What is KWAP doing to recover its RM163.4 million investment?

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KWAP is actively pursuing recovery avenues and enhancing investment processes following its RM163.4 million investment in eFishery.

KWAP is undertaking comprehensive measures to recover its investment in eFishery, which amounted to RM163.4 million. These efforts include a thorough internal review of the situation and strengthening of the fund's overall investment procedures. The fund is also exploring broader diversification strategies for its private market investments, increasing its reliance on experienced external fund managers, and implementing more robust post-investment monitoring mechanisms.
Pursuing All Available Recovery Options

KWAP is committed to recovering as much of the RM163.4 million investment as possible. This involves actively exploring every available avenue to recoup the funds. The fund's actions are geared towards maximising returns from the investment, despite the challenges encountered.
Conducting a Comprehensive Internal Review

A significant step being taken by KWAP is the undertaking of a comprehensive internal review. This review aims to understand the circumstances surrounding the investment and identify any internal shortcomings or areas for improvement. The findings of this review are being presented to KWAP's board, with follow-up actions to be carried out according to established accountability processes.
Strengthening Investment Processes and Controls

In response to the situation, KWAP is focused on strengthening its investment processes. This includes broadening the diversification of its private market investments to mitigate risks. Additionally, the fund is increasing its use of experienced external fund managers, who bring specialized expertise to the table. Enhanced post-investment monitoring is also a key measure being implemented to ensure closer oversight of investments.
Addressing Concerns Over Investment Impact

While recovery efforts are ongoing, KWAP has stated that it is too early to conclude the entire investment has been written off. The fund has also clarified its operational structure, emphasizing that it manages pension payments on behalf of the government and does not have individual savings accounts for civil servants that are directly reduced by investment losses. The eFishery investment, representing less than one percent of KWAP's 2024 investment income and less than 0.1 percent of its total assets under management, is not considered to have a material impact on the fund's financial position or its ability to meet pension obligations.

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What is KWAP doing to recover its RM163.4 million investment?

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