KWAP allocates US$1.28bil for private capital investment via Dana Pemacu

KWAP allocates US$1.28bil for private capital investment via Dana Pemacu
  • Identifying vital economic sectors and impact-related topics under the Ekonomi MADANI
  • 50 % may be Shariah- focused, unlocking Muslim capital investment, create greater effect

Minister of Finance II Amir Hamzah Azizan (4th from left), officiated the launch of Dana Pemacu with Nik Amlizan Mohamed (3rd from left), CEO of KWAP and other executives.

Malaysian Anwar Ibrahim announced today that Kumpulan Wang Persaraan ( Diperbadankan ) ( KWAP ) will invest US$ 640 million ( RM3 billion ) in Shariah compliant investments, making up 50 % of the total Dana Pemacu capital commitment of US$ 1.28 billion ( RM6 billion ). Anwar gave a speech at Kuala Lumpur’s International Forum on Islamic Economics and Finance.

Dana Pemacu will be a Malaysia- focused personal equity investment strategy, targeting key financial sectors including food security, education, gold economy and healthcare, energy transition, modern economy, financial inclusion, and other impact- related critical themes under the Ekonomi MADANI framework.

In partnership with local talent and renowned international investment managers across three distinct asset classes: private equity, infrastructure, and real estate, Dana Pemacu will be executed using Separately Managed Account ( SMA ) funds.

” The government’s broad reform, which includes the introduction of Dana Pemacu by KWAP, is in line with the government’s plan to maximize GLIC administrative funds to encourage investments in high-growth Indonesian companies, thereby supporting efforts to raise the roof under the MADANI platform. Amir Hamzah Azizan, the minister of finance II, officiated the release of Dana Pemacu, adding that Dana Pemacu’s collaboration with domestic and international funding professionals may help improve Malaysia’s secret industry ecosystem.

The RM6 billion funding commitment will be made using standard and Shariah-compliant SMAs, with 50 % being Shariah-focused. This will increase the potential of Muslim equity capital in improving the overall exclusive markets and promoting social and socially responsible investing opportunities.

” We think that Dana Pemacu is instrumental for the growth and progress of the country,” said Nik Amlizan Mohamed, CEO of KWAP. Our intention is to use this money to fund the development of partnership models between local talent and international fund managers, which will help to establish the Malaysian private market investment ecosystem. Additionally, this initiative will promote industry networking and knowledge transfer as well as bringing global best practices and expertise to the local market.

Nik added that the newly launched capital investment supports KWAP’s aspirations to support more local businesses to expand both domestically and internationally through both conventional and Shariah-compliant channels. This ultimately strengthens the financial markets and promotes the development of local talent in Malaysia.

The move also supports Malaysia’s pursuit of transforming its industrial sector to be more competitive, sustainable, and inclusive under the NIMP 2030 plan of the MADANI Economy, through financing projects related to private equity, infrastructure, and real estate sectors.

With Dana Pemacu as its investment strategy, KWAP said it is still working to ensure the fund’s best returns in order to help the government with paying its pension liabilities.