# KWAP: Malaysia's Public-Sector Retirement Fund

> KWAP (Kumpulan Wang Persaraan (Diperbadankan), the Retirement Fund (Incorporated)) is Malaysia's largest public-sector pension fund, helping the Federal Government finance the pension liabilities of civil servants. By the end of 2024, its fund size reached RM185.6 billion.

- Category: companies
- Language: en
- Status: published
- Updated: 2026-07-28
- Canonical: https://negaraku.md/en/companies/kwap

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Every time a Federal civil servant retires, their pension money has to come from somewhere. That somewhere is KWAP — and at the end of 2024, its investment pocket was worth RM185.6 billion.

Kumpulan Wang Persaraan (Diperbadankan), or KWAP, is Malaysia's largest public-sector pension fund. Its task is layered: to collect government contributions, invest them for maximum returns, and help the Federal Government finance a pension bill that grows larger every year.

## What is KWAP and when was it established?

KWAP was established on **1 March 2007** under the **Retirement Fund Act 2007 (Act 662)**, replacing the repealed Pensions Trust Fund Act 1991 (Act 454). It receives contributions from the Federal Government, statutory bodies, local authorities and related agencies, then invests them to help the government meet its pension liabilities.

KWAP's three core functions:

- **Managing contributions** from the government and statutory bodies.
- **Administering and investing** the fund across various asset classes.
- **Paying pensions** to government retirees.

## Who is covered by KWAP?

KWAP covers **Federal civil servants** who are on the government pension scheme — not private-sector employees. Since **2015**, KWAP has taken over the role of the Post-Service Pension Division of the Public Service Department (JPA), and now acts as the **Federal Government's agent** paying pensions, gratuities and other benefits directly to retirees.

By 31 December 2024, KWAP was paying pensions to **more than 810,000 recipients**, up about 2.4% (nearly 19,000 people) compared with 2023. This differs from the EPF/KWSP, which is a savings fund for private-sector and non-pensionable public-sector employees.

## How big is KWAP compared with the EPF?

KWAP is large, but far smaller than the EPF (KWSP). The difference is easy to understand: KWAP covers only pensionable Federal civil servants, whereas the EPF covers millions of private-sector members.

| Measure | KWAP | KWSP / EPF |
|---|---|---|
| Fund / investment size | RM185.6 billion (end of 2024) | ~RM1.1 trillion (August 2023) |
| Group covered | Pensionable Federal civil servants | Private-sector & non-pensionable public-sector employees |
| Source of funds | Federal Government contributions | Employer & employee contributions |

In other words, the EPF's fund is about six times larger than KWAP's.

## How has KWAP's investment performance been?

The year 2024 was a record year. Investment income reached **RM18.0 billion** — the highest in KWAP's history — with an **overall return of 12.0%**. Domestic investments returned 12.9% while the international portfolio returned 9.0%.

| Year | Fund size | Income | Overall return |
|---|---|---|---|
| 2022 | RM158.1 billion | — | — |
| 2023 | RM169.8 billion | RM9.7 billion (net income) | 8.2% |
| 2024 | RM185.6 billion | RM18.0 billion (investment income) | 12.0% |

Note: KWAP reported the 2023 figure as *net income* (RM9.7 billion) and the 2024 figure as *investment income* (RM18.0 billion) — two different measures, so the two cannot be compared directly to conclude that income "doubled". The measures that are consistent across both years are the overall return (8.2% versus 12.0%) and the fund size.

The fund size rose by RM15.8 billion (9.3%) in 2024. The gross increase was actually RM20.8 billion, but part of it was offset by a RM5 billion drawdown to help the government finance its pension liabilities.

## How is KWAP's fund invested?

KWAP's portfolio leans towards equities and fixed income, with the remainder in alternative assets. Here is the asset allocation as at 31 December 2024:

| Asset class | Allocation (2024) |
|---|---|
| Equities | 51.7% |
| Fixed income | 32.4% |
| Private equity | 5.4% |
| Real estate | 5.2% |
| Infrastructure | 2.2% |
| Cash / money market | remainder |

Geographically, 74.6% of the fund was invested domestically and 25.4% abroad at the end of 2024.

## What's next

KWAP's structural challenge is clear: the number of retirees keeps growing, so pressure on the government's pension liabilities will rise. To stay up to date, follow:

- **KWAP's Annual Report** and fund-size media releases for the latest figures.
- The **Federal Budget** to see the government's annual pension allocation.
- Developments in public-sector pension reform through official government announcements.

Check KWAP's and the Ministry of Finance's official sources before making any retirement-related decisions.

## Sources

- Overview — KWAP — https://www.kwap.gov.my/corporate/overview/ (Kumpulan Wang Persaraan (Diperbadankan))
- KWAP Sees Unprecedented Growth — RM15.8 billion Increase in 2024 — https://www.kwap.gov.my/media-centre/kwap-sees-unprecedented-growth-rm15-8-billion-increase-in-2024-2/ (Kumpulan Wang Persaraan (Diperbadankan))
- KWAP Fund Size Grew to RM169.8 billion, an increase of RM11.7 billion in 2023 — https://www.kwap.gov.my/media-centre/kwap-fund-size-grew-to-rm169-8-billion-an-increase-of-rm11-7-billion-in-2023/ (Kumpulan Wang Persaraan (Diperbadankan))
- EPF's investment funds stand at RM1.1 trillion as of August 2023 — https://www.mof.gov.my/portal/en/news/press-citations/epf-s-investment-funds-stand-at-rm1-1-trillion-as-of-august-2023-steven-sim (Kementerian Kewangan Malaysia)

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