KUALA LUMPUR, July 16 — Malaysia has tapped its RM22.43 billion National Trust Fund (KWAN) only twice in nearly four decades, including to fund Covid-19 vaccines, Putrajaya told Parliament today as the government moved to tighten withdrawal rules.
The Dewan Rakyat this afternoon debated the National Trust Fund Bill 2026, which Deputy Finance Minister Liew Chin Tong said aims to overhaul the management of the fund, including introducing an annual spending cap.
“The principle underlying this reform is clear. The resources we enjoy today do not belong to us alone; we hold them in trust for future generations,” Liew said.
“Therefore, while meeting current needs, the government is also responsible for ensuring that a portion of the nation’s wealth continues to be preserved, grown, and remains available for the future.”
Under the proposed law, the fund will receive a steadier flow of state contributions, while annual withdrawals will be capped at 50 per cent of its expected long-term real investment returns to preserve the national savings fund.
Any larger drawdowns will require direct parliamentary approval, Liew told lawmakers.
“This record reflects the original intention behind the establishment of KWAN as a long-term national savings fund, to be used only when absolutely necessary,” Liew said.
Established in 1988, the fund has been utilised only twice: a RM42 million drawdown in 1998 for a wetland sanctuary project, and RM5 billion between 2021 and 2023 to secure Covid-19 vaccines during the pandemic.
State energy company Petronas has been the fund’s sole contributor since its inception, injecting RM13.5 billion and helping KWAN grow to RM20.7 billion over nearly four decades.
The new Bill will diversify its funding sources by requiring the federal government to contribute at least 0.1 per cent of its projected annual revenue.
Petronas will also be required to channel 2 per cent of its dividends into KWAN, alongside a 2 per cent levy on export duties from depleting natural resources such as crude oil and mineral ores.
Future spending from the fund will also be restricted exclusively to education, healthcare, and climate change mitigation and adaptation, Liew said.
Date: 16 July, 2026 3:05 pm
Source: Malay Mail
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