic sectors and the domestic capital market, subject to KWAP’s investment processes, risk-return considerations, and market conditions.
This includes RM1.5 billion through Dana Pemacu to strengthen local fund management capabilities, crowd in private capital, and provide Malaysian businesses with greater access to growth-stage financing; RM200 million through Dana Perintis to spur Malaysia’s startup and innovation ecosystem, and RM1 billion through Dana Iklim+ towards climate-focused investments to facilitate Malaysia’s energy transition.
KWAP intends to allocate up to RM1 billion towards the semiconductor sector, supporting opportunities across the value chain and strengthening Malaysia’s domestic capabilities and industrial competitiveness.
Further to these commitments, KWAP plans to channel RM750 million through Projek Vista Kampus for purpose-built student accommodation across selected local public and private universities to support Malaysia’s higher education infrastructure needs.
To strengthen Malaysia’s innovation ecosystem, the government and KWAP will establish the RM50 million UniVC Fund to support the commercialisation of university research and encourage greater private capital participation in homegrown innovation.
Budget 2027 included an increase in the minimum monthly pension from RM1,000 to RM1,350, benefiting nearly 59,000 pensioners and recipients of derivative pensions, among others. In addition, special financial assistance of RM750 will be extended to government retirees.
This reaffirms KWAP’s role as a government-linked investment company in mobilising long-term capital to support the nation’s economic priorities, while remaining firmly guided by its mandate under the Retirement Fund Act 2007 [Act 662], fiduciary responsibilities and commitment to Malaysian pensioners.
