Kumpulan Wang Amanah Negara (National Trust Fund)

At a glance. KWAN is Malaysia's National Trust Fund, set up in 1988 to save part of the country's oil and gas wealth for future generations. Bank Negara Malaysia manages it. Assets were RM22.43B (about USD 5.0B) at end 2024. A 2026 Act passed by both Houses turns it into a statutory body with fixed yearly inflows and a cap on withdrawals. S4 S5 S1

Key points

• Average real return of about 6.0 percent a year since 1988, as stated in Parliament. S1
• PETRONAS has been the only contributor so far, with RM13.5B since 1988. S1
• New rules set inflows of nearly RM800M a year from federal revenue and PETRONAS dividends. S6
• Withdrawals capped at half the expected long-term real return; anything more needs Dewan Rakyat approval. S3
• Spending limited to education, healthcare and climate needs in contingencies. S4
• Portfolio was 82.65 percent debt securities and 17.35 percent equities at end 2019. S7

Interesting facts

• The 2026 Bill is the first full overhaul of the fund since 1988. S4
• It invested RM440M in Putrajaya Holdings when the developer of the new federal capital was set up in 1995. S7
• The new statutory body may not borrow, issue bonds or take government guarantees. S5

Mandate and goals

Save part of the proceeds of non-renewable resources, mainly petroleum, as intergenerational savings rather than a spending fund. S4 S1

• Build savings for future generations. S4
• Earn a long-term real return set by the Board with Minister approval. S1
• Cover contingency needs in education, healthcare and climate. S4
• Return target: Long-term real return rate set by the Board in line with the Strategic Asset Allocation S1

How it invests

Asset mix: Debt securities (end 2019) 82.65%, Equities (end 2019) 17.35% (as of 2021) S7

Published criteria

• Mandate widened from government and corporate debt (2006) to domestic equities (2012) and global equities and REITs (2018). S7
• Prudent spread across permitted asset classes. S4
• Strategic Asset Allocation approved by the Minister. S1

Past investments

Case studies

The 2026 National Trust Fund Act S4 S5 S3

• What: Parliament passed a Bill making KWAN a statutory body with a Board, fixed contributions and a withdrawal cap.
• When: July 2026
• Size: Nearly RM800M a year of new inflows
• Why: Contributions were fully voluntary and withdrawals had no limit, as a RM5B drawdown in 2021 showed.
• Outcome: Passed the Dewan Rakyat on 16 July and the Dewan Negara on 29 July 2026.

Investment process

Today a Board of Trustees oversees the fund and Bank Negara Malaysia administers it. Under the 2026 Act a Board governs a body corporate and the Minister approves the Strategic Asset Allocation. S5 S11 S1

1. Board proposes the long-term real return rate. S1
2. Minister approves the asset allocation. S1
3. Auditor General audits accounts tabled in Parliament each year. S5

How to approach: No public route for managers or partners; investments are run by the central bank. S1

Size and returns

• Headline size: RM22.43B (end 2024) (Total assets (balance sheet)) S4 S8
• In US dollars: about USD 5.02B. Converted at MYR 4.4715 per USD, 31 December 2024
• Investments, end 2022 (Auditor General): RM14.47B (Portfolio value, as of 2023) S9
• Return, Since 1988: 6.0 percent a year S1
• Size over time (MYR billion): 2020 20.9, 2024 22.43 S4 S10

Leadership

Governance and transparency

• Legal basis: National Trust Fund Act 1988, replaced by the National Trust Fund Act 2026 once in force S4 S5
• Oversight: Ministry of Finance; annual report and audited accounts to both Houses under the new Act S5
• Auditor: Auditor General of Malaysia under the 2026 Act S5
• Ministerial regulations under Clause 33 to be gazetted. S6
• Board replaces the trustee panel structure. S4

Transparency score: 2.5 of 10 (band 2 of 5). Our own 10-item rubric; see the methodology page.

• Published: total assets. S4
• Partly published: long-term returns, governance and mandate documents, named leadership. S1 S5 S11
• Not published: annual return, asset allocation, geographic or sector split, holdings or deal list, audited financial statements, regular reporting schedule. S4

History

Reports

• Bank Negara Malaysia Annual Report 2025: https://www.bnm.gov.my/documents/20124/21185005/ar2025_en_book.pdf S11

Common questions

How big is KWAN?

RM22.43B at end 2024, about USD 5.0B. S4

Who manages it?

Bank Negara Malaysia; its Governor sits on the Board of Trustees. S11

What changes in 2026?

Fixed contributions, a withdrawal cap and a statutory Board, after both Houses passed the Bill in July 2026. S5

Who funds it?

PETRONAS has contributed RM13.5B; the new law adds federal contributions. S1

What has it returned?

About 6.0 percent a year in real terms since 1988. S1

Related profiles

• National Fund of the Republic of Kazakhstan Kazakhstan · USD 73.8B
• State Oil Fund of the Republic of Azerbaijan (SOFAZ) Azerbaijan · USD 72.6B
• Hong Kong Future Fund Hong Kong SAR, China · HK$235.1B
• Chinggis Khaan Sovereign Wealth Fund (Mongolia) Mongolia · MNT 7.5T
• Sarawak Sovereign Wealth Future Fund Malaysia (Sarawak) · RM 8.6B
• Brunei Investment Agency (BIA) Brunei Darussalam · Not disclosed, estimate

All sovereign wealth funds in Asia · All savings and future generations funds · All funds in Malaysia

Sources

1. S1Bernama, debate on the National Trust Fund Bill
2. S2IFSWF, our members
3. S3Ministry of Finance Malaysia, statement on the KWAN Bill 2026
4. S4Ministry of Finance Malaysia, Dewan Rakyat passes the National Trust Fund Bill 2026
5. S5RTM, Dewan Negara passes the KWAN Bill 2026
6. S6Bernama, Dewan Negara debate on the KWAN Bill
7. S7Malaysiakini, about the National Trust Fund
8. S8Frankfurter, ECB reference rates, 31 December 2024
9. S9Malaysiakini, government investments in 2022 (Auditor General report)
10. S10Ministry of Finance Malaysia, minister speech on the KWAN (Amendment) Bill 2021
11. S11Bank Negara Malaysia, Annual Report 2025