KWAP was established on 1 March 2007 under the Retirement Fund Act 2007 (Act 662) to manage and invest contributions in order to help the Federal Government finance the pension liabilities of civil servants. At the end of 2024, its fund size was RM185.6 billion with a record investment income of RM18.0 billion. Since 2015, KWAP has also acted as the government's agent in paying pensions to more than 810,000 recipients.
- KWAP was established on 1 March 2007 under Act 662, replacing the Pensions Trust Fund Act 1991 (Act 454).
- The fund size grew by RM15.8 billion (9.3%) to RM185.6 billion in 2024, with an overall return of 12.0%.
- KWAP is far smaller than the EPF/KWSP (investment funds of around RM1.1 trillion), because it covers only Federal civil servants, not private-sector employees.
- Since 2015 KWAP has been the government's agent paying pensions to more than 810,000 recipients as at the end of 2024.
Who this applies to: Federal civil servants, government retirees, public-policy students, and anyone wishing to understand Malaysia's public-sector pension system.
On this page
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KWAP was established on 1 March 2007 under the Retirement Fund Act 2007 (Act 662), replacing the repealed Pensions Trust Fund Act 1991 (Act 454).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.
What is the difference between KWAP and the EPF (KWSP)?
KWAP covers the pensions of Federal civil servants and is funded by government contributions; the EPF/KWSP is a savings fund for private-sector and non-pensionable public-sector employees. The EPF's investment funds (around RM1.1 trillion as of August 2023) are far larger than KWAP's (RM185.6 billion at the end of 2024).
Does KWAP pay my pension directly?
Yes, for Federal Government retirees. Since 2015, KWAP has taken over the function of the Post-Service Division of the Public Service Department (JPA) and acts as the government's agent in paying pensions, gratuities and other benefits.
How large is KWAP's fund size?
RM185.6 billion as at 31 December 2024, up from RM169.8 billion (2023) and RM158.1 billion (2022).
The following are deliberately unstated or described only qualitatively until confirmed by a subject-matter expert:
- Peranan pencen tentera: sumber hanya sahkan KWAP menampung pesara penjawat awam Persekutuan; pencen tentera biasanya dikendalikan LTAT — perlu disahkan manusia.
- Perbandingan saiz EPF vs KWAP menggunakan tarikh rujukan berbeza (EPF ~RM1.1 trilion pada Ogos 2023 vs KWAP RM185.6 bilion pada akhir 2024) — sahkan angka EPF yang lebih terkini jika ada.
- Angka pendapatan 2023 (pendapatan bersih RM9.7b) dan 2024 (pendapatan pelaburan RM18.0b) ialah ukuran berbeza; pastikan pembaca tidak menganggap ia setara.
- Sebarang perkembangan reformasi pencen (mis. skim caruman tertakrif untuk penjawat awam baharu) perlu dirujuk kepada sumber rasmi sebelum dinyatakan.
- Masa lazim penerbitan Laporan Tahunan / siaran media KWAP tidak disahkan oleh sumber rasmi.
Sources
- Overview — KWAP — Kumpulan Wang Persaraan (Diperbadankan)
- KWAP Sees Unprecedented Growth — RM15.8 billion Increase in 2024 — Kumpulan Wang Persaraan (Diperbadankan)
- 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 — Kementerian Kewangan Malaysia
Change history
| Version | Date | Change | By |
|---|---|---|---|
| 01.00 | 28 Jul 2026 | Approved and published. | — |