Kumpulan Wang Persaraan ( KWAP ), a government retirement fund based in Kuala Lumpur, has unveiled Dana Iklim+, Malaysia’s first climate-focused investment fund, as part of efforts to advance the country’s sustainable finance agenda.  

With a target deployment of 2 billion ringgit ( US$472.9 million ), the fund aims to accelerate Malaysia’s transition to net zero by channelling institutional capital towards climate-focused investments across infrastructure, private equity, real estate, and nature-based solutions. Dana Iklim+ seeks to deliver both sustainable financial returns and measurable environmental outcomes, supporting the country’s transition to a low-carbon, climate-resilient economy.

As KWAP’s third catalytic investment programme, Dana Iklim+ builds on the foundation laid by Dana Pemacu and Dana Perintis, both of which were launched to catalyze Malaysia’s private markets and strengthen the country’s investment ecosystem. Dana Iklim+ advances this agenda by introducing a dedicated climate-focused investment strategy, mobilizing institutional capital towards measurable decarbonization and resilience outcomes.

Dana Iklim+ was launched by Yang Berhormat Datuk Seri Johari bin Abdul Ghani, minister of plantation and commodities and acting minister of natural resources and environmental sustainability, at the last day of the Kuala Lumpur Sustainability Summit 2025, held on October 14-16 at the Kuala Lumpur Convention Centre. The initiative reflects KWAP’s long-term commitment to achieve a net-zero investment portfolio by 2050, while expanding its role as a catalyst for sustainable economic growth through climate-focused investments that create lasting value for Malaysia.

Environmental impact  

Structured as a multi-asset investment strategy, Dana Iklim+ prioritizes opportunities that drive meaningful climate impact while generating sustainable long-term returns.

Hazman Hilmi Sallahuddin, chief investment officer of KWAP, comments: “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. Dana Iklim+ is an integral part of this effort and demonstrates how institutional capital can be mobilized 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 initiative is guided by KWAP’s impact measurement framework, which measures impact across six dimensions, including national alignment, climate resilience, and co-benefit indicators aligned with the United Nations Sustainable Development Goals ( SDGs ). The “+” in Dana Iklim+ represents these co-benefit indicators, which can have exponential impact from climate-focused investments, reflecting KWAP’s recognition that a credible climate strategy must also address interconnected development goals such as food security, clean water, energy access and inclusive economic growth.  

“Dana Iklim+ aims to deliver both environmental and financial impact, targeting the mitigation or reduction of up to one million metric tonnes of carbon dioxide equivalent through climate-aligned investments. This initiative reinforces KWAP’s role as a responsible institution, reflecting its long-term commitment to embedding sustainability into Malaysia’s financial ecosystem,” Hazman adds.

Dana Iklim+ is strategically aligned with key national frameworks, including the National Energy Transition Roadmap ( NETR ), Ekonomi Madani, and the Ministry of Finance’s GEAR-uP initiative, which collectively aim to accelerate private market participation, promote sustainable growth, and position Malaysia as a leader in green investment. The fund also supports Malaysia’s broader climate ambitions under the 13th Malaysia Plan, affirming KWAP’s leadership in driving the nation’s low-carbon transition.