Malaysian pension fund Kumpulan Wang Persaraan (Diperbadankan), or KWAP, has launched the country’s first climate-focused investment fund, with a target deployment of RM2 billion (€406 million).
The ‘Dana Iklim+’ fund will channel institutional capital towards climate-focused investments across infrastructure, private equity, real estate, and nature-based solutions, KWAP said in a statement, as well as seeking to accelerate Malaysia’s transition to net zero.
Dana Iklim+ is KWAP’s third catalytic investment programme, following on from Dana Pemacu and Dana Perintis, which helped to strengthen the country’s investment ecosystem.
Climate-focused investment strategy
‘Dana Iklim+ advances this agenda by introducing a dedicated climate-focused investment strategy, mobilising institutional capital towards measurable decarbonisation and resilience outcomes,’ the pension fund said.
The fund’s structure follows KWAP’s impact measurement framework, which assesses performance across six dimensions, including national alignment, climate resilience, and co-benefits linked to the United Nations Sustainable Development Goals. The ‘+’ in the fund’s name represents these co-benefits, which encompass areas such as food security, clean water, energy access, and inclusive growth.
It also reflects KWAP’s own commitment to achieve a net-zero investment portfolio by 2050, and expand its role as a catalyst for sustainable economic growth in Malaysia and the surrounding region.
‘Advancing the transition’
“As a responsible institutional investor, KWAP is taking a significant step forward in advancing the nation’s transition to a low-carbon, climate-resilient economy,” commented Hazman Hilmi Sallahuddin, chief investment officer at KWAP.
“Dana Iklim+ is an integral part of this effort and demonstrates how institutional capital can be mobilised to drive both environmental impact and sustainable economic growth. Through this fund, we aim to invest in solutions that create lasting value for Malaysia’s future.”
The investment fund was launched by Yang Berhormat Datuk Seri Johari bin Abdul Ghani, Malaysia’s minister of plantation and commodities and acting minister of natural resources and environmental sustainability, at the Kuala Lumpur Sustainability Summit (KLSS) 2025. Read more here. Main image from KWAP website.
