KUALA LUMPUR (Jan 23): Kumpulan Wang Persaraan (Diperbadankan) (KWAP) is structurally ready to assume a portion of the Malaysian government's over RM300 billion pension liabilities, The Edge Malaysia business and investment weekly (Edge Weekly) reported in its latest Jan 25 to 31 issue.

Edge Weekly quoted KWAP CEO Wan Kamaruzaman Wan Ahmad as saying the
retirement fund would be able to assume a part of the government's pension burden if KWAP was able to grow its fund size to RM150 billion.   
 
“If we can close the gap to about 50% of the pension liabilities, I think it is something very workable for KWAP to undertake. There needs to be a time frame, in which we can take on the pension liabilities on a gradual
basis.

"Within three years, we should hit RM150 billion or maybe slightly
more,” Kamaruzaman said.

According to him, KWAP's prelimimary estimates indicate that its fund size could have risen some 8% to RM118 billion in 2015 from RM109.4 billion in 2014.

For 2016, Kamaruzaman said KWAP aimed to grow its fund size to about RM130.2 billion.

“(The pension liabilities) should be slightly higher today. That is why KWAP needs to grow faster and get a much higher return to close the pension liabilities gap.

"Unfortunately, there is only so much we can do in terms of investments. Because of our approach to risk management, we do take a little bit more of
a conservative profile. Ultimately, we need to protect our principal,” he said.

For a better understanding on KWAP under Kamaruzaman's stewardship , kindly pick up and read the latest Edge Weekly issue.

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