THE Finance Ministry (MOF) is confident that the Retirement Fund (Incorporated) which launched the Teras 5 initiative today can sustainably grow its fund to a total gross of RM200 billion by 2025.

Finance Minister Tengku Zafrul Abdul Aziz said the fund also aims to increase the number of its property assets to more than 30 from 17 and have more than 35 subsidiaries within the same period.

“The fund has thrived as a company group that has expanded its investment portfolio three-fold from funds worth RM41.9 billion in 2007 to around RM159 billion today,” he said at the launch of the fund’s transformation plan in Kuala Lumpur today.

Teras 5 is part of a long-term policy plan to increase the size of the fund more effectively and remain sustainable.

Tengku Zafrul said that as key players and investors, government-linked companies (GLCs) and government-linked investment companies (GLICs) are an important pillar of Malaysia’s economic base and contribute approximately RM445 billion or 25% of the Bursa Malaysia market and provide employment opportunities to more than 500,000 in Keluarga Malaysia.

The fund’s chief executive officer Nik Amlizan Mohamed said the launch of Teras 5 proves the fund’s commitment as a driver of sustainable growth for the organisation and also the pension ecosystem in Malaysia.

“Currently, there are 17 companies under the fund including 14 special purpose vehicles and two subsidiaries,” he said at the Teras 5 launch ceremony today.

Nik Amlizan added that last year the fund recorded the highest unaudited net income amounting to RM10 billion.

Teras 5 involves the empowerment of five key enablers namely structure, governance, human capital, process and digital. – Bernama, August 3, 2022.