KWAP Launches Dana Iklim+ to Catalyse Malaysia’s Sustainable Investment Ecosystem

KUALA LUMPUR, October 21, 2025 – In a move that underscores Malaysia’s growing commitment to sustainable finance, Kumpulan Wang Persaraan (Diperbadankan) [KWAP] has launched Dana Iklim+, the country’s first climate-focused investment fund. The RM2 billion fund aims to accelerate Malaysia’s Net Zero transition by directing institutional capital toward climate-aligned investments spanning infrastructure, private equity, real estate, and nature-based solutions.

The launch marks a defining moment for Malaysia’s pension and sovereign investment landscape, embedding sustainability and measurable impact into long-term financial strategy. Dana Iklim+ seeks to generate sustainable returns while delivering quantifiable environmental outcomes, positioning itself as a cornerstone in the nation’s journey toward a low-carbon, climate-resilient economy.

Driving Climate Impact Through Institutional Capital

Launched at the Kuala Lumpur Sustainability Summit (KLSS) 2025 by Datuk Seri Johari bin Abdul Ghani, Minister of Plantation and Commodities and Acting Minister of Natural Resources and Environmental Sustainability, the fund represents KWAP’s third catalytic investment programme after Dana Pemacu and Dana Perintis. While its predecessors focused on energising Malaysia’s private markets, Dana Iklim+ introduces a dedicated climate investment strategy designed to channel institutional finance into projects that deliver measurable decarbonisation and resilience 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, Chief Investment Officer at KWAP. “Dana Iklim+ 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.”

A Multi-Asset Approach with Measurable Outcomes

Structured as a multi-asset investment strategy, Dana Iklim+ prioritises projects that balance climate impact with financial viability. Guided by KWAP’s impact measurement framework, the fund measures its success across six key dimensions — including national alignment, climate resilience, and co-benefits tied to the United Nations Sustainable Development Goals (SDGs).

The “+” in Dana Iklim+ signifies the fund’s focus on co-benefit indicators — such as food security, clean water, energy access, and inclusive economic growth — reflecting KWAP’s recognition that a credible climate strategy must address interconnected development challenges.

KWAP targets mitigation or reduction of up to one million metric tonnes of CO₂e through its investments, demonstrating tangible climate impact alongside financial performance.

Dana Iklim+ is strategically aligned with key national initiatives, including the National Energy Transition Roadmap (NETR), Ekonomi MADANI, and the Ministry of Finance’s GEAR-uP framework. These programmes collectively aim to mobilise private investment, stimulate sustainable growth, and position Malaysia as a regional leader in green finance.

The fund also complements Malaysia’s broader climate ambitions under the 13th Malaysia Plan, reflecting KWAP’s long-term goal of achieving a Net Zero investment portfolio by 2050.

“Dana Iklim+ aims to deliver both environmental and financial impact, reinforcing KWAP’s role as a responsible institutional investor,” Hazman added. “It reflects our commitment to embedding sustainability into Malaysia’s financial ecosystem and strengthening the country’s resilience against climate risks.”

Catalysing a Sustainable Investment Ecosystem

By bridging institutional capital with climate-aligned investment opportunities, KWAP’s Dana Iklim+ is expected to catalyse Malaysia’s sustainable investment ecosystem, encouraging collaboration across the private and public sectors. Its multi-asset approach allows flexibility to invest in scalable projects that align economic growth with environmental stewardship.

As Malaysia intensifies its Net Zero ambitions, Dana Iklim+ sets a new benchmark for how public funds can drive systemic change — ensuring the nation’s financial resilience evolves in tandem with its climate commitments.