How will KWAN’s mandatory inflows be calculated each year?

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KWAN’s Mandatory Annual Inflows Calculation Method

The National Trust Fund's (KWAN) net assets are projected to double within approximately 10 years, driven by consistent annual inflows totalling nearly RM800 million. These mandatory contributions are legally stipulated and are calculated based on specific percentages of key government revenues. The contribution rates are fixed by law and can only be altered through an amendment to the relevant Act.
Government Revenue Contribution

A foundational component of KWAN's annual mandatory inflows is derived from the government's projected revenue. Specifically, at least 0.1 per cent of the government's annual revenue is allocated to the fund. Based on estimates for Budget 2026, this contribution amounts to approximately RM343 million. This statutory allocation ensures a baseline funding stream for the trust fund.
Petronas Dividend Allocation

Another significant mandatory inflow into KWAN is a minimum of 2 per cent of the dividend received by the government from Petronas. This allocation is estimated to contribute around RM400 million annually to the fund. This provision links the trust fund's growth directly to returns generated from national oil and gas resources.
Export Duty on Depleting Natural Resources

The trust fund also receives a mandatory contribution calculated as a minimum of 2 per cent of the export duty collected on depleting natural resources. This calculation is made after any portion of this duty that is assigned to state governments has been deducted. This ensures that a portion of the revenue generated from the extraction of finite resources is channelled into a long-term national fund.
Legal Mandate and Transparency

These mandated contributions are not discretionary policy decisions but are legally binding requirements that must be transferred into the fund before the close of each financial year. The amounts involved are disclosed in the annual financial statements presented to the Dewan Rakyat, underscoring a commitment to transparency and accountability in the management of these funds. The framework established by the Act ensures that these contributions are consistent and predictable.

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How will KWAN’s mandatory inflows be calculated each year?

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