National Trust Fund’s net assets expected to double within 10 years

Published July 29, 2026 at 11:31 PM UTC

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Key Points

KWAN projected to double net assets in 10 years
Established in 1988, grew to RM22.43 billion by end-2024
Utilized only twice: RM42 million in 1998, RM5 billion for COVID-19 vaccines
National Trust Fund Bill 2026 passed to strengthen governance and growth

Background History

The National Trust Fund (KWAN) was established in 1988 to serve as Malaysia's intergenerational savings fund, ensuring sustainable financial reserves for both present and future generations. Over nearly four decades, KWAN has grown to RM22.43 billion by the end of 2024, primarily through contributions from state energy company Petronas. The fund has been utilized sparingly, with withdrawals occurring only twice in its history: a RM42 million drawdown in 1998 for a wetland sanctuary project and RM5 billion between 2021 and 2023 to secure COVID-19 vaccines during the pandemic. The Malaysian government has recently passed the National Trust Fund Bill 2026, aiming to strengthen the fund's governance and ensure its growth. The bill introduces legally binding provisions governing contributions, withdrawals, and investments, with the goal of safeguarding the nation's wealth for future generations. Under the new framework, the federal government is required to contribute at least 0.1% of its projected annual revenue to KWAN, and Petronas is mandated to channel 2% of its dividends into the fund. Additionally, a 2% levy on export duties from depleting natural resources, such as crude oil and mineral ores, will be directed to KWAN. These measures are designed to provide a more consistent inflow of funds and promote fiscal discipline. The National Trust Fund Bill 2026 was passed by the Dewan Rakyat on July 16, 2026, marking the first comprehensive reform of KWAN since its establishment. The bill reflects the government's commitment to strengthening public financial management and ensuring that today's national revenues continue to benefit future generations. The projected doubling of KWAN's net assets within the next ten years underscores the government's efforts to build a sustainable financial reserve for Malaysia's future.

Malaysia's National Trust Fund (KWAN) is projected to double its net assets within the next decade, according to recent government projections. Established in 1988, KWAN has grown to RM22.43 billion by the end of 2024, primarily through contributions from state energy company Petronas. The fund has been utilized sparingly, with withdrawals occurring only twice in its history: a RM42 million drawdown in 1998 for a wetland sanctuary project and RM5 billion between 2021 and 2023 to secure COVID-19 vaccines during the pandemic. The Malaysian government has recently passed the National Trust Fund Bill 2026, aiming to strengthen the fund's governance and ensure its growth. The bill introduces legally binding provisions governing contributions, withdrawals, and investments, with the goal of safeguarding the nation's wealth for future generations. Under the new framework, the federal government is required to contribute at least 0.1% of its projected annual revenue to KWAN, and Petronas is mandated to channel 2% of its dividends into the fund. Additionally, a 2% levy on export duties from depleting natural resources, such as crude oil and mineral ores, will be directed to KWAN. These measures are designed to provide a more consistent inflow of funds and promote fiscal discipline. The National Trust Fund Bill 2026 was passed by the Dewan Rakyat on July 16, 2026, marking the first comprehensive reform of KWAN since its establishment. The bill reflects the government's commitment to strengthening public financial management and ensuring that today's national revenues continue to benefit future generations. The projected doubling of KWAN's net assets within the next ten years underscores the government's efforts to build a sustainable financial reserve for Malaysia's future.