PM: Govt to tighten procedures after weaknesses found in KWAP’s Jakarta investment
Malaysian Prime Minister Anwar Ibrahim announced plans to tighten investment procedures for the Retirement Fund (KWAP) following losses in a Jakarta-based aquaculture project. The government aims to reduce reliance on international trends and improve internal accountability.
Why it matters
The move reflects a shift in governance strategy to better protect public pension funds from risky international investments.
KUALA LUMPUR: A recent investment in Jakarta exposed weaknesses in the Retirement Fund, Inc (KWAP) investment process as it relied too heavily on international trends, says Datuk Seri Anwar Ibrahim.
The Prime Minister said the investment highlighted the need to tighten safeguards when investing public funds, despite due diligence and stringent investment committee procedures.
"I found that the due diligence and investment committee processes before proposals are brought to the board are structured and stringent.
"However, I believe the recent investment in Jakarta exposed a major weakness, as they merely followed international trends.
"I acknowledge that this was a weakness in the process. I accept the reminder that, when safeguarding public funds entrusted to us, we must introduce even stricter procedures," he said during Prime Minister’s Question Time in the Dewan Rakyat on Tuesday (Oct 20).
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