KUALA LUMPUR: The Ministry of Finance (MoF) is confident that the Retirement Fund (Incorporated) (KWAP) which launched the TERAS 5 initiative today can sustainably grow the size of its fund to a total gross fund of RM200 billion by 2025.

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said KWAP also aims to increase the number of property assets to more than 30 from 17 and have more than 35 subsidiaries within the same period.

"KWAP has thrived as a company group that has expanded its investment portfolio three-fold from funds worth RM41.9 billion in 2007 to around RM159 billion today," he said at the launch of the KWAP transformation plan here today.

TERAS 5 is part of a long-term policy plan to increase the size of the fund more effectively and remain sustainable.

Tengku Zafrul said that as key players and investors, government-linked companies (GLCs) and government-linked investment companies (GLICs) are an important pillar of Malaysia's economic base and contribute approximately RM445 billion or 25 per cent of the Bursa Malaysia market and provide employment opportunities to more than 500,000 in Keluarga Malaysia.

Meanwhile, KWAP chief executive officer Nik Amlizan Mohamed said the launch of TERAS 5 proves KWAP's commitment as a driver of sustainable growth for the organisation and also the pension ecosystem in Malaysia.

"Currently, there are 17 companies under KWAP including 14 special purpose vehicles and two subsidiaries," he said at the TERAS 5 launch ceremony today.

Nik Amlizan added that last year KWAP recorded the highest unaudited net income amounting to RM10 billion.

TERAS 5 involves the empowerment of five key enablers namely structure, governance, human capital, process and digital.

-- BERNAMA