A Leadership Shakeup at Malaysia's Largest Pension Fund: What's Next for KWAP?
This article first appeared in The Edge Malaysia Weekly, November 10-16, 2025.
In a move that’s sure to send ripples through Malaysia’s financial sector, Datuk Nik Amlizan Mohamed, the CEO of Retirement Fund Inc (KWAP), is reportedly stepping down after a five-year tenure at the helm of the country’s largest pension fund for civil servants. But here's where it gets controversial: while her departure seems imminent, the question of who will succeed her—and the direction KWAP will take under new leadership—remains shrouded in speculation.
Nik Amlizan, 57, assumed the CEO role on November 2, 2020, and her contract is set to expire at the end of this month. Despite her impressive track record, her next career move is unclear, and KWAP has yet to officially announce her successor. And this is the part most people miss: there’s growing chatter that the fund’s Chief Investment Officer (CIO), Hazman Hilmi Sallahuddin, is a frontrunner for the position, though an external candidate could also be in the running. When approached by The Edge, KWAP remained tight-lipped, stating only that Nik Amlizan continues to lead the organization and remains focused on its priorities. “We have no updates to share on leadership matters at this time,” they said in an email response.
According to an insider, Nik Amlizan’s departure is “more or less confirmed,” and her reputation and achievements should pave the way for equally prominent opportunities. However, the succession process appears far from settled. “Things are still pretty fluid,” the source noted, adding that both internal and external candidates are vying for the role.
Nik Amlizan’s journey with KWAP spans over a decade. She joined in 2007 as part of the pioneer team tasked with establishing the fund’s equity department, leveraging her background in economics and finance. She climbed the ranks before taking on the CEO role at Lembaga Tabung Angkatan Tentera (LTAT) in 2018, only to return to KWAP two years later. In a 2021 interview, she emphasized that her role went beyond investment returns, focusing on governance structures and checks and balances to ensure KWAP’s long-term sustainability.
But here’s the controversial part: KWAP hasn’t always been smooth sailing. In 2011 and 2012, the fund issued a RM4 billion loan to SRC International Sdn Bhd, a former subsidiary of 1Malaysia Development Bhd (1MDB), despite SRC reportedly failing to meet KWAP’s investment policy requirements. The federal government ultimately assumed the debt, and in 2022, KWAP confirmed the loan had been fully repaid. This episode raised questions about risk management and decision-making at the fund—questions that may resurface as new leadership takes the reins.
Despite past controversies, KWAP’s financial performance has shown resilience. Its fund size grew from RM147.48 billion in 2019 to RM169.82 billion in 2023, according to its latest annual report. As of December 31, 2023, its asset allocation stood at 48% in public equity, 36% in fixed income, 5% in real estate, 5% in private equity, 2% in infrastructure, and 4% in money markets. Notably, 70% of its public equity allocation is invested in domestic stocks, with the remaining 30% in international markets. Eighty-five percent of this equity exposure is managed internally, while the rest is outsourced.
Financially, KWAP’s net income surged to RM9.65 billion in 2023, up from RM6.67 billion in 2019. Its annualized time-weighted average return (TWRR) reached 8.2% in FY2023, a sharp rebound from 1.1% in 2022. These numbers underscore the fund’s recovery and growth under Nik Amlizan’s leadership.
As KWAP prepares for this leadership transition, one can’t help but wonder: Will the new CEO maintain the fund’s current strategy, or will they chart a different course? And how will they address the lingering concerns from past controversies? What do you think? Share your thoughts in the comments below—we’d love to hear your take on KWAP’s future.
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