Malaysia’s public sector pension fund, Kumpulan Wang Persaraan, or KWAP, has launched “Dana Iklim+,” the country’s first climate fund, earmarking RM2 billion ($420 million) to accelerate South Asian nation’s transition to a low-carbon economy.
The initiative marks a key step in Malaysia’s sustainable finance agenda and highlights KWAP’s long-term goal of achieving a net-zero investment portfolio by 2050.
Climate-Positive Investments
KWAP said “Dana Iklim+” will channel institutional capital into climate-related investments spanning infrastructure, private equity, real estate and nature-based solutions. The climate fund aims to deliver sustainable returns while producing measurable environmental outcomes.
“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,” said Hazman Hilmi Sallahuddin, KWAP’s chief investment officer. “Through this fund, we aim to invest in solutions that create lasting value for Malaysia’s future.”
Hazman said the fund is expected to support projects capable of reducing up to 1 million metric tonnes of carbon dioxide equivalent through targeted climate-aligned investments.
Third Catalytic Programme Builds on Earlier Funds
“Dana Iklim+” is KWAP’s third catalytic investment program after “Dana Pemacu” and “Dana Perintis,” both launched to develop Malaysia’s private markets and strengthen its investment ecosystem.
Unlike the earlier initiatives, the climate fund introduces a dedicated investment strategy, mobilizing capital toward decarbonization and resilience outcomes.
The fund was launched by Acting Natural Resources and Environmental Sustainability Minister Datuk Seri Johari Abdul Ghani during the Kuala Lumpur Sustainability Summit 2025.
Multi-Asset Strategy
Structured as a multi-asset investment strategy, “Dana Iklim+” prioritizes opportunities that deliver meaningful climate impact and long-term value creation.
The initiative is guided by KWAP’s impact measurement framework, which tracks progress across six dimensions including national alignment, climate resilience and co-benefit indicators tied to the United Nations Sustainable Development Goals.
The “+” in the fund’s name symbolizes these co-benefits, which address interconnected issues such as food security, clean water, energy access and inclusive economic growth.
KWAP said “Dana Iklim+” aligns with Malaysia’s key policy frameworks, including the National Energy Transition Roadmap, Ekonomi MADANI, and the Finance Ministry’s GEAR-uP initiative.
These frameworks are designed to boost private market participation, promote sustainable growth and position Malaysia as a regional hub for green investment.
By supporting the country’s climate objectives under the 13th Malaysia Plan, the climate fund reinforces KWAP’s role as a catalyst for sustainable economic growth and as a leading driver of Malaysia’s low-carbon transition.
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