Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698753664646.pdf (Malaysia)
BANGKIT KANDUNGAN FAKTA SEKILAS PANDANG 01 Fakta Sekilas Pandang MESEJ UTAMA 02 Bicara Bersama Pengerusi KWSP 08 Perutusan Ketua Pegawai Eksekutif MENCIPTA NILAI JANGKA PANJANG 15 Bagaimana KWSP Mencipta Nilai 16 Model Penciptaan Nilai KWSP LAPORAN KHAS 18 Inisiatif Luar Biasa bagi Situasi yang Tidak Terjangka PRESTASI 24 Sorotan Lima Tahun Kewangan 26 Menyusuri Jejak Kejayaan KWSP: 1951-2020 29 Struktur Korporat Kumpulan 30 68 Cawangan di Seluruh Malaysia 34 Diari Korporat 2020 TADBIR URUS 36 Pernyataan Tadbir Urus Korporat 43 Pernyataan Tadbir Urus Syariah bagi Simpanan Shariah 49 Laporan Jawatankuasa Penasihat Shariah 51 Pernyataan Pengurusan Risiko 59 Pernyataan Pengurusan Risiko dan Kawalan Dalaman 64 Laporan Jawatankuasa Audit Lembaga 67 Pernyataan Audit Dalam 69 Pernyataan Pengurusan Risiko Pelaburan PENGURUSAN 70 Ahli Lembaga 80 Ahli Silih Ganti Lembaga 81 Ahli Panel Pelaburan 85 Ahli Lembaga, Ahli Silih Ganti Lembaga dan Panel Pelaburan yang Baru Dilantik 86 Ahli Lembaga, Ahli Silih Ganti Lembaga dan Panel Pelaburan yang Menamatkan Perkhidmatan 87 Ahli Jawatankuasa Lembaga dan Panel Pelaburan 88 Ahli Jawatankuasa Penasihat Shariah 89 Struktur Organisasi 90 Ketua Pegawai Eksekutif, Ketua Pegawai Pelaburan, Ketua Pegawai Operasi, Ketua Pegawai Strategi, Ketua Pegawai Teknologi Digital dan Ketua Pegawai Kewangan 92 Pengurusan Kanan ULASAN BAHAGIAN 102 Bahagian Pelaburan 109
 Bahagian Operasi 116 Bahagian Strategi 121 Bahagian Teknologi Digital 125 Statistik KEWANGAN 133 Ringkasan Kewangan dan Analisis 137 Laporan Ketua Audit Negara 141 Penyata Kewangan 369 Hartanah KWSP di Malaysia 370 Glosari RASIONAL MUKA DEPAN Tahun 2020 merupakan tahun yang penuh dengan peristiwa tidak terjangka, dalam persekitaran yang tidak menentu, tiada kepastian, kompleks dan tidak jelas (VUCA), berikutan krisis kesihatan dan ekonomi.
KWSP telah bangkit mendepani cabaran dengan cekal, untuk terus mencipta dan menyampaikan nilai kepada pihak berkepentingan, dan pada masa yang sama berpegang pada matlamat terasnya.

VISI Membantu Ahli Mencapai Masa Depan Yang Lebih Baik MISI Melindungi Simpanan Ahli Dan Menyediakan Perkhidmatan Terbaik Integriti NILAI BERSAMA • • Penambahbaikan Berterusan • Utamakan Pelanggan • Semangat Kerja Berpasukan Imbas Kod QR untuk melayari laman web KWSP FAKTA SEKILAS P ANDANG W W W .

K W S P .

G O V .
M Y Ahli Maj ika n Me nc ar um ke pa da K WSP 14,887,988 7,591,053 merupakan ahli aktif yang masih mencarum 534,398 Caruman Tahuna n Diterima d arip a da Pekerja dan Majikan J um la h Pen ge lu ara n da n Pe ng e mb alian C ar u ma n RM78,414.74 juta RM58,294.50 juta Jumlah Aset RM1,000,372.15 juta Meningkat 8.13% daripada RM927,894.93 juta pada tahun 2019 Jumlah Pendapa ta n Pe laburan K a s ar RM63,450.22 juta Meningkat 24.65% daripada RM50,903.01 juta pada tahun 2019 Kadar Divide n Simpanan Konvensional 5.20% Bayaran Dividen RM42.88 bilion K ad ar Divid en Sim p an an S ha riah 4.90% Bayaran Dividen RM4.76 bilion 11 LAPORAN TAHUNAN 2020WWW.KWSP.GOV.MYFAKTA SEKILAS PANDANG1 Pada tahun 2020, kemunculan dan penularan COVID-19 telah menyebabkan berlakunya krisis global pada kadar dan skala yang tidak terjangka.
Walau bagaimanapun, di Malaysia, KWSP telah mengatasi cabaran yang timbul daripada pandemik ini dan mencatatkan prestasi kewangan yang mantap seterusnya mengekalkan rekod perkhidmatan pelanggan yang cemerlang.

Antara pencapaian ketara KWSP untuk tahun ini ialah inisiatif kemudahan COVID-19 untuk membantu ahli dan majikan yang terkesan oleh pandemik ini.
Untuk melaksanakan inisiatif ini dalam tempoh yang singkat, KWSP telah mempercepatkan proses transformasi digital dan membuat penyesuaian segera berdasarkan norma baharu iaitu bekerja dari rumah.
Tan Sri Ahmad Badri Mohd Zahir Pengerusi KWSP BICARA BERSAMA PENGERUSI KWSP 2 LEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20202MESEJ UTAMA BICARA BERSAMA PENGERUSI KWSP Kami berbicara dengan Pengerusi KWSP Tan Sri Ahmad Badri Mohd Zahir, tentang bagaimana KWSP menyesuaikan dengan persekitaran pandemik, prestasi kewangan yang mampan, dan perancangan masa hadapan.

S1.

Pandemik COVID-19 telah memberikan kesan buruk kepada ekonomi global serta menggugat kelangsungan perniagaan dan kehidupan.
Agensi dan institusi kerajaan, termasuk KWSP, turut menerima tempias akibat krisis kesihatan ini.

Bolehkah Tan Sri jelaskan bagaimana KWSP mengatasi pelbagai cabaran yang mencorakkan tahun 2020?

Kesan pandemik ini ke atas individu, masyarakat dan ekonomi memang sangat menyedihkan.
Dunia korporat, termasuk institusi kerajaan seperti KWSP, telah menghadapi pelbagai cabaran dalam tahun 2020, namun, tumpuan utama KWSP adalah untuk terus memelihara kesejahteraan ahli, serta secara amnya memelihara kesejahteraan rakyat.

KWSP berasa bangga apabila diiktiraf sebagai antara organisasi dana persaraan pertama di dunia yang menawarkan inisiatif kemudahan pengeluaran COVID-19 (rujuk Laporan Khas di halaman 18).
Inisiatif-inisiatif luar biasa KWSP telah menjadi talian hayat kepada ahli yang mengalami kesukaran untuk menampung perbelanjaan keperluan hidup mereka, dan kepada majikan yang terkesan akibat kejatuhan aktiviti ekonomi yang mendadak.

Di samping memberikan perkhidmatan kepada ahli dan majikan sepanjang tempoh krisis kesihatan dan ekonomi KWSP maklum bahawa ramai dalam kalangan ahlinya ini, KWSP juga melaksanakan transformasi dalaman.
yang mengalami masalah kewangan yang serius, manakala majikan pula terpaksa berdepan dengan Semasa PKP pertama diumumkan pada bulan Mac 2020, KWSP terus menyesuaikan diri untuk bekerja dari rumah.

Ini masalah kesempitan aliran tunai, terutamanya majikan merupakan peralihan mengejut daripada amalan bekerja yang tidak dapat beroperasi semasa pelaksanaan di pejabat yang telah menjadi kebiasaan.

perintah kawalan pergerakan (PKP).


Bagi mengurangkan gangguan ke atas tahap KWSP telah menjadi tonggak kekuatan dan kestabilan operasi dan perkhidmatan, KWSP telah menyediakan bagi rakyat Malaysia untuk sekian lamanya, dan ia tidak keperluan teknologi dan perkakasan dengan berlengah untuk bingkas membantu memenuhi keperluan segera kepada kakitangannya agar mereka dapat ahli dan majikan.

Sejak awal tahun 2020 lagi, matlamat mengekalkan produktiviti semasa bekerja dari rumah.
utama KWSP adalah untuk membantu ahli dan majikan Bagi menghadapi suasana bekerja jarak jauh, KWSP mendepani ancaman terhadap kelangsungan hidup dan juga telah memperkukuhkan sistem dan langkah- perniagaan yang disebabkan oleh pandemik ini.

langkah keselamatan siber bagi melindungi data ketika kakitangan melaksanakan kerja mereka di luar premis KWSP dan melalui platform dalam talian.
3 WWW.KWSP.GOV.MYLAPORAN TAHUNAN 20202MESEJ UTAMA BICARA BERSAMA PENGERUSI KWSP Apabila saya mengamati bagaimana KWSP beralih daripada menjalankan “operasi bukan seperti biasa” kepada “operasi seperti biasa” dengan lancar, saya percaya adalah tidak mustahil bagi KWSP untuk menjadi produktif walaupun melaksanakan kerja di luar pejabat.

Malah, kakitangan KWSP pula tanpa mengira usia, telah mahir S2.
Dengan merekodkan prestasi kewangan yang kukuh, KWSP telah mengatasi trend penurunan pulangan pelaburan pada tahun 2020.

Bolehkah Tan Sri memperincikan prestasi KWSP dan bagaimana ia dicapai?

menggunakan teknologi kerja jarak jauh Pada tahun 2020, KWSP telah mengisytiharkan dengan cepat.

kadar dividen 5.2% untuk Simpanan Konvensional dan 4.9% untuk Simpanan Salah satu rintangan utama yang perlu Shariah.
Sebanyak RM47.64 bilion (RM42.88 diatasi KWSP sepanjang tahun ini adalah bilion Simpanan Konvensional, dan RM4.76 menguruskan pelaburan dalam situasi bilion Simpanan Shariah) telah diagihkan pasaran kewangan yang tidak menentu dan kepada ahli KWSP, berbanding RM45.82 pada tidak dapat diramalkan.
Pasaran saham dan 2019. bon global mengalami pergolakan apabila pandemik mula tercetus di seluruh dunia, Jumlah aset pelaburan meningkat sebanyak manakala turun naik nilai aset menjadi tidak 8.15% kepada RM1,000.10 bilion.

KWSP terkawal.

juga mencatatkan pendapatan pelaburan kasar tertinggi sebanyak RM63.45 bilion dan Sebagai sebuah dana persaraan negara daripada jumlah ini, RM6.15 bilion mewakili dengan jumlah keahlian sekitar 15 juta, syer Simpanan Shariah.
Walaupun beroperasi KWSP perlu memenuhi mandatnya untuk dalam persekitaran yang mencabar, jumlah melindungi simpanan ahli pada setiap caruman yang diterima meningkat sebanyak masa.

Tanggungjawab ini menjadi lebih 3.27% dari 2019 menjadi RM78.41 bilion.

penting ketika berlakunya peristiwa di luar jangkaan.
Dalam menguruskan tempoh Prestasi kewangan yang mantap dan berlakunya turun naik dan ketidaktentuan mampan ini adalah berpangkal dari 250 di seluruh pasaran kewangan global, KWSP orang pegawai pelaburan KWSP.

Seperti telah mengambil langkah proaktif untuk yang saya nyatakan sebelum ini, pasukan membuat penyesuaian ke atas strategi pelaburan KWSP mengambil langkah- dan proses pelaburan.
Ini membolehkan langkah berhemat dan wajar sejak awal KWSP melindungi portfolio pelaburan dan tahun lagi untuk membuat penyesuaian dari merangsang pulangan untuk tahun ini.

segi strategi dan proses pelaburan KWSP.

Usaha mereka serta pendekatan pelaburan Tidak lengkap sekiranya saya tidak memberi yang berhemat telah meminimumkan penghargaan kepada kakitangan KWSP risiko dan mengoptimumkan pulangan yang tangkas menangani pelbagai cabaran walaupun pasaran ekuiti global mencatatkan dalam tahun 2020.
Pihak pengurusan dan penurunan dua digit dan pasaran bon global kakitangan KWSP merupakan barisan mengalami turun naik yang tidak menentu.

Jumlah aset pelaburan meningkat sebanyak 8.15% kepada RM1,000.10 bilion RM63.45 bilion mencatatkan pendapatan pelaburan kasar tertinggi RM6.15 bilion mewakili Simpanan Shariah Jumlah caruman yang diterima pada tahun 2020 meningkat sebanyak 3.27% hadapan organisasi semasa tempoh pandemik ini.
Mereka berhak mendapat penghargaan tinggi atas prestasi dan pencapaian kukuh KWSP sepanjang tahun yang sangat mencabar ini.

4 LEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20202MESEJ UTAMA BICARA BERSAMA PENGERUSI KWSP Saya ingin memberikan penekanan terhadap kualiti intrinsik pendekatan pelaburan berhemat yang diambil oleh KWSP.
Selama beberapa tahun ini, KWSP telah menggalakkan syarikat dan individu untuk bersiap sedia menghadapi dunia yang tidak stabil, tidak pasti, kompleks, dan tidak jelas (VUCA).

Pendekatan pelaburan berhemat ini, yang berpandukan Alokasi Aset Strategik KWSP, mencerminkan langkah-langkah yang telah diambil untuk menghadapi persekitaran VUCA dan ternyata ia berkesan dalam pasaran kewangan tahun 2020 yang S3.
Memandangkan pandemik ini masih belum reda pada akhir tahun 2020, tentunya terdapat isi rumah yang sedang mengalami masalah kewangan masih terpaksa menggunakan simpanan persaraan untuk menampung perbelanjaan harian mereka.

Situasi ini pastinya menjadi kebimbangan KWSP.

Bolehkah Tan Sri berkongsi pendapat mengenai perkara ini?

bergolak dan tidak dapat diramalkan.


Sebagai sebuah institusi yang sudah berusia 69 tahun, Pada akhir tahun 2020, jumlah aset KWSP terdiri daripada instrumen pendapatan tetap pada 46%, ekuiti pada 42%, manakala hartanah dan infrastruktur, serta instrumen pasaran wang, masing-masing pada 5% dan 7%.

Prestasi kewangan KWSP yang kukuh menunjukkan bahawa ia berupaya mencapai keseimbangan antara melindungi simpanan persaraan ahli dan memenuhi keperluan sara hidup mereka semasa krisis.
Keseimbangan ini tidak mudah dicapai.

KWSP sering berada dalam situasi sukar yang memerlukan kami untuk membantu ahli melalui tempoh yang mencabar ini, dan pada masa yang sama melindungi simpanan mereka untuk kesejahteraan masa depan mereka.

KWSP merupakan salah sebuah dana persaraan yang tertua di dunia.

Visi dan misi KWSP sememangnya adalah untuk memelihara simpanan ahli KWSP untuk membantu mereka menjamin masa depan yang lebih baik.
Pada tahun 2020, KWSP menyedari bahawa gangguan ekonomi dan sosial yang disebabkan oleh pandemik telah mengancam kehidupan dan kesejahteraan ramai rakyat Malaysia.

Masyarakat, terutamanya golongan rentan seperti pekerja berkemahiran rendah dan berpendapatan rendah, berhadapan dengan risiko kemiskinan tegar, manakala sektor perniagaan, terutamanya perusahaan kecil dan sederhana, terpaksa berjuang untuk terus bertahan.
Justeru, KWSP telah mengambil tindakan segera dan secara bermatlamat untuk membantu ahli dan majikan yang mengalami masalah kewangan.

Dengan membenarkan ahli untuk mengakses simpanan mereka, dan / atau mengurangkan caruman mereka, KWSP dapat membantu ahli memenuhi keperluan mendesak mereka.

Namun, dengan berbuat demikian, terdapat risiko nyata yang mana akan ada dalam kalangan ahli yang tidak mempunyai dana secukupnya untuk persaraan yang sejahtera kelak.
Pada pandangan saya, kenyataan pahit yang dicetuskan oleh pandemik COVID-19 ini telah merasionalkan pengeluaran simpanan persaraan oleh ahli yang seterusnya dibelanjakan dengan wajar bagi menampung keperluan asas mereka.

Kini, fokus KWSP adalah untuk membina semula simpanan persaraan ahli setelah Malaysia keluar daripada krisis ini.
5 WWW.KWSP.GOV.MYLAPORAN TAHUNAN 20202MESEJ UTAMA BICARA BERSAMA PENGERUSI KWSP Hanya 47.5% populasi dewasa yang bekerja di Malaysia dilindungi oleh KWSP Perlu ditekankan di sini bahawa hanya 47.5% populasi dewasa yang bekerja di Malaysia dilindungi oleh KWSP.

Adalah jelas, sebuah rangka kerja perlindungan sosial yang komprehensif dan bersepadu, yang S4.

Tan Sri, apakah yang boleh diharapkan dari KWSP pada tahun-tahun mendatang?
mengambil kira golongan paling rentan, Cabaran yang KWSP hadapi pada tahun diperlukan untuk menangani impak krisis 2020 telah membuktikan bahawa inisiatif pandemik ini ke atas kehidupan mereka digital dan strategiknya berada di landasan secara menyeluruh.

yang betul.
yang betul.

Saya menjangkakan bahawa terdapat keperluan untuk kita terus COVID-19 juga telah menunjukkan betapa beroperasi dan berurusan dengan ahli- pentingnya Kerajaan, agensi-agensi kerajaan, ahli dalam persekitaran terkawal untuk syarikat-syarikat, dan pelbagai institusi untuk mengurangkan risiko penyebaran penyakit bekerjasama di bawah satu matlamat.

berjangkit.
berjangkit.

Ini bermakna KWSP perlu Melalui pelaksanaan polisi sokongan dan memberikan perkhidmatan pelanggan yang inisiatif pelengkap, kita dapat mengatasi terbaik secara konsisten dalam persekitaran impak pandemik ke atas masyarakat dan ini, memastikan platform dan penyelesaian ekonomi, serta membantu rakyat di seluruh digital yang disediakan memenuhi jangkaan, negara, terutamanya golongan yang paling manakala data dan transaksi sentiasa rentan.

Dengan berbuat demikian, kita dapat selamat dan terjamin.
memastikan bahawa norma baharu pasca- pandemik akan menjadi lebih baik bagi Pandemik ini telah menonjolkan perbezaan semua rakyat Malaysia.

ketara antara pelbagai golongan ahli.

Ini telah memperkukuhkan lagi komitmen 6 LEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20202MESEJ UTAMA BICARA BERSAMA PENGERUSI KWSP KWSP untuk menerapkan pemikiran dan pendekatan yang mengutamakan pelanggan di seluruh organisasi.
Sebagai contoh, keperluan dan pilihan ahli di kawasan luar bandar yang mempunyai akses kepada internet yang terhad jelas berbeza dengan ahli yang menetap di kawasan bandar.

Di samping itu, ahli daripada pelbagai peringkat umur lebih suka berhubung dan berurusan dengan KWSP dengan cara yang berbeza.

Melangkah ke hadapan, KWSP akan merancang dan merangka perkhidmatan dan operasi yang disesuaikan dengan keadaan dan keperluan unik ahli yang pelbagai.
Sebagai sebuah organisasi berasaskan digital yang fokus pelanggan, kalis masa depan, berdaya tahan dan tangkas, KWSP bersedia untuk menghadapi cabaran dunia VUCA.

Saya yakin bahawa KWSP akan memenuhi, dan barangkali, melangkaui jangkaan pihak berkepentingan pada tahun- tahun akan datang.

S5.

Adakah terdapat perkara lain yang Tan Sri ingin tambah?
Bagi pihak KWSP, saya ingin mengucapkan ribuan penghargaan kepada Tunku Alizakri Alias, mantan Ketua Pegawai Eksekutif, yang mengundurkan diri pada bulan Mac 2021.

Tunku Alizakri telah mempamerkan daya kepimpinan yang tidak ternilai semasa berkhidmat di KWSP, dan saya mendoakan yang terbaik untuk beliau.
Sumbangan mereka telah memungkinkan KWSP untuk menyesuaikan diri kepada norma kerja baharu, melancarkan kemudahan pengeluaran yang belum pernah dilaksanakan sebelumnya serta menambah baik penyelesaian digital organisasi.

Terima kasih atas usaha anda dalam memberikan perkhidmatan kepada ahli dengan cemerlang dan dedikasi.

Setinggi-tinggi penghargaan saya ucapkan kepada Kementerian Kewangan, entiti dan agensi kerajaan, serta para ahli dan majikan KWSP.

Terima kasih kerana terus mempercayai KWSP.


Kami juga mengalu-alukan Datuk Seri Amir Hamzah Azizan, Ketua Pegawai Eksekutif KWSP yang baharu.

Saya percaya bahawa kami semua akan mendapat banyak manfaat daripada kebijaksanaan dan pengalaman beliau.

Walaupun beroperasi dalam persekitaran yang tidak menentu dan pandemik yang berpanjangan, KWSP kekal komited untuk mencapai tahap yang lebih tinggi dalam melaksanakan mandatnya.
Saya ingin mengucapkan penghargaan dan terima kasih kepada Ahli Lembaga KWSP atas bimbingan dan sokongan mereka sepanjang tahun.

Saya juga ingin mengucapkan terima kasih kepada barisan pengurusan dan kakitangan KWSP, seramai 5,811 orang, atas kesungguhan dan dedikasi mereka.

7 WWW.KWSP.GOV.MYLAPORAN TAHUNAN 20202MESEJ UTAMA PERUTUSAN KETUA PEGAWAI EKSEKUTIF KWSP telah menjadi simbol kepercayaan rakyat selama beberapa dekad.
Saya berasa bangga menjadi sebahagian daripada organisasi dana persaraan terkemuka ini sejak saya menerajui KWSP pada bulan Mac 2021.

Sehingga kini, KWSP teguh berdiri sebagai mercu kredibiliti dan integriti.
Datuk Seri Amir Hamzah Azizan Ketua Pegawai Eksekutif 8 LEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20202MESEJ UTAMA PERUTUSAN KETUA PEGAWAI EKSEKUTIF Ketika menulis perutusan ini, saya menyedari bahawa KWSP telah memulakan usaha untuk meningkatkan kesedaran umum tentang persekitaran yang tidak stabil, tidak menentu, kompleks, dan tidak jelas (VUCA) lama sebelum pandemik COVID-19 menular dan meninggalkan kesan buruk di seluruh dunia.
Langkah- langkah dalaman yang diambil untuk mempersiapkan organisasi bagi menangani persekitaran VUCA telah membolehkan KWSP untuk bangkit menghadapi cabaran pandemik ini.

Pada tahun 2020, KWSP telah menyediakan penyelesaian inovatif untuk ahli dan majikan.

Walaupun beroperasi dalam suasana pertumbuhan ekonomi yang lemah, KWSP berjaya merekodkan prestasi kewangan yang kukuh dan berdaya tahan.
Saya ingin berkongsi pelbagai pencapaian dan pengalaman KWSP sepanjang tempoh 12 bulan tahun 2020 dalam Laporan Tahunan ini.

BERPANDUKAN KESEDARAN BERMATLAMAT Tidak lengkap sekiranya saya membincangkan tentang tahun 2020 tanpa terlebih dahulu mengakui kesukaran dan cabaran yang dihadapi setelah kemunculan pandemik ini.
Persekitaran yang penuh dengan ketidakpastian dan kekeliruan yang berpanjangan telah memburukkan lagi tempoh yang mencabar ini dan ramai ahli KWSP yang telah kehilangan pekerjaan atau sebahagian daripada pendapatan mereka, manakala majikan pula bertungkus-lumus untuk meneruskan kelangsungan perniagaan.

KWSP telah melaksanakan mandatnya pada tahun 2020 dengan mengambil kira pandangan pihak berkepentingan, terutamanya ahli dan majikan.
Sepanjang tahun ini, mereka telah membangkitkan isu-isu seperti kekangan aliran tunai yang berpunca daripada kehilangan pekerjaan dan/ atau pendapatan, perumahan, kesihatan, serta ketidakcukupan kewangan dan makanan.

Satu perkara yang kini menjadi semakin jelas ialah kami hanya akan dapat merealisasikan visi KWSP untuk membantu ahli mencapai masa depan yang lebih baik sekiranya kami dapat menangani masalah mendesak yang dihadapi oleh rakyat di seluruh negara.
Usaha yang digembleng untuk membantu ahli dan majikan ini dapat mendorong KWSP untuk beroperasi secara objektif.

Dengan penuh dedikasi untuk memenuhi keperluan ahli dan majikan, KWSP telah mempertingkat usaha untuk membantu golongan yang berhadapan dengan masalah kewangan.

Walaupun mandat KWSP adalah untuk menguruskan simpanan persaraan ahli, kami memahami bahawa pandemik ini merupakan sebuah peristiwa luar jangkaan.
Oleh yang demikian, kami perlu melaksanakan inisiatif wajar yang membolehkan ahli mengakses simpanan mereka.

Kami sedar bahawa inisiatif yang dilaksanakan akan memberi kesan ke atas aliran tunai KWSP dan maklum betapa pentingnya untuk mengurus dan meminimumkan risiko pelaburan sepanjang tempoh ini.
Strategi pelaburan yang kukuh dan berhemah, yang berpandukan Alokasi Aset Strategik KWSP dengan sokongan barisan kakitangan dan Panel Pelaburan, telah memberi manfaat kepada dana KWSP dalam tempoh turun naik pasaran kewangan sepanjang tahun 2020.

Ini dibuktikan melalui prestasi kewangan KWSP yang kukuh, seperti yang diperincikan dalam Bicara Bersama Tan Sri Ahmad Badri Mohd Zahir, Pengerusi KWSP (rujuk halaman 2) dan dalam Ulasan Bahagian Pelaburan (rujuk halaman 102).
Untuk menyesuaikan operasi KWSP dengan cabaran yang lahir daripada pandemik ini, KWSP perlu bertindak dan membuat keputusan dengan lebih tangkas.

Memandangkan kami telah pun mula melaksanakan inisiatif digitalisasi operasi dan proses sebelum berlakunya krisis, kami berjaya menyesuaikan diri dalam norma baharu dengan menyegerakan transformasi digital organisasi.

Dengan memanfaatkan platform digital kami, pelanggan mempunyai lebih banyak saluran untuk berhubung dengan kami.
Keupayaan sistem teknologi telah dipertingkatkan bagi menampung lonjakan dalam jumlah pertanyaan pelanggan sepanjang tahun.

Kami juga mengambil langkah pencegahan untuk meningkatkan keselamatan siber dan melindungi maklumat pelanggan kami daripada ancaman siber.

Selain itu, kami juga memperkukuhkan strategi komunikasi dengan semua pihak berkepentingan dan agensi yang berkaitan agar mereka dapat memahami pendirian kami dengan lebih baik serta penyelesaian luar jangkaan dan luar biasa yang kami laksanakan.
Peristiwa pada tahun lalu telah mengukuhkan tanggungjawab hakiki KWSP ke arah membantu ahli menjalani kehidupan yang bermakna.

Berdasarkan matlamat dan visi organisasi, kami telah merekodkan beberapa pencapaian yang membanggakan dalam sejarah 69 tahun KWSP pada tahun 2020.
9 WWW.KWSP.GOV.MYLAPORAN TAHUNAN 20202MESEJ UTAMA PERUTUSAN KETUA PEGAWAI EKSEKUTIF MENYEDIAKAN PENYELESAIAN BAGI ISU UTAMA KWSP tetap menyediakan perkhidmatan kepada pelanggan sepanjang tempoh krisis ekonomi dan krisis kesihatan pada tahun 2020.

Sebagaimana lazimnya, kami sentiasa menetapkan piawaian yang tinggi, dan biarpun berdepan dengan cabaran, kami tetap melaksanakan pelbagai inisiatif untuk ahli dan majikan.
Inisiatif untuk Ahli 1 Inisiatif untuk meringankan kesulitan kewangan • Ahli diberi pilihan untuk mengurangkan kadar caruman berkanun syer pekerja dari 11% kepada 7% dari April hingga Disember 2020.

Ini membolehkan mereka membawa pulang gaji bersih yang lebih tinggi dalam suasana ekonomi yang lembap.

Pada akhir tahun ini, sejumlah 5.2 juta ahli telah memilih untuk pengurangan ini.
Jumlah caruman yang dikurangkan melalui inisiatif ini adalah sebanyak RM13.6 bilion (iaitu jumlah yang tidak disimpan dengan KWSP).

• Kemudahan Pengeluaran i-Lestari dibangunkan dalam masa yang singkat untuk membantu ahli mendepani tempoh krisis.

Melalui i-Lestari, ahli boleh mengeluarkan antara RM50 hingga RM500 dari simpanan dalam Akaun 2.

Pada hari pelancaran, sebanyak 850,000 permohonan i-Lestari telah diterima.
Pada akhir tahun, sebanyak 5.1 juta permohonan i-Lestari telah diluluskan dan RM14.55 bilion telah dikeluarkan.

Sebilangan besar pemohon i-Lestari, iaitu sekitar 87%, memperoleh pendapatan kurang daripada RM3,000 setiap bulan.
2 Inisiatif untuk membantu ahli melabur untuk masa depan dan menguruskan kewangan mereka • Caj jualan yang dikenakan oleh Institusi Pengurusan Dana (IPD) untuk pelaburan yang dibuat melalui Skim Pelaburan Ahli KWSP (SPA) telah dikurangkan untuk menggalakkan ahli yang layak untuk menguruskan simpanan persaraan mereka sendiri.

KWSP juga tidak mengenakan sebarang caj jualan bagi pelaburan yang dilakukan melalui i-Invest dalam platform digital i-Akaun.
Untuk memberikan lebih banyak pilihan kepada ahli, KWSP juga telah meningkatkan bilangan IPD dalam i-Invest kepada 10 buah institusi daripada empat buah institusi sahaja pada tahun 2019.

Sepanjang tahun ini, seramai 24,000 ahli telah menggunakan kemudahan i-Invest dan merekodkan jumlah transaksi sekitar 73,000 yang berjumlah RM685.6 juta.

• KWSP juga telah mengemas kini dan memperluas panduan perbelanjaan Belanjawanku.
Panduan ini membantu lebih ramai individu dan isi rumah di Malaysia untuk menguruskan perbelanjaan mereka dengan lebih baik dan membuat perancangan belanjawan.

Pada tahun 2020, Belanjawanku telah dilancarkan untuk lima kawasan utama: Lembah Klang, Alor Setar, Kota Kinabalu, Kuala Terengganu dan Johor Bahru.

3 Kemudahan pengeluaran rawatan kesuburan • KWSP melancarkan kemudahan pengeluaran bagi rawatan kesuburan pada bulan Oktober untuk menangani penurunan dalam kadar kesuburan.
Kemudahan ini merupakan lanjutan daripada kemudahan Pengeluaran Kesihatan KWSP yang membolehkan ahli mengakses simpanan dalam Akaun 2 untuk membiayai rawatan kesuburan di institusi perubatan tempatan.

Pada akhir tahun 2020, sebanyak 114 permohonan Pengeluaran Kesihatan - Rawatan Kesuburan telah diluluskan dengan jumlah pengeluaran sebanyak RM3.5 juta.
10 LEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20202MESEJ UTAMA PERUTUSAN KETUA PEGAWAI EKSEKUTIF Inisiatif untuk Majikan 1 Inisiatif untuk mengurangkan kekangan aliran tunai • Program Bantuan Majikan COVID-19 (e-CAP) membenarkan Perusahaan Kecil Sederhana (PKS) yang layak untuk menangguhkan atau menstrukturkan semula caruman syer majikan untuk bulan April, Mei, dan Jun 2020.
Program ini bertujuan untuk membantu majikan yang mengalami kekangan aliran tunai untuk terus mengekalkan pekerja mereka sepanjang tempoh pandemik.

Sebanyak 13,090 permohonan berjumlah RM84.95 juta telah diluluskan pada tahun 2020.

2 Inisiatif utama lain • • • Penambahbaikan i-Akaun (Majikan) untuk meningkatkan pengalaman pengguna dalam talian untuk majikan.

Pada tahun 2020, sehingga 99% daripada jumlah majikan mengemukakan caruman melalui platform ini.
Pembangunan dan perintis e-penggajian (e-Payroll) secara percuma bagi PKS untuk meningkatkan kecekapan operasi mereka secara digital.

Pelancaran Khidmat Nasihat Majikan (EAS) bagi menyokong majikan untuk memenuhi kewajiban berkanun mereka dengan KWSP.

EAS bermula pada tahun 2020 dengan 10 orang pegawai perintis yang berpusat di Lembah Klang.
MENINGKATKAN KELESTARIAN UNTUK KEBERHASILAN YANG LEBIH BAIK Walaupun beroperasi dalam pasaran kewangan 2020 yang tidak menentu, kompleks, dan mengalami turun naik, aset pelaburan KWSP meningkat sebanyak 8.15% daripada tahun sebelumnya hingga mencapai RM1,000.10 bilion.

Langkah seterusnya adalah untuk terus mengembangkan aset KWSP dalam dunia yang semakin VUCA.
Untuk mencapai pertumbuhan jangka panjang dalam landskap yang sering berubah, di samping mengurus dan mengurangkan risiko kewangan dan bukan kewangan, KWSP telah memanfaatkan amalan terbaik pelaburan bertanggungjawab dengan memasukkan elemen alam sekitar, sosial, dan tadbir urus (ESG) dalam proses pelaburan KWSP.

Kesan pandemik terhadap nilai aset pada tahun 2020 terus mengesahkan ketahanan pelaburan berasaskan ESG.
Semasa kemuncak pandemik COVID-19, aset ESG merosot pada kadar yang lebih rendah berbanding aset lain.

Sebagai contoh, syarikat tersenarai awam yang mengambil kira elemen ESG dalam perniagaan mereka telah mengatasi syarikat seumpamanya dalam pasaran saham.

Komitmen KWSP untuk pelaburan bertanggungjawab dan amalan ESG didorong oleh keyakinan kami bahawa pengintegrasian kelestarian dapat membina portfolio pelaburan yang berdaya tahan dan mencapai pulangan jangka panjang yang disesuaikan dengan risiko.
Kami berhasrat untuk membuat semua keputusan pelaburan kami berdasarkan elemen ESG menjelang tahun 2030.

Aset ESG menjana antara 5% hingga 7% dalam jangka masa panjang.

Ini sejajar dengan pendekatan keseluruhan kami sebagai pelabur jangka panjang yang aktif.
Kami yakin bahawa pengintegrasian elemen ESG ke dalam strategi dan operasi KWSP akan memperkukuhkan lagi keupayaan kami untuk menelusuri fasa pandemik seterusnya dan bertindak terhadap cabaran 11 WWW.KWSP.GOV.MYLAPORAN TAHUNAN 20202MESEJ UTAMA PERUTUSAN KETUA PEGAWAI EKSEKUTIF kemasyarakatan dan persekitaran pada masa hadapan.

Di samping itu, sebagai perintis dalam pelaburan bertanggungjawab dan ESG, KWSP telah menjadi sebahagian daripada penyelesaian kepada masalah- masalah utama yang dihadapi dunia.
Sebagai pengelola pelaburan, KWSP merancang untuk memainkan peranan yang lebih aktif dalam mendorong syarikat pelaburan untuk menerapkan prinsip ESG.

Keutamaan diberi terhadap proses libat urus, dan kebanyakan garis panduan pengundian yang kami bangunkan menyasarkan pematuhan prinsip tadbir urus korporat dalam kalangan syarikat pelaburan, seperti memastikan keseimbangan yang baik antara jumlah pengarah bebas dan tidak bebas.
Seiring dengan usaha KWSP untuk meningkatkan komunikasi dengan ahli dan pihak berkepentingan, kami akan melaksanakan pelaporan bersepadu dengan menerapkan Rangka Kerja Pelaporan Bersepadu Antarabangsa (<IR>) oleh Majlis Pelaporan Bersepadu Antarabangsa (IIIRC).

Kami telah memasukkan elemen kandungan Rangka Kerja <IR> terpilih dalam Laporan Tahunan ini untuk menerangkan tentang penciptaan nilai oleh KWSP untuk pihak berkepentingan.
Kami berhasrat untuk membentangkan Laporan Bersepadu yang pertama pada tahun hadapan dan akan terus menambah baik proses dan amalan kami untuk menerapkan pemikiran bersepadu dalam membuat sebarang keputusan.

DIGITALISASI: KEKUATAN TRANSFORMATIF Pandemik COVID-19 telah mempercepatkan penggunaan teknologi dan pelaksanaan kerja di luar pejabat.
Ekoran kemuncak pandemik pada bulan Mac 2020, KWSP terpaksa menyesuaikan perniagaan dan operasinya untuk melindungi kakitangan dan pada masa yang sama memastikan kesinambungan perkhidmatan dapat diteruskan kepada pelanggan.

Ini dapat dilakukan berikutan transformasi digital KWSP yang berterusan seperti yang digariskan dalam perancangan hala tuju Digitasi KWSP 2025, yang menyasarkan KWSP sebagai sebuah organisasi yang diupayakan dengan teknologi digital menjelang 2025.
Pada tahun 2020, setiap pelan dan aktiviti yang digariskan dalam perancangan hala tuju ini telah dipercepatkan agar perkhidmatan kepada pelanggan dapat diteruskan sepanjang tempoh perintah kawalan pergerakan.

Maklumat lanjut mengenai penerapan teknologi digital di KWSP dihuraikan dalam Ulasan Bahagian Teknologi Digital yang pertama (rujuk halaman 121).

Jumlah pertanyaan dan libat urus pelanggan yang luar biasa pada tahun 2020 menyerlahkan lagi kepentingan fungsi digitalisasi sebagai pemboleh daya.
Daripada 218 juta jumlah interaksi antara pelanggan dengan KWSP sepanjang tahun ini, sebanyak 207 juta transaksi dilakukan menggunakan di platform digital.

Ini merupakan peningkatan ketara sebanyak 120.2% dari jumlah transaksi dalam talian yang direkodkan pada tahun 2019.

Sebaliknya, urus niaga secara peribadi (luar talian) jatuh 26.7% pada tahun 2020 berbanding tahun sebelumnya.

KWSP telah lama menjangkakan kepentingan pendigitalan ke atas produk, perkhidmatan, dan operasi kami.
Sebahagian besar penduduk Malaysia terdiri daripada golongan yang berusia di bawah 20 tahun.

Ini merupakan sebab utama mengapa kami mengiktiraf digitalisasi sebagai keperluan strategik, dan bukan sahaja sebagai langkah penjarakan sosial atau sumber kecekapan kos.

Penting untuk dinyatakan di sini bahawa dalam proses memajukan transformasi digital ini, KWSP sentiasa mengiktiraf dan mempertimbangkan kepelbagaian keperluan dan pilihan ahlinya.
Janji Temu Online (JTO), contohnya, merupakan penyelesaian berasaskan pengkomputeran awan yang kami lancarkan pada tahun 2020.

Penyelesaian ini memberikan perkhidmatan "sentuhan rendah dengan penjarakan fizikal" untuk 12 LEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20202MESEJ UTAMA PERUTUSAN KETUA PEGAWAI EKSEKUTIF ahli yang mengunjungi kaunter perkhidmatan KWSP dan pada masa yang sama memastikan keselamatan mereka serta keselamatan kakitangan KWSP yang bertugas semasa pandemik adalah terpelihara.
MEMBINA SEMULA DENGAN LEBIH BAIK Keutamaan KWSP adalah untuk terus menegakkan mandatnya yang merupakan antara teras utama sistem perlindungan sosial Malaysia.

Skala operasi KWSP membolehkannya untuk memanfaatkan peluang yang ada untuk mewujudkan kehidupan yang lebih baik kepada ahli.

Kejayaan yang dicapai pada tahun 2020 telah mengukuhkan kedudukan KWSP dalam mendepani tahun-tahun yang akan datang.
Namun, kami sedar akan persekitaran luar yang tidak dapat dikawal atau diramalkan dalam era VUCA ini yang boleh menggugat operasi dan pelaburan kami.

Rakyat Malaysia masih lagi menangani pandemik ini dan belum kembali kepada kehidupan normal.

Realiti di sebalik peristiwa tahun 2020 ini telah menyebabkan ramai dihimpit dengan masalah kewangan.

Kehilangan pekerjaan barangkali telah menyebabkan sebilangan isi rumah menjadi miskin tegar.
Manakala yang lain pula, simpanan persaraan dan kecemasan telah habis digunakan untuk menampung keperluan hidup yang mendesak.

Oleh kerana persekitaran semasa kita kini berubah dengan pantas, adalah lazim bagi KWSP untuk turut membuat perubahan kepada operasinya dan bagaimana ia boleh disesuaikan dan dijadikan lebih relevan kepada setiap peringkat kehidupan ahli, dan tidak hanya untuk masa persaraan sahaja.
KWSP akan terus mengukuhkan komitmennya untuk membantu dan mengupayakan rakyat Malaysia, ahli dan bukan ahli, untuk menyimpan demi masa depan persaraan yang sejahtera.

Kepada ahli yang telah terpaksa mengeluarkan simpanan KWSP mereka semasa pandemik, kami berharap agar mereka akan kembali bekerjasama dengan KWSP dalam memulihkan dan membina semula simpanan KWSP mereka.
13 WWW.KWSP.GOV.MYLAPORAN TAHUNAN 20202MESEJ UTAMA PERUTUSAN KETUA PEGAWAI EKSEKUTIF Perancangan kami untuk tahun 2021 merangkumi: PENGHARGAAN Sebahagian besar kejayaan yang dilakarkan oleh KWSP adalah hasil sumbangan barisan pemimpin KWSP yang terdahulu.
Saya ingin mengambil kesempatan ini untuk mengucapkan terima kasih kepada Tunku Alizakri Alias, mantan Ketua Pegawai Eksekutif KWSP, yang telah memainkan peranan penting dalam mempersiapkan organisasi untuk mendepani persekitaran VUCA serta mengintegrasikan pertimbangan ESG yang utama ke dalam proses dan operasi pelaburan kami.
Saya juga menzahirkan penghargaan kepada Pengerusi KWSP, Tan Sri Ahmad Badri Mohd Zahir, dan semua ahli Lembaga KWSP yang telah membentuk hala tuju organisasi dan memacu usaha penciptaan nilai KWSP.

Kepada semua kakitangan KWSP, organisasi ini tidak akan mampu menyesuaikan diri, berkembang, dan mendepani cabaran yang dibawa oleh pandemik ini tanpa kekuatan dan dedikasi anda dalam mendukung matlamat dan visi KWSP dalam membantu ahli mencapai masa depan yang lebih baik.
Ucapan terima kasih saya juga kepada semua ahli, majikan, dan pihak berkepentingan yang memberikan kepercayaan dan keyakinan sepenuhnya kepada kami untuk terus mencurahkan bakti dalam menguruskan dana persaraan ini.

Datuk Seri Amir Hamzah Azizan Ketua Pegawai Eksekutif Sejak 1 Mac 2021 Mengukuhkan kepercayaan terhadap KWSP dan reputasi sebagai organisasi perlindungan sosial yang bertanggungjawab, terutamanya dalam persekitaran penyebaran pantas maklumat- maklumat yang tidak sahih dan palsu.
Menerajui usaha kesejahteraan sosial dengan menyokong rangka kerja perlindungan sosial yang komprehensif dan bersepadu bagi memastikan rakyat Malaysia yang rentan mendapat perlindungan ketika menghadapi masalah kewangan.

Memimpin agenda kelestarian dengan menjadi organisasi yang lebih lestari dan bertanggungjawab serta menggunakan statusnya sebagai dana persaraan terulung di negara ini untuk mempengaruhi dan menyokong kelestarian.
Mempersiapkan KWSP untuk masa depan dengan melaksanakan projek strategik utama, di samping meningkatkan kemampuan kakitangan secara berterusan.

Membenarkan ahli membeli produk insurans dan takaful menggunakan simpanan dalam Akaun 2 seperti yang diumumkan dalam Belanjawan 2021.

Produk ini akan ditawarkan melalui i-Akaun dan akan disesuaikan dengan ciri-ciri tambahan dan caj premium yang berpatutan.

Meningkatkan kualiti pelaporan kepada pihak berkepentingan.
Laporan Tahunan KWSP pada masa hadapan akan menerapkan model pelaporan bersepadu untuk memberikan maklumat yang lebih mendalam berkenaan pencapaian dan perancangan KWSP dalam mencapai objektifnya.

Meneruskan usaha untuk membangunkan Kwasa Damansara, Selangor, yang juga akan menempatkan ibu pejabat baharu KWSP.
14 LEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20202MESEJ UTAMA MENCIPTA NILAI JANGKA P ANJANG Sebagai sebuah organisasi perlindungan sosial yang diberikan mandat melindungi simpanan persaraan dan penggantian pendapatan hari tua, KWSP komited dalam membantu ahli mencapai persaraan yang sejahtera.
Bagi KWSP, masa depan yang lebih baik dan persaraan yang sejahtera merujuk kepada keseluruhan aspek persaraan yang mana ahli mempunyai jaminan pendapatan semasa hari tua, kesihatan yang baik melalui langkah-langkah pencegahan, dan kehidupan yang bermatlamat dan bermakna.

BAGAIMANA KWSP MENCIPTA NILAI KWSP memainkan peranan yang penting dalam pembangunan negara, iaitu dengan melindungi simpanan ahli untuk memenuhi keperluan persaraan dan menyediakan modal kewangan untuk menyokong pembangunan ekonomi.
KWSP menguruskan caruman ahli dengan berhemat melalui tadbir urus korporat yang baik dan polisi pelaburan yang kukuh.

Sebagai pelabur terbesar dalam pasaran modal di Malaysia, kami percaya bahawa kami bertanggungjawab untuk memastikan pelaburan yang dibuat menghasilkan kesan positif terhadap masyarakat dan alam sekitar di samping menjana pulangan kewangan yang mampan.
Keperluan Persaraan Keperluan Modal Majikan Ahli Caruman: • Wajib • Sukarela • Agihan dividen • Pengeluaran pra- persaraan dan persaraan • Khidmat nasihat (ahli dan majikan) Melindungi simpanan persaraan ahli Menyediakan perkhidmatan terbaik kepada pelanggan Pelaburan Pulangan atas pelaburan Instrumen Pendapatan Tetap Ekuiti Hartanah dan Infrastruktur Instrumen Pasaran Wang Tadbir Urus Korporat Tadbir Urus Syariah Pengurusan Risiko Polisi Pelaburan KWSP mencipta nilai kepada ahli, majikan, kakitangan dan pihak berkepentingan lain melalui perniagaan dan strategi yang berdasarkan penjanaan pelbagai modal.
Di dalam perancangan perniagaan KWSP, pihak pengurusan telah mengenal pasti inisiatif atau strategi utama yang diselaraskan dengan strategi teras bagi mencapai nilai jangka panjang untuk pihak berkepentingan.

KWSP mengubah pelbagai input atau modal (seperti di bawah) melalui aktiviti perniagaan untuk menjana output dan hasil yang akan mencipta nilai untuk jangka masa pendek, pertengahan dan panjang kepada semua pihak berkepentingan.
Modal Kewangan Dana yang tersedia kepada KWSP Modal Pembuatan Cawangan, bangunan dan infrastruktur KWSP Modal Insan Kakitangan KWSP Modal Intelektual Aset tidak ketara, sistem dan proses KWSP Modal Sosial dan Hubungan Hubungan bersama ahli dan pihak berkepentingan lain, rakan kongsi dan rangkaian KWSP Modal Semula Jadi Semua sumber alam sekitar yang boleh diperbaharui dan tidak boleh diperbaharui 15 WWW.KWSP.GOV.MYLAPORAN TAHUNAN 2020MENCIPTA NILAI JANGKA PANJANG3 MOD EL PENCIP TAAN N ILAI KW S P INPUT UTAMA Sumber yang Digunakan Modal Kewangan • RM78.41 bilion jumlah caruman ahli dan majikan • Pulangan pelaburan dan pendapatan Visi Kami Membantu ahli mencapai masa depan yang lebih baik Misi Kami Melindungi simpanan ahli dan menyediakan perkhidmatan terbaik Modal Pembuatan • 68 pejabat dan cawangan di seluruh Malaysia • 5,429 kios pintar dan terminal mudah alih KWSP • Pusat Pengurusan Perhubungan (CMC) Modal Insan • 5,811 jumlah kakitangan • 112 pelatih dan protégé • 290,043 jam pembelajaran • RM5.29 juta dilaburkan dalam pembelajaran dan pembangunan kakitangan Faedah yang kompetitif • I K A B G N A Y S U R U R I B D A T Disediakan melalui Teras Strategik Kami Bertumpu pelanggan Pelaburan mampan Pengupayaan digital Pembangunan sumber manusia Disokong oleh Nilai Bersama Kami P E N G U R U S A N R I S I K O Utamakan pelanggan Integriti Penambahbaikan berterusan Semangat kerja berpasukan Modal Intelektual • Pelan Boleh Ubah 3 Tahun • Platform digital: i-Akaun (Ahli), i-Akaun (Majikan), aplikasi i-Akaun, aplikasi
 e-Caruman • Pelan Digitasi KWSP 2025 Modal Sosial & Hubungan • 14,887,988 jumlah ahli • 7,591,053 jumlah ahli aktif • 534,398 jumlah majikan Modal Semula Jadi • Penandatangan Prinsip Pelaburan Bertanggungjawab Pertubuhan Bangsa- Bangsa Bersatu (UNPRI) • Penilaian kelestarian bagi setiap cadangan • pelaburan baharu Inisiatif pendigitalan bagi mengurangkan kesan ke atas alam sekitar Mengambil kira Enam Faktor Yang Akan Membentuk Norma Baharu Kelestarian adalah keperluan paling penting bagi generasi kini
 Gangguan Rantaian Bekalan Global memerlukan transformasi terhadap model rantaian bekalan tradisional Persekitaran Pulangan Rendah mungkin tidak akan pulih dalam masa lima tahun akan datang Maklum Balas Pelanggan yang meluas dan diperkukuh melalui saluran digital Memacu Transformasi Digital ekonomi sentuhan rendah, dengan penjarakan fizikal Pekerjaan, Pekerja dan Tempat Kerja Masa Hadapan telah bermula AKTIVITI PERNIAGAAN 16 LEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 2020MENCIPTA NILAI JANGKA PANJANG3 MODEL PENCIPTAAN NILAI KWSP OUTPUT Nilai yang Dicipta HASIL Nilai yang Dikongsi • RM55.74 bilion jumlah pendapatan pelaburan • RM42.87 bilion keuntungan bersih boleh diagih kepada ahli • RM1,003.37 bilion jumlah aset (60% konvensional, 40% syariah) • RM0.27 kos setiap aset di bawah pengurusan (setiap RM100) • 2.77% jumlah perbelanjaan ke atas jumlah pendapatan • 6.13% pulangan atas pelaburan (ROI) • RM58.29 bilion jumlah pengeluaran dan pengembalian caruman • 1.70 juta interaksi melalui kaunter KWSP • 6.40 juta interaksi melalui kios pintar dan terminal mudah alih KWSP • 2.89 juta jumlah panggilan telefon yang diterima oleh CMC (meningkat 158.83%) • 92 lantikan baru (44% dengan kemahiran digital dan pelaburan) • RM1.11 bilion jumlah perbelanjaan kakitangan • 14.18% perwakilan wanita di peringkat Lembaga • 20.00% perwakilan wanita di peringkat Pengurusan Kanan Tenaga kerja yang pelbagai dengan 58.00% kakitangan • wanita • 82 pegawai Khidmat Nasihat
 Persaraan (RAS) yang terlatih dan mempunyai kelayakan dalam bidang perancangan kewangan dan persaraan • Dana simpanan persaraan ke-12 terbesar di dunia • 143.01 juta interaksi dalam i-Akaun (meningkat 116.91%) • 8.90 juta (59.79%) ahli berdaftar dengan i-Akaun • 531,343 (99.43% ) majikan berdaftar dengan i-Akaun • 98.06% majikan menggunakan e-Bayaran • 99.99% majikan menggunakan e-Borang • 1.2:1 nisbah ahli lelaki:perempuan • 19.47% ahli aktif mencapai simpanan asas • 83,224 ahli menerima nasihat kewangan
 daripada pegawai RAS • 95.21% indeks kepuasan pelanggan • 41.00% tahap literasi kewangan ahli (setakat 2019) • Lebih 70 jumlah penilaian kelestarian telah dilaksanakan • 82.00% pendedahan ekuiti domestik dalaman di bawah FTSE4Good Bursa Malaysia • 47.52% pendedahan ekuiti dan bon yang diuruskan oleh Pengurus Dana Luar di bawah pelbagai Indeks Penanda Aras ESG Ahli • RM42.88 bilion agihan dividen (Simpanan Konvensional) • RM4.76 bilion agihan dividen (Simpanan Shariah) • 5.20% kadar dividen (Simpanan Konvensional) • 4.90% kadar dividen (Simpanan Shariah) • RM24.79 bilion pengeluaran persaraan • RM14.55 bilion pengeluaran bagi bantuan COVID-19 (i-Lestari) • RM4.50 bilion pengeluaran perumahan • RM679.76 juta pengeluaran pendidikan • RM79.31 juta pengeluaran kesihatan • Membolehkan ahli untuk mempelbagaikan pelaburan KWSP pada kos yang lebih rendah melalui i-Invest • 47.47% tenaga kerja Malaysia dilindungi oleh KWSP • Pengenalan inisiatif-inisiatif (i-Lestari, pengurangan caruman) bagi meringankan beban kewangan ahli Kerajaan dan Agensi Kawal Selia • Memberi cadangan dasar kepada kerajaan dan agensi kawal selia • Mematuhi peraturan dan piawaian • Menyokong pembangunan negara dalam pembangunan bakat Kakitangan • 18 tahun purata tahun perkhidmatan • 2.10% kadar atrisi kakitangan • 50 jam purata jam pembelajaran kakitangan • 93.00% kadar penglibatan kakitangan (setakat 2019) Syarikat-syarikat Pelaburan • Menghadiri dan mengundi secara aktif dalam 99 mesyuarat agung tahunan
 (AGM) dan 16 mesyuarat agung luar biasa (EGM) syarikat yang mana KWSP melabur • Menyediakan sumber dana dan modal Majikan • i-Akaun (Majikan) yang ditambah baik – menyediakan platform yang mudah dengan akses yang lebih baik dan pengalaman pengguna yang lancar • Khidmat Nasihat Majikan – melibatkan majikan untuk mendidik mengenai kepatuhan kendiri dan layan diri dalam memenuhi tanggungjawab mereka terhadap KWSP • 13,090 permohonan yang diluluskan, berjumlah RM84.95 juta, bagi e-CAP iaitu program bantuan
 kepada majikan bagi meringankan beban kewangan 17 WWW.KWSP.GOV.MYLAPORAN TAHUNAN 2020MENCIPTA NILAI JANGKA PANJANG3 IN ISIATI F LUAR BIASA BAGI SI T U AS I YANG TIDAK TERJANGKA KWSP diberi mandat di bawah Akta Kumpulan Wang Simpanan Pekerja 1991 untuk melindungi dan memperkembangkan simpanan persaraan ahli.
Namun, disebabkan penularan COVID-19, KWSP terpaksa mengambil langkah segera dan memperkenalkan inisiatif baharu yang berbeza daripada inisiatif sedia ada untuk membantu ahli dan majikan menghadapi cabaran tahun 2020.

Dalam laporan ini, kami memberikan gambaran keseluruhan mengenai langkah- langkah yang telah dilaksanakan oleh KWSP termasuk produk dan kemudahan inovatif bagi membantu golongan yang menghadapi masalah kewangan sepanjang tahun ini.
ANCAMAN TERHADAP INDIVIDU DAN KELANGSUNGAN HIDUP Pada tahun 2020, pandemik COVID-19 yang bermula sebagai krisis kesihatan telah menimbulkan krisis ekonomi di peringkat global yang belum pernah terjadi sebelumnya.
Perdagangan antarabangsa, perjalanan, dan pelbagai aktiviti perniagaan rentas sempadan telah terjejas teruk, sementara ekonomi dunia mengalami penguncupan berikutan pelaksanaan perintah kawalan pergerakan (PKP) dan prosedur operasi standard (SOP) yang mengekang perbelanjaan dan pengeluaran domestik.

Malaysia tidak terlepas daripada kesan pandemik ini yang telah menimbulkan kesan yang ketara terhadap sektor ekonomi dan kehidupan semua pihak.
Syarikat- syarikat perniagaan, terutamanya perusahaan kecil dan sederhana (PKS), terpaksa bekerja keras untuk memastikan kelangsungan kewangan mereka.

Kesan pandemik ke atas sektor PKS yang merangkumi lebih daripada 90% jumlah syarikat di Malaysia telah menyebabkan mereka berdepan dengan masalah kewangan yang serius.

Berdasarkan tinjauan oleh SME Corporation Malaysia antara bulan Mac dan Mei 2020, hampir 60% PKS di negara ini tidak menjana pendapatan semasa PKP pertama yang bermula pada bulan Mac 2020.
Masalah kekangan aliran tunai telah menyebabkan mereka mengurangkan jumlah pekerja dan/ atau membuat pemotongan gaji pekerja dan kesan ini dapat dilihat dalam kadar pengangguran dan guna tenaga tidak penuh di Malaysia.

Menurut Jabatan Perangkaan Malaysia, kadar pengangguran meningkat sebanyak 1.2% kepada 4.5% pada tahun 2020.

Ini merupakan kadar tertinggi yang telah dicatatkan sejak tahun 1993.
Sejajar dengan itu juga, jumlah isi rumah miskin telah meningkat kepada 639,800 daripada 405,400 pada tahun 2019.

Sementara itu, Keluaran Dalam Negeri Kasar (KDNK) negara telah mengalami penurunan mendadak iaitu -5.6% pada tahun 2020 daripada peningkatan sebanyak 4.3% pada tahun 2019 berikutan kelembapan aktiviti ekonomi.

CABARAN YANG DIHADAPI OLEH AHLI DAN MAJIKAN KWSP KWSP mewakili hampir 50% daripada penduduk Malaysia, dengan sejumlah 14.89 juta ahli.
KWSP menyedari tentang peningkatan masalah kewangan dalam kalangan ahli dan majikan semasa bermulanya pandemik dan telah mengambil langkah segera untuk membantu mereka pada tahun ini.

Selain melancarkan pelbagai produk dan kemudahan yang belum pernah diperkenalkan sebelum ini, KWSP juga menjalankan tinjauan untuk menentukan sama ada inisiatif yang diperkenalkan dapat memenuhi keperluan ahli dan majikan.
Tinjauan yang kami jalankan pada bulan Julai 2020 (Tinjauan Impak COVID-19) menunjukkan bahawa pandemik ini telah memberikan kesan yang tidak seimbang dalam kalangan ahli KWSP.

Trend yang sama dapat dilihat di seluruh dunia, yang mana pandemik tersebut telah menyerlahkan situasi kerentanan golongan tertentu yang sebelum ini kurang menonjol, contohnya pekerja dalam sektor tidak formal.
Di Malaysia, golongan yang bekerja dalam sektor tidak formal, seperti mereka yang bekerja sendiri, pekerja bebas, dan pekerja bergaji harian, didapati paling terkesan sepanjang tahun ini.

18 LEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 2020LAPORAN KHAS4 INISIATIF LUAR BIASA BAGI SITUASI YANG TIDAK TERJANGKA Berdasarkan Tinjauan Impak COVID-19 ini juga, pekerjaan dalam sektor tidak formal didapati lebih tidak stabil jika dibandingkan dengan pekerjaan dalam sektor formal.
Satu perdua daripada responden (kira-kira 50%) dalam sektor tidak formal melaporkan pengurangan waktu bekerja atau diminta untuk mengambil cuti tanpa gaji, manakala sekitar 20% telah diberhentikan kerja atau tidak dapat bekerja.

Sementara itu, dua perlima responden (sekitar 40%) dalam sektor formal melaporkan pengurangan waktu kerja atau diminta untuk mengambil cuti tanpa gaji.

Hanya 2% yang diberhentikan atau tidak dapat bekerja.
Tinjauan Impak COVID-19 ini juga mendedahkan bahawa 16% responden sektor tidak formal memperoleh gaji di bawah median individu sebanyak RM2,500 dan telah kehilangan pekerjaan ketika pandemik.

Tanpa sebarang sumber pendapatan, golongan yang rentan ini terdedah kepada kemiskinan mutlak kerana menghadapi kesukaran untuk menanggung keperluan asas seperti makanan dan tempat tinggal.
Dari segi keselamatan pekerjaan, 50% responden dalam sektor tidak formal memegang pekerjaan yang sama seperti sebelum pandemik berbanding dengan 96% responden dalam sektor formal.

Bagi KWSP, keadaan ini telah menyerlahkan isu penting berkenaan keselamatan pekerjaan dalam sektor tidak formal, yang mana pekerja jarang diberi kontrak bertulis, faedah kesihatan, atau perlindungan sosial.
Kekurangan simpanan kecemasan, sama ada dalam jumlah yang mencukupi atau tidak, menambahkan lagi pelbagai cabaran yang dihadapi oleh ahli dalam sektor tidak formal.

Secara keseluruhannya, Tinjauan Impak COVID-19 ini mendapati bahawa sebahagian besar ahli telah mengalami masalah kewangan, secara langsung atau tidak langsung, disebabkan pandemik dan tiga isu utama mereka ialah keselamatan pendapatan, kesihatan, dan keselamatan pekerjaan.
Responden tinjauan ini juga menyatakan bahawa sumber kewangan alternatif mereka adalah terhad, dengan hanya 18% responden mempunyai simpanan yang mencukupi untuk menampung perbelanjaan melebihi tempoh enam bulan.

Sekiranya tempoh pandemik berpanjangan, individu dan isi rumah dengan simpanan yang terhad mungkin akan mengalami kemiskinan.
19 WWW.KWSP.GOV.MYLAPORAN TAHUNAN 2020LAPORAN KHAS4 INISIATIF LUAR BIASA BAGI SITUASI YANG TIDAK TERJANGKA Hasil tinjauan ini telah menyerlahkan realiti masalah kewangan yang dihadapi oleh ahli KWSP pada tahun 2020.

Ia juga mengesahkan bahawa inisiatif KWSP untuk membantu ahli merupakan langkah yang tepat.

Di samping itu, lebih banyak inisiatif seperti itu diperlukan pada masa depan sekiranya pandemik berlarutan dan sektor ekonomi mengambil masa yang lebih lama untuk pulih daripada kesan pandemik.
INISIATIF UTAMA KWSP UNTUK MENANGANI CABARAN KEWANGAN Kerajaan Malaysia telah melancarkan rangkaian pakej bantuan rangsangan untuk memitigasi kejatuhan ekonomi pada tahun 2020.

Ini termasuk pakej sokongan kewangan pertama iaitu Pakej Rangsangan Ekonomi Prihatin (Prihatin) yang diumumkan pada 27 Mac 2020.
Ini diikuti oleh beberapa pakej rangsangan ekonomi yang lain sepanjang tahun seperti Pakej Prihatin untuk Perusahaan Kecil dan Sederhana (Langkah Tambahan) pada 6 April 2020, Rancangan Pemulihan Ekonomi Nasional (Penjana) pada 5 Jun 2020, dan Pakej Inisiatif Tambahan Prihatin (Kita Prihatin) pada 23 September 2020.
Beberapa inisiatif lain yang dilaksanakan oleh kerajaan untuk membantu rakyat ialah moratorium untuk semua pinjaman bank dan pembayaran tunai Bantuan Sara Hidup, sementara pengusaha perniagaan pula menerima geran dan subsidi serta bantuan seperti kemudahan bantuan khas yang ditawarkan kepada PKS sebagai modal perniagaan dan skim kredit mikro untuk syarikat dalam sektor yang terjejas.
KWSP merupakan salah sebuah dana persaraan pertama di dunia yang membantu ahli dan majikan semasa pandemik dengan melaksanakan beberapa inisiatif yang juga menyokong pakej ekonomi kerajaan pada tahun 2020.

Matlamat KWSP adalah untuk memberikan kemudahan kewangan kepada ahli dan majikan yang menghadapi masalah kewangan berikutan PKP pertama ketika kebanyakan sektor ekonomi ditutup.
Ringkasan berkaitan inisiatif COVID-19 yang diperkenalkan oleh KWSP mengikut kronologi adalah seperti berikut: Inisiatif Pengurangan kadar caruman syer pekerja untuk tahun 2020 dari 11% kepada 7% Kemudahan Pengeluaran i-Lestari Program Bantuan Majikan COVID-19 (e-CAP) * Data setakat 31 Disember 2020 Tempoh Berkuat Kuasa Tujuan 1 April 2020 – 31 Disember 2020 Meningkatkan pendapatan boleh guna ahli Kelulusan* 3.3 juta ahli Jumlah* RM3.4 bilion 1 April 2020 – 31 Mac 2021 1 April 2020 – 30 Jun 2020 Mengurangkan beban kewangan ahli dengan membenarkan pengeluaran secara dalam talian antara RM50 dan RM500 dari Akaun 2 Membolehkan PKS memohon untuk menunda/ menstrukturkan semula pembayaran caruman syer majikan bagi bulan April, Mei, dan Jun 2020 5.1 juta ahli RM14.55 bilion 13,090 permohonan RM84.95 juta 20 LEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 2020LAPORAN KHAS4 INISIATIF LUAR BIASA BAGI SITUASI YANG TIDAK TERJANGKA Inisiatif untuk Ahli (a) Pengurangan kadar caruman pekerja untuk tahun 2020 dan 2021 Sebagai sebahagian daripada pakej rangsangan ekonomi pertama kerajaan, KWSP mengisytiharkan pengurangan kadar caruman berkanun syer pekerja dari 11% kepada 7% pada bulan Februari 2020.
Pengurangan kadar caruman sebanyak 7% diberikan secara automatik kepada semua ahli di bawah usia 60 tahun, bermula dari bulan April hingga akhir tahun 2020, melainkan ahli tersebut memilih untuk mengekalkannya.

Inisiatif ini bertujuan untuk meningkatkan pendapatan boleh guna ahli untuk mengurangkan kesan COVID-19 dan merangsang pertumbuhan ekonomi.
Sejumlah 3.3 juta ahli memilih pengurangan kadar caruman ini untuk tahun 2020, manakala pada akhir tahun 2020, sejumlah 3.1 juta ahli memilih pengurangan kadar untuk tahun 2021.

(b) Kemudahan Pengeluaran i-Lestari (i-Lestari) Pada 23 Mac 2020, Perdana Menteri mengumumkan bahawa ahli di bawah usia 55 tahun boleh memohon untuk mengeluarkan simpanan dari Akaun 2 KWSP sehingga 12 bulan bermula dari 1 April 2020 hingga 31 Mac 2021 untuk membantu ahli mendepani tempoh yang tidak menentu.
i-Lestari membolehkan ahli mengeluarkan sebanyak RM50 hingga RM500 sebulan sekiranya mempunyai simpanan dalam Akaun 2 mereka.

Untuk terus menyediakan perkhidmatan kepada ahli kami semasa tempoh PKP, KWSP menyediakan kemudahan permohonan i-Lestari secara dalam talian.

Bagi permohonan yang diluluskan, amaun pengeluaran dikreditkan terus secara elektronik ke akaun bank pemohon tanpa perlu menghadirkan diri ke cawangan KWSP.

Ini membolehkan ahli membuat permohonan dan pada masa yang sama mematuhi PKP.
Pembangunan teknikal bagi i-Lestari dilaksanakan oleh kakitangan KWSP hanya dalam sekitar 10 hari sahaja.

Proses ini dilaksanakan secara dalaman kerana KWSP tidak dapat memanfaatkan penyedia perkhidmatan teknologi maklumat luar semasa PKP berkuat kuasa.

Di samping itu, KWSP juga mengambil langkah untuk meningkatkan keselamatan siber bagi kemudahan ini dan mencegah sebarang kemungkinan ancaman siber.
Inisiatif untuk Majikan (a) Khidmat Nasihat Majikan (EAS) Pada 15 April 2020, KWSP memperkenalkan EAS untuk memberikan khidmat nasihat khusus kepada majikan bagi membantu mereka menunaikan tanggungjawab terhadap KWSP semasa tempoh kelembapan ekonomi akibat COVID-19.
Pegawai KWSP yang dilantik akan menilai keadaan kewangan syarikat yang terjejas dan memberi nasihat berdasarkan jadual caruman KWSP yang disesuaikan dengan situasi majikan, sama ada melibatkan penyusunan semula jadual caruman atau pembayaran berperingkat untuk caruman tertunggak.

EAS dijangka memberi manfaat kepada lebih daripada 480,000 PKS dan syarikat lain.
Melalui khidmat nasihat yang diberikan dan penyesuaian jadual caruman, KWSP berusaha untuk membolehkan PKS yang terlibat menghadapi kelembapan ekonomi.

Langkah ini juga boleh meminimumkan keperluan memberhentikan pekerja dalam kalangan PKS, yang menyediakan sekitar 7.6 juta pekerjaan di seluruh negara.
21 WWW.KWSP.GOV.MYLAPORAN TAHUNAN 2020LAPORAN KHAS4 INISIATIF LUAR BIASA BAGI SITUASI YANG TIDAK TERJANGKA (b) Program Bantuan Majikan COVID-19 (e-CAP) Untuk menyokong inisiatif EAS, KWSP juga melancarkan e-CAP pada bulan April 2020.

Ini membolehkan PKS yang layak memohon untuk menyusun semula caruman syer majikan daripada caruman KWSP untuk bulan April, Mei, dan/ atau Jun 2020.
Bayaran caruman untuk bulan yang dimohon dapat ditangguhkan selama tiga bulan dan setelah itu dapat dijelaskan dalam jangka masa tambahan hingga tiga bulan.

Sebagai contoh, majikan yang layak boleh memilih untuk menangguhkan caruman untuk bulan April 2020 selama tiga bulan hingga Julai 2020 dan membuat pembayaran berkala selama tiga bulan dari bulan Julai hingga September 2020.
PKS layak menyertai e-CAP sekiranya: Mempunyai 200 orang pekerja atau kurang dalam senarai gaji Membayar semua caruman bulanan (bahagian pekerja dan majikan) sehingga tarikh caruman Februari 2020 (iaitu caruman untuk Januari 2020) Membayar bahagian caruman pekerja untuk bulan yang diminta (April, Mei, dan / atau Jun 2020) e-CAP memberi PKS sedikit kelonggaran dari kekangan aliran tunai pada bulan-bulan kritikal tersebut.
Sehingga 31 Disember 2020, sebanyak 13,090 permohonan telah diluluskan berjumlah RM84.95 juta.

(c) Mengubah tarikh pembayaran caruman oleh majikan Untuk memberikan bantuan tambahan kepada majikan yang menghadapi masalah aliran tunai semasa PKP, KWSP membenarkan majikan menangguhkan pembayaran caruman wajib bulanan mereka yang biasanya dijelaskan pada 15 hingga 30 bulan untuk bulan Mei 2020 hingga Julai 2020.
Kemudahan ini membolehkan majikan memenuhi tanggungjawab mereka untuk membayar sebahagian caruman KWSP pekerja dan juga majikan.

Memandangkan tempoh PKP dilanjutkan, KWSP telah memanjangkan tempoh pembayaran caruman yang tertunggak hingga 31 Disember 2020.

MEMENUHI JANGKAAN DALAM PERSEKITARAN BAHARU KWSP telah melaksanakan misinya untuk melindungi simpanan ahli selama beberapa dekad bagi membantu mereka mencapai masa depan yang lebih baik.
Berikutan penularan COVID-19, KWSP telah mengambil langkah segera dan memperkenalkan inisiatif baharu seperti i-Lestari.

Kemudahan ini membolehkan ahli mengakses simpanan persaraan mereka untuk memenuhi keperluan hidup yang mendesak.

Untuk membantu majikan, KWSP menyediakan kemudahan seperti e-CAP untuk menyokong kelangsungan perniagaan terutamanya PKS yang terjejas teruk sepanjang tempoh perintah kawalan pergerakan.
Tahun 2020 berlangsung dalam persekitaran yang tidak terjangka yang pastinya menimbulkan pelbagai kesukaran kepada semua pihak.

Contohnya, platform dalam talian KWSP dibanjiri dengan jumlah panggilan yang sangat tinggi apabila ahli dan majikan cuba menghubungi KWSP semasa pelaksanaan PKP yang pertama.

Dalam memenuhi keperluan mereka, KWSP mengambil langkah untuk menyesuaikan operasi dengan persekitaran unik dan yang belum pernah terjadi sebelum tahun 2020.
KWSP telah bangkit mendepani cabaran untuk terus produktif dalam norma baharu dan memberi perkhidmatan terbaik kepada ahli dan majikan.

Kakitangan KWSP telah menyesuaikan diri dengan pantas untuk bekerja dari rumah dan meningkatkan keupayaan 22 LEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 2020LAPORAN KHAS4 INISIATIF LUAR BIASA BAGI SITUASI YANG TIDAK TERJANGKA dan kemampuan digital tanpa mendedahkan organisasi kepada risiko keselamatan.
Selain itu, untuk memastikan keselamatan pelanggan dan kakitangan di cawangan, Janji Temu Online telah dibangunkan bagi mengawal jumlah janji temu dan ahli yang berurusan di cawangan KWSP.

MELANGKAH KE HADAPAN Pandemik COVID-19 telah mempengaruhi corak kehidupan dengan cara yang tidak terjangka.

Dengan mempertimbangkan keperluan ahli dan majikan, KWSP berusaha untuk memberikan penyelesaian bagi individu dan perniagaan yang menghadapi masalah kewangan.
Walau bagaimanapun, kami ingin menekankan bahawa inisiatif yang dilaksanakan hanyalah langkah kawalan jangka pendek bagi mengurangkan kesan COVID-19.

KWSP akan terus menumpukan kepada matlamat utamanya sebagai sebuah dana persaraan.

Keutamaan akan diberikan untuk memelihara dan meningkatkan jumlah simpanan persaraan dalam menyediakan perlindungan sosial demi masa depan ahli.

yang sangat memerlukan dan pada masa yang sama melindungi simpanan persaraan mereka.
Melangkah ke hadapan, KWSP akan terus menyediakan perkhidmatan kepada ahli dan majikan, serta menyokong mereka yang menghadapi kesukaran sekiranya tempoh pandemik berpanjangan.

Kami juga akan memainkan peranan yang lebih aktif dalam membantu kerajaan dan bekerjasama dengan organisasi yang berkaitan melalui Majlis Perlindungan Sosial Malaysia (MySPC), untuk meningkatkan sistem perlindungan sosial yang merangkumi semua rakyat Malaysia.
KWSP akan meningkatkan program khidmat jangkauan untuk mendidik dan memperkukuh pengetahuan kewangan yang luas dalam kalangan ahli, dan menyokong usaha untuk meningkatkan keupayaan mereka dalam menangani cabaran kewangan masa hadapan.

Kami juga menggalakkan ahli untuk bertemu dengan pegawai Khidmat Nasihat Persaraan (RAS) KWSP bagi membantu merancang kewangan mereka ke arah persaraan yang lebih baik.
KWSP percaya bahawa pemberian inisiatif ini merupakan jalan tengah yang dapat mengimbangi keperluan untuk memberikan bantuan bersasar kepada golongan Walaupun masih belum jelas bilakah pandemik COVID-19 akan berakhir, kami yakin bahawa kesabaran, ketekunan, dan kepercayaan yang teguh akan membolehkan semua pihak menempuhi tempoh yang mencabar ini.
23 WWW.KWSP.GOV.MYLAPORAN TAHUNAN 2020LAPORAN KHAS4 SOROTAN LIMA TAHUN KEWANGAN 2016 2017 2018 2019 2020 Ringkasan Keputusan Kewangan Pendapatan Pelaburan Kasar* 46,557.22 53,139.68 49,436.69 49,756.59 55,743.64 Pendapatan Pelaburan Bersih 37,917.09 49,231.23 48,175.69 48,485.10 53,955.24 Lain- lain Pendapatan***** 196.31 171.82 200.05 172.51 127.56 Jumlah Pendapatan Jumlah Perbelanjaan** Pendapatan Bersih 38,113.39 49,403.05 48,375.74 48,657.61 54,082.80 1,248.26 1,412.83 1,483.30 1,439.00 1,498.99 36,865.13 47,990.22 46,892.44 47,218.61 52,583.81 Dividen Dikreditkan ke Akaun Ahli 37,076.32 48,130.15 47,312.80 45,817.42 47,642.29 Ringkasan Kedudukan Kewangan RM Million Jumlah Aset Bersih Boleh Diagihkan Kepada Ahli*** Jumlah Aset Jumlah Liabiliti 737,048.39 810,399.34 832,310.41 924,882.09 999,997.99 742,324.48 813,425.35 836,542.19 927,894.93 1,003,372.15 5,276.09 3,026.01 4,231.78 3,012.84 3,374.17 Nisbah Kewangan Utama Percentage (%) Pulangan Pelaburan 7.12 7.30 6.57 Jumlah Perbelanjaan Keatas Jumlah Pendapatan**** Jumlah Perbelanjaan Keatas Jumlah Aset Pertumbuhan Pelaburan Kadar Dividen Tahunan: Simpanan Konvensional Kadar Dividen Tahunan: Simpanan Shariah 2.67 2.86 3.07 0.17 7.34 5.70 - 0.17 8.96 6.90 6.40 0.18 9.87 6.15 5.90 5.71 2.96 6.13 2.77 0.16 0.15 8.50 7.13 5.45 5.00 5.20 4.90 * ** *** Pendapatan Pelaburan Kasar dan Pendapatan Pelaburan Bersih selepas mengambil kira Turun Nilai Kos atas Ekuiti Tersenarai.
Pendapatan Pelaburan Kasar & Pendapatan Pelaburan Bersih Dinyatakan semula bagi tahun 2019.

Terdiri daripada Perbelanjaan Operasi dan Caj Berkanun.

Terdiri daripada Akaun Caruman, Lebihan Kumulatif dan Rizab Aset Kewangan pada Nilai Saksama melalui Pendapatan Komprehensif Lain.

**** Jumlah Pendapatan termasuk Rosot Nilai Bersih atas Aset Kewangan dan Pelaburan dalam Syarikat Subsidiari dan Bersekutu.

***** Lain-lain Pendapatan termasuk Pendapatan Tidak Patuh Syariah Diiktiraf dalam Lebihan Kumulatif.
24 PRESTASILEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20205 SOROTAN LIMA TAHUN KEWANGAN JUMLAH PENDAPATAN (RM Juta) 5 0 .

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6 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 25 PRESTASIWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20205 MENYUSURI JEJAK KEJAYAAN KWSP: 1951-2020 1961 • Tan Sri Dato’ Abdul Jamil Abdul Rais, menjadi rakyat Malaysia pertama dilantik sebagai Pengerusi Lembaga KWSP.

1963 • Pindaan Ordinan KWSP mewajibkan majikan yang mempunyai sekurang- kurangnya tiga orang pekerja untuk mencarum, berbanding lima atau lebih pekerja.
1967 • Pemprosesan data berautomasi diperkenalkan dengan pemasangan komputer kerangka utama.

1968 • Ordinan KWSP dipinda bagi membolehkan ahli yang berumur 50 tahun mengeluarkan satu pertiga simpanannya untuk membeli rumah dan membuat persediaan untuk persaraan.

1969 • Liputan perlindungan KWSP diperluaskan ke Sabah dan Sarawak.

1970 1970 • Saiz aset KWSP telah meningkat kepada RM2.1 bilion, dengan jumlah ahli hampir dua juta orang.
1975 • Kadar caruman telah dinaikkan kepada 6% untuk pekerja dan 7% untuk majikan.

Setakat ini, KWSP terdiri daripada 2.6 juta ahli dan 75,000 majikan berdaftar.

1977 • Beberapa pindaan telah dibuat ke atas Ordinan KWSP untuk: (a) Meningkatkan kadar caruman pekerja; (b) Membenarkan golongan bekerja sendiri memilih untuk mencarum dengan KWSP; dan (c) Membenarkan ahli mengeluarkan simpanan sehingga 10% daripada harga rumah untuk membeli rumah kos rendah.
1980 1980 • Jumlah ahli meningkat kepada 3.7 juta dengan majikan berdaftar hampir mencecah 110,000.

Caruman diterima untuk tahun ini melepasi tahap RM1 bilion.

Kadar caruman untuk pekerja dinaikkan daripada 6% kepada 9% dan majikan daripada 7% kepada 11% mulai 1 Disember.

1981 • Bagi menyambut ulang tahun ke-30 KWSP, Menteri Kewangan meletakkan batu asas bangunan baru KWSP setinggi 28 tingkat di Jalan Raja Laut, Kuala Lumpur.

1982 • Pada 22 Julai, Ordinan KWSP 1951 menjadi Akta KWSP 1951.
1983 • KWSP mengisytiharkan kadar dividen tertinggi sebanyak 8.5% yang kekal sehingga tahun 1987.

1951 1951 • Kumpulan Wang Simpanan Pekerja (KWSP) ditubuhkan di bawah Ordinan KWSP 1951, dan diletakkan di bawah pentadbiran Pengarah Pos Kebangsaan.

1952 • Rangkaian KWSP berkembang dengan pendaftaran 518,948 ahli dan 11,918 majikan.

Caruman dikutip berjumlah RM2.6 juta.


1956 • KWSP telah melabur dalam pelaburan jangka pendek dan jangka panjang dalam sekuriti Kerajaan Persekutuan, Singapura dan Majlis Tempatan.

1958 • Lembaga KWSP mengambil alih pentadbiran KWSP daripada Pengarah Pos Kebangsaan.

1960 1960 • Bangunan ibu pejabat di Petaling Jaya, Selangor dibuka dengan rasmi pada bulan November.
26 PRESTASILEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20205 1990 • Untuk pertama kalinya, KWSP melabur dalam bon korporat dan menambah bilangan pengurus portfolio.

1991 1991 • KWSP menyambut ulang tahun ke- 40.

Akta KWSP 1951 (Pindaan 1982) digantikan dengan Akta KWSP 1991.

• Meliberalisasi peraturan pelaburan dan menambah baik skim pengeluaran dan memperkukuh penguatkuasaan.
1993 • Buat pertama kalinya KWSP menerokai pembiayaan projek dan usahasama, selaras dengan inisiatif penswastaan kerajaan.

1995 • Kursus Keselamatan Sosial yang pertama di negara ini telah diperkenalkan, dihadiri oleh pegawai-pegawai daripada KWSP dan organisasi keselamatan sosial yang lain.
1996 • Skim Pelaburan Ahli dilancarkan, membolehkan ahli yang mempunyai simpanan melebihi RM55,000 dalam Akaun 1 untuk melabur dalam unit amanah melalui Institusi Pengurusan Dana yang dilantik oleh Suruhanjaya Sekuriti.

1997 • Kerja pembinaan Institut Latihan Keselamatan Sosial KWSP di Bangi, Selangor dimulakan.

1999 • Jabatan Komputer KWSP berjaya memastikan semua sistem dalaman patuh Y2K.
MENYUSURI JEJAK KEJAYAAN KWSP: 1951-2020 membenarkan ahli yang mempunyai simpanan melebihi RM1 juta untuk menguruskan sendiri simpanan mereka.

2008 • Bermula 1 Februari, tanggungan untuk mencarum kepada KWSP dilanjutkan daripada umur 55 tahun hingga 75 tahun.

KWSP juga meletakkan sasaran Simpanan Asas mengikut pelbagai peringkat umur untuk membolehkan ahli mengumpul simpanan minimum sebanyak RM120,000 menjelang usia 55 tahun.
• KWSP menubuhkan Kursi Keselamatan Sosial yang pertama di negara ini di Universiti Malaya.

• KWSP juga membuka Pejabat Wilayah bagi Persatuan Keselamatan Sosial Antarabangsa untuk negara-negara ASEAN di Kuala Lumpur bertujuan meningkatkan kerjasama dalam bidang pembangunan keselamatan sosial agensi-agensi berkaitan di kalangan negara ASEAN.

2000 2000 • KWSP memperkenalkan Skim Pengeluaran Pendidikan dan Skim Pengeluaran Pekerja Berpencen.
2001 • Ahli KWSP meningkat kepada 10 juta dan jumlah aset mencecah RM186 bilion.

Pada bulan April, Tan Sri Azlan Zainol dilantik sebagai Ketua Pegawai Eksekutif KWSP.

2003 • KWSP menubuhkan Pusat Pengurusan Perhubungan dan Kaunter Perkhidmatan Pelanggan KWSP (one-stop centre) di Pejabat KWSP Wilayah Persekutuan, Jalan Raja Laut, Kuala Lumpur.

• Projek Rekayasa Semula Proses 2009 • KWSP memperkenalkan Polisi Anti-Fraud dan Pendedahan Maklumat.
• KWSP juga telah dianugerahkan Penarafan Lima Bintang oleh Unit Pemodenan Tadbiran dan Perancangan Pengurusan Malaysia (MAMPU).

Perniagaan atau dikenali sebagai SERVE (Service Excellence) untuk mereka bentuk dan memperkemaskan proses kerja utama KWSP serta sistem teknologi maklumat (IT) yang melibatkan penggantian sistem terasnya.
2004 • KWSP memperkenalkan sistem pengurusan Balanced Scorecard sebagai sebahagian daripada strategi untuk menjadikan KWSP sebuah organisasi keselamatan sosial bertaraf dunia dan agensi kerajaan terbaik di Malaysia.

• e-Kiosk, yang membolehkan ahli memperoleh penyata kira-kira mereka menggunakan MyKad ditempatkan di 13 pejabat KWSP negeri dan 28 cawangan di seluruh negara.
2007 • KWSP memperkenalkan inisiatif ‘Bukan Hanya Simpanan’ yang menstruktur semula akaun ahli daripada tiga kepada dua; memperkenalkan Pengeluaran Fleksibel Umur 55 Tahun; dan 2010 2010 • KWSP melancarkan Skim Simpanan Persaraan 1Malaysia untuk golongan bekerja sendiri dan kemudian diperluaskan termasuk untuk suri rumah.

• KWSP juga memperkenalkan sistem elektronik Pilihan Pelaburan Ahli yang menggantikan sistem manual permohonan pengeluaran simpanan ahli KWSP untuk melabur dalam saham amanah.
27 PRESTASIWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20205 MENYUSURI JEJAK KEJAYAAN KWSP: 1951-2020 2011 • KWSP memperluaskan senarai penyakit kritikal di bawah Pengeluaran Kesihatan daripada 39 penyakit kepada 55 penyakit dan turut membenarkan ahli membeli peralatan bantuan kesihatan berkuat kuasa pada 15 Julai.

2012 • KWSP telah menerima Penarafan Lima Bintang sebagai agensi barisan hadapan terbaik buat kali kedua, yang dianugerahkan oleh MAMPU.
2013 • KWSP memperkenalkan e-Caruman, kemudahan secara dalam talian yang membolehkan majikan membayar caruman KWSP melalui i-Akaun di laman web KWSP (www.kwsp.gov.my).

• e-Pengeluaran diperkenalkan bagi membolehkan ahli mengemukakan permohonan pengeluaran secara dalam talian menerusi i-Akaun.

• Datuk Shahril Ridza Ridzuan telah dilantik sebagai Ketua Pegawai Eksekutif KWSP pada 16 April.
2014 • KWSP menyemak semula Simpanan Asas kepada RM196,800 sebagai amaun minimum ahli perlu ada dalam akaun KWSP mereka menjelang umur 55 tahun.

• KWSP memperkenalkan aplikasi mudah alih pertama yang dikenali sebagai ‘i-Akaun’.

• KWSP turut memperkenalkan Khidmat Nasihat Persaraan di cawangan Jalan Raja Laut, Kuala Lumpur dan Jalan Gasing, Petaling Jaya.
2015 • KWSP mengumumkan hasil kaji selidik rundingan ahli yang telah mendapat sambutan yang menggalakkan dengan jumlah maklum balas sebanyak 96,448 responden.

Sebanyak 65.7% responden merupakan ahli yang berumur 40 tahun dan ke bawah.

Ini bermakna ahli yang berumur di bawah 40 tahun semakin berminat dalam merancang masa depan persaraan mereka.
28 2016 • KWSP memperkenalkan Simpanan 2019 • Menteri Kewangan, Lim Guan Eng Shariah yang merupakan satu inisiatif yang membolehkan ahli memilih untuk simpanan diuruskan dan dilaburkan mengikut prinsip syariah.

Pendaftaran Simpanan Shariah dimulakan pada 8 Ogos dan ahli diberikan sehingga 23 Disember untuk memilih untuk bertukar.

2017 • KWSP mengumumkan pengklasifikasian data melibatkan bilangan ahli KWSP dan majikan bermula laporan operasi suku ketiga.
• KWSP juga mengumumkan empat melancarkan Belanjawanku: Panduan Perbelanjaan Untuk Individu & Keluarga di Malaysia, hasil kolaborasi KWSP bersama Pusat Penyelidikan Kesejahteraan Sosial, Universiti Malaya.

• KWSP mengumumkan bahawa KWSP telah menandatangani Prinsip Pelaburan Bertanggungjawab yang disokongi Persatuan Bangsa-Bangsa Bersatu (PRI) pada bulan April.

Ini menandakan komitmen KWSP terhadap pelaburan bertanggungjawab serta amalan terbaik Alam Sekitar, Sosial, dan Tadbir Urus (ESG).
penambahbaikan ke atas skim dan polisi yang akan berkuatkuasa 1 Januari 2018 sebagai usaha berterusan untuk menambah baik dan memenuhi jangkaan ahli.

• KWSP terus menambah nilai kepada ahli dalam menuju ke arah masa depan digital dengan melancarkan i-Invest pada bulan September.

• KWSP menganjurkan Persidangan Kesejahteraan Sosial Antarabangsa 2019, bagi mencerminkan anjakan tumpuan kepada isu-isu ekonomi jangka panjang, alam sekitar dan masyarakat.
2020 • Kadar caruman berkanun bagi pekerja dikurangkan kepada 7% daripada 11% bermula bulan April hingga Disember 2020.

• KWSP telah menganjurkan Kaji Selidik Rundingan Awam KWSP 2020 bagi mengumpul maklumat untuk membangun, menambah baik dan merangka semula skim KWSP untuk memenuhi keperluan masa depan.
• Bagi membantu ahli, majikan dan perniagaan menghadapi kesan pandemik COVID-19, KWSP melancarkan kemudahan Pengeluaran i-Lestari, Khidmat Rundingan Majikan (EAS), dan Program Bantuan Majikan COVID-19 (e-CAP) pada bulan April dan kemudahan Pengeluaran i-Sinar pada bulan Disember.

• Raja Permaisuri Agong telah menyempurnakan pelancaran pengeluaran kesihatan untuk rawatan kesuburan.
2018 2018 • Buat pertama kalinya KWSP mengisytiharkan 6.40% untuk Simpanan Shariah 2017 dengan jumlah agihan dividen sebanyak RM3.98 bilion.

• Kebakaran bangunan ikonik KWSP • Petaling Jaya.

Tiada korban dilaporkan dan anggota dipindahkan ke cawangan dan pejabat lain.

Timbalan Perdana Menteri, Dato’ Seri Dr Wan Azizah Wan Ismail melancarkan Caruman Sukarela Insentif Suri (i-Suri) di Persidangan Keselamatan Sosial KWSP 2018.
• Pada bulan Ogos, Tunku Alizakri Alias dilantik sebagai Ketua Pegawai Eksekutif KWSP menggantikan Datuk Shahril Ridza Ridzuan yang dilantik sebagai Pengarah Urusan Khazanah Nasional Berhad.
PRESTASILEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20205 STRUKTUR KORPORAT KUMPULAN Hartanah 100% Kwasa Properties Sdn Bhd 100% Kwasa Land Sdn Bhd 100% Naungan Sentosa Sdn Bhd 100% Kwasa Logistics Sdn Bhd 100% Common Icon Sdn Bhd 100% 100% 100% Yarra Development Holdings (Australia) Sdn Bhd Tanjung Wibawa Sdn Bhd Symphony Insight Sdn Bhd 100% Alpha Real Estate Investment Trust PPNK - Harta Sdn Bhd YTR Harta Sdn Bhd 100% Kwasa Utama Sdn Bhd 85% 80% 100% Affordable Homes Sdn Bhd # 40% Nusa Gapurna Development Sdn Bhd Bandar Eco-Setia Sdn Bhd Jelas Puri Sdn Bhd Panca Pesona Sdn Bhd 34% 30% 30% 29.27% Iskandar Capital Sdn Bhd 20% Iskandar Investment Berhad Institusi Kewangan 65.39% Malaysia Building Society Berhad 98.33% Rashid Hussain Berhad # - 42.80% RHB Bank Berhad 20% RHB Capital Berhad * FWD Takaful Berhad Pembinaan 35.85% Malaysian Resources Corporation Berhad Infrastruktur/Pengeluaran Global 100% Pinggiran Ventures Sdn Bhd 100% Ekuiti Merdu Sdn Bhd 49% 40% PLUS Malaysia Berhad Konsortium Lebuhraya Utara- Timur (KL) Sdn Bhd 100% Kwasa Suria Sdn Bhd # 100% Melati Infrastruktur Sdn Bhd # Nota: * Syarikat ini telah dibubarkan pada 24 Mac 2020.
# Syarikat ini di dalam proses penggulungan setakat 31 Disember 2020.

Rujuk Nota 39 dan 40 kepada Penyata Kewangan KWSP 2020 untuk mendapatkan senarai lengkap syarikat subsidiari, bersekutu dan usaha sama KWSP.

100% KWASA Global (Jersey) Limited 100% KWASA Global-I (Jersey) Limited 100% KWASA Invest Limited 100% Kwasa Singapore Solo Pte.

Ltd. 100% Kwasa Singapore Duo Pte.

Ltd. 100% Kwasa Singapore Trio Pte.
Ltd. 100% KWASA Europe S.à r.l 100% KWASA Europe-I S.à r.l 100% Kwasa Infrastructure I 100% Kwasa Capital Limited 100% KWASA Capital Partners Limited 100% Kwasa Asia 100% KWASA US 100% Kwasa Infrastructure Alpha 100% Kwasa Infrastructure Beta 100% Kwasa Emerald 100% KWASA Korea Limited 100% ADF Kwasa Korea Professional Investment Private Real Estate Investment LLC 100% Kwasa Infrastructure Sapphire 99.50% Cengal Private Equity Investments plc 99.47% Cengal Private Equity Investments II plc 99.53% Cengal Private Equity Investments III plc 99.50% Merbau Investors Offshore, L.P. 99.18% Merbau Investors Offshore, II L.P. 99.01% Merbau Investors Offshore, III L.P. 99.25% Meranti Fund L.P. 99.25% Meranti Fund II L.P. 99% 99% 99% Jati Private Equity Fund L.P. Jati Private Equity Fund II L.P. Jati Private Equity Fund III L.P. 29 PRESTASIWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20205 68 CAWANGAN DI SELURUH MALAYSIA PERLIS • Kangar KEDAH • Alor Setar • Kulim • Langkawi • Sungai Petani PULAU PINANG • Bayan Baru • Georgetown • Seberang Jaya PERAK • Ipoh • Kuala Kangsar • Manjung • Parit Buntar • Taiping • Teluk Intan SELANGOR • Gombak • Kajang • Klang • Kuala Selangor • Petaling Jaya • Puchong • Rawang • Shah Alam 30 WILAYAH PERSEKUTUAN KUALA LUMPUR • Jalan Raja Chulan • Kepong • Kuala Lumpur • Seri Petaling • Wangsa Maju MELAKA • Alor Gajah • Bandar Melaka • Jasin KELANTAN • Kota Bharu • Kuala Krai • Tanah Merah TERENGGANU • Dungun • Jerteh • Kemaman • Kuala Terengganu PAHANG • Jerantut • Kuantan • Pekan • Raub • Temerloh NEGERI
 SEMBILAN • Bahau • Nilai • Seremban JOHOR • Batu Pahat • Johor Bahru • Kluang • Kulai • Mersing • Muar • Segamat PRESTASILEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20205 68 CAWANGAN DI SELURUH MALAYSIA 52Lokasi di Semenanjung Malaysia 16 Lokasi di Sabah, Sarawak dan Wilayah Persekutuan Labuan SABAH • Beaufort • Keningau • Kota Kinabalu • Kota Marudu • Kudat • Lahad Datu • Sandakan • Tawau WILAYAH PERSEKUTUAN LABUAN • Labuan SARAWAK • Bintulu • Kuching • Limbang • Miri • Sarikei • Sibu • Sri Aman 31 PRESTASIWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20205 68 CAWANGAN DI SELURUH MALAYSIA Zon Cawangan Alamat No.
Telefon Zon Cawangan Alamat No.

Telefon Sungai Petani Tingkat Bawah & 1, 04-4225800 Shah Alam Perlis Kangar Kedah Alor Setar Kulim Langkawi Tingkat Bawah, Blok Podium, Bangunan KWSP, Jalan Bukit Lagi, 01000 Kangar, Perlis Aras Bawah, Mezzanine, 8 & 9, Bangunan KWSP Peladang, No.

33, Jalan Sultan Badlishah, 05000 Alor Setar, Kedah No.
33 & 34, Persiaran 7, Kulim Avenue, Kulim Hi-Tech Park, 09000 Kulim, Kedah No 25 (GF-1), Langkawi City, Mukim Kuah, 07000 Kuah, Langkawi, Kedah 04-7332506 04-4034600 Pulau Pinang Bayan Baru Wisma Keladi, No.

11A, Jalan Bank, 08000 Sungai Petani, Kedah Tingkat Bawah & Tingkat 1, Blok F-2, Lorong Bayan Indah 1, Bay Avenue, 11900 Bayan Baru, Pulau Pinang 04-6442841 Georgetown Menara KWSP, Tingkat 3 & 4, 04-2261000 Seberang Jaya Perak Ipoh No.
38, Jalan Sultan Ahmad Shah, 10050 Georgetown, Pulau Pinang Bangunan KWSP, Tingkat 1-5, No.

3009, Off Lebuh Tenggiri 2, 13700 Bandar Seberang Jaya, Pulau Pinang Tingkat Bawah, 6, 7 & 8, Bangunan KWSP, Jalan Greentown, 30450 Ipoh, Perak 04-3992000 05-2420000 04-9761190 Selangor Kuala Selangor Tingkat GF & 1, No.

1, Jalan Medan Niaga 6, Medan Niaga, 45000 Kuala Selangor, Selangor 03-32896504 Petaling Jaya Lot A, Ground Level, 03-79322913 Menara PJX-HM Shah Tower, No.
16 A, Persiaran Barat, 46050 Petaling Jaya, Selangor Puchong No 3A, The Prime @ Dataran Puchong, Taman Puchong Utama, 47100 Puchong, Selangor 03-80754747 04-9671405 Rawang Jalan Raja Chulan Wilayah Persekutuan Kuala Lumpur Kepong No.

3S-10-G & 3S-10-1, Rawang One, Jalan Pintas Rawang, 48000 Rawang, Selangor 03-60910286 Tingkat G, 1 & 2, Corporate Tower IDCC Shah Alam, Jalan Pahat L 15/L, 40200 Shah Alam, Selangor 03-55451577 Tingkat Bawah, Mezzanine & 1, No.
3, Bangunan KWSP, Changkat Raja Chulan, 50200 Off Jalan Raja Chulan, Kuala Lumpur No.

1 & 3, Jalan Laman Rimbunan Raya 1, Laman Rimbunan, 52100 Kepong, Kuala Lumpur 03-20786788 03-61794569 Kuala Lumpur Tingkat Bawah, 03-26946566 Bangunan KWSP, Jalan Raja Laut, 50350 Kuala Lumpur Seri Petaling No.

2, Jalan Radin Bagus 6, Bandar Baru Seri Petaling, 57000 Kuala Lumpur 03-90545249 Kuala Kangsar No.

8B, Tingkat Bawah & 1, 05-7767484 Wangsa Maju No.


32A, Dataran Wangsa, 03-41499499 Manjung Parit Buntar Taiping Teluk Intan Selangor Gombak Kajang Klang Jalan Raja Chulan, 33000 Kuala Kangsar, Perak No.

260 & 261, Jalan PPMP 3/4, Pusat Perniagaan Manjung Point 3, 32040 Seri Manjung, Perak No.

2 & 4, Jalan Wawasan 1, Taman Wawasan Jaya, 34200 Parit Buntar, Perak No.

37 (GF-2) & No.

39 (GF), Persiaran TBC, Taiping Business Centre Jalan Tupai, 34000 Taiping, Perak No.
1-3G, Jalan Intan 2, Bandar Baru Teluk Intan, 36000 Teluk Intan, Perak Lot 5, Sunway Batu Caves, 68100 Batu Caves, Selangor No.
1, Jalan Hentian 3, Pusat Hentian Kajang, Jalan Reko, 43000 Kajang, Selangor Tingkat Bawah & 1, Unit B-G-1, North Tower (Tower B), BBT One The Towers, Lebuh Batu Nilam 1, Bandar Bukit Tinggi, 41200 Klang, Selangor 05-6883800 Negeri Sembilan Bahau 05-7162428 05-8085889 05-6215600 03-61850780 03-87375223 03-33251626 Nilai Seremban Melaka Alor Gajah Bandar Melaka Jasin Wangsa Melawati, 53300 Kuala Lumpur No.
4, 5 & 6, Jalan Kiara 1, Pusat Perniagaan Kiara, 72100 Bahau, Negeri Sembilan D'Nilai Convention Mall, No.

G-6 & M-6, PT 9946, Jalan BBN 1/3F, Bandar Baru Nilai, 71800 Negeri Sembilan No.
1 Jalan Dato’ A.S. Dawood, 70100 Seremban, Negeri Sembilan 8670-Lot 10, Kompleks Perniagaan Alor Gajah, Jalan Besar, 78000 Alor Gajah, Melaka Bangunan KWSP, Jalan MITC, Hang Tuah Jaya, 75450 Ayer Keroh, Melaka JC 538, Tingkat Bawah & 1, Jalan Bestari 5, Bandar Jasin Bestari Seksyen 2, 77200 Bemban, Melaka 06-4542846 06-7953323 06-7663500 06-5565919 06-2853200 06-5216080 32 PRESTASILEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20205 68 CAWANGAN DI SELURUH MALAYSIA Zon Cawangan Alamat No.
Telefon Zon Cawangan Alamat No.

Telefon 07-4325436 Sarawak Bintulu Johor Batu Pahat Johor Bahru Kluang Kulai Mersing Muar Segamat Pahang Jerantut Kuantan Pekan Raub Temerloh Kelantan Kota Bharu Kuala Krai No.

6 & 8, Jalan Sulaiman, 83000 Batu Pahat, Johor Tingkat 1, 12-17, Bangunan KWSP, Jalan Dato’ Dalam, 80000 Johor Bahru, Johor No.

8 & 10, Tingkat Bawah, 1 & 2, Jalan Haji Manan, 86000 Kluang, Johor No.

259 & 260, Jalan Kenanga 29/8, Indahpura, 81000 Kulai, Johor Lot.

No.
No.

2, Tingkat Bawah, 1 & 2, Bandar Tepian Sungai, Jalan Jemaluang, 86800 Mersing, Johor Tingkat Bawah, 1, 2 & 3, No.

9, Jalan Petrie, 84000 Muar, Johor No.

5 & 6, Jalan Genuang Perdana, Taman Genuang Perdana, 85000 Segamat, Johor Tingkat Bawah, No.

7, Jalan Inderapura, 27000 Jerantut, Pahang Pejabat KWSP Kuantan, Bangunan KWSP Kuantan, Persiaran KWSP, Bandar Indera Mahkota, 25200 Kuantan, Pahang No.

10, Tingkat Bawah & Tingkat 1, Lorong Peramu Permai 1, Taman Peramu Permai, 26600 Pekan, Pahang No.
79, Jalan Tun Razak, 27600 Raub, Pahang No 128B (GF, 1F & 2F) & No 128A (GF), Persiaran Damai 1, Damai Court, 28000 Temerloh, Pahang Tingkat 2, 3 & 5, Bangunan KWSP, Jalan Padang Garong, 15000 Kota Bharu, Kelantan Lot PT 5556, Tingkat Bawah & Tingkat 1, Taman Yani, 18000 Kuala Krai, Kelantan 07-2225234 07-7724276 07-6625919 07-7982633 06-9539288 07-9437166 09-2667105 09-5739666 09-4264404 09-3551188 09-2962948 09-7445191 09-9606629 Kuching Limbang Miri Sarikei Sibu Sri Aman Labuan Wilayah Persekutuan Labuan Sabah Beaufort Block E, Sublot 7, Naim Bintulu Paragon, No.1, Old Airport Place, 97000 Bintulu, Sarawak Bangunan KWSP Kuching, Jalan Uplands, Beg Berkunci 2089, 93598 Kuching, Sarawak Lot 1565, Tingkat Bawah & Tingkat 1, Jalan Buangsiol, 98700 Limbang, Sarawak Lot 1255 & 1256, Blok 10, MCLD Centre Point, Jalan Melayu, 98008 Miri, Sarawak Tingkat GF & 1, No.
5, Jalan Nenas, 96100 Sarikei, Sarawak No.

10-12, Tingkat Bawah & 1, Lorong Kampung Datu 5, Jalan Kampung Datu, 96000 Sibu, Sarawak Tingkat Bawah & Tingkat 1, Lot 654, Blok 3, Daerah Bandar Simanggang, Jalan Hospital, 95000 Sri Aman, Sarawak Tingkat Bawah, Lot E004 Financial Park, Jalan Merdeka, 87000 Wilayah Persekutuan Labuan Tingkat GF & FF, Unit No.
A-005, Blok A, Beaufort Square Avenue 2, Jalan Binunuk, 89800 Beaufort, Sabah 086-312909 082-240331 085-213051 085-418418 084-655499 084-310611 083-327357 087-424963 087-225985 087-337820 Keningau Beg Berkunci 20, Jalan Masak, 89009 Keningau, Sabah Kota Kinabalu Blok A, Bangunan KWSP, 088-520100 Beg Berkunci 2019, 88598 Kota Kinabalu, Sabah Kota Marudu Lot No.
2, 088-662842 Kudat Tanah Merah Lot 655, Jalan Hospital, 09-9554200 Terengganu Dungun Jerteh Kemaman 17500 Tanah Merah, Kelantan Tingkat GF & 1, Lot PT 15824 (Unit 22), Sura Gate Commercial Centre, Jalan Sura Jeti, 23000 Dungun, Terengganu Tingkat GF & 1, Lot 226, Jalan Dato Kamaruddin, 22000 Jerteh, Terengganu Tingkat Bawah & Tingkat 1, PT 10720 & 10721, Taman Cukai Utama Fasa 4, Jln Kubang Kurus, 24000 Kemaman, Terengganu 09-8443269 Lahad Datu 09-6903778 Sandakan 09-8592132 Tawau Kuala Terengganu Bangunan KWSP, Jalan Kemajuan, Padang Hiliran, 21100 Kuala Terengganu, Terengganu 09-6225866 Taman WTK Fasa II, Jalan Tandek, 89100 Kota Marudu, Sabah Tingkat Bawah & Tingkat 1, Lot 1, Blok G, Jalan Mawar, Pekan Tomborungus, 89058 Kudat, Sabah Bangunan KWSP, MDLD 3330, Lot 65, Fajar Centre, Jalan Segama, Peti Surat 61828, 91126 Lahad Datu, Sabah Lot 3A & 5, Midtown Plaza, Beg Berkunci 36, Jalan Lintas Utara, 90000 Sandakan, Sabah Tingkat Bawah & 1, TB- 308, Blok 35, Kompleks Fajar, Jalan Perbandaran, 91000 Tawau, Sabah 088-622819 089-880801 089-210681 089-779740 33 PRESTASIWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20205 DIARI KORPORAT 2020 Januari 16 Mac 2 Mei 1 CEO Townhall di Ibu Pejabat KWSP OPS Kesan Kebangsaan PERKESO dan KWSP Pelantikan YBhg Tan Sri Ahmad Badri Mohd Zahir sebagai Pengerusi KWSP Baharu Februari 4 April Pelancaran EPF Live Chat (Fasa Pertama) Pelancaran Kemudahan Pengeluaran i-Lestari April CEO Townhall di Ibu Pejabat KWSP April 1 3 16 Mei 31 Pelancaran i-Akaun (Majikan) dengan paparan dan ciri-ciri baharu
 Jun 13 Lawatan Rasmi Menteri Kewangan Februari 21 Taklimat Dividen KWSP 2019 kepada Kongres Kesatuan Sekerja Malaysia (MTUC) dan Ahli Jawatankuasa Penasihat Shariah Februari 22 Taklimat Khas dan Pengumuman Dividen 2019 KWSP Sumbang Bilik Penginapan ELC untuk Petugas Barisan Hadapan COVID-19 April 17 Lawatan Rasmi Timbalan Menteri Kewangan II April 23 Pelancaran Program Bantuan Majikan COVID-19 (e-CAP) Julai Pelancaran Tinjauan Impak COVID-19 ke atas ahli KWSP Julai KWSP Beaufort beroperasi di lokasi baharu
 14 20 34 PRESTASILEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20205 DIARI KORPORAT 2020 Ogos 17 Oktober CEO Townhall di Ibu Pejabat KWSP Ulang Tahun KWSP ke-69 Oktober 1 5 Disember 7 KWSP Puchong beroperasi di lokasi baharu September 15 Sambutan Hari Kebangsaan dan Hari Malaysia di Ibu Pejabat KWSP September 21 KWSP Temerloh beroperasi di lokasi baharu Pelancaran Pengeluaran Kesihatan-Rawatan Kesuburan oleh DYMM Seri Paduka Baginda Raja Permaisuri Agong Oktober 8 Pelancaran Rundingan Awam KWSP Oktober 26-30 Minggu Literasi Kewangan 2020 November EPF Challenge Virtual 2020 November EPF Challenge e-Sport 2020 6 19 Disember 15-16 • EPF Knowledge Fair 2020 • Persidangan Pengurusan KWSP 2020 Disember Pelancaran Kemudahan Pengeluaran i-Sinar Disember 21 23 Majlis Pengiktirafan KWSP 2020 35 PRESTASIWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20205 PERNYATAAN TADBIR URUS KORPORAT Kami percaya bahawa tadbir urus korporat yang kukuh dan disokong oleh kepimpinan yang mantap serta amalan pengurusan yang baik dapat menyumbang kepada peningkatan integriti, kebertanggungjawaban dan ketelusan.
Kami akan terus menumpukan usaha untuk meningkatkan kesedaran dan mempraktikkan tadbir urus korporat yang baik.

Sebagai sebuah organisasi dana persaraan terbesar di Malaysia dengan aset pelaburan berjumlah RM1,000.10 bilion, kami berusaha menjadi peneraju dalam pelaburan lestari berlandaskan prinsip Alam Sekitar, Sosial dan Tadbir Urus (ESG) dalam pertimbangan pelaburan kami.
Pada tahun ini, KWSP meneruskan usaha untuk PROGRAM KOMUNIKASI DAN JANGKAUAN INTEGRITI meningkatkan kesedaran tadbir urus korporat dan amalan tadbir urus korporat dengan melaksanakan pelbagai Tahun 2020 merupakan tahun yang sangat mencabar inisiatif.

PENGURUSAN RISIKO RASUAH kerana penularan wabak COVID-19 di seluruh dunia.

Ia telah memberikan impak besar terhadap banyak perkara seperti gaya hidup, aktiviti sosial, produktiviti dan pekerjaan.
KWSP juga turut terkesan dengan pandemik ini KWSP telah membangunkan mekanisme Pengurusan Risiko dan tidak mempunyai banyak pilihan untuk mengadakan Rasuah (Corruption Risk Management) melalui sistem program secara bersemuka atau fizikal.

Bagaimanapun, Q-Radar sejak tahun 2019.

Ia merupakan salah satu inisiatif KWSP cepat bertindak menyesuaikan dengan keadaan antirasuah yang dilaksanakan oleh KWSP sepertimana semasa dan beralih kepada kaedah teknologi digital.
yang telah dinyatakan di dalam Pelan Integriti dan Antirasuah KWSP.

Pada tahun 2019, sebanyak 10 jabatan KWSP telah memperluas program komunikasi dan telah melaksanakan Pengurusan Risiko Rasuah, diikuti kesedaran kepada anggota tentang integriti dan dengan tambahan tiga jabatan dalam tahun 2020, yang antirasuah bagi mendidik dan memberi kesedaran menjadikan jumlah keseluruhan sebanyak 13 jabatan.

berkenaan integriti melalui platform digital.
Program yang Jabatan-jabatan yang telah melaksanakan Pengurusan dijalankan ialah Hari Integriti 2020 (HIT20), kuiz atas talian Risiko Rasuah adalah seperti berikut: “You vs. Integrity”, Krew Integrity Outreach Program (KOP) (a) Jabatan Perbendaharaan (b) Jabatan Pasaran Persendirian (c) Jabatan Ekuiti Domestik (d) Jabatan Ekuiti Luar Negara (e) Jabatan Pasaran Modal (f) Jabatan Penguatkuasaan (g) Jabatan Infrastruktur Digital (h) Jabatan Pengurusan Harta menerusi aplikasi Telegram, Kajian Perlakuan Beretika untuk anggota, Kajian Integriti dan Tadbir Urus untuk Lembaga KWSP dan Pengurusan Tertinggi, Video Edu Promo Integriti, E-mel Kesedaran Integriti, Portal Integriti dan Taklimat Kesedaran Integriti melalui aplikasi Zoom.
PELAN INTEGRITI DAN ANTIRASUAH KWSP Kerajaan telah melancarkan National Anti-Corruption (i) (j) Jabatan Pengurusan Perolehan Bekalan Plan (NACP) 2019 – 2023 pada awal tahun 2019 bagi Jabatan Perkhidmatan Pelaburan mencapai aspirasi “Malaysia Dikenali Kerana Integriti (k) Jabatan Penyelesaian Teras Digital Dan Bukannya Rasuah”.
Semua kementerian, jabatan, (l) Jabatan Penyelesaian Enterpris Digital agensi dan organisasi perlu membangunkan Pelan (m) Jabatan Keselamatan Digital Antirasuah Organisasi (OACP) dalam tempoh setahun dan melaporkan status kepada Jawatankuasa Antirasuah (JAR) Kementerian Kewangan setiap suku tahun.
Jabatan Integriti & Tadbir Urus (JITU), berpandukan National Anti-Corruption Plan (NACP) telah membangunkan Pelan 36 TADBIR URUSLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20206 PERNYATAAN TADBIR URUS KORPORAT Antirasuah Organisasi dan diberikan nama (b) Polisi Tajaan dan Sumbangan/Derma KWSP Pelan Integriti dan Antirasuah KWSP yang merangkumi aspek tadbir urus, integriti dan Objektif polisi ini ialah membantu anggota menguruskan antirasuah dalam organisasi.
Pelan Integriti pengendalian tajaan dan sumbangan atau derma selaras dan Antirasuah KWSP ini telah diluluskan oleh dengan amalan tadbir urus baik.

Lembaga pada 29 April 2020.


STRUKTUR PELAPORAN JABATAN INTEGRITI & PEGAWAI INTEGRITI BERTAULIAH TADBIR URUS (JITU) Selaras dengan arahan Suruhanjaya Pencegahan Rasuah Malaysia (SPRM) supaya semua Unit Integriti Organisasi mempunyai Pegawai Selaras dengan Arahan Perdana Menteri Siri 1 Integriti Bertauliah (CeIO), KWSP telah mempunyai tiga (3) orang No.1/2018, berkenaan dengan Pemantapan Pegawai Integriti Bertauliah di Jabatan Integriti dan Tadbir Urus (JITU).
Tadbir Urus, Integriti Dan Antirasuah Dalam Semua pegawai di JITU disasarkan akan mempunyai pentauliahan Pengurusan - Penubuhan Unit Integriti Dan Certified Integrity Officer (CeIO) menjelang 2022.

Tadbir Urus yang dikeluarkan pada 5 Oktober 2018, KWSP telah menambah baik struktur pelaporan dengan melaporkan kepada Jawatankuasa Pengurusan Risiko Lembaga melalui Jawatankuasa Integriti Pengurusan.
Lembaga pada 29 April 2020, telah meluluskan struktur pelaporan baharu ini bagi memastikan JITU dapat berfungsi dengan lebih bebas, adil dan bersifat berkecuali dalam memberikan khidmat nasihat kepada Lembaga, Pengurusan dan anggota KWSP.

POLISI ANTIRASUAH BAHARU KWSP telah memperkenalkan dua polisi antirasuah baharu bagi meningkatkan integriti, tadbir urus dan menutup ruang dan peluang berlaku rasuah.

Polisi ini telah diluluskan oleh Jawatankuasa Pengurusan Risiko Lembaga pada 30 November 2020.
Ringkasan berkenaan polisi tersebut adalah seperti berikut: (a) Polisi Antirasuah KWSP Polisi Antirasuah ini adalah salah satu inisiatif Pengurusan seperti yang terdapat di dalam Pelan Integriti dan Antirasuah KWSP.

Ia menjadi prinsip panduan dan sumber rujukan utama anggota mengenai pembasmian rasuah, salah guna kuasa dan konflik kepentingan.
LEMBAGA DAN PANEL PE L ABURAN MENTERI KEWANGAN (KERAJAAN) LEMBAGA PANEL PELABURAN JAWATANKUASA LEMBAGA (8 Jawatankuasa Lembaga) JAWATANKUASA RISIKO PANEL PELABURAN PENGURUSAN JAWATANKUASA PENGURUSAN PELABURAN JABATAN BERKAITAN JABATAN-JABATAN PELABURAN 37 TADBIR URUSWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20206 PERNYATAAN TADBIR URUS KORPORAT PROSES PELANTIKAN LEMBAGA DAN PANEL PELABURAN Ahli Lembaga dan Panel Pelaburan serta Ketua Pegawai Eksekutif (KPE) dilantik oleh Menteri Kewangan.
Menteri Kewangan hanya melantik mereka yang telah terbukti mempunyai rekod integriti, kebolehan dan kebolehpercayaan untuk menjalankan tanggungjawab mereka dengan berkesan.

Setiap lantikan adalah untuk penggal dua tahun.

KOMPOSISI LEMBAGA DAN PANEL PELABURAN Akta KWSP 1991 menetapkan bahawa keahlian Lembaga tidak boleh melebihi 20 orang ahli, termasuk Pengerusi dan KPE.
Pada tahun 2020, terdapat 20 ahli Lembaga yang mewakili pelbagai pihak berkepentingan iaitu: (a) Pengerusi; (b) Lima ahli mewakili Kerajaan termasuk wakil daripada Kementerian Kewangan yang juga dilantik sebagai Timbalan Pengerusi; (c) Empat ahli mewakili Majikan; (d) Empat ahli mewakili Pekerja; (e) (f) Lima ahli Profesional dari pelbagai latar belakang; dan KPE sebagai ahli ex-officio.
Panel Pelaburan yang diketuai oleh Pengerusi KWSP terdiri daripada tujuh anggota: (a) Pengerusi; (b) Seorang ahli mewakili Kementerian Kewangan yang juga turut dilantik sebagai Timbalan Pengerusi; (c) Empat ahli Profesional; dan (d) KPE sebagai ahli ex-officio.

Ahli Lembaga KWSP dan Panel Pelaburan terdiri daripada individu yang berpencapaian tinggi, kemahiran dan kompetensi yang pelbagai serta pengalaman yang luas.
TUGAS DAN TANGGUNGJAWAB LEMBAGA DAN PANEL PELABURAN Lembaga memikul beberapa tanggungjawab tertentu seperti menyelia pelaksanaan dasar-dasar berkaitan dengan operasi KWSP, mengenal pasti bidang berisiko dan mengambil langkah-langkah yang bersesuaian untuk mengurus risiko ini, serta mengkaji kecukupan, dan integriti sistem kawalan dalaman.
Lembaga juga bergantung kepada nilai integriti dan ketekunan wajar pengurusan kanan, juruaudit luar dan penasihat untuk menyelia prestasi keseluruhan, inisiatif utama operasi, pelan kewangan dan bajet tahunan, ulasan prestasi kewangan, pengurusan risiko dan amalan tadbir urus korporat.

Akta KWSP 1991 memperuntukkan penubuhan Panel Pelaburan untuk menyediakan hala tuju strategik berkaitan pelaburan.
Panel Pelaburan menentukan serta meluluskan aktiviti pelaburan sejajar dengan garis panduan, polisi risiko dan alokasi aset.

Pengerusi dan KPE Peranan dan tanggungjawab Pengerusi dan KPE diasingkan selaras dengan amalan terbaik dan untuk memastikan keseimbangan kuasa, penyeliaan pengurusan, serta peningkatan kebertanggungjawaban dan kebebasan.

Pengerusi mengetuai dan memastikan perbincangan yang efektif dan komprehensif mengenai perkara-perkara yang dibawa ke Lembaga dan Panel Pelaburan.
Hal ini termasuk isu-isu strategik serta perancangan pelaburan.

Pengerusi juga berperanan memantau keputusan Lembaga dan Panel Pelaburan agar diterjemahkan dalam tindakan eksekutif.

Peranan utama KPE adalah untuk menguruskan operasi dan pelaburan KWSP secara berkesan, sejajar dengan strategi dan polisi serta menyediakan pengawasan, bimbingan, nasihat dan kepimpinan kepada pengurusan kanan.
Penilaian Keberkesanan Lembaga dan Panel Pelaburan (BEE/IPEE) KWSP melaksanakan Penilaian Keberkesanan Lembaga dan Panel Pelaburan (BEE/IPEE) untuk menilai prestasi Lembaga, Panel Pelaburan, Jawatankuasa Audit Lembaga, Jawatankuasa Pengurusan Risiko Lembaga, Jawatankuasa Strategi KWSP, Lembaga Perolehan dan Jawatankuasa Risiko Panel Pelaburan termasuk ke atas Pengerusi dan KPE.

Penilaian ini adalah tambahan kepada penilaian ahli Lembaga secara individu dan penilaian oleh rakan kumpulan.
Penilaian ini dijalankan sekali setiap dua tahun oleh badan profesional yang bebas.

Kepelbagaian Lembaga dan Panel Pelaburan Selaras dengan amalan tadbir urus yang baik, KWSP bertekad dalam memastikan kepelbagaian dalam Lembaga dan Panel Pelaburan agar berfungsi dengan cekap.

Lembaga dan Panel Pelaburan berusaha untuk membawa bersama-sama pelbagai pengalaman, kemahiran, pengetahuan, latar belakang industri, etnik dan jantina untuk mencapai objektif pelaburan dan prestasi tadbir urus.
38 TADBIR URUSLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20206 PERNYATAAN TADBIR URUS KORPORAT Kehadiran Lembaga dan Panel Pelaburan Sebanyak 11 mesyuarat Lembaga dan 26 mesyuarat Panel Pelaburan telah diadakan pada tahun 2020.

Butiran kehadiran ahli di mesyuarat ini adalah seperti berikut.
Tan Sri Samsudin Osman (Tamat perkhidmatan pada 15 Mac 2020) Tan Sri Ahmad Badri Mohd Zahir (Dilantik berkuat kuasa pada 1 Mei 2020) Zakiah Jaafar (Timbalan Pengerusi) (Dilantik berkuat kuasa pada 1 Februari 2020) Datin Setia Nik Roslini Raja Ismail (Ahli Silih Ganti) (Dilantik berkuat kuasa pada 1 April 2020) Tan Sri Mohd Khairul Adib Abdul Rahman (Dilantik berkuat kuasa pada 2 Januari 2020) Datuk Seri Haji Suhaime Mahbar (Ahli Silih Ganti) (Dilantik berkuat kuasa pada 1 April 2020) Dato’ Amir Omar (Tamat perkhidmatan pada 1 September 2020) Betty Hassan (Ahli Silih Ganti) (Dilantik berkuat kuasa pada 1 April 2020 dan tamat perkhidmatan pada 1 September 2020) Dato’ Jamil Rakon (Dilantik berkuat kuasa pada 1 September 2020) Datuk Amar Jaul Samion Dato’ Sri Haji Mohamad Abu Bakar Marzuki (Ahli Silih Ganti) Datuk Seri Panglima Sr. Haji Safar Untong (Dilantik berkuat kuasa pada 1 April 2020) Datuk (Datu) Rosmadi Datu Sulai (Ahli Silih Ganti) (Dilantik berkuat kuasa pada 1 April 2020) Tan Sri Azman Shah Haron (Tamat perkhidmatan pada 15 Mac 2020) Dato’ Dr. Syed Hussain Syed Husman (Dilantik berkuat kuasa pada 1 November 2020) Datuk Mohd Hasnol Ayub Datuk Dr. Ting Ding Ing (Philip) Tan Sri Dr. Lim Wee Chai (Tamat perkhidmatan pada 31 Disember 2020) Dato’ Abdul Halim Mansor Tuan Haji Adnan Mat Hadiah Leen Catherine Jikunan Datuk Thomas George A/L M.S George Khalid Haji Sufat Zainal Abidin Mohd Kassim Dato’ Mohammed Azlan Hashim (Dilantik berkuat kuasa pada 1 September 2020) Datuk Ruben Emir Gnanalingam Abdullah
 (Dilantik berkuat kuasa pada 1 September 2020) Alizakri Alias (Tamat perkhidmatan pada 28 Februari 2021) a s a u k n a t a w a J a g a b m e L t i d u A - - a g a b m e L 3/3 7/7 10/11 3/9 9/11 6/8 3/3 8/11 5/8 3/3 3/3 9/11 - - - - - - - - 11/11 9/9 9/11 11/11 11/11 11/11 11/11 11/11 11/11 11/11 3/3 3/3 11/11 - - - 9/9 - - 9/9 8/9 - - - a
, n a t a w a j r e P & - - - - - - - 2/4 - 1/1 1/1 - - - - - - 5/5 5/5 - - - - - 4/4 4/5 - - - - - - - 5/5 - - - 5/5 - - - 5/5 - - - - - - - 2/4 - - - 1/1 1/2 2/3 6/6 - 6/6 - 6/6 - 6/6 - 6/6 - - - - - 2/2 - - - - - - - 1/1 1/1 - 2/2 1/2 - - 2/2 - 2/2 - 2/2 - - - 2/2 - - - - 1/1 - 1/1 - - - 2/2 - - - 2/2 - - - 1/1 - 1/1 - - - - - - 1/1 - - 1/1 - - 1/1 1/1 - - - - - 5/5 5/5 6/6 2/2 a g a b m e L n a h e o r e P l - - - - - - - - - - - 7/7 - - 7/7 - 7/7 7/7 - - - - 7/7 39 TADBIR URUSWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20206 PERNYATAAN TADBIR URUS KORPORAT Tan Sri Samsudin Osman (Pengerusi) (Tamat perkhidmatan pada 1 Mei 2020) Tan Sri Ahmad Badri Mohd Zahir Dato’ Mohammed Azlan Hashim (Dilantik berkuat kuasa pada 1 September 2020) Adnan Zaylani Mohamad Zahid (Tamat perkhidmatan pada 15 Mac 2020) Dr. Sivabalasingam Veerasingam (Dilantik berkuat kuasa pada 1 Mei 2020) David Lau Nai Pek (Tamat perkhidmatan pada 1 November 2020) Rossana Annizah Ahmad Rashid Dato’ Md Agil Mohd Natt Dato’ Wan Kamaruzaman Wan Ahmad (Dilantik berkuat kuasa pada 1 November 2020) Tan Sri Dato’ Sri Norza Zakaria (Dilantik berkuat kuasa pada 1 November 2020 & Tamat perkhidmatan pada 3 Disember 2020) Alizakri Alias (Tamat perkhidmatan pada 28 Februari 2021) IMBUHAN AHLI LEMBAGA DAN PANEL PELABURAN Panel Pelaburan Jawatankuasa Risiko Panel
 Pelaburan Kehadiran Kehadiran 8/8 14/16 10/10 2/5 13/16 20/21 26/26 26/26 5/5 1/2 25/26 - - - - - 4/4 5/5 5/5 1/1 - 5/5 Ahli Lembaga dan Panel Pelaburan dibayar Elaun Tetap Bulanan (ETB) dan Elaun Kehadiran Mesyuarat bagi setiap mesyuarat yang dihadiri.
Butiran imbuhan bagi Lembaga bagi tahun 2020 adalah seperti berikut: Elaun Tetap Bulanan dan Elaun Kehadiran Ahli Lembaga dan Panel Pelaburan Jenis Elaun Lembaga (RM) Panel Pelaburan (RM) Lembaga/ Panel Pelaburan/ Jawatankuasa Audit Lembaga/ Jawatankuasa Pengurusan Risiko/ Jawatankuasa Risiko Panel Pelaburan/ Jawatankuasa Rayuan Tatatertib Lembaga (RM) Jawatankuasa Lembaga Lain (RM) Elaun Tetap Bulanan 5,000 5,000 Pengerusi Mesyuarat Kehadiran Mesyuarat termasuk Ahli Silih Ganti - - - - - 2,000 1,500 - 1,500 1,300 Pada tahun 2020, jumlah bayaran Elaun Tetap Bulanan dan Elaun Kehadiran Mesyuarat Lembaga dan Panel Pelaburan adalah sebanyak RM2,108,063.87.
Emolumen Pengurusan Kanan Jawatan Ketua Pegawai Eksekutif dan Timbalan-Timbalan Ketua Pegawai Eksekutif KUALITI DAN PENYAMPAIAN MAKLUMAT KEPADA LEMBAGA DAN PANEL PELABURAN Emolumen (RM) 9,027,542.51 Untuk membantu ahli Lembaga dan ahli Panel Pelaburan mengikuti perkembangan terkini prestasi operasi dan kewangan KWSP, isu-isu utama, cabaran, dan peluang, Pengurusan KWSP telah mengeluarkan laporan operasi dan pelaburan serta penyata kewangan kepada Lembaga dan Panel Pelaburan secara berterusan dan menepati masa.
40 TADBIR URUSLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20206 PERNYATAAN TADBIR URUS KORPORAT JAWATANKUASA LEMBAGA DAN PANEL PELABURAN Lembaga dan Panel Pelaburan telah menubuhkan beberapa Jawatankuasa Lembaga dan Panel Pelaburan untuk mengawal selia perkara-perkara spesifik berkaitan dengan operasi organisasi.

Setiap jawatankuasa melaksanakan tanggungjawab mengikut terma rujukan yang telah ditetapkan.
Jawatankuasa Komposisi Fungsi Utama Jawatankuasa Audit Lima orang ahli termasuk Pengerusi • Membantu Lembaga dalam menilai keberkesanan kawalan dalaman, pengurusan risiko (kecuali dalam aktiviti membuat keputusan pelaburan) dan proses tadbir urus KWSP.

• Mengawasi proses pelaporan kewangan dan kualiti pelaporan penyata kewangan tahunan dan suku tahunan KWSP.

• Mempertimbangkan kesesuaian polisi perakaunan KWSP dan perubahan- • perubahan kepada polisi ini.
Sebanyak sembilan mesyuarat telah diadakan pada tahun 2020 bagi membincangkan laporan juruaudit dalaman dan juruaudit luar, serta mengawasi perkara-perkara berkaitan fungsi audit dalam dan pelan audit untuk tahun semasa.

• Mempunyai hubungan profesional dan rasmi dengan juruaudit luar dan telah mengadakan satu mesyuarat bersama juruaudit luar pada tahun 2020 tanpa kehadiran pihak Pengurusan.
• • Bertanggungjawab membantu Lembaga dalam mengawasi semua aktiviti pengurusan risiko operasi, kecuali aktiviti dalam membuat keputusan pelaburan.

Sebanyak lima mesyuarat telah diadakan pada tahun 2020.

• Mengawasi risiko pelaburan termasuk mencadangkan tahap risiko pelaburan, meluluskan polisi, had serta metodologi pengukuran risiko pelaburan serta menyediakan hala tuju berhubung dengan amalan pengurusan risiko dalam fungsi pelaburan.

Sebanyak lima mesyuarat telah diadakan dalam tahun 2020.
• • Bertanggungjawab untuk meluluskan belanjawan tambahan tidak melebihi 5% daripada jumlah belanjawan tahunan yang diluluskan oleh Lembaga.

• Membantu Lembaga dalam meluluskan perkara-perkara yang berkaitan dengan kesan kewangan seperti hapus kira kerugian (selain yang berkaitan dengan pelaburan).

Sebanyak lima mesyuarat telah diadakan pada tahun 2020.
• Jawatankuasa Pengurusan Risiko Lembaga Jawatankuasa Risiko Panel Pelaburan Lima orang termasuk Pengerusi Empat orang termasuk Pengerusi Jawatankuasa Kewangan dan Pembangunan Enam orang ahli termasuk Pengerusi Jawatankuasa Strategi KWSP Lapan orang ahli termasuk Pengerusi • Mengkaji secara terperinci cadangan pindaan dan perubahan dasar yang berkaitan dengan Skim KWSP.
• Memperakukan apa-apa cadangan dan perubahan dasar untuk kelulusan Jawatankuasa Perjawatan, Pelantikan dan Perkhidmatan Tujuh orang ahli termasuk Pengerusi Jawatankuasa Tatatertib Lembaga Lima orang ahli termasuk Pengerusi Jawatankuasa Rayuan Tatatertib Lembaga Lembaga Perolehan Tujuh orang ahli termasuk Pengerusi Lima orang ahli termasuk Pengerusi Lembaga.

• Memantau prestasi organisasi dan pencapaian inisiatif-inisiatif strategik.

• Sebanyak enam mesyuarat telah diadakan dalam tahun 2020.
• • • • • • • • Bertanggungjawab untuk membantu Lembaga dalam mempertimbangkan dan meluluskan hal-hal berkaitan perjawatan termasuk terma-terma dan syarat-syarat perkhidmatan.

Sebanyak dua mesyuarat telah diadakan dalam tahun 2020.

Bertanggungjawab terhadap apa-apa prosiding tatatertib dan mengenakan apa-apa bentuk hukuman kepada anggota KWSP sebagaimana yang diperuntukkan di bawah Kaedah-kaedah dan Peraturan KWSP (Kelakuan dan Tatatertib) 1993.

Sebanyak dua mesyuarat telah diadakan dalam tahun 2020.
Bertanggungjawab untuk mempertimbangkan apa-apa rayuan oleh anggota terhadap keputusan yang dibuat oleh Jawatankuasa Tatatertib.

Sebanyak satu mesyuarat telah diadakan pada tahun 2020.

Bertanggungjawab bagi perkara-perkara yang berkaitan dengan perolehan kerja, perkhidmatan dan bekalan barangan melainkan pelantikan perkhidmatan perunding berkaitan pelaburan.

Sebanyak tujuh mesyuarat telah diadakan pada tahun 2020.
41 TADBIR URUSWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20206 PERNYATAAN TADBIR URUS KORPORAT JAWATANKUASA PENGURUSAN Selain daripada jawatankuasa utama Lembaga dan Panel Pelaburan, jawatankuasa pengurusan yang lain telah ditubuhkan dan melaporkan terus kepada KPE atau pengurusan kanan yang berkaitan.
Jawatankuasa Pengurusan Fungsi Utama Jawatankuasa Pengurusan Pelaburan Jawatankuasa Perolehan Pengurusan (Strategik) Jawatankuasa Perolehan Pengurusan (Non-Strategik) • Mencadangkan aktiviti pelaburan sejajar dengan garis panduan, polisi risiko kawalan dan alokasi aset kepada Panel Pelaburan.

Terdiri daripada 12 orang ahli termasuk KPE (atau Timbalan KPE semasa ketiadaan KPE) sebagai Pengerusi Mesyuarat.

Sebanyak 52 mesyuarat diadakan pada tahun 2020.


Bertanggungjawab bagi perkara-perkara berkaitan dengan perolehan kerja, perkhidmatan dan bekalan yang melibatkan perolehan kompleks dan membawa manfaat jangka panjang.

Terdiri daripada pengurusan kanan termasuk KPE sebagai pengerusi mesyuarat.

Sebanyak 10 mesyuarat telah diadakan dalam tahun 2020.

Bertanggungjawab bagi perkara-perkara berkaitan dengan perolehan kerja, perkhidmatan dan bekalan barangan yang berkaitan dengan urusan harian dan operasi.
Terdiri daripada pengurusan kanan termasuk Ketua Pegawai Kewangan sebagai Pengerusi mesyuarat.

Sebanyak 7 mesyuarat telah diadakan dalam tahun 2020.

• • • • • • • • KEBERTANGGUNGJAWABAN DAN AUDIT KOMUNIKASI DENGAN PIHAK BERKEPENTINGAN Pelaporan Kewangan Lembaga berhasrat untuk menyediakan penilaian yang jelas, seimbang dan komprehensif terhadap prestasi kewangan dan prospek KWSP melalui penyata kewangan tahunan.
Hal ini adalah tambahan kepada pembekalan penyataan yang telus dan terkini mengenai prestasi kewangan dan prospek melalui pengumuman keputusan suku tahunan kepada pihak yang berkepentingan.

Sila rujuk halaman 133 dalam Laporan Tahunan ini.

Pengurusan Risiko dan Kawalan Dalaman KWSP percaya bahawa komunikasi dengan pihak berkepentingan membentuk satu bahagian penting dalam rangka kerja tadbir urus korporat dan mengakui keperluan untuk berurusan secara telus.
KWSP menerbitkan laporan suku tahunan mengenai aktiviti pelaburan yang terdiri daripada maklumat alokasi aset, hasil pendapatan daripada setiap kelas aset, dan jumlah saiz dana.

Dokumen ini juga melaporkan 30 syarikat teratas pelaburan ekuiti pada setiap suku tahun untuk memastikan ketelusan dan memberikan pihak berkepentingan maklumat mengenai pegangan KWSP dalam syarikat tersenarai awam di Malaysia.
Lembaga dan pengurusan komited kepada sistem kawalan dalaman, polisi dan prosedur yang teguh untuk memastikan kepentingan pihak yang berkepentingan dan aset KWSP dilindungi.

Sila rujuk halaman 59 dalam Laporan Tahunan ini untuk mendapatkan Pernyataan Pengurusan Risiko dan Kawalan Dalaman.

KWSP akan terus mengadakan dialog dengan syarikat- syarikat pelaburan.

Pada tahun 2020, Pengurusan telah melawat sebanyak 2 syarikat dalam negara.
KWSP juga telah menghadiri dan mengundi secara aktif dalam 99 mesyuarat agung tahunan dan 16 mesyuarat agung luar biasa syarikat yang mana KWSP melabur.

Tanggungjawab Korporat KWSP percaya bahawa perlu ada keseimbangan antara penciptaan nilai dan tanggungjawab korporat.

Selaras dengan KWSP yang kini memainkan peranan yang lebih aktif dalam mengawal selia pelaburannya, KWSP telah melantik wakil-wakilnya dalam lembaga pengarah syarikat tersenarai dan tidak tersenarai.
Setakat 31 Disember 2020, KWSP mempunyai wakilnya dalam 15 syarikat tersenarai dan 31 syarikat tidak tersenarai.

42 TADBIR URUSLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20206 PERNYATAAN TADBIR URUS SYARIAH BAGI SIMPANAN SHARIAH Simpanan Shariah merupakan satu pilihan simpanan bagi ahli yang diuruskan dan dilaburkan oleh KWSP mengikut prinsip syariah.
Sebuah rangka kerja tadbir urus syariah telah diwujudkan bagi memastikan setiap aspek operasi dan pelaburan Simpanan Shariah diuruskan mengikut syariah sebagaimana yang dikehendaki di bawah seksyen 43A Akta KWSP 1991.
STRUKTUR TADBIR URUS SYARIAH Struktur tadbir urus syariah di bawah rangka kerja ini adalah seperti berikut: LEMBAGA PANEL PELABURAN JAWATANKUASA AUDIT LEMBAGA JAWATANKUASA RISIKO LEMBAGA JAWATANKUASA PENASIHAT SHARIAH Jabatan Audit Dalam PENGURUSAN Jabatan Operasi Pelaburan Seksyen Perkhidmatan Syariah Seksyen Pematuhan Syariah Audit Syariah Pengurusan Risiko Syariah Penyelidikan dan Penasihatan Syariah Pemantauan dan Semakan Syariah Komponen Fungsi Berkaitan Simpanan Shariah Lembaga • Menubuhkan Jawatankuasa Penasihat Shariah (JKPS) yang mempunyai kuasa untuk menentukan perkara berkaitan syariah, bertujuan menasihati Lembaga dan Panel Pelaburan dalam memastikan pengurusan Simpanan Shariah mematuhi prinsip syariah.
• Merujuk kepada JKPS mengenai apa-apa perkara berkenaan dengan syariah dan yang menghendaki penentuan prinsip syariah.

Lembaga adalah terikat kepada nasihat yang diberikan oleh JKPS.

• Mewujudkan rangka kerja patuh syariah.

Panel Pelaburan • Merujuk kepada JKPS mengenai apa-apa perkara berkenaan dengan pelaburan yang melibatkan syariah dan yang menghendaki penentuan prinsip syariah.

Panel Pelaburan adalah terikat kepada nasihat yang diberikan oleh JKPS.
43 TADBIR URUSWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20206 PERNYATAAN TADBIR URUS SYARIAH BAGI SIMPANAN SHARIAH Komponen Fungsi Berkaitan Simpanan Shariah Jawatankuasa Penasihat Shariah • Menentukan pelaksanaan prinsip syariah bagi apa-apa perkara yang berkaitan dengan Simpanan Shariah.

• Menasihati Lembaga dan Panel Pelaburan mengenai apa-apa perkara berkenaan dengan syariah dan tafsiran prinsip syariah yang berkaitan dengan Simpanan Shariah.
• Menentusahkan dan meluluskan laporan pematuhan syariah berhubung dengan pengurusan Simpanan Shariah bagi laporan tahunan KWSP.

Pengurusan • Memastikan operasi dan pelaburan Simpanan Shariah mematuhi prinsip syariah sepenuhnya dengan merujuk kepada JKPS untuk mendapatkan nasihat mengenai perkara yang berkaitan dengan syariah dan melaksanakan setiap ketetapan JKPS.
Rangka kerja patuh syariah • Terdapat empat fungsi yang diwujudkan oleh Lembaga di bawah rangka kerja ini: (a) Penyelidikan dan penasihatan syariah – bertanggungjawab ke atas penyelidikan syariah dan pemberian nasihat syariah.

(b) Pemantauan dan semakan syariah – bertanggungjawab ke atas pemantauan dan semakan pematuhan syariah bagi maksud penilaian berterusan ke atas tahap pematuhan syariah.
(c) Pengurusan risiko syariah – bertanggungjawab ke atas pengurusan risiko ketidakpatuhan syariah bagi maksud mengurangkan kemungkinan berlakunya ketidakpatuhan syariah berdasarkan Rangka Kerja Pengurusan Risiko Operasi KWSP.
(d) Audit syariah – bertanggungjawab ke atas pengauditan syariah termasuk penilaian bebas mengenai kecukupan dan keberkesanan kawalan dalaman, sistem pengurusan risiko, proses tadbir urus dan jaminan objektif ke atas pematuhan polisi dan garis panduan syariah yang diluluskan oleh JKPS.
PELANTIKAN AHLI JKPS Lembaga hendaklah melantik tidak kurang daripada tiga individu sebagai ahli JKPS yang mempunyai kelayakan dalam syariah, atau mempunyai pengetahuan atau pengalaman dalam syariah dan perbankan, kewangan, undang-undang atau bidang lain yang berkaitan.

Lembaga juga menetapkan bahawa ahli JKPS hendaklah mempunyai pengalaman minimum lima tahun berkaitan kewangan Islam dan dua pertiga daripada ahlinya hendaklah mempunyai ijazah dalam syariah termasuk Fiqh al- Muamalat atau Usul al-Fiqh.
Setiap pelantikan adalah untuk tempoh dua tahun dan boleh dilantik semula.

Pada tahun 2020, Lembaga melantik semula lima orang ahli JKPS termasuk Pengerusi JKPS, yang merupakan cendekiawan syariah terkemuka dalam bidang kewangan dan perbankan Islam di luar dan dalam negara.

KEHADIRAN MESYUARAT JKPS Sebanyak 14 mesyuarat JKPS, termasuk tiga mesyuarat khas, telah diadakan pada tahun 2020.
Perincian kehadiran ahli JKPS adalah seperti berikut: Ahli JKPS Prof. Dr. Mohamad Akram Laldin (Pengerusi) Prof. Madya Dr Aznan Hasan (Timbalan Pengerusi) Dr. Zaharuddin Abdul Rahman Prof. Dr. Engku Rabiah Adawiah Engku Ali Prof. Madya Dr. Kamaruzaman Noordin Pengurusan KWSP telah melantik Jabatan Undang-undang sebagai sekretariat JKPS.
Kehadiran Mesyuarat 14/14 14/14 13/14 13/14 14/14 44 TADBIR URUSLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20206 PERNYATAAN TADBIR URUS SYARIAH BAGI SIMPANAN SHARIAH HONORARIUM DAN ELAUN JKPS Ahli JKPS dibayar honorarium dan elaun kehadiran bagi setiap mesyuarat yang dihadiri sepanjang tahun 2020 seperti berikut: (a) Honorarium (sebulan): RM5,000.00.

(b) Kehadiran mesyuarat: RM1,500.00.


AKSES KEPADA MAKLUMAT DAN DOKUMEN Bagi membantu JKPS melaksanakan fungsinya, Pengurusan KWSP telah memberikan JKPS akses kepada semua maklumat dan dokumen yang diperlukan, dan JKPS dikehendaki melindungi kerahsiaan maklumat dan dokumen tersebut.

LIBAT URUS JKPS DENGAN LEMBAGA DAN PANEL PELABURAN JKPS terlibat sama dalam beberapa sesi perbincangan bersama Lembaga dan Panel Pelaburan dalam perkara-perkara yang melibatkan Simpanan Shariah.
LAPORAN JKPS Bagi setiap tahun kewangan, satu Laporan semakan Syariah berhubung dengan pengurusan Simpanan Shariah yang diluluskan oleh JKPS akan dikemukakan di dalam Laporan Tahunan KWSP.

POLISI SYARIAH UNTUK SIMPANAN SHARIAH Rangka kerja tadbir urus syariah diperkukuhkan oleh polisi dan prosedur terperinci untuk memastikan pelaksanaan setiap transaksi mematuhi keperluan syariah.
JKPS telah merumuskan polisi syariah untuk Simpanan Shariah yang berkaitan dengan aspek operasi, pelaburan, kewangan dan pengendalian pendapatan tidak patuh syariah.

Antaranya adalah seperti berikut: 1.
Model Operasi Simpanan Shariah Pendaftaran Ahli LEMBAGA KUMPUL AN WANG SIMPANAN PEKERJA (Satu Entiti, Pindaan Akta KWSP) Status Ahli Pelaburan Pendapatan Dividen Satu Bayaran dan Borang dari Majikan Simpanan Konvensional (SK) Portfolio Konvensional Konvensional Dividen SK % Ahli Memilih Simpanan Shariah Simpanan Shariah (SS) Portfolio Syariah Syariah Dividen SS % Struktur Insan Proses Teknologi Tadbir Urus Sedia Ada Tadbir Urus Syariah Pelaburan Beretika 45 TADBIR URUSWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20206 PERNYATAAN TADBIR URUS SYARIAH BAGI SIMPANAN SHARIAH Simpanan Shariah menggunakan model pengurusan berasaskan portfolio seperti berikut: (a) Simpanan Shariah dan Simpanan Konvensional wujud bersama di bawah satu kumpulan wang yang diuruskan oleh Lembaga.
(b) Ahli yang memilih Simpanan Shariah tertakluk kepada akad Wakalah, yang mana ahli bersetuju melantik Lembaga KWSP sebagai wakil dan pemegang amanah untuk mengurus dan melaburkan kesemua kredit (simpanan) di dalam akaun ahli mengikut prinsip syariah.

(c) Selain tertakluk kepada tadbir urus korporat KWSP, Simpanan Shariah juga tertakluk kepada rangka kerja tadbir urus syariah dan polisi syariah berkaitan operasi dan pelaburan yang ditetapkan oleh JKPS dari semasa ke semasa.
(d) Aset-aset pelaburan KWSP diasingkan kepada dua portfolio, iaitu portfolio syariah dan portfolio konvensional.

Simpanan Shariah hanya melabur dalam portfolio syariah.

(e) Simpanan Shariah memanfaatkan struktur dan tenaga kerja sedia ada dengan penambahbaikan kepada aspek perundangan, proses operasi, dan sistem teknologi maklumat bagi memenuhi keperluan- keperluan syariah seperti yang ditetapkan oleh JKPS.

2.
Pelaburan Patuh Syariah Selain daripada pelaburan beretika yang melarang daripada melabur dalam sektor yang menghasilkan dan mempromosikan alkohol, perjudian, hiburan dewasa, tembakau dan senjata ketenteraan, semua aset pelaburan KWSP juga akan melalui proses saringan syariah berdasarkan kriteria dan garis panduan syariah yang ditetapkan oleh JKPS yang bertujuan menyingkirkan elemen tidak patuh syariah seperti riba (faedah), gharar (ketidakpastian dalam kontrak), maysir (perjudian) dan elemen- elemen terlarang yang lain seperti barangan dan perkhidmatan tidak halal.
Untuk memastikan pematuhan syariah menyeluruh ke atas pelaburan Simpanan Shariah, JKPS telah menetapkan polisi syariah berkaitan pematuhan dan pemantauan pelaburan patuh syariah yang dikemaskini dari semasa ke semasa.

Setakat 31 Disember 2020, sebanyak 40% atau RM401.99 bilion daripada pelaburan KWSP adalah dalam portfolio syariah.

Kesemua aset bagi portfolio syariah adalah pelaburan patuh syariah manakala portfolio konvensional mengandungi kedua- dua aset patuh syariah dan tidak patuh syariah.
Memandangkan jumlah baki simpanan ahli bagi Simpanan Shariah adalah lebih rendah berbanding jumlah aset dalam portfolio syariah, kedua-dua Simpanan Shariah dan Simpanan Konvensional bersama-sama melabur dalam portfolio syariah.

Pendapatan yang terhasil daripada portfolio syariah dialokasikan kepada Simpanan Shariah mengikut bahagiannya dalam portfolio tersebut.

3.
3.

Pengkelasan Semula Pelaburan Patuh Syariah Pelaburan KWSP seperti ekuiti tersenarai dan ekuiti persendirian, hartanah dan infrastruktur adalah tertakluk kepada saringan syariah berkala yang bertujuan untuk menyemak status syariah bagi pelaburan tersebut.
Untuk pelaburan dalam ekuiti tersenarai, saringan syariah akan dijalankan berdasarkan semakan berkala oleh Majlis Penasihat Syariah Suruhanjaya Sekuriti Malaysia (MPS SC) bagi pasaran domestik dan pembekal indeks syariah yang dilanggan oleh KWSP bagi pasaran global.

Saringan syariah terhadap pelaburan dalam ekuiti persendirian, hartanah dan infrastruktur akan dijalankan secara dalaman pada setiap tahun berdasarkan kriteria dan garis panduan saringan syariah yang ditetapkan oleh JKPS.
Mana-mana pelaburan di atas yang gagal melepasi saringan syariah akan dikelaskan semula sebagai pelaburan tidak patuh syariah dan akan dipindahkan ke portfolio konvensional.

Sebaliknya, mana-mana pelaburan dalam portfolio konvensional yang berjaya melepasi saringan syariah akan dikelaskan semula sebagai pelaburan patuh syariah dan akan dipindahkan ke portfolio syariah.
Bagi mandat pelaburan patuh syariah yang diuruskan oleh pengurus dana luar, sebarang instrumen patuh syariah yang dikelaskan semula sebagai tidak patuh syariah akan dilupuskan mengikut garis panduan yang ditetapkan oleh MPS SC.

4.
4.

Pengendalian Pendapatan Tidak Patuh Syariah Pada tahun 2020, sebahagian besar pendapatan tidak patuh syariah diperoleh daripada caj lewat bayar yang dikenakan terhadap kelewatan bayaran caruman oleh majikan; dan keuntungan penjualan saham yang dikelaskan semula daripada patuh 46 TADBIR URUSLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20206 PERNYATAAN TADBIR URUS SYARIAH BAGI SIMPANAN SHARIAH syariah kepada tidak patuh syariah oleh pengurus dana luar mandat syariah ekuiti luar negara.
Caj lewat bayar dan/atau dividen yang dikenakan terhadap majikan dan pihak-pihak lain yang lewat membayar caruman atau apa-apa obligasi kewangan yang perlu dibayar kepada KWSP adalah bertujuan melindungi kepentingan ahli dan sebagai langkah pencegahan.

Bagi Simpanan Shariah, JKPS membenarkan caj tersebut dikenakan sebagai langkah pencegahan dan penalti kepada pihak yang mungkir, sama ada dalam bentuk ta'widh (pampasan) atau gharamah (penalti melebihi kadar ta'widh).
Ta'widh yang diluluskan oleh JKPS boleh direkodkan sebagai pendapatan patuh syariah, manakala sebarang amaun melebihi kadar ta’widh adalah pendapatan tidak patuh syariah.

Sebarang transaksi yang disyaki tidak patuh syariah juga dilaporkan kepada JKPS untuk menentukan status syariah transaksi tersebut termasuk apa-apa pendapatan yang diperoleh daripadanya.
JKPS menetapkan bahawa pendapatan tidak patuh syariah hanya boleh digunakan untuk perbelanjaan yang dibenarkan iaitu aktiviti kebajikan seperti bayaran caj berkanun (manfaat kematian, manfaat hilang upaya dan kos invokasi), dan sebarang lebihan pendapatan tidak patuh syariah (jika ada), boleh digunakan untuk perbelanjaan operasi dan perbelanjaan pelaburan tidak langsung.
Bagi tahun kewangan berakhir 31 Disember 2020, jumlah pendapatan tidak patuh syariah adalah sebanyak RM37.13 juta dan digunakan kesemuanya untuk kebajikan ahli melalui bayaran caj berkanun.

Dividen Simpanan Shariah yang diisytiharkan oleh Lembaga bagi tahun kewangan berakhir 31 Disember 2020 adalah sebanyak 4.90%.

PERKARA SYARIAH BERKAITAN AHLI YANG BERAGAMA ISLAM 1.
Zakat Simpanan KWSP JKPS melalui mesyuarat-mesyuarat JKPS telah berbincang dan memberi pandangan berhubung isu- isu berkaitan zakat simpanan KWSP seperti berikut: Tanggungjawab membayar zakat simpanan (a) KWSP adalah terletak pada ahli beragama Islam yang telah memenuhi syarat-syarat wajib zakat.
(b) Simpanan yang telah sempurna milik (milkut taam) iaitu simpanan yang boleh dikeluarkan dan digunakan tanpa sebarang sekatan (haq tasarruf kaamil) adalah tertakluk kepada Zakat Mal Mustafad sekiranya mencapai syarat jumlah minima (nisab) tanpa perlu menunggu tempoh wajib zakat (haul).
(c) Walaupun haul tidak disyaratkan, adalah wajar bagi ahli yang sedang menghadapi kesukaran atau ketidaktentuan dari segi kewangan terutamanya dalam tempoh pandemik COVID-19 untuk menunggu tempoh wajib pembayaran zakat (haul) sebelum membayar zakat sekiranya mencapai nisab.
(d) Simpanan yang dikeluarkan bagi tujuan perbelanjaan hajah asliyah iaitu keperluan asas diri sendiri atau tanggungannya seperti tempat tinggal, makan dan minum, kesihatan, pendidikan dan pengangkutan atau membayar hutang boleh ditolak daripada simpanan yang tertakluk kepada zakat.

(e) Sekiranya ahli ada melakukan beberapa 5.

Dividen Polisi dividen bagi Simpanan Shariah dikemukakan kepada JKPS bagi mendapatkan pandangan dan perakuan syariah.
(f) Dividen tahunan bagi Simpanan Shariah adalah berdasarkan prestasi sebenar pelaburan patuh syariah KWSP di bawah portfolio syariah, iaitu pendapatan nyata pelaburan patuh syariah dan bukan pelaburan setelah mengambil kira perbelanjaan, yang diperuntukkan kepada Simpanan Shariah mengikut bahagiannya dalam portfolio syariah.
pengeluaran dalam tempoh tertentu, jumlah zakat ditentukan dengan mengambil kira semua pengeluaran yang dibuat dalam tempoh setahun, mengikut tempoh wajib pembayaran zakat (haul) ahli.
Sekiranya ahli tidak membuat pengeluaran simpanan yang telah sempurna milik atau hanya membuat pengeluaran sebahagian simpanan sahaja, baki simpanan yang boleh dikeluarkan adalah tertakluk kepada hukum zakat simpanan dan pengiraan yang ditetapkan oleh pihak berkuasa zakat negeri dengan mengambil kira kesemua simpanan lain ahli yang belum dizakatkan sekiranya mencapai haul dan nisab.
47 TADBIR URUSWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20206 PERNYATAAN TADBIR URUS SYARIAH BAGI SIMPANAN SHARIAH Muzakarah Khas Jawatankuasa Fatwa Majlis Kebangsaan Bagi Hal Ehwal Ugama Islam Malaysia yang telah diadakan pada 18 Ogos 2015 juga telah memutuskan bahawa KWSP tidak diwajibkan untuk melakukan penyucian terhadap dividen simpanan semua ahli KWSP yang bersetuju untuk bertukar ke Simpanan Shariah.
Walau bagaimanapun, ahli beragama Islam yang baru memilih untuk menukar akaun ke Simpanan Shariah selepas tahun 2017 dinasihatkan untuk melakukan penyucian ke atas dividen Simpanan Konvensional berdasarkan keputusan Muzakarah Jawatankuasa Fatwa Majlis Kebangsaan Bagi Hal Ehwal Ugama Islam Malaysia Kali Ke-87 yang bersidang pada 23-25 Jun 2009: “Di dalam Islam, harta-harta yang diperoleh dengan cara yang tidak mematuhi syariah seperti riba, gharar, perjudian, penipuan, rompakan, rampasan, rasuah dan seumpamanya adalah haram dan tidak boleh digunakan untuk manfaat dan kepentingan diri sendiri serta perlu dibersihkan melalui kaedah-kaedah berikut: (a) Diserah kepada Baitulmal untuk maslahah- maslahah umum umat Islam seperti membiayai pembinaan atau penyelenggaraan jambatan, jalan, tandas dan seumpamanya; atau (b) Diserah kepada golongan fakir miskin.” Kadar penyucian dividen Simpanan Konvensional 2020 adalah sebanyak 69% daripada jumlah dividen yang dikreditkan ke akaun ahli.
Jenis-jenis pengeluaran yang tertakluk kepada pembayaran zakat: (a) Pengeluaran Umur 50 Tahun; (b) Pengeluaran Umur 55 Tahun; (c) Pengeluaran Umur 60 Tahun; (d) Pengeluaran Meninggalkan Negara; (e) Pengeluaran Pekerja Berpencen Dan Pengeluaran Pesara Pilihan; Pengeluaran Simpanan Melebihi RM1 Juta; dan (f) (g) Pengeluaran-pengeluaran lain yang tidak dibelanjakan bagi tujuan keperluan asas atau kelangsungan hidup ahli dan tanggungannya.

2.
2.

Penamaan Penamaan ialah satu pengisytiharan secara bertulis yang dibuat oleh ahli dalam Borang KWSP 4 bagi melantik atau menamakan mana-mana individu atau Amanah Raya Berhad sebagai penama.

Bagi ahli yang beragama Islam, penama hanya bertindak sebagai wasi (pentadbir) yang bertanggungjawab untuk mengagihkan simpanan ahli yang telah meninggal dunia kepada waris-waris yang berhak mengikut Undang-Undang Islam.
Muzakarah Jawatankuasa Fatwa Majlis Kebangsaan Bagi Hal Ehwal Ugama Islam Malaysia Kali Ke-49 yang bersidang pada 19 September 2000 telah membincangkan Wang Simpanan KWSP, SOCSO dan seumpamanya bagi ahli beragama Islam yang meninggal dunia.

Muzakarah telah memutuskan bahawa: (a) Wang KWSP dan wang disimpan adalah pusaka yang mesti dibahagikan mengikut hukum faraid.

(b) Penama KWSP adalah wasi atau pentadbir harta.

Penama hendaklah membahagikan wang KWSP (peninggalan si mati) mengikut hukum faraid.

3.
3.

Penyucian Dividen Ahli beragama Islam yang telah memilih Simpanan Shariah dikecualikan daripada keperluan melakukan penyucian terhadap dividen KWSP yang diterima sebelum Simpanan Shariah mula ditawarkan, iaitu dividen bagi tahun kewangan 2016 dan sebelumnya.
Selain itu, sebarang dividen Simpanan Konvensional yang dikreditkan ke akaun ahli selepas memilih Simpanan Shariah (kerana akaun Simpanan Shariah belum berkuat kuasa) juga dikecualikan daripada disucikan kerana ahli tidak mempunyai hak untuk menentukan tarikh kuat kuasa akaun Simpanan Shariah.

48 TADBIR URUSLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20206 LAPORAN JAWATANKUASA PENASIHAT SHARIAH Dengan nama Allah, yang Maha Pemurah, lagi Maha Mengasihani.
Segala puji bagi Allah, selawat dan salam ke atas Nabi Muhammad, ahli keluarga dan para sahabat baginda serta pengikut-pengikut mereka.
Kami, ahli-ahli Jawatankuasa Penasihat Shariah KWSP (JKPS) telah menyemak pelaburan dan operasi KWSP berhubung Simpanan Shariah bagi tahun berakhir 31 Disember 2020 bagi memberikan pandangan sama ada Simpanan Shariah telah mematuhi prinsip syariah dan ketetapan berkenaan perkara berkaitan syariah yang dibuat oleh JKPS dan dengan ini membentangkan laporan JKPS bagi tahun kewangan berakhir 31 Disember 2020: berikutan pandemik COVID-19, JKPS telah melaksanakan tanggungjawabnya selaras dengan prosedur operasi standard (SOP) yang ditetapkan oleh KWSP, termasuk pelaksanaan mesyuarat secara maya.
6.

Bagi tahun kewangan berakhir 31 Disember 2020, sebanyak 14 mesyuarat telah diadakan bagi membincangkan perkara-perkara berikut: (a) Saringan dan isu-isu syariah berhubung 1.

2.

3.

4.
2.

3.

4.

JKPS telah menasihati Lembaga dan Panel Pelaburan berkenaan perkara-perkara syariah yang dikemukakan oleh Pengurusan KWSP melalui keputusan-keputusan syariah yang telah dibuat oleh JKPS berhubung operasi dan pelaburan Simpanan Shariah bagi memastikan pematuhan kepada prinsip- prinsip syariah termasuk ketetapan dan piawaian syariah di dalam dan luar negara yang diiktiraf oleh JKPS.
Pengurusan KWSP dipertanggungjawabkan untuk memastikan Simpanan Shariah diuruskan mengikut prinsip syariah dengan merujuk kepada JKPS bagi mendapatkan nasihat mengenai perkara syariah dan melaksanakan segala ketetapan dan polisi syariah yang ditentukan oleh JKPS.

Pengurusan KWSP juga telah mengadakan sesi libat urus bersama dengan JKPS dalam membuat ketetapan berhubung Polisi Pelaburan Lestari KWSP.
Dalam menasihati KWSP mengenai perkara syariah, JKPS telah menerima semua maklumat dan penjelasan daripada Pengurusan KWSP yang dianggap perlu untuk JKPS membuat keputusan syariah.

7.

JKPS juga disokong oleh fungsi penyelidikan dan penasihatan syariah, serta pemantauan dan semakan syariah, yang menyediakan pengawasan pematuhan syariah harian bagi Simpanan Shariah.
Selain itu, audit dalaman melaksanakan penilaian sistem kawalan dalaman dan pematuhan ke atas semua polisi dan prosedur yang diputuskan oleh JKPS secara berkala.

5.
Sepanjang tempoh Perintah Kawalan Pergerakan (PKP) yang dilaksanakan oleh Kerajaan Malaysia cadangan pelaburan patuh syariah dan pelaburan sedia ada KWSP, termasuk dokumen- dokumen berkaitan; Inisiatif pelaburan patuh syariah, termasuk penetapan garis panduan syariah bagi pelaburan ekuiti persendirian di bawah akaun terurus berasingan patuh syariah; Isu-isu syariah berhubung pengurusan operasi Simpanan Shariah, termasuk pelaksanaan Simpanan Shariah; (b) (c) (d) Kajian-kajian syariah yang dilaksanakan oleh Seksyen Perkhidmatan Syariah; (e) Pengemaskinian rangka kerja tadbir urus syariah dan polisi serta garis panduan pematuhan syariah bagi pelaburan dan operasi Simpanan Shariah, termasuk perkara-perkara syariah yang berkaitan dengan pelaporan kewangan dan polisi dividen; dan Laporan pengkelasan semula pelaburan patuh syariah dan laporan pendapatan tidak patuh syariah.
(f) JKPS juga telah menerima dan membincangkan laporan semakan syariah yang dikemukakan oleh Seksyen Pematuhan Syariah pada setiap suku tahun berdasarkan Pelan Pematuhan Syariah yang telah diluluskan oleh JKPS bagi tahun 2020.
Hal ini dilaksanakan bagi tujuan penilaian berterusan ke atas tahap pematuhan syariah bagi aktiviti berkaitan operasi dan pelaburan yang melibatkan Simpanan Shariah berhubung produk serta kemudahan baru, saringan syariah tahunan ke atas pegangan KWSP dalam pelaburan aset alternatif, pengendalian pendapatan tidak patuh syariah, pelaburan dalam sekuriti hutang persendirian Islamik serta pembiayaan patuh Syariah.

49 TADBIR URUSWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20206 LAPORAN JAWATANKUASA PENASIHAT SHARIAH 8.
Jabatan Audit Dalam (JAD) telah melaksanakan semakan ke atas aktiviti operasi dan aktiviti pelaburan berkaitan dengan Simpanan Shariah.

Keputusan semakan telah dimaklumkan kepada Pengurusan KWSP dan telah dilaporkan kepada Jawatankuasa Audit Lembaga.

JAD juga melaksanakan pemantauan ke atas penemuan audit yang dikenalpasti untuk memastikan tindakan penyelesaian dilaksanakan dengan efektif.

Penemuan audit dan status tindakan penyelesaian telah dimaklumkan kepada JKPS.

9.
9.

JKPS juga mengambil maklum tentang segala usaha yang wajar telah diambil untuk memperbetulkan jurang yang dikenal pasti dan tindakan pengurusan untuk mencegah jurang yang serupa daripada berulang.

10.
JKPS berpendapat: (a) Kontrak, transaksi, dan urusniaga yang telah dilaksanakan oleh KWSP berhubung Simpanan Shariah bagi tahun kewangan berakhir 31 Disember 2020 yang telah disemak oleh JKPS adalah mematuhi prinsip syariah; (b) Pengagihan keuntungan dan kerugian bagi Simpanan Shariah seperti yang didedahkan di bawah Nota 32.3 kepada Penyata Kewangan adalah menepati asas-asas yang telah diperakukan oleh JKPS mengikut prinsip syariah; dan (c) Semua pendapatan yang diperoleh Simpanan Shariah daripada sumber tidak patuh syariah berjumlah RM37.13 juta seperti yang didedahkan di bawah Nota 32.4 kepada Penyata Kewangan telah digunakan untuk aktiviti kebajikan iaitu bayaran manfaat kematian, manfaat hilang upaya dan kos invokasi.
Kami, ahli-ahli JKPS, dengan ini mengesahkan Simpanan Shariah bagi tahun kewangan berakhir 31 Disember 2020 telah diuruskan selaras dengan prinsip syariah.
Bagi pihak JKPS, Bagi pihak JKPS, : PROF. MADYA DR. AZNAN BIN HASAN NAMA JAWATAN: : TIMBALAN PENGERUSI JKPS TARIKH: : 8 Jun 2021 : PROF. DR. MOHAMAD AKRAM BIN LALDIN NAMA JAWATAN: : PENGERUSI JKPS TARIKH: : 3 Jun 2021 50 TADBIR URUSLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20206 PERNYATAAN PENGURUSAN RISIKO RANGKUMAN Pandemik COVID-19 bukan sahaja telah mengganggu kehidupan seharian kita dengan sangat ketara malahan terhadap ekonomi, baik di peringkat domestik mahupun global.
Pada tahun 2020, KWSP terus berhadapan dengan ketidakstabilan pasaran yang tidak menentu, perubahan landskap politik yang mencabar, kelemahan matawang ringgit dan persekitaran geopolitik yang masih belum reda.

Semua ini membentuk landskap ekonomi, kewangan dan risiko secara berterusan.
Menyedari perkara ini, KWSP sentiasa berusaha untuk mengukuhkan dan mempertingkatkan sistem pengurusan risiko sedia ada agar kekal relevan dan berdaya tahan terhadap perubahan landskap risiko bagi memastikan risiko dalam organisasi diuruskan dengan berkesan.
Sejajar dengan aspirasi KWSP untuk mensasarkan sepenuhnya pematuhan terhadap Alam Sekitar, Sosial dan Tadbir Urus (ESG) menjelang 2030, penilaian bebas risiko yang memfokuskan isu ESG telah mula dilaksanakan ke atas semua cadangan-cadangan pelaburan yang juga merupakan sebahagian daripada inisiatif KWSP untuk menerapkan kemampanan dalam semua keputusan berkaitan pelaburan.
STRUKTUR PENGURUSAN RISIKO Struktur pengurusan risiko KWSP menetapkan tanggungjawab dan akauntabiliti bagi proses pengurusan risiko dengan jelas, serta menggariskan tanggungjawab utama pengurusan risiko dan kawalan.
Lembaga dan Panel Pelaburan KWSP mengawasi keseluruhan pengurusan risiko organisasi dan dibantu oleh Jawatankuasa Pengurusan Risiko Lembaga (BRMC) dan Jawatankuasa Risiko Panel Pelaburan (IPRC) untuk mengawasi semua aktiviti pengurusan risiko operasi, mengesyorkan kecenderungan risiko (risk appetite) dan memperuntukkan bajet risiko.
Lembaga KWSP Panel Pelaburan (IP) Lembaga KWSP bertanggungjawab terhadap keseluruhan pengurusan risiko organisasi, kecuali aktiviti-aktiviti yang berkaitan dengan keputusan pelaburan.

IP bertanggungjawab untuk memantau pengurusan risiko yang berhubung dengan pembuatan keputusan pelaburan KWSP dan menentukan tahap risiko yang sanggup ditanggung oleh KWSP melalui Pernyataan Tahap Risiko, yang menjadi asas bagi peruntukan dana pelaburan.
Jawatankuasa Pengurusan Risiko Lembaga dan Jawatankuasa Risiko Panel Pelaburan JAWATANKUASA PENGURUSAN RISIKO LEMBAGA (BRMC) JAWATANKUASA RISIKO PANEL PELABURAN (IPRC) BRMC bertanggungjawab membantu Lembaga memantau semua aktiviti pengurusan risiko operasi kecuali aktiviti berkaitan pelaburan dan memastikan agar proses pengurusan risiko diwujudkan dan berfungsi dengan berkesan.

IPRC bertanggungjawab membantu IP dalam mengesyorkan kecenderungan risiko dan peruntukan bajet risiko yang sewajarnya.
IPRC dipertanggungjawabkan untuk mengkaji semula dan meluluskan pengiraan risiko, polisi, proses dan had yang bersesuaian bagi memastikan keberkesanan yang seperti berikut berterusan.

Jawatankuasa Khusus JAWATANKUASA PENGURUSAN RISIKO OPERASI (MORC) MORC memantau, melaksanakan dan mengurus risiko operasi KWSP (yang merangkumi strategi, budaya, struktur, sumber manusia dan proses) serta memastikan pelaksanaan rangka kerja pengurusan risiko yang berkesan di seluruh organisasi.
JAWATANKUASA PENGURUSAN RISIKO DIGITAL (DRMC) DRMC bertanggungjawab mewujudkan panduan terhadap perancangan dan operasi dalam bidang teknologi di KWSP dan juga bertanggungjawab mengawalselia perkembangan dan penyelenggaraan Maklumat / Keselamatan Siber dan Program Pengurusan Risiko Teknologi di KWSP.

JAWATANKUASA RISIKO PENGURUSAN (MRC) MRC bertanggungjawab untuk membangunkan dan mengkaji semula polisi risiko dan had yang sewajarnya dalam mengurus risiko pelaburan KWSP.
JAWATANKUASA PENGURUSAN PELABURAN (MIC) MIC bertanggungjawab untuk menilai dan mengesyorkan cadangan pelaburan kepada IP.

MIC juga menilai dan mencadangkan strategi pelaburan dan prestasi pengurus dana luaran.

JABATAN PENGURUSAN RISIKO (JPR) JPR menyokong MIC, MRC, MORC, DRMC, IPRC, BRMC dan IP dalam semua perkara berkaitan pengurusan risiko yang merangkumi risiko pelaburan, risiko operasi, risiko digital, pengukuran risiko, penilaian bebas, pemantauan dan pelaporan pendedahan risiko.
JABATAN PERKHIDMATAN PELABURAN (JPPEL) Jabatan ini bertanggungjawab untuk membuat pemantauan dan pematuhan terhadap polisi dan had semua risiko berkaitan pelaburan.

BAHAGIAN, JABATAN DAN CAWANGAN Semua bahagian, jabatan dan cawangan bertanggungjawab untuk mengurus risiko mengikut fungsi masing-masing secara harian serta memaklumkan risiko utama yang berpotensi kepada MORC melalui JPR.
Antara peranan dan tanggungjawab utama bahagian, jabatan dan cawangan ini adalah seperti berikut: (a) Mengenal pasti, menilai dan mengurus risiko; (b) Mengkaji semula profil risiko mereka secara berterusan bagi memastikan ia relevan dan bersesuaian; (c) Mengemaskini status risiko dan tahap pengurusan risiko dan kawalan; (d) Membangunkan dan melaksanakan pelan tindakan untuk mengurus risiko; dan (e) Mematuhi amalan dan garis panduan pengurusan risiko 51 TADBIR URUSWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20206 PERNYATAAN PENGURUSAN RISIKO TADBIR URUS PENGURUSAN RISIKO KWSP percaya bahawa struktur tadbir urus yang kukuh adalah penting bagi memastikan pelaksanaan pengurusan risiko yang berkesan dan konsisten dalam seluruh organisasi.
Untuk mencapai matlamat tersebut, tadbir urus risiko meletakkan akauntabiliti dan pemilikan antara tiga baris pertahanan iaitu Jabatan, Cawangan dan Pengurusan yang sentiasa terlibat dalam perbincangan yang sihat dan produktif mengenai hal-hal berkaitan risiko utama serta pemprosesannya.

Hal ini akan mewujudkan budaya pengamalan risiko yang mantap.
Bagi meningkatkan lagi pengurusan risiko di KWSP, Jawatankuasa Pengurusan Risiko Digital (DRMC) telah ditubuhkan pada tahun 2020 bertujuan memberikan panduan terhadap perancangan dan operasi dalam bidang teknologi di KWSP.

Ia juga bertanggungjawab untuk mengawalselia perkembangan dan penyelenggaraan Maklumat / Keselamatan Siber serta Program Pengurusan Risiko Teknologi di KWSP.
Seterusnya, bagi menyokong struktur tadbir urus risiko ini, polisi dan prosedur berstruktur juga dibangunkan untuk menangani semua bidang risiko utama di KWSP.

Rajah di bawah menunjukkan Struktur Tadbir Urus Risiko KWSP yang terdiri daripada tiga barisan pertahanan.
Mewujudkan Polisi Risiko Memastikan Pelaksanaan Dan Pematuhan Terhadap Polisi Risiko • Tadbir urus keseluruhan oleh Lembaga KWSP dan Panel Pelaburan • Jawatankuasa Pengurusan Risiko Lembaga dan Jawatankuasa Risiko Panel Pelaburan bertanggungjawab meluluskan polisi-polisi utama • Jawatankuasa- jawatankuasa Pengurusan Kanan menetapkan dan meluluskan polisi/proses • Jabatan Pengurusan Risiko dan Jabatan Perkhidmatan Pelaburan yang bertanggungjawab terhadap pemantauan dan pengurusan risiko harian Lembaga KWSP Panel Pelaburan Jaminan Jawatankuasa Pengurusan Risiko Lembaga Jawatankuasa Risiko Panel Pelaburan Jawatankuasa Audit Lembaga Jawatankuasa Pengurusan Risiko Operasi Jawatankuasa Pengurusan Risiko Digital Jawatankuasa Risiko Pengurusan Jawatankuasa Pengurusan Pelaburan Jabatan Pengurusan Risiko Audit Dalaman Pematuhan Pelaksanaan Polisi Risiko • Akiviti harian pelaburan dan pejabat sokongan • Barisan hadapan dalam menguruskan risiko Bahagian, Jabatan dan Cawangan TAHAP RISIKO (RISK APPETITE) Tahap Risiko KWSP menentukan jumlah, tahap dan jenis risiko yang boleh dan sanggup diterima oleh KWSP demi mencapai objektif strategiknya.
Ia juga menggariskan tahap toleransi risiko dan had untuk mentadbir, mengurus dan mengawal aktiviti pengambilan risiko KWSP.

Penyataan Tahap Risiko dalam pelaburan pula menentukan tahap risiko yang sanggup diterima oleh KWSP dan menjadi asas bagi peruntukan dana pelaburan.

Peruntukan aset kerap dikaji semula bagi memastikan dana yang dilaburkan adalah mengikut kecenderungan risiko KWSP.
52 TADBIR URUSLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20206 PERNYATAAN PENGURUSAN RISIKO PENGURUSAN RISIKO ORGANISASI Pengurusan Risiko Operasi Pengurusan Risiko Operasi (ORM) mendokong dan menambah nilai semua aktiviti KWSP dari segi operasi kerana ORM adalah penting dalam proses membuat keputusan dan budaya korporat di KWSP.
Empat bidang utama pengurusan risiko operasi ialah: (a) Rangka Kerja Pengurusan Risiko Operasi (b) Metodologi dan Proses Pengurusan Risiko Operasi (c) Kad Skor Risiko Korporat (d) Pengurusan Kesinambungan Perniagaan Rangka Kerja Pengurusan Operasi Melalui penerapan Rangka Kerja ORM (MS ISO 31000: 2018 Pengurusan Risiko – Prinsip Dan Garis Panduan) dan proses- proses yang mantap, KWSP mampu mengurus risikonya secara berkesan dengan mengurangkan impak terhadap tahap yang boleh diterima.
Rangka kerja ini sentiasa dikaji semula bagi memastikan ia kekal diguna pakai dan relevan.

Metodologi dan Proses Pengurusan Risiko Operasi Unsur-unsur utama dalam proses pengurusan risiko operasi adalah seperti berikut: (a) Mewujudkan konteks: Menyatakan objektif organisasi dan menentukan parameter luaran dan dalaman yang perlu diambil kira dalam mengurus risiko.

(b) Penaksiran risiko: Merangkumi proses mengenal pasti risiko, analisis risiko dan penilaian risiko.
(c) Menangani risiko: Tindakan yang diperlukan untuk mencegah, mengesan atau mengurus risiko bersih kepada tahap yang boleh diterima.

(d) Komunikasi dan perundingan: Perbincangan dua hala antara Jabatan Pengurusan Risiko dan pihak berkepentingan tentang kewujudan, sifat, bentuk, tahap keseriusan atau kebolehterimaan sesuatu risiko.
(e) Memantau dan mengkaji semula: Kedua-dua aktiviti ini adalah terancang dan merupakan aspek yang penting dalam proses pengurusan risiko yang melibatkan pemeriksaan atau pemantauan yang kerap.

Perekodan dan pelaporan: Butiran dan minit mesyuarat direkodkan dan dilaporkan secara berkala.
(f) i s a t l u s n o K n a D i i s a k n u m o K Skop, Konteks, Kriteria Kenal Pasti Risiko Analisis Risiko Penilaian Risiko Kebolehterimaan Ya Tidak Rawatan Risiko Perekodan Dan Pelaporan l a u m e S n a i j a K n a D n a u a t n a m e P 53 TADBIR URUSWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20206 PERNYATAAN PENGURUSAN RISIKO Kad Skor Risiko Korporat Metodologi Kad Skor Risiko Korporat menerapkan modul Penilaian Kendiri Risiko dan Kawalan (Risk and Control Self- Assessment - RCSA) yang membolehkan anggota KWSP melaksanakan penilaian kendiri dan mengemaskini profil risiko mereka.
Kad Skor Risiko Korporat dilaksanakan melalui sistem ORM yang merekodkan pemilikan dan butiran risiko, kawalan, tindakan pengurusan dan memasukkan perubahan dalam kad skor risiko.

Kesemua unit perniagaan menggunakan kad skor risiko sebagai alat untuk mengurus risiko mereka dengan berkesan.

Akses kepada sistem ORM disediakan di seluruh organisasi agar semua Pemilik Kad Skor Risiko, Pemilik Risiko, Pemilik Kawalan dan Pemilik Tindakan Pengurusan boleh melaksanakan aktiviti RCSA secara berkesan.
Sebanyak 110 kad skor risiko telah disediakan pada tahun 2020, yang merangkumi kad skor risiko bagi Pengurusan Tertinggi – Ketua Pegawai Eksekutif, Ketua Pegawai Operasi, Ketua Pegawai Kewangan, Ketua Pegawai Teknologi Digital, Ketua Pegawai Strategi, Ketua Pegawai Pelaburan diikuti dengan 36 jabatan, 2 seksyen serta 68 cawangan.

Risiko KWSP dipantau dan diurus oleh barisan pengurusan yang memiliki risiko itu.
Pemilik kad skor, risiko, kawalan dan tindakan pengurusan dikehendaki memberi jaminan melalui proses Corporate Digital Assurance (CDA) iaitu pengesahan digital sebanyak empat kali setahun kepada pihak Pengurusan bagi membuktikan bahawa mereka telah mengurus risiko dalam profil mereka dengan sewajarnya.

Penunjuk Risiko Utama (KRI) yang dikenal pasti dalam kad skor risiko, berfungsi memberikan amaran awal bagi membolehkan KWSP memantau risiko yang berpotensi sebelum perkara tersebut menjadi lebih serius.
Jabatan Pengurusan Risiko melaporkan dan membentangkan isu-isu yang berkaitan dengan pengurusan risiko kepada MORC, BRMC, DRMC dan Lembaga KWSP secara berkala sebagai makluman dan/atau untuk membuat keputusan.
Metodologi Kad Skor Risiko Korporat Metodologi yang menggariskan kad skor risiko korporat dinyatakan dalam rajah di bawah: Kad Skor Risiko Skor Risiko Pemilik Risiko Pemilik Risiko Pemilik Risiko Pemilik Kawalan Pemilik MA Risk scorecard Pemilik KRI Nota: MA = Tindakan Pengurusan KRI = Penunjuk Risiko Utama Pemilik diberikan kepada setiap Kad Skor, kawalan dan Tindakan Pengurusan (MA) bagi memastikan akauntabiliti dan pelaksanaan.
Sangat Tinggi 5 Tinggi 4 Sederhana 3 Rendah 2 Sangat Rendah 1 6 5 4 3 2 I N A L A K G N A R A B E K 7 6 5 4 8 7 6 5 Risk scorecard 4 3 9 8 7 6 5 10 9 8 7 6 Tidak Signifikan 1 Kecil 2 Sederhana 3 Besar 4 Amat Signifikan 5 IMPAK Tahap risiko ditentukan selepas penilaian ke atas Penarafan Risiko Kasar, Penarafan Keberkesanan Kawalan dan Penarafan Risiko Bersih.

Skor risiko bagi setiap faktor risiko diperolehi dengan menambah penarafan ke atas kebarangkalian dan impak.
54 TADBIR URUSLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20206 PERNYATAAN PENGURUSAN RISIKO Pengurusan Kesinambungan Perniagaan Pelaksanaan Pengurusan Kesinambungan Perniagaan di KWSP adalah berdasarkan tiga komponen berikut: (a) Kesediaan sumber manusia Ini merujuk kepada pembangunan pengetahuan dan kemahiran dalam pengurusan bencana yang dilaksanakan melalui program kesedaran, bimbingan, tunjuk cara, perkongsian maklumat, latihan simulasi krisis dan i-pembelajaran mengenai BCM.
(b) Kesediaan infrastruktur Sistem dan peralatan di Pusat Pemulihan Bencana diuji untuk memastikan ianya berada dalam keadaan tersedia dan berfungsi dengan baik.

Infrastruktur sedia ada juga dipastikan agar mencukupi bagi memenuhi aktiviti kesinambungan perniagaan sekiranya berlaku apa-apa bencana.
(c) Kesediaan pelan Pada tahun 2020, berpunca daripada penularan wabak COVID-19, KWSP mula menggunakan saluran teknologi untuk menerapkan komponen BCM bagi memastikan program tersebut berjalan dengan lancar dan mencapai objektifnya.

Peraturan cara kerja baru seperti bekerja dari rumah, operasi pasukan secara penggiliran, mesyuarat dan latihan secara maya diperkenalkan sebagai norma baharu di KWSP.

Norma baharu ini telah menjadi keutamaan KWSP di samping pematuhan terhadap garis panduan COVID-19.
Semua anggota KWSP berjaya menyesuaikan diri dengan norma baharu ini kerana ketersediaan dari segi tenaga kerja (sumber manusia), rancangan dan infrastruktur yang siap sedia untuk digerakkan setiap kali berlakunya bencana.

Sepanjang pandemik COVID-19, sebuah Jawatankuasa iaitu EPF COVID-19 Command Centre (CCC) telah ditubuhkan untuk memantau keadaan pandemik di KWSP dengan memastikan komunikasi disalurkan dengan lebih cepat dan baik kepada semua anggota KWSP.
Jawatankuasa Pemantauan Bencana yang sedia ada turut digunakan untuk mengemaskini isu atau status berkaitan COVID-19 dan memberi arahan mengenai sebarang kejadian atau bencana yang akan mempengaruhi KWSP di seluruh negara.

Pada masa yang sama, Pelan Kesinambungan Perniagaan (BCP) sentiasa dikaji semula dan dikemaskini berdasarkan fungsi kerja semasa bagi memastikan kesediaan organisasi pada setiap masa.

Hal ini melibatkan semua bahagian, jabatan dan cawangan di KWSP.
Rangka Kerja Pengurusan Kesinambungan bermatlamat untuk membangunkan Pelan Kesinambungan Perniagaan yang diselaraskan dengan baik dan konsisten bagi membolehkan KWSP bertindak balas secara berkesan terhadap gangguan kepada perniagaan, menyambung operasi utama dalam tempoh masa yang diperlukan, di samping mengurangkan kos kerosakan dan gangguan kepada operasi perniagaan selepas berlakunya bencana.
Rajah di bawah menunjukkan komponen Rangka Kerja Pengurusan Kesinambungan Perniagaan KWSP: PEMACU KEPUTUSAN Strategi dan Pengurusan Teknologi V isi dan Strategi Perni agaan Inisiatif dan Proses Perniagaan Ancaman Penilaian Kerentanan dan Risiko n a n a K n a s u r u g n e P n e m t i m o K REKA BENTUK PELAKSANAAN Polisi Dasar dan Piawaian Pengurusan Krisis dan Pelan Kesinambungan Perniagaan Penilaian Risiko dan Analisis Kesan kepada Perniagaan Pembentukan Strategi Pembangunan Semakan Pelan Pelan Latihan BCP dan Penyelenggaraan Pemantauan dan Penguatkuasaan S t ruk tu r Pengur usa n Ke sina mb un ga n Per nia gaa n P r o g a m r L a t i h a n d a n K e s e d a a n r 55 TADBIR URUSWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20206 PERNYATAAN PENGURUSAN RISIKO PENGURUSAN RISIKO PELABURAN Rangka Kerja Pengurusan Risiko Pelaburan Rangka Kerja Pengurusan Risiko Pelaburan mentadbir proses pelaburan KWSP dan memastikan kawalan dan prosedur pengurusan risiko yang berkesan tersedia untuk membuat keputusan pelaburan.
Rangka Kerja ini menyediakan pendekatan dalam mengurus risiko sedia ada dan yang berpotensi berlaku dalam portfolio pelaburan KWSP serta membolehkan KWSP mengukur, menaksir, memantau dan mengurus risiko portfolionya menggunakan proses yang berstruktur.

Dengan ini, KWSP dapat memastikan pulangan yang optimum daripada aktiviti pelaburannya dengan mengambil kira tahap kecenderungan risiko yang diluluskan oleh Lembaga.
Rangka kerja pengurusan risiko pelaburan diterangkan dalam rajah di bawah: Alokasi Aset Strategik (SAA) Alokasi Aset Taktikal (TAA) Peringkat Pegurusan Portfolio Peringkat Transaksi PROSES-PROSES RISIKO Pengukuran Risiko Polisi dan Had Risiko Penilaian Bebas Risiko Laporan Risiko dan Prestasi PERALATAN DAN SISTEM RISIKO PEMODELAN RISIKO Risiko Pasaran Risiko pasaran merupakan risiko kerugian yang timbul daripada perubahan dalam nilai portfolio dan instrumen kewangan disebabkan oleh pergerakan kadar faedah, tukaran asing dan harga ekuiti.
Objektif pengurusan risiko pasaran adalah untuk memastikan pendedahan risiko yang diambil oleh KWSP berada dalam tahap kecenderungan risikonya.
Ini dilaksanakan menerusi semakan tahunan ke atas pelbagai polisi dan had risiko, laporan berkala untuk memantau risiko pelaburan di peringkat portfolio bagi setiap kelas aset, dan pengesahan bebas yang dilaksanakan ke atas metodologi pendasar risiko: (a) Had penumpuan terhadap nama, pemilikan, negara dan sektor – untuk memastikan kepelbagaian dalam pendedahan risiko.
(b) Nilai berisiko (VaR) – pengukuran statistik untuk menilai kerugian yang berpotensi disebabkan oleh pergerakan kadar (c) (d) (e) (f) faedah dan harga dalam sesuatu tempoh masa berdasarkan tahap keyakinan.

Tempoh masa – mengurus sensitiviti harga bagi pelaburan berpendapatan tetap sebagai kesan daripada pergerakan kadar faedah.

‘Tracking Error’ – merujuk kepada sisihan piawai bagi pulangan lebihan portfolio berbanding penanda aras, dalam mengukur dan menanda aras prestasi portfolio.
‘Backtesting’ – proses pengesahan yang dilaksanakan untuk mengkaji semula ketepatan metodologi risiko yang digunakan untuk mengukur VaR bagi portfolio pendapatan tetap dan ekuiti.

Ujian tekanan – Ujian yang dijalankan untuk mengukur potensi pendedahan risiko pasaran dalam senario ‘what-if’.

Ia menggabungkan faktor–faktor seperti korelasi, kemudahubahan dan pulangan dalam senario yang berbeza.
56 TADBIR URUSLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20206 Risiko Kredit (c) Risiko kredit berlaku apabila suatu pihak gagal memenuhi obligasi pembayaran yang mengakibatkan kerugian.

Pendedahan risiko kredit KWSP berkait secara langsung dengan aktiviti pelaburan dalam instrumen pendapatan tetap, ekuiti persendirian, serta kelas aset hartanah dan infrastruktur.
Pengurusan risiko kredit KWSP melibatkan analisis kredit yang terperinci, metodologi penaksiran risiko yang mendalam dan piawaian penajajaminan yang berhemat.

Di samping itu, KWSP sentiasa mengkaji semula dan mengemas kini metodologi penaksiran risiko dan piawaian penajajaminan kreditnya bagi memastikan keselarasan dengan amalan terbaik industri serta setanding dengan rakan institusi lain.
Pada peringkat portfolio, langkah-langkah pengurusan risiko kredit berikut telah dilaksanakan bagi mengurus pendedahan risiko kredit: (a) Had risiko kredit dan Pencetus Tindakan Pengurusan (Management Action Triggers - MAT) yang merangkumi kriteria kredit umum minimum dipertimbangkan untuk pelaburan termasuk penumpuan nama dan pendedahan rakan niaga.

(b) Sistem portfolio kredit untuk mengukur risiko kredit portfolio yang berkaitan dengan penggunaan Nilai Kredit Berisiko (Credit-Value-at-Risk - CVaR).
(c) Kajian semula secara berkala terhadap templat penarafan kredit dalaman sedia ada bagi pihak penanggung obligasi dalam memastikan kesesuaiannya.

(d) Kesedaran/budaya kredit yang tinggi seluruh kakitangan berkaitan pelaburan di KWSP melalui penglibatan aktif bersama mereka pada semua peringkat.
Pada peringkat urus niaga, pengurusan risiko kredit yang berikut telah diambil kira dalam mengurus risiko kredit: (a) Penilaian bebas risiko dilakukan bagi setiap cadangan pelaburan baharu yang dibentangkan kepada mesyuarat Jawatankuasa Pengurusan Pelaburan dan Panel Pelaburan bagi tujuan membuat keputusan.

(b) Pemantauan rapi terhadap perubahan kepada pelaburan sedia ada melalui penilaian secara ad- hoc serta secara berkala.
PERNYATAAN PENGURUSAN RISIKO Instrumen penarafan kredit untuk mengukur kelayakan kredit atau Kebarangkalian Mungkir (Probability of Default - PD) penanggung obligasi, seperti berikut: (i) Templat Penarafan Korporat yang menyediakan penarafan risiko dalaman bagi penanggung obligasi korporat.

Templat Penarafan Institusi Kewangan yang menyediakan penarafan risiko dalaman bagi penanggung obligasi institusi kewangan.
Instrumen Kredit yang mengukur Kekerapan Jangkaan Mungkir (Expected Default Frequency - EDF) atau Kebarangkalian Mungkir sebagai alat untuk memberi amaran awal bagi pemantauan rapi KWSP terhadap penanggung obligasi berkenaan.

(ii) (iii) Risiko Kecairan Risiko kecairan merujuk kepada ketidakmampuan KWSP untuk memenuhi komitmen dan obligasi kewangannya apabila perlu dijelaskan.
Risiko kecairan KWSP adalah terhad kerana semua caruman yang termaktub dalam Akta KWSP 1991 adalah melalui potongan gaji dan pencarum dibenarkan untuk membuat pengeluaran di bawah skim pra-persaraan dan persaraan.

KWSP mengurus keperluan kecairan melalui: (a) Pemantauan aliran tunai harian dan membuat jangkaan aliran tunai bulanan mengikut tempoh sehingga 12 bulan.
(b) Peruntukan sebanyak tiga peratus daripada nilai aset KWSP untuk instrumen jangka pendek dalam bentuk tunai dan penempatan dalam institusi kewangan bagi memenuhi pengeluaran pencarum dan komitmen kewangan serta obligasi lain.

(c) Kepelbagaian portfolio pelaburan menerusi penetapan had penumpuan nama, sektor dan jenis aset.
Dalam jangka masa sederhana dan lebih panjang, KWSP berupaya memenuhi keperluan kecairannya melalui pegangan pelaburan yang cair seperti ekuiti yang didagangkan secara awam dan sekuriti pendapatan tetap yang sedia untuk dijual.

Profil kematangan aset dan liabiliti KWSP juga dipantau berdasarkan tahap yang telah ditetapkan.
Liabiliti kewangan Kumpulan dan KWSP dikategorikan kepada kumpulan kematangan yang relevan mengikut tempoh berbaki pada tarikh Penyata Kedudukan Kewangan sehingga tarikh matang berkontrak.

57 TADBIR URUSWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20206 PERNYATAAN PENGURUSAN RISIKO PENGURUSAN RISIKO TEKNOLOGI Pengurusan Risiko Teknologi (TRM) memberikan penilaian risiko bebas kepada sistem dan projek teknologi maklumat di seluruh organisasi.
Di samping itu, TRM juga mengesyorkan kawalan keselamatan yang berkesan untuk mengurangkan risiko demi menjamin perlindungan yang lebih baik terhadap misi sistem IT kritikal iaitu menyimpan, memproses dan menghantar maklumat sensitif.

Rangka Kerja Pengurusan Risiko Teknologi Rangka kerja Pengurusan Risiko Teknologi (TRMF) merupakan satu struktur yang formal dan berkesan untuk mengurus risiko berkaitan teknologi dengan lebih baik, meningkatkan ketahanan teknologi dan maklumat, serta tadbir urus keselamatan.
Rangka kerja ini dibangunkan dengan garis panduan yang telah ditambahbaik dan komprehensif untuk mengekalkan daya tahan KWSP terhadap ancaman teknologi dan siber.

Ini akan membolehkan KWSP melakukan penilaian kendiri secara berterusan dalam memastikan risiko teknologi dan siber diuruskan dengan baik.
Rangka kerja pengurusan risiko teknologi diterangkan dalam rajah di bawah: Rangka Kerja Pengurusan Risiko Teknologi (TRMF) Tadbir Urus Operasi Bidang Teknologi Tadbir Urus Pengurusan Teknologi Operasi Pengurusan Risiko Teknologi Audit Teknologi Pengurusan Keselamatan Siber Kesedaran Dalaman Dan Latihan 58 TADBIR URUSLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20206 PERNYATAAN PENGURUSAN RISIKO DAN KAWALAN DALAMAN PENGENALAN Pernyataan ini adalah selaras dengan Statement on Risk Management & Internal Control – Guidelines for Directors of Listed Issuers (Garis Panduan), yang dikeluarkan oleh pasukan petugas khas industri yang diiktiraf oleh Bursa Malaysia dan Suruhanjaya Sekuriti Malaysia.
Garis Panduan ini juga selaras dengan Prinsip B, Kod Tadbir Urus Korporat Malaysia yang dikeluarkan pada April 2017 yang menyatakan bahawa Lembaga perlu mewujudkan rangka kerja pengurusan risiko dan kawalan dalaman yang berkesan.

Untuk tahun 2020, pernyataan ini mengambil kira pandemik COVID-19, yang telah dikenal pasti sebagai satu sumber risiko utama KWSP.
Pada tahun ini, terdapat perubahan pada polisi pengeluaran KWSP dengan pelaksanaan program i-Lestari dan i-Sinar serta Program Bantuan Majikan COVID-19 (e-CAP).

Berdepan dengan cabaran-cabaran akibat pandemik COVID-19, KWSP telah berjaya melaksanakan tindakan yang diperlukan untuk sentiasa kekal berwaspada.

Sebagai contoh, KWSP telah memperkenalkan Janji Temu Online (JTO), satu perkhidmatan yang low-touch, high-distance di musim pandemik ini.
Selain itu, pandemik ini juga telah mengubah kesediaan tenaga kerja untuk disesuaikan dengan cara kerja baru, serta mengubah cara KWSP berkomunikasi dan menyampaikan produk dan perkhidmatan kepada semua pihak berkepentingan.

Penjelasan mengenai langkah- langkah yang telah diambil oleh KWSP bagi menangani cabaran-cabaran yang disebabkan oleh pandemik ini ada diperjelaskan di seksyen Laporan Khas Laporan Tahunan ini.
Kenyataan ini menunjukkan komitmen KWSP yang tinggi dalam mengekalkan tahap keberkesanan pengurusan risiko dan rangka kerja kawalan dalaman semasa menguruskan kesan pandemik di samping perubahan- perubahan lain yang dihadapi KWSP pada tahun ini.

TANGGUNGJAWAB LEMBAGA Lembaga Pengarah memperakui tanggungjawabnya secara keseluruhan dengan memastikan tahap kesesuaian dan keberkesanan pengurusan risiko dan kerangka kawalan dalaman KWSP mampu membolehkan objektif organisasi tercapai.
Rangka kerja ini direka bagi mengenal pasti, menganalisis dan menilai risiko yang signifikan sehingga membantu Lembaga membuat keputusan yang terbaik selaras dengan peranannya untuk mengawalselia risiko bagi memastikan risiko tersebut dapat dikurangkan dengan sebaik mungkin.

Oleh itu, sistem kawalan dalaman disediakan untuk menguruskan dan bukan untuk melenyapkan risiko tersebut.

Dalam kata yang lain, ia dapat memberikan jaminan yang munasabah dan bukan jaminan secara mutlak.
Bagi melaksanakan tanggungjawab pengawasan dengan berkesan, tiga (3) jawatankuasa telah ditubuhkan: (a) Jawatankuasa Audit Lembaga (BAC) dalam proses kawalan dalaman, tadbir urus dan pengurusan risiko kecuali aktiviti dalam membuat keputusan Pelaburan.
(b) Jawatankuasa Pengurusan Risiko Lembaga (BRMC) (c) menyelia aktiviti-aktiviti pengurusan risiko kecuali aktiviti dalam membuat keputusan Pelaburan; dan Jawatankuasa Risiko Panel Pelaburan (IPRC) dalam perkara berkaitan pengurusan risiko pelaburan meliputi tahap risiko, ukuran risiko, polisi dan had kecuali aktiviti melibatkan operasi pelaburan.

Maklumat lanjut mengenai IPRC ada dinyatakan dalam Pernyataan Pengurusan Risiko Pelaburan.
TANGGUNGJAWAB PENGURUSAN Pengurusan bertanggungjawab untuk melaksanakan dasar dan prosedur Lembaga mengenai risiko dan kawalan, yang terdiri daripada: (a) Mengenal pasti risiko yang relevan dalam mencapai objektif dan strategi KWSP; (b) Merekabentuk, melaksana dan memantau rangka kerja pengurusan risiko dan kawalan dalaman selaras dengan visi strategik dan tahap risiko keseluruhan KWSP; dan (c) Mengenal pasti perubahan kepada risiko dan risiko yang bakal muncul, mengambil tindakan apabila diperlukan dan seterusnya memaklumkan kepada Lembaga tepat pada waktunya.
RANGKA KERJA PENGURUSAN RISIKO DAN KAWALAN DALAMAN KWSP mempunyai rangka kerja pengurusan risiko dan kawalan dalaman yang berkesan, sebahagian daripada amalan tadbir urus korporat yang baik.

KWSP menerima pakai Model Tiga Barisan Pertahanan.

Jabatan dan cawangan yang merupakan barisan pertahanan pertama yang bertanggungjawab untuk memastikan persekitaran risiko dan kawalan diwujudkan dan beroperasi dengan berkesan sebagai sebahagian operasi harian.
Barisan pertahanan kedua merupakan Jabatan Pengurusan Risiko yang membangunkan rangka kerja pengurusan risiko, polisi, metodologi, dan cara untuk menguruskan risiko utama di dalam organisasi.

Jabatan Audit Dalam yang merupakan barisan pertahanan ketiga menilai keberkesanan dan kecukupan sistem kawalan dalaman, pengurusan risiko operasi dan proses tadbir urus.
59 TADBIR URUSWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20206 PERNYATAAN PENGURUSAN RISIKO DAN KAWALAN DALAMAN Sistem dan proses utama yang telah diwujudkan oleh Lembaga untuk mengkaji semula kecukupan dan keberkesanan rangka kerja pengurusan risiko dan kawalan dalaman adalah seperti berikut: Jawatankuasa juga mengkaji semula fungsi audit dalam dengan memberi penekanan ke atas kebebasan audit dalam, skop, sumber dan kualiti pengauditan yang telah dilaksanakan.
(a) Rangka Kerja Pengurusan Risiko Operasi Lembaga telah mengguna pakai Rangka Kerja Pengurusan Risiko Operasi (ORM) berasaskan ISO 31000:2018 Risk Management – Guidelines yang menggariskan prinsip, polisi dan proses bagi menguruskan risiko operasi di KWSP.

Pada tahun 2020, KWSP telah mewujudkan Rangka Kerja Pengurusan Risiko Teknologi (TRMF) sebagai langkah penambahbaikan kepada rangka kerja ORM sedia ada.
KWSP telah menetapkan tanggungjawab dan akauntabiliti yang jelas berkenaan proses pengurusan risiko.

Tanggungjawab utama risiko dan kawalan di bawah struktur pengurusan risiko terdiri daripada: Jawatankuasa Pengurusan Risiko Lembaga (i) (BRMC) bagi mengawasi semua aktiviti pengurusan risiko operasi dan memastikan proses pengurusan risiko diwujudkan dan berfungsi dengan berkesan.
Jawatankuasa ini menyemak semula dan mencadangkan strategi pengurusan risiko dan menilai kecukupan rangka kerja pengurusan risiko.

(ii) BRMC dibantu oleh Jawatankuasa Pengurusan Risiko Operasi (MORC) yang mengkaji semula rangka kerja pengurusan risiko dan memastikan keberkesanan pelaksanaannya dalam organisasi.
(b) Rangka Kerja Kawalan Dalaman Sistem dan rangka kerja kawalan dalaman adalah berdasarkan COSO Internal Control Integrated Framework, penanda aras antarabangsa yang diiktiraf dalam pengurusan risiko dan kawalan dalaman, yang menggariskan lima komponen kawalan yang saling berkait rapat - persekitaran kawalan, Penarafan Risiko, Aktiviti Kawalan, Maklumat dan Komunikasi, dan Pemantauan.
Jabatan Audit Dalam menyediakan jaminan yang bebas dan munasabah ke atas kecukupan dan keberkesanan rangka kerja pengurusan risiko dan kawalan dalaman kepada Jawatankuasa Audit Lembaga.

Jawatankuasa Audit Lembaga mengkaji semula isu kawalan dalaman yang dikenalpasti dalam laporan yang disediakan oleh juruaudit dalaman dan luaran.

Aktiviti Jawatankuasa yang terperinci dinyatakan di dalam Laporan Jawatankuasa Audit Lembaga dan Pernyataan Audit Dalaman dalam Laporan Tahunan.
ELEMEN UTAMA KAWALAN DALAMAN (a) Persekitaran Kawalan Persekitaran kawalan menetapkan halatuju organisasi, mempengaruhi tahap kesedaran kawalan di kalangan anggotanya.

Ia merupakan asas kepada semua komponen kawalan dalaman yang lain, menerapkan disiplin serta struktur.

Aktiviti-aktiviti utama termasuk: (i) (ii) Terma Rujukan Terma rujukan mendefinisikan peranan dan tanggungjawab semua Jawatankuasa Lembaga dan Panel Pelaburan dinyatakan dalam Pernyataan Tadbir Urus Korporat.
Struktur Organisasi Struktur organisasi telah mentakrifkan dengan jelas berkenaan akauntabiliti, delegasi tanggungjawab dan tahap autoriti bagi semua aspek bisnes.

Jawatankuasa pengurusan bermesyuarat secara kerap untuk mengenalpasti, berbincang dan menyelesaikan isu operasi, kewangan, pelaburan dan isu utama pengurusan serta melaporkan secara berkala kepada Lembaga, Panel Pelaburan dan Jawatankuasa berkenaan.
(iii) Polisi dan Prosedur Sumber Manusia KWSP mempunyai garis panduan yang teratur mengenai pengambilan dan pemecatan kakitangan, program latihan kakitangan, penilaian prestasi tahunan dan prosedur- prosedur lain yang berkaitan bagi memastikan kakitangan berdaya saing dan dilatih secukupnya untuk menjalankan tanggungjawab mereka.
Pada tahun 2020, disebabkan oleh pandemik COVID-19 ini dan sebagai persiapan untuk menghadapi kemungkinan-kemungkinan lain yang seumpamanya, KWSP telah mempercepatkan pelaksanaan MyFLEX Place dan memperkenalkan Smart Work Arrangement Info Kit.

Langkah-langkah ini membolehkan anggota bekerja dari rumah, di luar pejabat dan mengikut pasukan.
Pelbagai kawalan dan infrastruktur disediakan untuk mengurus dan 60 TADBIR URUSLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20206 PERNYATAAN PENGURUSAN RISIKO DAN KAWALAN DALAMAN memastikan anggota terus diberikan sokongan disamping memastikan kesinambungan, produktiviti dan kelestarian perniagaan.

Kendiri Risiko dan Kawalan (RCSA) secara berterusan dilaksanakan supaya anggota boleh membuat penilaian kendiri dan mengemaskini profil risiko mereka.
(iv) Pembudayaan Integriti Sebagai pemegang amanah yang ditugaskan untuk menguruskan simpanan ahli KWSP, pelbagai program dan inisiatif dilaksanakan untuk memupuk dan mengukuhkan budaya integriti seperti pengisytiharan harta oleh anggota, pengisytiharan konflik kepentingan dalam proses perolehan dan proses pelaburan dan juga polisi tiada hadiah.
Ikrar Integriti Korporat merupakan komitmen KWSP bagi mendukung integriti, yakni penting untuk mewujudkan persekitaran bisnes dan operasi yang telus dan selaras dengan amalan terbaik global bagi tadbir urus.

KWSP telah memperkenalkan Pernyataan Anti- Rasuah yang berpegang teguh kepada prinsip toleransi sifar terhadap rasuah dan perlakuan tidak beretika dalam melaksanakan urusan operasi.
Pada tahun 2020, Jawatankuasa Integriti Pengurusan telah ditubuhkan untuk memberi input kepada Jawatankuasa Pengurusan Risiko Lembaga (BRMC) bagi membolehkan Jabatan Integriti & Tadbir Urus (JITU) melaksanakan fungsi utama integriti (pengurusan aduan, pengesanan dan pengesahan, tabir urus dan komunikasi serta program outreach Integriti) secara bebas dan adil dalam memberikan nasihat kepada Lembaga, Pengurusan dan anggota KWSP.
(v) Kod Etika KWSP Kod Etika KWSP menyediakan panduan kepada anggota dalam menjalankan tugas dan tanggungjawab mereka, selaras dengan Visi, Misi dan Nilai Bersama KWSP.

Kod ini bertujuan untuk menjelaskan tingkah laku beretika mengikut undang-undang, polisi, dan prosedur yang berkuatkuasa.

(b) Penarafan Risiko Penarafan risiko merangkumi proses dinamik dan berterusan bagi mengenal pasti dan menilai risiko yang boleh menghalang pencapaian objektif.
Aktiviti utama adalah termasuk Kadskor Risiko Korporat (CRS).

Metodologi Kadskor Risiko Korporat (CRS) ialah satu pendekatan pengurusan risiko yang terperinci di mana risiko dikenal pasti berdasarkan sumber dalaman dan luaran, dan dianalisis, dinilai, dirawat dan dipantau.

CRS membolehkan Penilaian (c) Aktiviti Kawalan Aktiviti kawalan ialah polisi dan prosedur yang membantu memastikan arahan pengurusan dijalankan dengan berkesan.
Ia membantu memastikan tindakan yang bersesuaian diambil bagi memitigasi risiko yang menghalang pencapaian objektif organisasi.

Aktiviti-aktiviti utama termasuk: (i) Pengurusan Prestasi Perniagaan KWSP menggunakan metodologi Balanced Scorecard bagi menterjemahkan dan melaksanakan strategi selari dengan visi dan misi serta memacu prestasi organisasi.
Prestasi organisasi dinilai melalui beberapa Petunjuk Prestasi Utama dan diintegrasikan dengan pengurusan risiko, bagi memastikan Pengurusan dapat mengenalpasti dan mengawalselia risiko utama yang memberi kesan kepada objektif organisasi.

(ii) Pelan Boleh Ubah 3 Tahun Kesan daripada pandemik COVID-19, Pelan Boleh Ubah 3 Tahun telah dikaji semula pada tahun 2020, yang menyebabkan berlakunya perubahan pada keseluruhan strategi KWSP.
Kami telah membuat penilaian semula terhadap kad skor kami bagi membolehkan kami membuat perubahan yang penting disebabkan oleh pandemik ini.

Penilaian ini telah menyebabkan strategi dan inisiatif yang berkaitan dengan digital telah dipercepatkan sementara projek-projek sedia ada disemak semula keutamaannya untuk disesuaikan dengan norma baru.

Pelan ini dikaji semula oleh Jawatankuasa Pengurusan dan diluluskan oleh Lembaga.
(iii) Risk Culture Index Risk Culture Index telah diwujudkan sebagai Petunjuk Prestasi Utama dalam jabatan dan cawangan dengan objektif untuk meningkatkan amalan pengurusan risiko di KWSP.
(iv) Polisi dan Prosedur Polisi dan prosedur bagi memastikan pematuhan terhadap kawalan dalaman (seperti pengasingan tugas, proses penyemakan dan pengesahan secara bebas serta kawalan capaian sistem) yang dinyatakan dalam manual operasi, garis panduan dan pekeliling 61 TADBIR URUSWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20206 PERNYATAAN PENGURUSAN RISIKO DAN KAWALAN DALAMAN yang dikeluarkan oleh KWSP dikemaskini secara berkala dan diperakui ketua-ketua Jabatan, Ketua Bahagian dan Ketua Pengawai Eksekutif.
Terdapat garis panduan polisi dan had penurunan kuasa yang dikenakan terhadap Pengurusan berkaitan operasi harian.

(v) Pengurusan Keselamatan Teknologi Maklumat (IT) Pengurusan keselamatan IT di KWSP adalah berdasarkan ISO 27001.

Ia menggariskan kawalan dan prosedur yang sesuai untuk memastikan kerahsiaan, integriti dan maklumat yang lengkap serta sistem aplikasi.
Pada tahun 2020, kewujudan Rangka Kerja Pengurusan Risiko Teknologi (TRMF) telah membolehkan KWSP untuk mengintegrasikan semua risiko teknologi dalam rangka kerja ORM yang sedia ada.

Ini membolehkan kami untuk sentiasa menambahbaik dari segi seni bina dan reka bentuk keselamatan untuk menguatkan kawalan-kawalan keselamatan, memitigasi risiko utama teknologi dan siber.

Satu struktur tadbir urus yang jelas telah diwujudkan untuk mengurus risiko teknologi.
Struktur ini terdiri daripada Jawatankuasa Kerja Risiko Digital (DRWC), Jawatankuasa Pengurusan Risiko Digital (DMRC) dan Jawatankuasa Pengurusan Risiko Lembaga (BRMC).

Semua jawatankuasa ini mempunyai peranan dan tanggungjawab serta Terma Rujukan masing-masing bagi memastikan keputusan- keputusan yang dibuat adalah sejajar dengan tahap risiko KWSP.
(vi) Polisi Chinese Wall Polisi dan prosedur Chinese Wall ini telah diperkenalkan untuk mengawal daripada berlaku sebarang kompromi terhadap prinsip- prinsip integriti, ketelusan dan akauntabiliti dengan mengawal, menyekat dan mengurus aliran maklumat yang boleh mempengaruhi harga sesuatu saham.
(vii) Pengurusan Kesinambungan Perniagaan (BCM) Pelan dan sistem BCM sentiasa dipantau, diuji, dikemaskini dan kemudiannya disampaikan kepada setiap peringkat dalam organisasi untuk memastikan organisasi sentiasa bersedia sekiranya berlaku krisis atau bencana.

Pada tahun 2020, Program BCM KWSP memastikan kami dapat meneruskan sebarang operasi kritikal dalam jangka masa yang ditetapkan dan meminimumkan kos kerosakan dan gangguan akibat pandemik COVID-19.
Penubuhan Pusat Arahan COVID-19 (CCC) untuk menyelaras semua perkara berkaitan pandemik untuk KWSP membuktikan komitmen kami dalam menguruskan BCM dalam sebarang keadaan untuk memastikan perkhidmatan kami kepada pelanggan dapat berfungsi semula dengan cekap apabila berlaku sebarang gangguan, untuk memitigasi risiko reputasi.

Untuk mencapai objektif tersebut, kami memastikan tiga elemen utama; sumber manusia, pelan dan infrastruktur sentiasa bersedia untuk digerakkan semasa sebarang bencana.
Semua inisiatif adalah mematuhi garis panduan Pentadbiran Keselamatan dan Kesihatan Pekerjaan (OSHA) dan dikemas kini dengan sewajarnya untuk mematuhi prosedur operasi standard (SOP) agensi kerajaan berkaitan mengenai langkah pencegahan COVID-19.

(viii) Perlindungan Insurans Perlindungan insurans yang mencukupi bagi aset utama telah sedia ada bagi memastikan aset KWSP dilindungi daripada sebarang kejadian tidak diingini yang boleh menyebabkan kerugian material.
(ix) Rangka Kerja Tadbir Urus Syariah KWSP telah mewujudkan Rangka Kerja Tadbir Urus Syariah untuk memastikan pematuhan yang ketat terhadap keperluan shariah dalam pengurusan Simpanan Shariah.
Rangka kerja tadbir urus ini diwujudkan bagi memastikan Simpanan Shariah KWSP diuruskan mengikut syariah sebagaimana yang dikehendaki di bawah seksyen 43A Akta KWSP 1991 dan Kaedah-Kaedah KWSP (Akaun Simpanan Shariah) 2016, termasuk penubuhan Jawatankuasa Penasihat Shariah (JKPS) bagi menasihati Lembaga dan Panel Pelaburan dalam memastikan pengurusan Simpanan Shariah KWSP mematuhi prinsip syariah.
Rangka Kerja Tadbir Urus Syariah ini merangkumi empat fungsi iaitu penyelidikan dan penasihatan syariah, pengurusan risiko syariah, pemantauan dan semakan syariah, dan audit syariah.

Rangka kerja tersebut menggariskan struktur dan dasar tadbir urus syariah seperti yang dinyatakan dalam Penyataan Tadbir Urus Syariah bagi Simpanan Shariah dalam Laporan Tahunan.
62 TADBIR URUSLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20206 PERNYATAAN PENGURUSAN RISIKO DAN KAWALAN DALAMAN (d) Maklumat dan Komunikasi (ii) Kekerapan Pelaporan Maklumat dan Komunikasi menyokong semua komponen kawalan yang lain dengan langkah berkomunikasi mengenai tanggungjawab kawalan kepada anggota dan menyediakan maklumat dalam kaedah dan tempoh masa yang membolehkan anggota menjalankan tugas mereka.
Aktiviti utama termasuk: (i) Pelan Kawalan Pengurusan Fraud Pelan Kawalan Pengurusan Fraud termasuk Penilaian Risiko Fraud, Polisi Anti Fraud dan Polisi Perlindungan maklumat menggariskan pendekatan KWSP terhadap pencegahan, pengesanan, pelaporan dan pengendalian fraud.

(ii) Komunikasi Pengurusan Risiko Operasi (ORM) Prinsip, rangka kerja dan proses ORM yang digunapakai oleh KWSP telah dimaklumkan kepada semua anggota agar mereka memahami dengan lebih baik mengenai amalan yang sedang digunapakai.
EPF COVID-19 Command Centre (CCC) memainkan peranan penting dalam memastikan maklumat dan pendedahan berkaitan operasi, koordinasi sumber dalaman, serta kesedaran dan pematuhan Prosedur Operasi Standard (SOP) kesihatan dan keselamatan disampaikan pada masa yang ditetapkan.

(e) Pemantauan Pemantauan dan penilaian berterusan berkaitan keberkesanan kawalan dalaman telah diterapkan dalam proses bisnes di pelbagai peringkat dalam organisasi.
Aktiviti-aktiviti utama termasuk: (i) Sistem Pengurusan Risiko Operasi Satu sistem pengurusan risiko operasi bersepadu digunakan untuk memantau dan mengurus pendedahan KWSP kepada risiko.

Risiko utama dikenalpasti dan keberkesanan kawalan dalaman dinilai dan disahkan secara elektronik oleh jabatan dan cawangan masing-masing pada masa yang ditentukan.
Jika risiko yang telah dimitigasi masih tidak berada pada tahap boleh terima, pelan tindakan individu akan dikenalpasti dan pelaksanaannya dipantau untuk mengurangkan jurang tersebut.

Semua risiko berkaitan dengan pandemik COVID-19 yang memberi impak kepada unit perniagaan, jabatan dan cawangan dikesan, direkod, dimitigasi dan dilaporkan dalam sistem ORM dan dikaji secara berkala.
Terdapat proses yang mencukupi untuk membincangkan isu mengenai pengurusan risiko dan kelemahan kawalan dalaman dan ia dilaporkan secara kerap kepada Pengurusan melalui pelbagai jawatankuasa.

Pengurusan menilai dan berkomunikasi dengan pihak yang dipertanggungjawabkan untuk mengambil tindakan pembetulan dalam tempoh yang ditentukan.

(iii) Aktiviti Pemantauan Oleh Audit Dalam Keputusan bagi semua aktiviti pengauditan dilaporkan kepada Jawatankuasa Audit Lembaga dan dikomunikasi kepada pihak Pengurusan.
Jabatan Audit Dalam mempunyai proses susulan bagi memantau dan membantu memastikan semua pemerhatian audit dan penyelesaian yang dipersetujui ditangani dengan segera.

(iv) Standard Pengurusan Sistem Kualiti Semua proses teras KWSP mematuhi piawaian MS ISO 9001: 2015 Quality Management System.

JAMINAN MENGENAI PENGURUSAN RISIKO DAN KAWALAN DALAMAN Lembaga berpandangan bahawa rangka kerja pengurusan risiko dan kawalan dalaman KWSP adalah berkesan dan mencukupi untuk melindungi kepentingan ahli.
Pemeriksaan oleh Lembaga terhadap keberkesanan pengurusan risiko dan sistem kawalan dalaman disokong oleh: (a) Jawatankuasa Pengurusan Risiko Lembaga bermesyuarat sekurang-kurangnya empat kali setahun untuk mengawasi aktiviti pengurusan risiko.

(b) Jawatankuasa Audit Lembaga bermesyuarat sekurang-kurangnya empat kali setahun, mengkaji semula penemuan dan cadangan yang dikenalpasti oleh juruaudit dalaman dan luaran.

(c) Ketua Audit Negara yang mengeluarkan sijil audit tahunan untuk penyata kewangan.
(d) Jaminan pihak pengurusan bahawa rangka kerja pengurusan risiko dan kawalan dalaman KWSP beroperasi dengan mencukupi dan berkesan di dalam semua aspek.

Pernyataan ini disediakan selaras dengan persetujuan ahli Lembaga bertarikh 27 April 2021.
63 TADBIR URUSWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20206 LAPORAN JAWATANKUASA AUDIT LEMBAGA PENGENALAN Jawatankuasa Audit Lembaga komited dalam melaksanakan peranannya untuk memastikan amalan tadbir urus korporat yang tinggi dan fungsi seliaan terhadap proses pelaporan kewangan, pengurusan risiko dan sistem kawalan dalaman KWSP.

KEAHLIAN Jawatankuasa Audit Lembaga, bagi tempoh dari 1 Jun 2019 sehingga 31 Mei 2021, dianggotai oleh ahli-ahli yang berikut: No.

Ahli-Ahli Jawatankuasa Audit Lembaga Wakil i. ii.


iii.

iv.
v. Khalid Haji Sufat Zakiah Jaafar (Dilantik pada 1 Februari 2020) Datin Setia Nik Roslini Raja Ismail (Ahli Silih Ganti) (Dilantik pada 1 April 2020) Datuk Dr. Philip Ting Ding Ing Hadiah Leen Zainal Abidin Mohd Kassim MESYUARAT Pengerusi – Profesional Timbalan Pengerusi – Kerajaan Majikan Pekerja Profesional Untuk tahun kewangan 2020, Jawatankuasa Audit Lembaga telah mengadakan mesyuarat sebanyak 10 kali: lima mesyuarat Khas Jawatankuasa Audit Lembaga, empat mesyuarat Jawatankuasa Audit Lembaga dan satu mesyuarat Jawatankuasa Audit Lembaga bersama dengan Jabatan Audit Negara.
Perbincangan mesyuarat Jawatankuasa Audit Lembaga adalah menyeluruh dan terperinci.

Minit mesyuarat Jawatankuasa Audit Lembaga diedarkan kepada ahli Jawatankuasa Audit Lembaga selepas setiap mesyuarat.

Lembaga akan dimaklumkan mengenai perkara penting yang dibincangkan semasa mesyuarat Jawatankuasa Audit Lembaga.

Maklumat lanjut berkaitan kehadiran Jawatankuasa Audit Lembaga adalah seperti yang terkandung dalam Pernyataan Tadbir Urus Korporat.
TERMA RUJUKAN Kuasa, tugas, dan tanggungjawab Jawatankuasa Audit Lembaga digariskan di bawah Terma Rujukan Jawatankuasa Audit Lembaga.

Terma Rujukan Jawatankuasa Audit Lembaga yang telah diluluskan oleh Lembaga boleh didapati di laman web rasmi KWSP di www.kwsp.gov.my.
RINGKASAN AKTIVITI-AKTIVITI UTAMA Sepanjang tahun 2020, Jawatankuasa Audit Lembaga telah melaksanakan aktiviti-aktiviti seperti berikut: (a) Audit Dalam (i) Meneliti dan meluluskan pelan audit tahunan bagi memastikan kecukupan skop pengauditan dan liputan secara menyeluruh aktiviti-aktiviti KWSP adalah dirancang berdasarkan penilaian risiko yang dilaksanakan.

Sebanyak 107 audit telah dicadangkan untuk dilaksanakan dalam Pelan Audit 2021 yang telah diluluskan pada November 2020.
64 TADBIR URUSLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20206 LAPORAN JAWATANKUASA AUDIT LEMBAGA (ii) Meneliti dan membincangkan laporan-laporan Audit Dalam yang dibentangkan dalam tahun semasa serta cadangan-cadangan yang dibuat, punca penyebab utama yang dikenal pasti dan maklum balas Pengurusan terhadap cadangan-cadangan tersebut serta tindakan mitigasi wajar yang diambil oleh Pengurusan untuk mempertingkatkan kecukupan kawalan dalaman dan proses aliran kerja bagi perkara yang dibangkitkan.
Antara topik-topik perbincangan yang diadakan sepanjang tahun adalah mengenai strategi dan pengurusan keselamatan siber, keselamatan data dan tadbir urus IT, termasuk yang melibatkan pengurusan akses, pengurusan data dan pengurusan vendor.

Isu-isu dibincangkan secara terperinci bagi mendapatkan kesimpulan yang memuaskan mengenai tindakan oleh Pengurusan untuk masa yang akan datang.
(iii) Meneliti penemuan siasatan dan kajian khas adhoc berhubung bidang-bidang operasi yang spesifik bagi menentukan punca penyebab isu-isu berbangkit serta keberkesanan tindakan pembetulan yang diambil untuk menangani kelemahan-kelemahan yang telah dikenal pasti.

(iv) Memantau tindakan pembetulan yang diambil ke atas isu-isu audit yang belum selesai untuk memastikan risiko- risiko utama dan kelemahan kawalan ditangani dengan sewajarnya.
(v) Meneliti keberkesanan proses audit, keperluan tenaga kerja tahunan dan menilai prestasi Jabatan Audit Dalam dua kali setahun dan memberikan maklum balas secara bertulis untuk tujuan penambahbaikan.
Perkara-perkara yang dilaporkan kepada Jawatankuasa Audit Lembaga meliputi status pelaksanaan pelan audit, skop dan risiko diaudit, analisa punca penyebab utama, ringkasan penggredan audit bagi auditan yang telah dilaksanakan, ringkasan pemerhatian audit dan cadangan audit untuk penambahbaikan proses perniagaan, hasil penilaian oleh pihak diaudit, status penggunaan bajet, ringkasan kursus yang dihadiri oleh juruaudit, inisiatif penggunaan data analytics dan inisiatif-inisiatif penambahbaikan lain yang dilaksanakan oleh Jabatan Audit Dalam.
(vi) Meneliti dan memperakukan pendedahan terhadap Pernyataan Audit Dalam dan Pernyataan Pengurusan Risiko dan Kawalan Dalaman untuk dipaparkan dalam Laporan Tahunan.

(vii) Meneliti dan membincangkan Laporan Jaminan Kualiti yang disediakan oleh PricewaterhouseCoopers Risk Services Sdn.

Bhd.

untuk memastikan pematuhan berterusan dengan International Standards yang ditetapkan oleh The Institute of Internal Auditors.
Semakan Semula Jaminan Kualiti perlu dilaksanakan sekurang-kurangnya sekali setiap lima tahun oleh perunding bebas bertauliah.

Semakan Semula Jaminan Kualiti ke atas Jabatan Audit Dalam telah dilaksanakan pada tahun 2020.

(b) Audit Luar (i) Meneliti semua pemerhatian yang dikenal pasti oleh juruaudit luar serta maklum balas Pengurusan terhadap penemuan tersebut.
(ii) Mesyuarat bersama Jabatan Audit Negara pada 2 Oktober 2020 diadakan tanpa kehadiran Pengurusan untuk membincangkan isu-isu berkaitan dan mendapatkan maklum balas untuk penambahbaikan.
(c) Laporan Kewangan Meneliti laporan kewangan suku tahunan yang belum diaudit dan laporan kewangan tahunan beraudit KWSP sebelum memperakukan kepada Lembaga untuk kelulusan dengan tumpuan kepada: (i) Implikasi pindaan polisi dan praktis perakaunan kepada penyata kewangan; (ii) Perkara-perkara penting yang dibangkitkan termasuk isu-isu laporan kewangan, pertimbangan yang dibuat oleh pengurusan, perkara atau transaksi luar biasa dan cara perkara-perkara ini ditangani; dan (iii) Pematuhan peruntukan piawaian perakaunan yang diterima pakai di Malaysia dan peraturan undang-undang yang lain.
65 TADBIR URUSWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20206 LAPORAN JAWATANKUASA AUDIT LEMBAGA (d) Urus Niaga Pihak Berkaitan Meneliti transaksi urus niaga pihak berkaitan oleh KWSP dan semua anak syarikat seperti yang dinyatakan dalam penyata kewangan.

LATIHAN Sepanjang tahun 2020, ahli-ahli Jawatankuasa Audit Lembaga telah menghadiri pelbagai program latihan, persidangan dan seminar seperti berikut: Bil.

Kursus 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.
Board Strategy Meeting 2020: Sustainability in the Next Normal Digital Transformation for the EPF’s Board/Investment Panel/Shariah Advisory Committee and Top Management: Latest World Trends in the Digitalization of Corporations and Business Shariah Audit Committee Conference 2020: Insights on Roles and Issues on Enhancing Governance Within the New Framework, Both Locally and International Jurisdictions Cyber Awareness Updates: Protection of the Confidentiality and Integrity of Information and Assets Latest Cybersecurity Threats and Landscape: Updating on Recent Developments on Cybersecurity Corporate Liability Provision MACC (Amendments) Act 2018: Liabilities of Directors Under New Amended Provisions Shariah Governance Policy and Resolutions (SGPD) of BNM Shariah Advisory Council: Overview, Highlights and Resolutions of SGPD and E-Money Operationalization Shariah Governance Policy Document: Updates on Shariah Governance in Takaful Takaful 101: Takaful Principles and Operations Fundamentals of Reinsurance and Retrocession: Reinsurance and Retrocession Principles and Assets Anti-Money Laundering 2020: Risks During Pandemic, Latest Amendments Top 10 Challenges in Social Protection 13.
Onboarding for Board Members and Investment Panel FUNGSI AUDIT DALAM Jawatankuasa Audit Lembaga disokong oleh Jabatan Audit Dalam dalam menjalankan tugas dan tanggungjawabnya.

Jabatan Audit Dalam melapor terus kepada Jawatankuasa Audit Lembaga dalam melaksanakan aktiviti-aktiviti audit dalaman berdasarkan pelan audit tahunan yang telah diluluskan.

Jabatan Audit Dalam memberikan jaminan objektif yang bebas serta khidmat nasihat yang dirancang untuk memberi nilai tambah demi penambahbaikan operasi KWSP.
Jabatan Audit Dalam membantu KWSP mencapai objektifnya melalui pendekatan yang sistematik dan berdisiplin dalam menilai dan mempertingkatkan keberkesanan proses-proses pengurusan risiko, kawalan dalaman dan tadbir urus.

Maklumat lanjut berkaitan fungsi audit dalam adalah seperti yang terkandung di Pernyataan Audit Dalam.
66 TADBIR URUSLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20206 PERNYATAAN AUDIT DALAM PENGENALAN (c) penglibatan sebagai pemerhati dalam aktiviti- Jabatan Audit Dalam memberikan jaminan objektif yang bebas serta khidmat nasihat yang dirancang untuk memberi nilai tambah bagi penambahbaikan operasi KWSP.
Jabatan Audit Dalam membantu KWSP mencapai objektifnya melalui pendekatan yang sistematik dan berdisiplin dalam menilai dan mempertingkatkan keberkesanan proses-proses pengurusan risiko, kawalan dalaman dan tadbir urus.

KEBEBASAN DAN OBJEKTIVITI Ketua Jabatan Audit Dalam melaporkan secara fungsional kepada Jawatankuasa Audit Lembaga dan secara pentadbiran kepada Ketua Pegawai Eksekutif.
Aktiviti- aktiviti Jabatan Audit Dalam adalah bebas daripada sebarang pengaruh dalam menentukan skop pengauditan dan pelaksanaan kerja serta memaklumkan hasil auditan.

Bagi menjaga status kebebasannya, Jabatan Audit Dalam tidak mempunyai sebarang kuasa eksekutif atau pengurusan, autoriti, fungsi atau tanggungjawab kecuali berkaitan dengan pengurusan Jabatan Audit Dalam.
Jabatan Audit Dalam juga tidak bertanggungjawab terhadap pembangunan atau pelaksanaan terperinci sistem, perancangan, peraturan, polisi atau prosedur baru.

SKOP KERJA Fungsi Jabatan Audit Dalam merangkumi pengauditan kewangan, operasi, pematuhan dan pengurusan KWSP.
Skop kerja Jabatan Audit Dalam yang paling utama adalah menentukan sama ada proses-proses pengurusan risiko, sistem kawalan dalaman, sistem pengurusan maklumat dan tadbir urus KWSP seperti yang dirancang dan dilaksanakan oleh Pengurusan adalah mencukupi dan berfungsi dengan berkesan supaya: (a) (b) risiko dikenal pasti dan diuruskan dengan sewajarnya; sumber-sumber diperoleh secara ekonomik dan digunakan secara efektif dan efisien; (c) aset adalah terpelihara; (d) maklumat penting mengenai pengurusan, kewangan dan operasi adalah tepat, munasabah dan disediakan dalam tempoh yang ditetapkan; (e) peraturan dan undang-undang, polisi, piawaian dan prosedur yang diguna pakai adalah dipatuhi; dan (f) objektif dan matlamat yang ditetapkan dicapai.
Skop kerja Jabatan Audit Dalam juga merangkumi: (a) pelaksanaan siasatan khas atas permintaan Pengurusan / Jawatankuasa Audit Lembaga; (b) bekerjasama dengan juruaudit luar untuk memastikan liputan pengauditan adalah mencukupi, serta meminimumkan pertindihan kerja; aktiviti Pengurusan Kesinambungan Perniagaan untuk memberikan pemerhatian bebas mengenai kesediaan pemulihan perniagaan / sistem untuk kembali / pulih (sekiranya bencana berlaku) dalam masa yang ditetapkan; dan (d) penglibatan sebagai pemerhati dalam jawatankuasa-jawatankuasa pengurusan yang ditubuhkan untuk pembangunan atau pelaksanaan sistem atau proses baru.
Penglibatan tersebut adalah terhad kepada pemberian khidmat nasihat berkaitan kawalan dalaman dan hal ini tidak akan menghalang Jabatan Audit Dalam daripada menjalankan pengauditan ke atas sistem atau proses berkenaan.

Jabatan Audit Dalam membangunkan pelan audit dengan berdasarkan risk-based, dengan mempertimbangkan objektif strategik KWSP serta ulasan daripada Jawatankuasa Audit Lembaga dan Pengurusan Tinggi.
Pengauditan yang dijalankan telah diberi keutamaan berdasarkan penilaian risiko yang wujud, risiko kawalan dan risiko pengesanan bagi setiap operasi, fungsi dan sistem teknologi maklumat.

Dalam tahun kewangan 2020, 107 laporan telah dibentangkan kepada Jawatankuasa Audit Lembaga.

Jabatan Audit Dalam akan melaporkan status pemerhatian audit yang belum diselesaikan kepada Pengurusan pada setiap suku tahun dan kepada Jawatankuasa Audit Lembaga pada setiap setengah tahun.
Status pelaksanaan tindakan-tindakan yang telah dipersetujui oleh Pengurusan akan terus dipantau oleh Jabatan Audit Dalam.

SUMBER JABATAN AUDIT DALAM Jawatankuasa Audit Lembaga meneliti dan meluluskan keperluan sumber manusia Jabatan Audit Dalam bagi memastikan Jabatan Audit Dalam mempunyai bilangan juruaudit yang mencukupi dan kompeten.

Setakat 31 Disember 2020, Jabatan Audit Dalam mempunyai kekuatan tenaga kerja seramai 88 juruaudit daripada pelbagai latar belakang dan kepakaran, seperti berikut: Bil.
Bidang Kepakaran Bilangan Juruaudit Peratusan 1.

2.

3.

4.

Kewangan dan Perakaunan Teknologi Maklumat Pentadbiran Perniagaan Kejuruteraan / Juruukur Bahan Jumlah 59 14 13 2 88 67% 16% 15% 2% 100% 67 TADBIR URUSWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20206 PERNYATAAN AUDIT DALAM SIJIL PROFESIONAL DAN PEMBANGUNAN KOMPETENSI YANG BERTERUSAN Jabatan Audit Dalam komited dalam melengkapi juruaudit dengan pengetahuan, kemahiran dan kecekapan bagi melaksanakan tugas dan tanggungjawab mereka.
Juruaudit juga digalakkan untuk mendapatkan pensijilan dan kelayakan profesional yang bersesuaian untuk memartabatkan kecekapan masing-masing.

Setakat 31 Disember 2020, 22 juruaudit mempunyai sejumlah 31 pensijilan dan kelayakan profesional yang dianugerahkan oleh pelbagai badan profesional yang diiktiraf.
Pensijilan dan kelayakan profesional adalah seperti Association of Chartered Certified Accountants (ACCA), Certified Practising Accountants (CPA) Australia, Certified Internal Auditor (CIA), Certified Information Systems Auditor (CISA), Certified Fraud Examiner (CFE) dan sebagainya.
Pada tahun 2020, pelbagai program latihan berterusan telah dihadiri juruaudit untuk melengkapkan diri mereka dengan pengetahuan audit dalaman dan pengetahuan produk yang diperlukan, kemahiran insaniah ke atas kepimpinan, komunikasi, dan rundingan untuk meningkatkan prestasi kerja dan prospek kerjaya.

Senarai kursus yang dihadiri adalah seperti berikut: Kursus Dalaman 1.

Implementing Data Analytics in Internal Audit Kursus Luaran 1.

2.

3.

4.

5.

6.

7.

8.

9.
CAE Summit 2020: Assurance in Real Time IIAM National Conference 2020: Braving Uncertainty Governance Symposium 2020: Driving Governance in the New Normal – The Future Begins Now Shariah Audit Conference 2020: Mainstreaming Shariah Audit in Islamic Finance Leadership Energy Summit Asia (LESA) 2020: Navigating Uncertainty with Leadership Energy in Action Corporate Liability: The Ins and Outs of Section 17A of the MACC Act 2009 COVID-19 Related Financial Reporting Issues Mastering Cybersecurity to Mitigate Fraud Contract Management and Legal Aspects 10.
Private Equity Academy 2020 11.

CAE Summit 2020 12.

IIAM National Conference 2020 13.

Governance Symposium 2020 14.

15.

Shariah Audit Conference 2020 Leadership Energy Summit Asia (LESA) 2020 PROGRAM KUALITI DAN PENAMBAHBAIKAN Program Kualiti dan Penambahbaikan akan diteruskan untuk menilai kualiti proses audit, selaras dengan keperluan International Standards for the Professional Practice of Internal Auditing yang ditetapkan oleh The Institute of Internal Auditors.
Cadangan dan peluang penambahbaikan dikenal pasti melalui penilaian dalaman dan penilaian luaran.

Penilaian dalaman dilaksanakan secara tahunan oleh pasukan Jaminan Kualiti yang di bawah penyeliaan Ketua Jabatan Audit Dalam.

Keperluan untuk membuat Semakan Semula Jaminan Kualiti adalah termaktub dalam Piagam Audit Dalam yang perlu dilaksanakan sekurang-kurangnya sekali setiap lima tahun oleh perunding bebas bertauliah.
Penilaian kualiti luaran meliputi skop luas yang termasuk pematuhan terhadap Definisi Pengauditan Dalaman, Piawaian dan Kod Etika dan Piagam Audit Dalam, Pelan Audit, polisi dan prosedur selaras dengan keperluan International Standards for the Professional Practice of Internal Auditing oleh The Institute of Internal Auditors dan amalan terbaik industri.

Hasil kajian oleh perunding bebas didokumentasikan dalam laporan yang dibentangkan kepada JAL.
Berdasarkan penilaian PricewaterhouseCoopers Risk Services Sdn.

Bhd.

pada tahun 2020, Jabatan Audit Dalam secara keseluruhan mematuhi International Standards for the Professional Practice of Internal Auditing yang ditetapkan oleh The Institute of Internal Auditors.
68 TADBIR URUSLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20206 PERNYATAAN PENGURUSAN RISIKO PELABURAN TANGGUNGJAWAB Berdasarkan Seksyen 18 (1) Akta Kumpulan Wang Simpanan Pekerja (KWSP) 1991, Panel Pelaburan bertanggungjawab terhadap perkara-perkara berkaitan pelaburan KWSP dan menggalas tanggungjawab terhadap rangka kerja pengurusan risiko pelaburan.
Rangka kerja ini diwujudkan untuk memberi jaminan yang munasabah serta mengurus risiko dan bukan untuk menghapuskan risiko salah nyata atau kerugian dalam melaksanakan dasar dan objektif pelaburan organisasi.

RANGKA KERJA PENGURUSAN RISIKO PELABURAN Rangka kerja pengurusan risiko pelaburan KWSP merangkumi struktur tadbir urus, tahap risiko, alokasi aset, pelbagai polisi dan proses.

Rangka kerja ini sentiasa dikaji semula bagi memastikan ianya relevan dan berkesan.
STRUKTUR PENGURUSAN RISIKO PELABURAN Panel Pelaburan bertanggungjawab untuk mengawasi pengurusan risiko berkaitan dengan keputusan pelaburan yang dibuat oleh KWSP.

Jawatankuasa Risiko Panel Pelaburan bertanggungjawab untuk membantu Panel Pelaburan memperakukan tahap risiko dan alokasi belanjawan risiko yang sesuai.

Jawatankuasa Risiko Panel Pelaburan sentiasa mengkaji semula pelbagai pengukuran risiko, polisi, proses dan had bagi memastikan keberkesanan berterusan.
Jawatankuasa Risiko Panel Pelaburan dibantu oleh Jawatankuasa Risiko Pengurusan untuk memantau dan mengkaji semula aktiviti-aktiviti pengurusan risiko.

Jabatan Pengurusan Risiko membantu Jawatankuasa Risiko Pengurusan, Jawatankuasa Risiko Panel Pelaburan dan Panel Pelaburan dalam hal-hal berkaitan pengurusan risiko merangkumi penilaian bebas risiko dan risiko kredit, pemantauan dan laporan bagi pendedahan risiko pelaburan KWSP.
KAWALAN RISIKO Pernyataan Tahap Risiko yang diluluskan oleh Panel Pelaburan menggariskan secara umum tahap risiko yang boleh diterima oleh KWSP dan menjadi asas kepada alokasi dana untuk pelaburan.

Kajian semula terhadap alokasi aset sentiasa dilaksanakan untuk memastikan dana yang dilaburkan adalah selaras dengan tahap risiko yang boleh diterima oleh KWSP.

Pelbagai polisi dan had telah disediakan untuk memastikan risiko-risiko dipantau secukupnya bagi setiap kelas aset.
Sistem Risiko dan Prestasi telah disediakan dan dipertingkatkan secara berterusan untuk memastikan risiko diukur secara sistematik dan dipantau.

KESIMPULAN Panel Pelaburan berpandangan bahawa amalan pengurusan risiko pelaburan adalah berkesan untuk melindungi pelaburan KWSP.

Panel Pelaburan dibantu oleh Jawatankuasa Risiko Panel Pelaburan yang bermesyuarat sekurang- kurangnya dua kali setahun untuk mengkaji semula laporan risiko dan pematuhan daripada pihak pengurusan.
Pernyataan ini disediakan berdasarkan resolusi semua Ahli Panel Pelaburan bertarikh 26 April 2021.

69 TADBIR URUSWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20206 AHLI LEMBAGA Tan Sri Ahmad Badri Mohd Zahir Pengerusi KWSP Tan Sri Ahmad Badri Mohd Zahir telah dilantik sebagai Pengerusi Lembaga KWSP pada 1 Mei 2020.

Sebelum pelantikan ini, beliau merupakan Ketua Setiausaha Perbendaharaan di Kementerian Kewangan, jawatan yang telah disandang sejak 12 September 2018.
Tan Sri Ahmad Badri menganggotai Panel Pelaburan KWSP sejak 2014 dan berpengalaman luas dalam bidang pelaburan strategik, pengurusan pinjaman, pasaran kewangan, dan sains aktuari.

Selain memegang jawatan sebagai Pengerusi Kumpulan Wang Simpanan Pekerja, Tan Sri Ahmad Badri juga merupakan Pengerusi RHB Bank Berhad, Pengerusi IJN Holdings Sdn.

Bhd.

dan adalah Ahli Lembaga Pengarah Sime Darby Berhad.
Terdahulu, beliau pernah menjadi Ahli Lembaga Pengarah Bank Negara Malaysia, Kumpulan Wang Persaraan Diperbadankan (KWAP), Permodalan Nasional Berhad (PNB), dan Tenaga Nasional Berhad.

Sebelum dilantik sebagai Penolong Setiausaha di Bahagian Kewangan Kementerian Kewangan pada tahun 1989, dimana beliau berkhidmat selama lebih dari 30 tahun dalam pelbagai jawatan, Tan Sri Ahmad Badri memulakan kerjayanya sebagai Eksekutif Penilaian Kanan di C.H.

Williams, Talhar & Wong Sdn.

Bhd.


Tan Sri Badri berkelulusan Sarjana Pentadbiran Perniagaan daripada Universiti of Hull, United Kingdom, Ijazah Sarjana Muda dengan Kepujian dan Diploma dalam Pengurusan Hartanah daripada Universiti Teknologi MARA dan Diploma Pentadbiran Awam dari Institut Pentadbiran Awam Negara (INTAN).

Zakiah Jaafar Timbalan Ketua Setiausaha Perbendaharaan (Dasar), Kementerian Kewangan Malaysia Zakiah Jaafar dilantik sebagai Ahli Lembaga KWSP mewakili Kerajaan bermula 1 Februari 2020.
Zakiah Jaafar merupakan Timbalan Ketua Setiausaha Perbendaharaan (Dasar), Kementerian Kewangan Malaysia (KKM).

Beliau menyertai perkhidmatan awam pada tahun 1991 dan menyumbang 28 tahun kerjayanya di Unit Perancang Ekonomi (EPU) sebelum menyertai Kementerian Kewangan Malaysia pada penghujung tahun 2019.

Di EPU, beliau pernah memegang pelbagai portfolio termasuk kerangka makroekonomi, ekonomi berasaskan pengetahuan (knowledge-based economy) dan perumahan sektor awam.
Beliau kini di KKM, mengawasi bajet nasional, polisi cukai, pengurusan fiskal dan makroekonomi, dan agensi- agensi pelaporan kredit.

Selain menjadi Ahli Lembaga Pengarah KWSP, beliau juga merupakan Ahli Lembaga Pengarah di Petronas, Pengurusan Aset Air Berhad dan Bintulu Port Holdings.

Beliau berkelulusan Ijazah Sarjana Muda Ekonomi daripada University of Warwick, United Kingdom dan Ijazah Sarjana Sains Sosial (Ekonomi) daripada University of Birmingham, United Kingdom.
Beliau juga pernah menghadiri ‘Advanced Management and Leadership Programme’ di University of Oxford dan ‘Premier Executive Advanced Development Programme’ di Canberra, Australia.

70 PENGURUSANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20207 AHLI LEMBAGA Tan Sri Mohd Khairul Adib Abd Rahman Ketua Pengarah Perkhidmatan Awam, Jabatan Perkhidmatan Awam Tan Sri Mohd Khairul Adib Abd Rahman dilantik sebagai Ahli Lembaga KWSP mewakili Kerajaan bermula 2 Januari 2020.
Tan Sri Mohd Khairul Adib Abd Rahman merupakan Ketua Pengarah Perkhidmatan Awam Malaysia.
Beliau merupakan Ahli Lembaga Pengarah di Lembaga Hasil Dalam Negeri Malaysia (LHDN), Institut Integriti Malaysia (INTEGRITI), Razak School of Government (RSOG), Lembaga Pengiktirafan Pegawai Integriti Bertauliah (LPPIB), Institut Latihan Kehakiman dan Perundangan (ILKAP), Dewan Bahasa Dan Pustaka (DBP), Majlis Agensi Kelayakan Malaysia (MQA), Kumpulan Wang Balu & Anak Yatim Sabah (WOPF Sabah), Kumpulan Wang Balu & Anak Yatim Sarawak (WOPF Sarawak) dan Kumpulan Wang Persaraan (Diperbadankan) (KWAP).
Beliau berkelulusan Ijazah Sarjana Polisi Awam daripada Universiti Saitama, Jepun.

Dato’ Jamil Rakon Ketua Setiausaha, Kementerian Sumber Manusia Dato’ Jamil Rakon dilantik sebagai Ahli Lembaga KWSP mewakili Kerajaan bermula 1 September 2020.

Dato’ Jamil Rakon merupakan Ketua Setiausaha di Kementerian Sumber Manusia (KSM).

Beliau telah berkhidmat selama 36 tahun dalam Perkhidmatan Awam.
Sebelum ini, beliau pernah berkhidmat sebagai Ketua Setiausaha Kementerian Dalam Negeri, Timbalan Setiausaha (Pengurusan) Kementerian Dalam Negeri dan Timbalan Setiausaha (Pengurusan) Kementerian Pendidikan.

Beliau berkelulusan Sarjana Pengurusan (Sumber Manusia) daripada Australian Institute of Criminology, Canberra, Australia.
71 PENGURUSANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20207 AHLI LEMBAGA Datuk Amar Jaul Samion Setiausaha, Kerajaan Negeri Sarawak Datuk Amar Jaul Samion telah dilantik sebagai Wakil Kerajaan dalam Lembaga KWSP bermula 13 Ogos 2019.

Beliau merupakan Setiausaha Kerajaan Negeri Sarawak.

Beliau mempunyai pengalaman lebih 40 tahun dalam perkhidmatan kerajaan.
Selain menjadi Ahli Lembaga KWSP, Datuk Amar Jaul Samion juga merupakan Ahli Lembaga Perbadanan Pembangunan Ekonomi Sarawak (SEDC), Lembaga Sumber Asli dan Alam Sekitar Sarawak (NREB), Perbadanan Perhutanan Sarawak (SFC), Lembaga Pembangunan Koridor Wilayah (RECODA), dan juga Pengerusi untuk pelbagai badan berkanun Kerajaan Negeri.

Beliau berkelulusan Sarjana di dalam bidang Pengurusan Perniagaan (Korporat) daripada Ohio University, Amerika Syarikat.
Datuk Seri Panglima Sr. Haji Safar Untong Setiausaha, Kerajaan Negeri Sabah Datuk Seri Panglima Sr. Haji Safar Untong telah dilantik sebagai Wakil Kerajaan dalam Lembaga KWSP bermula 1 April 2020.

Datuk Seri Panglima Sr. Haji Safar Bin Untong merupakan Setiausaha Kerajaan Negeri Sabah.

Sebelum dilantik sebagai Setiusaha Kerajaan Negeri Sabah pada 4 November 2019, beliau berkhidmat sebagai Pengarah Jabatan Tanah dan Ukur Sabah.
Beliau adalah seorang Juruukur Tanah Profesional Berdaftar, Anggota Institusi Juruukur Diraja Malaysia (FRISM) dan Felow Kehormat Pakar Institut Utiliti Antarabangsa.

Beliau juga kini merupakan Presiden Institut Pakar Utiliti Antarabangsa (Sesi 2019-2023) dan Ahli Majlis Persekutuan Tanah dan Ukur Tanah ASEAN (Sesi 2019-2021).
Beliau berkelulusan Sarjana Sains dalam bidang Pembangunan dan Pentadbiran Tanah daripada Universiti Teknologi Malaysia, Sarjana dalam bidang Pentadbiran Perniagaan daripada Universiti Malaysia Sabah dan Ijazah Sarjana Muda Ukur (Tanah) daripada Universiti Teknologi Malaysia.
72 PENGURUSANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20207 AHLI LEMBAGA Dato’ Dr. Syed Hussain Syed Husman Presiden, Persekutuan Majikan-Majikan Malaysia (MEF) Dato’ Dr. Syed Hussain Syed Husman telah dilantik sebagai Ahli Lembaga KWSP mewakili Majikan bermula 1 November 2020.

Dato’ Dr. Syed Hussain bin Syed Husman kini memegang jawatan sebagai Pengarah Eksekutif dan Ketua Pegawai Eksekutif SVTT Resources Sdn.

Bhd, di mana jawatan tersebut telah dipegang olehnya sejak 2011.
Beliau juga kini berkhidmat sebagai Presiden Persekutuan Majikan Malaysia (MEF) dan Pengerusi KIP Real Estate Investment Trust (REIT).

Dato’ Dr. Syed Hussain bin Syed Husman juga dilantik sebagai Ahli Majlis Negara bagi Keselamatan dan Kesihatan Pekerjaan (MNKKP), Majlis Penasihat Malaysian Society for Occupational Health and Safety (MSOSH), Majlis Perundingan Gaji Negara, Ahli National Labour Advisory Council (NLAC), Anggota Majlis Pekerjaan Negara (NEC) dan Ahli Majlis TVET Negara (MTVET).
Beliau memulakan kerjayanya pada tahun 1987 dan memperoleh pengalaman dalam bidang sumber manusia di ICI Malaysia.

Selain beliau memiliki pengalaman yang luas melalui pelbagai peranan kepemimpinan di Procter & Gamble Malaysia dan Singapura, Rothmans of Pall Mall (Malaysia) Berhad, British American Tobacco Berhad dan Petrofield (M) Berhad.
Beliau berkelulusan Sarjana dalam Pengurusan Perniagaan daripada Western Illinois University, Amerika Syarikat, dan pernah menghadiri Program Pembangunan Pengurusan Kanan di Harvard Business School, Amerika Syarikat.

Datuk Mohd Hasnol Ayub Yang Dipertua Dewan Perniagaan Bumiputera Sabah Datuk Mohd Hasnol Ayub telah dilantik sebagai Ahli Lembaga KWSP mewakili Majikan bermula 1 Jun 2009.

Beliau merupakan Yang Dipertua Dewan Perniagaan Bumiputera Sabah.
Beliau berkelulusan Diploma Pasca Siswazah dan Ijazah Sarjana dalam bidang Pengurusan Perniagaan dari University of Wales Cardiff, United Kingdom.

73 PENGURUSANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20207 AHLI LEMBAGA Tan Sri Dr. Lim Wee Chai Presiden Emeritus Persekutuan Pengkilang-Pengkilang Malaysia (FMM) Tan Sri Dr. Lim Wee Chai telah dilantik sebagai Ahli Lembaga KWSP mewakili Majikan pada 1 Julai 2015.
Tan Sri Dr. Lim ialah Pengerusi Eksekutif dan Pengasas Top Glove Corporation Bhd, yang ditubuhkan pada 1991 dan kini merupakan syarikat pengeluar sarung tangan terbesar di dunia.

Beliau terlibat dalam pelbagai Persatuan dan organisasi di Malaysia.

Beliau merupakan Felow Kehormat Institut Fizik Malaysia (IFM) sejak tahun 2019.

Di samping itu, Tan Sri Dr. Lim juga merupakan Presiden Kehormat Dewan Perniagaan dan Industri Cina Malaysia.
Beliau juga memegang peranan Penasihat Kehormat Seumur Hidup Persekutuan Persatuan Cina Malaysia.

Beliau juga merupakan Presiden Emeritus tahun 2019/2020 bagi Persekutuan Pengkilang- Pengkilang Malaysia (FMM).
Tan Sri Dr. Lim juga telah memegang pelbagai jawatan sebelum ini termasuk Presiden Persekutuan Pengkilang-Pengkilang Malaysia, Presiden Persatuan Pengeluar Sarung Tangan Getah Malaysia, Pengarah Persatuan Industri Perubatan Malaysia dan Ahli Lembaga di Lembaga Getah Malaysia, serta Ahli Majlis-Majlis Perniagaan Asia Timur.
Beliau berkelulusan Sarjana Muda Sains (Kepujian) dalam bidang Fizik daripada Universiti Malaya dan Sarjana Pentadbiran Perniagaan daripada Sul Ross State University, Texas, Amerika Syarikat.

Pada tahun 2015, beliau memperolehi Ijazah Doktor Falsafah Pengurusan daripada Universiti Selangor, Malaysia.
Beliau dianugerahkan Ijazah Kehormat Doktor Falsafah dalam Pentadbiran Perniagaan oleh Oklahoma City University, Amerika Syarikat pada tahun 2016 dan Ijazah Kehormat Doktor Falsafah dalam Keusahawanan oleh Management & Science University, Malaysia pada tahun 2018.

Datuk Dr. Ting Ding Ing (Philip) Timbalan Presiden, Dewan Perniagaan dan Perindustrian Sarawak Datuk Dr. Ting Ding Ing dilantik sebagai Ahli Lembaga KWSP pada 1 Jun 2019.
Beliau merupakan Timbalan Presiden Persekutuan Perniagaan Sarawak dan Dewan Perniagaan dan Perindustrian Sarawak.

Beliau merupakan Ahli Lembaga Sarawak Multi Media Authority, Ibraco Bhd, Swinburne University Sarawak Sdn Bhd, Pengerusi Swinburne Innovation Sdn Bhd, dan Ahli Jawatankuasa Malaysian International Chamber of Commerce and Industry.

Beliau juga merupakan Konsul Kehormat bagi Australia di Sarawak.
Beliau juga merupakan Felow Institute of Chartered Accountants Australia and New Zealand, Ahli Chartered Accountant Malaysia, Akauntan bertauliah Malaysia, pernah dilantik sebagai rakan kongsi antarabangsa firma Arthur Andersen & Co, dan Hanafiah Raslan & Mohamad.

Beliau pernah dilantik sebagai Ahli Lembaga Pertubuhan Keselamatan Sosial Malaysia (PERKESO) dan Malaysian Medical Foundation, serta Pengarah Urusan Kumpulan Cahya Mata Sarawak Bhd.
Datuk Dr. Ting Ding Ing memegang Ijazah Sarjana Muda Perakaunan dan Ijazah Kedoktoran daripada Swineburne University of Technology, Melbourne, Australia.

Beliau kini merupakan Profesor Adjung di universiti tersebut.

74 PENGURUSANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20207 AHLI LEMBAGA Dato’ Abdul Halim Mansor Presiden, Kongres Kesatuan Sekerja Malaysia (MTUC) Dato’ Abdul Halim Mansor telah dilantik sebagai Ahli Lembaga KWSP mewakili Pekerja pada Januari 2017.
Dato’ Abdul Halim merupakan Presiden Kongres Kesatuan Sekerja Malaysia sejak tahun 2016 dan merupakan Setiausaha Agung Kesatuan Kebangsaan Pekerja-Pekerja Perusahaan Industri Petroleum dan Kimia (NUPCIW) sejak tahun 1986.

Beliau juga merupakan Ahli Lembaga Pertubuhan Keselamatan Sosial Malaysia (PERKESO), Pengerusi Giat MARA, Presiden ASEAN Trade Union Council, Ahli Majlis Penasihat Buruh Kebangsaan, Ahli Majlis Perundingan Gaji Negara, dan Ahli Majlis TVET ASEAN.
Selain merupakan Ahli Kesatuan Sekerja yang aktif dengan rekod cemerlang, beliau juga memiliki pengetahuan dan pengalaman luas dalam bidang undang-undang buruh, dasar pekerjaan, hubungan industri, dan keselamatan pekerjaan.

Beliau sebelum ini merupakan Ahli Panel Mahkamah Industri dan Ahli Lembaga Rayuan PERKESO.

Beliau kini berkhidmat dengan Nylex (Malaysia) Sdn.

Bhd.
Bhd.

Tuan Haji Adnan Mat Presiden, Kongres Kesatuan Pekerja-Pekerja Awam Di Dalam Perkhidmatan Awam (CUEPACS) Tuan Haji Adnan Mat telah dilantik sebagai Ahli Lembaga KWSP mewakili Pekerja bermula 1 Jun 2017.

Beliau merupakan Presiden Kongres Kesatuan Pekerja-Pekerja Di Dalam Perkhidmatan Awam (CUEPACS) dan Presiden Kesatuan Kebangsaan Pekerja-Pekerja Pihak Berkuasa Tempatan Semenanjung Malaysia.

Beliau bertugas di Majlis Perbandaran Sungai Petani, Kedah.
Beliau juga merupakan Pengerusi Majlis Bersama Kebangsaan Bagi Pekerja-Pekerja Sains & Teknologi Dalam Kumpulan Pelaksana.

Beliau merupakan seorang anggota awam dengan rekod jejak kesatuan yang lama.

Selaku Presiden CUEPACS, beliau telah dilantik sebagai Ahli Tetap Majlis Penasihat Buruh Kebangsaan di Kementerian Sumber Manusia Malaysia.

Beliau juga terlibat secara aktif dalam gerakan Koperasi selaras dengan pelantikan beliau sebagai Setiausaha Koperasi KOSPETA Malaysia Berhad (Koop Negara No 66).
Beliau berkelulusan Diploma The Royal Society for the Promotion of Health (RSH London) dari Institut Kesihatan Umum Kuala Lumpur.

75 PENGURUSANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20207 AHLI LEMBAGA Hadiah Leen Presiden, Kesatuan Pekerja Bank Sarawak Hadiah Leen telah dilantik sebagai Ahli Lembaga KWSP mewakili Pekerja bermula 1 Februari 2012.

Terdahulu, beliau merupakan anggota Hong Leong Bank Berhad, Cawangan Satok, Kuching dan beliau aktif dalam aktiviti kesatuan sekerja.
Sejak tahun 2001, beliau merupakan Presiden Kesatuan Pekerja Bank Sarawak, Ketua Wanita Kongres Kesatuan Sekerja Malaysia, Bahagian Sarawak.

Beliau menjadi Ahli Eksekutif Lembaga UNI-Apro Region pada tahun 2005 dan dilantik semula pada tahun 2015.

Beliau merupakan ahli mewakili panel pekerja dalam Mahkamah Perusahaan pada tahun 2010 dan dilantik semula pada tahun 2015.

Beliau juga merupakan ahli International Society for Labour and Social Security Law, Malaysia.
Beliau berkelulusan Diploma Pengurusan Perniagaan daripada Institute of Professional and Managerial Administration, Kolej Putra, Kuala Lumpur, Diploma in International Labour Standards, Fundamental Principles and Rights at Work daripada the ILO Centre Turin, Italy, dan Sijil Pengurusan Anggota daripada Institut Pengurusan Sumber Manusia Malaysia.

Beliau pernah menyertai Program Pengarah Wanita Malaysia bersama NAM Institute for the Empowerment of Women pada 2013.
Catherine Jikunan Setiausaha, Kongres Kesatuan Sekerja Malaysia (MTUC) Kesatuan Sekerja Bank Sabah Catherine Jikunan telah dilantik sebagai Ahli Lembaga KWSP mewakili Pekerja bermula 1 Jun 2013.
Beliau merupakan Setiausaha Kongres Kesatuan Sekerja Sabah, Setiausaha Agung Sabah Banking Employees’ Union, Presiden bagi Asean Bank Union Council, EXCO bagi Kongres Kesatuan Sekerja Malaysia, Timbalan Bendahari bagi Kesatuan Pekerja-Pekerja Bank Kebangsaan dan Naib Presiden Union Network International Asia Pacific.

Beliau berkelulusan Diploma Perbankan dan Sarjana Muda Pentadbiran Korporat (Kepujian), kedua-duanya daripada Universiti Teknologi Mara.
Beliau turut memiliki Ijazah Sarjana dalam Labour Policies and Globalisation daripada University of Kassel and Berlin School of Economy, Jerman.

76 PENGURUSANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20207 AHLI LEMBAGA Datuk Thomas George M.S.

George Mantan Ketua Setiausaha, Kementerian Kerja Raya Datuk Thomas George M.S.

George telah dilantik sebagai Ahli Lembaga KWSP mewakili Profesional bermula pada 1 Jun 2013.
Beliau pernah berkhidmat sebagai Timbalan Pengarah dan kemudiannya sebagai Pengarah Bahagian Penyelidikan dan Perancangan, Jabatan Perkhidmatan Awam dan Penyelaras Projek Kanan, Pengurusan Pembangunan dan Program Kualiti, Institut Tadbiran Awam Negara.

Datuk Thomas George M.S.

George juga pernah menyandang jawatan Ketua Setiausaha di Kementerian Sumber Manusia dari 27 Mei 2006 sehingga 21 April 2009 dan Ketua Setiausaha di Kementerian Kerja Raya dari 22 April 2009 sehingga beliau bersara.
Beliau berkelulusan Sarjana Pentadbiran Awam daripada George Washington University, Amerika Syarikat.

Zainal Abidin Mohd Kassim Rakan Kongsi Kanan, Actuarial Partners Consulting Sdn Bhd Zainal Abidin Mohd Kassim telah dilantik sebagai Ahli Lembaga KWSP mewakili Profesional bermula 1 Jun 2015.

Beliau kini merupakan Pengarah Urusan dan Rakan Kongsi Kanan Actuarial Partners Consulting Sdn Bhd.

Beliau memulakan kerjayanya pada tahun 1978 di Prudential Assurance Plc di London.
Beliau berkelulusan (Kepujian) Kelas Pertama dalam Sains Aktuari dari City, University of London dan merupakan Felow di Institut dan Fakulti Aktuari, United Kingdom.

Selain itu, beliau juga merupakan seorang Felow Persatuan Aktuari Malaysia dan Associate of the Society of Actuaries, Amerika Syarikat serta pernah menjadi Presiden Persatuan Aktuari Malaysia.
77 PENGURUSANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20207 AHLI LEMBAGA Khalid Haji Sufat Pengarah Bukan Bebas & Bukan Eksekutif, Kuwait Finance House (Malaysia) Berhad Khalid Haji Sufat telah dilantik sebagai Ahli Lembaga KWSP mewakili Profesional bermula 1 Jun 2017.
Sebagai seorang akauntan, Khalid Haji Sufat berpengalaman luas dalam industri perbankan dan memegang beberapa jawatan kanan seperti Pengarah Urusan di Bank Kerjasama Rakyat Malaysia Berhad, Pengurus Besar, Perbankan Pengguna di Malayan Banking Berhad dan Pengarah Eksekutif di United Merchant Finance Berhad.
Beliau sebelum ini pernah menguruskan tiga syarikat tersenarai iaitu sebagai Pengarah Eksekutif di Tronoh Mines Malaysia Berhad, Timbalan Pengerusi Eksekutif di Furqan Business Organization Berhad dan Pengarah Urusan Kumpulan di Seacera Tiles Berhad.

Beliau juga merupakan Pengarah dalam syarikat awam lain termasuk MNRB Holdings Berhad, Malaysian Reinsurance Bhd dan Kuwait Finance House (Malaysia) Bhd.
Beliau merupakan Felow Chartered Certified Accountants (UK), Ahli Malaysian Institute of Certified Public Accountants dan Malaysian Institute of Accountants.

Dato’ Mohammed Azlan Hashim Pengerusi (Eksekutif) Marine & General Berhad Dato’ Mohammed Azlan Hashim telah dilantik sebagai Ahli Lembaga KWSP mewakili Profesional dan merupakan Pengerusi Panel Pelaburan KWSP bermula 1 September 2020.
Beliau juga memegang jawatan Pengerusi di beberapa entiti awam yang tersenarai seperti D&O Green Technologies Berhad, Marine & General Berhad, IHH Healthcare Berhad dan Telekom Nasional Berhad.

Selain itu, Dato’ Mohammed Azlan Hashim merupakan Ahli Lembaga Pengarah Khazanah Nasional Berhad dan mempunyai pengalaman yang luas dalam sektor korporat, merangkumi perkhidmatan kewangan dan pelaburan.
Beliau mempunyai kelulusan Ijazah Sarjana Ekonomi daripada Monash University, Melbourne, Australia, dan merupakan serorang akauntan bertauliah.

Selain itu, Dato’ Mohammed Azlan Hashim adalah Ahli Felow Institute of Chartered Accountants, Australia, Institute of Chartered Secretaries and Administrators, serta Ahli Institusi Akauntan Malaysia.
78 PENGURUSANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20207 AHLI LEMBAGA Datuk Ruben Emir Gnanalingam Abdullah Pengarah Urusan, Westport Holdings Berhad Datuk Ruben Emir Gnanalingam Abdullah telah dilantik sebagai Ahli Lembaga KWSP mewakili Profesional bermula 1 September 2020.

Kerjaya beliau bermula sebagai seorang pelatih di Westport Malaysia Sdn Bhd (WMSB) sebelum mengambil keputusan untuk menubuhkan The Makmal Group.
Beliau kemudian menyertai semula WMSB sebagai Ketua Pegawai Eksekutif pada tahun 2009 dan kemudian dilantik sebagai Pengarah Urusan Kumpulan Westports Holdings Bhd pada 2018.

Datuk Ruben merupakan pemilik dan Naib Pengerusi Kelab Bola Sepak Queens Park Rangers dan pemilik serta Ahli Lembaga Kelab Bola Sepak Los Angeles (LAFC).

Beliau berkhidmat sebagai Ahli Majlis Eksekutif Persatuan Bola Sepak Selangor dan pemilik pasukan bola keranjang KL Dragons.
Beliau juga merupakan Ahli Lembaga ASEAN Basketball League (ABL) dan Ahli Lembaga NBA Junior Asia Advisory.

Beliau juga merupakan Ahli Lembaga Bintang Capital Partners Berhad dan Malaysian Productivity Corporation.

Datuk Ruben juga merupakan Naib Presiden Kuala Lumpur Business Club Malaysia dan Ahli APEC Business Advisory Council (ABAC).
Beliau juga melibatkan diri dalam kegiatan amal yang mana beliau merupakan Pengerusi QPR Community Trust, Westports Foundation dan Ketua Pegawai Eksekutif Action Network.

Datuk Ruben Emir Gnanalingam merupakan bekas pelajar Victoria Institution dan Kolej Eton di United Kingdom, sebelum memperoleh Ijazah Sarjana Muda Sains (Kepujian) dalam Ekonomi daripada London School of Economics and Political Science, United Kingdom pada 1998.
Beliau juga berkelulusan Diploma dalam Pengurusan Pelabuhan yang dianugerahkan oleh University of Cambridge Local Examinations Syndicate.

Selain itu, Datuk Ruben juga menghadiri pelbagai program pendidikan eksekutif yang dianjurkan oleh Harvard Business School seperti Program Pembangunan Pengurusan Kanan dan Program Pembangunan Kepimpinan.

Alizakri Alias Ketua Pegawai Eksekutif Alizakri Alias telah dilantik sebagai Ketua Pegawai Eksekutif KWSP pada 20 Ogos 2018.
Alizakri Alias menyertai KWSP pada 1 Januari 2014 sebagai Timbalan Ketua Pegawai Eksekutif Bahagian Strategi dan bertanggungjawab untuk mengawasi dasar nasional berkaitan perlindungan sosial serta perkembangan produk dan perkhidmatan KWSP.

Di samping itu, beliau bertanggungjawab dalam aspek strategi dan urusan korporat, modal insan, dan pengembangan bakat.

Alizakri merupakan Ahli Lembaga Pengarah Battersea Power Station Development Company Limited, Sime Darby Plantations Bhd dan Kwasa Utama Sdn Bhd.
Beliau juga merupakan Ahli Lembaga Pengarah Astro Malaysia Holdings Bhd sejak Februari 2019, dan pernah menyandang jawatan sebagai Ahli Lembaga Pengarah Dialog Group Berhad, Naib Pengerusi Suruhanjaya Teknikal Organisasi, Pengurusan & Inovasi Persatuan Keselamatan Sosial Antarabangsa (ISSA), dan Ketua Setiausaha Persatuan Keselamatan Sosial ASEAN (ASSA).
Alizakri memiliki Sarjana Pentadbiran Perniagaan (MBA) daripada Cornell University, dan Sarjana Muda Undang-Undang (LLB) daripada King’s College, University of London, United Kingdom.

Beliau berkelayakan sebagai peguam bela dan peguam cara di Mahkamah Malaya dan sebagai Peguam (Lincoln’s Inn) di Mahkamah England dan Wales.
79 PENGURUSANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20207 AHLI SILIH GANTI LEMBAGA WAKIL KERAJAAN Dato’ Sri Haji Mohamad Abu Bakar Marzuki 13.8.2019 - 31.5.2021 Datin Setia Nik Roslini Raja Ismail 1.4.2020 - 31.5.2021 Datuk Seri Haji Suhaime Mahbar 1.4.2020 - 31.5.2021 Kerajaan Timbalan Setiausaha Kerajaan Negeri Sarawak (Transformasi Sosioekonomi) Pejabat Setiausaha Kerajaan Negeri Sarawak Kerajaan Timbalan Setiausaha Bahagian Perolehan Kerajaan Kementerian Kewangan Malaysia Kerajaan Timbalan Ketua Pengarah Perkhidmatan Awam (Pembangunan), Jabatan Perkhidmatan Awam Betty Hasan 1.4.2020 - 1.9.2020 Datuk (Datu) Rosmadi Datu Sulai 1.4.2020 - 31.5.2021 Kerajaan Pengarah Kanan Institut Maklumat dan Analisa Pasaran Buruh (ILMIA), Kementerian Sumber Manusia Kerajaan Pengarah Perkhidmatan Awam Negeri Sabah 80 PENGURUSANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20207 AHLI PANEL PELABURAN Dato’ Mohammed Azlan Hashim telah dilantik sebagai Pengerusi Panel Pelaburan KWSP bermula 1 September 2020.
Beliau juga memegang jawatan Pengerusi di beberapa entiti awam yang tersenarai seperti D&O Green Technologies Berhad, Marine & General Berhad, IHH Healthcare Berhad dan Telekom Nasional Berhad.

Selain itu, Dato’ Mohammed Azlan Hashim merupakan Ahli Lembaga Pengarah Khazanah Nasional Berhad dan mempunyai pengalaman yang luas dalam sektor korporat, merangkumi perkhidmatan kewangan dan pelaburan.
Beliau mempunyai kelulusan Ijazah Sarjana Ekonomi daripada Monash University, Melbourne dan merupakan serorang akauntan bertauliah.

Selain itu, Dato’ Mohammed Azlan Hashim adalah Ahli Felow Institute of Chartered Accountants, Australia, Institute of Chartered Secretaries and Administrators, serta Ahli Institusi Akauntan Malaysia.

Dr. Sivabalasingam Veerasingam telah dilantik sebagai Ahli Panel Pelaburan pada 1 Mei 2020.
Dr. Sivabalasingam kini memegang jawatan sebagai Ketua Ekonomi di bawah Bahagian Fiskal dan Ekonomi, Kementerian Kewangan.
Sebelum ini, beliau pernah berkhidmat sebagai Ketua Seksyen Ekonometrik di bawah Bahagian Ekonomi & Antarabangsa Kementerian Kewangan, Timbalan Pengarah Kluster untuk Penyelidikan Pembangunan dan Dasar Institut Pentadbiran Awam Negara, Ketua Seksyen di Seksyen Makro dan Seksyen Ekonometrik di Kementerian Kewangan, Ketua Penolong Setiausaha Seksyen Ekonometrik dan Seksyen Makro di Bahagian Ekonomi & Dalaman Kementerian Kewangan dan Penolong Setiausaha Seksyen Makro dan Seksyen Insurans di Pengurusan Perolehan Kerajaan Kementerian Kewangan.
Beliau yang berpengalaman luas di Kementerian Kewangan, telah memulakan kerjayanya sebagai Inspektor Polis (Bahagian Pengurusan) di bawah Polis Diraja Malaysia (PDRM) pada tahun 1987.

Di samping itu, Dr. Sivabalasingam memegang jawatan sebagai Pengarah di Prasarana Malaysia Berhad dan DanaInfra Nasional Berhad.

Beliau juga telah menulis beberapa jurnal ekonomi.


Beliau memiliki Diploma Pentadbiran Awam dari Institut Tadbiran Awam Negara (INTAN), Ijazah Sarjana Muda Sastera (Kepujian) daripada Association of International Accoutants (UK), Sarjana Kewangan daripada Royal Melbourne Institute of Technology Australia dan Ijazah Doktor Falsafah daripada Universiti Putra Malaysia.
81 Dato’ Mohammed Azlan Hashim 1.9.2020 - 31.8.2022 Pengerusi (Eksekutif) Marine & General Berhad Dr. Sivabalasingam Veerasingam 1.5.2020 - 31.5.2021 Ketua Ekonomi Bahagian Fiskal dan Ekonomi Kementerian Kewangan Malaysia PENGURUSANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20207 AHLI PANEL PELABURAN Adnan Zaylani Mohamad Zahid 4.11.2018 - 15.3.2020 Penolong Gabenor Bank Negara Malaysia Rossana Annizah Ahmad Rashid 1.6.2015 - 31.5.2021 Pengerusi, Bank Simpanan Nasional 82 Adnan Zaylani telah dilantik sebagai Ahli Panel Pelaburan pada 4 November 2018.
Adnan Zaylani memegang jawatan sebagai Penolong Gabenor di Bank Negara Malaysia yang bertanggungjawab untuk pembangunan sektor kewangan dan insurans, pembangunan kewangan, kewangan Islam dan mengawasi jabatan perundangan.

Beliau ialah Ahli Jawatankuasa Pengurusan Bank, Jawatankuasa Kestabilan Kewangan dan menganggotai pelbagai jawatankuasa dasar dan pembangunan lain di bank.

Encik Adnan mewakili bank dalam Lembaga Kumpulan Wang Persaraan (KWAP) dan Credit Guarantee Corporation (CGC).
Beliau juga merupakan Ahli Jawatankuasa Eksekutif (EXCO) dan Jawatankuasa Audit di INCEIF, Anggota Lembaga Labuan FSA dan merupakan Ahli Jawatankuasa Eksekutif Lembaga Pengarah (BEC) International Islamic Liquidity Management Corporation (IILM).
Encik Adnan merupakan pemegang Ijazah Sarjana dalam Public Policy daripada Blavatnik School of Government, University of Oxford, Sarjana Sains dalam Global Market Economics, London School of Economics dan Sarjana Muda Sains dalam Economics, London School of Economics.

Beliau merupakan Ahli Financial Market Association of Malaysia.

Rossana Annizah Ahmad Rashid telah dilantik pada 1 Jun 2015.
Rossana Annizah merupakan Pengerusi Peringkat Negara bagi The Jardine Matheson Group of Companies di Malaysia, serta Naib Pengerusi dan Pengarah Bukan Bebas Bukan Eksekutif, Lembaga Pengarah Cycle & Carriage Bintang Berhad dan ahli The Jardine Matheson Group.

Selain menjadi Ahli Lembaga Pengarah Celcom Axiata Berhad dan edotco Group Sdn Bhd, yang merupakan anak-anak syarikat Axiata Group Berhad, beliau merupakan Pengerusi Bank Simpanan Nasional dan Prudential BSN Takaful Berhad.
Di samping itu, Rosanna juga turut berkhidmat di Lembaga Astro Malaysia Holdings Berhad.

Beliau banyak menerajui jawatan kepimpinan di sektor telekomunikasi dan perbankan.

Rosanna telah memulakan kerjaya di Citibank Malaysia, dan sebelum ini pernah memegang pelbagai jawatan pengurusan kanan seperti di TIME dotCom Berhad, Maxis Berhad dan RHB Bank Berhad.
Dengan pengalaman lebih daripada 30 tahun dalam strategi perniagaan, beliau arif dalam mengenal pasti model monetisasi yang mampan, keperluan pelanggan dan persaingan serta keperluan dalam mengkaji semula model monetisasi yang memfokuskan kepada pengurusan pendapatan dan pengurusan kos.

Rossana berkelulusan Ijazah Sarjana Muda Sastera dalam Perbankan dan Kewangan daripada Canberra College of Advanced Education, Australia (kini dikenali sebagai University of Canberra).
PENGURUSANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20207 Dato’ Md Agil Mohd Natt 1.6.2017 - 31.5.2021 Pengerusi Bukan Eksekutif, Affin Bank Berhad AHLI PANEL PELABURAN Dato’ Md Agil Mohd Natt telah dilantik sebagai Panel Pelaburan pada 1 Jun 2017.

Kerjaya Dato’ Md Agil bermula sebagai Pengurus Kewangan Korporat di Bumiputra Merchant Bankers Berhad pada tahun 1977 sebelum mula berkhidmat sebagai Pengurus Besar Kanan di Island & Peninsular Berhad.
Beliau juga merupakan Ketua Perwakilan Kleinwort Benson Limited sebelum menyertai Kumpulan Maybank pada tahun 1995 sebagai Pengurus Besar Kanan, Perbankan Korporat, Ketua Pegawai Eksekutif di Aseambankers Berhad (kini dikenali sebagai Maybank Investment Bank Berhad), dan Timbalan Presiden/ Pengarah Eksekutif di Maybank.
Sebelum bersara daripada dunia korporat pada tahun 2011, jawatan terakhir beliau merupakan Presiden and Ketua Pegawai Eksekutif di Pusat Pendidikan Kewangan Islam Antarabangsa, Universiti Kewangan Islam Dunia.

Beliau kini memegang jawatan Pengerusi bukan eksekutif bebas di Affin Bank Berhad, Manulife Insurance Berhad, dan Manulife Investment Management Berhad.
Beliau memegang Ijazah Kepujian Ekonomi daripada Brunel University London, United Kingdom, Ijazah Sarjana Kewangan daripada Cass Business School London, United Kingdom dan pernah menghadiri Program Pengurusan Advance di Harvard Business School, Amerika Syarikat.

Dato’ Wan Kamaruzaman telah dilantik sebagai Ahli Panel Pelaburan pada 1 November 2020.

Dato’ Wan Kamaruzaman merupakan Pengarah Bebas Bukan Eksekutif di Bursa Malaysia Berhad.
Selain daripada itu, Dato’ Wan Kamaruzaman juga memegang jawatan sebagai Ahli Lembaga di pelbagai organisasi tersenarai seperti Al-Aqar Healthcare REIT, Al-Salam Real Estate Investment Trust dan Minority Shareholders Watch Group.
Terdahulu, beliau telah berkhidmat sebagai Ahli Jawatankuasa Penasihat kepada FTSE4Good Index to Financial Times Stock Exchange (FTSE) Russel, London, Ahli Lembaga di Pacific Trustee Sdn Bhd, Nomura Islamic Asset Management Sdn Bhd, RHL Ventures Advisory Sdn Bhd, Pengerusi Institutional Investors Council Malaysia, Ketua Pegawai Eksekutif Ahli Lembaga Retirement Fund (Incorporated), Ahli Lembaga Malakoff Corporation Berhad dan Prima Ekuiti (UK) Limited.
Dato’ Wan Kamaruzaman Wan Ahmad 1.11.2020 - 31.10.2022 Beliau merupakan pemegang Ijazah Sarjana Muda Kepujian dalam bidang Ekonomi (Analitik Ekonomi) daripada Universiti Malaya dan merupakan seorang pegawai bank berkanun lulusan Asian Institute of Chartered Bankers.

83 PENGURUSANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20207 AHLI PANEL PELABURAN Alizakri Alias 20.8.2018 - 28.2.2021 Ketua Pegawai Eksekutif Alizakri Alias telah dilantik sebagai Ketua Pegawai Eksekutif KWSP pada 20 Ogos 2018.
Alizakri Alias menyertai KWSP pada 1 Januari 2014 sebagai Timbalan Ketua Pegawai Eksekutif Bahagian Strategi dan bertanggungjawab untuk mengawasi dasar nasional berkaitan perlindungan sosial serta perkembangan produk dan perkhidmatan KWSP.

Di samping itu, beliau bertanggungjawab dalam aspek strategi dan urusan korporat, modal insan, dan pengembangan bakat.

Alizakri merupakan Ahli Lembaga Pengarah Battersea Power Station Development Company Limited, Sime Darby Plantations Bhd dan Kwasa Utama Sdn Bhd.
Beliau juga merupakan Ahli Lembaga Pengarah Astro Malaysia Holdings Bhd sejak Februari 2019, dan pernah menyandang jawatan sebagai Ahli Lembaga Pengarah Dialog Group Berhad, Naib Pengerusi Suruhanjaya Teknikal Organisasi, Pengurusan & Inovasi Persatuan Keselamatan Sosial Antarabangsa (ISSA), dan Ketua Setiausaha Persatuan Keselamatan Sosial ASEAN (ASSA).
Alizakri memiliki Sarjana Pentadbiran Perniagaan (MBA) daripada Cornell University, dan Sarjana Muda Undang-Undang (LLB) daripada King’s College, University of London, United Kingdom.

Beliau berkelayakan sebagai peguam bela dan peguam cara di Mahkamah Malaya dan sebagai Peguam (Lincoln’s Inn) di Mahkamah England dan Wales.
84 PENGURUSANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20207 AHLI LEMBAGA, AHLI SILIH GANTI LEMBAGA DAN PANEL PELABURAN YANG BARU DILANTIK Tan Sri Mohd Khairul Adib Abd Rahman 2.1.2020 Zakiah Jaafar 1.2.2020 Datin Setia Nik Roslini Raja Ismail 1.4.2020 Datuk Seri Haji Suhaime Mahbar 1.4.2020 Betty Hasan 1.4.2020 Kerajaan Kerajaan Kerajaan Kerajaan Kerajaan Datuk Seri Panglima Sr. Haji Safar Untong 1.4.2020 Datuk (Datu) Rosmadi Datu Sulai 1.4.2020 Tan Sri Ahmad Badri Mohd Zahir 1.5.2020 Dr Sivabalasingam Veerasingam 1.5.2020 Dato’ Mohammed Azlan Hashim 1.9.2020 Kerajaan Kerajaan Pengerusi Lembaga Timbalan Pengerusi Panel Pelaburan, Kerajaan Profesional (Lembaga), Pengerusi Panel Pelaburan Dato’ Jamil Rakon 1.9.2020 Datuk Ruben Emir Gnanalingam Abdullah 1.9.2020 Dato’ Dr. Syed Hussain Syed Husman 1.11.2020 Tan Sri Dato’ Sri Mohamad Norza Zakaria 1.11.2020 Dato’ Wan Kamaruzaman Wan Ahmad 1.11.2020 Kerajaan Profesional Majikan Profesional (Ahli Panel Pelaburan) Profesional (Ahli Panel Pelaburan) 85 PENGURUSANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20207 AHLI LEMBAGA, AHLI SILIH GANTI LEMBAGA DAN PANEL PELABURAN YANG MENAMATKAN PERKHIDMATAN Tan Sri Azman Shah Haron 15.3.2020 Tan Sri Samsudin Osman 1.5.2020 Dato’ Amir Omar 1.9.2020 Majikan Pengerusi Lembaga Kerajaan Betty Hasan 1.9.2020 Kerajaan David Lau Nai Pek 1.11.2020 Tan Sri Dato’ Sri Mohamad Norza Zakaria 3.12.2020 Profesional (Ahli Panel Pelaburan) Profesional (Ahli Panel Pelaburan) 86 PENGURUSANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20207
 AHLI JAWATANKUASA LEMBAGA DAN PANEL PELABURAN Jawatankuasa Kewangan dan Pembangunan Jawatankuasa Strategi Jawatankuasa Audit Lembaga 1.
Tan Sri Ahmad Badri Mohd Zahir, 1.

Zainal Abidin Mohd Kassim, 1.

Khalid Haji Sufat, Pengerusi 2.

Zakiah Jaafar, Timbalan Pengerusi Silih Ganti: Datin Setia Nik Roslini Raja Ismail 3.

Datuk Mohd Hasnol Ayub 4.

Tuan Haji Adnan Mat 5.

Khalid Haji Sufat 6.

Alizakri Alias Pengerusi 2.

Dato’ Jamil Rakon, Timbalan Pengerusi 3.

Dato’ Dr. Syed Hussain Syed Husman 4.

Datuk Dr. Ting Ding Ing (Philip) 5.

Dato’ Abdul Halim Mansor 6.

Hadiah Leen 7.

Datuk Thomas George 8.

Alizakri Alias Pengerusi 2.


Zakiah Jaafar, Timbalan Pengerusi Silih Ganti: Datin Setia Nik Roslini Raja Ismail 3.

Datuk Dr. Philip Ting Ding In (Philip) 4.

Hadiah Leen 5.

Zainal Abidin Mohd Kassim Jawatankuasa Perjawatan, Perlantikan & Perkhidmatan Jawatankuasa Pengurusan Risiko Lembaga Jawatankuasa Tatatertib Lembaga 1.

Tan Sri Mohd Khairul Adib Abd 1.

Datuk Amar Jaul Samion, 1.

Dato’ Jamil Rakon, Rahman, Pengerusi 2.

Datuk Seri Panglima Sr. Hj.


Safar Untong, Timbalan Pengerusi Silih Ganti: Datuk (Datu) Rosmadi Datu Sulai 3.

Datuk Mohd Hasnol Ayub 4.

Tan Sri Dr. Lim Wee Chai 5.

Tuan Haji Adnan Mat 6.

Khalid Haji Sufat 7.

Alizakri Alias Pengerusi Pengerusi 2.

Datuk Thomas George M.S.

George, Timbalan Pengerusi 3.

Dato’ Dr. Syed Hussain Syed Husman 4.

Catherine Jikunan 5.

Alizakri Alias 2.

Datuk Seri Panglima Sr. Haji Safar Untong, Timbalan Pengerusi Silih Ganti: Datuk (Datu) Rosmadi Datu Sulai 3.
Datuk Dr. Syed Hussain Syed Husman 4.

Hadiah Leen 5.

Zainal Abidin Mohd Kassim Jawatankuasa Rayuan Tatatertib Lembaga Lembaga Perolehan Jawatankuasa Risiko Panel Pelaburan 1.

Tan Sri Ahmad Badri Mohd Zahir, 1.

Datuk Thomas George M.S.

1.

Dato’ Md Agil Mohd Natt, Pengerusi 2.

Tan Sri Mohd Khairul Adib Abd Rahman, Timbalan Pengerusi Silih Ganti: Datuk Seri Haji Suhaime Mahbar 3.

Datuk Mohd Hasnol Ayub 4.

Tan Sri Dr. Lim Wee Chai 5.

Dato’ Abdul Halim Mansor 6.

Catherine Jikunan 7.


Datuk Thomas George M.S.

George George, Pengerusi Pengerusi 2.

Datuk Dr. Ting Ding Ing (Philip), 2.

Rossana Annizah Ahmad Timbalan Pengerusi 3.

Tuan Haji Adnan Mat 4.

Catherine Jikunan 5.

Alizakri Alias Rashid 3.

Dato’ Wan Kamaruzaman Wan Ahmad 4.
Alizakri Alias 87 PENGURUSANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20207 AHLI JAWATANKUASA PENASIHAT SHARIAH Prof. Dr. Mohamad Akram Laldin | Pengerusi Prof. Madya Dr. Aznan Hasan | Timbalan Pengerusi • Pengarah Eksekutif, International Syariah Research Academy for • Profesor Madya, Institut Perbankan dan Kewangan Islam, Islamic Finance (ISRA) Universiti Islam Antarabangsa Malaysia (UIAM) • Profesor, International Centre for Education in Islamic Finance • Presiden, Persatuan Penasihat Syariah bagi Kewangan Islam (INCEIF) Malaysia • Ahli Majlis Penasihat Syariah, Bank Negara Malaysia (BNM) • Ahli Majlis Penasihat Syariah, International Islamic Financial Market (IIFM), Bahrain • Timbalan Pengerusi, Majlis Pengawasan Syariah, Labuan Financial Services Authority (FSA) • Ahli Lembaga Penasihat Syariah, Yassar Limited, United Kingdom • Ahli Penasihat Syariah, Dar Al Takaful, Dubai • Pengerusi, Maldives Monetary Authority Syariah Board, Maldives • Ahli Financial Regulation Advisory Council of Experts (FRACE), Central Bank of Nigeria • Penasihat Syariah (Individu) berdaftar dengan Suruhanjaya Sekuriti Malaysia • Timbalan Pengerusi, Majlis Penasihat Syariah, Suruhanjaya Sekuriti Malaysia • Ahli Lembaga Syariah Tertinggi, Bank Negara Abu Dhabi • Ahli Majlis Penasihat Syariah, Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), Bahrain • Ahli Lembaga Pengarah dan Pengerusi, Jawatankuasa Syariah, Kumpulan Maybank • Ahli Lembaga Penasihat Syariah, FNB Bank (South Africa) • Ahli Lembaga Penasihat
 Syariah, Global HSBC Amanah • Ahli Lembaga Penasihat Syariah, Global Standard Chartered • Ahli Lembaga Penasihat Syariah, Amanah Raya Berhad Dr. Zaharuddin Abdul Rahman | Ahli Jawatankuasa Prof. Dr Engku Rabiah Adawiah Engku Ali | Ahli Jawatankuasa Prof. Madya Dr. Kamaruzaman Noordin | Ahli Jawatankuasa • Pengasas/Pengarah Urusan, Elzar Syariah Solutions & Advisory Sdn Bhd • Pengasas/Pengarah Urusan, MyClass Technology Sdn Bhd • Professor Adjung, Fakulti Bisnes & Perakaunan, UNISZA & UNISEL • Profesor, Institut
 Perbankan dan Kewangan Islam, Universiti Islam Antarabangsa Malaysia (UIAM) • Ahli Majlis Penasihat Syariah, Bank Negara Malaysia (BNM) • Ahli Majlis Penasihat Syariah, Suruhanjaya • Ahli Lembaga Pengarah, Urban Mobility Sekuriti Malaysia • Pensyarah Kanan, Jabatan Syariah dan Pengurusan, Akademi Pengajian Islam, Universiti Malaya • Pengerusi, Jawatankuasa Penasihat Syariah, Kenanga Investment Bank Berhad (KIBB) • Pengerusi, Jawatankuasa Penasihat Asia Plc Ltd, Singapore & Malaysia • Ahli Majlis Penasihat Syariah, Labuan Syariah, Swiss Re Retakaful • Ahli Lembaga Pengarah, Universiti Sultan Zainal Abidin (Unisza) and Pengerusi, Jawatankuasa Audit & Risiko, and Jawatankuasa Kewangan & Pelaburan • Ahli Lembaga Pemegang Amanah, Yayasan Pembangunan Ekonomi Islam Malaysia (YAPIEM) dan Pengerusi, Jawatankuasa Risiko & Kelestarian YAPIEM Financial Services Authority (Labuan FSA) • Pengerusi, Panel Penasihat Syariah, • Ahli Jawatankuasa Syariah, Yayasan LIMRA Group of Companies Pembangunan Ekonomi Islam Malaysia (YAPIEM) • Ahli Lembaga, AWQAF Holdings • Ahli Majlis, Khadijah International Waqf Foundation (KIWF) • Ahli, Majlis Agama Islam Wilayah Persekutuan (MAIWP) • Ahli, Jawatankuasa Syariah MUA Life Ltd, Mauritius • Ahli, Jawatankuasa Syariah, RHB Islamic Bank • Penasihat Syariah (Individu) berdaftar dengan Suruhanjaya Sekuriti Malaysia • Pengerusi, Jawatankuasa Syariah, Exim • Ahli Majlis Pengawasan Syariah, Labuan Bank Malaysia dan ONEXOX Reinsurance (L) Ltd • Ahli
 Lembaga, Urus Harta Jemaah Sdn • Ahli Jawatankuasa Syariah, Amanah Bhd • Penasihat Syariah, Sedania Salam Capital Sdn Bhd • Ahli Majlis Fatwa Negeri Perlis • Penasihat Syariah (Individu) berdaftar dengan Suruhanjaya Sekuriti Malaysia Ikhtiar Malaysia • Penasihat Syariah (Individu) berdaftar dengan Suruhanjaya Sekuriti Malaysia 88 PENGURUSANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20207 STRUKTUR ORGANISASI LEMBAGA KWSP Jawatankuasa Pengurusan Risiko Lembaga Jawatankuasa Audit Lembaga Ketua
 Pegawai Eksekutif Jabatan Pengurusan Risiko Jabatan Audit Dalam Jabatan Integriti & Tadbir Urus Bahagian Kewangan & Perkhidmatan Bahagian Operasi Bahagian Pelaburan Bahagian Strategi Bahagian Teknologi Digital • Jabatan Kewangan • Jabatan Caruman • Jabatan Ekuiti • EPF Learning Campus • Jabatan Infrastruktur • Jabatan Pengurusan Perolehan Bekalan • Jabatan Pendaftaran & Operasi Sokongan Domestik • Jabatan Ekonomi & Digital • Jabatan Ekuiti Luar Penyelidikan • Jabatan Keselamatan • Jabatan Perkhidmatan • Jabatan Pelaburan Penguatkuasaan • Jabatan Undang- • Jabatan Pengurusan Undang Harta Negara • Jabatan Ekuiti Persendirian & Infrastruktur • Jabatan Hal Ehwal Korporat • Jabatan Pengurusan Digital • Jabatan Penyelesaian Enterpris Digital Strategi • Jabatan Penyelesaian • Jabatan Pengurusan Operasi Pengeluaran • Jabatan Transformasi Operasi & Penyelarasan • Jabatan Rangkaian • Jabatan Kuantitatif & Analitik Pelaburan • People Matters Department Teras Digital • Jabatan Operasi Pelaburan • Jabatan Pasaran Modal Perkhidmatan • Jabatan Pelaburan • Pusat Pengurusan Perhubungan Hartanah • Jabatan Pengurus Dana Luar • Jabatan Penyelidikan Ekuiti • Jabatan Perbendaharaan 89 PENGURUSANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20207 KETUA PEGAWAI EKSEKUTIF, KETUA PEGAWAI PELABURAN, KETUA PEGAWAI OPERASI, KETUA PEGAWAI STRATEGI, KETUA PEGAWAI TEKNOLOGI DIGITAL DAN KETUA PEGAWAI KEWANGAN 1 Alizakri Alias | Ketua Pegawai Eksekutif 2 Rohaya Mohammad Yusof | Ketua Pegawai Pelaburan 3 Dato’
 Mohd Naim Daruwish | Ketua Pegawai Operasi 4 Nurhisham Hussein | Ketua Pegawai Strategi 5 Muhammad Afhzal Abdul Rahman | Ketua Pegawai Teknologi Digital 6 Sazaliza Zainuddin | Ketua Pegawai Kewangan 90 PENGURUSANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20207 KETUA PEGAWAI EKSEKUTIF, KETUA PEGAWAI PELABURAN, KETUA PEGAWAI OPERASI, KETUA PEGAWAI STRATEGI, KETUA PEGAWAI TEKNOLOGI DIGITAL DAN KETUA PEGAWAI KEWANGAN 1 Alizakri Alias | Ketua Pegawai Eksekutif Beliau kembali berkhidmat di KWSP pada
 Oktober 2014 sebagai Timbalan Ketua Pegawai Eksekutif (Operasi).
Alizakri Alias merupakan Ketua Pegawai Eksekutif KWSP, jawatan yang telah disandang sejak 20 Ogos 2018.

Beliau berkelulusan Ijazah Sarjana Muda Undang-undang (LLB) dari Universiti Malaya.

Beliau menyertai KWSP pada 1 Januari 2014 sebagai Timbalan Ketua Pegawai Eksekutif (Strategi) dan bertanggungjawab untuk mengawasi dasar nasional berkaitan perlindungan sosial, serta perkembangan produk dan perkhidmatan KWSP.
Di samping itu, beliau bertanggungjawab dalam aspek strategi dan urusan korporat, modal insan, dan pembangunan bakat.

Beliau juga merupakan anggota ex-officio Lembaga KWSP dan Panel Pelaburan.

Alizakri merupakan Ahli Lembaga Pengarah Battersea Power Station Development Company Limited, Sime Darby Plantations Bhd, dan Kwasa Utama Sdn Bhd.
Beliau juga merupakan Lembaga Pengarah Astro Malaysia Holdings Bhd sejak Februari 2019, dan pernah menyandang jawatan sebagai Pengarah Lembaga Dialog Group Berhad, Naib Pengerusi Suruhanjaya Teknikal Organisasi, Pengurusan, & Inovasi dibawah Persatuan Keselamatan Sosial Antarabangsa (ISSA), dan Ketua Setiausaha Persatuan Keselamatan Sosial ASEAN (ASSA).

Sebelum menyertai KWSP, beliau merupakan Ketua Pegawai Pemasaran dan Ketua Pegawai Operasi The Iclif Leadership and Governance Centre.
Beliau juga pernah memegang jawatan sebagai Pengarah Pengurusan Strategik di Bank Negara Malaysia, Pengarah dan Ketua Strategi dan Hal Ehwal Korporat di DiGi Telecommunications Sdn Bhd, dan Naib Presiden dan Ketua Perancangan Strategik Kumpulan di Malayan Banking Bhd.

Alizakri memiliki Sarjana Pentadbiran Perniagaan (MBA) dari Cornell University, dan Sarjana Muda Undang-Undang (LLB) dari King’s College, University of London, United Kingdom.
Beliau berkelayakan sebagai peguam bela dan peguam cara di Mahkamah Malaya dan sebagai Peguam (Lincoln’s Inn) di mahkamah England dan Wales.

2 Rohaya Mohammad Yusof | Bahagian Pelaburan Rohaya Mohammad Yusof telah dilantik sebagai Ketua Pegawai Pelaburan KWSP pada Januari 2020.

4 Nurhisham Hussein | Bahagian Strategi Nurhisham Hussein telah dilantik sebagai Ketua Pegawai Strategi pada 2019.
Nurhisham terdahulu merupakan Ketua Jabatan Ekonomi dan Pasaran Modal, di mana beliau bertanggungjawab untuk mengawasi perkembangan ekonomi lebih daripada 20 negara di seluruh dunia yang menyumbang kepada proses pelaburan di KWSP.

Beliau memulakan kerjayanya dalam bidang perbankan saudagar di era 1990an, dan telah menyandang pelbagai jawatan dalam bidang ekonomi dan institusi kewangan seperti di Bank Perwira Affin, Permodalan Nasional Berhad (PNB) dan Malaysian Rating Corporation Berhad (MARC).
Nurhisham berkelulusan Ijazah Sarjana Muda (Ekonomi) dalam bidang Ekonomi Monetari daripada University of London School of Economics and Political Science (LSE), United Kingdom, dan merupakan pemegang Ijazah Sarjana Ekonomi daripada Universiti Malaya (UM).

5 Muhammad Afhzal Abdul Rahman | Bahagian Teknologi Digital Muhammad Afhzal Abdul Rahman telah dilantik sebagai Ketua Pegawai Teknologi Digital pada tahun 2019.
Beliau mengetuai Bahagian Teknologi Digital dan bertanggungjawab untuk memacu strategi teknologi digital, pelaksanaan inisiatif teknologi, dan pembangunan sistem teknologi maklumat serta operasi teknologi yang terdiri daripada 336 orang pegawai teknologi.
Sebelum menyertai KWSP, beliau mempunyai pengalaman bekerja selama 13 tahun bersama organisasi multinasional seperti Maybank, Shell, T-Systems, DHL, dan IBM dalam pelaksanaan inisiatif-inisiatif strategik teknologi yang memberi manfaat dan impak kepada organisasi.

Beliau memulakan kerjayanya di KWSP pada tahun 2008, dan telah memegang pelbagai jawatan kanan di Bahagian Pelaburan.

Beliau juga memiliki pengalaman lebih daripada 18 tahun di dalam bidang perbankan pelaburan sebelum menyertai KWSP.
Selain itu, beliau juga mempunyai pengalaman selama 22 tahun dalam pelbagai aspek pengurusan dan penggunaan teknologi merangkumi aspek strategi, transformasi digital, serta pembangunan sistem teknologi maklumat dalam sektor kewangan dan industri minyak dan gas.

Rohaya kini merupakan Pengerusi Institutional Investors Council Malaysia dan adalah salah satu Ahli Lembaga Pemegang Amanah Yayasan Khazanah.
Selain itu, beliau juga merupakan Ahli Lembaga Pengarah Malaysia Resources Corporation Berhad, Projek Lebuhraya Usahasama Berhad, United Plantations Berhad, dan Yinson Holdings Berhad.

Muhammad Afhzal merupakan pemegang Ijazah Sarjana Muda Sains (Kejuruteraan Elektrik) daripada Columbia University, New York, Amerika Syarikat.
6 Sazaliza Zainuddin | Bahagian Kewangan Dan Perkhidmatan Beliau berkelulusan Ijazah Sarjana Muda Perdagangan daripada Australia National University dan merupakan ahli bersekutu CPA Australia.

Sazaliza Zainuddin telah dilantik sebagai Ketua Pegawai Kewangan pada 3 April 2017.

3 Dato’ Mohd Naim Daruwish | Bahagian Operasi Dato’ Mohd Naim Daruwish dilantik sebagai Timbalan Ketua Pegawai Eksekutif (Operasi), kini dikenali sebagai Ketua Pegawai Operasi, pada 1 Oktober 2014.
Dato’ Mohd Naim memulakan karier sebagai Majistret di Perkhidmatan Perundangan dan Kehakiman Malaysia dari tahun 1985 hingga 1992.

Beliau mula berkhidmat di KWSP pada tahun 1992 sebagai Pengurus di Bahagian Pendakwaan/ Litigasi dan pernah memegang pelbagai jawatan termasuk Ketua Jabatan Penguatkuasaan, Ketua Jabatan Undang-undang, dan Ketua Jabatan Caruman.

Dari Disember 2011 hingga September 2014, beliau telah dipinjamkan ke Suruhanjaya Syarikat Malaysia (SSM) sebagai Ketua Pegawai Eksekutif.
Sazaliza mula berkhidmat di KWSP pada bulan Julai 2006 sebagai Ketua Akaun di Jabatan Kewangan dan telah memegang beberapa jawatan lain sebelum dinaikkan pangkat kepada Ketua Pegawai Kewangan.

Jawatan terdahulu yang dipegang termasuk Ketua Jabatan Kewangan, Ketua Jabatan Pengurusan Perolehan, dan Ketua Jabatan Audit Dalam.

Beliau juga pernah berkhidmat di PricewaterhouseCoopers sebagai Pengurus Kanan sebelum berkhidmat di KWSP.
Beliau merupakan Pengarah di Malaysia Building Society Berhad dari tahun 2017 hingga 2018 dan HSBC Amanah Takaful (Malaysia) Berhad dari tahun 2013 hingga 2017.

Sazaliza kini merupakan Ahli Lembaga bukan eksekutif MBSB Bank Berhad.

Beliau merupakan pemegang ACCA dan berkelulusan Sarjana Muda (Kepujian) Perakaunan dan Kewangan daripada South Bank University, United Kingdom.
91 PENGURUSANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20207 PENGURUSAN KANAN Pejabat KPE Pejabat KPE Alizakri Alias Dato’ Mohd Naim Daruwish | Ketua Pegawai Eksekutif | Bahagian Operasi Ketua Pegawai Eksekutif (KPE) bertanggungjawab terhadap keseluruhan operasi.

Beliau memberikan bimbingan, nasihat, termasuk kepimpinan kepada Pengurusan Kanan untuk memastikan strategi dan polisi organisasi dapat dicapai.
KPE juga menyelia pelaksanaan pelan jangka panjang dan pendek KWSP dan merupakan penghubung antara Pengurusan dan Lembaga.

Jabatan-jabatan yang melaporkan secara terus kepada KPE ialah Jabatan Pengurusan Risiko, Jabatan Audit Dalam, dan Jabatan Integriti & Tadbir Urus.

Pejabat KPE Bahagian Operasi bertanggungjawab menguruskan perkhidmatan operasi teras, terutamanya yang melibatkan ahli dan majikan, bagi memastikan penyampaian perkhidmatan dan pengalaman pelanggan yang efektif pada setiap masa.
Bahagian ini juga menyediakan khidmat nasihat kepada pelanggan dan memastikan pematuhan terhadap peraturan kawal selia.

Di samping itu, Bahagian ini juga menyediakan fungsi sokongan kepada pihak berkepentingan dalaman.
Jabatan-jabatan di bawah Bahagian Operasi ialah Jabatan Pendaftaran dan Operasi Sokongan, Jabatan Caruman, Jabatan Pengurusan Operasi Pengeluaran, Jabatan Penguatkuasaan, Jabatan Transformasi Operasi dan Penyelarasan, Jabatan Rangkaian Perkhidmatan, Pusat Pengurusan Perhubungan serta 68 pejabat cawangan di seluruh Malaysia.
Pejabat KPE Rohaya Mohammad Yusof | Bahagian Pelaburan Bahagian Pelaburan menguruskan aset bernilai RM1000.10b secara global dengan melabur di pelbagai kelas aset di sektor awam dan persendirian.

Nurhisham Hussein | Bahagian Strategi Jabatan-jabatan di bawah Bahagian ini bertanggungjawab untuk menyelidik dan menguruskan dana meliputi pelbagai kelas aset.
Jabatan- jabatan ini adalah Jabatan Ekuiti Domestik, Jabatan Ekuiti Luar Negara, Jabatan Perbendaharaan, Jabatan Pasaran Modal, Jabatan Pelaburan Hartanah, Jabatan Ekuiti Persendirian & Infrastruktur, Jabatan Pengurus Dana Luar, Jabatan Penyelidikan Ekuiti, Jabatan Kuantitatif & Analitik Pelaburan dan Jabatan Operasi Pelaburan.

Bahagian Strategi memastikan pelan pertengahan dan jangka panjang dilaksanakan di samping mengekalkan reputasi baik KWSP.
Selain itu, Bahagian ini juga turut mengurus isu-isu strategik berkaitan modal insan serta pembangunan bakat.

Jabatan-jabatan di bawah Bahagian ini ialah Jabatan Pengurusan Strategi, People Matters Department, Jabatan Hal Ehwal Korporat, EPF Learning Campus, dan Jabatan Ekonomi & Penyelidikan.
92 PENGURUSANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20207 PENGURUSAN KANAN Pejabat KPE Pejabat KPE Muhammad Afhzal Abdul Rahman Cindy Tan Ler Chin | Bahagian Teknologi Digital | Jabatan Pengurusan Risiko Bahagian Teknologi Digital menyokong perniagaan dan operasi KWSP dengan melaksanakan dan mengendalikan penyelesaian dan perkhidmatan teknologi digital yang berfokuskan pelanggan, inovatif, kukuh dan terjamin.
Jabatan-jabatan di bawah seliaan Bahagian Teknologi Digital termasuk Seksyen Penyelesaian Platform Digital, Jabatan Penyelesaian Teras Digital, Jabatan Penyelesaian Enterpris Digital, Jabatan Infrastruktur Digital, Jabatan Keselamatan Digital dan Seksyen Pengurusan Perkhidmatan Digital.

Jabatan Pengurusan Risiko bertanggungjawab menubuhkan, merumuskan dan mengesyorkan serta menguruskan Pengurusan Risiko Enterprise yang mampan.
Ini akan memastikan bahawa semua risiko-risiko utama dikenalpasti dan kawalan-kawalan yang bersesuaian diwujudkan selaras dengan pengurusan risiko yang berstrategik.

Pengurusan risiko yang diamalkan secara sofistikated dan bersepadu meliputi keseluruhan organisasi pada tahap yang melangkaui piawaian industri.
Pejabat KPE Pejabat KPE Sazaliza Zainuddin Nik Mohamed Yusoff Affendi Jaafar | Bahagian Kewangan dan Perkhidmatan | Jabatan Integriti & Tadbir Urus Bahagian Kewangan & Perkhidmatan bertanggungjawab memastikan operasi keseluruhan kewangan dan perkhidmatan dapat diselaraskan melalui penyediaan perkhidmatan yang berkesan dan efisien serta mematuhi tadbir urus yang ditetapkan.
Jabatan-jabatan di bawah bahagian ini ialah Jabatan Kewangan, Jabatan Perkhidmatan Pelaburan, Jabatan Undang-Undang, dan Jabatan Pengurusan Perolehan Bekalan.

Jabatan Integriti & Tadbir Urus bertanggungjawab memastikan operasi serta urus niaga KWSP dilaksanakan secara telus dan profesional dengan menyediakan khidmat nasihat dalam aspek integriti, tadbir urus dan antirasuah kepada Pengurusan.
Selain itu, jabatan ini turut memperkasakan integriti di KWSP dengan melaksanakan Program Outreach pendidikan dan kesedaran integriti kepada anggota dan pemegang kepentingannya.
93 PENGURUSANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20207 PENGURUSAN KANAN Pejabat KPE Pelaburan Zaini Shaari | Jabatan Audit Dalam Annie Rosle | Jabatan Ekuiti Persendirian & Infrastruktur Jabatan Audit Dalam bertindak sebagai rakan strategik kepada Jawatankuasa Audit Lembaga dan Pengurusan dalam mencapai matlamat organisasi dengan memberikan jaminan objektif serta pandangan yang bebas terhadap keberkesanan tadbir urus, pengurusan risiko, dan proses kawalan dalaman.
Jabatan ini juga membantu KWSP dalam mendorong penerapan nilai-nilai organisasi demi mencapai objektif strategik, operasi, kewangan dan pematuhan.

Jabatan Ekuiti Persendirian & Infrastruktur menilai dan melaksanakan peluang pelaburan ekuiti persendirian dan infrastruktur yang memenuhi pulangan yang disasarkan.

Jabatan ini menguruskan tiga kelas aset, iaitu Hartanah, Ekuiti Swasta dan Infrastruktur.
Pelaburan Pelaburan Ahmad Ridzuan Wan Idrus Azhar Ahmad | Jabatan Operasi Pelaburan | Jabatan Pasaran Modal Jabatan Operasi Pelaburan ialah Rakan Perniagaan Bahagian Pelaburan dalam hal-hal berkaitan perkhidmatan syariah, transformasi pelaburan, teknologi maklumat dan digital, penambahbaikan proses berterusan, dan pembangunan modal insan bagi memenuhi keperluan dan kehendak masa hadapan Bahagian Pelaburan.
Jabatan Pasaran Modal bertanggungjawab untuk menguruskan mandat pendapatan tetap bagi pasaran domestik dan global yang merangkumi langganan serta urusniaga Sekuriti Hutang Persendirian (PDS) dan penyertaan di dalam cadangan Pinjaman / Pembiayaan.

Jabatan ini menyediakan pelbagai pilihan penyelesaian yang komprehensif serta menyeluruh bersesuaian dengan keperluan Pasaran Modal, disamping mengoptimakan pulangan dan memelihara modal melalui diversifikasi di dalam pelbagai spektrum kredit.
94 PENGURUSANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20207 PENGURUSAN KANAN Pelaburan Pelaburan Azizul Zainol Fariza Ali @ Taib | Jabatan Perbendaharaan | Jabatan Pengurus Dana Luar Jabatan Perbendaharaan bertanggungjawab untuk menguruskan kelas aset tunai dan portfolio pelaburan pendapatan tetap (Kerajaan dan seantaranya).
Jabatan ini juga menguruskan keperluan pertukaran matawang asing KWSP dan melaksanakan dasar lindung nilai untuk melindungi risiko pertukaran matawang asing dan risiko kadar faedah.

Jabatan Pengurus Dana Luar bertanggungjawab mengawasi pengurus dana luar berdasarkan amalan terbaik industri bagi mengoptimumkan pulangan pelaburan dalam kawalan risiko yang berpatutan melalui kepelbagaian pelaburan dengan melantik pengurus dana terbaik dalam kelas aset yang berkenaan di pasaran domestik dan global.
Pelaburan Pelaburan Badrul Hisham Dahalan Lim Tze Seong | Jabatan Kuantitatif & Analitik Pelaburan | Jabatan Ekuiti Luar Negara Jabatan Kuantitatif & Analitik Pelaburan bertanggungjawab dalam strategi pelaburan perusahaan dan analisis pelaburan termasuk Peruntukan Aset Strategik, Peruntukan Aset Taktikal (TAA) dan penganggaran pelaburan untuk memastikan pulangan pelaburan dioptimumkan dalam tahap risiko tertentu serta sesuai dengan objektif pelaburan KWSP.
Jabatan Ekuiti Antarabangsa menguruskan pelaburan ekuiti antarabangsa dengan berhemah dan mengoptimumkan pulangan pelaburan ekuiti yang dibentuk dalam Peruntukan Aset Strategik KWSP.

Tujuan strategik jabatan ini adalah menjadi pengurus pelaburan ekuiti global terkemuka dalam industri pencen sambil memenuhi keperluan pihak berkepentingan.
Jabatan ini juga mengawasi pengawasan Institusi Pengurusan Dana di bawah Skim Pelaburan Anggota (MIS) untuk memastikan pelaburan anggota di bawah skim tersebut dilindungi.

95 PENGURUSANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20207 PENGURUSAN KANAN Pelaburan Pelaburan Mohamad Hafiz Kassim Zalinah A Hamid | Jabatan Pelaburan Hartanah | Jabatan Ekuiti Domestik Jabatan Pelaburan Harta menguruskan portfolio Hartanah domestik dan antarabangsa.
Peranan jabatan merangkumi pembelian, pengurusan aset, pelupusan dan pengoptimuman portfolio.

Kemahiran dalaman dan luaran digunakan untuk memastikan KWSP membuat pelaburan yang bertanggungjawab dengan profil ganjaran risiko yang seimbang.
Jabatan Ekuiti Domestik bertanggungjawab untuk melabur dan mengurus portfolio ekuiti domestik berdasarkan peruntukan aset dan mandat pelaburan yang diluluskan secara berhemah, telus dan profesional sambil mengoptimumkan pulangan pelaburan mengikut risiko yang dibenarkan.
Pelaburan Operasi Nor Azam Yahya | Jabatan Penyelidikan Ekuiti C. Baharudin Wahab | Jabatan Caruman Jabatan Penyelidikan Ekuiti menganalisa dan menilai syarikat-syarikat tersenarai awam yang dilaburkan oleh KWSP dan menjalankan pengawasan ESG ke atas syarikat- syarikat tersebut.

Jabatan Caruman bertanggungjawab dalam menyediakan pelbagai saluran bayaran untuk majikan meresitkan caruman kepada pekerja mereka dengan mudah di mana sahaja dan pada bila-bila masa.
Caruman yang diterima diresit dan dikreditkan dalam akaun ahli secara efisien dan efektif.

Jabatan ini turut bertanggungjawab mengurus, menyelenggara dan mengemaskini akaun majikan dan ahli dengan teratur dalam masa yang ditetapkan.
96 PENGURUSANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20207 PENGURUSAN KANAN Operasi Operasi Dato’ Khalid Haron Majidah Yahya | Jabatan Pengurusan Operasi Pengeluaran | Jabatan Pendaftaran & Operasi Sokongan Jabatan Pengurusan Operasi Pengeluaran bertanggungjawab menyediakan dasar, operasi manual, arahan kerja dan garis panduan untuk semua jenis skim pengeluaran selari dengan polisi dan peruntukan Akta KWSP dan melaksanakan penambah baikan yang berterusan supaya semua permohonan pengeluaran akan diproses dengan cara yang lebih tepat, cepat dan cekap.
Jabatan ini juga bertanggungjawab untuk mengawasi keberkesan dan kecekapan prestasi operasi pengeluaran.

Jabatan Pendaftaran & Operasi Sokongan bertanggungjawab dalam memastikan semua urusan berkaitan pendaftaran ahli, majikan dan penamaan ahli mematuhi garis panduan dan peraturan yang ditetapkan.

Jabatan ini juga bertanggungjawab untuk menguruskan dokumen dan data majikan serta ahli bagi memastikan ianya tepat, berintegriti dan disimpan dengan selamat.
Selain itu, jabatan ini juga memberi khidmat sokongan kepada jabatan-jabatan KWSP di Hub (Operasi) dalam urusan pentadbiran dan kewangan.

Operasi Operasi Hardial Singh A/L Mitt Singh Mohd Rodzi Abu Bakar | Jabatan Penguatkuasaan | Jabatan Rangkaian Perkhidmatan Jabatan Penguatkuasaan bertanggungjawab melindungi kepentingan pekerja berdasarkan Akta KWSP 1991 dengan memastikan majikan membayar caruman KWSP dengan tepat dan teratur.
Di samping itu, Jabatan ini juga bertanggungjawab memberi khidmat nasihat yang menyeluruh kepada majikan berhubung pematuhan undang- undang dan produk-produk KWSP.

Jabatan Rangkaian Perkhidmatan bertanggungjawab untuk memberikan sokongan serta mengawasi keberkesanan dan kecekapan perkhidmatan KWSP menerusi semua saluran perkhidmatan seperti Saluran Elektronik, Khidmat Nasihat Ahli, Kaunter Perkhidmatan, Mobile Team, dan Pengurusan Operasi Cawangan.
Objektif strategik Jabatan ini adalah untuk memberikan pengalaman pelanggan dan digital yang terbaik kepada ahli.
97 PENGURUSANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20207 PENGURUSAN KANAN Operasi Operasi Norizah Hassalli Tamilwanan A/L Palaniappan | Pusat Pengurusan Perhubungan | Jabatan Pengurusan Harta Pusat Pengurusan Perhubungan menguruskan semua medium saluran komunikasi KWSP, bagi memastikan pengurusan perhubungan pelanggan KWSP berada di tahap yang cemerlang melalui pemantauan berkala tahap indeks kepuasan dan pengalaman pelanggan KWSP.
Jabatan Pengurusan Harta menyediakan ruang kerja dan awam yang kondusif dan selamat bagi anggota dan pelanggan KWSP.

Dalam menyediakan perkhidmatan ini, Jabatan ini memastikan semua peraturan pihak berkuasa tempatan berkaitan dipatuhi.
Operasi Kewangan & Perkhidmatan Ong Hock Chye Noorhaslin Mohd Baseri | Jabatan Transformasi Operasi & Penyelarasan | Jabatan Perkhidmatan Pelaburan Jabatan Transformasi Operasi & Penyelarasan bertanggungjawab melaksanakan kajian, penambahbaikan berterusan dan perubahan radikal untuk mentransformasikan proses operasi bagi memenuhi keperluan masa hadapan dalam persekitaran yang dinamik dan kompleks.
Jabatan ini juga membantu menyelaras proses operasi dan memacu pelbagai inisiatif untuk menyemai budaya kualiti dan inovatif di kalangan anggota KWSP.

Jabatan Perkhidmatan Pelaburan memastikan pematuhan polisi dan garis panduan dalaman yang berkaitan dengan pelaburan serta undang-undang dan penguatkuasaan relevan yang mentadbir pelaburan domestik dan luar negara KWSP.
Ia bertanggungjawab untuk menyelesaikan segala transaksi pelaburan berpandukan kelaziman pasaran dan memastikan semua rekod perakaunan dan laporan berkenaan mematuhi polisi yang digunapakai oleh KWSP.

Ia juga bertanggungjawab ke atas Chinese Wall Policy dan Data Governance untuk KWSP.
98 PENGURUSANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20207 PENGURUSAN KANAN Kewangan & Perkhidmatan Kewangan & Perkhidmatan Nor Azian Mohd Noor | Jabatan Kewangan Zalikar Yusoff | Jabatan Pengurusan Perolehan Bekalan Jabatan Kewangan mengurus dan mengawal fungsi kewangan KWSP antaranya termasuk hal ehwal bajet, bayaran, cukai dan pelaporan kewangan.

Jabatan ini juga memberi khidmat nasihat mengenai perakaunan, percukaian, pengurusan kos dan polisi kewangan.
Jabatan Pengurusan Perolehan Bekalan bertanggungjawab untuk menguruskan perolehan barangan dan perkhidmatan mengikut Polisi Perolehan KWSP.

Ia juga bertanggungjawab untuk memastikan proses perolehan yang cekap, beretika dan mematuhi tadbir urus korporat yang baik bagi mendapatkan nilai terbaik wang semasa.
Kewangan & Perkhidmatan Strategi Zaidatul Mazwin Idrus Balqais Yusoff | Jabatan Undang - Undang | Jabatan Pengurusan Strategi Jabatan Undang-Undang berperanan sebagai penasihat undang-undang kepada organisasi, memberikan perkhidmatan sekretariat kepada Ahli Lembaga dan Panel Pelaburan KWSP serta bertanggungjawab mengambil tindakan undang-undang terhadap majikan dan mana- mana pihak yang tidak mematuhi peruntukan Akta KWSP 1991 dan undang-undang subsidiarinya.
Jabatan Pengurusan Strategi bertanggungjawab dalam menggariskan hala tuju organisasi serta memastikan strategi korporat direalisasikan mengikut pelan tindakan yang kukuh.

Ia juga menguruskan hubungan dengan pihak berkepentingan dalam memacu penggubalan dasar serta menambah baik produk dan perkhidmatan bagi memastikan KWSP kekal relevan di samping meningkatkan kesejahteraan dan membantu ahli mencapai masa depan yang lebih baik.
99 PENGURUSANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20207 PENGURUSAN KANAN Strategi Strategi Mohamad Fahmi Abdul Rahim Raja Zafura Raja Zain | People Matters Department | Jabatan Hal Ehwal Korporat People Matters Department memacu sasaran perniagaan melalui pelaksanaan inisiatif-inisiatif yang berkaitan dengan modal insan dan kerja-kerja transaksi yang menyokong kitaran pengurusan bakat.

Melalui kolaborasi bersama pihak berkaitan, rancangan strategik jabatan ini mengambil kira aspek kesejahteraan di KWSP.
Jabatan ini juga komited dalam memperkasakan modal insan supaya dapat memberi nilai mampan kepada KWSP.

Jabatan Hal Ehwal Korporat bertanggungjawab untuk menguruskan reputasi organisasi melalui komunikasi dalaman, pemasaran dan strategi dengan matlamat utama untuk memantapkan peranan KWSP sebagai organisasi perlindungan sosial.
Strategi Strategi Nurhisham Hussein Suhaizam Ismail | Jabatan Ekonomi & Penyelidikan | EPF Learning Campus Jabatan Ekonomi & Penyelidikan memantau perkembangan ekonomi di negara-negara di mana KWSP melakukan aktiviti pelaburan.

Ini akan memberi gambaran mengenai perumusan strategi pelaburan dan peruntukan portfolio dengan mengambil kira faktor risiko pasaran.

EPF Learning Campus (ELC) bertanggungjawab merangka strategi pembelajaran dan memacu pelan pembelajaran, objektif, dan polisi latihan korporat.
Sebagai peneraju pembelajaran untuk KWSP, ELC menawarkan program pembangunan pembelajaran berstruktur dan pendidikan keselamatan sosial memfokuskan kepada kompetensi masa depan melalui penyelesaian pembelajaran yang komprehensif termasuk penyelidikan, perundingan, pembangunan dan perlaksanaan.
100 PENGURUSANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20207 PENGURUSAN KANAN Teknologi Digital Teknologi Digital Jasmine Goh Wan Chen Rosziata Mohamad | Jabatan Keselamatan Digital | Jabatan Penyelesaian Teras Digital Jabatan Keselamatan Digital bertangungjawab untuk melindungi kerahsiaan, integriti dan maklumat kritikal dan aset KWSP.
Jabatan ini juga membangunkan dan menguatkuasakan dasar dan prosedur keselamatan digital berdasarkan piawaian industri, amalan terbaik, dan garis panduan peraturan yang relevan.

Jabatan Penyelesaian Teras Digital bertanggungjawab membangunkan, melaksanakan dan mengendalikan penyelesaian teknologi ke atas sistem teras dana simpanan KWSP.
Ini membolehkan KWSP melaksanakan mandat keselamatan sosial dalam memberikan perlindungan keselamatan sosial yang mencukupi, liputan yang lebih baik, perkhidmatan pelanggan yang cekap serta pengutipan caruman yang tepat pada masanya.
Teknologi Digital Teknologi Digital Ravi Kumar A/L T. Wickniswasarajah Wu Tze Chyi @ Eva Wu | Jabatan Infrastruktur Digital | Jabatan Penyelesaian Enterpris Digital Jabatan Infrastruktur Digital bertanggungjawab untuk membangunkan, melaksanakan dan mengendalikan infrastruktur teknologi untuk menyokong sistem serta operasi digital KWSP.
Jabatan ini menyediakan infrastruktur digital yang kukuh, berdaya tahan, selamat dan mempunyai kebolehpulihan yang mematuhi piawaian dan peraturan seni bina terknikal KWSP untuk memenuhi kapasiti dan prestasi teknologi maklumat yang diperlukan oleh operasi KWSP.
Jabatan Penyelesaian Enterpris Digital bertanggungjawab membangunkan, melaksanakan dan mengendalikan penyelesaian teknologi bagi keseluruhan organisasi KWSP yang menyokong keperluan maklumat korporat, operasi, pengurusan serta keperluan pelaburan di samping penyelesaian kolaborasi dan produktiviti.
101 PENGURUSANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20207 BAHAGIAN PELABURAN Rohaya Mohammad Yusof | Ketua Pegawai Pelaburan Mengimbas kembali tahun 2020, perkataan yang paling tepat untuk menggambarkannya ialah VUCA – tidak stabil (volatile), tidak menentu (uncertain), kompleks (complex), dan tidak jelas (ambiguous).
Sebelum berlakunya penularan pandemik, peningkatan risiko geopolitik dalam persekitaran ketegangan perdagangan dan kebangkitan kerajaan populis telah pun memberi kesan kepada ekonomi di seluruh dunia.

Kemunculan COVID-19 selepas itu telah mengejutkan hampir semua pihak.

Pandemik ini telah menyebabkan para pelabur menjauhkan diri daripada pasaran saham yang dibayangi kebimbangan akan kesan penularan virus terhadap perniagaan dan ekonomi.
Berikutan pergerakan yang terhad dan sekatan aktiviti ekonomi, kehidupan ahli KWSP, dan rakyat Malaysia amnya, telah terjejas dengan teruk.

Tindakan KWSP untuk membenarkan ahli mengakses simpanan persaraan dan menangguhkan pembayaran caruman syer pekerja membantu mereka bertahan dalam tempoh pandemik, namun pada masa yang sama memberi kesan kepada aliran tunai KWSP.
Untuk memastikan kecairan dana yang kukuh dan berdaya tahan, KWSP telah mengaktifkan pelan pengurusan kecairan yang melibatkan pengimbangan semula portfolio-portfolio pelaburan.

Di samping itu, pandemik tersebut juga telah pantas mengubah cara bekerja dalam suasana norma baharu apabila kebanyakan individu mula bekerja dari rumah.

Walaupun berdepan dengan persekitaran yang tidak terjangka dan didorong oleh komitmen yang teguh untuk memenuhi matlamat organisasi, KWSP berjaya mencapai prestasi yang kukuh.
KWSP telah mengisytiharkan kadar dividen Simpanan Konvensional sebanyak 5.20% dan Simpanan Shariah sebanyak 4.90%, yang mana kedua-duanya melebihi kadar minimum 2.50%, seperti yang dimandatkan oleh Akta KWSP 1991.

Kadar dividen sebenar bagi purata tiga tahun berturut-turut untuk Simpanan Konvensional ialah sebanyak 5.43 %, iaitu 3.43% melebihi sasaran purata tiga tahun 2.00%.
Kadar dividen sebenar bagi purata tiga tahun berturut-turut untuk Simpanan Shariah ialah sebanyak 5.10%, yang juga lebih tinggi daripada sasaran 2.00%.
Objektif Pelaburan • Untuk melindungi dan menambah nilai simpanan ahli • Untuk memastikan pulangan yang stabil dan konsisten untuk jangka panjang berdasarkan had toleransi risiko Sasaran Strategik Pelaburan • Mengisyhtiharkan sekurang-kurangnya 2.50% dividen nominal tahunan • Mengisyhtiharkan sekurang-kurangnya 2% dividen sebenar (dilaraskan untuk inflasi) bagi purata tiga tahun berturut-turut 102 ULASAN BAHAGIANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20208 BAHAGIAN PELABURAN SOROTAN PELABURAN ALOKASI ASET STRATEGIK Tema utama untuk tahun 2020 bertumpu pada penularan COVID-19 yang telah memberi kesan terhadap kehidupan masyarakat global.
Langkah-langkah sekatan pergerakan dan pembendungan yang dilaksanakan di seluruh dunia, walaupun merupakan satu keperluan, telah menimbulkan kesan buruk kepada kegiatan ekonomi dan menyebabkan gangguan besar.

Tahun ini juga telah menyaksikan kejatuhan harga minyak yang belum pernah terjadi sebelumnya kerana permintaan di seluruh dunia telah jatuh dengan mendadak disebabkan pandemik.
Selain daripada itu, Amerika Syarikat (AS) mencuri tumpuan apabila pasaran kewangan global menantikan keputusan pilihan raya presiden mereka yang ke-59.

Tahun 2020 telah dibayangi dengan ketidakpastian dan ketidakstabilan pasaran yang ketara.

Pandemik COVID-19 telah menyebabkan aliran keluar modal yang besar daripada pasaran kewangan, penurunan permintaan, dan perdagangan global yang ketara, serta telah melemahkan sentimen dan aktiviti perniagaan.
Kerajaan dan bank pusat di seluruh dunia terpaksa campur tangan dengan memberikan bantuan yang diperlukan dan menampung pemulihan semula ekonomi.

Rizab Persekutuan AS telah mengurangkan kadar faedah hampir kepada sifar dan melancarkan program pelonggaran kuantitatif besar-besaran, sementara Bank Pusat Eropah telah memperkenalkan program pembelian kecemasan pandemik sebagai langkah dasar monetari tidak standard untuk mengurangkan risiko yang berpunca daripada pandemik.
Di Malaysia pula, Bank Negara Malaysia telah menurunkan Kadar Dasar Semalaman (OPR) sebanyak 125 mata asas terkumpul kepada 1.75% dalam beberapa siri penurunan kadar sepanjang tahun 2020.

Suku pertama tahun 2020 menyaksikan pasaran ekuiti domestik dan global menjunam dengan ketara.

Semua indeks ekuiti utama yang dipantau oleh KWSP mencatatkan penurunan dua digit berbanding dengan paras indeks tahun sebelumnya.
Namun, tindakan pelonggaran sekatan pergerakan, pelaksanaan dasar monetari longgar yang berterusan dan petunjuk awal pemulihan telah mendorong peningkatan semula indeks FBM KLCI dan pasaran ekuiti global.

Pasaran bon, yang juga mengalami turun naik yang tinggi, telah memberikan peluang diversifikasi sepanjang tempoh ini.

Dasar monetari yang longgar di seluruh dunia secara amnya memberikan pulangan positif untuk pasaran bon pada tahun 2020.
Alokasi Aset Strategik (SAA) KWSP ialah rangka kerja yang bertujuan untuk mengoptimumkan pulangan pelaburan jangka panjang dalam had risiko toleransi yang ditetapkan.

SAA ini dikaji semula setiap tiga tahun bagi mengambil kira keadaan pasaran semasa, perubahan dalam keperluan kawal selia, polisi perakaunan, dan kekangan pelaburan.

Di bawah SAA, setiap kelas aset berperanan untuk memastikan KWSP mencapai objektif pelaburannya.
Instrumen Pendapatan Tetap menambah nilai pulangan untuk portfolio dan memelihara simpanan ahli dengan menyediakan aliran pendapatan yang stabil melalui bayaran faedah.

Ekuiti pula meningkatkan pulangan portfolio dengan menambah nilai simpanan ahli dengan pulangan yang melebihi kadar inflasi.

Aset Hartanah dan Infrastruktur berfungsi sebagai instrumen lindung nilai terhadap inflasi melalui pendapatan sewa dan penambahan nilai modal.
Alokasi kepada Instrumen Pasaran Wang adalah bagi memenuhi operasi harian KWSP termasuk pelaburan, pengeluaran simpanan ahli, dan perbelanjaan operasi.

Pada tahun 2019, SAA telahpun dikaji semula untuk tempoh berkuat kuasa tahun 2020 hingga tahun 2022.

Namun, berikutan penularan pandemik, KWSP telah memutuskan untuk mengkaji semula strategi pelaburannya dan mempertimbangkan perubahan keadaan pasaran yang ketara.
Rangka kerja yang telah dikaji semula ini akan memastikan bahawa objektif KWSP untuk terus memelihara dan meningkatkan simpanan ahli tercapai selaras dengan visi KWSP untuk membantu ahli mencapai masa depan yang lebih baik.

SOROTAN PRESTASI PELABURAN Pada tahun 2020, KWSP telah mencatatkan pendapatan pelaburan kasar sebanyak RM63.45 bilion, meningkat 24.65% daripada RM50.90 bilion yang dicatatkan pada tahun 2019 walaupun berdepan dengan cabaran- cabaran akibat pandemik COVID-19 dan ketidaktentuan global.
Instrumen Pendapatan Tetap menjadi asas kepada kestabilan portfolio dalam persekitaran yang tidak menentu pada tahun 2020, melalui peningkatan pendapatan daripada keuntungan modal yang ketara disebabkan oleh kadar hasil pasaran yang lebih rendah.

Keadaan ini telah membuka peluang kepada KWSP untuk meraih keuntungan.
Portfolio Pendapatan Tetap mengurangkan impak daripada prestasi portfolio Ekuiti 103 ULASAN BAHAGIANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20208 BAHAGIAN PELABURAN Pendapatan pelaburan kasar sebanyak RM63.45 bilion, meningkat 24.65% daripada RM50.90 bilion yang dicatatkan pada tahun 2019 yang terkesan oleh ketidakpastian akibat COVID-19, manakala portfolio Hartanah dan Infrastruktur pula terus menghasilkan pendapatan dividen yang stabil.
Pendapatan pelaburan kasar sebanyak RM63.45 bilion yang dijana untuk tahun ini merupakan kadar pulangan atas pelaburan (ROI) sebanyak 6.13%, lebih tinggi daripada 5.71% yang dicatatkan pada tahun 2019.

Prestasi KWSP tetap membanggakan walaupun beroperasi dalam persekitaran pasaran yang mencabar, dengan menghasilkan ROI tahunan selama tiga tahun sebanyak 6.14% untuk tempoh 2018 – 2020.
Kadar pulangan atas pelaburan (ROI) sebanyak 6.13%, lebih tinggi daripada 5.71% yang dicatatkan pada tahun 2019 Daripada jumlah pendapatan pelaburan kasar, sejumlah RM40.62 bilion atau 64.02% diperuntukkan untuk portfolio konvensional dan sejumlah RM22.83 bilion untuk portfolio syariah.

Daripada peruntukan portfolio syariah, kira-kira satu perempat atau RM6.15 bilion disalurkan secara khusus kepada Simpanan Shariah dan selebihnya kepada Simpanan Konvensional.
Jumlah pembayaran dividen untuk tahun 2020 ialah RM47.64 bilion Sebagai sebahagian daripada strategi diversifikasi, KWSP meningkatkan pelaburan dalam aset global secara berterusan sejak beberapa tahun yang lalu, dan kini memiliki aset di lebih 40 buah negara dan dalam 28 mata wang.

Ini membolehkan KWSP untuk mencapai keuntungan yang besar daripada pasaran dan kelas aset yang berbeza serta memudahkan KWSP untuk meningkatkan prestasi pelaburan secara keseluruhannya.
Pegangan luar negara mewakili sebanyak 35.14% daripada jumlah aset KWSP pada 31 Disember 2020 dan menyumbang sebanyak 49.80% kepada pendapatan pelaburan kasar KWSP.

ROI yang dicatatkan untuk pelaburan luar negara ialah sebanyak 8.64% manakala ROI untuk pelaburan domestik ialah sebanyak 5.02% pada tahun 2020.

Terdapat rosot nilai bersih ke atas aset kewangan berjumlah RM635.93 juta untuk tahun ini, peningkatan sebanyak RM547.15 juta daripada RM88.78 juta pada tahun 2019.
Selaras dengan piawaian perakaunan MFRS 9, instrumen ekuiti dikelaskan sebagai nilai saksama melalui pendapatan komprehensif yang lain (FVOCI) tidak mengalami rosot nilai.

Walau bagaimanapun, untuk memastikan kelangsungan portfolio untuk jangka panjang dan mengambil pendekatan berhemat, KWSP memperakui turun nilai kos sebanyak RM7.71 bilion, iaitu RM6.56 bilion lebih tinggi berbanding turun nilai kos RM1.15 bilion untuk ekuiti tersenarai pada tahun 2019.
Keadaan ini berpunca terutamanya daripada pandemik COVID-19 dan ketidakpastian global, yang secara langsung telah mengakibatkan peningkatan rosot nilai dan turun nilai kos yang diperakui untuk tahun ini.
Setelah mengambil kira rosot nilai bersih aset kewangan, turun nilai kos ekuiti tersenarai, keuntungan atau kerugian yang belum direalisasikan daripada urus niaga antara syarikat, perbelanjaan pelaburan, perbelanjaan operasi, caj statutori, serta dividen pengeluaran, jumlah pembayaran dividen untuk tahun 2020 ialah RM47.64 bilion, yang mana sejumlah RM42.88 bilion adalah untuk Simpanan Konvensional dengan kadar dividen sebanyak 5.20% dan sejumlah RM4.76 bilion untuk Simpanan Shariah dengan kadar dividen sebanyak 4.90%.
Walaupun berdepan dengan cabaran di peringkat domestik, jumlah agihan dividen KWSP terus meningkat dan ini sejajar dengan pertumbuhan simpanan ahli.

Jumlah agihan yang diperlukan untuk setiap 1.00% dividen pada tahun 2020 untuk Simpanan Konvensional ialah sebanyak RM8.25 bilion, berbanding dengan RM7.65 bilion pada tahun 2019.

Bagi Simpanan Shariah, jumlah agihan yang diperlukan untuk setiap 1.00% dividen pada tahun 2020 ialah sebanyak RM0.97 bilion, berbanding dengan RM0.83 bilion pada tahun 2019.
Bagi tiga tahun berturut-turut, kadar dividen sebenar untuk Simpanan Konvensional ialah sebanyak 5.43%, iaitu 3.43% melebihi sasaran purata tiga tahun berturut-turut pada 2.00%.

Secara nominal, kadar dividen yang diisytiharkan untuk Simpanan Konvensional 104 ULASAN BAHAGIANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20208 BAHAGIAN PELABURAN ialah 2.70%, melebihi kadar dividen nominal tahunan iaitu sekurang-kurangnya 2.50%, seperti yang dimandatkan di bawah Akta KWSP 1991.
Bagi Simpanan Shariah, kadar dividen sebenar bagi purata tiga tahun berturut-turut ialah sebanyak 5.10%, lebih tinggi daripada sasaran 2.00%.

Setakat 31 Disember 2020, jumlah aset pelaburan berjumlah RM1,000.10 bilion.

Daripada jumlah tersebut, 45.96% adalah dalam Instrumen Pendapatan Tetap bagi tujuan pemeliharaan modal.

Pendedahan kepada Ekuiti ialah sebanyak 41.93%, Instrumen Pasaran Wang sebanyak 6.60%, manakala Hartanah dan Infrastruktur sebanyak 5.51% (rujuk Carta 1).
Carta 1: Aset Pelaburan pada 31 Disember 2020 45.96% 41.93% SEKURITI KERAJAAN MALAYSIA DAN BON SAMA TARAF Pelaburan KWSP dalam Sekuriti Kerajaan Malaysia dan Bon Sama Taraf, yang merupakan sebahagian daripada portfolio Instrumen Pendapatan Tetap, terus menghasilkan pulangan yang stabil dalam persekitaran yang tidak menentu.

Secara keseluruhan, kelas aset ini menyumbang sebanyak 19.73% kepada pendapatan pelaburan kasar yang berjumlah RM63.45 bilion pada tahun ini.
Setakat 31 Disember 2020, pegangan KWSP dalam Sekuriti Kerajaan Malaysia dan Bon Sama Taraf berjumlah RM245.62 bilion, iaitu 3.11% lebih rendah daripada pegangan pada tahun 2019.

Kelas aset ini mewakili 24.56% daripada jumlah pelaburan KWSP, 3.11% lebih rendah berbanding dengan tahun 2019.

Walau bagaimanapun, Sekuriti Kerajaan Malaysia dan Bon Sama Taraf mencatatkan pendapatan pelaburan kasar sebanyak RM12.52 bilion, iaitu RM1.48 bilion atau 13.45% lebih tinggi daripada yang dicatatkan pada tahun 2019.
ROI dicatatkan pada 5.14%, 56 mata asas lebih tinggi daripada ROI tahun sebelumnya iaitu pada 4.59%.

6.60% 5.51% Instrumen Pendapatan Tetap Ekuiti Instrumen Pasaran Wang Hartanah dan Infrastruktur Peningkatan dalam ROI berlaku kerana KWSP telah mengambil peluang untuk merealisasikan lebih banyak keuntungan modal daripada penilaian yang lebih tinggi ketika berlakunya penurunan kepada kadar hasil.
PINJAMAN DAN BON Daripada jumlah pelaburan, sebanyak 59.70% mewakli portfolio konvensional sementara bakinya mewakili portfolio syariah (rujuk Carta 2).

Pegangan KWSP dalam Pinjaman dan Bon, yang terdiri daripada pelaburan domestik dan global berjumlah RM214.04 bilion, meningkat 6.67% daripada RM200.65 bilion pada tahun 2019.
Carta 2: Aset Pelaburan pada 31 Disember 2020 59.70% 40.30% Portfolio Syariah Portfolio Konvensional Pinjaman dan Bon menyumbang sebanyak RM12.90 bilion kepada pendapatan pelaburan kasar pada tahun 2020, meningkat sebanyak 21.01% berbanding dengan tahun sebelumnya.

Persekitaran kadar faedah dan hasil yang rendah telah membuka peluang untuk KWSP memanfaatkan keuntungan, dan ini menyumbang kepada peningkatan pendapatan untuk tahun ini.

Kadar ROI meningkat sedikit kepada 5.58% daripada 5.55% pada tahun 2019.
Perbezaan kadar pulangan berbanding dengan Sekuriti Kerajaan Malaysia dan Bon Sama Taraf kekal baik, dengan perbezaan kadar pulangan ROI sebanyak 0.44% pada tahun 2020.
105 ULASAN BAHAGIANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20208 BAHAGIAN PELABURAN Ekuiti tersenarai dan persendirian dalam pasaran domestik dan global, meningkat sebanyak RM58.86 bilion atau 16.33% Sejumlah RM66.01 bilion atau 6.60% aset pelaburan KWSP dilaburkan dalam Instrumen Pasaran Wang 106 EKUITI Portfolio ekuiti, yang terdiri daripada ekuiti tersenarai dan persendirian dalam pasaran domestik dan global, meningkat sebanyak RM58.86 bilion atau 16.33% kepada RM419.31 bilion pada Disember 2020 berbanding dengan tahun sebelumnya.
Pertumbuhan aset ini adalah selari dengan kenaikan pegangan ekuiti luar negara serta pergerakan mata wang asing berbanding dengan Ringgit Malaysia.

Ekuiti menyumbang 41.93% daripada jumlah aset KWSP dan kekal sebagai penyumbang utama kepada pendapatan pelaburan kasar pada RM30.45 bilion, bersamaan dengan 48.00% daripada jumlah pendapatan kasar.
Pendapatan yang dijana ialah 30.58% lebih tinggi daripada RM23.32 bilion yang dicatatkan pada tahun 2019, hasil daripada pengurusan aktif dan mengambil manfaat daripada turun naik pasaran yang disebabkan oleh pandemik.

Kadar ROI bagi ekuiti ialah 7.76% pada tahun 2020, iaitu 67 mata asas lebih tinggi berbanding 7.08% pada tahun sebelumnya, yang telah menyumbang kepada peningkatan dalam pulangan pelaburan keseluruhan KWSP.
Ekuiti akan terus memainkan peranan penting dalam meningkatkan pulangan keseluruhan portfolio dan meningkatkan prestasi pelaburan KWSP.

INSTRUMEN PASARAN WANG Bagi mencapai pulangan yang optimum, kami menyasarkan keseimbangan antara mengekalkan aliran tunai yang sihat untuk memenuhi pengeluaran ahli, perbelanjaan pentadbiran dan penggunaan pelaburan, dengan mencapai pegangan yang minimum bagi kelas aset ini.
Setakat 31 Disember 2020, sejumlah RM66.01 bilion atau 6.60% aset pelaburan KWSP dilaburkan dalam Instrumen Pasaran Wang, yang berjumlah RM3.21 bilion atau 5.12% lebih tinggi berbanding tahun sebelumnya.

Peningkatan ini adalah untuk memudahkan pengeluaran di bawah skim pengeluaran baharu KWSP yang bertujuan untuk mengurangkan beban kewangan ahli yang terkesan oleh pandemik COVID-19.

Kelas aset ini mencatatkan pendapatan pelaburan kasar berjumlah RM1.19 bilion, bersamaan dengan ROI sebanyak 2.07%.
HARTANAH DAN INFRASTRUKTUR Strategi jangka panjang dan pandangan jauh KWSP adalah untuk terus meningkatkan pendedahan kepada pelaburan dalam Hartanah dan Infrastruktur.

Sebahagian besar pelaburan KWSP dalam kelas aset ini dibuat melalui syarikat bersekutu dan anak syarikat, dan pendapatan dividen yang diterima daripada syarikat-syarikat tersebut merupakan penyumbang utama kepada pendapatan pelaburan kasar.
Pada tahun ini, Hartanah dan Infrastruktur mencatatkan pertumbuhan sebanyak 16.38% kepada RM55.12 bilion, atau RM7.76 bilion lebih tinggi daripada RM47.36 bilion yang dicatatkan pada tahun sebelumnya.

Pendapatan pelaburan kasar pada tahun 2020 untuk kelas aset ini meningkat sebanyak 61.83% kepada RM6.38 bilion berbanding dengan RM3.94 bilion pada tahun 2019, didorong oleh peningkatan pada penilaian aset-aset di dalam portfolio ini.
Pencapaian ini bersamaan dengan ROI sebanyak 5.84% untuk tahun 2020, iaitu 95 mata asas lebih tinggi daripada 4.89% yang dicatatkan pada tahun 2019, yang merupakan pulangan premium melebihi pelaburan berpendapatan tetap dan berfungsi sebagai pelindung nilai terhadap inflasi melalui pembayaran sewa, pemeliharaan modal, dan peningkatan nilai aset.
ULASAN BAHAGIANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20208 BAHAGIAN PELABURAN SKIM PELABURAN AHLI PELABURAN LESTARI Skim Pelaburan Ahli KWSP (SPA) yang diperkenalkan pada bulan November 1996 membolehkan ahli yang layak memindahkan sebahagian daripada simpanan dalam Akaun 1 mereka secara sukarela untuk melabur dengan Institusi Pengurusan Dana (IPD) yang dilantik.

IPD terdiri daripada Syarikat Pengurusan Unit Amanah dan Syarikat Pengurusan Aset.
Setakat 31 Disember 2020, sejumlah 0.95 juta ahli telah melabur melalui skim ini.

Jumlah dana yang telah diluluskan ialah 346 dana manakala aset di bawah pengurusan meningkat kepada RM59.1 bilion.

Di samping itu, sejumlah 22 IPD telah dilantik.


Platform dalam talian i-Invest, yang diperkenalkan pada bulan Ogos 2019, adalah sebahagian daripada langkah digitalisasi KWSP dan membolehkan ahli yang layak, termasuk mereka yang berumur 55 tahun ke atas, melabur dalam dana unit amanah secara langsung melalui i-Akaun (Ahli).

Sejak dilancarkan sehingga 31 Disember 2020, i-Invest telah merekodkan lebih daripada 70,000 transaksi bernilai RM684.6 juta.
Bagi membantu ahli memanfaatkan keadaan pasaran tidak memberangsangkan dan membantu IPD mengurangkan kos operasi semasa tempoh pandemik, KWSP telah memperkenalkan Pelan Rangsangan untuk tempoh 12 bulan, bermula pada 1 Mei 2020.

Di bawah Pelan Rangsangan tersebut, ahli KWSP yang melabur melalui SPA akan membayar caj jualan yang telah dikurangkan daripada maksimum 3% kepada maksimum 1.5% untuk transaksi tradisional yang dilaksanakan melalui ejen IPD.
Caj penjualan tidak dikenakan untuk pelaburan yang dilaksanakan melalui i-Invest.

Pembayaran perkhidmatan yang dikenakan kepada IPD di bawah skim ini juga dikurangkan sebanyak 50%.

Fi perkhidmatan ini adalah berdasarkan aset di bawah pengurusan (AUM) yang diuruskan oleh IPD dan tidak dibayar oleh KWSP atau ahli KWSP.
KWSP telah menandatangani Prinsip Pelaburan Bertanggungjawab Pertubuhan Bangsa-Bangsa Bersatu (UN PRI) pada tahun 2019 dan tahun 2020 merupakan tahun pertama untuk KWSP mengemukakan laporan rasmi ke PRI.

Untuk menerapkan enam prinsip yang ditetapkan oleh PRI, KWSP telah menubuhkan Pusat Pelaburan Lestari (SIC) pada Februari 2020.
SIC menerajui agenda pelaburan lestari di seluruh organisasi dan memberi tumpuan khusus untuk mengintegrasikan faktor alam sekitar, sosial, dan tadbir urus (Environmental, Social & Governance atau ESG) ke dalam proses membuat keputusan pelaburan.

Untuk mempercepatkan penerapan ESG ke dalam pelaburan serta dasar dan proses yang formal, KWSP telah membangunkan sendiri Polisi dan Rangka Kerja Pelaburan Lestari.
Dokumen ini menerangkan pendekatan KWSP dalam pelaburan lestari, pengintegrasian faktor ESG ke dalam proses pelaburan KWSP dan keterlibatan pihak berkepentingan bagi memastikan pulangan pelaburan jangka panjang yang mampan untuk ahli.

Pendekatan KWSP melampaui pelaburan beretika yang tidak termasuk pelaburan dalam sektor dosa seperti alkohol, hiburan orang dewasa, tembakau, perjudian dan persenjataan.
Dalam melaksanakan projek ini, KWSP telah menetapkan bidang fokus utama bagi setiap teras E,S, dan G dan komited untuk mencapai dua sasaran kelestarian yang berkaitan dengan kepatuhan ESG jangka panjang dan portfolio iklim yang neutral.

Walaupun kerjasama bersepadu semua pihak berkepentingan dalam organisasi diperlukan bagi mencapai sasaran ini, SIC adalah bertanggungjawab untuk membangunkan, menerapkan, memantau dan melaporkan kemajuan KWSP setiap tahun.
Untuk memastikan kebolehlaksanaan Polisi Pelaburan Lestari, penyelidikan yang luas dan beberapa siri keterlibatan dilakukan dengan pihak pengurusan, ahli lembaga pengarah, pengurus dana dan penganalisis pelaburan.

KWSP juga bekerjasama dengan pemimpin industri, organisasi kawal selia dan syarikat yang dilaburkannya untuk menyampaikan, mengesahkan dan menyelaraskan aspirasi KWSP ke arah kelestarian.
Sesi keterlibatan bersama pihak berkepentingan yang berkaitan adalah sangat mustahak kerana KWSP sedar bahawa tidak ada satu penyelesaian yang sesuai untuk semua dalam menerapkan kelestarian dan bahawa penerapan ESG di Malaysia masih pada tahap permulaan.

107 ULASAN BAHAGIANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20208 BAHAGIAN PELABURAN Untuk merealisasikan peralihan ke arah menjadi pelabur lestari, KWSP menjadikan pembangunan keupayaan dalaman sebagai prinsip utama dalam pendekatan pelaburan lestari.
Pada tahun 2020, SIC melaksanakan program latihan dan perkongsian pengetahuan mengenai pelaburan lestari untuk menanamkan pemikiran berfokuskan kelestarian dalam organisasi.

SIC juga menerbitkan artikel bulanan, yang dikenali sebagai Sustain@Lab Education Series yang berkisar tentang perkara dan topik kelestarian yang penting dan terkini.

Siri pendidikan ini tersedia untuk semua kakitangan KWSP.

Selain itu, inisiatif integrasi ESG lain yang diperkenalkan pada November 2020 ialah penilaian kelestarian.
Sebarang cadangan pelaburan baharu perlu dinilai oleh SIC yang merangkumi penganalisisan risiko yang material dan peluang berkaitan ESG dalam pelaburan tersebut.

Ini membolehkan pengurusan KWSP membuat keputusan pelaburan yang lebih tepat kerana penilaian kelestarian tersebut memberikan analisis pelaburan yang lebih holistik.

Sebagai perbandingan, analisis asas kewangan tradisional mengabaikan risiko bukan kewangan yang material.
Lebih daripada 30 penilaian kelestarian, untuk semua kelas aset, telah dilaksanakan dan dibentangkan kepada Jawatankuasa Pengurusan Pelaburan dan Panel Pelaburan pada tahun 2020.

Sebagai sebahagian daripada inisiatif kolaborasi, KWSP telah dilantik sebagai salah satu daripada 13 Ahli Jawatankuasa Pemandu untuk CEO Action Network (CAN) pada Oktober 2020.
Platform kolaboratif seperti CAN membolehkan KWSP saling bertukar pendapat tentang amalan terbaik industri, berkongsi dan belajar mengenai strategi yang berkesan dan idea yang mengambil kira keperluan masa hadapan dengan ahli CAN.

Di samping itu, sebagai penandatangan Kod Malaysia bagi Pelabur Institusi sejak tahun 2017, KWSP komited untuk mematuhi keenam-enam prinsip kod tersebut, yang bertujuan untuk mempromosikan pengurusan yang efektif oleh pelabur institusi.
Pematuhan KWSP terhadap enam prinsip ini diterbitkan setiap tahun di laman web KWSP.

Pengerusi Majlis Pelaburan Institusi (IIC) Malaysia, Puan Rohaya Mohammad Yusof, Ketua Pegawai Pelaburan KWSP juga mengetuai beberapa kerjasama dengan syarikat awam tersenarai dan organisasi kawal selia dalam pelbagai isu ESG sepanjang tahun ini.

Dalam melaksanakan misi KWSP untuk melindungi simpanan ahli, kelestarian pulangan yang disesuaikan dengan risiko merupakan faktor sangat penting.
Oleh itu, KWSP akan terus membuat peralihan ke arah organisasi pelabur yang lestari dengan menerapkan amalan terbaik industri dan bekerjasama dengan organisasi kawal selia, pengurus aset dan syarikat pelaburan.

Seterusnya, KWSP juga akan membangunkan Polisi Sektor dan Isu Keutamaan yang akan diamalkan dalam pelaburan KWSP dan memperkukuhkan kemampuan dalaman dalam bidang ESG melalui modul ESG yang akan dilancarkan di platform pembelajaran elektronik KWSP, iaitu EPFTuned.
PROSPEK PELABURAN Ketika ini, pandemik COVID-19 masih mendominasi tajuk-tajuk utama berita berikutan lonjakan kes yang menyebabkan beberapa penutupan penuh sektor ekonomi yang baharu di seluruh dunia.

Walaupun peningkatan kadar vaksinasi di negara maju dan negara membangun telah membuka jalan ke arah pemulihan, kebimbangan terhadap varian baharu COVID-19 dan kesan negatif ke atas nyawa dan kehidupan orang ramai telah menjadikan prospek pasaran berada dalam keadaan yang tidak menentu.
Unjuran pertumbuhan di pelbagai negara termasuk Malaysia telah disemak semula dengan lebih rendah berikutan kelewatan dalam pembukaan semula ekonomi yang dijangka berlanjutan sehingga tahun 2022.

Walaupun berhadapan dengan cabaran ini, KWSP kekal komited untuk menghasilkan pulangan pelaburan yang stabil dan mapan untuk melindungi simpanan persaraan ahli.
108 ULASAN BAHAGIANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20208 BAHAGIAN OPERASI Dato’ Mohd Naim Daruwish | Ketua Pegawai Operasi KWSP sebagai sebuah organisasi keselamatan sosial yang berorientasikan pelanggan adalah komited dalam memberikan perkhidmatan terbaik kepada pihak berkepentingan terutamanya ahli dan majikan.
COVID-19 yang muncul pada tahun 2020 bukan sahaja melibatkan risiko penularan pandemik malah telah memberi kesan yang mendalam ke atas sektor ekonomi, serta boleh menjejaskan operasi dan pengalaman pelanggan yang berurusan dengan KWSP.

Bagi menghadapi kesan pandemik dan penguatkuasaan Perintah Kawalan Pergerakan (PKP), KWSP telah mengenal pasti dan mengambil langkah untuk menambah baik prosedur operasi dan membuat penyesuaian kaedah penyampaian perkhidmatan mengikut norma baharu.
Proses baharu ini telah dapat dilaksanakan dengan pantas kerana KWSP telah pun sedia membangunkan perancangan luar jangka dan kontingensi sebelum tercetusnya pandemik COVID-19.

Ini sejajar dengan teras strategik KWSP untuk menyediakan perkhidmatan yang terbaik secara berterusan kepada pelanggan dalam apa jua keadaan.
Perancangan luar jangka dan kontingensi KWSP ini juga mengambil kira keperluan untuk menyokong pelbagai inisiatif Kerajaan bagi meringankan beban kewangan yang dihadapi oleh rakyat dan sektor ekonomi berikutan pelaksanaan PKP sepanjang tahun.

Pandemik ini juga telah mempercepat proses digitalisasi KWSP melalui penambahbaikan berterusan yang dilakukan ke atas prosedur operasi yang berkaitan.
Ini membolehkan kami menyampaikan produk dan perkhidmatan dengan cekap untuk memenuhi jumlah permintaan dan jangkaan ahli kami yang semakin meningkat.

KWSP juga prihatin dengan masalah kewangan yang dihadapi oleh ahli dan majikan, dan keperluan mereka untuk mengakses sumber kewangan dalam tempoh yang sangat mencabar ini.

KWSP telah menyesuaikan operasi di cawangan dan perkhidmatan kaunter selaras dengan Prosedur Operasi Standard (SOP) yang ditetapkan oleh EPF COVID-19 Command Centre dan pihak berkuasa.
Ini dilaksanakan bagi menjamin keselamatan semua pihak semasa berurusan dengan KWSP.

Selain mematuhi peraturan PKP yang ketat di kawasan-kawasan tertentu sepanjang tahun 2020, KWSP juga telah menutup sementara beberapa buah cawangan dan kaunter perkhidmatan yang terjejas dengan COVID-19 untuk menjalankan proses sanitasi dan disinfeksi.
109 ULASAN BAHAGIANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20208 BAHAGIAN OPERASI PENYAMPAIAN PERKHIDMATAN PELANGGAN FUNGSI TERAS YANG CEMERLANG Bahagian Operasi komited untuk memastikan bahawa kualiti perkhidmatan KWSP kekal cemerlang pada setiap masa dan memenuhi keperluan dan jangkaan pelanggan dengan memfokuskan penyediaan pengalaman perkhidmatan pelanggan terbaik daripada segi kepantasan, ketepatan, kemudahan, integriti, dan keberkesanan kos.
Bagi mencapai matlamat ini, kami telah menyesuaikan proses pelaksanaan fungsi teras Bahagian Operasi seiring dengan perubahan dan keperluan semasa.

Dalam beberapa tahun kebelakangan ini, KWSP telah melipatgandakan usaha untuk meningkatkan kapasiti dan keupayaan operasi sedia ada dengan menyediakan penyelesaian perkhidmatan yang komprehensif bagi perkhidmatan secara bersemuka dan perkhidmatan melalui platform digital, termasuk i-Akaun (Ahli) dan i-Akaun (Majikan).
Pada tahun 2020, pelbagai pembaharuan dan inisiatif penambahbaikan telah dilaksanakan mengikut Pelan Boleh Ubah Tiga Tahun KWSP.

Ini termasuk pelancaran portal interaktif i-Akaun (Majikan) yang baharu, pelaksanaan pendaftaran penamaan secara dalam talian dan saluran baharu untuk caruman sukarela.

KWSP komited untuk terus memanfaatkan teknologi dan penyelesaian perniagaan untuk mengakses dan menggunakan data masa nyata untuk memenuhi keperluan pelanggan pada masa depan.
Bahagian Operasi bertanggungjawab untuk melaksanakan fungsi teras berikut: • Mendaftar dan mengurus akaun ahli dan majikan • Mengutip caruman • Memproses pengeluaran dan penamaan • Mengambil tindakan penguatkuasaan terhadap majikan yang ingkar • Menguruskan perhubungan pelanggan Bahagian ini juga mengawal selia dan mengurus rangkaian perkhidmatan operasi KWSP di 68 buah cawangan di seluruh negara serta pejabat dan hartanah KWSP.
Kami juga menyediakan pelbagai saluran perkhidmatan secara bersemuka dan dalam talian untuk pelanggan bagi memberikan pengalaman pelanggan terbaik kepada ahli dan majikan.

PENDAFTARAN AHLI Setakat 31 Disember 2020, jumlah ahli yang berdaftar dengan KWSP ialah 14.89 juta.

Bilangan ahli baharu pada tahun 2020 ialah 400,186, iaitu penurunan sebanyak 24.03% daripada 526,766 ahli baharu yang didaftarkan pada tahun 2019.
Ini mungkin disebabkan oleh pengurangan dalam pengambilan pekerja baharu berikutan kemerosotan ekonomi akibat COVID-19.

Sementara itu, jumlah ahli aktif juga menurun kepada 7.59 juta pada tahun 2020 daripada 7.63 juta pada tahun sebelumnya.

Sebaliknya, jumlah ahli yang didaftarkan di bawah Simpanan Shariah meningkat sepanjang tahun ini.

Setakat 31 Disember 2020, jumlah ahli yang didaftarkan di bawah Simpanan Shariah mencapai 1,117,303, berbanding 880,375 ahli pada tahun 2019.
Jumlah pendaftaran baharu untuk Simpanan Shariah adalah 258,056 ahli, iaitu peningkatan yang ketara sebanyak 77.27% daripada 145,573 pada tahun 2019.

Pelancaran ciri aplikasi mudah alih i-Akaun yang membolehkan ahli mendaftar di bawah Simpanan Shariah merupakan faktor yang menyumbang kepada peningkatan jumlah pendaftaran.
110 Setakat 31 Disember 2020, jumlah ahli yang berdaftar dengan KWSP ialah 14.89 juta Setakat 31 Disember 2020, jumlah ahli yang didaftarkan di bawah Simpanan Shariah mencapai 1,117,303 ahli ULASAN BAHAGIANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20208 BAHAGIAN OPERASI Jumlah ahli yang didaftarkan di bawah program Caruman Sukarela i-Saraan (i-Saraan) adalah 329,202, meningkat 21.75% daripada 270,387 pada tahun 2019.
Walau bagaimanapun, jumlah pendaftaran baharu pada tahun 2020 menurun kepada 59,768 berbanding 120,738 pada tahun 2019, kerana perkhidmatan secara bersemuka di cawangan KWSP dihadkan mengikut SOP yang telah ditetapkan.

Tambahan pula, program promosi oleh kakitangan kaunter atau Mobile Team tidak dapat dilaksanakan sepenuhnya sepanjang tahun ini.
Sementara itu, bagi program Caruman Sukarela i-Suri (i-Suri) pula, bilangan ahli berdaftar meningkat 107.67% kepada 289,084 pada tahun 2020 daripada 139,202 pada tahun 2019.

Suri rumah di bawah umur 60 tahun yang tersenarai dalam Pangkalan Data Kemiskinan Nasional (eKasih) didaftarkan secara automatik dengan KWSP dan ini menyumbang kepada peningkatan ahli dalam program i-Suri sepanjang tahun ini.

KWSP sentiasa menggalakkan ahli untuk membuat dan mengemas kini penamaan mereka.
Penamaan memudahkan waris atau benefisiari untuk menerima dan menguruskan simpanan sekiranya ahli KWSP meninggal dunia.

Pada tahun 2020, jumlah penamaan baharu ialah 220,481, menurun sebanyak 48.73% daripada 430,067 pada tahun 2019.

Walaupun begitu, jumlah ahli yang telah membuat penamaan meningkat 2.37% kepada 4.76 juta daripada 4.65 juta pada tahun 2019.

Kutipan Caruman Bagi melindungi simpanan ahli, KWSP memastikan kutipan caruman ahli dilaksanakan secara teratur sepanjang tahun 2020.
Walaupun berdepan dengan persekitaran yang mencabar, KWSP telah menerima caruman berjumlah RM78.41 bilion, iaitu peningkatan sebanyak 3.27% daripada RM75.93 bilion yang dikutip pada tahun 2019.
Peningkatan ini berlaku walaupun jumlah ahli baharu yang mendaftar pada tahun ini adalah lebih rendah berbanding tahun 2019, kadar caruman berkanun syer pekerja telah diturunkan dari 11% kepada 7%, dan sebahagian daripada ahli berkemungkinan telah kehilangan pekerjaan atau sebahagian daripada pendapatan disebabkan pandemik.

Kutipan caruman i-Saraan juga meningkat sebanyak 2.64% daripada RM217.38 juta pada tahun 2019 kepada RM223.11 juta pada tahun 2020.
Semasa pelaksanaan PKP yang pertama pada tahun 2020, kutipan caruman i-Saraan merosot dengan ketara kerana pendapatan ahli terjejas berikutan pengehadan aktiviti perniagaan.

Walau bagaimanapun, usaha konsisten cawangan-cawangan KWSP untuk mendorong ahli i-Saraan untuk terus membuat caruman untuk simpanan persaraan mereka telah menyumbang kepada peningkatan kutipan yang diterima pada akhir tahun.
111 ULASAN BAHAGIANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20208 BAHAGIAN OPERASI Caruman sukarela untuk Caruman Sendiri, i-Suri atau i-Saraan boleh dilakukan melalui kaunter KWSP, perbankan internet, kaunter ejen bank dan melalui ejen Bank Simpanan Nasional (Ejen Bank Berdaftar) mulai Februari 2020.

Kemudahan Pengeluaran KWSP bertindak pantas dalam membangunkan inisiatif bagi mengurangkan beban kewangan yang dihadapi oleh ahli dalam mendepani pandemik pada tahun 2020.
Salah satu inisiatif utama kami ialah kemudahan Pengeluaran i-Lestari (i-Lestari) yang dilancarkan pada 1 April 2020.

Kemudahan ini membolehkan ahli yang layak dan di bawah umur 55 tahun membuat pengeluaran sehingga RM500 setiap bulan selama 12 bulan, tertakluk kepada baki simpanan dalam Akaun 2 ahli.

KWSP menyedari keperluan ahli untuk mendapatkan bantuan kewangan seterusnya berikutan tempoh pandemik yang berlanjutan dan melancarkan kemudahan Pengeluaran i-Sinar (i-Sinar) pada akhir tahun 2020.
Kemudahan i-Sinar membolehkan ahli yang telah kehilangan pekerjaan, diberi cuti tanpa gaji dan/atau tidak mempunyai sumber pendapatan untuk membuat pengeluaran dari Akaun 1.

Kemudahan ketiga yang diperkenalkan pada tahun 2020 ialah kemudahan Pengeluaran Kesihatan - Rawatan Kesuburan untuk membolehkan ahli mengeluarkan simpanan dalam Akaun 2 untuk membiayai rawatan kesuburan.

Sejumlah 6.89 juta permohonan di bawah pelbagai kemudahan pengeluaran ahli telah diluluskan pada tahun 2020.
Ini merupakan peningkatan sebanyak 188.28% daripada 2.39 juta permohonan yang diluluskan pada tahun 2019.

Jumlah amaun pengeluaran yang diluluskan untuk tahun 2020 ialah RM45.92 bilion berbanding RM45.60 bilion untuk 2019.

Pengeluaran di bawah i-Lestari ialah penyumbang terbesar kepada jumlah permohonan yang diluluskan.
Jumlah permohonan dan amaun pengeluaran Jumlah amaun pengeluaran yang diluluskan untuk tahun 2020 ialah RM45.92 bilion berbanding RM45.60 bilion untuk 2019 yang diluluskan, sekiranya tidak termasuk pengeluaran i-Lestari, telah mengalami penurunan masing-masing sebanyak 18.20% dan 4.40%.

Pengeluaran di bawah semua kemudahan pengeluaran perumahan pada tahun 2020 juga telah merosot berbanding tahun 2019.
Ini mungkin disebabkan oleh moratorium pinjaman, yang diperkenalkan oleh Bank Negara Malaysia, yang membolehkan ahli yang layak menangguhkan pembayaran pinjaman harta tanah mereka selama enam bulan.

Pengeluaran untuk membiayai pendidikan juga menurun pada tahun 2020 kerana sebilangan besar institusi pengajian tinggi telah mengurangkan atau menangguhkan yuran kerana pelajar meneruskan pembelajaran mereka dari rumah.
PENDAFTARAN MAJIKAN Dalam persekitaran ekonomi yang mencabar pada tahun 2020, jumlah majikan baharu yang mendaftar dengan KWSP ialah 66,554, iaitu penurunan sebanyak 7.84% daripada 72,218 pada tahun 2019.

Ini menjadikan jumlah majikan yang berdaftar dengan KWSP menjadi 534,398, iaitu peningkatan sebanyak 2.32% daripada 522,297 pada tahun 2019.
Memastikan Pelaksanaan Tanggungjawab Majikan Untuk melindungi kepentingan ahli, KWSP mengambil tindakan pengawalseliaan terhadap majikan yang gagal membuat caruman bagi pekerja mereka.

Berikutan pelaksanaan PKP yang telah menjejaskan aktiviti ekonomi, jumlah majikan yang gagal mencarum telah meningkat kepada 4.50% pada 2020 berbanding 1.24% pada tahun 2019, melibatkan 27,138 majikan berbanding 7,209 pada tahun 2019.
Jumlah pembayaran caruman tertunggak yang berjaya dikutip daripada majikan yang gagal ialah RM4.51 bilion pada tahun 2020, berbanding RM3.59 bilion pada tahun 2019.

112 ULASAN BAHAGIANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20208 Sementara itu, caj lewat bayar berjumlah RM14.80 juta telah dikutip pada tahun 2020 berbanding RM25.42 juta pada tahun 2019.
KWSP juga berjaya mengutip dividen lewat bayar berjumlah RM14.99 juta, daripada majikan yang gagal mencarum, berbanding RM19.80 juta pada tahun 2019.

Dalam menguatkuasakan Seksyen 39 Akta KWSP 1991, sejumlah 1,474 orang pengarah syarikat dan pemilik perniagaan telah dikenakan larangan meninggalkan negara kerana gagal menjelaskan caruman tertunggak mereka pada tahun 2020.

Hasil daripada tindakan tersebut, sejumlah RM18.60 juta caruman tertunggak telah berjaya dikutip.
Di samping itu, terdapat 1,543 kes pendakwaan baharu dan 706 tuntutan sivil yang didaftarkan di mahkamah terhadap majikan yang gagal mencarum pada tahun 2020.

TRANSAKSI DAN INTERAKSI PELANGGAN Pada tahun 2020, sejumlah 218.69 juta transaksi dan interaksi pelanggan direkodkan melalui pelbagai saluran perkhidmatan KWSP seperti kaunter perkhidmatan, laman web, kios, aplikasi mudah alih i-Akaun dan Pusat Pengurusan Perhubungan (CMC).
Jumlah transaksi dan interaksi pelanggan meningkat sebanyak 100.99% daripada 108.81 juta pada tahun 2019.

Transaksi Layan Diri Elektronik Berikutan pelaksanaan beberapa PKP sepanjang tahun lepas, pelanggan telah dinasihatkan untuk menggunakan perkhidmatan elektronik KWSP ketika kaunter perkhidmatan ditutup dan bagi mengurangkan kesesakan di cawangan yang beroperasi.
Daripada jumlah transaksi BAHAGIAN OPERASI pelanggan pada tahun 2020, 97.69% ialah transaksi layan diri elektronik yang dibuat melalui i-Akaun (Ahli), i-Akaun (Majikan), aplikasi mudah alih i-Akaun, aplikasi mudah alih e-Caruman dan kios, berbanding 96.39% pada tahun 2019.

Penggunaan i-Akaun (Ahli) dan aplikasi mudah alih i-Akaun melonjak apabila ahli menyemak penyata dan mengemas kini maklumat peribadi bagi tujuan pengeluaran i-Lestari.
Penggunaan i-Akaun meningkat 116.91% daripada 65.93 juta transaksi pada tahun 2019 kepada 143.01 juta pada tahun 2020.

Peningkatan ini juga disumbangkan oleh penambahbaikan berterusan dan ciri-ciri baharu yang ditawarkan di platform digital ini.

Transaksi Perkhidmatan Pelanggan Hanya 2.31% daripada jumlah transaksi dan interaksi pelanggan berlaku secara langsung di kaunter perkhidmatan KWSP, melalui CMC dan e-mel, berbanding 3.61% pada tahun 2019.
Kehadiran pelanggan di kaunter perkhidmatan menurun 37.04% kepada 1.70 juta orang pada tahun 2020 berbanding 2.70 juta pada tahun 2019.

Untuk mematuhi SOP yang telah ditetapkan bagi menangani penularan COVID-19, KWSP telah mengurangkan jumlah perkhidmatan yang disediakan di kaunter.

Ahli yang memilih perkhidmatan secara bersemuka perlu membuat janji temu terlebih dahulu melalui platform Janji Temu Online (JTO).

JTO mencatatkan sejumlah 985,767 janji temu pada tahun 2020.
Jumlah panggilan telefon yang diterima oleh CMC meningkat 158.83% kepada 2,886,917 pada tahun 2020 berbanding 1,115,354 pada tahun 2019.

Sebilangan besar panggilan tersebut dibuat pada bulan April berkaitan dengan pendaftaran i-Akaun, i-Lestari dan kemudahan pengeluaran lain.

Khidmat Nasihat Persaraan (RAS) Perkhidmatan RAS KWSP memberi tumpuan kepada peningkatan kesedaran dan pengetahuan kewangan dalam kalangan ahli.
Perkhidmatan ini disediakan di 52 buah cawangan KWSP di seluruh negara oleh 82 orang pegawai yang berkelayakan dalam bidang perancangan kewangan dan persaraan.

Pada tahun 2020, skop perkhidmatan RAS telah diperluaskan merangkumi perkongsian maklumat mengenai pelbagai inisiatif kerajaan dan cara menguruskan kewangan semasa pandemik.
113 ULASAN BAHAGIANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20208 BAHAGIAN OPERASI Sejumlah 83,224 ahli telah mendapat khidmat nasihat kewangan di kaunter KWSP dan saluran lain pada tahun 2020, meningkat daripada 82,958 pada tahun 2019.

Berikutan pelaksanaan PKP di seluruh negara, hanya 1,112 program taklimat awam yang melibatkan 79,121 pelanggan telah dijalankan pada tahun 2020 berbanding 2,585 program yang melibatkan 255,605 pelanggan pada tahun 2019.
RAS juga telah mengadakan taklimat secara webinar untuk pihak ketiga, merangkumi individu dari semua sektor, ahli dan bakal pencarum pada tahun 2020.

Sebanyak 97 sesi taklimat awam dalam talian berjaya dijalankan dan disertai oleh 8,324 orang.

Khidmat Nasihat Majikan (EAS) EAS ialah program perintis yang menawarkan khidmat nasihat melalui penglibatan proaktif antara KWSP dan majikan.

Ini bertujuan untuk membantu majikan melaksanakan tanggungjawab mereka dalam persekitaran kewangan yang mencabar.
EAS juga memberi nasihat kepada majikan yang ingin mengambil bahagian dalam Program Bantuan Majikan COVID-19 (e-CAP), yang membolehkan mereka menangguhkan caruman syer majikan bagi bulan April, Mei dan / atau Jun 2020.

114 Platform Layan Diri Digital KWSP berhasrat untuk menyediakan perkhidmatan digital yang komprehensif pada masa hadapan.

Untuk mencapai matlamat ini, KWSP memberikan tumpuan kepada penambahbaikan platform digital sedia ada dan pembangunan platform baharu.
Setakat 31 Disember 2020, sejumlah 8.90 juta ahli, bersamaan dengan 59.77% daripada jumlah ahli berdaftar kami, dan 531,343 majikan, bersamaan dengan 99.43% daripada jumlah majikan berdaftar kami, telah mengaktifkan i-Akaun (Ahli) dan i-Akaun (Majikan) masing- masing.
Pada bulan Mei 2020, KWSP melancarkan i-Akaun (Majikan) versi baharu yang dilengkapi dengan pengantara muka terkini, modul transaksi yang mesra pengguna dan akses kepada maklumat untuk memudahkan majikan melaksanakan tanggungjawab mereka dengan lebih efisien.

e-Bayaran dan e-Borang Kadar penggunaan saluran elektronik dalam kalangan majikan kekal tinggi pada 98.06% bagi transaksi e-Bayaran dan 99.99% bagi serahan e-Borang.

Transaksi e-Bayaran meningkat sebanyak 0.92% pada tahun 2020 berbanding tahun 2019.
Walau bagaimanapun, jumlah penyerahan borang caruman melalui e-Borang menurun sebanyak 2.40% kerana sebilangan majikan menghadapi masalah kewangan dan seterusnya tidak dapat membuat caruman semasa tempoh PKP.

e-Pengeluaran Jumlah permohonan pengeluaran dan amaun pengeluaran yang diluluskan melalui e-Pengeluaran (tidak termasuk pengeluaran i-Lestari) masing-masing meningkat sebanyak 7.55% dan 75.50%, pada tahun 2020.
Penyumbang utama kepada peningkatan ini ialah Pengeluaran Umur 50/55/60 dan Pengeluaran Simpanan Melebihi RM1 Juta serta Pengeluaran Dividen Tahunan, yang dilancarkan pada bulan Disember 2019.

Peningkatan dalam jumlah e-Pengeluaran juga disebabkan oleh pelaksanaan PKP yang mendorong ahli untuk membuat permohonan pengeluaran melalui platform elektronik KWSP.
Sejumlah 2.84 juta permohonan berjumlah RM1.34 bilion, termasuk pengeluaran i-Lestari, telah diterima melalui saluran e-Pengeluaran KWSP pada tahun 2020.

ULASAN BAHAGIANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20208 BAHAGIAN OPERASI Aplikasi Mudah Alih i-Akaun dan e-Caruman Sejumlah 4.52 juta ahli memuat turun aplikasi mudah alih i-Akaun pada tahun 2020, iaitu peningkatan mendadak sebanyak 211.72% daripada 1.45 juta muat turun pada tahun 2019.
Sementara itu, 217,205 majikan memuat turun aplikasi mudah alih e-Caruman pada tahun 2020, berbanding 134,024 pada tahun 2019.

Selain daripada capaian kepada sistem operasi Android dan iOS, aplikasi mudah alih KWSP juga boleh dimuat turun melalui sistem operasi Huawei, sejak Jun 2020.

Chatbot ELYA Untuk memenuhi keperluan pelanggan kami yang mengutamakan perkhidmatan pelanggan dalam talian, KWSP telah melancarkan chatbot bernama ELYA pada bulan Jun 2020.
ELYA menyediakan maklumat mengenai pelbagai produk dan perkhidmatan KWSP.

ELYA memiliki perwatakan yang ramah dan mudah didekati serta memahami keperluan pelanggan kami yang pelbagai.

ELYA dilengkapi dengan maklumat lazim yang sering diminta oleh pelanggan melalui saluran KWSP sedia ada seperti CMC, kaunter perkhidmatan, e-mel dan media sosial.

Setakat 31 Disember 2020, ELYA telah mencatat 1.15 juta sesi bersama pelanggan atau secara purata 6,000 sesi sehari.
Pada masa akan datang, ELYA akan dinaikkan taraf menjadi bot penasihat yang membolehkan pelanggan mendapatkan perkhidmatan runding cara kendiri.

ELYA juga dilengkapi dengan fungsi Live Chat yang menghubungkan pelanggan dengan Pegawai Khidmat Nasihat KWSP jika terdapat pertanyaan yang tidak dapat dijawab oleh ELYA atau pertanyaan spesifik berkenaan pelanggan individu.

Sehingga 31 Disember 2020, ELYA telah merekodkan sejumlah 28,000 sesi Live Chat.
TAHAP KEPUASAN PERKHIDMATAN PELANGGAN KWSP adalah komited untuk memberikan perkhidmatan pelanggan yang terbaik sama ada secara bersemuka atau dalam talian.

Bagi memastikan bahawa kami terus memenuhi keperluan pelanggan kami, kaji selidik pelanggan secara berkala telah dilaksanakan melalui CMC dan perunding bebas pada tahun 2020.
Walaupun kami beroperasi dalam persekitaran yang mencabar sepanjang tahun dan melaksanakan kerja secara hibrid dari rumah dan pejabat dalam norma baharu, kami berasa bangga kerana hasil kaji selidik telah menunjukkan bahawa perkhidmatan pelanggan KWSP terus menunjukkan prestasi yang baik dan memenuhi harapan pelanggan kami.

Indeks kepuasan pelanggan KWSP adalah tinggi pada 95.21% berbanding indeks purata industri pada 80.00%.
Walaupun terdapat beberapa kes terpencil yang melibatkan ketidakpuasan dan aduan ahli, KWSP telah mengambil tindakan segera untuk memberi penjelasan lanjut atau menyelesaikan masalah yang dihadapi oleh mereka.
ELYA 26 tahun 16 Jun 2020 Perempuan Umur: Tarikh Pelancaran: Jantina: Kewarganegaraan: Malaysia Pekerjaan: Karakter: Pembantu Maya KWSP Bot Dwi-bahasa (Bahasa Malaysia dan Bahasa Inggeris) Pakar Berkenaan Produk dan Perkhidmatan KWSP Bertimbang Rasa Petah Berbicara dan Bermaklumat Jujur dan Boleh Dipercayai 115 ULASAN BAHAGIANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20208 BAHAGIAN STRATEGI Nurhisham Hussein | Ketua Pegawai Strategi Pelbagai peristiwa yang berlaku pada tahun 2020 serta impak pandemik ke atas individu, kelangsungan hidup, dan perniagaan telah menyerlahkan tiga isu kritikal yang mempengaruhi kehidupan rakyat Malaysia, termasuklah ahli KWSP.
Pertama, keselamatan pekerjaan dan keselamatan pendapatan tenaga kerja merupakan faktor yang kian membimbangkan di peringkat nasional terutamanya golongan yang bekerja dalam sektor perusahaan kecil dan sederhana.

Banyak syarikat yang mengalami masalah untuk meneruskan perniagaan dan kekangan aliran tunai terpaksa mengurangkan gaji dan/ atau menamatkan perkhidmatan pekerja mereka sepanjang tahun lepas.
Semasa krisis, individu yang menghadapi masalah kewangan yang serius terpaksa menggunakan simpanan kecemasan dan/ atau simpanan persaraan masing- masing.

Sekiranya situasi ini berlanjutan untuk tempoh yang panjang, isi rumah akan berdepan dengan risiko pengurangan atau kehabisan simpanan dengan cepat, dan seterusnya terdorong ke dalam kancah kemiskinan tegar.
Dalam hal ini, pekerja dalam sektor formal, iaitu golongan yang bekerja sepenuh masa bernasib baik kerana mereka mempunyai faedah pekerja dan juga cenderung untuk mengekalkan pekerjaan.

Sebaliknya, tenaga kerja dalam sektor tidak formal sangat terkesan kerana kehilangan pekerjaan dan/ atau mengalami pengurangan pendapatan.
Situasi ini adalah signifikan kerana pekerja dalam sektor tidak formal (tidak termasuk pekerja dalam sektor pertanian), termasuk golongan yang bekerja sendiri, peniaga kecil, pekerja bebas, dan pekerja kontrak, merangkumi 2.5 juta ahli atau bersamaan dengan 16% daripada jumlah tenaga kerja di Malaysia.

Ini berdasarkan Tinjauan Tenaga Buruh oleh Jabatan Statistik untuk suku keempat tahun 2020.
Isu kedua pula adalah berkenaan dengan ketidakcukupan simpanan isi rumah sebagaimana yang telah diketengahkan oleh KWSP selama beberapa tahun sebelum kemunculan pandemik.

Dalam persekitaran yang menyaksikan kadar penabungan yang rendah dalam kalangan rakyat Malaysia, KWSP prihatin tentang kemampuan mereka untuk mencapai masa depan yang lebih baik dan persaraan yang sejahtera.
Di samping menjejaskan individu, kelangsungan perniagaan dan kehidupan, COVID-19 telah memburukkan lagi situasi ketidakcukupan simpanan dalam masyarakat.

Ini juga menunjukkan bahawa terdapat kelemahan dalam sistem perlindungan sosial sedia ada.

Ini membawa kepada isu ketiga, iaitu terdapat keperluan mendesak untuk membangunkan sistem perlindungan sosial yang lestari, komprehensif, dan berdaya tahan untuk menangani kumpulan yang rentan dan juga individu yang telah terjejas oleh pandemik ini.
PERANAN PERLINDUNGAN SOSIAL SEMASA PANDEMIK Kini, terdapat keperluan mendesak untuk merangka strategi jangka panjang bagi memperkukuh sistem perlindungan sosial negara dan meningkatkan kesediaan negara dalam menangani sebarang krisis pada masa depan.

Ini memerlukan penyelarasan usaha ke arah meningkatkan keselamatan pendapatan, peralihan pekerja sektor tidak formal ke sektor formal, perlindungan pekerjaan, dan penetapan langkah-langkah lain yang dapat membantu perniagaan untuk mengekalkan pekerja mereka.
116 ULASAN BAHAGIANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20208 BAHAGIAN STRATEGI KWSP telah meningkatkan usahanya pada tahun 2020 untuk menyediakan jaringan perlindungan sosial yang lebih luas untuk ahli dan majikan, dan secara amnya untuk rakyat Malaysia.

Kami meneroka dan membangunkan penyelesaian yang tidak pernah dilaksanakan sebelum ini bagi membantu ahli yang terjejas sumber kewangan mereka dan kian terdedah kepada masa depan yang tidak stabil.
Kemudahan baharu, seperti Pengeluaran i-Lestari dan Pengeluaran i-Sinar, membolehkan ahli yang menghadapi masalah kewangan untuk mengakses simpanan persaraan mereka untuk menampung keperluan hidup semasa.

Namun, pada penghujung tahun 2020 pandemik ini belum menunjukkan sebarang tanda bahawa ia akan reda dan rakyat Malaysia masih bergelut dengan kesannya terhadap kesihatan, ekonomi, dan kewangan mereka.
Ini jelas menunjukkan bahawa, perancangan perspektif jangka panjang perlu dibangunkan untuk mengukuhkan perlindungan sosial bagi semua rakyat Malaysia dan pelbagai usaha perlu dilaksanakan oleh pihak berkepentingan yang berkaitan.

Berpandukan objektif ini, KWSP akan menilai semula peranan KWSP dalam perlindungan sosial secara berterusan bagi memastikan bahawa tidak ada pihak yang terpinggir daripada usaha KWSP dalam membantu ahli mencapai masa depan yang lebih baik.
KELESTARIAN DALAM NORMA BARU: PELAN BOLEH UBAH TIGA TAHUN KWSP 2020 - 2022 Sebelum tahun 2020, KWSP telah pun mengambil langkah persediaan bagi menghadapi persekitaran yang tidak stabil, tidak pasti, kompleks, dan kurang jelas (VUCA) dengan memulakan program transformasi digital dan penerapan minda yang berpusat pada pelanggan.

Pelbagai peristiwa yang berlaku pada tahun 2020 telah membuktikan bahawa hala tuju KWSP berada pada landasan yang betul.
Langkah-langkah ini dikekalkan sebagai strategi utama dalam Pelan Boleh Ubah Tiga Tahun KWSP 2021 - 2023 (E3YRP).

Salah satu strategi utama KWSP yang dinyatakan dalam E3YRP 2021 - 2023, adalah untuk meningkatkan dan memberikan pengalaman pelanggan yang bersesuaian dengan keperluan mereka.

Kami menyedari akan perubahan demografi dalam kalangan ahli dan peningkatan penggunaan produk dan perkhidmatan digital yang disediakan.
Warga natif digital dari golongan muda telah mula memasuki alam pekerjaan dan menjadi ahli KWSP, manakala masih ramai daripada generasi bukan digital telah mula menggunakan teknologi sepanjang tempoh PKP.

Namun, kami menyedari bahawa setiap ahli mempunyai keperluan dan pilihan yang unik bersesuaian dengan situasi masing-masing.
Selaras dengan budaya kerja dan pemikiran yang mengutamakan pelanggan, KWSP menuju kearah memberikan perkhidmatan dan produk yang disesuaikan dengan pelbagai keperluan asas ahli kami yang berbeza dan memastikan semua pihak mendapat perkhidmatan pelanggan yang terbaik.

Proses transformasi digital yang dilaksanakan telah mempersiapkan organisasi untuk menyokong pencapaian matlamat organisasi yang telah ditetapkan dalam E3YRP 2021-2023.
Kami akan meneruskan momentum ini dengan menyediakan produk dan perkhidmatan baharu dan lebih baik melalui platform digital.

Kami akan terus meningkatkan pengalaman pengguna dengan menambah baik sistem teknologi maklumat bagi menampung jumlah transaksi yang lebih tinggi, meningkatkan keselamatan siber, dan meminimumkan risiko-risiko lain yang berkaitan dengan teknologi.
KWSP akan melabur dalam program peningkatan kemahiran atau pemahiran semula kakitangan untuk memupuk kakitangan yang sesuai dengan keperluan masa depan serta mempunyai kompetensi dan kemahiran yang diperlukan agar kekal efektif dalam persekitaran kerja yang pantas berubah.

Kami juga merancang untuk menggandakan usaha bagi meningkatkan literasi kewangan dalam kalangan rakyat Malaysia.
Antara inisiatif berterusan KWSP ialah penyediaan khidmat nasihat kewangan yang seimbang kepada ahli kami agar mereka dapat membuat keputusan kewangan yang lebih tepat dan dapat melalui tempoh persaraan yang terjamin.
117 ULASAN BAHAGIANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20208 BAHAGIAN STRATEGI Berikutan peningkatan dalam sektor ekonomi dan tenaga kerja tidak formal, KWSP berusaha untuk meningkatkan keterlibatan dengan pekerja tidak formal, yang secara umumnya mempunyai tahap perlindungan sosial yang lebih rendah, untuk memberi kesedaran tentang kesejahteraan sosial dan panduan yang sewajarnya.
Sejak beberapa tahun kebelakangan ini, KWSP sering menekankan keperluan untuk menerapkan amalan kelestarian dalam organisasi bagi menguruskan cabaran dalam persekitaran VUCA.

Seiring dengan pertambahan bilangan penduduk di peringkat global, pelbagai kesan lain juga mengalami peningkatan seperti pencemaran, pemanasan global, sisa buangan, dan pengurangan sumber semula jadi.
Pelaksanaan pelaburan dan perniagaan lestari merupakan suatu proses yang panjang yang telah dimulakan oleh KWSP sejak beberapa tahun yang lepas.

KWSP telah mengumumkan komitmennya terhadap amalan baik alam sekitar, sosial, dan tadbir urus (ESG) dan prinsip pelaburan mampan.

KWSP juga telah menandatangani Prinsip-prinsip Pelaburan Bertanggungjawab dibawah Pertubuhan Bangsa-Bangsa Bersatu (UN PRI) setahun setelah Malaysia menjadi penandatangan Matlamat Pembangunan Lestari PBB pada tahun 2018.
TINJAUAN TAHUN 2020 Memupuk Hubungan Melalui Komunikasi Berikutan pandemik COVID-19, KWSP telah melancarkan beberapa inisiatif luar jangkaan seperti kemudahan Pengeluaran i-Lestari dan Pengeluaran i-Sinar, penyesuaian jadual caruman untuk majikan, dan membenarkan pelanjutan tarikh pembayaran untuk caruman majikan dalam sektor PKS.
Dalam menyediakan maklumat penting kepada pihak berkepentingan dalaman dan juga luaran, kami membangunkan pelbagai pelan komunikasi bagi memberi makluman mengenai matlamat, strategi, dan tindakan KWSP, pada masa yang sama mendapatkan maklum balas yang berharga daripada mereka.

Kerjasama rapat dengan golongan ini dengan mengambil kira pendapat dan maklum balas mereka membolehkan kami menjalankan perancangan komunikasi yang berkesan untuk ahli secara khusus.
Memahami harapan dan keprihatinan semua pihak berkepentingan dan kerjasama yang dijalankan dengan institusi kewangan dan pihak Kerajaan telah memastikan komunikasi yang konsisten dan tepat kepada orang ramai.

Bagi menjangkau khalayak yang lebih luas dan terperinci, maklumat disebarkan secara efisien melalui pelbagai saluran, termasuk laman web rasmi KWSP, saluran media sosial, media tradisional dan digital, individu berpengaruh, pemimpin pendapat, dan pembuat dasar.
Kami percaya bahawa kunci untuk memperkukuhkan hubungan KWSP dengan ahli dan pihak berkepentingan adalah dengan menyediakan komunikasi terbuka antara semua pihak, memahami harapan dan keperluan mereka, serta menerima maklum balas dan menangani permasalahan mereka dengan cekap dan berkesan.

Memperkukuhkan Posisi Kepimpinan KWSP dalam Kesejahteraan Sosial Di peringkat nasional, KWSP terlibat dalam Majlis Perlindungan Sosial Malaysia (MySPC), yang dipengerusikan oleh Perdana Menteri sejak 2020.
Melalui penglibatan ini, KWSP berharap dapat mempercepatkan kemajuan agenda perlindungan sosial semasa pandemik COVID-19.

Pengurusan KWSP juga mengambil bahagian dalam pelbagai program pengucapan umum seperti program bual bicara radio, webinar, dan forum dalam talian untuk menerangkan tentang masalah yang dihadapi oleh rakyat Malaysia dari segi kesejahteraan sosial, isu penuaan, dan perancangan persaraan.
Di peringkat antarabangsa, KWSP adalah ahli Persatuan Keselamatan Sosial Antarabangsa (ISSA), sebuah organisasi terkemuka di dunia yang disertai pelbagai institusi keselamatan sosial, jabatan kerajaan, dan agensi dari 160 buah negara.

KWSP telah mengambil bahagian dalam beberapa acara teknikal, webinar, dan seminar yang dianjurkan oleh ISSA, dan melaluinya berpeluang untuk berkongsi idea, bertukar pendapat, dan memanfaatkan pengalaman agensi dan negara anggota lain.
118 ULASAN BAHAGIANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20208 KWSP juga merupakan ahli Persatuan Keselamatan Sosial ASEAN (ASSA).

KWSP telah dijemput oleh G20 untuk membincangkan tentang peranan yang dimainkan oleh KWSP sebagai dana simpanan persaraan dalam menyumbang kepada pembangunan negara.

Mempromosi Literasi Kewangan Literasi kewangan telah menjadi salah satu agenda utama KWSP untuk sekian lama kerana ia merupakan perkara yang masih perlu diberi perhatian.
Untuk merancang masa depan yang lebih baik, adalah penting bagi ahli KWSP untuk melengkapkan diri dengan pengetahuan asas kewangan.

Dengan ini, KWSP telah menganjurkan Minggu Literasi Kewangan 2020 (FLW2020) untuk memberi kesedaran dan mendidik para peserta mengenai amalan terbaik dalam pengurusan kewangan demi kesejahteraan kewangan yang berterusan.
Acara ini diadakan untuk menyokong Minggu Celik Kewangan yang dianjurkan oleh Jaringan Pendidikan Kewangan (FEN), yang diterajui oleh Bank Negara Malaysia dan Suruhanjaya Sekuriti Malaysia dan dianggotai oleh pelbagai agensi termasuk Agensi Kaunseling dan Pengurusan Kredit (AKPK), Permodalan Nasional Berhad, dan Bursa Malaysia Berhad.

KWSP telah membantu Jabatan Perkhidmatan Awam untuk mengembangkan modul latihan Kesejahteraan Kewangan untuk kakitangan kerajaan.
Kami juga terus bekerjasama dengan Pusat Penyelidikan Kesejahteraan Sosial (SWRC), Universiti Malaya untuk mengemas kini dan memperluas liputan panduan perbelanjaan Belanjawanku kepada rakyat Malaysia yang tinggal di bandar-bandar di luar Lembah Klang.

Orang ramai boleh merujuk kepada Belanjawanku untuk mendapatkan gambaran umum tentang perbelanjaan minimum bulanan agar mereka dapat mencapai taraf hidup yang berpatutan berdasarkan situasi semasa masing-masing.
KWSP juga bekerjasama dengan Perbadanan Ekonomi Digital Malaysia (MDEC) bagi mendekati pekerja dalam sektor tidak formal melalui pengusaha-pengusaha platform gig untuk menggalakkan pekerja bebas, pekerja gig, dan individu yang bekerja sendiri menyimpan dengan KWSP demi masa depan mereka.

Membangunkan Kumpulan Bakat Pandemik COVID-19 telah mempercepat penerimaan umum dan penggunaan pembelajaran dalam talian BAHAGIAN STRATEGI oleh kakitangan KWSP.
Kami meningkatkan keupayaan EPF Learning Campus (ELC) dengan membangun dan melancarkan sistem pengurusan pembelajaran yang dijenamakan sebagai EPF Learning Xperience (LX).

LX menyediakan kandungan pembelajaran seperti kursus dalam talian, video, bahan pembelajaran kendiri, dan kursus POWERLinkedIn (LinkedIn Learning) yang boleh diakses pada bila-bila masa, di mana sahaja, melalui peranti mudah alih dan komputer.
Pada tahun 2020, ELC memperkenalkan dua program pembangunan berstruktur untuk meningkatkan keupayaan pegawai khidmat nasihat persaraan dan majikan kami.

ELC juga mengadakan kursus untuk mendidik kakitangan KWSP mengenai pelbagai aspek perlindungan sosial dalam konteks tempatan, dan mengadakan sesi perkongsian pengetahuan bersama pelbagai agensi lain dan pemimpin industri.
Acara Knowledge Fair (KFAIR) tahunan KWSP pada tahun 2020 membawa tema "Hidup dalam Normal Baru" dianjurkan secara maya disebabkan pandemik.

Acara dua hari ini membincangkan dan meneroka cabaran yang dihadapi oleh kakitangan KWSP ketika mereka menyesuaikan diri dengan budaya kerja dan peluang baru dalam persekitaran digital.
Bagi program luaran pula, kami telah menganjurkan Program Pendidikan Majikan yang disertai 994 buah syarikat untuk mendidik mereka tentang kewajiban mereka terhadap KWSP, Pertubuhan Keselamatan Sosial (PERKESO), Lembaga Hasil Dalam Negeri (LHDN), dan Jabatan Tenaga Kerja.
119 ULASAN BAHAGIANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20208 BAHAGIAN STRATEGI Membangunkan Kompetensi Kakitangan Bagi membina tenaga kerja yang bersedia untuk masa depan dan mampu menyesuaikan diri dengan perubahan pantas ke arah digitalisasi dan perubahan pada persekitaran kerja, KWSP telah melancarkan tiga inisiatif utama: pewujudan sistem perlindungan sosial yang menyeluruh dan komprehensif terutama bagi golongan rentan yang kurang mendapat perhatian.
Ini sejajar dengan usaha kami untuk meningkatkan literasi kewangan dan melengkapkan ahli dengan pengetahuan untuk merancang masa depan mereka.

(a) Rangka Kerja Penilaian Bakat (c) Memimpin agenda kelestarian Rangka kerja berdasarkan penyelidikan ini dapat membantu kakitangan KWSP memahami kompetensi teknikal dan fungsi yang diperlukan untuk cemerlang.
(b) Model Kompetensi Tingkah Laku dan Kepemimpinan Model kompetensi yang menyediakan panduan kepada pemimpin untuk mencapai objektif mereka, sama ada sebagai individu atau pasukan.

(c) HR Reflect Audit terperinci ke atas keseluruhan fungsi sumber manusia terhadap prestasi semasa dilaksanakan dengan berpandukan Hala Tuju Transformasi Sumber Manusia yang komprehensif dan akan menjadikan jabatan sumber manusia sebagai ejen perubahan yang berorientasikan masa depan bagi KWSP.
BIDANG FOKUS UNTUK TAHUN 2021 KWSP akan memberi tumpuan kepada empat bidang utama seperti yang digariskan dalam E3YRP 2021-2023: (a) Membina semula kepercayaan dan reputasi Seiring dengan fokus strategik organisasi dalam pengalaman pelanggan, KWSP akan berusaha lebih gigih untuk memperkukuhkan reputasi organisasi, bagi meningkatkan kepercayaan orang ramai terhadap integriti dan nilai KWSP, terutamanya dalam kalangan generasi muda yang sangat mementingkan faktor-faktor ini sebelum mempercayai sesebuah organisasi.
Kami berharap dapat menjalankan inisiatif keterlibatan yang berkesan, melaksanakan strategi organisasi, dan menjalin hubungan yang bermanfaat dengan ahli kami.

(b) Memperjuangkan inisiatif berkaitan kesejahteraan sosial Pelbagai peristiwa yang berlaku pada tahun 2020 telah menguji keberkesanan sistem perlindungan sosial di Malaysia.

Jelas sekali sebuah sistem yang lebih komprehensif diperlukan bagi menyokong kelangsungan hidup rakyat semasa berlakunya sesuatu krisis.
KWSP akan terus memperjuangkan Kelestarian tetap menjadi salah satu keutamaan utama KWSP menjelang tahun 2021.

Bagi memastikan pelaksanaan yang berkesan, kami berpegang teguh pada penerapan konsep kelestarian dalam setiap aspek organisasi termasuk pelaburan, pembuatan keputusan, dasar sumber manusia, proses dan amalan, serta budaya dan pemikiran berasaskan kelestarian dalam kalangan kakitangan kami.
Melalui posisi strategik KWSP dan jaringan pihak berkepentingan dan pelanggan yang luas, kami berharap untuk menjadi peneraju kelestarian di peringkat nasional.

Kami juga mempunyai aspirasi untuk menjadi organisasi contoh dalam menjalankan inisiatif kelestarian – iaitu dalam aspek polisi dan amalan dalaman, pelaksanaan piawaian kelestarian dan dasar ke atas syarikat pelaburan kami, pembekal dan rakan niaga, serta dalam mempengaruhi jaringan pihak berkepentingan kami untuk mengamalkan kehidupan lestari.
(d) Organisasi yang bersedia untuk masa depan Selain memastikan bahawa projek-projek utama kami dapat dilaksanakan dengan baik, adalah penting bagi kami untuk melabur dalam meningkatkan dan mendidik kakitangan kami untuk masa depan yang pantas berubah.

Dengan ini, KWSP dapat terus memberikan perkhidmatan pelanggan yang terbaik dan melindungi simpanan ahli dalam persekitaran VUCA.
Terdapat keperluan mendesak untuk KWSP dan semua pihak berkepentingan dalam sistem perlindungan sosial negara mengambil langkah proaktif bagi memperlengkapkan diri dengan kemahiran dan keupayaan untuk melaksanakan penyelesaian yang lestari dan menyeluruh untuk kesejahteraan sosial jangka panjang semua rakyat Malaysia, terutamanya golongan rentan.
Dengan memajukan dan memperkuat sistem perlindungan sosial, KWSP berharap dapat meningkatkan kemampuan kolektif semua pihak untuk bersedia, bertindak balas, dan pulih daripada krisis pada masa depan.
120 ULASAN BAHAGIANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20208 BAHAGIAN TEKNOLOGI DIGITAL Muhammad Afhzal Abdul Rahman | Ketua Pegawai Teknologi Digital Pandemik COVID-19 dan sekatan pergerakan yang dilaksanakan kerajaan sepanjang tahun 2020 telah menyerlahkan kepentingan penggunaan penyelesaian teknologi dalam memastikan KWSP kekal beroperasi dan terus menyediakan perkhidmatan kepada pelanggan yang terdiri daripada ahli dan majikan.
Di samping itu, adalah penting bagi KWSP untuk membantu ahli yang menghadapi kesulitan kewangan mengharungi tahun yang mencabar ini.

Bagi memenuhi permintaan luar jangkaan pada tahun 2020, Bahagian Teknologi Digital telah bangkit untuk mendepani cabaran dan mempercepat inisiatif Digitasi KWSP 2025 yang merupakan pelan hala tuju KWSP ke arah menjadi sebuah organisasi digital menjelang tahun 2025.
Sebagai sebuah organisasi dana simpanan persaraan negara, KWSP perlu menghubungkan, melibatkan dan memperkasakan pelanggan agar kekal relevan pada masa hadapan.

Bahagian ini mengambil langkah segera untuk memenuhi keperluan teknologi digital yang diperlukan oleh KWSP.

Ini termasuk menyediakan penyelesaian digital untuk ahli dan majikan, menyokong operasi organisasi, dan membantu kakitangan dalam peralihan norma kerja jarak jauh (bekerja dari rumah).
Bahagian ini menerima guna perkakasan digital dan menambah baik infrastruktur organisasi untuk mengupayakan akses dan perhubungan jarak jauh.

Bahagian ini juga melaksanakan inisiatif keselamatan siber untuk meningkatkan kesedaran dan melindungi organisasi daripada ancaman keselamatan siber.
MEMPERCEPAT AGENDA DIGITAL KWSP Bagi memastikan KWSP dapat beroperasi dan menyediakan perkhidmatan kepada ahli dan majikan di samping mematuhi pelbagai Perintah Kawalan Pergerakan (PKP), Bahagian Teknologi Digital telah memulakan beberapa inisiatif utama untuk melaksanakan dan memberikan penyelesaian digital yang selamat kepada pelanggan KWSP.
Bagi memenuhi keperluan ahli, terutama mereka yang menghadapi kesukaran kewangan semasa pelaksanaan PKP yang pertama, KWSP telah membangunkan kemudahan Pengeluaran i-Lestari yang menggunakan pengkomputeran awan (cloud computing) dan amalan tangkas lain untuk mempercepat pembangunannya.

KWSP juga melancarkan Janji Temu Online (JTO) yang merupakan platform janji temu secara dalam talian berasaskan pengkomputeran awan untuk menjaga keselamatan pelanggan dan kakitangan KWSP di pejabat- pejabat cawangan.
JTO membolehkan mereka mematuhi prosedur operasi standard (SOP) dan langkah penjarakan fizikal yang ditetapkan.

Platform ini juga membantu KWSP menguruskan jumlah pengunjung yang hadir ke kaunter perkhidmatan untuk berurusan secara berperingkat.

Di samping itu, KWSP juga telah melaksanakan beberapa inisiatif digital yang lain termasuk kemudahan Pengeluaran i-Sinar dan Program Bantuan Majikan COVID-19 (e-CAP), yang memberikan pilihan kepada majikan untuk menangguhkan dan menyusun semula sumbangan mereka.
121 ULASAN BAHAGIANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20208 BAHAGIAN TEKNOLOGI DIGITAL Selain daripada menyediakan perkhidmatan digital dengan pantas kepada ahli dan majikan, KWSP juga perlu segera membuat penyesuaian untuk norma kerja yang baharu iaitu bekerja dari rumah.
Bahagian ini mempercepat penyediaan perkakasan teknologi untuk kakitangan, menjalankan mesyuarat secara dalam talian dan mengupayakan pelaksanaan kerja jarak jauh dengan menyediakan perkhidmatan seperti Enterprise Mobile Management (EMM) dan infrastruktur Virtual Private Network (VPN).

EMM dan VPN membolehkan kakitangan KWSP bekerja dari rumah dengan mudah dan mengakses data dalaman dari luar premis KWSP.
Dalam mengutamakan keselamatan sistem KWSP, Bahagian ini menerapkan langkah-langkah dan penyelesaian digital yang boleh mengurangkan risiko dan ancaman siber.

Bahagian ini untuk turut mendidik kakitangan KWSP berkenaan keselamatan siber dan amalan terbaik untuk mencegah jenayah siber.
Jadual 1: Transaksi Melalui Laman Web dan Aplikasi Mudah Alih STATISTIK UTAMA Log masuk i-Akaun (Ahli) Log masuk aplikasi mudah alih i-Akaun Log masuk i-Akaun (Majikan) Log masuk aplikasi mudah alih e-Caruman Majikan yang berdaftar dengan i-Akaun Majikan yang berdaftar dengan i-Akaun Ahli yang berdaftar dengan i-Akaun Pelawat ke laman web KWSP Interaksi i-Akaun Muat turun aplikasi mudah alih i-Akaun Muat turun aplikasi mudah alih e-Caruman 2019 19.9 juta 33.3 juta 12.6 juta 221,076 518,935 99.36% 7.6 juta 28.2 juta 65.9 juta 1.5 juta 134,000 2020 32.5 juta 95.7 juta 14.6 juta 260,977 531,343 99.43% 8.9 juta 64.2 juta 143.0 juta 4.5 juta 217,000 Pencapaian Utama Pada Tahun 2020 Ringkasan pencapaian utama Bahagian Teknologi Digital untuk tahun ini: Produk dan Perkhidmatan Dengan Infrastruktur Teknologi Maklumat (IT) Sokongan Teknologi dan Inisiatif Keselamatan Siber Inisiatif Pembangunan Modal Insan • Pengeluaran i-Lestari • Pengeluaran i-Sinar • Pengeluaran Kesihatan – Rawatan Kesuburan • Program Bantuan Majikan COVID-19 (e-CAP) • e-Pengeluaran bagi • Portal sehenti IT • Pengurusan kitaran hayat aplikasi • Gerbang API • Perisikan ancaman • Pelaksanaan Program Keselamatan Siber Pengeluaran Umur 50/55/60 • Kempen kejuruteraan sosial • Janji Temu Online (JTO) • ELYA Chatbot dan Live Chat (social engineering) • Latihan dan pensijilan dalam Agile Project Management • Kesedaran keselamatan siber • Kecemerlangan kepimpinan dan tingkah laku 122 ULASAN BAHAGIANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20208
 BAHAGIAN TEKNOLOGI DIGITAL FUNGSI TERAS Bahagian Teknologi Digital ditubuhkan pada tahun 2019 bagi mengupayakan dan menyokong keseluruhan operasi KWSP dengan membina, mewujudkan dan mengendalikan penyelesaian dan perkhidmatan teknologi digital yang berpusatkan pelanggan, inovatif, mantap dan selamat.
Bahagian ini disokong oleh empat jabatan dan dua seksyen (rujuk Rajah 1).
Rajah 1: Jabatan dan Seksyen di Bawah Bahagian Teknologi Digital Bahagian Teknologi Digital Jabatan Penyelesaian Teras Digital Jabatan Penyelesaian Enterpris Digital Jabatan Infrastruktur Digital Jabatan Keselamatan Digital Seksyen Pengurusan Perkhidmatan Digital Seksyen Penyelesaian Platform Digital Tanggungjawab setiap jabatan: (a) Jabatan Penyelesaian Teras Digital mematuhi piawaian dan peraturan seni bina teknikal KWSP untuk memenuhi kapasiti dan prestasi teknologi maklumat yang diperlukan oleh operasi KWSP.
Membangunkan, melaksanakan dan mengendalikan penyelesaian teknologi ke atas sistem teras dana simpanan KWSP.

Ini membolehkan KWSP melaksanakan mandat keselamatan sosial dalam memberikan perlindungan keselamatan sosial yang mencukupi, liputan yang lebih baik, perkhidmatan pelanggan yang cekap serta pengutipan caruman yang tepat pada masanya.

(d) Jabatan Keselamatan Digital Melindungi kerahsiaan, integriti dan keselamatan maklumat kritikal dan aset KWSP.
Jabatan ini juga membangunkankan dan menguatkuasakan dasar dan prosedur keselamatan digital berdasarkan piawaian industri, amalan terbaik, dan garis panduan peraturan yang relevan.

(b) Jabatan Penyelesaian Enterpris Digital Tanggungjawab setiap seksyen: Membangunkan, melaksanakan dan mengendalikan penyelesaian teknologi bagi keseluruhan organisasi KWSP yang menyokong keperluan maklumat korporat, operasi, pengurusan serta keperluan pelaburan di samping penyelesaian kolaborasi dan produktiviti.
(c) Jabatan Infrastruktur Digital Membangunkan, melaksanakan dan mengendalikan infrastruktur teknologi untuk menyokong sistem serta operasi digital KWSP.

Jabatan ini menyediakan infrastruktur digital yang kukuh, berdaya tahan, selamat dan mempunyai kebolehpulihan yang (a) Seksyen Pengurusan Perkhidmatan Digital Memastikan penyampaian perkhidmatan teknologi digital selaras dengan perjanjian tahap perkhidmatan (SLA) dan proses pengurusan perkhidmatan yang dipersetujui.
Seksyen ini juga mengurus dan menyelia perancangan strategik, pengurusan kewangan, pengurusan kontrak pembekal teknologi maklumat serta pentadbiran perancangan sumber yang menyokong penyampaian, pelaksanaan dan penyelenggaraan perkhidmatan teknologi digital untuk operasi KWSP.
123 ULASAN BAHAGIANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20208 BAHAGIAN TEKNOLOGI DIGITAL (b) Seksyen Penyelesaian Platform Digital (d) Mengukuhkan ketahanan keselamatan siber Memastikan perancangan portfolio teknologi yang padu dan tadbir urus seni bina meliputi organisasi dengan memacu keseluruhan strategi teknologi, piawaian dan amalan terbaik seni bina untuk mencapai objektif perniagaan dan operasi KWSP dengan berkesan.
Seksyen ini turut mereka bentuk dan melaksanakan penyelesaian digital untuk mempertingkatkan saluran dan titik sentuh digital, penyelesaian perisian tengah yang membolehkan KWSP bekerjasama dengan rakan kongsi dan merentasi ekosistem serta penyelesaian data dan analitik yang membolehkan organisasi KWSP dipacu data.

DIGITASI KWSP 2025 Digitasi KWSP 2025 merupakan rangka kerja Bahagian Teknologi Digital ke arah pendigitalan KWSP menjelang tahun 2025.
Rangka kerja ini dibangunkan untuk menjadikan KWSP sebagai sebuah organisasi keselamatan sosial yang dipercayai dan relevan yang dapat menghubungkan, melibatkan dan memperkasakan pelanggan.

Digitasi KWSP 2025 mempunyai lima teras utama: organisasi Ini termasuk model operasi keselamatan siber berkonsepkan zero-trust, meningkatkan kesedaran dan latihan keselamatan siber.
(e) Membina platform teknologi digital yang mantap, secara bermodul dan boleh skala Ini merangkumi platform perkhidmatan mikro bagi pelbagai saluran, pusat data berdasarkan perisian, pengkomputeran awan secara hibrid, dan seni bina perusahaan secara bermodul.

MELANGKAH KE HADAPAN Pandemik COVID-19 yang masih belum berkesudahan telah mewujudkan keperluan mendesak bagi kami untuk mempercepat agenda KWSP Digital.
Bahagian Teknologi Digital akan terus memastikan aspirasi KWSP Digital ini mencapai objektif strategik dan operasi yang ditetapkan, iaitu: (a) Membangunkan penyelesaian digital yang membolehkan pelaksanaan mandat KWSP dan memenuhi keperluan ahli dan majikan (b) Membangunkan keupayaan teknologi yang (a) Membina pasukan teknologi yang bermotivasi dan menyokong aspirasi digital organisasi berkebolehan Ini termasuk inisiatif seperti latihan, pensijilan, pengembangan bakat, pengembangan kepemimpinan, serta peningkatan sumber dan kerjasama strategik.
(b) Menyampaikan penyelesaian inovatif dengan pantas Ini merangkumi penggunaan amalan DevOps dan Agile, dan pembangunan penyampaian perkhidmatan digital.

(c) Menyediakan perkhidmatan terbaik kepada pelanggan Inisiatif yang bertujuan untuk memberikan perkhidmatan terbaik kepada pelanggan termasuk menumpukan kepada kecemerlangan perkhidmatan, membina budaya peningkatan perkhidmatan yang berterusan, serta menyediakan digitalisasi dan peringkasan proses.
(c) Melaksana, mengendali dan mengekalkan infrastruktur teknologi yang mantap, selamat dan berskala untuk menyokong platform digital organisasi Bagi tahun 2021, kami merancang untuk mengintegrasikan teknologi bangunan pintar di ibu pejabat korporat baharu KWSP di Kwasa Damansara yang sedang dalam pembinaan.
Ibu pejabat baharu ini juga akan menempatkan pusat data generasi baharu yang akan mendorong kecekapan kos, menyokong permintaan perniagaan yang tidak dijangka, menyediakan kepantasan dan ketangkasan, dan membolehkan pentadbiran langkah-langkah keselamatan siber yang berkesan.

Bahagian Teknologi Digital akan terus memperkukuh aspirasi digital KWSP dengan menyediakan penyelesaian digital dan infrastruktur teknologi yang mantap.
Ini akan membantu KWSP mencapai matlamat strategik dan operasinya serta memastikan pengurusan operasi yang selamat, boleh skala dan berdaya tahan.
124 ULASAN BAHAGIANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20208 STATISTIK Kadar Dividen Peratusan (%) 2.50 4.00 5.00 5.25 5.50 5.75 5.80 5.85 6.60 7.00 7.25 8.00 8.50 8.00 7.50 7.70 6.70 6.84 6.00 10.0 – 9.0 – 8.0 – 7.0 – 6.0 – 5.0 – 4.0 – 3.0 – 2.0 – 1.0 – 0 – 1952 I 1959 1960 I 1962 1963 1964 1965 I 1967 1968 I 1970 1971 1972 I 1973 1974 I 1975 1976 I 1978 1979 198 0 I 1982 1983 I 1987 198 8 I 1994 1995 1996 1997 I 1998 1999 20 0 0 Peratusan (%) 5.00 4.25 4.50 4.75 5.00 5.15 5.80 4.50 5.65 5.80 6.00 6.15 6.35 6.75 6.40 5.70 6.90 6.15 5.45 5.
20 6.40 5.90 5.0 0 4.90 10.0 – 9.0 – 8.0 – 7.0 – 6.0 – 5.0 – 4.0 – 3.0 – 2.0 – 1.0 – 0 – Simpanan Konvensional Simpanan Shariah ULASAN BAHAGIANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20208 STATISTIK Senarai Pelaburan Ekuiti bagi 30 Syarikat Teratas yang Tersenarai di Bursa Malaysia Setakat 31 Disember 2020 No Kaunter 1 Malaysia Building Society Bhd 2 RHB Bank Bhd 3 Malaysian Resources Corp Bhd Bermaz Auto Bhd Tenaga Nasional Bhd Axiata Group Berhad Telekom Malaysia Bhd IJM Corp Berhad Sime Darby Plantation Bhd 10 CIMB Group Holdings Bhd 11 12 13 Yinson Holdings Bhd Public Bank Bhd Sunway Real Estate Investment Bhd 14 Digi.com Berhad 15 Malaysia Airport Hldgs Bhd 16 Gamuda Bhd 17 Axis Real Estate Investment Bhd 18 19 Kuala Lumpur Kepong Bhd Panasonic Manufacturing Malaysia Bhd 20 Malayan Banking Bhd 21 IJM Plantations Bhd 22 Alliance Bank Malaysia Berhad 23 Aeon Co. (M) Bhd 24 UMW Holdings Bhd 25 Capitamalls Malaysia Trust Bhd 26 27 28 29 30 BIMB Holdings Berhad KPJ Healthcare Bhd IOI Corporation Bhd Petronas Gas Bhd United Plantations Bhd 126 % Pegangan ULASAN BAHAGIANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20208 STATISTIK Pengeluaran Mengikut Skim Tahun 2020 2019 2018
 Bilangan Amaun (RM) Bilangan Amaun (RM) Bilangan Amaun (RM) Skim Pengeluaran 55 Tahun 50 Tahun 425,466 15,582,812,067 441,376 15,920,504,550 379,504 15,810,003,592 140,339 4,406,028,593 157,291 4,617,493,415 160,751 4,712,680,608 Hilang Upaya 3,715 312,852,388 5,821 467,210,536 5,347 391,038,106 Meninggalkan Negara 2,516 298,544,851 4,132 437,102,971 4,032 392,456,135 Beli Rumah Pertama 77,476 1,779,132,436 99,280 2,326,197,915 91,074 2,149,948,937 Beli Rumah Kedua 3,706 150,236,915 5,216 214,896,132 5,147
 214,335,855 Ansuran Bulanan Pinjaman Perumahan Mengurangkan/Menyelesaikan Baki Pinjaman Perumahan 1,934,956 1,829,954,489 2,281,335 2,237,909,683 1,748,506 2,001,339,134 46,839 736,103,722 103,110 1,271,681,009 112,518 1,447,916,201 Kesihatan Kematian 7,388 79,308,233 8,228 82,350,228 6,972 67,403,964 61,392 1,928,253,887 65,747 1,961,714,928 62,658 1,715,602,371 Bayaran Berkala 478 715,169 516 900,993 587 1,122,730 Skim Pelaburan Ahli 563,488 7,248,263,535 556,130 5,640,324,723 851,933 9,251,295,326 Pekerja Berpencen/Pesara Pilihan Pendidikan 63,157 2,122,814,777 82,626 2,327,308,586 76,395 2,259,743,254 136,629 679,755,980 101,239 1,157,231,920 140,769 1,319,456,484 Skim Bayaran Bulanan 72 110,392 63 79,522 61 76,842 Pengeluaran Melebihi RM1 Juta 24,372 1,778,049,534 13,565 1,553,231,588 8,018 1,518,976,786 Mengerjakan Haji 478 1,319,456 777 2,173,872 427 1,209,732 60 Tahun 261,929 4,803,201,871 289,036 4,557,680,814 238,551 4,330,245,142 Pengeluaran Rumah Prima 36 11,520 25,556,630 14,546,881,726 36 - 11,520 - 13 - 3,820 - 29,311,062 58,284,351,540 4,215,524 44,776,004,907 3,893,263 47,584,855,018 i-Lestari Jumlah Dividen Tahunan* 3,888 60,860,161 3,114 56,401,957 2,816 56,771,016 Faedah Tambahan Untuk Kematian dan Hilang Upaya (i) Faedah Tambahan Kematian 20,310 50,775,050 22,186 55,465,000 21,387 53,485,571 (ii) Faedah Tambahan Hilang Upaya 646 3,230,000 1,033 5,165,000 883 4,415,000 Jumlah (i) dan (ii) 20,956 54,005,050 23,219 60,630,000 22,270 57,900,571 *
 Pengeluaran dividen tahunan 2020 diselaraskan kepada belanja dividen tahun semasa 127 ULASAN BAHAGIANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20208 STATISTIK Pengeluaran Mengikut Skim (Samb.)
Tahun 2017 2016 2015 Bilangan Amaun (RM) Bilangan Amaun (RM) Bilangan Amaun (RM) Skim Pengeluaran 55 Tahun 50 Tahun 384,795 17,757,759,010 597,771 22,292,814,380 530,459 21,400,282,188 154,063 4,738,729,140 156,991 4,855,680,128 148,699 4,831,008,499 Hilang Upaya 5,117 384,862,946 4,986 360,187,080 4,659 331,060,249 Meninggalkan Negara 4,377 427,410,624 4,467 445,244,745 3,833 377,363,471 Beli Rumah Pertama 86,642 2,107,996,219 83,401 2,002,008,099 89,071 2,108,847,723 Beli Rumah Kedua 5,259 230,516,514 5,752 248,452,755 6,483 287,952,489 Ansuran Bulanan Pinjaman Perumahan Mengurangkan/Menyelesaikan Baki Pinjaman Perumahan 1,916,877 1,825,859,748 1,781,735 1,666,932,871 1,551,508 1,375,789,117 130,604 1,702,566,769 148,368 1,956,998,548 164,033 2,212,036,347 Kesihatan Kematian 6,266 58,183,038 6,101 57,000,845 5,692 51,766,353 58,281 1,520,975,212 56,172 1,386,616,927 52,127 1,233,878,032 Bayaran Berkala 719 1,391,202 1,159 2,553,546 1,745 3,586,456 Skim Pelaburan Ahli 747,243 8,788,079,682 710,064 6,305,355,131 602,262 5,855,745,390 Pekerja Berpencen/Pesara Pilihan Pendidikan 118,146 2,484,663,943 51,230 2,157,264,348 48,688 1,972,703,781 89,328 1,695,206,787 86,725 1,459,203,497 65,787 578,180,407 Skim Bayaran Bulanan 77 86,357 98 108,725 104 116,982 Pengeluaran Melebihi RM1 Juta 6,882 1,320,100,522 6,143 1,369,448,593 5,471 1,390,499,668 Mengerjakan Haji 705 1,965,567 415 1,151,035 390 1,044,974 60 Tahun 170,963 4,106,433,535 Pengeluaran Rumah Prima i-Lestari Jumlah 2 - 19,140 - - - - - - - - - - - - -
 3,886,346 49,152,805,954 3,701,578 46,567,021,253 3,281,011 44,011,862,123 Dividen Tahunan* 2,566 44,006,013 2,267 42,372,125 1,971 39,595,874 Faedah Tambahan Untuk Kematian dan Hilang Upaya (i) Faedah Tambahan Kematian 18,225 45,565,000 18,180 45,459,162 17,201 43,007,028 (ii) Faedah Tambahan Hilang Upaya 864 4,320,000 821 4,105,000 771 3,857,000 Jumlah (i) dan (ii) 19,089 49,885,000 19,001 49,564,162 17,972 46,864,028 * Pengeluaran dividen tahunan 2020 diselaraskan kepada belanja dividen tahun semasa 128
 ULASAN BAHAGIANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20208 Profil Ahli Aktif Mengikut Lingkungan Simpanan dan Jantina Setakat 31 Disember 2020 Lingkungan Simpanan (RM) Bilangan Lelaki Bilangan Perempuan STATISTIK Simpanan (RM) Jumlah 93,486
<1-1,000 1,001-2,000 2,001-3,000 3,001-4,000 4,001-5,000 5,001-6,000 6,001-7,000 7,001-8,000 8,001-9,000 9,001-10,000 10,001-15,000 15,001-20,000 20,001-25,000 25,001-30,000 30,001-35,000 35,001-40,000 40,001-45,000 45,001-50,000
 50,001-55,000 55,001-60,000 60,001-65,000 65,001-70,000 70,001-75,000 75,001-80,000 80,001-85,000 85,001-90,000 90,001-95,000 95,001-100,000 100,001-150,000 150,001-200,000 200,001-250,000 250,001-300,000 300,001-350,000 350,001-400,000 400,001-450,000 450,001-500,000 500,001-600,000 600,001-700,000 700,001-800,000 800,001-900,000 900,001-1,000,000 > 1,000,000 Jumlah 4,179,155 3,411,898 7,591,053 720,981,362,528 Sumber: Sistem BI KWSP Nota: Jumlah Amaun Simpanan tidak termasuk dengan dividen tahun 2020 129 ULASAN BAHAGIANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20208 STATISTIK Kadar Caruman Tahun 1952 - Jun 1975 Julai 1975 - November 1980 Disember 1980 - Disember 1992 Januari 1993 - Disember 1995 Januari 1996 - Mac 2001 April 2001 - Mac 2002 April 2002 - Mei 2003 Jun 2003 - Mei 2004 Jun 2004 - Disember 2008 Januari 2009 - Disember 2010 Januari 2011 - Disember 2011 Januari 2012 - Hingga Februari 2016 Gaji RM5,000 dan kurang Gaji lebih daripada RM5,000 Mac 2016 - Disember 2017 Ahli berumur di bawah 60 Tahun Gaji RM5,000 dan kurang Gaji lebih daripada RM5,000 Ahli berumur 60 tahun sehingga 75 Tahun Gaji RM5,000 dan kurang Gaji lebih daripada RM5,000 Januari 2018 - Disember 2018 Ahli berumur di bawah 60 Tahun Gaji RM5,000 dan kurang Gaji lebih daripada RM5,000 Pekerja Majikan Jumlah Tahun Pekerja Majikan Jumlah 20%
22% 23% 21% 23% 21% 23% 20% 23% 24% 23% 21% 20% January 2018 - December 2018 Ahli berumur 60 tahun sehingga 75 Tahun Gaji RM5,000 dan kurang Gaji lebih daripada RM5,000 Januari 2019 - Mac 2020 Ahli berumur di bawah 60 Tahun Gaji RM5,000 dan kurang Gaji lebih daripada RM5,000 Ahli berumur 60 tahun sehingga 75 Tahun Gaji RM5,000 dan kurang Gaji lebih daripada RM5,000 April 2020 - Disember 2020 Ahli berumur di bawah 60 Tahun Gaji RM5,000 dan kurang Gaji lebih daripada RM5,000 Ahli berumur 60 tahun sehingga 75 Tahun Gaji RM5,000 dan kurang Gaji lebih
 daripada RM5,000 Januari 2021 - Disember 2021 6.5% 10.5% Ahli berumur di bawah 60 Tahun 6% 10% Gaji RM5,000 dan kurang Gaji lebih daripada RM5,000 Ahli berumur 60 tahun sehingga 75 Tahun 11% 11% 13% 12% 24% 23% Gaji RM5,000 dan kurang Gaji lebih daripada RM5,000 5.5% 5.5% 6.5% 12% 6% 11.5% 11% 11% - - 7% 7% - - 9% 9% - - 13% 12% 4% 4% 13% 12% 4% 4% 13% 12% 4% 4% 24% 23% 4% 4% 20% 19% 4% 4% 22% 21% 4% 4% Profil Ahli Aktif Mengikut Lingkungan Umur dan Jantina Setakat 31 Disember 2020 Kumpulan Umur (Tahun) <16 16-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 66-70 71-75 76-80 81-85 >85 Bilangan Lelaki Bilangan Perempuan Jumlah Ahli Jumlah Ahli Kumulatif (%) 0.01 22.04 18.67 14.82 11.77 9.85 8.43 6.70 4.57 1.95 0.85 0.28 0.04 0.00 0.00 (%) 0.01 22.05 40.72 55.55 67.31 77.17 85.60 92.29 96.87 98.82 99.67 99.95 100.00 100.00 100.00 Jumlah Simpanan (RM) 719,648 14,450,669,805 45,031,045,999 78,666,403,317 103,669,568,653 126,177,672,243 137,690,269,518 112,039,547,651 58,464,456,205 26,435,595,980 11,971,989,307 4,973,283,945 1,294,167,649 109,931,160 6,041,447 Jumlah Simpanan (%) 0.00 2.00 6.25 10.91 14.38 17.50 19.10 15.54 8.11 3.67 1.66 0.69 0.18 0.02 0.00
 Kumulatif (%) 0.00 2.00 8.25 19.16 33.54 51.04 70.14 85.68 93.79 97.45 99.11 99.80 99.98 100.00 100.00 Jumlah Besar 4,179,155 3,411,898 7,591,053 100.00 720,981,362,528 100.00 Sumber: Sistem BI KWSP Nota: Jumlah Amaun Simpanan tidak termasuk dengan dividen tahunan 130 ULASAN BAHAGIANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20208 STATISTIK Purata Simpanan Ahli Aktif yang Berumur 54 Tahun Mengikut Jantina Tahun 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Bilangan Ahli 35,415 36,387
 40,542 40,004 43,230 45,805 47,135 Lelaki Jumlah Simpanan (RM) 5,322,180,264 5,794,733,417 6,507,302,076 6,657,338,898 7,581,549,702 8,427,983,030 9,385,899,753 49,878 10,719,311,181 50,223 11,201,215,794 51,579 12,062,316,509 55,250 12,858,768,219 53,955 14,041,957,159 55,585 15,284,553,919 Perempuan Purata Simpanan (RM) Bilangan Ahli Jumlah Simpanan (RM) Purata Simpanan (RM) Purata Simpanan Ahli yang Berumur 54 Tahun Tahun 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Ahli Aktif Jumlah Simpanan (RM) Ahli Tidak Aktif Purata Simpanan (RM) Bilangan Ahli Jumlah Simpanan (RM) Purata Simpanan (RM) Bilangan Ahli 166,131
Sumber: Sistem BI KWSP Nota: Jumlah Amaun Simpanan tidak termasuk dengan dividen tahunan 21,894 22,708 23,705 23,389 24,156 26,250 27,557 31,540 34,023 43,872 43,938 49,084
 54,388 131 ULASAN BAHAGIANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20208 KEW ANGAN 133 Ringkasan Kewangan dan Analisis 137 Laporan Ketua Audit Negara 142 Penyata Pengerusi dan Seorang Ahli Lembaga 143 Pengakuan oleh Pegawai Utama yang Bertanggungjawab ke atas Pengurusan Kewangan Lembaga Kumpulan Wang Simpanan Pekerja 144 Penyata Kedudukan Kewangan 146 Penyata Pendapatan Komprehensif 150 Penyata Perubahan dalam Aset Bersih Boleh Diagih kepada Ahli 152 Penyata Perubahan dalam Ekuiti 153 Penyata-Penyata Aliran Tunai 157 Nota-nota kepada Penyata Kewangan 369 Hartanah KWSP di Malaysia 370 Glosari N A G N A W E K 9 132 132 L A P O R A N T A H U N A N 2 0 2 0 KEWANGANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20209 RINGKASAN KEWANGAN DAN ANALISIS KEPUTUSAN KEWANGAN Pendapatan Pelaburan Kasar KWSP mencatatkan pendapatan pelaburan kasar sebanyak RM45.98 bilion, RM6.78 bilion atau 17% lebih tinggi berbanding RM39.20 bilion yang dicatatkan pada 2019.


Daripada jumlah pendapatan pelaburan kasar ini, RM21.41 bilion atau 47% adalah dari Faedah dan Keuntungan dari Pelaburan, RM12.71 bilion atau 28% adalah dari Dividen dari Pelaburan, RM5.16 bilion atau 11% adalah dari Keuntungan Modal dari Penjualan Pelaburan dan RM6.70 bilion atau 14% adalah dari Lain-lain Pendapatan Pelaburan.
Sebagai dana simpanan persaraan yang memberi tumpuan kepada pemeliharaan modal simpanan ahli, pendapatan pelaburan KWSP bergantung kepada aliran yang konsisten dari Faedah dan Keuntungan dari Pelaburan, di mana pada tahun 2020, ianya berjumlah RM21.41 bilion; sedikit penurunan sebanyak RM0.19 bilion atau 1% berbanding RM21.60 bilion yang dicatatkan pada tahun 2019.
Pelaburan KWSP juga memberi tumpuan kepada syarikat-syarikat yang membayar dividen yang stabil, di mana pada tahun 2020, pendapatan ini telah menyumbangkan RM12.71 bilion kepada jumlah Pendapatan Pelaburan Kasar, peningkatan sebanyak 2% berbanding jumlah yang dicatatkan pada tahun 2019.

Pertumbuhan pendapatan pelaburan daripada faedah, keuntungan dan dividen adalah sejajar dengan pertumbuhan aset KWSP.
Keuntungan Modal dari Penjualan Pelaburan meningkat sebanyak 65% atau RM2.03 bilion berbanding jumlah yang dicatatkan pada tahun 2019.

Peningkatan ini disumbangkan oleh peningkatan keuntungan modal portfolio instrumen berpendapatan tetap, daripada aset pelaburan yang dinilai pada Nilai Saksama melalui Pendapatan Komprehensif Lain dan pada Kos Terlunas, disebabkan oleh penurunan kadar pulangan di seluruh dunia terutamanya di Amerika Syarikat dan Malaysia sejajar dengan kesan pandemik COVID-19.
Pada tahun 2020, disebabkan pergerakan Ringgit Malaysia berbanding mata wang asing terutamanya mata wang USD, pelaburan KWSP mencatatkan Kerugian Bersih atas Tukaran Mata Wang Asing Nyata sebanyak RM0.83 bilion dan Keuntungan Bersih atas Tukaran Mata Wang Asing Tidak Nyata sebanyak RM0.48 bilion.

Jumlah kedua- duanya adalah Kerugian Bersih atas Tukaran Mata Wang Asing sebanyak RM0.35 bilion dan ini mewakili hanya -1% daripada jumlah Pendapatan Pelaburan Kasar yang dicatatkan pada 2020.
Bagi aset pelaburan KWSP yang dinilai pada Nilai Saksama melalui Untung atau Rugi, KWSP mencatatkan Keuntungan Bersih Nyata sebanyak RM2.61 bilion dan Keuntungan Bersih Tidak Nyata sebanyak RM4.27 bilion.

Jumlah kedua- duanya adalah Keuntungan Bersih sebanyak RM6.88 bilion mewakili 15% daripada jumlah Pendapatan Pelaburan Kasar dan disumbangkan oleh penambahbaikan nilai mark-to-market aset pelaburan.
Dari segi pecahan di antara Simpanan Konvensional dan Simpanan Shariah untuk Pendapatan Pelaburan Kasar, RM41.83 bilion adalah disumbangkan oleh Simpanan Konvensional manakala baki RM4.15 bilion oleh Simpanan Shariah.

Lain–lain Pendapatan Lain–lain Pendapatan menurun sebanyak 32% kepada RM116.73 juta daripada RM170.92 juta pada tahun 2019.

Penurunan yang ketara adalah disebabkan oleh caj perkhidmatan yang berjumlah RM20.69 juta yang disebabkan oleh penurunan kadar caj yang dikenakan.
Penurunan ini juga disumbangkan oleh faedah dan dividen dari caruman terlewat bayar yang dikutip daripada majikan iaitu sebanyak RM8.41 juta dan RM4.37 juta masing – masing kesan impak pandemik COVID-19.

Selain itu, faedah atas akaun asing menurun sebanyak RM5.36 juta disebabkan penurunan kadar faedah yang diterima.

Faedah dari caruman terlewat bayar dan faedah atas akaun asing adalah sebahagian daripada Pendapatan Tidak Patuh Syariah.
Perbelanjaan Operasi Pada tahun 2020, Perbelanjaan Operasi KWSP meningkat sebanyak 5% kepada RM1,435.44 juta berbanding RM1,367.95 juta pada tahun 2019.

Penyumbang utama kepada peningkatan ini ialah kos staf sebanyak RM45.29 juta.
Sementara itu, yuran dan bayaran ikhtisas juga meningkat sebanyak RM12.98 juta disebabkan oleh peningkatan ke atas caj agen bank selari dengan 133 KEWANGANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20209 RINGKASAN KEWANGAN DAN ANALISIS peningkatan transaksi pengeluaran terutamanya bagi kemudahan i-Lestari.

Walaubagaimanapun, pembaikan & penyelenggaraan, percetakan & alat tulis dan pengangkutan & perjalanan menurun kesan impak pandemik COVID-19 yang mana ianya mengimbangi peningkatan perbelanjaan ini.
2019 adalah disebabkan oleh penurunan bayaran Bantuan Kematian di bawah Seksyen 58(1) dalam Akta KWSP 1991 dalam tahun 2020 berjumlah RM4.69 juta berbanding tahun 2019.

Keuntungan Bersih Boleh Diagih Kepada Ahli Gaji, Elaun dan Kos Staf Gaji, elaun dan kos staf meningkat sebanyak 4% kepada RM1,076.76 juta berbanding RM1,031.47 juta pada tahun 2019.
Peningkatan ini diimbangi dengan penurunan belanja latihan dan elaun pengangkutan & makan atas latihan staf serta kos kebajikan staf kesan impak pandemik COVID-19.

KWSP mencatatkan keuntungan bersih yang boleh diagih kepada ahli berjumlah RM42.87 bilion yang disumbangkan oleh Simpanan Konvensional dan Simpanan Shariah masing-masing berjumlah RM39.04 bilion dan RM3.83 bilion.
Nisbah-nisbah yang digunakan di dalam pengiraan adalah seperti berikut: Susut Nilai dan Pelunasan Nisbah Simpanan Ahli (MSR) Nisbah Pendapatan Syariah (SIR) Susut nilai dan pelunasan merangkumi susut nilai dalam hartanah, loji dan peralatan, hartanah pelaburan, aset hak atas penggunaan dan pelunasan aset tak ketara.

Untuk tahun kewangan berakhir 31 Disember 2020, susut nilai dan pelunasan menaik sebanyak 11% kepada RM106.56 juta, berbanding RM96.40 juta pada tahun sebelumnya.
Ini disebabkan peningkatan belanja susut nilai bagi perkakasan dan perisian komputer sebanyak RM9.79 juta seiring dengan pembelian baru ke atas perkakasan dan perisian komputer pada tahun 2020.

Kos Penyelenggaraan Kos Penyelenggaraan termasuk menyelenggara peralatan komputer, bangunan serta kos pembersihan dan juga caj utiliti.

Untuk tahun kewangan berakhir pada 31 Disember 2020, kos penyelenggaraan menurun sebanyak 12% kepada RM78.26 juta, berbanding RM88.64 juta pada tahun sebelumnya.
Faktor utama penurunan disebabkan kos penyelenggaraan untuk peralatan komputer menurun sebanyak RM7.83 juta.

Manakala, kos utiliti bangunan atas pemilikan dan penyewaan premis menurun sebanyak RM2.10 juta kesan impak pandemik COVID-19.

Caj Berkanun Caj berkanun merangkumi bayaran Bantuan Kematian dan Bantuan Hilang Upaya kepada waris dan ahli masing- masing di bawah Seksyen 58(1) dan 58(2) termasuk Kos Invokasi di bawah Seksyen 50(3) dalam Akta KWSP 1991 yang telah diiktiraf pada tahun tersebut.
Penurunan 1% kepada RM63.55 juta berbanding RM71.05 juta pada tahun 10.58% 26.93% Nisbah Aset Syariah (SAR) Nisbah Pilihan Masuk (OIR) 39.08% 0.91% KEDUDUKAN KEWANGAN Aset Pelaburan Jumlah aset pelaburan meningkat sebanyak RM78.43 bilion atau 9% daripada RM910.29 bilion pada akhir tahun 2019 kepada RM988.72 bilion pada tahun 2020, sejajar dengan penerimaan caruman bersih dan pendapatan yang diterima untuk tahun ini.
Jumlah aset pelaburan terdiri daripada Aset Konvensional berjumlah RM588.53 bilion atau 60% dan Aset Syariah berjumlah RM400.19 bilion atau 40% daripada jumlah aset pelaburan.

134 KEWANGANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20209 RINGKASAN KEWANGAN DAN ANALISIS vi 3% vii 2% v 6% iv 6% iii 5% vi 3% vii 1% v 6% i 34% i 30% iv 6% iii 2% 2020 2019 ii 48% ii 48% i. Aset Pelaburan pada Kos Terlunas iv.

Pinjaman, Pendahuluan dan Pembiayaan ii.


Aset Kewangan pada Nilai Saksama melalui Pendapatan v. Deposit dengan Institusi Kewangan Komprehensif Lain vi.

Pelaburan dalam Syarikat Subsidiari iii.

Aset Kewangan pada Nilai Saksama melalui Untung atau Rugi vii.
Pelaburan dalam Syarikat Bersekutu dan Syarikat Usaha Sama Setakat 31 Disember 2020, nilai Aset Kewangan pada Nilai Saksama melalui Pendapatan Komprehensif Lain berjumlah RM475.66 bilion atau 48% daripada jumlah aset pelaburan, meningkat sebanyak RM41.53 bilion atau 10% berbanding tahun 2019.
Aset Kewangan pada Nilai Saksama melalui Pendapatan Komprehensif Lain, yang sebahagian besarnya terdiri daripada pelaburan dalam ekuiti tersenarai, terdiri daripada Aset Konvensional berjumlah RM248.57 bilion dan Aset Syariah berjumlah RM227.09 bilion.

Bagi pendedahan KWSP kepada aset yang menjana pendapatan dan berisiko rendah, iaitu Aset Pelaburan pada Kos Terlunas dan Pinjaman, Pendahuluan dan Pembiayaan masing-masing berjumlah RM297.78 bilion atau 30% dan RM55.29 bilion atau 6%.
Bagi Aset Pelaburan pada Kos Terlunas pecahan antara Aset Konvensional dan Syariah adalah masing-masing berjumlah RM178.04 bilion dan RM119.74 bilion manakala untuk Pinjaman, Pendahuluan dan Pembiayaan, pecahan Aset Konvensional dan Syariah adalah masing-masing berjumlah RM47.92 bilion dan RM7.37 bilion.

Pada tahun 2020, suntikan tambahan juga dibuat ke dalam syarikat subsidiari, bersekutu dan usaha sama terutamanya ke dalam kelas aset berkaitan inflasi asing.
Secara kumulatif, pegangan dalam syarikat subsidiari, bersekutu dan usaha sama masing-masing berjumlah RM43.87 bilion atau 4% daripada jumlah aset pelaburan, peningkatan sebanyak RM4.75 bilion atau 12% daripada RM39.12 bilion pada 2019.

Jumlahnya terdiri daripada Aset Konvensional berjumlah RM37.65 bilion dan Aset Syariah berjumlah RM6.22 bilion.
Terdapat peningkatan sebanyak 12% atau RM6.55 bilion dalam Deposit dengan Institusi Kewangan yang membawa jumlah kepada RM61.25 bilion atau 6% daripada jumlah Aset Pelaburan KWSP.

Selain itu, Lain-Lain Aset Pelaburan adalah Aset Kewangan pada Nilai Saksama melalui Untung atau Rugi, Hartanah Pelaburan dan Aset Dipegang Untuk Jualan di mana masing-masing berjumlah RM53.78 bilion, RM1.08 bilion dan RM0.01 bilion.
Liabiliti Jumlah liabiliti meningkat sebanyak 12% kepada RM0.36 bilion daripada RM3.01 bilion pada tahun 2019, di mana penyumbang utamanya adalah peningkatan akruan terhadap pembelian instrumen pelaburan pada hujung tahun yang mana pembayaran dibuat pada awal tahun berikutnya.
135 KEWANGANWWW.KWSP.GOV.MYLAPORAN TAHUNAN 20209 RINGKASAN KEWANGAN DAN ANALISIS Pemiutang dan Liabiliti Terakru Setakat 31 Disember 2020, pemiutang dan liabiliti terakru KWSP sebanyak RM2.23 bilion adalah lebih tinggi sebanyak 9% berbanding RM2.04 bilion pada 31 Disember 2019.

Sebahagian besar peningkatan disebabkan oleh oleh peningkatan pembelian bon dan ekuiti global pada akhir tahun.
Caruman Setakat 31 Disember 2020, caruman terkumpul mencecah RM984.35 bilion menunjukkan peningkatan 7% atau RM67.76 bilion, daripada baki penutup RM916.59 bilion tahun 2019.

Simpanan Konvensional merekodkan caruman terkumpul berjumlah RM880.27 bilion manakala Simpanan Shariah pula berjumlah RM104.08 bilion.
Simpanan terkumpul ahli dalam Akaun Caruman seperti yang ditunjukkan dalam Penyata Kedudukan Kewangan, mencatatkan pertumbuhan berikutan caruman daripada majikan melebihi jumlah pengeluaran yang dibayar kepada ahli dan waris.

Ini menyebabkan aliran masuk tunai bersih yang baik sepanjang tahun setelah mengambil kira kesan pandemik COVID-19 yang menular di seluruh dunia.
Kutipan Caruman Pada Tahun Semasa Pada tahun 2020, sejumlah RM78.41 bilion terutamanya yang telah dikutip daripada majikan, berbanding RM75.93 bilion pada tahun sebelumnya.

Ini menunjukkan peningkatan sebanyak RM2.48 bilion atau 3%, sejajar dengan kenaikan jumlah ahli yang aktif.

Secara purata, kira-kira RM6.53 bilion telah dikutip setiap bulan pada tahun 2020.
Pengeluaran dan Pengembalian Caruman Pada Tahun Semasa Jumlah pengeluaran dan pengembalian tahun 2020 berjumlah RM58.29 bilion terdiri daripada RM48.60 bilion untuk Simpanan Konvensional manakala Simpanan Shariah berjumlah RM9.69 bilion, berbanding RM44.80 bilion pada tahun sebelum.

Jumlah ini menunjukkan peningkatan RM13.49 bilion atau 30%, sebahagian besar adalah daripada Kemudahan i-Lestari yang telah diperkenalkan pada bulan Mac 2020.
Maklumat lanjut mengenai pengeluaran disediakan pada ruangan Statistik dalam Laporan Tahunan ini.

Secara purata, kira-kira RM4.86 bilion telah dibayar kepada ahli dan waris setiap bulan pada tahun semasa.

Aset Bersih Boleh Diagih Kepada Ahli Aset Bersih Boleh Diagih Kepada Ahli adalah sebanyak RM15.65 bilion setakat pada 31 Disember 2020, merangkumi RM8.96 bilion dalam Lebihan Kumulatif dan RM6.69 bilion dalam Rizab Aset Kewangan Pada Nilai Saksama Melalui Pendapatan Komprehensif Lain.
Ini menunjukkan peningkatan sebanyak RM7.35 bilion, atau 89%, daripada Aset Bersih Boleh Diagih Kepada Ahli sebanyak RM8.30 bilion pada tahun 2019, selari dengan peningkatan baki dalam Lebihan Kumulatif setakat pada 31 Disember 2020 disebabkan peningkatan keuntungan tidak nyata bersih bagi penilaian semula Aset Kewangan pada Nilai Saksama melalui Untung atau Rugi.
136 KEWANGANLEMBAGA KUMPULAN WANG SIMPANAN PEKERJALAPORAN TAHUNAN 20209 REPORT OF THE AUDITOR-GENERAL REPORT REPORT OF THE AUDITOR-GENERAL REPORT REPORT OF THE AUDITOR-GENERAL REPORT REPORT OF THE AUDITOR-GENERAL REPORT W W W .

K W S P .

G O V .

M Y REFERENCE NOTE ON CERT IFICAT E OF AU DIT O R GEN ERAL ON THE FINANCIAL S T AT E MENT S OF EM PL OYEES PROVIDENT FUND G ROU P for financial year ended 31 December 2020.
The paging number reference from page 12 - 139 stated in the Certificate of Auditor General in EPF Annual Report 2020 as disclosed below: Note Number Note CORPORATE INFORMATION SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES DEPOSITS WITH FINANCIAL INSTITUTIONS RECEIVABLES, DEPOSITS AND PREPAYMENTS LOANS, ADVANCES AND FINANCING FINANCIAL ASSETS/LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME INVESTMENT ASSETS AT AMORTISED COST INVESTMENT IN JOINT VENTURES INVESTMENT IN ASSOCIATES INVESTMENT IN SUBSIDIARIES ASSETS HELD FOR SALE INVENTORIES INTANGIBLE ASSETS INVESTMENT PROPERTIES LEASES PROPERTY, PLANT AND EQUIPMENT DEFERRED TAX PAYABLES AND ACCRUED LIABILITIES DEPOSITS AND ADVANCES LOANS AND OVERDRAFTS EMPLOYEE BENEFITS NET ASSETS ATTRIBUTABLE TO MEMBERS GROSS INVESTMENT INCOME INVESTMENT EXPENDITURES NET IMPAIRMENT ON FINANCIAL INVESTMENT ASSETS NET (IMPAIRMENT)/WRITE-BACK OF IMPAIRMENT ON INVESTMENT IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES OTHER INCOME OPERATING EXPENDITURES STATUTORY CHARGES TAX AND ZAKAT SIMPANAN SHARIAH DISCLOSURES CASH AND CASH EQUIVALENTS CAPITAL COMMITMENTS CONTINGENT LIABILITIES FINANCIAL RISK RELATED PARTY DISCLOSURES OPERATING AND FINANCE LEASES LIST OF SUBSIDIARIES AS AT 31 DECEMBER 2020 LIST OF ASSOCIATES AND JOINT VENTURES AS AT 31 DECEMBER 2020 SIGNIFICANT EVENTS Page No Certificate of Auditor General
 12 EPF Annual Report 2020 157 13 - 27 28 29 30 31 32 - 35 36 37 - 40 41 - 43 44 - 45 46 47 48 - 49 50 51 - 53 54 - 57 58 - 59 60 61 62 63 - 65 66 - 70 71 72 73 74 75 76 77 78 79 - 82 83 84 85 86 - 125 126 - 127 128 129 - 135 136 - 138 139 157 - 193 194 - 195 196 - 197 198 - 200 201 - 202 203 - 206 207 - 208 208 - 212 212 - 215 216 - 218 219 220 221 - 223 224 - 225 226 - 229 230 - 234 235 - 239 240 - 242 243 244 - 245 246 - 250 251 - 257 258 - 259 259 260 261 261 262 - 263 263 264 - 265 266 - 270 271 272 273
 273 - 338 339 - 341 342 343 - 361 362 - 366 367 - 368 I F N A N C A L I 9 A N N U A L R E P O R T 2 0 2 0 141 141 FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 STATEMENT BY CHAIRMAN AND A BOARD MEMBER We, TAN SRI AHMAD BADRI BIN MOHD ZAHIR and KHALID BIN SUFAT as the Chairman and a member of the Board, as representatives of the EMPLOYEES PROVIDENT FUND BOARD, do hereby state that, in the opinion of the Board, the accompanying Financial Statements which includes the Statements of Financial Position, Statements of Comprehensive Income, Statements of Changes in Net Assets Attributable to Members, Statements of Changes in Equity and Statements of Cash Flows, as follows together with the Notes to the Financial Statements are drawn up so as to give a true and fair view of the state of affairs of the EMPLOYEES PROVIDENT FUND as at 31 December 2020, the results of its operations and changes in financial position of the year ended on that date.
On behalf of the Board, On behalf of the Board, NAME TITLE DATE PLACE : TAN SRI AHMAD BADRI BIN MOHD ZAHIR : CHAIRMAN OF EPF : 7 OCTOBER 2021 : KUALA LUMPUR NAME TITLE DATE PLACE : KHALID BIN SUFAT : A BOARD MEMBER OF EPF : 7 OCTOBER 2021 : KUALA LUMPUR 142 FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 DECLARATION BY THE OFFICER PRIMARILY RESPONSIBLE FOR THE FINANCIAL MANAGEMENT EMPLOYEES PROVIDENT FUND BOARD I, MOHAMAD HAFIZ BIN KASSIM, an officer primarily responsible for the financial management of the EMPLOYEES PROVIDENT FUND BOARD do solemnly and sincerely declare that the accompanying Financial Statements which include the Statements of Financial Position, Statements of Comprehensive Income, Statements of Changes in Net Assets Attributable to Members, Statements of Changes in Equity and Statements of Cash Flows, in the following financial position together with the Notes to the Financial Statements to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960.
Subscribed and solemnly declared by the abovenamed in KUALA LUMPUR on 7 OCTOBER 2021 ] ] ] ] ] MOHAMAD HAFIZ BIN KASSIM Before me, ----------------------------------------- COMMISSIONER FOR OATHS 143 FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 STATEMENT OF FINANCIAL POSITION as at 31 December 2020 ASSETS Cash and Bank Balances Deposits with Financial Institutions Receivables, Deposits and Prepayments Loans, Advances and Financing Financial Assets at Fair Value through Profit or Loss Financial Assets at Fair Value through Other Comprehensive Income Investment Assets at Amortised Cost Investment in Joint Ventures Investment in Associates Assets Held for Sale Inventories Intangible Assets Investment Properties Right-of-Use Assets Property, Plant and Equipment Deferred Tax Assets EQUITY Non-Controlling Interests LIABILITIES Contribution Withdrawal Payables Payables and Accrued Liabilities Deposits and Advances Lease Liabilities Financial Liabilities at Fair Value through Profit or Loss Loans and Overdrafts Provision for Taxation Employee Benefits Deferred Tax Liabilities Net Assets Attributable to Members Contributions Cumulative Surplus and Reserves GROUP 31 DECEMBER 2020 (RM’000) 31 DECEMBER 2019 (RM’000) Note 318,406
The notes set out form an integral part of, and should be read in conjunction with, these Statements.
144 FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 STATEMENT OF FINANCIAL POSITION as at 31 December 2020 ASSETS Cash and Bank Balances Deposits with Financial Institutions Receivables, Deposits and Prepayments Loans, Advances and Financing Financial Assets at Fair Value through Profit or Loss Financial Assets at Fair Value through Other Comprehensive Income Investment Assets at Amortised Cost Investment in Joint Ventures Investment in Associates Investment in Subsidiaries Assets Held for Sale Intangible Assets Investment Properties Right-of-Use Assets Property, Plant and Equipment LIABILITIES Contribution Withdrawal Payables Payables and Accrued Liabilities Deposits and Advances Lease Liabilities Financial Liabilities at Fair Value through Profit or Loss Employee Benefits Net Assets Attributable to Members Contributions Cumulative Surplus and Reserves EPF 31 DECEMBER 2020 (RM’000) 31 DECEMBER 2019 (RM’000) Note The notes
924,882,086 1,003,372,152 927,894,930 The notes set out form an integral part of, and should be read in conjunction with, these Statements.
145 FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December 2020 INCOME Gross Investment Income Investment Expenditures Net Impairment on Financial Investment Assets Net (Impairment)/Write-back of Impairment on Investment in Associates and Joint Ventures Net Investment Income Other Income Total Income Operating Expenditures Statutory Charges Total Expenditures Net Profit Share of Profit in Associates and Joint Ventures Net Profit before Tax and Zakat Tax and Zakat Net Profit after Tax and Zakat GROUP 31 DECEMBER 2020 (RM’000) 31 DECEMBER 2019 (RM’000) Note 24 25 26 27 28 29 30 49,213,726 41,262,777 (1,632,870) (1,529,052) (759,383) (132,074) (147,268) 5,082 46,674,205 39,606,733 180,772 239,336 46,854,977 39,846,069 (5,005,329) (4,394,852) (63,554) (71,050) (5,068,883) (4,465,902) 41,786,094 35,380,167 646,560 858,396 42,432,654 36,238,563 31 (347,703) (312,420) 42,084,951 35,926,143 Net Profit Attributable to Members 23.2 (41,981,424) (35,673,812) Profit for the Group (Attributable to Non-Controlling Interest) 103,527 252,331 146 FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December 2020 GROUP 31 DECEMBER 2020 (RM’000) 31 DECEMBER 2019 (RM’000) Note Other Comprehensive Income/(Loss): Items that will not be Reclassified Subsequently to Profit or Loss Adjustment on Employee Benefits for the Financial Year 22 3,662 - Net Unrealised (Loss)/Gain on Fair Value Revaluation on Investment in Equity
 Instruments at Fair Value through Other Comprehensive Income 23.3 (5,176,578) 10,310,879 Shariah Non-Compliant Income from Excess Gain on Securities which had been Reclassified from Shariah to Conventional Net Realised Gain on Investment in Equity Instruments at Fair Value through Other Comprehensive Income Tax Paid on Global Investments Items that may be Reclassified Subsequently to Profit or Loss Net Unrealised Gain on Fair Value Revaluation on Investment in Debt Instruments at Fair Value through Other Comprehensive Income Changes in Fair Value of Debt Instruments at Fair Value through Other 32.4 23.2 23.2 10,831 1,592 17,675,854 11,705,457 (54,085) (118,305) 12,459,684 21,899,623 23.3 5,491,267 3,632,781 Comprehensive Income Reclassified to Profit or Loss on Disposal (4,610,491) (57,246) Net Changes in Loss Allowance on Investment in Debt Instruments at Fair Value through Other Comprehensive Income Foreign Currency Translation Differences Net Movement on Cash Flow Hedging Derivatives Share of Other Comprehensive Income from Associates and Joint Ventures 166,611 (524,679) (46,819) 154,530 630,419 (14,258) 502,973 (30,715) 399,069 4,432,604 Total Other Comprehensive Income before Attributable to Members 13,090,103 26,332,227 Amount Attributable to Members (13,051,577) (26,294,225) Other Comprehensive Income for the Group (Attributable to Non-Controlling Interest) 38,526 38,002 Total Comprehensive Income for the Group (Attributable to Non-Controlling Interest)
 142,053 290,333 The notes set out form an integral part of, and should be read in conjunction with, these Statements.
147 FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December 2020 INCOME Gross Investment Income Investment Expenditures Net Impairment on Financial Investment Assets Net Impairment on Investment in Subsidiaries, Associates and Joint Ventures Net Investment Income Other Income Total Income Operating Expenditures Statutory Charges Total Expenditures EPF 31 DECEMBER 2020 (RM’000) 31 DECEMBER 2019 (RM’000) Note 24 25 26 27 28 29 30 45,984,308 39,197,556 (1,098,385) (1,064,404) (406,615) (229,313) (50,899) (37,882) 44,249,995 38,044,371 116,728 170,918 44,366,723 38,215,289 (1,435,436) (1,367,954) (63,554) (71,050) (1,498,990) (1,439,004) Net Profit Attributable to Members 23.2 42,867,733 36,776,285 148 FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December 2020 EPF 31 DECEMBER 2020 (RM’000) 31 DECEMBER 2019 (RM’000) Note Other Comprehensive Income/(Loss): Items that will not be Reclassified Subsequently to Profit or Loss Adjustment on Employee Benefits for the Financial Year 22 3,662 - Net Unrealised (Loss)/Gain on Fair Value Revaluation on Investment in Equity Instruments at Fair Value through Other Comprehensive Income 23.3 (6,006,786) 9,962,465 Shariah Non-Compliant Income from Excess Gain on Securities which had been Reclassified from Shariah to Conventional Net Realised Gain on Investment in Equity Instruments at Fair Value through Other Comprehensive Income Tax Paid on Global Investments
 Items that may be Reclassified Subsequently to Profit or Loss Net Unrealised Gain on Fair Value Revaluation on Investment in Debt Instruments at Fair Value through Other Comprehensive Income Changes in Fair Value of Debt Instruments at Fair Value through Other 32.4 23.2 23.2 10,831 1,592 17,465,911 11,705,457 (54,085) (118,305) 11,419,533 21,551,209 23.3 5,494,770 3,633,635 Comprehensive Income Reclassified to Profit or Loss on Disposal 23.3 (4,690,174) (201,610) Net Changes in Loss Allowance on Investment in Debt Instruments at Fair Value through Other Comprehensive Income 23.3 Total Other Comprehensive Gain Attributable to Members Increase in Net Assets Attributable to Members 166,612 971,208 (14,088) 3,417,937 12,390,741 24,969,146 55,258,474 61,745,431 The notes set out form an integral part of, and should be read in conjunction with, these Statements.
149 FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO MEMBERS for the year ended 31 December 2020 At 1 January Add/(Less): Increase in Net Assets Attributable to Members Contribution Received and Adjustments for the Financial Year Contribution Withdrawals and Refunds Dividend on Contribution Withdrawals Adjustments on Contributions with Incomplete Information (CTML) and Reject Net Asset Movement from Changes in Equity Holdings in Subsidiaries Movement in Other Reserves of Subsidiaries At 31 December GROUP Note 2020 (RM’000) 2019 (RM’000) 928,291,488 835,480,621 55,033,001 61,968,037 78,414,742 75,928,078 (58,294,497) (44,803,394) (259,520) (294,694) (3,300) 29,220 (7,587) (3,741) 16,581 - 23 1,003,203,547 928,291,488 The notes set out form an integral part of, and should be read in conjunction with, these Statements.
150 FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO MEMBERS for the year ended 31 December 2020 At 1 January Add/(Less): EPF Note 2020 (RM’000) 2019 (RM’000) 924,882,086 832,310,406 Increase in Net Assets Attributable to Members Contribution Received and Adjustments for the Financial Year Contribution Withdrawals and Refunds Dividend on Contribution Withdrawals Adjustments on Contributions with Incomplete Information (CTML) and Reject 55,258,474 61,745,431 78,414,742 75,928,078 (58,294,497) (44,803,394) (259,520) (294,694) (3,300) (3,741) At 31 December 23 999,997,985 924,882,086 The notes set out form an integral part of, and should be read in conjunction with, these Statements.
151 FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 STATEMENT OF CHANGES IN EQUITY for the year ended 31 December 2020 At 1 January Add/(Less): Increase in Net Assets Attributable to Non-Controlling Interests Net Asset Movement from Changes in Equity Holdings in Subsidiaries Movement in Other Reserves of Subsidiaries Dividend Credited to Non-Controlling Interest At 31 December GROUP 2020 (RM’000) 2019 (RM’000) 3,634,717 3,444,215 142,053 (8,674) 114,757 290,333 47,878 - (114,485) (147,709) 3,768,368 3,634,717 The notes set out form an integral part of, and should be read in conjunction with, these Statements.
152 FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 STATEMENTS OF CASH FLOWS for the year ended 31 December 2020 GROUP EPF Note 2020 (RM’000) 2019 (RM’000) 2020 (RM’000) 2019 (RM’000) CASH FLOWS FROM OPERATING ACTIVITIES Net Profit before Tax and Zakat 42,432,654 36,238,563 42,867,733 36,776,285 Adjustment For: Share of Profit in Associates and Joint Ventures Net Unrealised (Gain)/Loss on Foreign Exchange Net Unrealised Gain on Financial Assets at Fair Value through Profit or Loss Gain on Disposal of Investment Properties Net (Write-back) of Impairment/Impairment on Deposits with Financial Institutions Net Impairment on Rent Receivables Net Impairment/(Write-back) of Impairment on Loans, Advances and Financing Net Impairment on Financial Assets at Fair Value through Other Comprehensive Income Net Impairment on Investment Assets at Amortised Cost Write-back of Impairment on Commitments and 24 24 24 26 26 26 26 26 (646,560) (858,396) - - (606,544) 776,904 (481,074) 178,327 (4,727,381) (1,599,256) (4,265,160) (1,301,073) (143,262) - (52,497) - (314) 13,679 (165) 20 (630) 13,552 619 20 395,806 80,646 16,110 (24,641) 184,321 187,239 13,453 67,851 184,382 193,201 13,621 61,280 Contingencies 19,26 (21,348) (29,731) - - Net Impairment/(Write-back) of Impairment on Investment in Subsidiaries, Associates and Joint Ventures Loss/(Gain) on Disposal of Foreclosed Properties (Gain)/Loss on Disposal of Assets Held for Sale Loss on Disposal of Inventories (Gain)/Loss on Disposal of Right-of-Use Assets (Gain)/Loss on
 Disposal of Property, Plant and Equipment Employee Benefits Amortisation of Intangible Assets Depreciation of Investment Properties Depreciation of Right-of-Use Assets Depreciation of Property, Plant and Equipment Net Impairment/(Write-back) of Impairment on Investment Properties Net Impairment on Asset Held For Sale Net Impairment/(Write-back) of Impairment on Other Receivables Write-back of Impairment on Property, Plant and Equipment 27 28 28 28 28 28 22,29 14,29 15,29 16a,29 17,29 15,29 29 29 29 147,268 9,097 (33,010) 1,749 (24) (859) 37,609 44,823 (5,082) (7,109) 4 - 3,938 842 38,178 36,992 506,313 321,770 19,035 78,060 213,904 2,986 151,957 (30,240) 17,882 50,226 (8,334) - 72,225 - 229,313 37,882 - (111) - (24) - 37,609 12,240 35,292 9,336 49,693 13,464 2,986 (171) - - - - - 842 38,178 12,782 35,581 8,534 39,503 - - (161) - The notes set out form an integral part of, and should be read in conjunction with, these Statements.
153 FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 STATEMENTS OF CASH FLOWS for the year ended 31 December 2020 Write-offs Adjustment from Account Work in Progress to Profit or Loss Dividend Income from Subsidiaries Note 29 17 GROUP 2020 (RM’000) 2019 (RM’000) EPF 2020 (RM’000) 2019 (RM’000) 53,991 - - 115 14,223 117 - 59 14,223 - (926,684) (766,478) Dividend Income from Associates and Joint Ventures (23,330) (237,670) (550,465) (693,317) Dividend Income from Financial Assets Interest Income from Financial Assets Profit Expense on Lease Liabilities Amortisation of Loan Acquisition Cost Interest Expense Modification Loss (Increase)/Decrease in Operating Assets: Deposits with Financial Institutions Loans, Advances and Financing Receivables, Deposits and Prepayments Other Receivables (11,335,380) (11,160,789) (11,236,127) (10,946,548) (23,313,708) (24,121,523) (21,407,852) (21,602,690) 16b,29 29 15,385 20,548 283,194 504,750 12,228 16,973 154,776 - 4,143 2,468 - - - - - - 4,422,408 (110,246) 4,748,376 1,885,296 27,544,362 (20,557,634) 27,535,683 (20,563,862) 4,338,991 (704,042) 4,213,815 (366,508) (678,913) (1,024,046) (86,382) (859,768) (92,533) 94,175 - - Financial Assets at Fair Value through Profit or Loss (33,016,114) 962,036 (32,639,131) 1,131,765 Purchase of Financial Assets at Fair Value through Other Comprehensive Income (637,912,924) (546,254,834) (637,952,161) (546,144,356) Sales of Financial Assets at Fair Value through Other Comprehensive Income 609,448,509 511,328,162 608,662,829 511,372,608 Purchase of
 Investment Assets at Amortised Cost (60,362,865) (124,461,841) (61,070,620) (125,238,816) Sales of Investment Assets at Amortised Cost 68,500,073 111,696,901 69,219,573 112,768,739 Inventories (Decrease)/Increase in Operating Liabilities: Contribution Withdrawal Payables Payables and Accrued Liabilities Deposits and Advances Financial Liabilities at Fair Value through Profit or Loss Employee Benefits Interest Received Dividend Received Interest Paid Tax and Zakat Paid Tax Refunded (46,900) 257 - - (22,278,314) (68,920,866) (22,116,394) (67,900,198) 18,349 615 (849,278) (1,889,038) (1,987,743) 3,035,105 (753,969) (649,150) 18,349 190,788 66,974 25,216 615 (808,020) 55,393 (649,149) (14,837) (13,874) (14,837) (13,874) (3,587,478) 483,658 286,490 (1,415,035) 22,962,596 24,895,169 20,474,315 21,307,754 11,053,643 11,249,394 11,238,385 11,108,837 34,016,239 36,144,563 31,712,700 32,416,591 (294,987) (299,107) (365,865) (335,599) 10,096 319,514 (650,756) (315,192) - - - - - - - - 11,922,099 (32,718,083) 14,631,172 (35,013,346) The notes set out form an integral part of, and should be read in conjunction with, these Statements.
154 FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 STATEMENTS OF CASH FLOWS for the year ended 31 December 2020 GROUP Note 2020 (RM’000) 2019 (RM’000) EPF 2020 (RM’000) 2019 (RM’000) CASH FLOWS FROM INVESTING ACTIVITIES Financial Assets at Fair Value through Profit or Loss (306,678) (5,596) Financial Liabilities at Fair Value through Profit or Loss Purchase of Financial Assets at Fair Value through Other Comprehensive Income Sales of Financial Assets at Fair Value through 1,613 - - (5,433,335) Other Comprehensive Income 590,446 1,697 - - - - - - (164,150) (615,476) 316,719 - - - - - - - (276,146) 50,982 - (449,022) 25,753 (309,641) (617,876) 316,719 - (235,038) (303,720) 50,982 - - - - - - (4,987,799) (5,505,892) 474,959 926,684 3,169,799 766,477 Purchase of Investment Assets at Amortised Cost Sales of Investment Assets at Amortised Cost Investment in Joint Ventures Investment in Associates Return of Capital from Investment in Associates Investments in Subsidiaries Return of Capital from Investment in Subsidiaries Dividend Received from Subsidiaries Dividend Received from Associates and Joint Proceeds from Disposal of Foreclosed Properties Proceeds from Disposal of Asset Held for Sale Proceeds from Disposal of Right-of-Use Assets Property Development Costs Purchase of Intangible Assets Purchase of Investment Properties Proceeds from Disposal of Investment Properties Ventures 896,404 723,944 550,465 693,318 25,853 738,752 - 355 (18,774) 18,221 - 711 15,689 (33,569) (1,841,774) (1,040,671) 14 15 -
 119,320 - - - - - - - - - - - - Purchase of Property, Plant and Equipment 17 Proceeds from Disposal of Property, Plant and Equipment Proceeds from Disposal of Inventories Net Cash Generated / (Used) in Investing Activities 1,129,386 (119,485) - (136,549) (48,203) (75,361) 1,323 31,040 35,983 - 24 - 11 - 543,416 (6,790,273) (3,427,457) (1,176,812) The notes set out form an integral part of, and should be read in conjunction with, these Statements.
155 FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 STATEMENTS OF CASH FLOWS for the year ended 31 December 2020 CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from Borrowings Repayments of Borrowings Dividend Paid to Non-Controlling Interests Dividend on Withdrawals/Dividend Adjustments Lease Payments Interest Paid on Lease Payment Net Contribution Net Cash Generated from Financing Activities Note 21 21 GROUP 2020 (RM’000) 2019 (RM’000) EPF 2020 (RM’000) 2019 (RM’000) 5,405,425 3,899,417 (4,577,897) (1,799,705) (119,448) (148,146) - - - - - - (259,520) (294,694) (259,520) (294,694) (14,066) (15,385) (14,887) (12,228) (5,428) (4,143) (6,279) (2,468) 20,116,945 20,536,054 31,120,943 32,750,700 20,116,945 19,847,854 31,120,943 30,817,502 Increase/(Decrease) in Cash and Cash Equivalents Adjustments of Foreign Currency Translation Differences Cash and Cash Equivalents as at 1 January Cash and Cash Equivalents as at 31 December 33 33 33,001,569 (6,757,656) 31,051,569 (5,372,656) (232,659) (99,100) - - 44,130,014 50,986,770 39,623,019 44,995,675 76,898,924 44,130,014 70,674,588 39,623,019 The notes set out form an integral part of, and should be read in conjunction with, these Statements.
156 FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020 1.

CORPORATE INFORMATION The EPF was established under the EPF Ordinance 1951 in which later was amended to the EPF Act 1991 to act as the trustee of the Employees Provident Fund, which is a Defined Contribution Scheme.
The principal activities of the EPF are to receive and to collect contributions, to meet all withdrawals of savings and other benefits to members or their beneficiaries upon satisfaction of any condition for withdrawals and to invest its monies for the benefits of its members.

The principal activities of the subsidiaries, associates and joint ventures are as stated in Notes 39 and 40 to the Financial Statements.
There have been no significant changes in the nature of these principal activities during the financial year.

The EPF headquarters is situated in EPF Building, Jalan Raja Laut, 50350 Kuala Lumpur.

As at 31 December 2020, the EPF operates 68 branches located at the main cities all over Malaysia.

The Financial Statements of the Group and the EPF for the financial year ended 31 December 2020 have been accepted and approved by the EPF Board on 7 October 2021.

2.
2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following accounting policies have been applied consistently with the accounting standards adopted in previous years in dealing with items that are considered material in relation to the Financial Statements, unless otherwise stated.
2.1 Basis of Preparation (a) Statement of Compliance The Financial Statements of the Group and EPF have been prepared in accordance with the Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards (“IFRS”) and EPF Act 1991 (Act 452).

The accounting policies set out below have been applied consistently to the periods presented in these Financial Statements and have been applied consistently by Group entities, unless otherwise stated.
The Group and EPF has applied the following standards and amendments for the first time for their annual reporting period commencing 1 January 2020: a) Amendments to MFRS 101 “Presentation of Financial Statements” and MFRS 108 “Accounting Policies, Changes in Accounting Estimates and Errors” (Definition of Material); b) MFRS 3 “Business Combinations” (Definition of Business); c) Amendments to MFRS 9 “Financial Instruments”, MFRS 139 “Financial Instruments: Recognition and Measurement” & MFRS 7 “Financial Instruments Disclosure” (Interest Rate Benchmark Reform); d) MFRS 101 “Presentation of Financial Statements” (Definition of Material); e) MFRS 108 “Accounting Policies, Changes in Accounting Estimates and Errors” (Definition of Material); and Revised Conceptual Framework for Financial Reporting.
f) 157 FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.1 Basis of Preparation (Cont’d.)

(a) Statement of Compliance (Cont’d.)

The other amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.
The Group and EPF intends to adopt accounting standards issued by Malaysian Accounting Standard Board (MASB) as follows, where it is effective: New MFRSs Description MFRS 17 “Insurance Contract” Amendments/Improvements to MFRSs Description MFRS 16 "Leases" (COVID-19 Related Rent Concessions) Annual Improvements to MFRS Standards 2018 - 2020 MFRS 3 "Business Combinations" (Reference to the Conceptual Framework) MFRS 116 "Property, Plant and Equipment" (Proceeds Before Intended Use) Effective for Annual Periods Beginning on or After 1 January 2023 Effective for Annual Periods Beginning on or After 1 June 2020 1 January 2022 1 January 2022 1 January 2022 MFRS 137 "Onerous Contracts" (Cost of Fulfilling a Contract) 1 January 2022 MFRS 101 "Presentation of Financial Statements" (Classification of Liabilities as Current or Non-Current) MFRS 17 "Insurance Contract" MFRS 10 "Consolidated Financial Statements" (Sale or Contribution of Assets Between an Investor and its Associate or Joint Ventures) MFRS 128 "Investments in Associates and Joint Ventures" (Sale or Contribution of Assets Between an Investor and its Associate or Joint Ventures) 1 January 2023 1 January 2023 Deferred Deferred The Group and EPF plan to apply abovementioned accounting standards, interpretations and amendments from the annual period beginning on 1 January 2021 for those accounting standards, interpretations and amendments that are effective for annual periods beginning on or after 1 January 2021.
The initial application of the accounting standards, interpretations or amendments are not expected to have any material financial impacts to the current period and prior period financial statements of the Group and EPF.

158 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.1 Basis of Preparation (Cont’d.)


(b) Basis of Measurement The Financial Statements of the Group and EPF have been prepared on the historical cost basis other than as disclosed in Note 2.

(c) Functional and Presentation Currency These Financial Statements are presented in Ringgit Malaysia (“RM”), which is the EPF’s functional currency.

All financial information is presented in (“RM”) and has been rounded to the nearest thousand, unless otherwise stated.
(d) Significant Accounting Judgements, Estimates and Assumptions The preparation of the Consolidated Financial Statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, the accompanying disclosures, and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
Judgements In the process of applying the Group’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the Consolidated Financial Statements: i. Impairment of Investment in Subsidiaries, Associates and Joint Ventures The Group and EPF assess whether there is any indication that an Investment in Subsidiaries, Associates and Joint Ventures may be impaired at each reporting date.
The Group and EPF determine whether its investments are impaired following certain indications of impairment such as, amongst others, prolonged shortfall between market value and carrying amount, significant changes with adverse effects on the investment and deteriorating financial performance of the investment due to observed changes in the economic environment.

ii.
ii.

Impairment of Investment Assets at Amortised Cost (“AC”) and Financial Assets at Fair Value through Other Comprehensive Income (“FVOCI”) The Group and EPF assess on a forward looking basis the Expected Credit Losses (“ECL”) associated with its Investment Assets at AC and Financial Assets at FVOCI.

The impairment methodology applied depends on whether there has been a significant increase in credit risk.
159 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.1 Basis of Preparation (Cont’d.)

(d) Significant Accounting Judgements, Estimates and Assumptions (Cont’d.)

ii.

Impairment of Investment Assets at Amortised Cost (“AC”) and Financial Assets at Fair Value through Other Comprehensive Income (“FVOCI”) (Cont’d.)
For Investment Assets & Financial Assets accounted for at AC, FVOCI and with the exposure arising from loan commitments and financial guarantee contracts, the Group and EPF use three categories for Investment and Financial Assets accounted for at AC, FVOCI and with the exposure arising from loan commitments and financial guarantee contracts which reflects their credit risk and how the ECL is determined for each of those categories.
A summary of the assumptions underpinning the Group’s and the EPF’s expected credit loss model is set out in Note 2.15. iii.

Recognition of Deferred Tax Assets Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Financial Statements.
Deferred Tax Assets are recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences or unused tax losses can be utilised.

Estimates and Assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year, are described below.
Consolidated Financial Statements were prepared by Group based on assumptions and estimates on available parameter.

Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group.

Such changes are reflected in the assumptions when they occur.

i. Impairment of Investment in Subsidiaries, Associates and Joint Ventures Should indicators exist, these assets are subject to impairment review.
The impairment review comprises a comparison between the carrying amount of the investment and the investment’s estimated recoverable amounts.

160 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.1 Basis of Preparation (Cont’d.)

(d) Significant Accounting Judgements, Estimates and Assumptions (Cont’d.)
i. Impairment of Investment in Subsidiaries, Associates and Joint Ventures (Cont’d.)

Depending on their nature and the location in which the investments relate to, the Group and EPF will select suitable valuation technique such as, amongst others, discounted future cash flows or estimated fair value based on quoted market price of the most recent transactions.
Once a suitable valuation technique is selected, the Group and EPF will make certain assumptions concerning the future to estimate the recoverable amount of the specific individual investment.

These assumptions and other uncertain key sources of estimation at the reporting date, may have a significant risk of causing a material adjustment to the carrying amounts of the investments within the next financial year.
Depending on the specific individual investments, assumptions made by the Group and EPF may include, amongst others, assumptions on expected future cash flows, revenue growth, terminal value, discount rate used for purpose of discounting future cash flows which incorporates the relevant risks and expected future outcome based on certain past trend.
Due to high sensitivity to changes in assumptions, the Group and EPF believe that no reasonably expected possible changes in the key assumptions described above would cause the carrying amount of the investments to materially exceed their recoverable amounts.

ii.
ii.

Expected Credit Loss (“ECL”) Allowance on Investment Assets at Amortised Cost (“AC”) and Financial Assets at Fair Value through Other Comprehensive Income (“FVOCI”) The measurement of the ECL allowance for Investment Assets measured at AC and Financial Assets at FVOCI is an area that requires the use of complex models and significant assumptions about future economic conditions and credit behaviour (e.g.

the likelihood of customers defaulting and the resulting losses).
Explanation of the inputs, assumptions and estimations techniques used in measuring the ECL is further detailed in Note 2.15.
A number of significant judgements are also required in applying the accounting requirements for measuring the ECL, such as: (a) Determining criteria for significant increase in credit risk; (b) Choosing appropriate models and assumptions for the measurement of ECL; (c) Establishing the number and relative weightings of forward-looking scenarios for each type of product/market and the associated ECL; and (d) Establishing groups of similar Financial Assets for the purposes of measuring ECL.
Detailed information about the judgements and estimates made by the Group in the above areas is set out in Note 2.15.

161 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.1 Basis of Preparation (Cont’d.)

(d) Significant Accounting Judgements, Estimates and Assumptions (Cont’d.)

iii.
iii.

Impairment of Financial Assets on Loans, Advance and Financing In estimating the impairment loss on loans, advances and financing, the Group and EPF are required to estimate the amount and timing of future cash flows.

In estimating these cash flows, the Group and EPF make judgement about the borrower’s or the customer’s financial situation and the net realisable value of collateral.

iv.
iv.

Cost Write Down on Listed Equities For equity instruments carried at FVOCI, costs of such instruments are assessed on a yearly basis for each individual equity security.

When there is evidence of significant decline in fair value of listed equities, the unrealised loss residing in Financial Assets at FVOCI Reserve on such securities is recognised as realised loss through an actual transfer to Cumulative Surplus.
The costs of these instruments will be correspondingly written down based on the equivalent amount of losses transferred from FVOCI Reserve to Cumulative Surplus.

v. Valuation of Investment Properties For the purpose of assessing impairment of investment properties which are carried at cost, the carrying amount are compared against the fair value of the investment properties to assess whether there is any indication of impairment.
The measurement of the fair value for this purpose is arrived at by reference to market evidence of transaction prices for similar properties which involves the analysis of sales and adjusting for factors which can influence the value or price of the said properties or the rental of properties that is expected to achieve.
This valuation is performed by Accredited Independent Valuers who hold a recognised and relevant professional qualification and recent experience in the locations and category of properties being valued.

vi.

Deferred Tax and Income Taxes The Group and EPF are subject to income taxes in many jurisdictions and significant judgement is required in estimating the provision for income taxes.
There are many transactions and interpretations of tax law for which the final outcome will not be established until sometime later.

Liabilities for taxation are recognised based on estimates of whether additional taxes will be payable.

The estimation process includes seeking advice on the tax treatments where appropriate.
Where the final liability for taxation is different from the amounts that were initially recorded, the differences will affect the income tax and deferred tax provisions in the period in which the estimate is revised or the final liability is established.

162 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.1 Basis of Preparation (Cont’d.)


(d) Significant Accounting Judgements, Estimates and Assumptions (Cont’d.)

vii.

Post-Retirement Medical Benefit Obligation The present value of Post-Retirement Medical Benefit Obligation depends on a number of factors that are determined on actuarial basis using a number of assumptions.

The assumptions used in determining the net cost for Post-Retirement Medical Benefit Obligation include the discount rate and the expected medical cost rate.
Any changes in these assumptions will impact the carrying amount of Post-Retirement Medical Benefit Obligation.

The Group and EPF performs actuarial valuation once at every three (3) years.

The most recent actuarial valuation was done during the current financial year.

Discount rate used is based on the interest rate of high quality corporate bonds.
This interest rate was used to determine the present value of the estimated expected future cash outflows required to settle the Post-Retirement Medical Benefit Obligation.

In determining appropriate discount rate, the Group and EPF consider the interest rates of high quality Corporate Bonds that are denominated in the currency in which the benefits will be paid and that have term to maturity approximating the terms of the related liability.
The medical cost rate is based on the average historical cost incurred by the Group and EPF.

viii.

Post-Retirement Gratuity Benefit Obligation The present value of Post-Retirement Gratuity Benefit Obligation depends on a number of factors that are determined on actuarial basis using a number of assumptions.

The assumptions used in determining total amount of gratuities include the discount rate, expected annual salary increment and salary revision rate.
Any changes in these assumptions will impact the carrying amount of Post- Retirement Gratuity Benefit Obligation.

The Group and EPF performs actuarial valuation once at every three (3) years.

The most recent actuarial valuation was done during the current financial year.

Discount rate used is based on the interest rate of high quality corporate bonds.
This interest rate was used to determine the present value of the estimated expected future cash outflows required to settle the Post-Retirement Gratuity Benefit Obligation.

In determining appropriate discount rate, the Group and EPF consider the interest rates of high quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have term to maturity approximating the terms of the related liability.
Annual salary increment rate is based on the average of previous year salary increment incurred by the Group and EPF.

163 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.1 Basis of Preparation (Cont’d.)

(d) Significant Accounting Judgements, Estimates and Assumptions (Cont’d.)

ix.
ix.

Methodology Applied on Allocation for Simpanan Shariah and Simpanan Konvensional Members’ contribution has been classified as Simpanan Shariah (SS) or Simpanan Konvensional (SK) based on the option made by the members.

Financial disclosure with regard to members’ contribution based on SS and SK is disclosed at Note 32.
In arriving at the current year’s financial results and financial position for SS and SK, certain ratios have been applied to allocate income, expenses as well as financial position items.

The concept of allocation is introduced with the objective of deriving distributable profit for both SS and SK fairly based on the actual take up for SS and SK members.
As the source of funds in acquiring shariah investment assets are funded from members’ contribution, hence the profit generated from shariah portfolio will be allocated to SS members based on actual funding contributed by SS members.

The remaining will be distributed to SK members.

The following ratios are used by EPF after the implementation of SS to allocate distributable profits to both SS and SK: 1.
Opt-in Ratio (OIR) is used to allocate Cumulative Surplus opening balance to reflect the portion that belongs to SS and SK members accordingly.

2.

Members Savings Ratio (MSR) is used to allocate specific types of income, expenses and financial 3.

4. position items to SS and SK.

Shariah Assets Ratio (SAR) is used to allocate Net Other Assets and Other Net Profits for the year classified as common items to Shariah component balance.
Shariah Income Ratio (SIR) is used to allocate specific types of direct investment expenses and income generated from Shariah Investment Portfolios to SS and SK.

MSR, SAR and SIR are calculated on monthly average basis to ensure that any fluctuation of the ratios during the year are being reflected accurately as at the year end.

Meanwhile, OIR is calculated and applied once at the beginning of every financial year.
2.2 Basis of Consolidation The Consolidated Financial Statements comprises the Financial Statements of the EPF and its subsidiaries which have been prepared as at the financial year end.

The Financial Statements of the subsidiaries are prepared on the same reporting date as the EPF, using consistent accounting policies for transaction and events in similar circumstances.
Subsidiaries are consolidated from the date of acquisition, being the date on which Group and EPF obtain control and continue to be consolidated until the date such control effectively ceased.

All intragroup balances, income, expenses and unrealised gain and losses resulting from intragroup transactions are eliminated in full.

Unrealised gains arising from intragroup transactions with Investment in Associates and Joint Ventures are eliminated to the extent of the Group’s interest in the investees.
Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

164 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.3 Investment in Subsidiaries Subsidiaries are all entities (inclusive those incorporated for special purpose) of which the Group has the power to control.
Control exists when the Group is exposed, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The financial results of the subsidiaries are included in the Consolidated Financial Statements from the date the control is transferred to the Group until the date that control ceases.
The quoted and unquoted Investment in Subsidiaries are stated at cost and thereafter adjusted to its recoverable value which takes into consideration the impairment loss in the said year, if any.

The policy for the recognition and measurement of impairment loss is in accordance with Note 2.15.

Acquisition method is used in accounting for the consolidation of subsidiaries.
The consideration transferred for acquisition of a Subsidiary is the fair value of the assets transferred, equity instruments issued and the existing outstanding liabilities or assumed at the date of exchange.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date.
The excess of consideration transferred over the fair value of the Group’s share of the identifiable net assets acquired at the date of acquisition is reflected as goodwill as per Note 2.11.

If the acquisition cost is less than the fair value of the net assets of the subsidiary acquired, the gain is recognised directly in the Profit or Loss.
Non-Controlling Interests represents the minority portion of the Profit or Loss and net assets of a subsidiary attributable to the equity interests that are not owned directly or indirectly by the parent.

Non-Controlling Interests is measured in respect of its minority share of the subsidiaries identifiable assets and liabilities at fair value as at the acquisition date and the minority share on changes in equity of the subsidiaries from that date.
Intragroup transactions, balances and unrealised gains on transactions between companies of the Group are eliminated.

Unrealised losses are also eliminated but is considered as impairment indicator on the assets transferred.

When the Group ceases to have control, any retained interest in the entity is remeasured to its fair value at the date when control is lost, with the change in carrying amount recognised in Profit or Loss.
This fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an Associate, Joint Venture or Financial Assets.

In addition, any amount previously recognised in Other Comprehensive Income in respect to that entity are accounted for as if the Group had directly disposed of the related assets or liabilities.
Gain or loss on disposal of a Subsidiary is the difference between net disposal proceeds and the Group’s share of its net assets as of the date of disposal including the cumulative amount of any foreign exchange differences that relate to the subsidiary is recognised in the Consolidated of Profit or Loss.

165 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)
2.4 Investment in Associates Associates are entities in which the Group exercise significant influence.

Significant influence is the power to participate in the financial and operating policies decision of the associates but no power to exercise control or joint control over those policies.

The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group has significant influence over another entity.
Investment in Associates are accounted for using the equity method of accounting.

Under the equity method, the Investment in Associates are initially recognised at cost, and adjusted thereafter to recognise the Group’s share of the post-acquisition profits or losses of the associate in profit or loss, and the Group’s share of movement in other comprehensive income of the associate in other comprehensive income.
Dividend received or receivable from an associate are recognised as a reduction in the carrying amount of the investment.

The Group’s Investment in Associates includes Goodwill identified on acquisition.

The quoted and unquoted Investment in Associates are stated at cost and thereafter adjusted to its recoverable value which takes into consideration the impairment loss in the said year, if any.

The policy for the recognition and measurement of impairment loss is in accordance with Note 2.15.
When the Group’s share of losses in an associate equals or exceeds its interest in an associate, including any long term interests that, in substance, form part of the Group’s Investment in Associate, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

2.5 Investment in Joint Ventures A Joint Venture is a joint arrangement whereby the Group has rights to the net assets of the arrangement.
Investment in Joint Ventures are accounted for using the equity method of accounting.

Under the equity method, the Investment in Joint Ventures are initially recognised at cost, and adjusted thereafter to recognise the Group’s share of the post-acquisition profits or losses of the Joint Venture in Profit or Loss, and the Group’s share of movement in Other Comprehensive Income of the Joint Venture in Other Comprehensive Income.
Dividend received or receivable from a Joint Venture are recognised as a reduction in the carrying amount of the investment.

When the Group’s share of losses in a Joint Venture equals or exceeds its interest in a Joint Venture, including any long term interests that, in substance, form part of the Group’s Investment in Joint Venture, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the Joint Venture.
Investment in Joint Ventures is stated at cost and thereafter adjusted to its recoverable value which takes into consideration the impairment loss in the said year, if any.

Policy for the recognition and measurement of impairment loss is in accordance with Note 2.15.

166 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.6 Foreign Currency i.


Foreign Currency Transactions and Balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions.

Foreign exchange gains and losses resulting from the settlement of such transactions, and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates, are generally recognised in profit or loss.
Non-monetary items denominated in foreign currencies that are measured at historical cost are translated using the actual exchange rates as at the date of the initial transaction.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.
Exchange differences arising from the settlement of monetary items or on translating monetary items at the reporting date are recognised in the Profit or Loss except for exchange differences arising on monetary items that form part of the Group’s net investment in foreign operations, which are recognised initially in Other Comprehensive Income and accumulated under Foreign Currency Translation Reserve in the Statements of Financial Position.
Exchange differences arising on the translation of non-monetary items carried at fair value are included in the Profit or Loss for the financial year except for the differences arising on the translation of non-monetary items in respect of which gains and losses are recognised directly in the Other Comprehensive Income.

ii.
ii.

Foreign Operations The results and financial position of foreign operations that have functional currency different from the presentation currency of Ringgit Malaysia (“RM”) of the Consolidated Financial Statements are translated into Ringgit Malaysia (“RM”) as follows: i. ii.
Assets and Liabilities of foreign operations are translated at the closing rate prevailing at the reporting date; Income and expenses for each Profit or Loss are translated at the average exchange rates for the year, which approximates the exchange rates at the dates of the transactions; and iii.

All results for exchange differences are taken directly to Profit or Loss and Other Comprehensive Income through the Foreign Currency Translation Reserve.

2.7 Financial Instruments i.


Initial Recognition and Measurement A financial asset or financial liability is recognised in the Statements of Financial Position when, and only when, the Group or EPF becomes a party to the contractual provisions of the instrument.

Regular purchases and sales of financial assets are recognised on the trade-date, the date on which the EPF commits to purchase or sell the asset.
Investments are initially recognised at fair value plus, in the case of a financial instrument not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial instrument.

167 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.7 Financial Instruments (Cont’d.)

i.

Initial Recognition and Measurement (Cont’d.)


An embedded derivative is recognised separately from the host contract and accounted for as a derivative if, and only if, it is not closely related to the economic characteristics and risks of the host contract and the host contract is not categorised as Fair Value through Profit or Loss (“FVTPL”).

Financial asset with embedded derivative are considered in its entirely when considering their classification and measurement.
The host contract, in the event an embedded derivative is recognised separately, is accounted for in accordance with policy applicable to the nature of the host contract.

ii.
ii.

Financial Instruments Categories and Subsequent Measurements The Group and EPF categorise financial instruments as follows: Financial Assets The classification of financial assets as per MFRS 9 is based on the following measurement categories: - - - Amortised Cost (“AC”); Fair Value through Other Comprehensive Income (“FVOCI”); or Fair Value through Profit or Loss (“FVTPL”).

The classification requirements for debt and equity instruments are described below: a.
Debt Instruments Debt instruments are those instruments that meet the definition of a financial liability from the issuer’s perspective.

Classification and subsequent measurement of debt instruments depend on: i.

Business Model The business model reflects how the Group and EPF manages the financial assets in order to generate cash flows.
That is, whether the Group and EPF’s objective is solely to collect the contractual cash flows from the assets, or is to collect both the contractual cash flows and cash flows arising from the sale of assets.

If neither of these are applicable (e.g.

the financial assets are held for trading purposes), then the financial assets are classified as part of “other” business model.
Factors considered by the Group and EPF in determining the business model for a portfolio of assets include past experience on how the cash flows for these assets were collected, how the asset’s performance is evaluated and reported to key management personnel, and how risks are assessed and managed.

168 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)
2.7 Financial Instruments (Cont’d.)

ii.

Financial Instruments Categories and Subsequent Measurements (Cont’d.)

Financial Assets (Cont’d.)

a.

Debt Instruments (Cont’d.)

ii.

Cash Flow Characteristics Where the business model is to hold the financial assets to collect contractual cash flows, or to collect contractual cash flows and sell, the Group and EPF assesses whether the financial assets’ contractual cash flows represent Solely Payment of Principal and Interest (“SPPI”).
In making this assessment, the Group and the EPF considers whether the contractual cash flows are consistent with a basic lending arrangement, i.e.

interest includes only consideration for time value of money, credit risk, other basic lending risks and a profit margin that is consistent with a basic lending arrangement.

Financial assets with embedded derivatives are considered in their entirely when determining whether their cash flows are SPPI.
Based on these factors, the Group and EPF classified the debt instruments into one (1) of the following three (3) measurement categories: i. Amortised Cost (“AC”) Assets that are held for collection of contractual cash flows where those cash flows represent SPPI, and that are not designated at FVTPL, are measured at AC using the effective interest method.

The carrying amount of these assets is adjusted by any ECL allowance recognised and measured using the methodology described in Note 2.15.
AC is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the Effective Interest Rate (“EIR”).

The EIR amortisation is included in “interest income” in Profit or Loss.

The losses arising from impairment are recognised in the Profit or Loss in “Net Impairment on Financial Investment Assets”.
The Group’s and EPF’s debt instruments classified as AC comprise Financial Assets at AC, Loans, Advances and Financing, Receivable and Deposits, Deposits with Financial Institutions and Cash and Bank Balances.

Included in Financial Assets at AC are Fixed Income Investment Instruments such as Malaysian Government Securities, Government Investment Issues, Bonds and Private Debts Securities.

169 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.7 Financial Instruments (Cont’d.)

ii.

Financial Instruments Categories and Subsequent Measurements (Cont’d.)

Financial Assets (Cont’d.)

a.

Debt Instruments (Cont’d.)

ii.

Cash Flow Characteristics (Cont’d.)

ii.


Fair Value through Other Comprehensive Income (“FVOCI”) Financial assets that are held for contractual cash flows and for selling the assets, where the assets’ cash flows represent SPPI, and are not designated at FVTPL, are measured at FVOCI.
Changes in the fair value are recognised through other comprehensive income, except for the recognition of impairment losses measured using the methodology described in Note 2.15, interest income and foreign exchange gains or losses on the assets’ AC which are recognised in Profit or Loss.

Interest earned whilst holding the assets are reported as “interest income” using the effective interest method.
The losses arising from impairment are reclassified from Other Comprehensive Income to Profit or Loss in “Impairment Losses on Financial Investment Assets”.

When the financial asset is derecognised, the cumulative gain or loss previously recognised in Other Comprehensive Income is reclassified to Profit or Loss and recognised in “Gross Investment Income”.

The Group’s and EPF’s debt instruments classified as FVOCI comprises of Global and Domestic Fixed Income Investment instrument.

iii.
iii.

Fair Value through Profit or Loss (“FVTPL”) Financial assets that do not meet the criteria for AC or FVOCI, including financial assets held-for-trading and derivatives, are measured at FVTPL.

A gain or loss on an asset that is subsequently measured at FVTPL and is not part of a hedging relationship is recognised in Profit or Loss and presented within “Gross Investment Income”.

Interest earned whilst holding the assets are reported as “interest income” using the effective interest method.
In addition, financial assets that meet the criteria for AC or FVOCI may be irrevocably designated by management as FVTPL on initial recognition, provided the designation eliminates or significantly reduces the inconsistent treatment that would otherwise arise from measuring the assets or liabilities or recognising gains or losses on them on a different basis.

Such designation is determined on an instrument by instrument basis.
Any change in fair value is recognised in Profit or Loss and presented within “Gross Investment Income”.

Interest earned is recognised in “Interest Income” using the effective interest method.

170 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.7 Financial Instruments (Cont’d.)

ii.

Financial Instruments Categories and Subsequent Measurements (Cont’d.)
Financial Assets (Cont’d.)

a.

Debt Instruments (Cont’d.)

ii.

Cash Flow Characteristics (Cont’d.)

iii.

Fair Value through Profit or Loss (“FVTPL”) (Cont’d.)

The fair value of forward contracts is determined by using forward exchange rates at the date of Statements of Financial Position with the resulting value discounted back to present value.

Reclassification of Debt Investments The Group and EPF reclassify debt investments when and only when its business model for managing those assets changes.
The reclassification takes place from the start of the first reporting period following the change.

Such changes are expected to be very infrequent and none occurred during the financial year.

b.

Equity instruments Equity instruments are instruments that meet the definition of equity from the issuer’s perspective, that is, instruments that do not contain a contractual obligation to pay and that evidence of a residual interest in the issuers’ net assets.
The Group and EPF subsequently measure all equity investments at FVTPL, except where the management has elected at initial recognition to irrevocably designated an equity investment that is not held for trading at FVOCI.

When this election is used, fair value gains and losses are recognised in Other Comprehensive Income and are not subsequently reclassified to Profit or Loss, including on disposal.
Dividends earned whilst holding the equity investment are recognised in Profit or Loss as “Gross Investment Income” when the right to the payment has been established.

Gains and losses on equity investments at FVTPL, including dividends earned, are included in “Gross Investment Income” in Profit or Loss.

c. Loans, Advances and Financing Loans, Advances and Financing are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.
Loans, Advances and Financing are recognised on the trade date in which the Group and EPF commit to give out loans plus related transaction costs, if any.

The subsequent measurement of this financial asset is at AC using the effective yield method.

Included in Loans, Advances and Financing are Staff Loans financial assets and Capital Advances to Subsidiaries.

171 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.7 Financial Instruments (Cont’d.)

ii.

Financial Instruments Categories and Subsequent Measurements (Cont’d.)

Financial Assets (Cont’d.)

d. Staff Loans Staff Loans are initially measured as fair value and subsequently measured at amortised cost using the effective interest method.
There are three (3) types of loan schemes offered to the EPF’s staffs at the interest rate approved by the Board based on the terms and conditions of service as follows: Housing Loan Scheme; i. ii.

Vehicle Loan Scheme; and iii.

Personal Loan Scheme.

The fund used to finance staff loans for the abovementioned three (3) schemes is subject to the allocation of funds as approved by the Board.

e. Receivables Receivables are carried at invoice amount less allowance for impairment losses.
There is no significant impact to state Receivables at fair value in the subsequent measurement.

Allowance for impairment losses is made when there is an objective evidence that the Group will not be able to collect all amount due according to the original terms of receivables as disclosed in Note 2.15.

All financial assets, except for those measured at FVTPL, are subject to review for impairment as per Note 2.15.
Financial Liabilities All financial liabilities are subsequently measured at AC other than those categorised as FVTPL.

FVTPL category comprises financial liabilities that are derivatives (except for a derivative that is a financial guarantee contract), contingent consideration in a business combination or financial liabilities that are specifically designated into this category upon initial recognition.
Other financial liabilities categorised as FVTPL are subsequently measured at fair values with the gain or loss recognised in the Profit or Loss.

172 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.7 Financial Instruments (Cont’d.)

ii.

Financial Instruments Categories and Subsequent Measurements (Cont’d.)

Financial Liabilities (Cont’d.)

i.


Hedge Accounting Cash Flow Hedge A cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction and could affect the Profit or Loss.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in the Statements of Other Comprehensive Income and accumulated in the Cash Flow Hedge Reserve.

The gain or loss relating to the ineffective portion is recognised immediately in the Profit or Loss.
However, if the Group closes out its position early, the cumulative gains and losses recognised in Statement of Other Comprehensive Income are frozen and reclassified from the Cash Flow Hedging Reserves to the Profit or Loss using the effective interest method.

ii.
ii.

Derecognition A financial asset or part of it is derecognised when, and only when the contractual rights to the cash flows from the financial asset expire or the financial asset is transferred to another party without retaining control or substantially all risks and rewards of the asset.
On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received (including any new asset obtained less any new liability assumed) and any cumulative gain or loss that had been recognised in the Statement of Financial Position is recognised in the Profit or Loss.

A financial liability or a part of it is derecognised when, and only when, the obligation specified in the contract is discharged or cancelled or expires.
On derecognition of a financial liability, the difference between the carrying amount of the financial liability extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in the Profit or Loss.

iii.
iii.

Financial Guarantee Contract A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument.

173 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)
2.7 Financial Instruments (Cont’d.)

ii.

Financial Instruments Categories and Subsequent Measurements (Cont’d.)

Financial Liabilities (Cont’d.)

iii.

Financial Guarantee Contract (Cont’d.)

Financial guarantees issued are initially measured at fair value.
Subsequently, they are measured at higher of: (a) (b) the amount of the loss allowance; and the amount initially recognised less, when appropriate, the cumulative amount of income recognised in accordance to the principles of MFRS 15, Revenue from Contracts with Customers.

Liabilities arising from financial guarantees are presented within “Accruals on Investment Payments” under Payables and Accrued Liabilities.

iii.

Income Recognition i.


Interest, Financing and Profit Income and Expenditure Interest and profit income and expense for all interest/profit-bearing financial instruments are recognised within “Gross Investment Income” and “Operating Expenditures” respectively in the statement of income using the effective interest/profit method.
The effective interest/profit method is a method of calculating the amortised cost of a financial asset or a financial liability and of allocating the interest/profit income or interest/profit expense over the relevant period.

The effective interest/profit rate is the rate that exactly discounts estimated future cash payments or receipts throughout the expected life of the financial instruments or, when appropriate, a shorter period to the net carrying amount of the financial asset or financial liability.
When calculating the effective interest/profit rate, the Group and EPF take into account all contractual terms of the financial instrument and includes any fees or incremental costs that are directly attributable to the instrument and are an integral part of the effective interest/profit rate, but not future credit losses.
Interest/profit income is calculated by applying effective interest/profit rate to the gross carrying amount of a financial asset except for financial assets that subsequently become credit-impaired.

For credit-impaired financial assets the effective interest/profit rate is applied to the net carrying amount of the financial assets (after deduction of the loss allowance).

Loan arrangement fees and commissions are recognised as income based on contractual arrangements.

ii.
ii.

Dividend Income Dividend Income is recognised in Profit or Loss on accrual basis when the Group’s and EPF’s right to receive the dividend has been established.

For dividend from quoted equity, the recognition is on the ex-dividend date.

174 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.7 Financial Instruments (Cont’d.)

iii.

Income Recognition (Cont’d.)

iii.


Capital Gain Capital Gain arising from sales of investment instruments is also recognised on accrual basis and takes into account the effects of foreign exchange for the global investment instruments.

Capital Gain is recognised when the risks and rewards of ownership of the investment instruments have been significantly transferred to the buyers.
2.8 Property, Plant and Equipment and Depreciation Property, Plant and Equipment are stated at cost less accumulated depreciation and accumulated impairment loss.

Costs include expenditures that are directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and EPF and the costs of the item can be measured reliably.

The carrying amount of the replaced part is derecognised.

All other repairs and maintenance are charged to the Profit or Loss during the financial year in which they are incurred.
Freehold Land and Work in Progress are not depreciated.
All other Property, Plant and Equipment are depreciated using straight line method based on the following estimated useful life: Buildings Building Plant and Machinery Office/Building Renovation Furniture, Fixtures and Fittings Motor Vehicles Office Equipment Computer Software and Hardware 30 years - 50 years 5 years - 10 years 5 years - 10 years 5 years 5 years 5 years 3 years - 5 years Furniture, Fixtures and Fittings and Office Equipment which costs below RM1,000 per unit is fully depreciated in the year of acquisition.
Office/Building Renovation valued at RM100,000 and above is capitalised.

For renovation of which the project cost is less than RM100,000, such renovation cost is charged to current year expenses.

Residual values and useful lives of assets are reviewed, and adjusted if appropriate, at each Statements of Financial Position date.

At each Statements of Financial Position date, the Group and EPF assesses whether there is any indication of impairment.
Valuation on properties is performed once every five (5) years, or more frequently, if events or changes in circumstances indicate that the carrying amount may be impaired.

If such indications exist, an analysis is performed to assess whether the carrying amount of the asset is fully recoverable.

Impairment loss is recognised if the carrying amount exceeds the recoverable amount as disclosed in Note 2.15.
Upon the disposal of Property, Plant and Equipment, the difference between net disposal proceeds and carrying amount is recognised in the Profit or Loss.

If an item of owner-occupied property becomes an investment property because its use has changed, the carrying amount of the property does not change.

175 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.9 Leases i.
2.9 Leases i.

Accounting by Lessee Leases are recognised as Right-of-Use (“ROU”) Assets and a corresponding liability at the date on which the leased asset is available for use by the Group and EPF.

Contracts may contain both lease and non-lease components.

The Group and EPF allocate the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices.
Lease Term In determining the lease term, the Group and EPF consider all facts and circumstances that create an economic incentive to exercise an extension option, or not to exercise a termination option.

Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not to be terminated).

There are no covenants imposed in the lease agreements.

However, leased assets may not be used as security for borrowing purposes.
Some leases provide for an additional rent payments that are based on changes in local price indices; these amounts are generally determined annually.
The Group and EPF reassess the lease term upon the occurrence of a significant event or a change in circumstances that is within the control of the Group and EPF and affects whether the Group and EPF are reasonably certain to exercise an option not previously included in determination of lease term, or not to exercise an option previously included in determination of lease term.

A revision of lease term results in remeasurement of the lease liabilities.
See accounting policy below on reassessment of Lease Liabilities.

ROU Assets ROU Assets that are not Investment Properties are subsequently measured at cost, less accumulated depreciation and impairment loss (if any).

The ROU Assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.

If the Group and EPF are reasonably certain to exercise a purchase option, the ROU Assets depreciated over the underlying asset’s useful life.
In addition, the ROU Assets are adjusted for certain remeasurement of Lease Liabilities.

ROU Assets are initially measured at cost comprising the following: The amount of the initial measurement of Lease Liabilities; a. b.

Any lease payments made at or before the commencement date less any lease incentive received; c. Any initial direct cost; and d. Decommissioning or restoration costs.
176 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.9 Leases (Cont’d.)

i.

Accounting by Lessee (Cont’d.)

ROU Assets (Cont’d.)

The Group and EPF present ROU Assets that meet the definition of Investment Property in the Statement of Financial Position as Investment Property.
ROU Assets that are not Investment Properties are presented as a separate line item in the Statement of Financial Position.

Lease Liabilities Lease Liabilities are initially measured at the present value of the lease payments that are not paid at that date.

The lease payments include the following: Fixed payments, less any lease incentive receivable; a. b.
Variable lease payments that are based on index or a rate, initially measured using the index or rate as at the commencement date; c. Amounts expected to be payable by the Group and EPF under residual value guarantees; d. The exercise price of a purchase and extension options if the Group and EPF are reasonably certain to exercise that option; and Payments of penalties for terminating the lease, if the lease term reflects the Group and EPF exercising that option.
e. Lease payments are discounted using the interest rate implicit in the lease.

If that rate cannot be readily determined, which is generally the case for leases in the Group and EPF, the lessee’s incremental borrowing is used.

This is the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the ROU in a similar economic environment with similar term, security and conditions.

Lease payments are allocated between principal and finance cost.
The finance cost is charged to Profit or Loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

Variable lease payments that depends on sales are recognised in Profit or Loss in the period in which the condition that triggers those payments occurs.
For Group and EPF, the variable lease payments arise from the ground rent equivalent to a certain percentage of rent received from commercial occupational tenants subject to minimum payment per annum.

There are also ground rent that are subject to peppercorn rent.

The Group and EPF present the Lease Liabilities as a separate line item in the Statement of Financial Position.

Profit expense on the Lease Liabilities is presented within the operating expenditure in Profit or Loss.
177 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.9 Leases (Cont’d.)

i.

Accounting by Lessee (Cont’d.)

Reassessment of Lease Liabilities The Group and EPF are also exposed to potential future increases in variable lease payments that depends on an index or a rate, which are not included in the Lease Liabilities until they take effect.
When adjustments to lease payments based on index or rate take effect, the Lease Liabilities are remeasured and adjusted against the ROU Assets.

Short Term Leases and Leases of Low Value Assets Short-term leases are leases with a lease term of 12 months or less.

Payments associated with short-term leases of equipment and all leases of low-value assets are recognised on a straight-line basis as an expense in Profit or Loss.
For Group and EPF, low-value assets are assets valued at cost of RM20,000 and below per asset.

ii.

Accounting by Lessor As a lessor, the Group determines at lease inception whether each lease is a finance lease or an operating lease.

To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset to the lessee.
As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

Finance Lease The Group classifies a lease as a finance lease if the lease transfers substantially all the risks and rewards incidental to ownership of an underlying asset to the lessee.

The Group derecognises the underlying asset and recognises a receivable at an amount equal to the net investment in a finance lease.
Net investment in a finance lease is measured at an amount equal to the sum of the present value of lease payments from lessee and the unguaranteed residual value of the underlying asset.

Initial direct costs are also included in the initial measurement of the net investment.

The net investments is subject to MFRS 9, Impairment (refer to Note 2.15 on impairment of financial assets).

In addition, the Group reviews regularly the estimated unguaranteed residual value.
Lease income is recognised over the term of the lease using the net investment method so as to reflect a constant periodic rate of return.

The Group revises the lease income allocation if there is a reduction in the estimated unguaranteed residual value.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.9 Leases (Cont’d.)

ii.

Accounting by Lessor (Cont’d.)


Operating Lease When assets are leased out under operating lease, the assets are included in the Statements of Financial Position based on the nature of the assets.

Lease income is recognised over the term of the lease on a straight-line basis.

Sublease Classification When the Group is an intermediate lessor, it assesses the lease classification of a sublease with reference to the ROU asset arising from the head lease, not with reference to the underlying asset.
If a head lease is short-term lease to which the Group applies the exemption described above, then it classifies the sublease as an operating lease.

2.10 Investment Properties Investment Properties comprise land and buildings, which are held for long term rental yields or for capital appreciation or both, and are not fully or insignificantly occupied by the Group and EPF.

Investment Properties are stated at cost less any accumulated depreciation and any accumulated impairment losses.
Investment Properties are depreciated on a straight line basis based on estimated useful life of 40 to 50 years.

On disposal of an Investment Property, or when it is permanently withdrawn from use and no future economic benefits are expected from its disposal, it shall be derecognised from the Statements of Financial Position.

The difference between the net disposal proceeds and the carrying amount is recognised in the Profit or Loss in the period of the retirement or disposal.
The depreciation rate for building which has been classified as Investment Properties is based on the useful life of 30 to 50 years as stated in Note 2.8.

At each date of Statements of Financial Position, the Group and EPF assess whether there is any indication of impairment.

If such indications exist, an analysis is performed to assess whether the carrying amount of the asset is fully recoverable.
Impairment loss is recognised if the carrying amount exceeds the recoverable amount as disclosed in Note 2.15.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.11 Intangible Assets a.


Goodwill Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognised for Non-Controlling Interests over the net identifiable assets acquired and liabilities assumed.

If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the gain is recognised in the Profit or Loss.

After initial recognition, Goodwill is measured at cost less accumulated impairment losses.
Goodwill is reviewed for impairment annually, or more frequently, if events or changes in circumstances indicate that the carrying amount may be impaired.

Impairment loss on Goodwill will not be written back.

Accounting policy associated with recognition and measurement of impairment loss is in accordance with Note 2.15. b.

Other Intangible Assets Intangible Assets other than Goodwill that are acquired is initially measured at cost.
Following initial acquisition, these Intangible Assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Intangible Assets with finite useful life are amortised over the estimated economic useful life and assessed for impairment whenever there is an indication that the intangible asset may be impaired.

The amortisation expense on Intangible Assets with finite life is recognised in Profit or Loss.
Intangible Assets that have an indefinite useful life are not amortised and tested for impairment annually, or more frequently if the event and circumstances indicate that the carrying amount may be impaired.

The useful life of an Intangible Asset with an indefinite useful life is reviewed annually to determine whether the useful life assessment continues to be supportable.

If not, the change in useful life from indefinite to finite is made on a prospective basis.
Other Intangible Assets and their estimated economic useful life are as follows: Core Deposit License and Information Technology Software Banking License Six (6) years Five (5) years Indefinite 2.12 Assets Held for Sale Non-current assets, or disposal group comprising assets and liabilities of Group and EPF, are classified as Asset Held for Sale if their carrying amount will be recovered primarily through sale rather than continuing use.
They are measured at the lower of their carrying amount and fair value less costs of sale, thereafter.

Once classified as Assets Held for Sale, the non-current assets are not amortised or depreciated.

Such assets will be derecognised upon disposal and the differences between net sale proceeds and the carrying amount is recognised as realised gain or losses in the period in which the assets being disposed.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.12 Assets Held for Sale (Cont’d.)


Assets which cease to be classified as held for sale are measured at the lower of their carrying amount before the asset (or disposal group) was classified as Assets Held for Sale, adjusted for depreciation, amortisation or revaluation that may have been recognised had the assets not been classified as Assets Held for Sale, and the recoverable amount at the date when decision not to sell is made.
An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs of disposal.

A gain is recognised for any subsequent increases in fair value less costs of disposal of an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognised.

A gain or loss not previously recognised by the date of the sale of the non-current asset (or disposal group) is recognised at the date of derecognition.
2.13 Contract Asset/Contract Liability Contract Asset is the right to consideration for goods or services transferred to the customers when that right is conditioned on something other than the passage of time (e.g EPF’s future performance).

In the case of property development and construction contracts, Contract Asset is the excess of cumulative revenue earned over the billings to-date.
The Group and EPF assess the Contract Assets for impairment at each reporting period and the loss allowance is measured at an amount equal to lifetime Expected Credit Losses (“ECL”) for the Contract Asset.

Contract Liability is the obligation to transfer goods or services to customer for which the Group and EPF have received the consideration or have billed the customer.
In the case of property development and construction contracts, Contract Liability is the excess of the billings to-date over the cumulative revenue earned.

Contract liabilities include downpayments received from customers and other deferred income where the Group and EPF have billed or have collected the payment before the goods are delivered or services are provided to the customers.
2.14 Cash and Cash Equivalents For the purpose of Statements of Cash flows, Cash and Cash Equivalents consist of cash in hand, balances with banks (including those managed by External Fund Managers), deposits with financial institutions and highly liquid investment which have an insignificant risk of changes in fair value with original maturities of three (3) months or less.

Cash and Cash Equivalents are used by the Group and EPF in the management of their short term commitments.
The Group and EPF classifies the cash flows from dividend from the investments that it manages as its main operating activities as operating cash flows, whereas dividend from subsidiaries, associates and joint ventures are classified as investing cash flows.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)
2.15 Impairment Non-Financial Assets Non-financial assets that have indefinite useful life which are not subject to amortisation are assessed annually for impairment.

Non-financial assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recovered.

Impairment loss is recognised when the carrying amount of non-financial assets exceeds its recoverable amount.
The recoverable amount is the higher of fair value of non-financial assets less costs to sell and the value in use.

For the purposes of assessing impairment, non-financial assets are grouped at the lowest level for which cash flows (cash-generating units) can be separately identified.

Non-financial assets other than Goodwill that is impaired are reviewed for possible reversal of the impairment at each reporting year.

Impairment loss is charged to Profit or Loss.


In respect of other non-financial assets, any subsequent increase in the recoverable amount is recognised in Profit or Loss except for the reversal of an impairment loss on a revalued non-financial assets in which it is accounted for in Revaluation Surplus Account.
Financial Assets Impairment of Financial Assets The Group and EPF applies a three (3) stage approach to measuring Expected Credit Losses (“ECL”) for the following categories of financial assets that are not measured at FVTPL: - - - Debt instruments measured at AC and FVOCI; Loan commitments; and Financial guarantee contracts.

No ECL is recognised on equity investments.


Obligatory triggers applied by the Group and EPF in determining whether there has been a significant increase in credit risk is where the principal or profit or both of the financing assets are overdue between one (1) to six (6) months or hit any of the qualitative indicators such as increase in the internal credit spread of an existing facility, breach of covenants and decrease in securities prices.
The credit risk may also be deemed to have increased significantly since initial recognition based on qualitative factors linked to the Group’s and the EPF’s credit risk management processes.

This will be the case for exposures that meet certain heightened risk criteria, such as placement on a watchlist.

Such qualitative factors are based on the management’s expert judgement and relevant historical experience.
The Group and EPF determine days past due by counting the number of days since the earliest elapsed due date in respect of which full payment has not been received.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.15 Impairment (Cont’d.)

Financial Assets (Cont’d.)

Impairment of Financial Assets (Cont’d.)


If there is evidence that there is no longer a significant increase in credit risk relative to initial recognition, then the loss allowance on a financial asset returns to being measured as 12 months ECL.

Some qualitative indicators of an increase in credit risk, such as delinquency or forbearance, may be indicative of an increased risk of default that persists after the indicator itself has ceased to exist.
In these cases, the Group and EPF determine a probation period during which the financial asset is required to demonstrate good behaviour to provide evidence that its credit risk has declined sufficiently.

When contractual terms of a financing have been modified, evidence that the criteria for recognising lifetime ECL are no longer met includes a history of up-to-date payment performance against the modified contractual terms.
Financial assets that have not been individually assessed are grouped together for portfolio impairment assessment.

These financial assets are grouped according to their credit risk characteristics for the purposes of calculating an estimated collective loss.

Future cash flows on a group of financial assets that are collectively assessed for impairment are estimated on the basis of historical loss experience for assets with credit risk characteristics similar to those in the group.
Financial assets move through the following three (3) stages based on the change in credit risk since initial recognition: Stage 1: 12 Months ECL For exposures where there has not been a significant increase in credit risk since initial recognition and that are not credit impaired upon origination, the portion of the lifetime ECL associated with the probability of default events occurring within the next 12 months is recognised.
Stage 2: Lifetime ECL–Not Credit Impaired For exposures where there has been a significant increase in credit risk since initial recognition but are not credit impaired, a lifetime ECL (i.e.

reflecting the remaining lifetime of the financial asset) is recognised.
The Group and EPF assesses if an exposure has increased in credit risk since initial recognition (Stage 2) through the following criteria: - - - Credit rating deterioration as determined by EPF impairment policy; Missing origination ratings; and Restructured and rescheduled due to increase in credit risk.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.15 Impairment (Cont’d.)


Financial Assets (Cont’d.)

Impairment of Financial Assets (Cont’d.)

Stage 3: Lifetime ECL – Credit Impaired Exposures are assessed as credit impaired when one or more events that have a detrimental impact on the estimated future cash flows of that asset have occurred.
For exposures that have become credit impaired, a lifetime ECL is recognised and interest revenue is calculated by applying the effective interest rate to the AC (net of provision) rather than the gross carrying amount.
The Group or EPF assesses if an exposure is credit-impaired through the following criteria: Investment Asset at AC 1 Decline in investment grade rating below the acceptable investment grade as at the Statements of Financial Position date; Default in paying principal/interest according to the repayment schedule; Cease business operations/bankruptcy (upon filing of the case); 2 3 4 Winding up order on business operations; 5 6 Material fraud with publicised news/upon appointment of financial advisor; 7 8 Company invested has been classified as PN17; Company invested received a Qualified Audit Certificate; and There is significant deterioration of financial performance of the company which allows the Management to decide to perform impairment assessment of Stage 3 based on Judgmental Triggers as permitted under MFRS 9.
Financial Asset at FVOCI 1 Decline in investment grade rating below the acceptable investment grade as at the Statements of Financial Position date; Default in paying principal/interest according to the repayment schedule; Cease business operations/bankruptcy (upon filing of the case); 2 3 4 Winding up order on business operations; 5 6 Material fraud with publicised news/upon appointment of financial advisor; 7 8 Company invested has been classified as PN17; Company invested received a Qualified Audit Certificate; and There is significant deterioration of financial performance of the company which allows the Management to decide to perform impairment assessment of Stage 3 based on Judgmental Triggers as permitted under MFRS 9.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.15 Impairment (Cont’d.)

Financial Assets (Cont’d.)

Impairment of Financial Assets (Cont’d.)

Stage 3: Lifetime ECL – Credit Impaired (Cont’d.)
Loans, Advances and Financing 1 Decline in investment grade rating below the acceptable investment grade as at the Statements of Financial Position date; Default in paying principal/interest according to the repayment schedule; Borrower ceased business operations/bankruptcy (upon filing of the case); Borrower received winding up order on business operations; 2 3 4 5 Material fraud with publicised news/upon appointment of financial advisor; and 6 Borrower received a Qualified Audit Certificate.
Measurement of the ECL The Expected Credit Loss (ECL) is measured on either a 12 months or lifetime basis depending on whether a significant increase in credit risk has occurred since initial recognition or whether an asset is considered to be credit-impaired.
Stage 1 and 2 Expected credit losses of Stage 1 and 2 exposures are the discounted product of the Probability of Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD), defined as follows: a. b. c. PD represents the likelihood of a borrower defaulting on its financial obligation, either over the next 12 months or over the remaining lifetime of the obligation; EAD is based on the amounts the Group expects to be owed at the time of default, over the next 12 months or over the remaining lifetime; and LGD represents the Group’s expectation of the extent of loss on a defaulted exposure.
The ECL is determined by projecting the PD, EAD and LGD for each future month for each individual exposure.

These three components are multiplied together and adjusted for the likelihood of survival.

Stage 3 Stage 3 ECL is measured as the difference between the carrying amount of the financial assets and the present value of estimated future cash flows discounted at the financial asset’s original effective yield method.
The carrying amount of the financial assets is reduced and the amount of the impairment loss is recognised in Profit or Loss.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.15 Impairment (Cont’d.)

Financial Assets (Cont’d.)

Impairment of Financial Assets (Cont’d.)

Stage 3 (Cont’d.)
Stage 3 (Cont’d.)

Receivables The Group and EPF apply simplified approach as permitted by MFRS 9, which requires an entity to recognise a loss allowance based on lifetime ECL at each reporting date.

MFRS 9 allows the use of practical expedients when measuring ECL and states that a provision matrix is an example of such expedient for trade receivables and contract assets.
An entity that applies a provision matrix may use historical loss experience on its trade receivables, and adjust historical loss rates to reflect information about current conditions and reasonable and supportable forecasts of future economic conditions.

Forward Looking Information The assessment of significant increase in credit risk and calculation of ECL both incorporate forward looking information.
The Group and EPF have performed historical analysis and identified the key economic variables impacting credit risk and expected credit losses for each portfolio.

Expert judgement has also been applied in this process.

Forecasts of these economic variables are provided by EPF Economic and Research Department on an annual basis and provide the best estimate view of the economy over the next five (5) years.
In addition, EPF Economic and Research Department also provide other possible scenarios along with scenario weightings.

Write-down/Write-off Financial assets and related impairment allowances are normally written-down, either partially or in full, when there is no realistic prospect of recovery of the financial assets.

Where financial assets are secured, the written- down is normally done after receipt of any proceeds from the realisation of security.
However, the Group and EPF will continue to collect and monitor the written down financial assets.

2.16 Modifications of Financial Assets and Financial Liabilities Financial Assets The Group and EPF evaluate whether the cash flows of the modified asset are substantially different if the terms of a financial asset are modified.

Modification made to the original payment terms and conditions of the financing facility following an increase in the credit risk of the customer.
This includes but is not limited to an extension of tenure and flexible payment schedule including payment vacation, profit payments, or capitalisation of principal or profit or both.

Once the financing assets have been modified, its satisfactory performance is monitored for a period of six (6) months before it can be reclassified as non-credit impaired.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.16 Modifications of Financial Assets and Financial Liabilities (Cont’d.)

Financial Assets (Cont’d.)

If the cash flows are substantially different, then the contractual rights to cash flows from the original financial asset are deemed to have expired.

In this case, the original financial asset is derecognised and a new financial asset is recognised at fair value.
If the cash flows of the modified asset carried at amortised cost or FVOCI are not substantially different, the modification does not result in derecognition of the financial asset.

In this case, the Group and EPF recalculate the gross carrying amount of the financial asset using the original effective profit rate of the asset and recognises the amount arising from adjusting the gross carrying amount as a modification gain or loss in Profit or Loss.
If such modification is carried out because of financial difficulties of the borrower, then the gain or loss is presented together with impairment losses.

In other cases, it is presented as profit income, calculated using the effective interest/profit rate method.

Financial Liabilities The Group and EPF derecognise a financial liability when its terms are modified and the cash flows of the modified liability are substantially different.
In this case, a new financial liability based on the modified terms is recognised at fair value.

The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised in profit or loss.
If the modification of a financial liability is not accounted for as derecognition, then the amortised cost of the liability is recalculated by discounting the modified cash flows at the original effective profit rate and the resulting gain or loss is recognised in profit or loss.

2.17 Inventories Inventories of the Group comprises of Land Held for Property Development, Land Held for Sales and Hotel Inventories.

a.
a.

Land Held for Property Development The costs of Land Held for Property Development is stated at the lower of historical cost and net realisable value.

The cost of Land Held for Property Development consists of the purchase price of land, professional fees, stamp duties, commissions, conversion fees, other relevant levies and direct development cost incurred in preparing the land for development.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated cost necessary to make the sale.

If net realisable value cannot be determined reliably, these Inventories will be stated at the lower of cost and the fair value less costs to sell.

Fair value is the amount the Inventory can be sold in an arm’s length transaction.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.17 Inventories (Cont’d.)

a.

Land Held for Property Development (Cont’d.)

Land Held for Development is land for which no significant development work has been undertaken or where development activities are not expected to be completed within the normal operating cycle.
Land Held for Development is transferred to Land Held for Sale when development activities have commenced and where development activities can be completed within the Group’s normal operating cycle.

b.

Land Held for Sale Land Held for Sale includes completed properties and are stated at the lower of historical cost and net realisable value.
The carrying amount comprise costs associated with the acquisition of land or such portion thereof and all costs directly attributable to development activities or that can be allocated on a reasonable basis to these activities.

c. Hotel Inventories The cost of Hotel Inventories is calculated using the first-in first-out (FIFO) method and includes expenditure incurred in acquiring the inventories and other costs incurred in bringing them to their existing location.

2.18 Taxation and Zakat a.


Taxation The EPF is exempted from income tax on its income under paragraph 20 - Schedule 6, Part I, Income Tax Act, 1967.

Income tax of the subsidiaries on the Profit or Loss for the year comprises of current and deferred tax.

Current tax is the expected amount of income taxes payable in respect of the taxable profit for the year and is measured using the tax rates that have been enacted at the Statements of Financial Position date.
Deferred tax is provided for, using the liability method, on the temporary differences at the Statements of Financial Position date between the tax bases of assets and liabilities and its carrying amounts at the Statements of Financial Position date.
Principally, Deferred Tax Liabilities are recognised for all taxable temporary differences and Deferred Tax Assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that taxable profit will be available against of which the deductible temporary differences, unused tax losses and unused tax credits can be utilised.
Deferred tax is not recognised if the temporary differences arises from the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.18 Taxation and Zakat (Cont’d.)

a.

Taxation (Cont’d.)


Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled, based on tax rates that have been enacted or substantively enacted at the Statements of Financial Position date.
Deferred tax is recognised in the Profit or Loss, except when it arises from a transaction which is recognised directly in the Statements of Financial Position, in which case the deferred tax is also charged or credited directly in the Statements of Financial Position, or when it arises from a business combination that is an acquisition, in which case the deferred tax is included in the resulting Goodwill or Negative Goodwill.
b. Zakat This represent business zakat payable by a subsidiary in compliance with Shariah principles and as approved by the Shariah Advisory Committee.

Zakat is computed based on working capital method at a rate of 2.5%.

2.19 Employee Benefits a.

Short Term Benefits Wages, salaries, bonuses, social security contributions and gratuity paid to contract staff are recognised as an expense in the year in which the associated services are rendered by employees of the Group and EPF.
Short term accumulating compensated absences such as paid annual leaves are recognised when services are rendered by employees whereas short term non-accumulating compensated absences such as sick leave are recognised when the absences occur.

b.

Defined Contribution Plans Contribution is made to the EPF for all EPF employees.

c. Long Term Benefits Gain or loss on the actuarial valuation is fully recognised in Other Comprehensive Income in the financial period which they occur.
Payment of long term benefits post retirement and/or after the expiry of the contract, is recognised on an accrual basis in the current year Profit or Loss within employee benefits expenses, whereas in the Statements of Financial Position, such amount is recognised as liability and shown within Employee Benefits.

Types of long term benefits which will be recognised as an accrual basis are as follows: Post-retirement medical benefit; i. ii.

Gratuity to retirees; and iii.


Cash award in lieu of annual leave (inclusive of the employer share on contributions for such payments).

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.19 Employee Benefits (Cont’d.)

c. Long Term Benefits (Cont’d.)


The computation of post-retirement medical benefits and gratuity liability to retirees are determined by an actuarial valuation which is performed once in every three (3) years.

The computation of gratuity liability to contract staffs and cash award in lieu of annual leave to retiree is based on actual information available at the Statements of Financial Position date and the eligibility is based on the term and condition of service.
The current salary rate is used to compute these liabilities.

d. Termination Benefits Termination benefits are payable whenever an employee accepts voluntary redundancy in exchange for these benefits.

The Group and EPF recognises Termination Benefits when it is demonstrably committed to either terminate the employment of current employees according to a detailed formal plan without the intention to withdraw the plan.
2.20 Loans and Overdraft Loans and overdraft are initially recognised at fair value less transaction costs.

Subsequently, loans and overdraft are stated at AC using the effective interest method.

The difference between collectable amount (less transaction costs) and redeemable value is recognised in the Profit or Loss across the tenure of the loans.
Interest, dividend, losses and gains relating to the financial instruments or its component, classified as liability is reported as an investment expenses in the Profit or Loss.

Loans are classified as current liabilities unless the Group and EPF have unconditional rights to postpone the settlement of the liabilities to the minimum of 12 months after the date of Statements of Financial Position.
Fees incurred in obtaining the loan facility are recognised as transaction costs to the extent of partial or entire loan facility that may have been granted.

2.21 Provision for Liabilities Provision for Liabilities are recognised when the Group and EPF have present obligation as a result of past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount can be made.
Provisions are reviewed at each Statements of Financial Position date and adjusted to reflect the current best estimation.

Where the effect of the time value of money is material, the amount of a provision is the present value of the expected expenditure to be required to settle the obligation.
2.22 Liability on Invocation Cost under Section 50(3) Liability on Invocation Cost under Section 50(3), EPF Act, 1991 is for the purpose of financing employee share of contribution as well as dividend attributable on the said contribution for deduction that has been made on the employee salary should the employer fails to pay the share of such contributions, is disclosed as Statutory Charges in the EPF’s Profit or Loss and under Payables and Accrued Liabilities in the Statements of Financial Position.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.23 Contingent Asset and Liability Contingent Asset is a possible asset that arises from past events whose existence will be confirmed by the occurrence of one (1) or more uncertain future events beyond the control of the Group and EPF.
The Group and EPF do not recognise Contingent Asset but discloses its existence where inflows of economic benefits are probable, but not virtually certain.

The Group and EPF do not recognise Contingent Liability but disclose its existence in the Financial Statements.
Contingent Liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence of one (1) or more uncertain future events beyond the control of the Group and EPF or a present obligation that is not recognised because it is not probable that outflow of resources will be required to settle the obligation.

Contingent Liability also arises in the extremely rare case where there is a liability that cannot be recognised because it cannot be measured reliably.
2.24 Net Assets Attributable to Members Contributions are credited to members’ account following the contribution month based on cash received basis except for cases of which crediting is based on Invocation of Section 50(3), EPF Act, 1991 is in accordance with Note 2.22.

The Net Assets Attributable to Members is the EPF’s present obligation towards its members.
It has been computed as the EPF’s net assets as stated on the Statement of Financial Position and comprises members’ Contribution and Cumulative Surplus and Reserves.

2.25 Dividend Credited/Paid to Members Annual dividend is calculated on the opening balance as at 1st January (less withdrawals) and plus contribution following contribution month and credited to the members’ account at the end of the financial year.
Dividend on withdrawals is calculated from the beginning of the year in which the withdrawal is made until the date the contribution account is debited.

Dividend by EPF to the members is maximised after taking into account all income received in the current year and expenditures incurred as well as Cost Write Down on Listed Equities as disclosed in Note 2.1(d)(iv), based on the EPF accounting policies which are approved by the Board.
2.26 Reserve Financial Assets at Fair Value through Other Comprehensive Income Reserve (“FVOCI”) Financial Assets at FVOCI Reserve has been established to account for the movement in change of fair value of financial asset which is classified as Financial Assets at FVOCI.

The Financial Assets at FVOCI Reserve account is credited when there is a positive change in the fair value of Assets at FVOCI.
On the contrary, this reserve account is debited when there is a negative change in the fair value of Financial Assets at FVOCI.

On disposal of Financial Assets at FVOCI, the cumulative gains or losses are transferred to Cumulative Surplus.

Please refer to Note 2.1 (d) (iv) under Estimates and Assumptions on accounting policy on Cost Write Down on Listed Equity.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.27 Revenue Recognition Revenue is measured based on the consideration specified in a contract with a customer in exchange for transferring goods or services to a customer, excluding amounts collected on behalf of third parties.

The Group and EPF recognise revenue when (or as) they transfer control over a product or service to customer.

An asset is transferred when (or as) the customer obtains control of the asset.
The Group and EPF transfer control of a good or service at a point in time unless one of the following criterias for satisfaction of performance obligation over time is met: (i) the customer simultaneously receives and consumes the benefits provided as the Group and EPF perform; (ii) the Group’s and EPF’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or (iii) EPF’s performance does not create an asset with an alternative use to the entity and EPF has an enforceable right to payment for performance completed to date.
Revenue comprises the fair value of the consideration received or receivable for the sale of goods or services in the ordinary course of the Group’s activities.

Revenue is recognised net value after tax, refunds, rebates and discounts and after eliminating intercompany sales.
The Group’s and EPF’s revenue is described below: Recognition of Income on Sale of Properties Revenue from sale of completed properties is measured at the fixed transaction price agreed under the sales and purchase agreement net of expected liquidated ascertained damages (LAD) payment, based on the expected value method.
Revenue from sale of completed properties is recognised as and when the control of the asset is transferred to the customer and it is probable that the Group and EPF will receive the consideration to which it will be entitled in exchange for the asset that will be transferred to the customer.
2.28 Financial Risk Management Objectives and Policies The EPF’s overall financial risk management policy is to optimise value creation for members while minimising the potential adverse impact arising from fluctuation of the interest rates and the unpredictability of the financial markets.

The EPF is required to ensure that its investment activities are balanced between the targeted annual dividend and various financial risks.
The EPF’s overall risk management framework seeks to minimize potential adverse effects on its financial performance.

The EPF investments based on broad asset allocation strategy which determines the long term and strategically optimal allocation of funds across asset classes.

The Strategic Asset Allocation (SAA) is typically based on the risk/return profile of a benchmark for each asset class.

Varying the potential asset allocations will result in different magnitudes of risk.
Based on the returns and risks for each potential asset allocation, the Investment Panel will be able to adjust the allocations until the strategically optimal allocation for the EPF is achieved.

192 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.28 Financial Risk Management Objectives and Policies (Cont’d.)
The SAA is the highest level of investment decision-making and is the most important step in the investment process as it determines the majority of the risk of its investments.

The SAA decision is subject to the EPF’s Risk Appetite Statements as follows: i. ii.

iii.

The EPF will not tolerate a greater than 10% chance of the dividend falling below 2.50% in any year over the next 10 years.
The EPF will not tolerate a greater than one third chance of the annualised dividend falling below inflation +2% over any rolling three (3) years period.

The EPF will not tolerate a greater than 10% chance of there being a negative value of Financial Assets at FVOCI at the end of any year that is greater than 5% of the book value of assets.
Another decision in the investment process is the Tactical Asset Allocation (TAA), which would allow the EPF to vary each asset class allocation from the strategic allocation determined in the SAA and prevent excessive deviation from the SAA.

In order for the EPF to achieve its mission, it has to manage the various risks posed by ever changing business environment.

These risks include operational risk and financial risk.

a.
a.

Operational Risk Operational risk is defined as the risk of loss resulting from inadequate or failure of internal processes, people or systems, or from external events.

Operational Risk Management (ORM) is used to support and enhance its activities in all operational areas.

ORM is an integral part of the EPF’s decision making process and its corporate culture.
The Corporate Risk Scorecard (CRS) methodology, a risk management approach consistent with the ISO 31000:2018 Risk Management – Guidelines, has been adopted in the implementation of operational risk management in the EPF.

One of the key elements in the CRS methodology is the Risk and Control Self- Assessment (RCSA) module which allows the EPF staff to self-assess and update their risk profiles.

b.
b.

Financial Risk Financial Risks are risks associated with various changes in economic aspects which give impact to the EPF financial stability.

There are three (3) types of financial risks the EPF is exposed to, as follows: i.

Market Risk (which comprises of price risk, interest rate risk and foreign currency exchange risk); ii.

iii.

Credit Risk.

Liquidity Risk; and Detailed policies pertaining to each type of financial risks as listed above are disclosed in Note 36.
193 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 3.
DEPOSIT WITH FINANCIAL INSTITUTIONS 3.1 GROUP Time Deposits Fixed Deposits Murabahah Commodities Statutory Deposits with Bank Negara Malaysia Note 2020 (RM’000) 2019 (RM’000) 19,986,344 21,854,735 5,661,118 7,993,606 19,516,914 16,593,346 620,000 1,090,000 Money Market Account with Bank Negara Malaysia 33 10,211,250 250,472 Money Market Account in Multi Currencies Money Market Account with Bank of New York Mellon Money Market Account Managed by External Fund Managers Allowance for Impairment Losses 4,495,267 6,526,513 - 13 2,032,958 2,809,850 62,523,851 57,118,535 36.1b 36.1a (335) (649) 62,523,516 57,117,886 The maturity structure of the Deposit with Financial Institutions, gross of allowance for impairment losses are as follows: Maturing within 12 Months Maturing after 12 Months Note 2020 (RM’000) 2019 (RM’000) 61,903,851 56,013,503 620,000 1,105,032 36.1c 62,523,851 57,118,535 The non-interest bearing statutory deposits maintained by a subsidiary bank with Bank Negara Malaysia are in compliance with Sections 26(2)(c) of the Central Bank of Malaysia Act, 2009 to satisfy the Statutory Reserve Requirement (“SRR”); which determined at a set percentages of total eligible liabilities.
194 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 3.

DEPOSIT WITH FINANCIAL INSTITUTIONS (CONT’D.)
3.2 EPF Time Deposits Fixed Deposits Murabahah Commodities Note 2020 (RM’000) 2019 (RM’000) 19,986,344 21,854,735 3,708,944 4,822,594 20,796,933 18,437,917 Money Market Account with Bank Negara Malaysia 33 10,211,250 250,472 Money Market Account in Multi Currencies Money Market Account with Bank of New York Mellon Money Market Account Managed by External Fund Managers Allowance for Impairment Losses 4,495,267 6,526,513 - 13 2,047,053 2,809,850 61,245,791 54,702,094 36.1b 36.1a (458) (1,088) 61,245,333 54,701,006 The maturity structure of the Deposit with Financial Institutions, gross of allowance for impairment losses are as follows: Maturing within 12 Months Maturing after 12 Months Note 2020 (RM’000) 2019 (RM’000) 61,245,791 54,687,062 - 15,032 36.1c 61,245,791 54,702,094 Time Deposits, Fixed Deposits, Murabahah Commodities and Money Market Account with Bank Negara Malaysia as above amounting to RM60.16 billion (2019: RM27.21 billion) and RM59.03 billion (2019: RM24.95 billion) at Group and EPF level respectively have maturity of less than three (3) months from the date of acquisitions, therefore are classified as cash and cash equivalents in the Statements of Cash Flows of the Group and EPF.
Details on Deposits with Financial Institutions which are assessed as impaired for the Group and EPF as at 31 December 2020 are disclosed in Note 36.1a.

Movement in accumulated impairment loss is disclosed within Allowance for Impairment Losses in Note 36.1b.

195 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 4.
RECEIVABLES, DEPOSITS AND PREPAYMENTS 4.1 GROUP Endowment Fund Prepayments Rental Deposits Rental Debtors Unsecured Advances of Certain Projects Foreclosed Properties Trade Receivables Tax Recoverable Accruals on Miscellaneous Non-Investment Receivables and Deposits Accrued Dividend Income Accruals on Sale of Investments Accruals on Goods and Services Tax Service Charge Receivables Allowance for Impairment Losses: Unsecured Advances of Certain Projects Trade Receivables Others Note 2020 (RM’000) 2019 (RM’000) 26,535 52,571 3,901 215,834 571,263 70,162 263,915 598,035 824,184 652,038 26,535 48,299 5,188 112,547 514,322 113,262 361,645 625,424 568,896 370,301 1,622,551 1,545,992 181 3,643 26,933 7,066 4,904,813 4,326,410 36.1b 36.1b 36.1b (567,075) (123,644) (53,610) (510,130) (24,999) (56,586) 4,160,484 3,734,695 The maturity structure of the Receivables, Deposits and Prepayments, gross of allowance for impairment losses are as follows: Maturing within 12 Months Maturing after 12 Months 2020 (RM’000) 2019 (RM’000) 3,026,732 1,878,081 4,904,813 2,443,680 1,882,730 4,326,410 196 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 4.
RECEIVABLES, DEPOSITS AND PREPAYMENTS (CONT’D.)
4.2 EPF Endowment Fund Prepayments Rental Deposits Rental Debtors Owings from Subsidiaries Tax Claim on Dividend Receivables Accruals on Miscellaneous Non-Investment Receivables and Deposits Accrued Dividend Income Accruals on Sale of Investments Accruals on Goods and Services Tax Service Charge Receivables Note 2020 (RM’000) 2019 (RM’000) 26,535 10,285 2,103 30,562 23,221 9,651 26,535 7,216 1,927 14,617 52,399 5,741 38,146 672,895 1,702 675,153 1,596,886 1,537,271 - 3,643 332 7,066 2,413,927 2,329,959 Allowance for Impairment Losses 36.1b (18,773) (5,430) 2,395,154 2,324,529 The maturity structure of the Receivables, Deposits and Prepayments, gross of allowance for impairment losses are as follows: Maturing within 12 Months Maturing after 12 Months 2020 (RM’000) 2019 (RM’000) 2,349,236 2,295,982 64,691 33,977 2,413,927 2,329,959 Details on Receivables and Deposits (excluding Prepayments) which are assessed as impaired for the Group and EPF as at 31 December 2020 are disclosed in Note 36.1a.
Movement in accumulated impairment loss is disclosed within Allowance for Impairment Losses in Note 36.1b.

197 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 5.
LOANS, ADVANCES AND FINANCING 5.1 GROUP Loans and Financing Loans to Associates and Joint Ventures Islamic Loans and Financing: Property Financing Personal Financing Staff Loans Hire Purchase and Auto Financing Bridging Financing and Other Term Financing Revolving Credit Trade Finance and Overdraft Facility Conventional Loans and Financing: End Financing: Normal Housing Programme Low Cost Housing Programme Staff Loans Hire Purchase and Auto Financing Bridging Financing and Other Term Financing Allowance for Impairment Losses: Loans and Financing Loans to Associates and Joint Ventures Corporate Loans and Financing Individual Loans and Financing Staff Loans Note 5.2a 5.1a 2020 (RM’000) 2019 (RM’000) 36.1b 36.1b 36.1b 36.1b 36.1b 36.1a (634) (6,139) (367) (7,739) (884,472) (783,156) (1,081,288) (1,127,512) (20) (74) 90,927,326 94,816,688 a.
Included in the Loans to Associates and Joint Ventures are balances amounting to RM2,087.48 million (2019: RM1,979.79 million) that are unsecured, bearing interest at a range of 3.20% to 8% (2019: 4% to 8%) per annum and have maturity dates ranging from 2025 to 2026 except for Associates and Joint Ventures of Tanjung Wibawa Sdn Bhd, Kwasa Singapore Solo Pte.

Ltd., Kwasa Singapore Duo Pte.

Ltd. and Kwasa Singapore Trio Pte.

Ltd. which have no fixed repayment terms.


In addition, Loans to Associates and Joint Ventures include loans granted by EPF’s subsidiary, Naungan Sentosa Sdn Bhd and Kwasa Land Sdn Bhd to their associate amounting to RM169.40 million and RM11.20 million respectively.
The advances from Naungan Sentosa Sdn Bhd are unsecured, bearing interest at 6.40% (2019: 7.65%) and are repayable at any time at the option of the associate while the advances from Kwasa Land Sdn Bhd are interest-free and are repayable upon demand.

198 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 5.

LOANS, ADVANCES AND FINANCING (CONT’D.)

5.1 GROUP (Cont’d.)
5.1 GROUP (Cont’d.)

The remaining Loans to Associates and Joint Ventures balances amounting to RM863.14 million (2019: RM756.51 million) are unsecured, has variable interest rates and will mature in 2025.

These variable interest rates are based on loans granted to Property SPVs less margin applicable for the relevant financial year.
The maturity structure of the Loans, Advances and Financing, gross of allowance for impairment losses are as follows: Maturing within 12 Months Maturing after 12 Months 5.2 EPF Loans and Financing Islamic Loans and Financing: Staff Loans Conventional Loans and Financing: Staff Loans Capital Advances to Subsidiaries Allowance for Impairment Losses: Loans and Financing Staff Loans Capital Advances to Subsidiaries Note 2020 (RM’000) 2019 (RM’000) 3,987,128 4,688,473 88,912,751 92,047,063 36.1c 92,899,879 96,735,536 Note 2020 (RM’000) 2019 (RM’000) 5.2a 53,794,991 57,727,846 175,572 174,572 69,891 76,097 5.2b 1,515,873 1,791,330 55,556,327 59,769,845 36.1b 36.1b 36.1b 36.1a (634) (20) (15,929) (367) (74) (77) 55,539,744 59,769,327 199 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 5.
LOANS, ADVANCES AND FINANCING (CONT’D.)

5.2 EPF (Cont’d.)

a. b.

These Loans and Financing are mainly extended to various Agencies and Companies which are guaranteed by the Government of Malaysia.

These Capital Advances to EPF’s subsidiaries are unsecured and non-interest bearing except for Kwasa Singapore Solo Pte.

Ltd., Kwasa Singapore Duo Pte.

Ltd. and Kwasa Singapore Trio Pte.

Ltd. which currently bear interest of 3.20% per annum (2019: 4.00% per annum).
These Capital Advances to Subsidiaries have no fixed repayment terms except for KWASA Europe S.à r.l.

where the capital advances are repayable at the end of the loan period, which is 10 years from the effective date of the capital advances agreement.

Capital Advances to Subsidiaries which failed the ‘SPPI’ test based on MFRS 9 are classified as Financial Assets at Fair Value through Profit or Loss (Note 6).
The maturity structure of the Loans, Advances and Financing, gross of allowance for impairment losses are as follows: Maturing within 12 Months Maturing after 12 Months Note 2020 (RM’000) 2019 (RM’000) 945,571 1,428,887 54,610,756 58,340,958 36.1c 55,556,327 59,769,845 Details on Loans, Advances and Financing which are assessed as impaired for the Group and EPF as at 31 December 2020 are disclosed in Note 36.1a.
Movement in accumulated impairment loss is disclosed within Allowance for Impairment Losses in Note 36.1b.

200 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 6.
FINANCIAL ASSETS/LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS 6.1 GROUP Notional Value 2020 Fair Value Notional Value 2019 Fair Value Note (RM’000) Assets (RM’000) Liabilities (RM’000) (RM’000) Assets (RM’000) Liabilities (RM’000) Investment Assets Held for Trading 36.1a Equity Instruments Debt Instruments 36.1a Hedging Instruments: 6b, 36.1a - 13,906,865 - 1,461,453 - 37,542,803 - - - - 13,893,280 - - 665,540 1,530,652 - - - - Forward Contract 93,425,936 2,841,274 221,683 57,603,886 1,095,082 93,909 - Cross Currency Swap - Interest Rate Swap Other Derivative Financial Assets/ Liabilities 6.2 EPF 1,058,040 12,383,572 99,503 14,582 53,177 1,315,840 160,367 10,148,967 79,061 4,341 155,993 121,978 36.1a - 730,412 - - 100,566 - 106,867,548 56,596,892 435,227 69,068,693 17,368,522 371,880 Notional Value 2020 Fair Value Notional Value 2019 Fair Value Note (RM’000) Assets (RM’000) Liabilities (RM’000) (RM’000) Assets (RM’000) Liabilities (RM’000) Debt Instruments Capital Advances to Subsidiaries Hedging Instruments: 6a 6b - 37,344,077 - 12,769,841 - - - 3,274,894 - 11,851,162 - - - Forward Contract 93,147,626 2,839,550 220,069 57,375,591 1,090,843 93,908 - Cross Currency Swap 1,058,040 99,503 53,177 1,315,840 - Interest Rate Swap 145,615 - 1,871 189,540 79,061 1,492 Other Derivative Financial Assets/ Liabilities - 730,412 - - 100,566 155,993 - - 36.1a 94,351,281 53,783,383 275,117 58,880,971 16,398,018 249,901 201 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT
 2020WWW.KWSP.GOV.MY9 6.
FINANCIAL ASSETS/LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (CONT’D.)

a.

Capital Advances to Subsidiaries represent capital advances which have failed the Solely Payments of Principal and Interest (“SPPI”) test based on MFRS 9.

These Capital Advances are unsecured and bear interest ranging from 0.50% to 8.00% per annum, except for Ekuiti Merdu Sdn Bhd, KWASA Capital Partners Limited and Pinggiran Ventures Sdn Bhd which are non-interest bearing on capital advances.
These Capital Advances to Subsidiaries have no fixed repayment terms except for Kwasa Land Sdn Bhd, Tanjung Wibawa Sdn Bhd, Kwasa Utama Sdn Bhd, Kwasa Logistics Sdn Bhd, KWASA Europe S.à r.l.

and KWASA Europe-I S.à r.l.

where the capital advances are repayable after the end of the loan period, which is within one (1) to 15 years from the date of the capital advances agreement.

b.
b.

Hedging instruments are measured at fair value and are utilised by the Group and EPF to hedge against changes in the fair value of financial assets as a result of changes in foreign currency exchange rates and market interest rates.

All derivatives are treated as an asset when the fair value is positive and is treated as a liability when the fair value is negative.

The fair value changes on revaluation of derivative contracts is recognised in Profit or Loss.
The fair value of Forward Contract is determined by using forward exchange rates at the date of Statements of Financial Position with the resulting value discounted back to present value.

Included in hedging instruments for the Group are the Subsidiaries’ Interest Rate Swap which are assigned as hedging instruments carried at net fair value amounting to RM143.91 million (2019: RM116.15 million) and notional value amounting to RM12,237.96 million (2019: RM9,959.43 million).
The Subsidiaries utilise these Interest Rate Swap instruments to manage exposures to interest rate movements on bank loans taken by exchanging part of the loans from floating rate to fixed rate.

These Interest Rate Swap for floating rate and fixed rate are settled on a monthly and quarterly basis respectively.

The Subsidiaries will settle the differences between fixed rate and floating rate on a net basis.
These Interest Rate Swap contracts which exchanges interest rate from floating rate to fixed rate reduces the exposure of the Subsidiaries’ cash flows caused by variable interest rate on loans and are designated as cash flow hedges.

202 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 7.
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME 7.1 GROUP QUOTED EQUITIES Domestic Equities Internally Managed Domestic Equities Managed by External Fund Managers Global Equities Internally Managed Global Equities Managed by External Fund Managers UNQUOTED EQUITIES Domestic Unquoted Equities Global Unquoted Equities PERPETUAL FIXED INCOME INSTRUMENTS Domestic Perpetual Fixed Income Instruments Global Perpetual Fixed Income Instruments FIXED INCOME INSTRUMENTS Domestic Fixed Income Instruments Internally Managed Domestic Fixed Income Instruments Managed by External Fund Managers Global Fixed Income Instruments Internally Managed Global Fixed Income Instruments Managed by External Fund Managers OTHER INSTRUMENTS Domestic Private Debt Securities Internally Managed Global Private Debt Securities Internally Managed 2020 Fair Value (RM’000) 2019 Fair Value (RM’000) The maturity structure of the Fixed Income Instruments and Other Instruments, gross of allowance for impairment losses within Financial Assets at Fair Value through Other Comprehensive Income are as follows: Maturing within
 12 Months Maturing after 12 Months Note 36.1a 2020 (RM’000) 2019 (RM’000) 2,262,415 111,881,026 114,143,441 4,274,275 101,313,963 105,588,238 Details on Financial Assets at Fair Value through Other Comprehensive Income which was assessed as impaired for Group as at 31 December 2020, are disclosed in Note 36.1a.
The movement in Allowance for Impairment Losses within Financial Assets at Fair Value through Other Comprehensive Income Reserve is disclosed in Note 36.1b.

203 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 7.

FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (CONT’D.)

7.1 GROUP (Cont’d.)

a.
Group Has Designated The Following Equity Portfolios (including Perpetual Fixed Income Instruments) as Fair Value through Other Comprehensive Income (“FVOCI”): EQUITY PORTFOLIOS DESIGNATED AT FVOCI Bursa Malaysia New York Stock Exchange Hong Kong Stock Exchange NASDAQ Singapore Stock Exchange Tokyo Stock Exchange South Korea Stock Exchange Taiwan Stock Exchange Thailand Stock Exchange London Stock Exchange Indonesia Stock Exchange Euronext Paris Exchange Philippine Stock Exchange Frankfurt Stock Exchange Australian Securities Exchange Limited Toronto Stock Exchange Brazil Stock Exchange SIX Swiss Exchange Milan Stock Exchange Euronext Amsterdam Exchange Madrid Stock Exchange Other Quoted Equity Stock Exchanges Unquoted Equities and Perpetual Fixed Income Instruments 2020 Fair Value (RM’000) 2019 Fair Value (RM’000) The Group elected to designate the above equity portfolios at Fair Value through Other Comprehensive Income on the basis that the investments were made to preserve and enhance the value of capital from
 members’ contribution as well as to maintain stable returns over the long term.
Dividends recognised on these equity instruments designated at FVOCI amounted to RM9,552.39 million (2019: RM11,008.99 million) as disclosed in Note 24.

As part of its strategy to enhance the value of capital from members’ contribution, the Group and EPF sold RM152,439.42 million (2019: RM148,788.85 million) of equity instruments designated at FVOCI which resulted in a net gain of RM17,675.85 million (2019: RM11,705.46 million) which is included in other comprehensive income as disclosed in Note 23.2.
This net gain has been transferred to Cumulative Surplus.

The net impact on these disposed equity instruments will not have a material impact on the future dividend income.

204 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 7.

FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (CONT’D.)
7.2 EPF QUOTED EQUITIES Domestic Equities Internally Managed Domestic Equities Managed by External Fund Managers Global Equities Internally Managed Global Equities Managed by External Fund Managers UNQUOTED EQUITIES Domestic Unquoted Equities Global Unquoted Equities PERPETUAL FIXED INCOME INSTRUMENTS Domestic Perpetual Fixed Income Instruments Global Perpetual Fixed Income Instruments FIXED INCOME INSTRUMENTS Domestic Fixed Income Instruments Internally Managed Domestic Fixed Income Instruments Managed by External Fund Managers Global Fixed Income Instruments Internally Managed Global Fixed Income Instruments Managed by External Fund Managers OTHER INSTRUMENTS Domestic Private Debt Securities Internally Managed Global Private Debt Securities Internally Managed 2020 Fair Value (RM’000) 2019 Fair Value (RM’000) 132,426,399 18,898,000 137,458,593 81,472,189 370,255,181 120,394,206 16,323,474 111,464,355 65,269,581 313,451,616 132,415 - 132,415 1,391,918 23,687,112 25,079,030 961,640 264,212 1,225,852 296,825 312,034 608,859 28,673,791 25,800,660 6,482,365 19,902,213 80,859,029 29,086,568 23,133,209 4,964,754 18,190,312 75,374,843 9,632,358 13,556,970 23,189,328 7,826,300 11,792,306 19,618,606 475,661,805 434,132,954 The maturity structure of the Fixed Income Instruments and Other Instruments, gross of allowance for impairment losses within Financial Assets at Fair Value through Other Comprehensive Income are as follows: Maturing within 12 Months Maturing after 12 Months Note 36.1a 2020 (RM’000) 2019 (RM’000)
 1,904,931 102,143,426 104,048,357 3,673,530 91,319,919 94,993,449 Details on Financial Assets at Fair Value through Other Comprehensive Income which was assessed as impaired for EPF as at 31 December 2020, are disclosed in Note 36.1a.
The movement in Allowance for Impairment Losses within Financial Assets at Fair Value through Other Comprehensive Income Reserve is disclosed in Note 36.1b.

205 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 7.

FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (CONT’D.)

7.2 EPF (Cont’d.)
a. EPF Has Designated The Following Equity Portfolios (including Perpetual Fixed Income Instruments) as Fair Value through Other Comprehensive Income (“FVOCI”): EQUITY PORTFOLIOS DESIGNATED AT FVOCI Bursa Malaysia New York Stock Exchange Hong Kong Stock Exchange NASDAQ Singapore Stock Exchange Tokyo Stock Exchange South Korea Stock Exchange Taiwan Stock Exchange Thailand Stock Exchange London Stock Exchange Indonesia Stock Exchange Euronext Paris Exchange Philippine Stock Exchange Frankfurt Stock Exchange Australian Securities Exchange Limited Toronto Stock Exchange Brazil Stock Exchange SIX Swiss Exchange Milan Stock Exchange Euronext Amsterdam Exchange Madrid Stock Exchange Other Quoted Equity Stock Exchanges Unquoted Equities and Perpetual Fixed Income Instruments 2020 Fair Value (RM’000) 2019 Fair Value (RM’000) The EPF elected to designate the above equity portfolios at Fair Value through Other Comprehensive Income on the basis that the investments were made to preserve and enhance the value of capital from
 members’ contribution as well as to maintain stable returns over the long term.
Dividends recognised on these equity instruments designated at FVOCI amounted to RM9,537.28 million (2019: RM10,941.50 million) as disclosed in Note 24.

As part of its strategy to enhance the value of capital from members’ contribution, the EPF sold RM151,917.01 million (2019: RM148,788.85 million) of equity instruments designated at FVOCI which resulted in a net gain of RM17,465.91 million (2019: RM11,705.46 million) which is included in other comprehensive income as disclosed in Note 23.2.
This net gain has been transferred to Cumulative Surplus.

The net impact on these disposed equity instruments will not have a material impact on the future dividend income.

206 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 8.
INVESTMENT ASSETS AT AMORTISED COST 8.1 GROUP Malaysian Government Securities Government Investment Issues Bonds and Sukuk Commercial Papers Negotiable Certificates Allowance for Impairment Losses Note 2020 (RM’000) 2019 (RM’000) 137,367,449 145,049,195 71,758,821 70,263,900 81,425,759 78,401,020 - 965,539 6,808,292 9,897,231 297,360,321 304,576,885 36.1b 36.1a (438,036) (250,818) 296,922,285 304,326,067 The maturity structure of the Investment Assets at Amortised Cost, gross of allowance for impairment losses are as follows: Maturing within 12 Months Maturing after 12 Months 8.2 EPF Malaysian Government Securities Government Investment Issues Bonds and Sukuk Commercial Papers Negotiable Certificates Allowance for Impairment Losses Note 2020 (RM’000) 2019 (RM’000) 26,515,979 28,985,337 270,844,342 275,591,548 36.1c 297,360,321 304,576,885 Note 2020 (RM’000) 2019 (RM’000) 137,367,449 145,049,195 71,758,821 70,263,900 82,290,852 79,265,293 - 965,539 6,808,292 9,897,231 298,225,414 305,441,158 36.1b 36.1a (443,979) (250,798) 297,781,435 305,190,360 207 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 8.
INVESTMENT ASSETS AT AMORTISED COST (CONT’D.)

8.2 EPF (Cont’d.)

The maturity structure of the Investment Assets at Amortised Cost, gross of allowance for impairment losses are as follows: Maturing within 12 Months Maturing after 12 Months Note 2020 (RM’000) 2019 (RM’000) 26,616,400 29,080,741 271,609,014 276,360,417 36.1c 298,225,414 305,441,158 Details on Investment Assets at Amortised Costs which was assessed as impaired for Group and EPF as at 31 December 2020, are disclosed in Note 36.1a.
Movement in accumulated impairment loss is disclosed within Allowance for Impairment Losses in Note 36.1b.

9.
INVESTMENT IN JOINT VENTURES 9.1 GROUP Domestic Unquoted Equities Allowance for Impairment Losses Global Unquoted Equities Allowance for Impairment Losses Losses and Adjustments in Joint Ventures 2020 (RM’000) 2019 (RM’000) 1,983,379 1,819,229 (1,296) (2,246) 1,982,083 3,398,336 1,816,983 3,375,936 (4,361) (4,361) 3,393,975 3,371,575 (2,137,517) (1,836,269) 3,238,541 3,352,289 208 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 9.
INVESTMENT IN JOINT VENTURES (CONT’D.)

9.1 GROUP (Cont’d.)

a.
Details of Joint Ventures which the Group has material joint control are as follows: Name of Entity Note Measurement Method Principal Activity Country of Incorporation Ownership Interest on Voting Rights Carrying Amount 2020 % 2019 % 2020 (RM’000) 2019 (RM’000) Jersey 20.00 20.00 1,217,628 1,371,774 Equity Accounting Investment Holding Company Battersea Project Holding Company Limited Melati Asia Holdings Limited Equity Accounting Yarra Park City Equity Pty Ltd Accounting PNB Kwasa Equity International Holding Limited Accounting The Arena Unit Equity Trust Accounting PLUS Malaysia Berhad (“PLUS”) 9.1a (i) Equity Accounting Immaterial Joint 9.1c Ventures Total Investment in Joint Ventures Cayman Island 51.00 51.00 644,714 601,931 Australia 49.00 49.00 516,364 424,276 Jersey 35.00 35.00 481,167 359,915 Jersey 50.00 50.00 255,746 256,681 Malaysia 49.00 49.00 - - Investment Holding Company Investment Holding Company Investment Holding Company Investment Holding Company Investment Holding Company 122,922 337,712 3,238,541 3,352,289 a (i) The Group has discontinued recognition of share of losses from PLUS since 2017 after the carrying amount of the Group’s investment in PLUS had been reduced to zero in accordance with MFRS 128.
As at 31 December 2020, the cumulative unrecognised amount of the Group’s share of losses in PLUS is RM568.27 million (2019: RM639.67 million).

209 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 9.

INVESTMENT IN JOINT VENTURES (CONT’D.)

9.1 GROUP (Cont’d.)

b.

The tables below provide summarised financial information for those Joint Ventures that are material to the Group.
The information disclosed reflects the amounts presented in the Financial Statements of the relevant Joint Ventures and not the Group’s share of those amounts.
They have been revised to reflect adjustments made by the entity when using the equity method, including fair value adjustments and modifications for differences in accounting policy: Battersea Project Holding Company Limited Melati Asia Holdings Limited Yarra Park City Pty Ltd 2020 (RM’000) 2019 (RM’000) 2020 (RM’000) 2019 (RM’000) 2020 (RM’000) 2019 (RM’000) Summarised Statement of Financial Position Cash and Cash Equivalents 525,518 861,291 36,608 1,180,251 55,962 32,462 Other Assets Total Assets 12,523,701 12,118,779 1,227,564 29 1,720,443 2,011,555 13,049,219 12,980,070 1,264,172 1,180,280 1,776,405 2,044,017 Financial Liabilities (excluding trade payables) (6,256,444) (6,085,577) Other Liabilities Total Liabilities Total Net Assets Extraction from Statement of Comprehensive Income Revenue Interest Income Depreciation and Amortisation Interest Expenses Tax Profit/(Loss) after Tax for the (704,633) (35,625) (6,961,077) (6,121,202) - (27) (27) - (698,783) (1,003,100) (23) (23) (37,313) (185,647) (736,096) (1,188,747) 6,088,142 6,858,868 1,264,145 1,180,257 1,040,309 855,270 1,194,615 1,696,409 1,946 (2,536) (11,753) (578) 441 (2,357) (21) (2,349) - - - - - - - - - - 975,070 - 3,293 - (1,558) (2,325) - (51,621) - 4,344 Financial Year (933,483) 92,015 83,740 76,918 117,661 (16,162) Other Comprehensive Income for the Financial Year - - 147 116 - - Total Comprehensive Income/ (Loss) for the Financial Year Dividends Received from Joint Ventures for the Financial Year (933,483) 92,015 83,887 77,034 117,661
 (16,162) - - - - - - Group’s Share in % 20% 20% 51% 51% 49% 49% Group’s Share of Net Assets 1,217,628 1,371,774 644,714 601,931 509,751 419,082 Goodwill - - - - 6,613 5,194 Carrying Amount 1,217,628 1,371,774 644,714 601,931 516,364 424,276 210 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 9.
INVESTMENT IN JOINT VENTURES (CONT’D.)

9.1 GROUP (Cont’d.)

b.

The tables below provide summarised financial information for those Joint Ventures that are material to the Group.

The information disclosed reflects the amounts presented in the Financial Statements of the relevant Joint Ventures and not the Group’s share of those amounts.
They have been revised to reflect adjustments made by the entity when using the equity method, including fair value adjustments and modifications for differences in accounting policy: (Cont’d.)
PNB Kwasa International Holding Limited The Arena Unit Trust PLUS Malaysia Berhad 2020 (RM’000) 2019 (RM’000) 2020 (RM’000) 2019 (RM’000) 2020 (RM’000) 2019 (RM’000) Summarised Statement of Financial Position Cash and Cash Equivalents 16,117 40,268 50,155 48,175 3,396,647 1,164,635 Other Assets Total Assets 8,037,013 6,345,437 1,632,246 1,576,034 27,266,347 30,164,774 8,053,130 6,385,705 1,682,401 1,624,209 30,662,994 31,329,409 Financial Liabilities (excluding trade payables) (6,576,344) (5,357,377) (1,153,738) (1,092,364) (29,400,000) (29,900,000) Other Liabilities Total Liabilities Total Net Assets (102,024) - (17,172) (18,483) (2,420,019) (2,732,156) (6,678,368) (5,357,377) (1,170,910) (1,110,847) (31,820,019) (32,632,156) 1,374,762 1,028,328 511,491 513,362 (1,157,025) (1,302,747) Extraction from Statement of Comprehensive Income Revenue Interest Income Depreciation and Amortisation Interest Expense Tax Profit/(Loss) after Tax for the - - - - - - (14,388) (95,869) - - 110,923 109,042 3,281,916 4,432,423 - - 82,450 151,837 (21,902) (23,923) - (157,979) (836,847) (1,146,026) (23,087) (1,516,239) (1,510,195) - 3,181 (23,071) Financial Year 19,624 (100,954) 6,511 (149,640) 145,722 394,279 Total Comprehensive Income/ (Loss) for the Financial Year Dividends Received from Joint Ventures for the Financial Year 19,624 (100,954) 6,511 (149,640) 145,722 394,279 - - - - 164,150 217,070 Group’s Share in % Group’s Share of Net Assets Carrying Amount 35% 481,167 481,167 35% 359,915 359,915 50% 255,746 255,746 50% 256,681
 256,681 49% - - 49% - - 211 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 9.
INVESTMENT IN JOINT VENTURES (CONT’D.)

9.1 GROUP (Cont’d.)
c. Individually Immaterial Joint Ventures In addition to the interests in Joint Ventures disclosed as above, the Group also has interests in a number of individually immaterial Joint Ventures using the equity accounting method as follows: Total Carrying Amount of Individually Immaterial Joint Ventures 122,922 337,712 2020 (RM’000) 2019 (RM’000) Aggregate Amounts of the Group’s Share of: Profit/(Loss) for the Financial Year Total Comprehensive Income/(Loss) 9.2 EPF Domestic Unquoted Equities List of Joint Ventures is disclosed in Note 40.
10.
INVESTMENT IN ASSOCIATES 10.1 GROUP Domestic Quoted Equities Domestic Unquoted Equities Allowance for Impairment Losses Global Unquoted Equities Profit and Adjustments in Associates 212 47,295 47,295 (17,718) (17,718) 2020 2019 Cost/ Book Value (RM’000) Cost/ Book Value (RM’000) 1,830,150 1,830,150 1,666,000 1,666,000 2020 2019 Cost/ Book Value (RM’000) Cost/ Book Value (RM’000) 9,471,530 2,620,684 9,172,776 2,605,328 (160,948) (12,730) 2,459,736 2,592,598 990,152 981,010 4,469,433 4,076,466 17,390,851 16,822,850 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 10.
INVESTMENT IN ASSOCIATES (CONT’D.)

10.1 GROUP (Cont’d.)

a.
Details of Associates which the Group has material significant influence are as follows: Name of Entity Note Measurement Method Principal Activity Country of Incorporation Ownership Interest on Voting Rights Market Price Carrying Amount 2020 % 2019 % 2020 (RM’000) 2019 (RM’000) 2020 (RM’000) 2019 (RM’000) RHB Bank Berhad Equity Banking Malaysia 42.80 41.55 9,354,509 9,629,554 12,704,951 11,700,693 Accounting Malaysian Equity Investment Malaysia 35.85 35.85 751,232 1,154,525 1,787,516 1,864,075 Resources Corporation Berhad Accounting holding and conduct activities relating to construction, property development and management services to its subsidiaries Konsortium Equity Highway Malaysia 40.00 40.00 - - 952,772 1,120,169 Accounting concession operator Lebuhraya Utara-Timur (KL) Sdn Bhd Immaterial 10.1c Associates Total Investment in Associates 1,945,612 2,137,913 17,390,851 16,822,850 213 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 10.
INVESTMENT IN ASSOCIATES (CONT’D.)

10.1 GROUP (Cont’d.)

b.

The tables below provide summarised financial information for those Associates that are material to the Group.

The information disclosed reflects the amounts presented in the Financial Statements of the relevant Associates and not the Group’s share of those amounts.
They have been revised to reflect adjustments made by the entity when using the equity method, including fair value adjustments and modifications for differences in accounting policy: RHB Bank Berhad Malaysian Resources Corporation Berhad Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd 2020 (RM’000) 2019 (RM’000) 2020 (RM’000) 2019 (RM’000) 2020 (RM’000) 2019 (RM’000) Summarised Statement of Financial Position Total Assets Total Liabilities Total Net Assets 271,149,958 257,592,496 8,348,907 8,505,017 4,804,401 4,917,276 (243,692,389) (231,781,687) (3,760,164) (3,681,542) (2,422,471) (2,455,328) 27,457,569 25,810,809 4,588,743 4,823,475 2,381,930 2,461,948 Non-Controlling Interests (NCI) (32,729) (35,415) (10,726) (31,901) - - Total Net Assets excluding NCI 27,424,840 25,775,394 4,578,017 4,791,574 2,381,930 2,461,948 Extraction from Statement of Comprehensive Income Income 7,280,919 7,100,740 1,199,484 1,319,393 144,030 192,863 Profit/(Loss) after Tax for the Financial Year 2,039,152 2,487,809 (175,865) 18,692 (47,948) (9,611) Other Comprehensive Income/(Loss) for the Financial Year Total Comprehensive Income/ (Loss) for the Financial Year Dividend Received from Associates for the Financial Year 358,741 960,629 3,827 (166) - - 2,397,893 3,448,438 (172,038) 18,526 (47,948) (9,611) 315,660 418,432 15,815 27,677 - - Group's Share in % 42.80% 41.55% 35.85% 35.85% Group's Share of Net Assets 11,737,831 10,709,676 1,641,219 1,717,779 40.00% 952,772 Goodwill 967,120 991,017 146,297 146,296 - 40.00% 984,779 135,390
 Carrying Amount 12,704,951 11,700,693 1,787,516 1,864,075 952,772 1,120,169 214 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 10.
INVESTMENT IN ASSOCIATES (CONT’D.)

10.1 GROUP (Cont’d.)
c. Individually Immaterial Associates In addition to the interests in Associates disclosed as above, the Group also has interests in a number of individually immaterial Associates using the equity accounting method as follows: Total Carrying Amount of Individually Immaterial Associates 1,945,612 2,137,913 2020 (RM’000) 2019 (RM’000) Aggregate Amounts of the Group’s Share of: Loss for the Financial Year Other Comprehensive Income Total Comprehensive Loss 10.2 EPF Domestic Quoted Equities Domestic Unquoted Equities Allowance for Impairment Losses Market Price Domestic Quoted Equities List of Associates is disclosed in Note 40.
(153,177) (99,530) 264 270 (152,913) (99,260) 2020 2019 Cost/ Book Value (RM’000) Cost/ Book Value (RM’000) 9,471,530 2,117,726 9,172,776 2,117,725 (266,409) (30,655) 1,851,317 2,087,070 11,322,847 11,259,846 10,105,741 10,784,079 215 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 11.
INVESTMENT IN SUBSIDIARIES Domestic Quoted Equities Domestic Unquoted Equities Allowance for Impairment Losses Global Unquoted Equities Allowance for Impairment Losses Market Price Domestic Quoted Equities Note EPF 2020 Cost/ Book Value (RM’000) 2019 Cost/ Book Value (RM’000) 4,968,450 2,897,436 4,838,577 2,753,711 (66,314) (54,326) 2,831,122 2,699,385 11.a., 11.b., 11.c.
22,956,386 18,717,144 (41,472) (59,901) 22,914,914 18,657,243 30,714,486 26,195,205 3,078,707 3,593,178 No impairment loss has been recognised for Domestic Quoted Equities even though market price is lower than the carrying amount during the financial year ended 2020 and 2019.

This is because the recoverable amount for Domestic Quoted Equities is higher than the carrying amount when measured using a valuation technique in EPF’s accounting policy as approved by the Board.
List of Subsidiaries is disclosed in Note 39.

Details of significant transactions on Investment in Subsidiaries involving new/additional capital injection and decrease in investment via shares redemption or return of capital during the financial year of 2020 are as follows: 11.a.

Additional Capital Injection i. ii.


KWASA Global (Jersey) Limited During the year, EPF injected additional capital into KWASA Global (Jersey) Limited amounting to GBP478.48 million or RM2,564.29 million mainly for the purchase of a building in London through KWASA UK Limited, a subsidiary of KWASA Global (Jersey) Limited amounting to GBP325.00 million or RM1,836.25 million.
The remaining capital injection was for investment in KWASA Australia II Trust which is also a subsidiary of KWASA Global (Jersey) Limited and also for meeting commitments in other investments such as Battersea Project Development and Phase 2 Battersea Power Station.
Kwasa Infrastructure Sapphire During the year, EPF injected capital amounting to USD80.14 million or RM337.12 million into Kwasa Infrastructure Sapphire for an investment in a leading global fiber provider with substantial network and presence throughout the United States of America, Canada and Europe.

216 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 11.

INVESTMENT IN SUBSIDIARIES (CONT’D.)

11.b.

Return of Capital i. ii.


Symphony Insight Sdn Bhd During the year, EPF received return of capital from Symphony Insight Sdn Bhd amounting to RM25.00 million arising from a partial redemption of Redeemable Preference Share (“RPS”) at a redemption price of RM1 per RPS.

KWASA US During the year, EPF received return of capital of USD4.45 million or RM18.77 million from KWASA US mainly from Madison Fund VII in December 2020 following equalisation process at the fund level in 2019 and 2020.
Madison Fund VII is an investment fund under KWASA Madison, a subsidiary of KWASA US.

11.c.

Injection and Return of Capital from “Fund-of-Funds” Subsidiaries i.
During the year, EPF injected additional capital amounting to RM1,272.67 million to 10 subsidiaries owned by EPF to support private equity fund in foreign countries based on the approved capital commitments as follows: (1) Cengal Private Equity Investments III plc – RM379.83 million (2) Cengal Private Equity Investments II plc - RM147.36 million (3) Cengal Private Equity Investments plc - RM55.34 million (4) Meranti Fund II L.P. - RM266.58 million (5) Meranti Fund L.P. - RM78.70 million (6) Jati Private Equity Fund III L.P. - RM201.04 million (7) Jati Private Equity Fund II L.P. - RM106.96 million (8) Merbau Investors Offshore, III L.P. - RM23.41 million (9) Merbau Investors Offshore, II L.P. - RM12.87 million (10) Merbau Investors Offshore, L.P. - RM0.58 million ii.
The total return of capital from eight (8) EPF “Fund-of-Funds” subsidiaries for the year 2020 amounted to RM500.29 million as follows: (1) Cengal Private Equity Investments II plc – RM165.23 million (2) Cengal Private Equity Investments III plc - RM70.16 million (3) Jati Private Equity Fund II L.P. - RM81.31 million (4) Jati Private Equity Fund L.P. - RM19.61 million (5) Merbau Investors Offshore, L.P. - RM80.27 million (6) Merbau Investors Offshore, II L.P. - RM10.03 million (7) Meranti Fund L.P. - RM69.08 million (8) Meranti Fund II L.P. - RM4.60 million 217 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 11.
INVESTMENT IN SUBSIDIARIES (CONT’D.)

11.1 NON-CONTROLLING INTERESTS Set out below are summarised financial information of Malaysia Building Society Berhad (MBSB), a 65.39% (2019: 64.48%) subsidiary which has Non-Controlling Interests that are material to the Group.
The summarised financial information are presented before the intra-group eliminations and is presented together with the amount attributable to Non-Controlling Interests as follows: Summarised Statement of Financial Position Total Assets Total Liabilities Total Net Assets 2020 (RM’000) 2019 (RM’000) 48,438,494 50,709,657 (39,557,322) (42,122,786) 8,881,172 8,586,871 Accumulated Non-Controlling Interests 3,073,774 3,050,057 Summarised Statement of Comprehensive Income Revenue Profit before Tax and Zakat Tax and Zakat Profit after Tax and Zakat Other Comprehensive Income Total Comprehensive Income Total Comprehensive Income Attributable to Non-Controlling Interests Dividend Paid to Non-Controlling Interests Summarised Statement of Cash Flows Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities Decrease in Cash and Cash Equivalents Cash and Cash Equivalents as at 1 January Cash and Cash Equivalents as at 31 December 3,129,251 2,987,080 426,759 897,069 (157,441) (180,168) 269,318 79,672 348,990 120,785 71,528 716,901 144,382 861,283 305,928 115,731 (1,120,209) 3,122,995 1,144,317 (5,318,066) (976,285) 817,973 (952,177) (1,377,098) 2,034,889 1,082,712 3,411,987 2,034,889 218 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 12.
ASSETS HELD FOR SALE GROUP EPF Note 2020 (RM’000) 2019 (RM’000) 2020 (RM’000) 2019 (RM’000) Net Book Value At 1 January Additions Sales Current Year Impairment Loss Reclassification from Inventories Reclassification from Intangible Assets Reclassification from Investment Properties Reclassification to Investment Properties Reclassification from Right-of-Use Assets Reclassification from Property, Plant and Equipment At 31 December 29 13 14 15 15 16 17 662,200 - (652,923) (2,986) 10 3 66,583 12,075 (139) - - - 4,830 576,010 - - (56) 71 12,599 23,733 7,656 662,200 75,666 66,389 - (66,389) (2,986) - - - - - - 6,291 - - - - - 1,550 - 71 7,656 75,666 The fair value of Assets Held for Sale of the Group as at the date of Statements of Financial Position amounting to RM34.69 million (2019: RM838.13 million) was based on valuation carried out during the year.
Inclusive is the fair value of Assets Held for Sale of the EPF as at 31 December 2020 amounting to RM9.19 million (2019: RM132.44 million).

In November 2019, subsidiary Kwasa Global (Jersey) Limited approved its intention to dispose its units of Reading Jersey Unit Trust and shares of Reading No.1 Limited and Reading No.2 Limited (collectively “Reading entities”).

Management began marketing the sale of the units and shares in December 2019.

The sale was completed in December 2020.


A gain of RM32.90 million arose on the disposal of these Reading entities, being the difference between the proceeds of disposal and the carrying amounts of the Assets Held for Sale.

Assets Held for Sale for the Group consist of: 1) One (1) subsidiary from the hotel operation segment, Ombak Pesaka Sdn.

Bhd.

; and 2) One (1) investment property which pertains to a retail building in Shah Alam, Selangor.
Whereas, the Assets Held for Sale for EPF consist of: 1) One (1) condominium in Fraser Hill, Pahang; 2) One (1) land and apartment in Port Dickson, Negeri Sembilan; and 3) One (1) land and apartment in Cameron Highland, Pahang.

219 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 13.
INVENTORIES Land Held for Development At 1 January Additions Adjustments on Costs At 31 December Inventories Hotel Inventories - at Cost GROUP 2020 2019 Note (RM’000) (RM’000) 3,014,268 3,037,704 140,297 (154,758) 24,368 (47,804) 13b 2,999,807 3,014,268 10 (10) - 12 - 12 69,374 102,163 3,069,181 3,116,443 Reclassification to Assets Held for Sale 12 Freehold Land Held for Sale - at Net Realisable Value a.
Cost of inventories recognised as current year expenses amounted to RM0.01 million (2019: RM0.14 million).

b.

Below is the breakdown of the Land Held for Development: Freehold Land Leasehold Land Development Cost GROUP 2020 (RM’000) 2019 (RM’000) 356,100 484,949 2,374,124 2,247,188 269,583 282,131 2,999,807 3,014,268 220 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 14.
INTANGIBLE ASSETS 14.1 GROUP Goodwill Note (RM’000) License and Information Technology Software (RM’000) Banking License Core Deposits Total (RM’000) (RM’000) (RM’000) Cost At 1 January 2019 Additions Reallocation from Completion of Purchase Price Allocation Reclassification from Property, Plant and Equipment Reallocated to Deferred Tax Liabilities from Completion of Purchase Price Allocation Disposals At 31 December 2019/At 1 January 2020 Additions Reclassification to Assets Held for Sale Reclassification from Property, Plant and Equipment Write-Off At 31 December 2020 Accumulated Amortisation At 1 January 2019 Current Year Amortisation Disposals At 31 December 2019/At 1 January 2020 Current Year Amortisation Reclassification to Assets Held for Sale Reclassification from Property, Plant and Equipment Write-Off At 31 December 2020 Net Book Value At 1 January 2019 At 31 December 2019/At 1 January 2020 At 31 December 2020 17 18 12 17 29 29 12 17 188,790 - 321,868 33,569 - - - - 510,658 33,569 (53,631) - 47,415 6,216 - - 16,633 12,872 - 148,031 - - - - 148,031 - - - - - - - - - - (224) 371,846 18,774 (236) 39,019 (22,567) 406,836 218,319 35,006 (209) 253,116 43,787 (233) 934 (22,567) 275,037 188,790 148,031 148,031 103,549 118,730 131,799 - - - - - - 16,633 12,872 (224) 47,415 6,216 573,508 - - - - - - - - 18,774 (236) 39,019 (22,567) 47,415 6,216 608,498 - - - - - - - - - - 47,415 47,415 - 218,319 1,986 36,992 - (209) 1,986 1,036 - - - 255,102 44,823 (233) 934 (22,567) 3,022 278,059 - 4,230 3,194 292,339 318,406
 330,439 Goodwill arose from the acquisition of MBSB Bank Berhad (formerly known as Asian Finance Bank Berhad) in February 2018 by Malaysia Building Society Berhad (“MBSB”), a subsidiary of EPF.
There is no impairment to goodwill since acquisition.

221 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 14.

INTANGIBLE ASSETS (CONT’D.)

14.1 GROUP (Cont’d.)

a. Impairment Testing for Cash-Generating Unit Containing Goodwill For the purpose of impairment testing, goodwill is allocated to the Group’s operating divisions which represents the lowest level within the Group at which the goodwill is monitored for internal management purposes.
The recoverable amount of cash-generating units (“CGU”) is determined based on the value-in-use (“VIU”) calculations.

These calculations use pre-tax cash flow projections based on the 2021 financial budgets approved by the Board of Directors, projected for three (3) years.

Cash flows beyond the three (3) years period are extrapolated using the estimated terminal growth rates and discounted using pre-tax discount rates which reflect the specific risks relating to the CGU.
The cash flow projections are derived based on a number of key factors including the past performance and management’s expectation of market developments.
The estimated terminal growth rates and discount rates used for VIU calculations are as follows: Corporate Banking Retail Banking Terminal Growth Rate Pre-Tax Discount Rate 2020 4.6% 4.6% 2019 3.2% 3.2% 2020 13.2% 13.4% 2019 7.4% 7.5% The estimated recoverable amounts significantly exceeds that carrying amount of the cash-generating units containing goodwill.
Management considers that it is not reasonably possible for the terminal growth rate and pre-tax discount rate to change so significantly as to eliminate this excess.

222 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 14.

INTANGIBLE ASSETS (CONT’D.)
14.2 EPF Cost At 1 January 2019 Reclassification from Property, Plant and Equipment At 31 December 2019/At 1 January 2020 Reclassification from Property, Plant and Equipment Write-Off At 31 December 2020 Accumulated Amortisation At 1 January 2019 Current Year Amortisation At 31 December 2019/At 1 January 2020 Current Year Amortisation Reclassification from Property, Plant and Equipment Write-Off At 31 December 2020 Net Book Value At 1 January 2019 At 31 December 2019/At 1 January 2020 At 31 December 2020 Note 17.2 17.2 29 29 17.2 License and Information Technology Software (RM’000) 138,726 15,643 154,369 12,367 (22,567) 144,169 111,769 12,782 124,551 12,240 934 (22,567) 115,158 26,957 29,818 29,011 223 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 15.
INVESTMENT PROPERTIES GROUP Note 2020 (RM’000) 2019 (RM’000) EPF 2020 (RM’000) 2019 (RM’000) Cost At 1 January Additions Additions - Right-of-Use Assets Lease Modification Sales Reclassification from Assets Held for Sale Reclassification to Assets Held for Sale Reclassification from Property, Plant and Equipment Reclassification to Property, Plant and Equipment Foreign Currency Translation Differences Adjustments At 31 December Accumulated Depreciation At 1 January Current Year Depreciation Sales Reclassification to Assets Held for Sale Reclassification from Property, Plant and Equipment Reclassification to Property, Plant and Equipment Foreign Currency Translation Differences Adjustments At 31 December Accumulated Impairment Loss At 1 January Current Year Impairment Loss Write-back of Impairment Loss Reclassification to Assets Held for Sale Foreign Currency Translation Differences Adjustments At 31 December 12 12 17 17 29 12 17 17 29 29 12 27,306,723 26,902,530 1,628,934 1,631,871 1,841,774 1,040,671 4,335 1,725 (1,112,210) - - - - 56 (7,000) (770,116) - - - - - - 38,157 (77,418) 657,520 (34,686) - - 108,406 25,176 37,603 (77,418) - - - - - - - (2,937) - - - - 28,618,920 27,306,723 1,589,119 1,628,934 (3,339,480) (3,056,511) (506,313) (321,770) (468,408) (35,292) (432,827) (35,581) 73,589 2,170 (13,713) 27,239 (65,595) - - 192,719 - - (40,132) (113,786) - - (13,713) 27,239 - - - - - - - - (3,822,103) (3,339,480) (490,174) (468,408) (36,559) (213,904) - - (3,328) - (55,406) - 8,334 1,387 (505) 9,631 (3,503)
 (13,464) - - - - (4,890) - - 1,387 - - (253,791) (36,559) (16,967) (3,503) Net Book Value as at 31 December 24,543,026 23,930,684 1,081,978 1,157,023 224 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 15.
INVESTMENT PROPERTIES (CONT’D.)
The Profit or Loss shows the following amounts relating to Investment Properties: Rental Income Variable Rental Income Operating Expenditures: - Depreciation - Current Year Impairment Loss - Write-back of Impairment Loss - Miscellaneous Net Profit Related to Investment Properties GROUP EPF Note 2020 (RM’000) 2019 (RM’000) 2020 (RM’000) 2019 (RM’000) 1,778,972 1,736,699 3,296 5,673 29 29 29 (506,313) (213,904) - (85,152) (321,770) - 8,334 (25,455) 93,424 3,296 (35,292) (13,464) - 95,829 5,673 (35,581) - - (18,389) (22,832) 976,899 1,403,481 29,575 43,089 The Investment Properties of the Group are stated at cost, including transaction costs.
The fair value of the Investment Properties of the Group as at 31 December 2020 amounted to RM38,157.38 million (2019: RM33,659.96 million), which has been determined based on valuations performed during the financial year ended 2019 to 2020.

Meanwhile, the fair value of the EPF’s Investment Properties as at 31 December 2020 amounted to RM1,898.48 million (2019: RM1,890.57 million) which has been determined based on valuations during the year.
Based on the impairment assessment performed as at 31 December 2020, the Investment Properties cost of RM213.90 million (2019: Nil) for the Group and RM13.46 million (2019: Nil) for the EPF has been impaired mainly due to the impact of COVID-19 and the resulting decline in property prices.

The impairment amount has been recognised in Profit or Loss as at 31 December 2020 on the basis that the recoverable amounts were below the carrying amounts.
As at financial year ended 31 December 2020, the Group’s Investment Properties amounting to RM12,987.06 million (2019: RM13,734.79 million) were pledged by EPF’s subsidiaries as collateral for bank borrowings.

225 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 16.
LEASES Information pertaining to Right-of-Use Assets, Lease Liabilities, expenses and cash flows related to Leases are shown below: (i) Amounts recognised in the Statements of Financial Position The Statements of Financial Position show the following amounts relating to Leases: a) Right-of-Use Assets GROUP Cost At 1 January 2019 Additions Disposals Leasehold Land (RM’000) Building (RM’000) Office Equipment (RM’000) Total (RM’000) Note Reclassification to Assets Held for Sale 12 Lease Modification Foreign Currency Translation Differences At 31 December 2019/At 1 January 2020 Additions Disposals Lease Modification Foreign Currency Translation Differences At 31 December 2020 Accumulated Depreciation At 1 January 2019 Current Year Depreciation Disposals Reclassification to Assets Held for Sale Foreign Currency Translation Differences At 31 December 2019/At 1 January 2020 Current Year Depreciation Disposals Foreign Currency Translation Differences 29 12 29 3,603 223,252 - - - 2,431 225,683 12,854 2,044 (2,625) (57) 33 12,249 1,984 - 43 227,051 - (7,274) (128) 55,879 18,518 - - - 2,759 - 77,156 17,156 (2,029) 3,427 - 1,041 419 - - - - 1,460 134 - - - 283,971 18,937 (7,274) (128) 2,759 3,603 301,868 17,290 (2,029) 3,427 2,431 95,710 1,594 322,987 - 15,496 - - - 15,496 16,674 (571) - - 342 - - - 342 377 - - 12,854 17,882 (2,625) (57) 33 28,087 19,035 (571) 43 At 31 December 2020 14,276 31,599 719 46,594 Net Book Value At 1 January 2019 At 31 December 2019/At 1 January 2020 At 31 December 2020 214,197 211,003 211,407
 55,879 61,660 64,111 1,041 1,118 875 271,117 273,781 276,393 226 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 16.
LEASES (CONT’D.)

a) Right-of-Use Assets (Cont’d.)
EPF Cost At 1 January 2019 Additions Reclassification to Assets Held for Sale 12 Lease Modification At 31 December 2019/At 1 January 2020 Additions Disposals Lease Modification At 31 December 2020 Accumulated Depreciation At 1 January 2019 Current Year Depreciation Reclassification to Assets Held for Sale At 31 December 2019/At 1 January 2020 Current Year Depreciation Disposals At 31 December 2020 Net Book Value At 1 January 2019 At 31 December 2019/At 1 January 2020 At 31 December 2020 29 12 29 Leasehold Land (RM’000) Note Building Total (RM’000) (RM’000) 56,866 - (128) - 56,738 - - - 56,738 9,688 495 (57) 10,126 465 - 51,228 12,814 - 2,759 66,801 6,195 (2,029) 5,974 76,941 - 8,039 - 8,039 8,871 (571) 10,591 16,339 108,094 12,814 (128) 2,759 123,539 6,195 (2,029) 5,974 133,679 9,688 8,534 (57) 18,165 9,336 (571) 26,930 47,178 46,612 46,147 51,228 58,762 60,602 98,406 105,374 106,749 227 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 16.
LEASES (CONT’D.)
b) Lease Liabilities GROUP Leasehold Land (RM’000) Building (RM’000) Office Equipment (RM’000) Total (RM’000) Note At 1 January 2019 Additions Profit Expense on Lease Liabilities 29 Lease Modification Lease Payments Foreign Currency Translation Differences At 31 December 2019/At 1 January 2020 Additions Profit Expense on Lease Liabilities 29 Lease Modification Lease Payments Disposals Foreign Currency Translation Differences At 31 December 2020 22,286 503,905 438,167 - 9,522 - 55,879 18,518 2,656 2,759 1,041 495,087 419 50 - 18,937 12,228 2,759 (10,317) (16,426) (372) (27,115) 1,257 438,629 39,963 12,790 1,725 - - 1,257 63,386 17,174 2,561 3,426 1,138 503,153 134 34 - 57,271 15,385 5,151 (11,488) (17,560) (403) (29,451) - (1,482) - - - (1,482) 22,286 67,505 903 572,313 EPF At 1 January 2019 Additions Profit Expense on Lease Liabilities Lease Modification Lease Payments At 31 December 2019/At 1 January 2020 Additions Profit Expense on Lease Liabilities Lease Modification Lease Payments Disposals At 31 December 2020 Leasehold Land (RM’000) Note Building Total (RM’000) (RM’000) 29 29 - - - - - - 35,628 1,657 - (1) - 51,228 12,815 2,468 2,759 (8,747) 60,523 6,195 2,486 5,975 (9,571) (1,482) 51,228 12,815 2,468 2,759 (8,747) 60,523 41,823 4,143 5,975 (9,572) (1,482) 37,284 64,126 101,410 Addition to Lease Liabilities under Leasehold Land for the financial year 2020 is pertaining to sublease of a land which is categorised under finance lease.
Correspondingly, the lease receivable on the sublease is included in Accruals on Miscellaneous Non-Investment Receivables and Deposits in Note 4.

228 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 16.

LEASES (CONT’D.)

b) Lease Liabilities (Cont’d.)
The maturity structure of Lease Liabilities are as follows: Maturing within 12 Months Maturing after 12 Months GROUP EPF 2020 (RM’000) 18,324 553,989 572,313 2019 (RM’000) 19,847 483,306 503,153 2020 (RM’000) 7,111 94,299 101,410 2019 (RM’000) 7,129 53,394 60,523 (ii) Amounts recognised in the Statements of Comprehensive Income The Profit or Loss shows the following amounts relating to Leases: Gain on Termination of Lease Contracts Items Included in Rent and Assessments: - Expense Relating to Short-Term Leases - Expense Relating to Variable Lease Payments Not Included in Lease Liabilities GROUP EPF 2020 (RM’000) 2019 (RM’000) 2020 (RM’000) 2019 (RM’000) 24 170 6,123 6,317 - 506 7,424 7,930 24 170 - 194 - 417 - 417 (iii) Amounts recognised in the Statements of Cash Flows The total cash outflow for Leases in 2020 are RM35.66 million (2019: RM35.04 million) and RM9.66 million (2019: RM9.16 million) for Group and EPF respectively.
229 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 ) 7 5 8 2 1 ( , - ) 3 3 6 6 1 ( , ) 3 3 6 6 1 ( , - - - - 4 5 8 , 4 1 2 , 1 4 6 1 , 8 1 3 4 3 0 , 6 4 2 9 6 0 , 9 3 5 8 4 , 9 1 1 5 6 4 , 3 0 1 3 1 1 , 1 1 ) 3 4 6 ( 8 0 8 ) 3 0 1 ( 2 1 - ) 4 1 0 , 2 ( - - ) 9 8 0 , 1 4 ( 8 5 0 , 2 3 7 7 8 - 2 1 ) 9 1 0 , 9 3 ( ) 4 1 2 , 4 3 ( ) 5 0 8 , 4 ( ) 8 8 0 , 3 2 ( 8 1 4 , 7 7 - - ) 7 5 1 , 8 3 ( ) 3 5 5 ( - - ) 2 1 1 ( - - - - - - - - ) 5 4 7 , 4 3 ( - ) 3 7 0 , 9 2 ( ) 0 1 8 , 1 ( ) 1 8 2 1 ( , - - - - 2 9 3 4 5 1 8 , - - - 3 2 ) 7 9 2 4 8 ( , - - - fi ) 0 0 0 ’ M R ( ) 0 0 0 ’ M R ( ) 0 0 0 ’ M R ( ) 0 0 0 ’ M R ( ) 0 0 0 M R ( ’ , 9 1 0 4 3 2 1 , 0 4 1 0 9 2 , 2 4 3 5 0 2 , 6 3 5 7 3 , 7 8 7 , 7 9 4 5 6 3 1 , 4 3 2 7 1 1 , 1 8 7 0 1 , ) 4 1 4 ( 4 3 7 ) 1 0 2 ( 7 9 7 ) 1 5 2 ( d n a s g n i t t i F ) 0 0 0 M R ( ’ s e r u t x i F , e r u t i n r u F 0 5 1 , 1 9 7 8 5 , 1 ) 3 2 2 4 1 ( , ) 7 7 5 2 7 ( , 9 1 1 7 4 , 4 4 3 2 , ) 7 2 7 7 2 ( , - ) 4 9 7 6 1 ( , ) 7 6 3 1 ( , ) 9 7 1 ( ) 8 0 6 , 3 ( ) 9 5 2 , 5 ( ) 9 5 2 , 4 1 ( ) 8 9 7 , 2 ( - - ) 5 3 ( 0 0 1 , 7 7 5 3 , 5 - - - - 0 9 4 ) 1 0 1 ( ) 2 3 4 ( 6 7 9 2 , - - 7 5 7 ) 4 0 3 ( 7 1 3 7 , ) 1 7 2 2 ( , - - ) 0 7 4 ( ) 9 6 1 1 ( , - - - - - - 9 5 - - ) 0 2 5 ( 6 2 8 , 1 - - - - - ) 4 7 3 , 6 6 ( ) 7 5 8 , 2 1 ( - - - - - - - - - 0 8 ) 6 ( - - - - - - - - )
 7 3 3 1 2 ( , - - - - - ) 1 5 4 ( ) 4 8 2 ( 5 3 8 4 7 , 5 1 2 , 3 1 2 0 6 6 4 1 , 8 9 1 , 2 8 2 5 2 5 , 8 1 1 4 2 - - 1 .
4 1 2 1 1 .
fi i s s a c e R l / s t n e m j t s u d A o t n o i t a c fi i s s a c e R l f f O - fi i s s a c e R l l e a S r o f l d e H / fi i s s a c e R l / s t n e m j t s u d A o t n o i t a c fi i s s a c e R l f f O - fi i s s a c e R l l e a S r o f l d e H m o r f n o i t a c fi i s s a c e R l 4 2 7 5 7 , 4 9 6 , 1 5 1 s e i t r e p o r P t n e m t s e v n I ) 4 0 6 7 3 ( , - fi i s s a c e R l / e c fi ) 0 0 0 M R ( ’ ) 0 0 0 M R ( ’ ) 0 0 0 M R ( ’ ) 0 0 0 M R ( ’ t e o N 5 1 8 , 8 0 2 5 9 2 , 3 1 9 2 4 , 1 6 3 5 2 5 , , Y T R E P O R P .
7 1 P U O R G .
1 7 1 230 6 4 7 , 4 7 2 , 1 3 7 7 , 5 4 3 2 7 5 , 4 5 2 3 5 8 , 8 3 5 6 2 7 , 7 0 2 5 7 , 6 3 6 , 9 1 2 5 7 9 4 1 , 0 3 5 , 8 9 2 5 3 9 , 9 1 0 2 0 2 r e b m e c e D 1 3 t A NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 l t a o T n i k r o W s s e r g o r P r e t u p m o C e c fi ) 0 0 0 ’ M R ( ) 0 0 0 ’ M R ( ) 0 0 0 ’ M R ( ) 0 0 0 ’ M R ( ) 0 0 0 M R ( ’ d n a s g n i t t i F ) 0 0 0 M R ( ’ s e r u t x i F , e r u t i n r u F / e c fi ) 0 0 0 M R ( ’ ) 0 0 0 M R ( ’ ) 0 0 0 M R ( ’ ) 0 0 0 M R ( ’ t e o N n o i t i a c e r p e D d e a u m u c c A t l ) .
D ’ T N O C ( T N E M P I U Q E D N A T N A L P , Y T R E P O R P .

7 1 ) .

d ’ t n o C ( P U O R G .
1 7 1 8 2 3 4 4 6 , 7 8 2 4 3 , 5 1 6 8 7 6 , 6 2 2 0 5 , ) 6 2 3 8 4 ( , - ) 5 7 8 6 2 ( , 3 2 ) 1 0 2 5 ( , 2 6 4 , 8 4 6 5 7 1 , 4 1 6 7 8 2 , 4 3 2 6 4 , 8 4 6 - - - - - - - - - - - - - 2 3 9 9 6 1 , 3 8 5 6 2 , 0 8 5 , 5 0 5 2 , 4 8 6 1 3 , 9 7 1 3 9 8 , 9 3 0 4 , - - - - - ) 0 1 4 ( ) 5 9 1 ( 3 9 9 2 2 , 1 6 8 3 , 4 9 7 ) 9 4 2 ( 2 5 2 , 2 7 3 5 , 0 1 ) 1 1 2 , 4 1 ( ) 4 3 7 , 2 ( 2 3 9 9 6 1 , 3 8 5 6 2 , 0 8 5 , 5 0 5 2 , 4 8 6 1 3 , 9 7 1 ) 4 1 ( 5 2 5 1 , - ) 5 8 7 6 1 ( , ) 8 4 3 1 ( , ) 9 7 1 ( ) 1 1 5 , 1 ( ) 7 7 5 , 3 ( - ) 8 3 6 , 4 ( ) 8 4 3 ( - - 3 2 - - - - - - - - - - - - 3 9 8 , 9 3 4 4 , 2 6 4 3 , 7 ) 7 2 5 , 0 3 ( - - - ) 1 0 2 , 5 ( - - - - - - 7 8 2 , 4 3 - 0 9 6 , 2 0 2 1 7 3 6 1 7 , 5 7 1 9 4 4 , 0 3 6 4 9 5 , 3 0 2 7 6 , 1 8 4 , 2 8 1 8 8 9 1 1 , 8 0 3 , fi / : s a d e s y a n A l s n o i t a c fi i s s a c e R l / s t n e m j t s u d A f f O - , 5 7 1 9 4 4 , 0 3 6 4 9 5 , 3 0 2 7 6 , 1 8 4 , 2 8 1 8 8 9 1 1 , 1 2 0 , 0 4 1 1 7 3 n o i t i a c e p e D r - - - - - - 7 8 2 4 3 , - 6 1 7 , 5 7 1 9 4 4 ,
 0 3 6 4 9 5 , 3 0 2 7 6 , 1 8 4 , 2 8 1 8 8 9 1 1 , 8 0 3 , 231 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 0 6 0 , 8 7 ) 3 6 5 , 1 ( ) 0 8 1 , 3 3 ( 2 1 ) 0 4 2 , 0 3 ( ) 9 8 4 , 0 1 ( 9 3 2 , 7 2 ) 3 1 7 , 3 1 ( ) 4 3 9 ( 4 5 6 , 3 6 6 6 3 2 , 3 6 6 8 1 4 4 5 6 , 3 6 6 - - - - - - - - - - - - - ) 3 4 6 ( ) 8 9 ( 0 7 4 , 3 3 2 2 2 , 3 - 5 8 7 ) 1 3 8 , 7 2 ( ) 7 8 7 , 1 ( )
 0 9 9 ( - - - - ) 6 0 1 ( ) 4 3 9 ( 2 1 - - - - - - - - - - - 3 3 8 1 , 6 1 3 2 1 , 2 5 3 2 , 2 8 0 4 2 , ) 8 9 ( ) 5 9 2 ( ) 2 3 4 ( ) 1 7 2 2 ( , - ) 6 ( - - - - ) 5 1 4 ( ) 9 6 1 1 ( , - - - - - - - - - - - - - - ) 2 9 2 ( ) 9 9 7 8 ( , 9 3 2 7 2 , ) 3 1 7 3 1 ( , - ) 9 6 8 9 2 ( , ) 1 7 3 ( 2 7 6 , 9 7 1 8 9 7 , 1 3 1 4 7 5 , 8 2 2 8 6 , 5 2 9 , 0 9 1 4 3 3 4 1 , 6 5 9 , 2 7 1 2 7 6 , 9 7 1 8 9 7 , 1 3 1 4 7 5 , 8 2 2 8 6 , 5 2 9 , 0 9 1 4 3 3 4 1 , 8 3 5 , 2 7 1 - - - - - - 8 1 4 2 7 6 , 9 7 1 8 9 7 , 1 3 1 4 7 5 , 8 2 2 8 6 , 5 2 9 , 0 9 1 4 3 3 4 1 , 6 5 9 , 2 7 1 - - - - - - - - - - - - 4 0 4 5 5 5 , 0 4 1 0 9 2 , 0 1 4 5 3 , 3 5 9 0 1 , 7 0 2 , 2 0 0 9 , 6 9 9 4 , 9 2 2 0 4 , 3 9 3 7 , 8 5 1 4 5 1 , 8 1 2 9 3 6 6 5 , 4 6 1 8 1 3 , 8 1 3 0 7 , 2 9 0 , 1 1 6 3 7 7 , 5 4 3 0 0 9 , 4 7 0 2 6 8 , 5 5 0 , 7 8 0 2 , 2 4 2 5 1 , 2 3 6 , 7 9 7 9 6 , 4 3 7 , 0 3 1 1 7 8 2 , 1 4 6 2 7 6 , 2 0 9 8 , 7 0 1 4 5 1 , 8 1 4 7 5 , 5 2 1 5 3 9 9 1 , 9 2 9 2 2 1 5 1 5 1 1 .
4 1 n o i t i a c e p e D r ) .
d ’ t n o C ( r a e Y t n e r r u C f f O - - e t i r W s s o L s t e s s A o t n o i t a c fi fi fi i s s a c e R l o t n o i t a c fi : / fi ) 0 0 0 ’ M R ( ) 0 0 0 ’ M R ( ) 0 0 0 ’ M R ( ) 0 0 0 ’ M R ( ) 0 0 0 M R ( ’ d n a s g n i t t i F ) 0 0 0 M R ( ’ s e r u t x i F , e r u t i n r u F / e c fi ) 0 0 0 M R ( ’ ) 0 0 0 M R ( ’ ) 0 0 0 M R ( ’ ) 0 0 0 M R ( ’ t e o N / ) .
D ’ T N O C ( T N E M P I U Q E D N A T N A L P , Y T R E P O R P .

7 1 232 ) .

d ’ t n o C ( P U O R G .
1 7 1 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 ) 8 3 3 4 2 ( , - ) 8 2 9 5 1 ( , ) 5 6 3 1 ( , ) 9 7 1 ( ) 3 9 0 , 1 ( ) 3 5 2 , 5 ( ) 0 2 5 ( l t a o T n i k r o W s s e r g o r P r e t u p m o C e c fi ) 0 0 0 ’ M R ( ) 0 0 0 ’ M R ( ) 0 0 0 ’ M R ( ) 0 0 0 ’ M R ( ) 0 0 0 M R ( ’ ) 8 1 3 ( - ) 8 5 ( 1 6 3 5 7 , 9 2 2 8 6 , 9 7 6 5 , 8 0 7 ) 1 0 2 ( 1 6 5 1 9 6 , 2 5 5 9 2 , 7 4 5 3 5 1 , 6 2 7 4 3 , ) 3 2 2 4 1 ( , ) 7 4 6 8 6 ( , 4 0 2 3 4 , 6 1 8 - - 9 7 4 3 0 3 , 6 ) 7 5 8 2 1 ( , - ) 3 4 6 5 1 ( , ) 3 4 6 5 1 ( , - - - - ) 3 1 8 ( - ) 3 4 6 ( 3 0 2 , 8 4 1 9 7 , 8 3 6 8 9 , 7 9 9 7 ) 3 0 1 ( 3 4 5 , 9 9 6 1 9 4 , 3 1 4 4 4 , 6 8 1 4 8 6 , 4 3 - ) 9 8 0 , 1 4 ( 8 5 0 , 2 3 7 7 8 - - - - 2 9 3 3 0 6 6 , ) 7 2 7 , 4 3 ( - ) 7 5 0 , 9 2 ( ) 8 0 8 , 1 ( ) 1 8 2 1 ( , 8 1 4 , 7 7 ) 3 0 6 , 7 3 ( - - - - ) 7 6 3 , 2 1 ( ) 2 6 5 , 7 ( ) 5 0 8 , 4 ( - - - - - - d n a s g n i t t i F ) 0 0 0 M R ( ’ s e r u t x i F , e r u t i n r u F / e c fi ) 0 0 0 M R ( ’ ) 0 0 0 M R ( ’ ) 0 0 0 M R ( ’ ) 0 0 0 M R ( ’ t e o N F P E .
2 7 1 t s o C 8 7 4 , 8 1 1 6 0 , 0 7 1 5 9 2 , 3 1 1 9 2 , 3 5 2 8 0 3 , 2 1 9 1 0 2 y r a u n a J 1 t A ) .

D ’ T N O C ( T N E M P I U Q E D N A T N A L P , Y T R E P O R P .

7 1 6 6 2 ) 9 5 ( - - - - 8 7 4 , 1 0 0 1 , 7 6 2 8 , 1 - - - - - - - - - - - ) 7 5 8 , 2 1 ( - - - - - - 5 3 2 ) 7 6 ( 7 5 7 ) 4 0 3 ( - - - - - 7 1 3 7 , ) 1 7 2 2 ( , - - - - - 0 8 ) 6 ( - - - - - - - - - - - - - ) 3 0 6 7 3 ( , - 4 2 7 5 7 , 4 9 6 1 , 0 7 0 9 1 , 8 0 9 , 1 7 1 1 0 6 4 1 , 4 3 4 , 0 4 2 8 0 3 2 1 , 2 .
4 1 2 1 2 .
4 1 5 1 5 1 s n o i t a c fi i s s a c e R l / s t n e m j t s u d A o t n o i t a c fi i s s a c e R l f f O - fi i s s a c e R l l e a S r o f l d e H / fi i s s a c e R l / s t n e m j t s u d A o t n o i t a c fi i s s a c e R l f f O - fi fi i s s a c e R l 4 5 6 , 9 3 7 1 3 6 , 3 3 8 9 , 1 9 1 9 4 4 , 4 3 4 1 7 5 , 1 9 6 9 1 , 4 5 9 , 6 7 1 5 7 6 4 1 , 5 5 5 , 8 7 2 2 0 0 4 1 , 0 2 0 2 r e b m e c e D 1 3 t A 233 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 l t a o T n i k r o W s s e r g o r P r e t u p m o C e c fi ) 0 0 0 ’ M R ( ) 0 0 0 ’ M R ( ) 0 0 0 ’ M R ( ) 0 0 0 ’ M R ( ) 0 0 0 M R ( ’ d n a s g n i t t i F ) 0 0 0 M R ( ’ s e r u t x i F , e r u t i n r u F / e c fi ) 0 0 0 M R ( ’ ) 0 0 0 M R ( ’ ) 0 0 0 M R ( ’ ) 0 0 0 M R ( ’ t e o N n o i t 9 4 9 7 6 4 , 3 0 5 9 3 , ) 2 1 3 ( ) 8 8 4 3 2 ( , ) 1 0 2 5 ( , 1 5 4 , 8 7 4 3 9 6 , 9 4 ) 5 0 8 ( ) 2 6
 1 , 3 3 ( 9 3 2 , 7 2 ) 3 1 7 , 3 1 ( ) 4 3 9 ( 9 6 7 , 6 0 5 - - - - - - - - - - - - - ) 8 5 ( ) 5 9 1 ( 3 7 6 8 1 , 0 8 5 3 , - 5 4 6 ) 9 5 ( - 9 4 4 , 1 5 8 2 , 9 3 9 2 0 3 1 , 3 9 8 4 2 , 0 1 3 , 4 0 1 9 , 5 1 1 0 3 , 1 4 1 - 5 2 7 , 8 0 8 2 , 1 ) 9 1 9 5 1 ( , ) 8 4 3 1 ( , ) 9 7 1 ( ) 2 6 0 , 1 ( ) 2 3 6 , 4 ( ) 8 4 3 ( - - 1 9 5 , 4 7 1 5 , 2 4 1 - - - - - - ) 1 0 2 , 5 ( - - ) 4 3 9 ( - - - - - - - - - - - - ) 3 4 6 ( ) 8 9 ( 0 6 4 , 8 2 8 6 0 , 3 - 0 4 6 ) 5 1 8 , 7 2 ( ) 4 8 7 , 1 ( ) 9 8 9 ( 7 5
 1 1 , 6 6 2 0 1 , ) 4 6 ( ) 6 9 2 ( - ) 1 7 2 2 ( , 9 8 9 , 2 3 1 0 3 9 , 6 2 6 7 7 4 , 8 3 2 6 1 , 4 5 9 , 5 4 1 - ) 7 ( 7 5 6 9 , 0 6 4 1 , - - - - - 2 4 6 4 , 7 0 9 , 1 4 1 - 9 3 2 7 2 , ) 3 1 7 3 1 ( , 7 5 0 , 2 3 1 6 1 1 , 8 2 7 2 4 4 , 5 3 0 7 1 , 9 4 9 , 3 5 1 0 1 1 1 1 , 5 7 0 , 0 6 1 - - - - - - - - - - - - - 9 2 2 1 9 2 5 1 5 1 2 .
4 1 2 1 6 3 2 2 , 2 5 5 9 2 , 4 5 2 3 2 , 3 3 8 9 , 3 9 9 , 1 8 6 5 , 2 0 6 7 , 8 2 0 7 5 , 4 4 7 7 , 0 1 1 8 0 3 , 2 1 2 9 0 1 2 2 , 1 9 4 3 1 , 5 8 8 , 2 3 2 1 3 6 , 3 5 5 4 3 5 , 6 2 9 , 9 5 4 5 7 7 , 3 3 3 , 6 7 2 8 , 1 7 8 2 1 , 2 3 8 , 2 6 5 6 2 , 4 5 9 , 5 2 5 0 0 3 2 , 4 4 9 , 4 5 6 5 3 , 7 2 5 , 8 9 8 0 3 , 2 1 0 8 4 , 8 1 1 2 0 0 4 1 , n o i t i a c e p e D r r a e Y t n e r r u C f f O - e t i r W l s e a S s t e s s A o t n o i t a c fi i s s a c e R l l e a S r o f l d e H / - fi fi i s s a c e R l o t n o i t a c fi / ) .
D ’ T N O C ( T N E M P I U Q E D N A T N A L P , Y T R E P O R P .

7 1 234 ) .

d ’ t n o C ( F P E .

2 7 1 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 18.
DEFERRED TAX At 1 January Derecognition due to Disposal of Investment Properties Reallocated from Intangible Assets from Completion of Purchase Price Allocation Amount Recognised in Profit or Loss: - Income Tax - Share of Results of Associates and Joint Ventures Amount Recognised in Other Comprehensive Income Foreign Currency Translation Differences At 31 December Deferred Tax Assets: - Settled within 12 Months - Settled more than 12 Months Deferred Tax Liabilities: - Settled within 12 Months - Settled more than 12 Months GROUP 2020 (RM’000) 160,107 (86,026) 2019 (RM’000) 38,928 - - 12,872 32,586 1,639 25,163 4,410 64,250 - 45,589 (1,532) 137,879 160,107 (27) (28,704) (28,731) - (65,235) (65,235) 3,022 163,588 166,610 2,096 223,246 225,342 Note 14.1 31 18.1a 18.1b Deferred Tax Assets and Liabilities are offset when there is a legally enforceable right to set-off current tax assets against current tax liabilities and when the deferred taxes relate to the same authority.
235 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 18.

DEFERRED TAX (CONT’D.)
The components and movements in Deferred Tax Assets and Liabilities during the financial year comprise of the followings: 18.1 DEFERRED TAX ASSETS At 1 January 2019 Adjustments Amount Recognised in Unutilised Tax Losses (RM’000) (1,216) - Financial Assets at Fair Value through Other Comprehensive Income Reserve (RM’000) Property, Plant and Equipment Investment Properties Loans, Advances and Financing Others Total (RM’000) (RM’000) (RM’000) (RM’000) (RM’000) 14,124 (13,873) (500) - - - - - (53,910) (41,502) 13,873 - Profit or Loss (33,231) - (26) (9,903) 4,073 (278) (39,365) Foreign Currency Translation Differences (443) (238) - 84 1 (601) (1,197) At 31 December 2019/ At 1 January 2020 Adjustments Amount Recognised in (34,890) - 13 - (526) (9,819) 4,074 (40,916) (82,064) - - (6,219) 6,219 - Profit or Loss 33,081 (13) (27) 5,918 (4,142) 19,752 54,569 Foreign Currency Translation Differences At 31 December 2020 (431) (2,240) - - - (574) (5) (228) (1,238) (553) (4,475) (6,292) (15,173) (28,733) 236 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 18.
DEFERRED TAX (CONT’D.)
DEFERRED TAX LIABILITIES Unutilised Tax Losses (RM’000) Financial Assets at Fair Value through Other Comprehensive Income Reserve (RM’000) Property, Plant and Equipment Investment Properties Loans, Advances and Financing Others Total (RM’000) (RM’000) (RM’000) (RM’000) (RM’000) At 1 January 2019 Reallocated from Intangible Assets from Completion of Purchase Price Allocation Amount Recognised in Profit or Loss Amount Recognised in Other Comprehensive Income Foreign Currency Translation Differences At 31 December 2019/ At 1 January 2020 Derecognition due to Disposal of Investment Properties Amount Recognised in Profit or Loss Amount Recognised in Other Comprehensive Income Foreign Currency Translation Differences At 31 December 2020 1 - - - - 1 - (1) - - - 3,368 12,214 18,066 41,234 5,547 80,430 - - 45,589 - - - - 12,872 12,872 7,541 84,487 1,656 9,931 103,615 - - - (235) - - - 45,589 (100) (335) 48,957 19,755 102,318 42,890 28,250 242,171 - (86,026) - - (86,026) 5,039 29,840 (16,644) (38,578) (20,344) - - 25,163 - - - 74,120 24,794 - 5,049 51,181 - - - 25,163 599 5,648 26,246 (9,729) 166,612 237 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 18.
DEFERRED TAX (CONT’D.)
18.1a DEFERRED TAX ASSETS Deferred Tax Assets (Before Offsetting) Unutilised Tax Losses Financial Assets at Fair Value through Other Comprehensive Income Reserve Property, Plant and Equipment Investment Properties Loans, Advances and Financing Others Offsetting Deferred Tax Assets (After Offsetting) 18.1b DEFERRED TAX LIABILITIES Deferred Tax Liabilities (Before Offsetting) Unutilised Tax Losses Financial Assets at Fair Value through Other Comprehensive Income GROUP Note 2020 (RM’000) 2019 (RM’000) (2,240) (34,890) - (553) (4,475) (6,292) (15,173) (28,733) 2 (28,731) 13 (526) (9,819) 4,074 (40,916) (82,064) 16,829 (65,235) 18.1 18 GROUP Note 2020 (RM’000) 2019 (RM’000) - 1 Reserve Property, Plant and Equipment Investment Properties Loans, Advances and Financing Others Offsetting 74,120 24,794 51,181 26,246 (9,729) 166,612 (2) 18.1 Deferred Tax Liabilities (After Offsetting) 18 166,610 48,957 19,755 102,318 42,890 28,250 242,171 (16,829) 225,342 238 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 18.
DEFERRED TAX (CONT’D.)
18.2 No deferred tax assets have been recognised in respect of the following items: Unutilised Tax Losses Unabsorbed Capital Allowances Deductible Temporary Differences GROUP 2020 (RM’000) 2019 (RM’000) 730,646 63,319 111,412 905,377 207,465 51,389 52,549 311,403 Deferred Tax Assets Not Recognised at Applicable Tax Rate of 21.61% (2019: 24.00%) 195,630 74,729 Deferred tax assets are not recognised by certain subsidiaries in respect of the above temporary differences as the Group is of the view that it is not probable that sufficient taxable profits will be available to allow utilisation of the deferred tax assets.
The unutilised tax losses amounting to RM730.65 million (2019: RM207.47 million) for which no deferred tax assets are recognised will expire in the following year: Financial Year: 2025 2026 2027 GROUP 2020 (RM’000) 2019 (RM’000) 647,784 15,300 67,562 730,646 188,462 19,003 - 207,465 239 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 19.
PAYABLES AND ACCRUED LIABILITIES 19.1 GROUP Liability on Invocation Cost under Section 50(3) Rent Received in Advance Accruals on Administrative and Miscellaneous Non-Investments Payments Accruals on Investment Payments Note 2020 (RM’000) 2019 (RM’000) - 33 239,063 272,463 19.1a 19.1b 2,634,419 2,114,303 4,987,785 2,791,036 1,765,267 4,828,799 a.
Included in Accruals on Administrative and Miscellaneous Non-Investments Payments is the contract liabilities for advance payments received from customers on contracts for the Group amounting to RM215.43 million (2019: RM223.11 million).

b.
Included in Accruals on Investment Payments is the Allowance for Impairment Losses on commitments and contingencies of the Group that are recognised in accordance with MFRS 9 as per the table below: Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) 44,197 (25,123) 17,978 (4,497) 8,506 8,272 70,681 (21,348) (2,951) 2,951 (367) 714 - 77 - - (714) (1,522) - 168 - 367 - 1,522 (77) (168) - - - - - - 9,416 3,176 66 12,658 (18,566) (13,446) - (8,479) (2,414) (29,459) (77) - 8,976 (2,814) 13,964 (4,547) (2,814) 46,519 19,074 13,481 2020 At 1 January Movement with Profit or Loss Impact 26 Transfers: Transfer from Stage 1 to Stage 2 Transfer from Stage 1 to Stage 3 Transfer from Stage 2 to Stage 1 Transfer from Stage 2 to Stage 3 Transfer from Stage 3 to Stage 1 Transfer from Stage 3 to Stage 2 New Financial Assets Originated or Purchased Derecognised Financial Assets Changes in PDs/LGDs/EADs Write-Off At 31 December 240 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 19.
PAYABLES AND ACCRUED LIABILITIES (CONT’D.)

19.1 GROUP (Cont’d.)

b.

Included in Accruals on Investment Payments is the Allowance for Impairment Losses on commitments and contingencies of the Group that are recognised in accordance with MFRS 9 as per the table below: (Cont’d.)
2019 At 1 January Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) 53,130 36,829 10,453 100,412 Movement with Profit or Loss Impact 26 (8,933) (18,851) (1,947) (29,731) Transfers: Transfer from Stage 1 to Stage 2 Transfer from Stage 1 to Stage 3 Transfer from Stage 2 to Stage 1 Transfer from Stage 2 to Stage 3 Transfer from Stage 3 to Stage 1 Transfer from Stage 3 to Stage 2 New Financial Assets Originated or Purchased Derecognised Financial Assets Changes in PDs/LGDs/EADs Write-Off At 31 December (4,914) (798) 2,357 - 2,583 4,914 - (2,357) (4,814) - 798 - 4,814 - (2,583) - 349 (349) - - - - - - 25,153 (12,511) 1,791 (6,126) 426 (815) 27,370 (19,452) (20,803) (12,608) (4,238) (37,649) - - - - 44,197 17,978 8,506 70,681 The maturity structure of Payables and Accrued Liabilities are as follows: Maturing within 12 Months Maturing after 12 Months 2020 (RM’000) 2019 (RM’000) 4,467,802 4,368,926 519,983 459,873 4,987,785 4,828,799 241 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 19.
PAYABLES AND ACCRUED LIABILITIES (CONT’D.)
19.2 EPF Liability on Invocation Cost under Section 50(3) Rent Received in Advance Accruals on Administrative and Miscellaneous Non-Investments Payments Accruals on Investment Payments Amount Owing to Subsidiaries The maturity structure of Payables and Accrued Liabilities are as follows: Maturing within 12 Months Maturing after 12 Months 2020 (RM’000) - 3,575 402,743 2019 (RM’000) 33 3,608 357,481 1,803,884 1,563,359 23,614 118,548 2,233,816 2,043,029 2020 (RM’000) 2019 (RM’000) 2,174,170 1,986,053 59,646 56,976 2,233,816 2,043,029 242 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 20.
DEPOSITS AND ADVANCES 20.1 GROUP Employers Instalment Remittance Suspense Deposits on Office Rentals Customers Deposits Transit for Late Processing of Contributions Deposits on Sales of Property Miscellaneous The maturity structure of the Deposits and Advances are as follows: Maturing within 12 Months Maturing after 12 Months 20.2 EPF Employers Instalment Remittance Suspense Deposits on Office Rentals Transit for Late Processing of Contributions Deposits on Sales of Property Miscellaneous Rental Deposit Owing to Subsidiaries The maturity structure of the Deposits and Advances are as follows: Maturing within 12 Months Maturing after 12 Months 2020 (RM’000) 2019 (RM’000) 51,808 64,936 24,331 59,706 43,683 25,814 32,603,608 34,083,368 237,343 - 1,813 154,197 29,243 2,195 32,983,839 34,398,206 2020 (RM’000) 2019 (RM’000) 29,696,141 30,599,018 3,287,698 3,799,188 32,983,839 34,398,206 2020 (RM’000) 2019 (RM’000) 51,808 64,936 8,734 237,343 - 1,287 17 59,706 43,683 8,836 154,197 29,243 1,390 96 364,125 297,151 2020 (RM’000) 354,122 10,003 364,125 2019 (RM’000) 288,085 9,066 297,151 243 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 21.
LOANS AND OVERDRAFTS Bank Borrowings and Overdrafts Recourse Obligations on Loan Sold to Cagamas Other Borrowings The maturity structure of Loans and Overdrafts are as follows: Maturing within 12 Months Maturing after 12 Months GROUP 2020 (RM’000) 2019 (RM’000) 15,567,842 13,804,658 2,262,531 1,644,440 2,481,251 1,840,771 19,474,813 18,126,680 GROUP 2020 (RM’000) 2019 (RM’000) 3,003,936 4,006,987 16,470,877 14,119,693 19,474,813 18,126,680 The followings are details in respect of significant loans by the Group as reported in the Statement of Financial Position: 21.1 Existing Bank Borrowings a.
On 31 December 2015, a global subsidiary entered into a Senior Term Loan Facility Agreement with Standard Chartered Bank amounting to GBP540.00 million (RM3,438.61 million).

In December 2020, this loan was refinanced to GBP800.00 million (RM4,351.52 million).

The loan is repayable after five (5) years and is secured against the subsidiary’s investment properties.

The loan carries interest at LIBOR rate plus 1%.

b.
b.

On 30 March 2016, a global subsidiary entered into a finance agreement with Citigroup Global Markets Asia Limited for GBP145.00 million (RM821.15 million).

The loan is repayable after five (5) years and is secured by a charge over the global subsidiary’s investment properties.

The loan carries interest at the rate of one (1) month GBP LIBOR plus 0.88% and other mandatory costs, if any.
c. On 30 November 2016, a global subsidiary entered into a finance agreement with Standard Chartered Bank for GBP259.00 million (RM1,444.88 million).

The loan is repayable five (5) years from the date it was granted and is secured on the subsidiary’s investment properties.

The loan carries interest at the rate of one (1) month GBP LIBOR plus 1.02% and other mandatory costs, if any.
d. On 3 July 2017, three (3) global subsidiaries entered into a loan facility agreement with The Hongkong and Shanghai Banking Corporation Limited for EUR268.20 million (RM1,311.71 million).

The facility was fully drawn as at 31 December 2018.

The interest rate in effect is six (6) month Euribor plus a margin of 0.82%.

This facility expires five (5) years after utilisation.
244 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 21.

LOANS AND OVERDRAFTS (CONT’D.)

21.1 Existing Bank Borrowings (Cont’d.)

e. On 2 October 2018, a global subsidiary entered into a Senior Term Loan Facility Agreement with Standard Chartered Bank amounting to GBP282.40 million (RM1,532.08 million) which was drawn on 8 October 2018.
The loan is repayable after five (5) years and is secured by a charge over three (3) of the subsidiary’s investment properties.

The loan carries interest at the rate of three (3) month GBP LIBOR plus 0.84%.

f. On 31 July 2019, three (3) global subsidiaries entered into a loan facility agreement with Standard Chartered Bank for EUR328.00 million (RM1,509.55 million).

As at 31 December 2019, the facility was fully drawn.

The interest rate in effect is three (3) month Euribor plus a margin of 0.75%.
This facility expires five (5) years after utilisation.

21.2 Approved Bank Borrowings during The Financial Year a.

On 4 December 2020, a global subsidiary entered into a single currency term facility agreement with Oversea-Chinese Banking Corporation Limited, of which GBP186.20 million (RM1,014.51 million) was drawn on 4 December 2020.

The loan is repayable after seven (7) years and is secured by the global subsidiary’s investment properties.
The loan carries interest at the rate of three (3) month GBP LIBOR and other mandatory costs.

Bank borrowings that are secured by Group’s Investment Properties are not to be pledged as securities for other borrowings or to be disposed to another entity.
The table below shows reconciliation of Group’s Loans and Overdrafts arising from financing activities and are classified in the Group’s consolidated cash flows as cash flows from financing activities: At 1 January Cash Flow’s Changes from Operating Activities: Interest Paid Cash Flow’s Changes from Financing Activities: Proceeds from Borrowings Repayments of Borrowings Non-Cash Changes: Accrued Interest Amortisation of Loan Acquisition Costs Foreign Currency Translation Differences At 31 December GROUP 2020 (RM’000) 2019 (RM’000) 18,126,680 15,827,980 (294,987) (299,107) 5,405,425 3,899,417 (4,577,897) (1,799,705) 286,906 19,959 508,727 364,242 9,353 124,500 19,474,813 18,126,680 245 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 22.
EMPLOYEE BENEFITS GROUP AND EPF Post- Retirement Medical Benefit (RM’000) Post- Retirement Gratuity (RM’000) Note Total (RM’000) At 1 January 2019 26,025 295,785 321,810 Provisions Made during the Financial Year Recognised in the Profit or Loss Benefits Paid during the Year At 31 December 2019/At 1 January 2020 Provisions Made during the Financial Year Recognised in the Profit or Loss Gain from Actuarial Valuation on Employee Benefits Plan Recognised as Other Comprehensive Income 29 29 Benefits Paid during the Year At 31 December 2020 The maturity structure of Employee Benefits are as follows: 6,471 (8,082) 24,414 31,707 (5,792) 321,700 38,178 (13,874) 346,114 9,552 28,057 37,609 (1,672) (7,889) 24,405 (1,990) (6,948) 340,819 (3,662) (14,837) 365,224 Maturing within 12 Months Maturing after 12 Months 22.1 Post-Retirement Medical Benefit a.
The movements of present value in the unfunded obligations are as follows: At 1 January Current Service Cost Interest Cost Benefits Paid during the Year Net Actuarial Gain At 31 December 246 GROUP AND EPF 2020 (RM’000) 14,970 350,254 365,224 2019 (RM’000) 12,259 333,855 346,114 GROUP AND EPF 2020 (RM’000) 2019 (RM’000) 24,414 8,899 653 (7,889) (1,672) 24,405 26,025 6,011 460 (8,082) - 24,414 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 22.
EMPLOYEE BENEFITS (CONT’D.)

22.1 Post-Retirement Medical Benefit (Cont’d.)

b.
The amounts in the Statements of Financial Position are as follows: Present Value of Unfunded Obligations Net Liabilities as at 31 December GROUP AND EPF 2020 (RM’000) 2019 (RM’000) 24,405 24,405 24,414 24,414 c. The amounts recognised in the Profit or Loss and Other Comprehensive Income are as follows: Current Service Cost Interest Cost Total Post-Retirement Costs Recognised in the Profit or Loss Net Actuarial Gain Total Post-Retirement Costs Recognised in Other Comprehensive Income Total Post-Retirement Costs Recognised in the Profit or Loss and Other GROUP AND EPF 2020 (RM’000) 2019 (RM’000) 8,899 653 9,552 (1,672) (1,672) 6,011 460 6,471 - - Comprehensive Income 7,880 6,471 d. The amounts in the Statements of Financial Position are reconciled as follows: Present Value of Unfunded Obligations Total Post-Retirement Costs Recognised in the Profit or Loss and Other Comprehensive Income Benefits Paid during the Year Net Liabilities as at 31 December GROUP AND EPF 2020 (RM’000) 2019 (RM’000) 24,414 26,025 7,880 (7,889) 24,405 6,471 (8,082) 24,414 247 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 22.
EMPLOYEE BENEFITS (CONT’D.)

22.1 Post-Retirement Medical Benefit (Cont’d.)
e. The principal actuarial assumptions used were as follows: Discount Rate (%) Medical Cost Inflation Rate (%): Inflation Rate Outpatient Inpatient Average Life Expectancy Rate (Years): Male Female GROUP AND EPF 2020 3.15 - 2.90 0.60 80 87 2019 4.00 2.00 - - 87 91 f. The sensitivity analysis below have been determined based on a method that extrapolates reasonable changes in key assumptions occurring at the Statements of Financial Position, holding other assumptions are constant: Benefit Obligations as at 31 December Discount Rate (1% Movement) Average Life Expectancy (1 Year Movement) Benefit Obligations as at 31 December Discount Rate (1% Movement) Average Life Expectancy (1 Year Movement) (RM’000) 24,405 (RM’000) 24,414 GROUP AND EPF 2020 Increase (+) (RM’000) Decrease (-) (RM’000) (1,499) 253 1,709 (428) GROUP AND EPF 2019 Increase (+) (RM’000) Decrease (-) (RM’000) (2,436) 506 2,884 (551) Although the analysis does not account for full cash distribution expected under the plan, it does provide approximation of sensitivity assumptions used.
248 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 22.

EMPLOYEE BENEFITS (CONT’D.)

22.2 Post-Retirement Gratuity a.

The movements of present value in the unfunded obligations are as follows: At 1 January Current Service Cost Interest Cost Benefits Paid during the Year Net Actuarial Gain At 31 December b.
The amounts recognised in the Statements of Financial Position are as follows: Present Value of Unfunded Obligations Net Liabilities as at 31 December GROUP AND EPF 2020 (RM’000) 2019 (RM’000) 321,700 295,785 17,923 10,134 (6,948) (1,990) 17,653 14,054 (5,792) - 340,819 321,700 GROUP AND EPF 2020 (RM’000) 340,819 340,819 2019 (RM’000) 321,700 321,700 c. The amounts recognised in the Profit or Loss and Other Comprehensive Income are as follows: Current Service Cost Interest Cost Total Post-Retirement Costs Recognised in the Profit or Loss Net Actuarial Gain Total Post-Retirement Costs Recognised in Other Comprehensive Income Total Post-Retirement Costs Recognised in the Profit or Loss and Other GROUP AND EPF 2020 (RM’000) 2019 (RM’000) 17,923 10,134 28,057 (1,990) (1,990) 17,653 14,054 31,707 - - Comprehensive Income 26,067 31,707 249 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 22.
EMPLOYEE BENEFITS (CONT’D.)

22.2 Post-Retirement Gratuity (Cont’d.)
d. The amounts in the Statements of Financial Position are reconciled as follows: Present Value of Unfunded Obligations Total Post-Retirement Costs Recognised in the Profit or Loss and Other Comprehensive Income Benefits Paid during the Year Net Liabilities as at 31 December e. The principal actuarial assumptions used were as follows: Discount Rate Annual Salary Increment Rate Salary Adjustment Rate GROUP AND EPF 2020 (RM’000) 2019 (RM’000) 321,700 295,785 26,067 (6,948) 340,819 31,707 (5,792) 321,700 GROUP AND EPF 2020 (%) 3.15 5.00 8.00 2019 (%) 4.00 5.80 8.50 f. The sensitivity analysis below have been determined based on a method that extrapolates reasonable changes during the actuarial valuation at the Statements of Financial Position, holding other assumptions are constant: Benefit Obligations as at 31 December Discount Rate (1% Movement) Annual Salary Increment Rate (1% Movement) Benefit Obligations as at 31 December Discount Rate (1% Movement) Annual Salary Increment Rate (1% Movement) (RM’000) 340,819 (RM’000) 321,700 GROUP AND EPF 2020 Increase (+) (RM’000) Decrease (-) (RM’000) (35,906) 63 42,673 (126) GROUP AND EPF 2019 Increase (+) (RM’000) Decrease (-) (RM’000) (32,339) 1,900 38,238 (2,908) Although the analysis does not account for full cash distribution expected under the plan, it does provide approximation of sensitivity assumptions used.
250 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 23.
NET ASSETS ATTRIBUTABLE TO MEMBERS GROUP EPF 31 DECEMBER 2020 (RM’000) 31 DECEMBER 2019 (RM’000) 31 DECEMBER 2020 (RM’000) 31 DECEMBER 2019 (RM’000) Note Allocated to Members Contributions 23.1 984,351,995 916,586,744 984,351,995 916,586,744 Unallocated to Members Cumulative Surplus and Reserves: 23a Cumulative Surplus Financial Assets at Fair Value through 23.2 10,346,927 3,307,359 8,961,381 1,588,754 Other Comprehensive Income Reserve 23.3 23.4 Other Reserves Net Assets Attributable to Members 9,195,216 (690,591) 18,851,552 1,003,203,547 8,112,928 284,457 11,704,744 928,291,488 6,684,609 6,706,588 - - 15,645,990 999,997,985 8,295,342 924,882,086 a.
The entire profit after taxation and zakat and other comprehensive income/(loss) are attributed to EPF members.

The increase in Net Assets Attributable to Members amounted to RM55.26 billion (2019: RM61.75 billion).

Meanwhile, Cumulative Surplus amounting to RM10.35 billion (2019: RM3.31 billion) and RM8.96 billion (2019: RM1.59 billion) for Group and EPF respectively are the amounts yet to be allocated to EPF members’ Contribution Accounts as at the date of Statement of Financial Position.
The amount unallocated to EPF members as at the date of Statement of Financial Position also comprise of Financial Assets at Fair Value through Other Comprehensive Income Reserve and Other Reserves.

The allocation of these Cumulative Surplus and Reserves to EPF members will be by way of distributions which are subject to approval by the EPF Board and the Minister as per Section 27 of the EPF Act 1991.
The Financial Assets at Fair Value through Other Comprehensive Income Reserve is only distributable upon realisation of gains from the disposals of Financial Assets at Fair Value through Other Comprehensive Income based on EPF’s investment strategy.
The maturity structure of the Net Assets Attributable to Members are as follows: Maturing within 12 Months Maturing after 12 Months GROUP EPF 31 DECEMBER 2020 (RM’000) 31 DECEMBER 2019 (RM’000) 31 DECEMBER 2020 (RM’000) 31 DECEMBER 2019 (RM’000) 247,294,781 755,908,766 1,003,203,547 207,503,537 720,787,951 928,291,488 247,294,781 752,703,204 999,997,985 207,503,537 717,378,549 924,882,086 Amount maturing within 12 months comprise of balances which are eligible to be withdrawn by members aged 50, 55, 60, members who have portion of their contribution balances exceeding RM1 million in accordance with EPF Act 1991 and members who have the remaining payments under i-Lestari facility.
The comparative disclosure for financial year ended 31 December 2019 have been revised to conform with the current year presentation.

251 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 23.

NET ASSETS ATTRIBUTABLE TO MEMBERS (CONT’D.)
23.1 CONTRIBUTIONS GROUP AND EPF 2020 (RM’000) 2019 (RM’000) Note At 1 January Contribution Received and Adjustments Contribution Received from Employers Redemption of Investment in Unit Trusts Redemption/Cancellation of Annuity Scheme Reinstatement/Adjustment Dividend Distributions to Members Dividend Credited: SK - 5.20% (2019: 5.45%) & SS - 4.90% (2019: 5.00%) Adjustments on Prior Year Dividends 23.2 Less: Contribution Withdrawals and Refunds Contribution Withdrawals 55 Years Withdrawal Scheme 50 Years Withdrawal Scheme 60 Years Withdrawal Scheme Incapacitation Withdrawal Scheme Leaving Country Withdrawal Scheme Housing Withdrawal Scheme Reduction/Redemption of Housing Loan/Monthly Housing Loan Withdrawal Scheme Medical Withdrawal Scheme Death Withdrawal Scheme Periodical Payment Withdrawal Scheme Member Investment Withdrawal Scheme Pensionable Employee Withdrawal Scheme Education Withdrawal Scheme Monthly Payment Withdrawal Scheme Saving Exceeding RM1 Million Withdrawal Scheme Hajj Withdrawal Scheme i-Lestari Withdrawal Scheme Refunds Refund to Employers/Members - Rule 33(1), EPF Regulations & Rules 1991 Refund of Employers Share to Pension Trust Fund - Section 56, EPF Act 1991 Other Adjustment Adjustments on Contributions with Incomplete Information (CTML) and Reject As at 31 December 916,586,744 839,642,921 70,886,010 7,465,468 42,631 20,633 78,414,742 72,807,907 3,051,912 54,348 13,911 75,928,078 47,642,286 6,020 47,648,306 45,817,417 5,463 45,822,880 15,582,812 4,406,029 4,803,202 312,852 298,545
- 44,583,241 10,145 27,389 154,425 164,570 58,294,497 192,764 220,153 44,803,394 3,300 984,351,995 3,741 916,586,744 252 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 23.
NET ASSETS ATTRIBUTABLE TO MEMBERS (CONT’D.)

23.1 CONTRIBUTIONS (Cont’d.)

Members’ Assets/Contributions with Fund Manager Institutions The cumulative amount invested by the EPF members with the approved Fund Management Institutions are not disclosed in the Statements of Financial Position as the risk and reward of the investment is borne by the members.
23.2 CUMULATIVE SURPLUS At 1 January Adjustment on Employee Benefits for the Financial Year Profit Attributable to Members Net Realised Gain on Investment in Equity Instruments at Fair Value GROUP Note 2020 (RM’000) 2019 (RM’000) 3,307,359 3,264,454 3,662 - 41,981,424 35,673,812 through Other Comprehensive Income 7.1a 17,675,854 11,705,457 Tax Paid on Global Investments (54,085) (118,305) Shariah Non-Compliant Income from Excess Gain on Securities which had been Reclassified from Shariah to Conventional Dividend on Contribution Withdrawals and Adjustment on Dividend 32.4 10,831 1,592 for Prior Year (265,540) (300,157) Cost Write Down on Listed Equities 23.3 (7,706,584) (1,146,419) Transfer of Cumulative Net Unrealised Gain on Financial Asset at Fair Value through Other Comprehensive Income to Cumulative Surplus Dividend Credited: SK - 5.20% (2019: 5.45%) & SS - 4.90% (2019: 5.00%) Movement between Reserves Share of Other Comprehensive Income from Associates and Joint Ventures Net Asset Movement from Changes in Equity Holdings in Subsidiaries 23.3 23.1 2,692,985 - (47,642,286) (45,817,417) 301,394 8,643 998 40,915 1,830 33,869 At 31 December 23 10,346,927 3,307,359 253 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 23.
NET ASSETS ATTRIBUTABLE TO MEMBERS (CONT’D.)

23.2 CUMULATIVE SURPLUS (Cont’d.)
At 1 January Adjustment on Employee Benefits for the Financial Year Profit Attributable to Members Net Realised Gain on Investment in Equity Instruments at Fair Value EPF Note 2020 (RM’000) 2019 (RM’000) 1,588,754 487,718 3,662 - 42,867,733 36,776,285 through Other Comprehensive Income 7.2a 17,465,911 11,705,457 Tax Paid on Global Investments (54,085) (118,305) Shariah Non-Compliant Income from Excess Gain on Securities which had been Reclassified from Shariah to Conventional Dividend on Contribution Withdrawals and Adjustment on Dividend 32.4 10,831 1,592 for Prior Year (265,540) (300,157) Cost Write Down on Listed Equities 23.3 (7,706,584) (1,146,419) Transfer of Cumulative Net Unrealised Gain on Financial Asset at Fair Value through Other Comprehensive Income to Cumulative Surplus Dividend Credited: SK - 5.20% (2019: 5.45%) & SS - 4.90% (2019: 5.00%) At 31 December 23.3 23.1 23 2,692,985 - (47,642,286) (45,817,417) 8,961,381 1,588,754 Included in the closing balance of the Group and EPF’s Cumulative Surplus is net unrealised gain generated from the revaluation of Financial Assets at Fair Value through Profit or Loss and the movement of foreign exchange revaluation of financial assets amounting to RM4,746.23 million (2019: RM1,122.75 million).
These unrealised gains will only be reclassified as net realised gain upon sale or maturity of the assets for the purpose of dividend distributions in the following years.

During the year, unrealised fair value losses amounting to RM7,706.58 million (2019: RM1,146.42 million) was transferred from Financial Assets at Fair Value through Other Comprehensive Income Reserve to Cumulative Surplus due to Cost Write Down on Listed Equity policy as explained in Note 2.1d (iv) under Estimates and Assumptions.
254 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 23.

NET ASSETS ATTRIBUTABLE TO MEMBERS (CONT’D.)

23.2 CUMULATIVE SURPLUS (Cont’d.)
The closing balance of EPF’s Cumulative Surplus as stated above has taken into account the provision for annual dividend as follows: Provision for Annual Dividend: Simpanan Konvensional - 5.20% (2019: 5.45%) Simpanan Shariah - 4.90% (2019: 5.00%) Total Provision for Annual Dividend EPF 2020 (RM’000) 2019 (RM’000) 42,878,847 41,676,701 4,763,439 4,140,716 47,642,286 45,817,417 Note 32.2 32.2 23.1 Dividend rate declared for Simpanan Konvensional and Simpanan Shariah is based on the actual financial performance of these two saving funds during the financial year under review after taking into account the EPF’s accounting policy as approved by the Board consistently.
23.3 FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME RESERVE At 1 January GROUP Note 2020 (RM’000) 2019 (RM’000) 8,112,928 (7,250,428) Changes in Fair Value of Debt Instruments at Fair Value through Other Comprehensive Income Reclassified to Profit or Loss on Disposal (4,638,069) (108,524) Net Changes in Loss Allowance on Investment in Debt Instruments at Fair Value through Other Comprehensive Income 166,615 (14,264) Net Unrealised Gain on Fair Value Revaluation on Investment in Debt Instruments at Fair Value through Other Comprehensive Income Net Unrealised (Loss)/Gain on Fair Value Revaluation on Investment in Equity Instruments at Fair Value through Other Comprehensive Income Transfer of Cumulative Net Unrealised Gain on Financial Asset at Fair Value through Other Comprehensive Income to Cumulative Surplus Cost Write Down on Listed Equities Movement between Reserves 5,491,267 3,632,781 (5,176,578) 10,310,879 23.2 23.2 (2,692,985) - 7,706,584 1,146,419 (828) - Share of Other Comprehensive Income from Associates and Joint Ventures Net Asset Movement from Changes in Equity Holdings in Subsidiaries 224,872 1,410 395,861 204 At 31 December 23 9,195,216 8,112,928 255 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 23.
NET ASSETS ATTRIBUTABLE TO MEMBERS (CONT’D.)

23.3 FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME RESERVE (Cont’d.)
EPF Note 2020 (RM’000) 2019 (RM’000) At 1 January 6,706,588 (7,820,233) Changes in Fair Value of Debt Instruments at Fair Value through Other Comprehensive Income Reclassified to Profit or Loss on Disposal (4,690,174) (201,610) Net Changes in Loss Allowance on Investment in Debt Instruments at Fair Value through Other Comprehensive Income 166,612 (14,088) Net Unrealised Gain on Fair Value Revaluation on Investment in Debt Instruments at Fair Value through Other Comprehensive Income Net Unrealised (Loss)/Gain on Fair Value Revaluation on Investment in Equity Instruments at Fair Value through Other Comprehensive Income Transfer of Cumulative Net Unrealised Gain on Financial Asset at Fair Value through Other Comprehensive Income to Cumulative Surplus Cost Write Down on Listed Equities At 31 December 5,494,770 3,633,635 (6,006,786) 9,962,465 23.2 23.2 23 (2,692,985) 7,706,584 6,684,609 - 1,146,419 6,706,588 Changes in Financial Assets at Fair Value through Other Comprehensive Income Reserve arises from the movement in accumulated net unrealised fair value gain/(loss) of Financial Assets at Fair Value through Other Comprehensive Income.
During the year, a sum of RM7,706.58 million (2019: RM1,146.42 million) was transferred from Financial Assets at Fair Value through Other Comprehensive Income Reserve to Cumulative Surplus based on the policy on Cost Write Down on Listed Equity as explained in Note 2.1d (iv) under Estimates and Assumptions.
The closing balance of Financial Assets at Fair Value through Other Comprehensive Income Reserve represents the net position after taking into account the transfer of cumulative net realised gain arising from disposal of Financial Assets at Fair Value through Other Comprehensive Income from Financial Assets at Fair value through Other Comprehensive Income Reserve to Cumulative Surplus amounting to RM17.68 billion (2019: RM11.71 billion) and RM17.46 billion (2019: RM11.71 billion) for the Group and EPF respectively.
Included in Group’s and EPF’s closing balance of Financial Assets at Fair Value through Other Comprehensive Income Reserve in the year 2020 is loss allowance on investment in debt instrument classified as Financial Assets at Fair Value through Other Comprehensive Income amounting to RM285.22 million (2019: RM118.60 million) and RM285.39 million (2019: RM118.78 million) respectively.
256 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 23.

NET ASSETS ATTRIBUTABLE TO MEMBERS (CONT’D.)

23.4 OTHER RESERVES Cash Flow Hedging Reserve Foreign Currency Translation Reserve Other Reserves GROUP 2020 (RM’000) (120,890) (187,851) (381,850) (690,591) 2019 (RM’000) (74,287) 740,401 (381,657) 284,457 Note 23.4a 23.4b 23.4c 23 a.
Cash Flow Hedging Reserve represents the movement of net accumulated gain/(loss) arising from the effective portion of gain/(loss) on hedging instruments in a cash flow hedge.

b.

Foreign Currency Translation Reserve relates to exchange differences arising from the translation of foreign operations that have a functional currency different from the presentation currency of EPF (Ringgit Malaysia - RM).
c. Included in the Other Reserves is Regulatory Reserve arising from the share of other comprehensive income in an associate.

257 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 24.
GROSS INVESTMENT INCOME Interest and Profit from Investments: Loans, Advances and Financing Financial Assets at Fair Value through Profit or Loss Financial Assets at Fair Value through Other Comprehensive Income Investment Assets at Amortised Cost Dividend from Investments: Financial Assets at Fair Value through Profit or Loss Financial Assets at Fair Value through Other Comprehensive Income Investment in Subsidiaries, Associates & Joint Ventures Capital Gain/(Loss) from Investments: Financial Assets at Fair Value through Profit or Loss Debt Instruments at Fair Value through Other Comprehensive Income Investment Assets at Amortised Cost Investment in Subsidiaries, Associates & Joint Ventures Rental Income Net (Loss)/Gain on Foreign Exchange - Realised - Unrealised Net Gain from Financial Assets at Fair Value through Profit or Loss - Realised - Unrealised Interest/Profit on Bank Balances Gain on Disposal of Investment Properties Miscellaneous Note 24a GROUP 2020 (RM’000) 2019 (RM’000) EPF 2020 (RM’000) 2019 (RM’000) (196,352) (76,293) 3,026,270 1,375,028 45,830 5,440,911 1,353,933 604,519 12,886 2,300,685 2,826,721 1,375,028 1,150,126 5,155,523
 1,295,341 604,519 1,305,592 3,129,159 40,113,329 37,820,667 39,276,650 37,138,192 1,781,857 1,762,387 103,983 110,584 (801,476) 606,544 (225,987) (776,904) (833,811) 481,074 (241,802) (178,327) 2,609,214 4,727,381 1,868 143,262 31,747 49,213,726 1,044,019 1,599,256 10,731 - 28,608 41,262,777 2,609,214 4,265,160 345 52,497 29,196 45,984,308 1,044,019 1,301,073 5,374 - 18,443 39,197,556 258 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 24.
GROSS INVESTMENT INCOME (CONT’D.)

GROUP EPF 2020 (RM’000) 2019 (RM’000) 2020 (RM’000) 2019 (RM’000) Internally Managed Externally Managed 33,340,199 33,227,774 34,052,281 32,157,793 6,773,130 4,592,893 5,224,369 4,980,399 Total Interest and Profit, Dividend and Capital Gain 40,113,329 37,820,667 39,276,650 37,138,192 a.
Interest and Profit from Investments derived from the Group and EPF’s investments on fixed income instruments include net accretion of discount and amortisation of premium using the effective yield method.

25.
INVESTMENT EXPENDITURES External Fund Managers Fees Custodian Fees Investment Technical Services Interest on Bank Borrowings and Overdrafts Withholding Tax on Global Investments Performance Fees Miscellaneous GROUP EPF 2020 (RM’000) 2019 (RM’000) 2020 (RM’000) 2019 (RM’000) 444,771 63,996 43,033 283,194 628,511 144,298 25,067 383,435 56,512 31,285 154,776 644,030 218,470 40,544 372,303 63,996 46,624 - 610,942 - 4,520 309,603 56,512 36,158 - 610,164 28,608 23,359 1,632,870 1,529,052 1,098,385 1,064,404 259 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 26.
NET IMPAIRMENT ON FINANCIAL INVESTMENT ASSETS GROUP EPF Note 2020 (RM’000) 2019 (RM’000) 2020 (RM’000) 2019 (RM’000) Impairment on Deposits with Financial Institutions (335) (448) (458) (1,574) Write-back of Impairment on Deposits with Financial Institutions 649 314 613 165 1,088 630 Impairment on Rent Receivables (15,189) (3,242) (15,062) Write-back of Impairment on Rent Receivables 1,510 3,222 1,510 (13,679) (20) (13,552) 955 (619) (3,242) 3,222 (20) Impairment on Loans, Advances and Financing (404,528) (95,838) (16,215) (24) Write-back of Impairment on Loans, Advances and Financing 8,722 15,192 105 (395,806) (80,646) (16,110) 24,665 24,641 Impairment on Financial Assets at Fair Value through Other Comprehensive Income (186,572) (48,143) (186,623) (48,312) Write-back of Impairment on Financial Assets at Fair Value through Other Comprehensive Income 2,251 34,690 2,241 34,691 (184,321) (13,453) (184,382) (13,621) Impairment on Investment Assets at Amortised Cost (192,415) (73,581) (198,462) (73,538) Write-back of Impairment on Investment Assets at Amortised Cost 5,176 5,730 5,261 12,258 (187,239) (67,851) (193,201) (61,280) Write-back of Impairment on Commitments and Contingencies 19 21,348 29,731 - - (759,383) (132,074) (406,615) (50,899) 260 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 27.
NET (IMPAIRMENT)/WRITE-BACK OF IMPAIRMENT ON INVESTMENT IN SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES GROUP EPF Note 2020 (RM’000) 2019 (RM’000) 2020 (RM’000) 2019 (RM’000) Write-back of Impairment on Investment in Joint Ventures 950 622 - - Impairment on Investment in Associates 27a (148,218) (89) (235,754) (18,014) Write-back of Impairment on Investment in Associates Impairment on Investment in Subsidiaries Write-back of Impairment on Investment in Subsidiaries - (148,218) 4,549 4,460 - - - - - - - - (235,754) (18,014) (47,410) (34,784) 53,851 6,441 14,916 (19,868) (147,268) 5,082 (229,313) (37,882) a.
During the financial year, the Group and EPF have impaired some of its Investment in Associates within the Group and EPF as the associates have incurred higher losses during the financial year caused by the COVID-19.

The assessment was performed based on selected suitable valuation techniques depending on the nature of the associate’s business as disclosed in Note 2.1d.

28.
OTHER INCOME GROUP EPF Note 2020 (RM’000) 2019 (RM’000) 2020 (RM’000) 2019 (RM’000) Interest/Profit from Staff Loans Dividend on Arrears of Contribution 8,845 28,161 8,602 32,532 8,845 28,161 8,602 32,532 Gain/(Loss) on Disposal: - Foreclosed Properties - Assets Held for Sale - Inventories - Right-of-Use Assets - Property, Plant and Equipment Service Charges Shariah Non-Compliant Income 32.4 Penalty Fees Miscellaneous (9,097) 33,010 (1,749) 24 859 60,978 26,298 16,075 17,368 7,109 (4) - (3,938) (842) 87,904 40,321 20,073 47,579 - 111 - 24 - 44,565 26,299 36 8,687 - - - - (842) 65,251 40,337 62 24,976 180,772 239,336 116,728 170,918 261 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 29.
OPERATING EXPENDITURES Salaries, Allowances and Staff Costs Employee Benefits Allowances/Fees for Board of Directors and Investment Panel Allowances/Fees for Directors of Subsidiaries Technical Services GROUP EPF 2020 (RM’000) 2019 (RM’000) 2020 (RM’000) 2019 (RM’000) 1,368,759 1,281,694 1,076,762 1,031,466 37,609 38,178 37,609 38,178 Note 29a 22 3,212 5,784 2,941 4,007 3,212 2,941 - - 26,064 23,653 24,482 21,030 Interest on Customers Deposits and Other Borrowings 1,234,291 1,617,561 - - Fees and Professional Charges 500,933 638,025 41,991 29,012 Audit Fees Repairs and Maintenance Postal and Telephone Charges Rent and Assessments Travelling and Transportation Printing and Stationeries Advertisements and Publishing Non-Capitalised Renovation Expenses Insurance Amortisation of Intangible Assets Depreciation of Investment Properties Depreciation of Right-of-Use Assets Depreciation of Property, Plant and Equipment Net Impairment/(Write-back) of Impairment on Other Receivables Net Impairment on Assets Held for Sale Net Impairment/(Write-back) of Impairment on Investment Properties Write-back of Impairment on Property, Plant and Equipment Profit Expense on Lease Liabilities Write-offs Modification Loss Miscellaneous 262 14 15 16a 17 12 15 17 16b 72,225
1,566 12,240 35,292 9,336 49,693 151,957 72,225 2,986 - (171) 2,986 213,904 (8,334) 13,464 762 88,642 17,908 5,784 12,887 5,263 6,212 685 1,568 12,782 35,581 8,534 39,503 (161) - - - 2,468 59 - (30,240) 15,385 53,991 - 12,228 115 - - 4,143 117 - 29b 504,750 9,783 16,024 2,999 6,850 5,005,329 4,394,852 1,435,436 1,367,954 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 29.
OPERATING EXPENDITURES (CONT’D.)

a.

Included in Salaries, Allowances and Staff Costs is EPF contribution expenditures amounting to RM164.31 million (2019: RM153.95 million).

b.

During the financial year, a subsidiary of EPF, MBSB Group granted moratorium on loans, financing and advances to eligible individuals, SMEs and Corporates following BNM announcements to ease the cash flows of those affected by COVID-19.
This offer was applicable to performing loans and financing, denominated in Malaysian Ringgit, and have not been in arrears for more than 90 days upon granting the loans, financing and advances moratorium.

As a result of the moratorium on loans, financing and advances, the Group recognised loss on modification of cash flows arising from difference of the gross carrying amount recalculated at the present value of the modified contractual cash flows.
The Group’s loss on modification of cash flows following the high exposure to fixed rate personal financing mainly at the banking subsidiary, MBSB Bank.

The moratorium on loans, financing and advances does not automatically result in stage transfer under MFRS 9.

Meanwhile, no modification was made for loans granted by EPF.

30.
STATUTORY CHARGES Invocation Cost - Section 50(3) Death Benefit - Section 58(1) Incapacitation Benefit - Section 58(2) Note 30a 30b 30b GROUP AND EPF 2020 (RM’000) 2019 (RM’000) 9,549 50,775 3,230 63,554 10,420 55,465 5,165 71,050 Statutory charges are costs borne by EPF in accordance with EPF Act 1991 as follows: a. Invocation Cost (Under Section 50(3)) Invocation Cost under Section 50(3), EPF Act 1991, is for the purpose of crediting employee’s contribution which has been deducted from the employee’s salary as well as dividend attributable on the said contribution should the employer fails to pay such contribution to EPF.
b.

Death Benefit (Under Section 58(1)) and Incapacitation Benefit (Under Section 58(2)) Death Benefit and Incapacitation Benefit are provided for under Section 58(1) and 58(2) of the EPF Act 1991 respectively where additional payment is made to the member or next of kin upon withdrawals made under death and Incapacitation schemes.

This additional payment is not paid out of member’s credits.
263 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 31.
TAX AND ZAKAT Malaysian Income Tax Foreign Tax Under/(Over) Provision of Previous Years: - Malaysian Income Tax - Foreign Tax Note Deferred Tax Recognised in the Financial Year 18 Tax Expenses for the Financial Year Zakat GROUP 2020 (RM’000) 133,527 121,799 255,326 54,663 5,491 60,154 32,586 348,066 (363) 2019 (RM’000) 204,358 83,537 287,895 (38,779) (47) (38,826) 64,250 313,319 (899) Total Tax Expenses and Zakat for the Financial Year 347,703 312,420 A reconciliation of income tax expenses applicable to profit before tax at the applicable income tax rate of the Group is as follows: GROUP Note 2020 (RM’000) 2019 (RM’000) Profit before Tax 42,432,654 36,238,563 Tax at Applicable Tax Rate of 23.89% (2019: 25.09%) 31a 10,138,959 9,092,135 Income Not Subject to Tax Expenses Not Deductible for Tax Purposes Utilisation of Unabsorbed Tax Losses and Unutilised Capital Allowance Previously Not Recognised Recognition of Temporary Differences Previously Not Recognised Under/(Over) Provision of Taxation in Prior Years Temporary Differences Not Recognised in Previous Year Temporary Differences Not Recognised in Current Year Tax Expenses for the Financial Year Zakat (10,389,571) (8,910,562) 376,834 116,681 (1,162) - 62,207 8,140 152,659 348,066 (363) (3,055) 57,477 (39,357) - - 313,319 (899) Total Tax Expenses and Zakat for the Financial Year 347,703 312,420 264 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 31.
TAX AND ZAKAT (CONT’D.)

a.

The Group’s applicable tax rate is derived from the consolidation of tax rates of all entities within the Group based on their respective local tax jurisdictions.

EPF is exempted from Income Tax on its income under paragraph 20 - Schedule 6, Part I, Income Tax Act 1967 as stated in Note 2.18a.

b.
b.

During the financial year ended 2019, Inland Revenue Board (“IRB”) has raised tax assessment to a domestic subsidiary arising from the subsidiary’s tax returns for the Year of Assessment (“YA”) 2014 and 2015 amounting to RM343.97 million.

IRB has disallowed the deduction of the cost of land attributable to compulsory allocation set aside for public amenities and interest expense.
Based on the advice obtained from legal and tax professionals, the subsidiary believes the cost of land set aside for public amenities and the interest expense qualifies for deduction under Section 33(1) of the Income Tax Act 1967 (“ITA”) and are tax deductible expenses when computing taxable income.

Accordingly, no provision has been made for any additional tax payable to IRB.
On 3 February 2020, the subsidiary filed an application for judicial review to the High Court and on 12 April 2021, the High Court dismissed the subsidiary’s leave application for judicial review.

Subsequently on 13 April 2021, the subsidiary filed an appeal against the learned High Court’s decision to the Court of Appeal.

The subsidiary’s stance on the matter remain unchanged after obtaining further advice from legal and tax professionals.
On 20 April 2021, the subsidiary also filed an application for stay to the High Court.

On 5 May 2021, the High Court Judge had granted an interim stay and had adjourned the stay application hearing to 27 October 2021.

265 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 32.
SIMPANAN SHARIAH DISCLOSURES 32.1 Investment Assets EPF 2020 2019 Note Shariah (RM’000) Conventional (RM’000) Total (RM’000) Shariah (RM’000) Conventional (RM’000) Total (RM’000) Deposits with Financial Institutions Gross Deposits with Financial Institutions 33,408,807 27,836,984 61,245,791 23,696,092 31,006,002 54,702,094 Allowance for Impairment Losses (348) (110) (458) (898) (190) (1,088) 3.2 33,408,459 27,836,874 61,245,333 23,695,194 31,005,812 54,701,006 Loans, Advances and Financing (Note a) Gross Loans, Advances and Financing 7,375,950 47,934,914 55,310,864 7,341,452 52,177,724 59,519,176 Allowance for Impairment Losses (5,766) (10,797) (16,563) (53) (391) (444) 5.2 7,370,184 47,924,117 55,294,301 7,341,399 52,177,333 59,518,732 Financial Assets at Fair Value through Profit or Loss 6.2 5,474,867 48,308,516 53,783,383 4,186,678 12,211,340 16,398,018 Financial Assets at Fair Value through Other Comprehensive Income i) Equity Instruments Domestic Global ii) Perpetual Fixed Income Instruments Domestic Global iii) Fixed Income Instruments Domestic Global iv) Other Instruments Domestic Global 52,219,777
NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 32.
SIMPANAN SHARIAH DISCLOSURES (CONT’D.)

32.1 Investment Assets (Cont’d.)
EPF 2020 2019 Note Shariah (RM’000) Conventional (RM’000) Total (RM’000) Shariah (RM’000) Conventional (RM’000) Total (RM’000) Investment Assets at Amortised Cost Gross Investment Assets at Amortised Cost 120,178,182 178,047,232 298,225,414 113,933,947 191,507,211 305,441,158 Allowance for Impairment Losses (433,212) (10,767) (443,979) (242,397) (8,401) (250,798) 8.2 119,744,970 178,036,465 297,781,435 113,691,550 191,498,810 305,190,360 Investment in Joint Ventures Domestic Unquoted Equities Allowance for Impairment Losses Investment in Associates Domestic Equities 1,830,150 - 9.2 1,830,150 - - - 1,830,150 1,666,000 - - 1,830,150 1,666,000 - - - 1,666,000 - 1,666,000 2,487,277 9,101,979 11,589,256 2,487,277 8,803,224 11,290,501 Allowance for Impairment Losses (27) (266,382) (266,409) - (30,655) (30,655) 10.2 2,487,250 8,835,597 11,322,847 2,487,277 8,772,569 11,259,846 Investment in Subsidiaries Domestic Equities 829,411 7,036,475 7,865,886 826,976 6,765,312 7,592,288 Allowance for Impairment Losses (10,305) (56,009) (66,314) (9,074) (45,252) (54,326) 819,106 6,980,466 7,799,572 817,902 6,720,060 7,537,962 Global Equities 1,095,186 21,861,200 22,956,386 1,104,981 17,612,163 18,717,144 Allowance for Impairment Losses (10,131) (31,341) (41,472) (10,667) (49,234) (59,901) Assets Held for Sale Investment Properties Total Investment Assets 11 12 15 1,085,055 21,829,859 22,914,914 1,094,314 17,562,929 18,657,243 1,904,161 28,810,325 30,714,486 1,912,216 24,282,989 26,195,205 6,291 - 6,291 875,488 206,490 1,081,978
 75,666 941,512 - 75,666 215,511 1,157,023 400,189,260 588,532,749 988,722,009 341,193,373 569,101,437 910,294,810 As at financial year ended 31 December 2020, investment assets in Shariah Portfolio for Simpanan Shariah and Simpanan Konvensional assets are RM156.40 billion (2019: RM133.29 billion) and RM243.79 billion (2019: RM207.90 billion), equivalent to 39% (2019: 39%) and 61% (2019: 61%) respectively of the total investment assets.
Investment assets in Conventional Portfolio amounting to RM588.53 billion (2019: RM569.10 billion) is solely for Simpanan Konvensional.

a.

For the purpose of Note 32.1, staff loan is not included in Loans, Advances and Financing as above.

b.
b.

Investment Liabilities EPF Note Shariah (RM’000) Conventional (RM’000) Total (RM’000) Shariah (RM’000) Conventional (RM’000) Total (RM’000) 2020 2019 Financial Liabilities at Fair Value through Profit or Loss 6.2 54,411 220,706 275,117 63,189 186,712 249,901 267 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 32.

SIMPANAN SHARIAH DISCLOSURES (CONT’D.)
32.2 Contributions Account EPF 2020 2019 Simpanan Shariah (RM’000) Simpanan Konvensional (RM’000) Total (RM’000) Simpanan Shariah (RM’000) Simpanan Konvensional (RM’000) Total (RM’000) Note 89,198,721 827,388,023 916,586,744 79,165,639 760,477,282 839,642,921 At 1 January Add: Contribution Transferred from Simpanan Konvensional 7,208,197 - 7,208,197 3,159,201 - 3,159,201 Contribution Received and Adjustments 12,600,837 65,813,905 78,414,742 9,968,257 65,959,821 75,928,078 Dividend Credited to Members - Simpanan Shariah: 4.90% (2019: 5.00%) 23.2 4,763,439 - 4,763,439 4,140,716 - 4,140,716 - Simpanan Konvensional: 5.20% (2019: 5.45%) 23.2 - 42,878,847 42,878,847 - 41,676,701 41,676,701 Adjustments on Prior Year Dividends 898 5,122 6,020 822 4,641 5,463 113,772,092 936,085,897 1,049,857,989 96,434,635 868,118,445 964,553,080 Less: Contribution Transferred to Simpanan Shariah - (7,208,197) (7,208,197) - (3,159,201) (3,159,201) Contribution Withdrawals and Refunds (9,691,095) (48,603,402) (58,294,497) (7,235,548) (37,567,846) (44,803,394) Adjustments on Contributions with Incomplete Information (CTML) and Reject (349) (2,951) (3,300) (366) (3,375) (3,741) At 31 December 23 104,080,648 880,271,347 984,351,995 89,198,721 827,388,023 916,586,744 268 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 32.
SIMPANAN SHARIAH DISCLOSURES (CONT’D.)
32.3 Statement of Profit or Loss EPF 2020 2019 Simpanan Shariah (RM’000) Simpanan Konvensional (RM’000) Total (RM’000) Simpanan Shariah (RM’000) Simpanan Konvensional (RM’000) Total (RM’000) Note INCOME Gross Investment Income Investment Expenditures Net Impairment on Financial Investment Assets Net Impairment on Investment in Subsidiaries, Associates and Joint Ventures 24 25 26 27 4,149,211 41,835,097 45,984,308 3,605,332 35,592,224 39,197,556 (102,079) (996,306) (1,098,385) (229,095) (835,309) (1,064,404) (68,256) (338,359) (406,615) (12,526) (38,373) (50,899) (194) (229,119) (229,313) (133) (37,749) (37,882) Net Investment Income 3,978,682 40,271,313 44,249,995 3,363,578 34,680,793 38,044,371 Other Income Total Income Operating Expenditures Statutory Charges Total Expenditures 28 13,175 103,553 116,728 18,010 152,908 170,918 3,991,857 40,374,866 44,366,723 3,381,588 34,833,701 38,215,289 29 30 (158,514) (1,276,922) (1,435,436) (137,742) (1,230,212) (1,367,954) (6,725) (56,829) (63,554) (6,955) (64,095) (71,050) (165,239) (1,333,751) (1,498,990) (144,697) (1,294,307) (1,439,004) Net Profit Attributable to Members 3,826,618 39,041,115 42,867,733 3,236,891 33,539,394 36,776,285 269 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 32.
SIMPANAN SHARIAH DISCLOSURES (CONT’D.)

32.4 Shariah Disclosure in relation to Shariah Non-Compliant Income Any income derived from the operation and investment transactions of the EPF Simpanan Shariah that are Shariah non-compliant due to certain reasons as determined by the Shariah Advisory Committee of EPF (“SAC”) will be expended for such purposes as advised by the SAC pursuant to Rule 10 of the EPF (Simpanan Shariah Account) Rules 2016.
The SAC has resolved that the Shariah Non-Compliant Income can only be utilised for allowable expenses i.e.

charitable activities such as payment of death benefit, incapacitation benefit and invocation cost and any excess Shariah Non-Compliant Income may be utilised for operating expenditure and indirect investment expenditure.
Total Shariah Non-Compliant Income and its utilisation for the financial year are as follows: EPF Shariah Non-Compliant Income Note 2020 (RM’000) 2019 (RM’000) Unutilised Shariah Non-Compliant Income as at 1 January (if any) - - 1.
Shariah Non-Compliant Income i. Shariah Non-Compliant Income Recognised in Profit or Loss a. Shariah Non-Compliant Income from Shariah Investment and Operation of Simpanan Shariah Interest on Foreign Current Accounts Other Shariah Non-Compliant Income b. Shariah Non-Compliant Income from Late Payment Charges Late Payment Charges from Employers due to Late Payment of Contributions Late Rental Charges due to Late Rental Payment on Shariah- Compliant Properties Late Payment Charges on Utilisation of Kiosk and Fund Management Institutions Total Shariah Non-Compliant Income Recognised in Profit or Loss ii.
Shariah Non-Compliant Income Recognised in Cumulative Surplus Excess Gain on Securities which had been Reclassified from Shariah to Conventional 28 23.2 Total Shariah Non-Compliant Income Recognised in Cumulative Surplus 1,306 1 1,307 6,662 15 6,677 24,787 33,201 188 17 24,992 26,299 10,831 10,831 339 120 33,660 40,337 1,592 1,592 Total Shariah Non-Compliant Income during The Year 37,130 41,929 2.
Utilisation of Shariah Non-Compliant Income Statutory Charges Total Utilisation of Shariah Non-Compliant Income during The Year 32.4a (37,130) (37,130) (41,929) (41,929) Total Unutilised Shariah Non-Compliant Income as at 31 December - - a.

The actual total Statutory Charges for 2020 amounted to RM63.55 million (2019: RM71.05 million) as stated in Note 30.

270 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 33.
CASH AND CASH EQUIVALENTS Bank and Cash Balances Deposits and Placements with Financial Institutions GROUP Note 2020 (RM’000) 2019 (RM’000) 12,039,404 11,547,446 49,953,594 26,964,739 Money Market Account with Bank Negara Malaysia 3.1 10,211,250 250,472 Bank Balances Maintained with Custodians Bank and Cash Balances Deposits and Placements with Financial Institutions 4,694,676 5,367,357 76,898,924 44,130,014 EPF Note 2020 (RM’000) 2019 (RM’000) 6,946,225 9,301,355 48,822,437 24,703,835 Money Market Account with Bank Negara Malaysia 3.2 10,211,250 250,472 Bank Balances Maintained with Custodians 4,694,676 5,367,357 70,674,588 39,623,019 271 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 34.
CAPITAL COMMITMENTS a.

Capital Commitments for Projects Approved and Contracted for Approved But Not Contracted for GROUP EPF Note 2020 (RM’000) 2019 (RM’000) 2020 (RM’000) 2019 (RM’000) 59,784 312,798 372,582 63,891 248,152 312,043 6,912 312,798 319,710 13,549 248,152 261,701 b.
Capital Commitments for Investment in Funds Approved and Contracted for 34 i 17,042,895 15,171,032 17,042,895 15,171,032 c. Capital Commitments for Investment in Subsidiaries, Associates and Joint Ventures Approved and Contracted for 34 i 15,891,679 18,747,009 15,891,679 18,747,009 d. Operational Commitments Direct Credit Substitutes Trade-Related Contingencies Short Term Self Liquidating Trade-Related Contingencies Irrevocable Commitments to Extend Credit: - Within One Year - One to Five Years - Over Five Years Foreign Exchange Related Contracts: 34 ii 61,797 96,956 179,476 96,744 107,698 83,691 612,780 1,338,351 1,577,419 3,100,296 8,308 72,000 - Within One Year 278,310 228,295 - - - - - - - - - - - - - - 36,050,424 39,328,937 33,254,284 34,179,742 i.
Capital commitments for investment in Funds and investment in Subsidiaries, Associates and Joint Ventures represent the remaining uncalled capital as at the Statements of Financial Position date.

These payments are released progressively upon receipt of capital call notices from fund managers or general partners based on the agreed investment terms.

ii.
ii.

The Group undertakes various commitments and assumes certain contingent liabilities with legal recourse to its customers in the normal course of business.

No material losses are anticipated as a result of these transactions.

272 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 35.
CONTINGENT LIABILITIES 35.1 Contingent Claims on Statutory Charges Death Benefit and Incapacitation Benefit under Section 58(1) and 58(2), EPF Act 1991 Statutory Charges comprising of Death Benefits under Section 58(1) and Incapacitation Benefits under Section 58(2), of the EPF Act 1991 are paid to member under the death and incapacitation withdrawal, by utilising the EPF income and not deducted from the members’ credits.
In the event a member or next of kin did not encash the payment made in a particular financial year and make such claims in the subsequent year, the repayment made to the member or next of kin would be charged against the income in the year the said claim is made.

As at 31 December 2020, contingent liabilities in respect of Death Benefits amounted to RM11.63 million (2019: RM11.62 million) whereas Incapacitation Benefits amounted to RM6.44 million (2019: RM6.44 million).

36.
36.

FINANCIAL RISK 36.1 Credit Risk Credit Risk is the risk of loss caused by a counterparty’s or an obligor’s failure to meet its payment obligations.

Exposure to credit risk arises from its lending, hedging, trading and investing activities.

The maximum exposure to credit risk represented by the carrying amount in the Statements of Financial Position.

The EPF maintains an average portfolio rating of AA for its debt securities and loans.
As a matter of policy, the EPF invests only in debt securities with lowest rating of A band for domestic and BBB band for global investments.

However, the EPF may also invest in unrated assets in which a rating is assigned using internal rating model that is consistent with the approach used by external rating agency.
The counterparty credit risk which arises from deposit placement with a financial institution is managed by setting limits in which all deposits are to be held with a financial institution rating of A3/A- band or higher.

The objective of credit risk management is to keep the credit risk exposure within the EPF’s risk appetite statements and to ensure that the returns commensurate with the risk taken.

a.
a.

Credit Quality The EPF has developed tools to measure credit risk such as the Credit Portfolio Management System which computes portfolio Credit Value at Risk (CVaR) for credit related assets and various credit systems to evaluate the creditworthiness of corporate borrowers.

The EPF’s debt portfolios are managed by internal as well as external fund managers appointed by the Investment Panel.

Both portfolios are subject to maximum exposure to ensure the portfolios are diversified.
The EPF also invests in short-term instruments and global bond/sukuk instruments within the approved universe.

The universe facilitates the trading process and provides assurance to the EPF that the exposure to short-term papers and global bond/sukuk papers are only limited to rated issuers.

The EPF conducts regular review on the credit counterparties and monitor the rating transition to ensure credit quality is within the EPF’s investment parameters.
273 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.

FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

a.

Credit Quality (Cont’d.)

The EPF classifies debt securities and loans into internal rating scales which are consistent with domestic and foreign rating agencies.

The credit quality classifications are as follows: Quality Classifications i.
Rating for Long Term Financial Obligations Long Term Rating Domestic Credit Rating Global Credit Rating Definition of Quality Classifications Sovereign Sovereign Sovereign Issued by Government of Malaysia or its Special Purpose Vehicles (SPV); or guaranteed by Government of Malaysia.

Strong AAA and AA AAA to A Superior/high capacity to meet its financial obligations.

Moderate A BBB Adequate capacity to meet its financial obligations.
Sub-Standard BBB and below BB and below Low capacity to meet its financial obligations.

ii.

Rating for Short Term Financial Obligations Short Term Rating Domestic Credit Rating Definition of Quality Classifications Strong P1/MARC-1 Strong capacity to meet its short term financial obligations.

Moderate P2/MARC-2 Adequate capacity to meet its short term financial obligations.
Short Term Rating Global Credit Rating Definition of Quality Classifications Strong A-1/P-1/F1 Strong capacity to meet its short term financial obligations.

Moderate A-2/P-2/F2 Satisfactory capacity to meet its short term financial obligations.

Sub-Standard A-3/P-3/F3 Adequate capacity to meet its short term financial obligations.

iii.

Non-Rated Financial Assets This refers to financial assets such as receivables, deposits, accrued interest and dividend, which do not have credit rating.

iv.
iv.

Impaired Financial Assets Exposure assessed individually which is considered impaired based on the EPF’s accounting policies.

274 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.

FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

a.

Credit Quality (Cont’d.)


Maximum exposure to credit risk - Financial instruments subject to impairment The following table contains an analysis of the credit risk exposure of financial instruments for which Expected Credit Loss Allowance is recognised.

The gross carrying amount of financial assets below also represents the Group’s and EPF’s maximum exposure to credit risk on these assets.

i.
Deposits with Financial Institutions at Amortised Cost GROUP 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Sovereign Strong Moderate Non - Rated Gross Carrying Amount Allowance for 12,232,834 48,605,869 1,685,148 - 62,523,851 Impairment Losses 36.1b (i) (335) Net Carrying Amount 3.1 62,523,516 - - - - - - - - 12,232,834 4,859,275 - 48,605,869 50,588,541 - 1,685,148 1,655,845 - - 14,874 - 62,523,851 57,118,535 - (335) (649) - 62,523,516 57,117,886 - - - - - - - - 4,859,275 - 50,588,541 - - 1,655,845 14,874 - 57,118,535 - (649) - 57,117,886 EPF 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Sovereign Strong Moderate Gross Carrying Amount Allowance for 11,612,834 46,632,095 3,000,862 61,245,791 Impairment Losses 36.1b (i) (458) Net Carrying Amount 3.2 61,245,333 - - - - - - - 11,612,834 3,769,275 - 46,632,095 47,616,099 - 3,000,862 3,316,720 - 61,245,791 54,702,094 - (458) (1,088) - 61,245,333 54,701,006 - - - - - - - 3,769,275 - 47,616,099 - 3,316,720 - 54,702,094 - (1,088) - 54,701,006 275 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

a.

Credit Quality (Cont’d.)

ii.
Receivables and Deposits GROUP 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Strong Moderate Non - Rated Impaired 21,699 4,278 3,401,959 - - - - - - - 21,699 127,839 4,278 213,434 794,754 4,196,713 2,667,958 31,336 31,336 - - - - - - 127,839 11,163 224,597 1,225,479 3,893,437 5,703 5,703 Gross Carrying Amount Allowance for Impairment Losses 4.1, 36.1b (ii) Net Carrying Amount EPF 3,427,936 - 826,090 4,254,026 3,009,231 - 1,242,345 4,251,576 (266) - (744,063) (744,329) (278) - (591,437) (591,715) 3,427,670 - 82,027 3,509,697 3,008,953 - 650,908 3,659,861 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Non - Rated Impaired Gross Carrying Amount Allowance for Impairment Losses Net Carrying Amount 4.2, 36.1b (ii) 2,375,218 - 2,375,218 - - - - 2,375,218 2,290,778 18,773 18,773 - 18,773 2,393,991 2,290,778 - - (18,773) (18,773) - 2,375,218 - - 2,375,218 2,290,778 - - - - - - 2,290,778 5,430 5,430 5,430 2,296,208 (5,430) (5,430) - 2,290,778 276 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

a.

Credit Quality (Cont’d.)

iii.
Loans, Advances and Financing at Amortised Cost GROUP 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Sovereign Strong Moderate 6,507,522 - - 6,507,522 12,894,603 - - 12,894,603 46,685,343 40,994 - 46,726,337 47,207,691 20,535 3,278,740 313,394 - 3,592,134 3,904,145 226,084 Sub - Standard 8,749,220 2,390,293 - 11,139,513 8,078,579 1,863,715 Non - Rated Impaired Gross Carrying Amount Allowance for 16,835,750 2,249,063 - 19,084,813 18,184,955 2,492,817 870 20,678,642 - - 5,849,560 5,849,560 - - 1,861,542 1,861,542 82,056,575 4,993,744 5,849,560 92,899,879 90,269,973 4,603,151 1,862,412 96,735,536 Impairment Losses 36.1b (iii) (372,455) (652,178) (947,920) (1,972,553) (413,828) (438,498) (1,066,522) (1,918,848) - 47,228,226 - - 4,130,229 9,942,294 5.1 81,684,120 4,341,566 4,901,640 90,927,326 89,856,145 4,164,653 795,890 94,816,688 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) 2020 2019 Net Carrying Amount EPF Sovereign Strong Moderate Non - Rated Impaired Gross Carrying Amount Allowance for 6,507,522 44,606,271 83,608 245,463 - - - - - 6,507,522 12,894,603 159,759 44,766,030 46,568,309 - - 83,608 54,773 245,463 250,669 - - 3,953,704 3,953,704 - 51,442,864 - 4,113,463 55,556,327 59,768,354 Impairment Losses 36.1b (iii) (778) - (15,805) (16,583) (518) Net Carrying Amount 5.2 51,442,086 - 4,097,658 55,539,744 59,767,836 - - - - -
 - - - - 12,894,603 - 46,568,309 - - 54,773 250,669 1,491 1,491 1,491 59,769,845 - (518) 1,491 59,769,327 277 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

a.

Credit Quality (Cont’d.)

iv.
Fixed Income Instruments at Fair Value through Other Comprehensive Income GROUP 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Sovereign Strong Moderate Sub - Standard Non - Rated Impaired Gross Carrying Amount Allowance for 46,909,133 21,986 - 46,931,119 45,401,243 - 52,632,418 118,382 - 52,750,800 45,883,858 307,339 11,963,460 1,881,406 - 13,844,866 11,785,650 1,877,196 - 2,180 - - - - - - - 2,180 614,476 614,476 - - - 190,429 - - - 45,401,243 - 46,191,197 - 13,662,846 - - 190,429 - 142,523 142,523 111,507,191 2,021,774 614,476 114,143,441 103,070,751 2,374,964 142,523 105,588,238 Impairment Losses - - - - - - - - Net Carrying Amount EPF Sovereign Strong Moderate Sub - Standard Non - Rated Impaired Gross Carrying Amount Allowance for 7.1 111,507,191 2,021,774 614,476 114,143,441 103,070,751 2,374,964 142,523 105,588,238 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) 37,806,394 21,986 - 37,828,380 35,816,386 - 51,566,997 118,382 - 51,685,379 44,806,137 307,339 12,036,536 1,881,406 - 13,917,942 11,853,439 1,877,196 - 2,180 - - - - - - - 2,180 614,476 614,476 - - - 190,429 - - - 35,816,386 - 45,113,476 - 13,730,635 - - 190,429 - 142,523 142,523 101,412,107 2,021,774 614,476 104,048,357 92,475,962 2,374,964 142,523 94,993,449 Impairment Losses - - - - - - - - Net Carrying Amount 7.2 101,412,107 2,021,774 614,476
 104,048,357 92,475,962 2,374,964 142,523 94,993,449 In line with MFRS 9, the impairment allowance for fixed income instruments is no longer disclosed in Financial Assets at Fair Value through Other Comprehensive Income but is accounted for at Financial Assets at Fair Value through Other Comprehensive Income Reserve.
Details on the impairment allowance is shown at Note 36.1b(iv).

278 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.

FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

a.

Credit Quality (Cont’d.)
v. Investment Assets at Amortised Cost GROUP 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Sovereign Strong Moderate Non - Rated Impaired Gross Carrying Amount Allowance for 245,340,589 50,260,353 106,511 - - - 283,686 205,266 - 245,340,589 244,016,835 - 50,260,353 58,742,380 - - 106,511 207,614 488,952 494,857 - - 1,163,916 1,163,916 - - - - - - - 244,016,835 - 58,742,380 - - 207,614 494,857 1,115,199 1,115,199 295,991,139 205,266 1,163,916 297,360,321 303,461,686 - 1,115,199 304,576,885 Impairment Losses 36.1b (v) (11,908) (501) (425,627) (438,036) (16,381) - (234,437) (250,818) Net Carrying Amount EPF Sovereign Strong Moderate Sub - Standard Non - Rated Impaired Gross Carrying Amount Allowance for 8.1 295,979,231 204,765 738,289 296,922,285 303,445,305 - 880,762 304,326,067 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) 2020 2019 245,340,589 51,252,662 106,511 271,457 259 - - - - - - - 245,340,589 244,016,835 90,020 51,342,682 59,830,157 106,511 207,615 - - - 271,457 259 - 1,163,916 1,163,916 - - - - - - - - - - 244,016,835 - 59,830,157 - - - 207,615 - - 1,386,551 1,386,551 296,971,478 - 1,253,936 298,225,414 304,054,607 - 1,386,551 305,441,158 Impairment Losses 36.1b (v) (18,352) - (425,627) (443,979) (16,361) - (234,437) (250,798) Net Carrying Amount 8.2 296,953,126 - 828,309 297,781,435 304,038,246 - 1,152,114
 305,190,360 279 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

a.

Credit Quality (Cont’d.)
Maximum exposure to credit risk - Financial instruments not subject to impairment The following table contains an analysis of the maximum credit risk exposure for financial assets not subject to impairment: GROUP Financial Assets Investment Assets Held for Trading Debt Instruments Derivatives EPF Financial Assets Debt Instruments Capital Advance to Subsidiaries Derivatives Maximum Exposure to Credit Risk 2020 (RM’000) 2019 (RM’000) 13,906,865 13,893,280 37,542,803 3,685,771 1,530,652 1,279,050 55,135,439 16,702,982 Note 6 6 6 Maximum Exposure to Credit Risk Note 2020 (RM’000) 2019 (RM’000) 37,344,077 3,274,894 12,769,841 11,851,162 3,669,465 1,271,962 6 53,783,383 16,398,018 280 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.
FINANCIAL RISK (CONT'D.)

36.1 Credit Risk (Cont'd.)

b.

Financial Assets subject to Expected Credit Losses Movement in the Allowance for Expected Credit Losses The movement in Allowance for Expected Credit Losses recognised during the period is due to the following factors: (a) Transfers between Stage 1 and Stage 2 or 3 due to financial instruments experiencing significant increase in credit risk or becoming credit-impaired during the period and vice-versa.
(b) New financial assets purchased during the period.

(c) Financial assets derecognised during the period.

The following tables explain the movement in the Allowance for Expected Credit Losses between the beginning and the end of the financial period: i.
Deposits with Financial Institutions at Amortised Cost GROUP 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) At 1 January 649 - - 649 814 - - 814 Movements with Profit or Loss Impact New Financial Assets Originated or Purchased Derecognised Financial Assets Changes in PDs/LGDs/EADs Foreign Exchange and Other Movements At 31 December 3.1 19 (782) 311 138 335 - - - - - - - - - - 19 444 (782) 311 138 335 (777) (146) 314 649 - - - - - - - - - - 444 (777) (146) 314 649 281 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

b.

Financial Assets subject to Expected Credit Losses (Cont’d.)

Movement in the Allowance for Expected Credit Losses (Cont’d.)

i.

Deposits with Financial Institutions at Amortised Cost (Cont’d.)
EPF 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) At 1 January 1,088 - - 1,088 469 - - 469 Movements with Profit or Loss Impact New Financial Assets Originated or Purchased Derecognised Financial Assets Changes in PDs/LGDs/EADs Foreign Exchange and Other Movements At 31 December 3.2 ii.
Receivables and Deposits 19 (1,221) 434 138 458 - - - - - - - - - - 19 884 (1,221) 434 138 458 (433) (146) 314 1,088 - - - - - - - - - - 884 (433) (146) 314 1,088 GROUP 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) At 1 January 278 - 591,437 591,715 214 - 563,467 563,681 Movements with Profit or Loss Impact Transfer: Transfer from Stage 1 to Stage 3 Transfer from Stage 3 to Stage 1 New Financial Assets Originated or Purchased Derecognised Financial Assets Changes in PDs/LGDs/EADs Foreign Exchange and Other Movements At 31 December 4.1 (375) 10 347 - - 6 266 - - - - - - - 375 (10) - - 66,081 66,428 (15,185) (15,185) 101,275 101,275 90 96 744,063 744,329 - - - 55 - 9 278 - - - - - - - - - - - 61,909 61,909 (45,007) (44,952) - - 11,068 11,077 591,437 591,715 282 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

b.

Financial Assets subject to Expected Credit Losses (Cont’d.)

Movement in the Allowance for Expected Credit Losses (Cont’d.)

ii.

Receivables and Deposits (Cont’d.)
EPF 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) At 1 January - - 5,430 5,430 - - 5,697 5,697 Movements with Profit or Loss Impact New Financial Assets Originated or Purchased Derecognised Financial Assets At 31 December 4.2 - - - - - - 15,202 15,202 (1,859) (1,859) 18,773 18,773 - - - - - - 3,646 3,646 (3,913) (3,913) 5,430 5,430 283 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

b.

Financial Assets subject to Expected Credit Losses (Cont’d.)

Movement in the Allowance for Expected Credit Losses (Cont’d.)

iii.
Loans, Advances and Financing at Amortised Cost GROUP 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) At 1 January 413,828 438,498 1,066,522 1,918,848 361,339 553,190 1,131,039 2,045,568 Movements with Profit or Loss Impact Transfer: Transfer from Stage 1 to Stage 2 Transfer from Stage 1 to Stage 3 Transfer from Stage 2 to Stage 1 Transfer from Stage 2 to Stage 3 Transfer from Stage 3 to Stage 1 Transfer from Stage 3 to Stage 2 New Financial Assets (34,679) 34,679 - - (20,096) 20,096 - (4,290) - 4,290 - (1,885) - 1,885 74,847 (74,847) - - 96,974 (96,974) - - (28,630) 28,630 - - (67,373) 67,373 27,726 - (27,726) - 45,594 - (45,594) - 80,783 (80,783) - - 142,058 (142,058) - - - - - - Originated or Purchased 66,724 58,879 19,092 144,695 110,553 39,036 38,274 187,863 Derecognised Financial Assets (182,871) (164,075) (482,540) (829,486) (179,477) (249,340) (307,594) (736,411) Changes in PDs/LGDs/EADs 11,224 306,891 420,435 738,550 746 95,069 323,409 419,224 Foreign Exchange and Other Movements (54) - - (54) 80 2,736 (212) 2,604 At 31 December 5.1 372,455 652,178 947,920 1,972,553 413,828 438,498 1,066,522 1,918,848 284 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

b.

Financial Assets subject to Expected Credit Losses (Cont’d.)

Movement in the Allowance for Expected Credit Losses (Cont’d.)

iii.

Loans, Advances and Financing at Amortised Cost (Cont’d.)
EPF 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) At 1 January 518 - - 518 661 - 24,568 25,229 Movements with Profit or Loss Impact Transfer: Transfer from Stage 1 to Stage 3 New Financial Assets Originated or Purchased Derecognised Financial Assets Changes in PDs/LGDs/EADs Foreign Exchange and Other Movements At 31 December 5.2 (7) - (88) 409 (54) 778 - - - - - - 7 - - - - (88) 15,798 16,207 - (54) 15,805 16,583 - 126 (144) (198) 73 518 - - - - - - - - - 126 (24,321) (24,465) (35) (233) (212) - (139) 518 285 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

b.

Financial Assets subject to Expected Credit Losses (Cont’d.)

Movement in the Allowance for Expected Credit Losses (Cont’d.)

iv.
Fixed Income Instruments at Fair Value through Other Comprehensive Income GROUP 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) At 1 January 28,387 15,487 74,729 118,603 48,121 14,536 70,210 132,867 Movements with Profit or Loss Impact Transfer: Transfer from Stage 1 to Stage 2 Transfer from Stage 2 to Stage 1 Transfer from Stage 2 to Stage 3 New Financial Assets (376) 376 292 (292) - - - (9,807) 9,807 - - - (272) 272 2,665 (2,665) - - Originated or Purchased 16,168 10,755 - 26,923 16,387 5,903 - - - - - - - 22,290 Derecognised Financial Assets (14,872) (4,549) - (19,421) (12,819) (607) - (13,426) Changes in PDs/LGDs/EADs 31,018 4,966 123,229 159,213 (5,686) 6,258 4,519 5,091 Foreign Exchange and Other Movements (116) 16 - (100) (20,009) (8,210) - (28,219) At 31 December 23.3 60,501 16,952 207,765 285,218 28,387 15,487 74,729 118,603 286 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

b.

Financial Assets subject to Expected Credit Losses (Cont’d.)

Movement in the Allowance for Expected Credit Losses (Cont’d.)

iv.

Fixed Income Instruments at Fair Value through Other Comprehensive Income (Cont’d.)
EPF 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) At 1 January 28,562 15,487 74,729 118,778 48,121 14,536 70,210 132,867 Movements with Profit or Loss Impact Transfer: Transfer from Stage 1 to Stage 2 Transfer from Stage 2 to Stage 1 Transfer from Stage 2 to Stage 3 New Financial Assets (376) 376 292 (292) - - - (9,807) 9,807 - - - (272) 272 2,665 (2,665) - - Originated or Purchased 16,168 10,755 - 26,923 16,576 5,903 - - - - - - - 22,479 Derecognised Financial Assets (14,932) (4,549) - (19,481) (12,819) (607) - (13,426) Changes in PDs/LGDs/EADs 31,075 4,966 123,229 159,270 (5,700) 6,258 4,519 5,077 Foreign Exchange and Other Movements (116) 16 - (100) (20,009) (8,210) - (28,219) At 31 December 23.3 60,673 16,952 207,765 285,390 28,562 15,487 74,729 118,778 The impairment allowance for Fixed Income Instruments at Fair Value through Other Comprehensive Income is accounted for at Financial Assets at Fair Value through Other Comprehensive Income Reserve.
287 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.

FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

b.

Financial Assets subject to Expected Credit Losses (Cont’d.)

Movement in the Allowance for Expected Credit Losses (Cont’d.)
v. Investment Assets at Amortised Cost GROUP 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) At 1 January 16,381 - 234,437 250,818 18,940 47 163,429 182,416 Movements with Profit or Loss Impact Transfer: Transfer from Stage 1 to Stage 2 New Financial Assets Originated or Purchased Derecognised Financial Assets (45) 45 - (1,579) - - - - - - - 879 - - - (1,579) (4,955) (47) - - - - 879 (5,002) Changes in PDs/LGDs/EADs 522 456 191,190 192,168 1,517 - 71,008 72,525 Foreign Exchange and Other Movements (3,371) - - (3,371) - At 31 December 8.1 11,908 501 425,627 438,036 16,381 EPF 2020 - - 234,437 250,818 - - 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) At 1 January 16,361 - 234,437 250,798 25,518 22 163,429 188,969 Movements with Profit or Loss Impact New Financial Assets Originated or Purchased Derecognised Financial Assets Changes in PDs/LGDs/EADs Foreign Exchange and Other Movements - (1,585) 6,947 (3,371) At 31 December 8.2 18,352 - - - - - - - 733 - - (1,585) (4,981) (22) - - 733 (5,003) 191,190 198,137 (4,909) - 71,008 66,099 - (3,371) - 425,627 443,979 16,361 - - - - 234,437 250,798 288 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

c. Movement in Gross Amount The following table shows an analysis of the movement in carrying amount by asset class, gross of allowance for expected credit losses, for the same portfolio of assets subject to allowance for expected credit losses disclosed in Note 36.1(b): i.
Deposits with Financial Institutions at Amortised Cost GROUP 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) At 1 January 57,118,535 - - 57,118,535 46,386,152 - - 46,386,152 Movements with Profit or Loss Impact New Financial Assets Originated or Purchased 770,141,304 Derecognised Financial Assets Movement of Accrued Interest Foreign Exchange and Other Movements (765,118,547) 1,174,009 (791,450) At 31 December 3.1, 36.1a (i) 62,523,851 - - - - - - 770,141,304 642,591,974 - (765,118,547) (628,889,690) - 1,174,009 206,111 - (791,450) (3,176,012) - 62,523,851 57,118,535 - - - - - - 642,591,974 - (628,889,690) - 206,111 - (3,176,012) - 57,118,535 289 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

c. Movement in Gross Amount (Cont’d.)

The following table shows an analysis of the movement in carrying amount by asset class, gross of allowance for expected credit losses, for the same portfolio of assets subject to allowance for expected credit losses disclosed in Note 36.1(b): (Cont’d.)

i.

Deposits with Financial Institutions at Amortised Cost (Cont’d.)
EPF 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) At 1 January 54,702,094 - - 54,702,094 42,012,386 - - 42,012,386 Movements with Profit or Loss Impact New Financial Assets Originated or Purchased 780,629,057 Derecognised Financial Assets Movement of Accrued Interest Foreign Exchange and Other Movements (774,419,723) 1,128,505 (794,142) At 31 December 3.2, 36.1a (i) 61,245,791 - - - - - - 780,629,057 645,754,154 - (774,419,723) (630,150,889) - 1,128,505 251,630 - (794,142) (3,165,187) - 61,245,791 54,702,094 - - - - - - 645,754,154 - (630,150,889) - 251,630 - (3,165,187) - 54,702,094 290 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

c. Movement in Gross Amount (Cont’d.)

The following table shows an analysis of the movement in carrying amount by asset class, gross of allowance for expected credit losses, for the same portfolio of assets subject to allowance for expected credit losses disclosed in Note 36.1(b): (Cont’d.)

ii.
Receivables and Deposits GROUP 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) At 1 January 3,009,231 - 1,242,345 4,251,576 2,655,403 - 1,252,746 3,908,149 Movements with Profit or Loss Impact Transfer: Transfer from Stage 1 to Stage 3 Transfer from Stage 3 to Stage 1 New Financial Assets (1,819) - 1,819 374,042 - (374,042) - - (398) 1,441 Originated or Purchased 1,656,344 - 105,377 1,761,721 4,971,642 Derecognised Financial Assets Movement of Accrued Interest Foreign Exchange and Other Movements At 31 December (1,620,377) - (149,901) (1,770,278) (4,615,898) (3) 10,518 4.1, 36.1a (ii) 3,427,936 - - - - (3) 2 492 11,010 (2,961) - - - - - - 398 (1,441) - - 62,403 5,034,045 (38,697) (4,654,595) (6,823) (6,821) (26,241) (29,202) 826,090 4,254,026 3,009,231 - 1,242,345 4,251,576 291 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

c. Movement in Gross Amount (Cont’d.)

The following table shows an analysis of the movement in carrying amount by asset class, gross of allowance for expected credit losses, for the same portfolio of assets subject to allowance for expected credit losses disclosed in Note 36.1(b): (Cont’d.)

ii.

Receivables and Deposits (Cont’d.)
EPF 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) At 1 January 2,290,778 - 5,430 2,296,208 1,594,403 - 5,706 1,600,109 Movements with Profit or Loss Impact Transfer: Transfer from Stage 1 to Stage 3 Transfer from Stage 3 to Stage 1 New Financial Assets (1,444) - 1,444 1,153 - (1,153) - - (33) 1,424 Originated or Purchased 1,438,868 - 13,758 1,452,626 5,297,183 Derecognised Financial Assets Foreign Exchange and Other Movements At 31 December (1,354,137) - 4.2, 36.1a (ii) 2,375,218 - - - (706) (1,354,843) (4,602,210) - - 11 18,773 2,393,991 2,290,778 - - - - - - 33 (1,424) - - 3,614 5,300,797 (2,488) (4,604,698) (11) - 5,430 2,296,208 292 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

c. Movement in Gross Amount (Cont’d.)

The following table shows an analysis of the movement in carrying amount by asset class, gross of allowance for expected credit losses, for the same portfolio of assets subject to allowance for expected credit losses disclosed in Note 36.1(b): (Cont’d.)

iii.
Loans, Advances and Financing at Amortised Cost GROUP 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) At 1 January 90,269,973 4,603,151 1,862,412 96,735,536 89,256,162 4,543,570 1,924,342 95,724,074 Movements with Profit or Loss Impact Transfer: Transfer from Stage 1 to Stage 2 Transfer from Stage 1 to Stage 3 Transfer from Stage 2 to Stage 1 Transfer from Stage 2 to Stage 3 Transfer from Stage 3 to Stage 1 Transfer from Stage 3 to Stage 2 New Financial Assets (1,600,302) 1,600,302 - - (1,163,094) 1,163,094 - (4,040,912) - 4,040,912 - (137,451) - 137,451 1,064,223 (1,064,223) - - 869,735 (869,735) - - (229,602) 229,602 - - (285,312) 285,312 45,420 - (45,420) - 94,090 - (94,090) - 136,437 (136,437) - - 242,764 (242,764) - - - - - - Originated or Purchased 4,644,245 514,891 62,228 5,221,364 26,900,809 461,038 66,694 27,428,541 Derecognised Financial Assets Movement of Accrued Interest (8,604,696) (606,982) (434,410) (9,646,088) (25,653,761) (658,155) (377,003) (26,688,919) Modification Loss (464,000) (40,750) - (504,750) - 693,997 850 118,189 813,036 718,263 636 - - - 718,899 - Foreign Exchange and Other Movements At 31 December 5.1, 36.1a (iii) 48,627 79,670 152,484 280,781 (614,780) 5,251 162,470 (447,059) 82,056,575 4,993,744 5,849,560 92,899,879 90,269,973 4,603,151 1,862,412 96,735,536 293 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

c. Movement in Gross Amount (Cont’d.)

The following table shows an analysis of the movement in carrying amount by asset class, gross of allowance for expected credit losses, for the same portfolio of assets subject to allowance for expected credit losses disclosed in Note 36.1(b): (Cont’d.)

iii.

Loans, Advances and Financing at Amortised Cost (Cont’d.)
EPF 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) At 1 January 59,768,354 - 1,491 59,769,845 59,237,385 - 166,022 59,403,407 Movements with Profit or Loss Impact Transfer: Transfer from Stage 1 to Stage 3 New Financial Assets (3,990,945) - 3,990,945 - - Originated or Purchased 23,213 - - 23,213 21,940,528 - - - - - 21,940,528 Derecognised Financial Assets Movement of Accrued Interest Foreign Exchange and Other Movements (4,456,708) - (1,495) (4,458,203) (21,493,693) - (164,848) (21,658,541) 681,989 - 122,462 804,451 715,749 (583,039) - 60 (582,979) (631,615) - - - - 715,749 317 (631,298) 1,491 59,769,845 At 31 December 5.2, 36.1a (iii) 51,442,864 - 4,113,463 55,556,327 59,768,354 294 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

c. Movement in Gross Amount (Cont’d.)

The following table shows an analysis of the movement in carrying amount by asset class, gross of allowance for expected credit losses, for the same portfolio of assets subject to allowance for expected credit losses disclosed in Note 36.1(b): (Cont’d.)

iv.
Fixed Income Instruments at Fair Value through Other Comprehensive Income GROUP 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) At 1 January 103,070,751 2,374,964 142,523 105,588,238 76,515,486 1,993,648 127,971 78,637,105 Movements with Profit or Loss Impact Transfer: Transfer from Stage 1 to Stage 2 Transfer from Stage 2 to Stage 1 Transfer from Stage 2 to Stage 3 New Financial Assets (602,856) 602,856 60,606 (60,606) - - - (339,976) 339,976 - 150,945 (150,945) - (248,096) 248,096 - - - - - - - - - Originated or Purchased 90,268,306 1,171,012 - 91,439,318 82,232,036 1,317,052 - 83,549,088 Derecognised Financial Assets Movement of Accrued Interest Foreign Exchange and Other Movements At 31 December (81,346,694) (1,351,815) (99) (82,698,608) (58,591,079) (942,869) (301) (59,534,249) 910,424 16,917 9,154 936,495 910,332 30,643 - 940,975 (853,346) (483,458) 214,802 (1,122,002) 2,193,007 (212,541) 14,853 1,995,319 7.1, 36.1a (iv) 111,507,191 2,021,774 614,476 114,143,441 103,070,751 2,374,964 142,523 105,588,238 295 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

c. Movement in Gross Amount (Cont’d.)

The following table shows an analysis of the movement in carrying amount by asset class, gross of allowance for expected credit losses, for the same portfolio of assets subject to allowance for expected credit losses disclosed in Note 36.1(b): (Cont’d.)

iv.

Fixed Income Instruments at Fair Value through Other Comprehensive Income (Cont’d.)
EPF 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) At 1 January 92,475,962 2,374,964 142,523 94,993,449 71,459,742 1,993,648 127,971 73,581,361 Movements with Profit or Loss Impact Transfer: Transfer from Stage 1 to Stage 2 Transfer from Stage 2 to Stage 1 Transfer from Stage 2 to Stage 3 New Financial Assets (602,856) 602,856 60,606 (60,606) - - - (339,976) 339,976 - 150,945 (150,945) - (248,096) 248,096 - - - - - - - - - Originated or Purchased 90,794,670 1,171,012 - 91,965,682 76,712,318 1,317,052 - 78,029,370 Derecognised Financial Assets Movement of Accrued Interest Foreign Exchange and Other Movements At 31 December (81,376,764) (1,351,815) (99) (82,728,678) (58,611,080) (942,869) (301) (59,554,250) 910,393 16,917 9,154 936,464 910,418 30,643 - 941,061 (849,904) (483,458) 214,802 (1,118,560) 2,193,595 (212,541) 14,853 1,995,907 7.2, 36.1a (iv) 101,412,107 2,021,774 614,476 104,048,357 92,475,962 2,374,964 142,523 94,993,449 296 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

c. Movement in Gross Amount (Cont’d.)

The following table shows an analysis of the movement in carrying amount by asset class, gross of allowance for expected credit losses, for the same portfolio of assets subject to allowance for expected credit losses disclosed in Note 36.1(b): (Cont’d.)
v. Investment Assets at Amortised Cost GROUP 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) At 1 January 303,461,686 - 1,115,199 304,576,885 290,442,529 25,814 868,550 291,336,893 Movements with Profit or Loss Impact Transfer: Transfer from Stage 1 to Stage 2 Transfer from Stage 1 to Stage 3 New Financial Assets (205,266) 205,266 - - - - - - - - - - (196,709) - 196,709 - - - 91,356,271 107,097,467 - - 107,097,467 Originated or Purchased 91,356,271 Derecognised Financial Assets Movement of Accrued Interest Foreign Exchange and Other Movements At 31 December (97,286,855) - (268,000) (97,554,855) (94,086,795) (25,497) - (94,112,292) 3,103,006 - 1,043 3,104,049 3,188,306 - 4,427 3,192,733 (4,437,703) - 315,674 (4,122,029) (2,983,112) (317) 45,513 (2,937,916) 8.1, 36.1a (v) 295,991,139 205,266 1,163,916 297,360,321 303,461,686 - 1,115,199 304,576,885 297 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

c. Movement in Gross Amount (Cont’d.)

The following table shows an analysis of the movement in carrying amount by asset class, gross of allowance for expected credit losses, for the same portfolio of assets subject to allowance for expected credit losses disclosed in Note 36.1(b): (Cont’d.)

v. Investment Assets at Amortised Cost (Cont’d.)
EPF 2020 2019 Note Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) Stage 1 (RM’000) Stage 2 (RM’000) Stage 3 (RM’000) Total (RM’000) At 1 January 304,054,607 - 1,386,551 305,441,158 291,780,578 26,467 868,550 292,675,595 Movements with Profit or Loss Impact Transfer: Transfer from Stage 1 to Stage 3 Transfer from Stage 3 to Stage 1 New Financial Assets - - - - (468,061) - 468,061 268,000 - (268,000) - - - - - - - Originated or Purchased 91,356,271 - 90,000 91,446,271 106,623,618 - 106,623,618 Derecognised Financial Assets Movement of Accrued Interest Foreign Exchange and Other Movements At 31 December (97,375,691) - (268,000) (97,643,691) (94,086,795) (26,150) - (94,112,945) 3,102,642 - 1,063 3,103,705 3,188,379 - 4,427 3,192,806 (4,434,351) - 312,322 (4,122,029) (2,983,112) (317) 45,513 (2,937,916) 8.2, 36.1a (v) 296,971,478 - 1,253,936 298,225,414 304,054,607 - 1,386,551 305,441,158 298 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

d. Financial Effects of Collaterals Held for Financial Assets Exposed to Credit Risk The Group employs a range of policies and practices to mitigate credit risk.

The most common approach is accepting collateral for investments undertaken.

The main type of collaterals are: (a) Land and Buildings; (b) Cash and Fixed Deposits; (c) Government Guarantees; and (d) Quoted Shares.
The Group’s policies on collaterals have not significantly changed during the reporting period.

In addition, there is no significant change in the overall quality of the collaterals held by the Group since the previous financial period.

The Group monitors closely collaterals held for financial assets considered to be credit-impaired if it becomes more likely that the Group will take possession of the collaterals to mitigate potential credit losses.
Exposure to financial impact of collaterals is only for Stage 3 financial assets that suffers from credit losses.
Financial assets that are credit-impaired and related collateral held in order to mitigate potential losses are shown below: GROUP 2020 2019 Gross Exposure Financial Assets (RM’000) Allowance for Impairment Losses (RM’000) Carrying Amount (RM’000) Fair Value of Collateral Held (RM’000) Gross Exposure (RM’000) Allowance for Impairment Losses (RM’000) Carrying Amount (RM’000) Fair Value of Collateral Held (RM’000) Receivables and Deposits 826,090 (744,063) 82,027 54,821 1,242,345 (591,437) 650,908 89,782 Loans, Advances and Financing at Amortised Cost Fixed Income Instruments at Fair Value through Other Comprehensive Income Investment Assets at Amortised Costs 5,849,560 (947,920) 4,901,640 5,527,082 1,862,412 (1,066,522) 795,890 374,262 614,476 (207,765) 406,711 9,800 142,523 (74,729) 67,794 9,800 1,163,916 (425,627) 738,289 200,000 1,115,199 (234,437) 880,762 1,800,000 8,454,042 (2,325,375) 6,128,667 5,791,703 4,362,479 (1,967,125) 2,395,354 2,273,844 299 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.
FINANCIAL RISK (CONT’D.)

36.1 Credit Risk (Cont’d.)

d. Financial Effects of Collaterals Held for Financial Assets Exposed to Credit Risk (Cont’d.)

Exposure to financial impact of collaterals is only for Stage 3 financial assets that suffers from credit losses.

Financial assets that are credit-impaired and related collateral held in order to mitigate potential losses are shown below: (Cont’d.)
EPF 2020 2019 Gross Exposure Financial Assets (RM’000) Allowance for Impairment Losses (RM’000) Carrying Amount (RM’000) Fair Value of Collateral Held (RM’000) Gross Exposure (RM’000) Allowance for Impairment Losses (RM’000) Carrying Amount (RM’000) Fair Value of Collateral Held (RM’000) Receivables and Deposits 18,773 (18,773) - - 5,430 (5,430) - Loans, Advances and Financing at Amortised Cost Fixed Income Instruments at Fair Value through Other Comprehensive Income Investment Assets at Amortised Costs 4,113,463 (15,805) 4,097,658 3,850,001 1,491 - 1,491 614,476 (207,765) 406,711 9,800 142,523 (74,729) 67,794 9,800 1,253,936 (425,627) 828,309 200,000 1,386,551 (234,437) 1,152,114 1,800,000 6,000,648 (667,970) 5,332,678 4,059,801 1,535,995 (314,596) 1,221,399 1,809,800 - - e. During the financial year 2020, a subsidiary of EPF has written off RM349.46 million (2019: RM221.89 million) of Loans, Advances and Financing as it is not reasonable to expect full recovery of the amount.
The subsidiary is seeking to recover the outstanding contractual amounts of such assets written off.

Meanwhile, there was no Financial Asset written off by EPF in 2020 (2019: Nil).

36.2 Liquidity Risk Liquidity risk relates to the inability of EPF to meet its financial commitments and obligations when they fall due.
EPF exposure to liquidity risk is limited as all contributions are mandated by EPF Act 1991 through deduction of salaries and members are only allowed to make withdrawals under pre-retirement and retirement schemes.
EPF manages its liquidity requirements through: - - - Monitoring of its daily cash flow and projecting monthly cash flow for a rolling 12 months basis; Allocating 3% of its asset’s value for short term instruments in the form of cash and placements in financial institutions in order to meet members’ withdrawals and other financial commitments and obligations; and Diversifying its investment portfolio by setting the concentration limits on name, sector and asset type.
300 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.

FINANCIAL RISK (CONT’D.)

36.2 Liquidity Risk (Cont’d.)

Over the medium and longer term, EPF is able to meet its liquidity requirements through its holdings of liquid investments such as publicly traded equities and fixed income securities.

The maturity profile of the EPF assets and liabilities is also monitored within a stipulated level.
The Group and EPF financial liabilities are categorised into relevant maturity groupings based on the remaining period at the Statement of Financial Position date to the contractual maturity date.

a.
The table below shows the contractual undiscounted cash flows payable for financial liabilities by remaining contractual maturities as at the Statements of Financial Position date: GROUP 2020 Contractual Cash Flows On Demand or within One Year (RM’000) One to Five Years Over Five Years Total Carrying Amount (RM’000) (RM’000) (RM’000) (RM’000) Non-Derivative Liabilities Contribution Withdrawal Payables 34,475 - - 34,475 34,475 Payables and Accrued Liabilities# 3,767,497 370,100 171,709 4,309,306 4,290,729 Deposits and Advances 30,060,858 3,515,246 84,039 33,660,143 32,983,839 Lease Liabilities Loans and Overdrafts Net Settled Amount Derivatives Forward Contract Interest Rate Swap Net Outflow Gross Settled Amount Derivatives Cross Currency Swap - Outflow - Inflow 16,211 70,030 927,665 1,013,906 572,313 3,417,877 14,488,004 3,011,554 20,917,435 19,474,813 37,296,918 18,443,380 4,194,967 59,935,265 57,356,169 221,683 62,510 284,193 - - 221,683 94,191 94,191 10,159 10,159 166,860 388,543 221,683 160,367 382,050 - - - - - - 237,510 237,510 53,177 (182,970) (182,970) - 54,540 54,540 53,177 Total Financial Liabilities 37,581,111 18,537,571 4,259,666 60,378,348 57,791,396 Commitments and Contingencies* 33,918,498 1,792,436 8,308 35,719,242 35,719,242 # * Payables and Accrued Liabilities exclude other provisions and accruals, rent received in advance, contract liabilities as well as deferred income as these items are classified as non-financial liabilities.
Commitments and Contingencies exclude foreign exchange related contracts.

301 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.

FINANCIAL RISK (CONT’D.)

36.2 Liquidity Risk (Cont’d.)

a.

The table below shows the contractual undiscounted cash flows payable for financial liabilities by remaining contractual maturities as at the Statements of Financial Position date: (Cont’d.)
GROUP 2019 Contractual Cash Flows On Demand or within One Year (RM’000) One to Five Years Over Five Years Total Carrying Amount (RM’000) (RM’000) (RM’000) (RM’000) Non-Derivative Liabilities Contribution Withdrawal Payables 16,126 - - 16,126 16,126 Payables and Accrued Liabilities# 3,920,537 87,389 364,363 4,372,289 4,120,255 Deposits and Advances 30,597,455 4,027,555 140,938 34,765,948 34,398,206 Lease Liabilities Loans and Overdrafts Net Settled Amount Derivatives Forward Contract Interest Rate Swap Net Outflow Gross Settled Amount Derivatives Cross Currency Swap - Outflow - Inflow 13,868 72,181 748,849 834,898 503,153 4,206,206 11,690,647 3,161,293 19,058,146 18,126,680 38,754,192 15,877,772 4,415,443 59,047,407 57,164,420 93,909 34,992 128,901 - 133,865 133,865 - - - 93,909 168,857 262,766 93,909 121,978 215,887 257,800 (164,996) 92,804 - - - 237,510 495,310 155,993 (172,201) (337,197) - 65,309 158,113 155,993 Total Financial Liabilities 38,975,897 16,011,637 4,480,752 59,468,286 57,536,300 Commitments and Contingencies* 35,512,374 3,516,268 72,000 39,100,642 39,100,642 # * Payables and Accrued Liabilities exclude other provisions and accruals, rent received in advance, contract liabilities as well as deferred income as these items are classified as non-financial liabilities.
Commitments and Contingencies exclude foreign exchange related contracts.

302 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.

FINANCIAL RISK (CONT’D.)

36.2 Liquidity Risk (Cont’d.)

a.

The table below shows the contractual undiscounted cash flows payable for financial liabilities by remaining contractual maturities as at the Statements of Financial Position date: (Cont’d.)
EPF Non-Derivative Liabilities Contribution Withdrawal Payables Payables and Accrued Liabilities# Deposits and Advances Lease Liabilities Net Settled Amount Derivatives Forward Contract Interest Rate Swap Net Outflow Gross Settled Amount Derivatives Cross Currency Swap - Outflow - Inflow 2020 Contractual Cash Flows One to Five Years Over Five Years Total Carrying Amount (RM’000) (RM’000) (RM’000) (RM’000) - - 34,475 34,475 18,523 9,120 44,555 72,198 41,123 2,230,241 2,230,241 883 172,110 364,125 227,699 364,125 101,410 214,116 2,856,540 2,730,251 - - - - - - - - - 220,069 220,069 1,871 1,871 221,940 221,940 237,510 237,510 53,177 (182,970) (182,970) - 54,540 54,540 53,177 On Demand or within One Year (RM’000) 34,475 2,170,595 354,122 11,034 2,570,226 220,069 1,871 221,940 - - - Total Financial Liabilities 2,792,166 72,198 268,656 3,133,020 3,005,368 Commitments and Contingencies 33,109,789 144,495 - 33,254,284 33,254,284 # Payables and Accrued Liabilities exclude other provisions and accruals, rent received in advance, contract liabilities as well as deferred income as these items are classified as non-financial liabilities.
303 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.

FINANCIAL RISK (CONT’D.)

36.2 Liquidity Risk (Cont’d.)

a.

The table below shows the contractual undiscounted cash flows payable for financial liabilities by remaining contractual maturities as at the Statements of Financial Position date: (Cont’d.)
EPF Non-Derivative Liabilities Contribution Withdrawal Payables Payables and Accrued Liabilities# Deposits and Advances Lease Liabilities Net Settled Amount Derivatives Forward Contract Net Outflow Gross Settled Amount Derivatives Cross Currency Swap - Outflow - Inflow 2019 Contractual Cash Flows One to Five Years Over Five Years Total Carrying Amount (RM’000) (RM’000) (RM’000) (RM’000) - - 16,126 16,126 17,888 9,066 38,301 65,255 39,087 2,039,421 2,039,421 - 297,151 297,151 22,506 70,294 60,523 61,593 2,422,992 2,413,221 - - - - - - - 93,908 93,908 93,908 93,908 237,510 495,310 155,993 (172,201) (337,197) - 65,309 158,113 155,993 On Demand or within One Year (RM’000) 16,126 1,982,446 288,085 9,487 2,296,144 93,908 93,908 257,800 (164,996) 92,804 Total Financial Liabilities 2,482,856 65,255 126,902 2,675,013 2,663,122 Commitments and Contingencies 33,918,041 261,701 - 34,179,742 34,179,742 # Payables and Accrued Liabilities exclude other provisions and accruals, rent received in advance, contract liabilities as well as deferred income as these items are classified as non-financial liabilities.
304 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.

FINANCIAL RISK (CONT’D.)

36.3 Market Risk Market risk is the risk of losses arising from changes in the value of portfolios and financial instruments due to the movements in equity prices, interest rates and foreign exchange rate.

The objective of market risk management is to ensure that EPF exposures to these risks are within the risk appetite.
This is done through an annual review of various policies and limits, periodic reports to monitor market risk at portfolio level for each asset class and independent validation performed on the underlying risk methodology.

The EPF adopts the following risk measurements to manage its market risk: i. ii.

Single customer exposure limit, ownership, country and sector concentration limits to ensure appropriate diversification of risk exposures.
Value at Risk (“VaR”) is a statistical measure of the potential losses that could occur as a result of movements in interest rates and prices over a specified time horizon within a given confidence level.

iii.

Duration is to manage the sensitivity of the price of a fixed income investment arising from interest rate movement.

iv.

v. Tracking Error is a standard deviation of the portfolio’s excess returns relative to a benchmark in measuring and benchmarking the performance of the portfolio.
Stress testing is an exercise conducted to capture the potential market risk exposure of ‘what-if’ scenarios.

It incorporates factors such as correlation, volatility and returns at different levels.

The stress tests are performed periodically and reported to the management.

a.

Price Risk Price risk arises from the movements in the price of equities, both domestic and global.
EPF identifies acceptable benchmarks for each respective portfolio and measures the deviation from these benchmarks to ensure that each portfolio is within EPF’s investment parameter.

EPF manages its price risk through diversification and prudent selection of equities as approved by the Investment Panel.

The overall investment exposure is being monitored on a daily basis.

305 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.
FINANCIAL RISK (CONT’D.)

36.3 Market Risk (Cont’d.)

a.

Price Risk (Cont’d.)

The table below summarises the impact on the carrying amount of equity positions as at Statements of Financial Position date arising from the changes in equity prices.
The analysis is based on the assumption that the market index components increase or decrease by a reasonable shift, with all other variables remain constant and that the fair value of the equities move according to the historical correlation with the market index.
GROUP AND EPF Index Fair Value 2020 Changes in Market Index Quoted Equities at Fair Value through Other Comprehensive Income FBM KLCI Domestic 151,324,399 (RM’000) MSCI World Global 218,930,782 GROUP AND EPF Index Quoted Equities at Fair Value through Other Comprehensive Income 370,255,181 Fair Value 2019 Changes in Market Index Sensitivity Impact to the Financial Assets at Fair Value through Other Comprehensive Income Reserve Increase/(Decrease) (RM’000) +5% -5% +10% -10% 6,224,698 (7,909,616) 18,902,872 (14,128,210) Sensitivity Impact to the Financial Assets at Fair Value through Other Comprehensive Income Reserve Increase/(Decrease) (RM’000) +5% -5% +10% -10% 6,621,197 (6,405,550) 14,852,681 (5,464,090) FBM KLCI Domestic 136,717,680 (RM’000) MSCI World Global 176,733,936 313,451,616 306 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.
FINANCIAL RISK (CONT’D.)

36.3 Market Risk (Cont’d.)

b.

Interest Rate Risk Interest rate risk arises from investments in loan with floating interest rate instruments and fixed income instruments under Fair Value through Other Comprehensive Income and through Profit or Loss.

The EPF has put in place an interest rate hedging policy for its fixed income portfolios classified as Fair Value through Other Comprehensive Income and through Profit or Loss.
The objective of the policy is to hedge its exposure against changes in the fair value of assets arising from interest rate movements.
The table below summarises the sensitivity of fixed income instruments on the Profit before Tax and Financial Assets at Fair Value through Other Comprehensive Income Reserve arising from changes in the interest rates by 100 basis points based on the assumption that the positions are unhedged: GROUP 2020 Impact on Profit before Tax when Interest Rates Change Impact on Financial Assets at Fair Value through Other Comprehensive Income Reserve when Interest Rates Change ± 100 Basis Points Increase/(Decrease) (RM’000) ± 100 Basis Points Increase/(Decrease) (RM’000) +100bps -100bps +100bps -100bps Fixed Income Instruments (1,770,270) 1,770,270 (8,253,181) 8,253,181 GROUP 2019 Impact on Profit before Tax when Interest Rates Change Impact on Financial Assets at Fair Value through Other Comprehensive Income Reserve when Interest Rates Change ± 100 Basis Points Increase/(Decrease) (RM’000) ± 100 Basis Points Increase/(Decrease) (RM’000) Fixed Income Instruments +100bps (877,476) -100bps 877,476 +100bps -100bps (6,947,119) 6,947,119 307 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.
FINANCIAL RISK (CONT’D.)

36.3 Market Risk (Cont’d.)

b.

Interest Rate Risk (Cont’d.)

The table below summarises the sensitivity of fixed income instruments on the Profit before Tax and Financial Assets at Fair Value through Other Comprehensive Income Reserve arising from changes in the interest rates by 100 basis points based on the assumption that the positions are unhedged: (Cont’d.)
EPF 2020 Impact on Profit before Tax when Interest Rates Change Impact on Financial Assets at Fair Value through Other Comprehensive Income Reserve when Interest Rates Change ± 100 Basis Points Increase/(Decrease) (RM’000) ± 100 Basis Points Increase/(Decrease) (RM’000) +100bps -100bps +100bps -100bps Fixed Income Instruments (1,667,695) 1,667,695 (8,253,181) 8,253,181 EPF 2019 Impact on Profit before Tax when Interest Rates Change Impact on Financial Assets at Fair Value through Other Comprehensive Income Reserve when Interest Rates Change ± 100 Basis Points Increase/(Decrease) (RM’000) ± 100 Basis Points Increase/(Decrease) (RM’000) Fixed Income Instruments +100bps (771,252) -100bps 771,252 +100bps -100bps (6,947,119) 6,947,119 308 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.
FINANCIAL RISK (CONT’D.)

36.3 Market Risk (Cont’d.)

c. Foreign Exchange Risk EPF invests globally and is exposed to foreign exchange risk arising from exposures to various foreign currencies other than Ringgit Malaysia.

EPF has put in place a foreign currency hedging policy to protect its global investment assets against the adverse movement in foreign exchange rate.
At minimum, 50% of the global fixed income investments are hedged whereas global equities and other global exposures are hedged where appropriate.

Derivatives include Forward Contracts and Cross Currency Swaps are used strictly to hedge against foreign exchange risk for the global investments.
The following table summarises the carrying amount of global investments of the Group and EPF by currencies as at the Statements of Financial Position date: GROUP AND EPF 2020 2019 Currency United States Dollar Euro Hong Kong Dollar Japanese Yen Singapore Dollar South Korean Won Pound Sterling Taiwan Dollar Thai Baht Indonesian Rupiah Australian Dollar Others Global Investments (RM’000) 107,382,762 42,188,863 22,848,561 16,783,560 16,128,667 15,373,126 14,202,964 13,791,182 11,884,148 9,413,624 7,953,112 28,909,198 306,859,767 Global Investments (RM’000) 84,728,508 33,035,394 19,933,875 12,840,240 16,164,903 10,374,744 16,355,631 8,904,685 9,836,383 9,613,709 7,106,937 % 35 14 7 5 5 5 5 4 4 3 3 10 100 23,971,801 252,866,810 % 34 13 8 5 6 4 6 4 4 4 3 9 100 309 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.
FINANCIAL RISK (CONT’D.)

36.3 Market Risk (Cont’d.)

c. Foreign Exchange Risk (Cont’d.)

The following table shows the sensitivity of the Group and EPF’s global investments on the Profit before Tax and Financial Assets at Fair Value through Other Comprehensive Income Reserve, based on a reasonable shift in movement in foreign exchange rates, assuming the portfolio is unhedged, with all other risk factors remain constant.
GROUP AND EPF 2020 Impact on Profit before Tax when the Movement in Exchange Rates Impact on Financial Assets at Fair Value through Other Comprehensive Income Reserve when Movement in Exchange Rates Strengthening/(Weakening) (RM’000) Strengthening/(Weakening) (RM’000) + 3% - 3% + 3% - 3% United States Dollar 1,770,339 (1,770,339) 1,451,143 (1,451,143) Euro Hong Kong Dollar Japanese Yen Singapore Dollar South Korean Won Pound Sterling Taiwan Dollar Thai Baht Indonesian Rupiah Australian Dollar Others 575,063 (575,063) - - 41,836 22,699 1,585 75,302 - 30 1,607 116,390 25,741 (41,836) (22,699) (1,585) (75,302) - (30) (1,607) (116,390) (25,741) 690,602 685,457 461,671 461,161 459,608 350,787 413,735 356,494 280,802 122,204 841,535 (690,602) (685,457) (461,671) (461,161) (459,608) (350,787) (413,735) (356,494) (280,802) (122,204) (841,535) 2,630,592 (2,630,592) 6,575,199 (6,575,199) 310 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.
FINANCIAL RISK (CONT’D.)

36.3 Market Risk (Cont’d.)

c. Foreign Exchange Risk (Cont’d.)

The following table shows the sensitivity of the Group and EPF’s global investments on the Profit before Tax and Financial Assets at Fair Value through Other Comprehensive Income Reserve, based on a reasonable shift in movement in foreign exchange rates, assuming the portfolio is unhedged, with all other risk factors remain constant.

(Cont’d.)
GROUP AND EPF 2019 Impact on Profit before Tax when the Movement in Exchange Rates Impact on Financial Assets at Fair Value through Other Comprehensive Income Reserve when Movement in Exchange Rates Strengthening/(Weakening) (RM’000) Strengthening/(Weakening) (RM’000) + 3% - 3% + 3% - 3% United States Dollar 1,008,402 (1,008,402) 1,533,451 (1,533,451) Euro Hong Kong Dollar Japanese Yen Singapore Dollar South Korean Won Pound Sterling Taiwan Dollar Thai Baht Indonesian Rupiah Australian Dollar Others Interpretation of Impact 273,603 (273,603) - 15,206 37,200 - - (15,206) (37,200) - 114,308 (114,308) - 7 577 108,209 16,929 - (7) (577) (108,209) (16,929) 717,459 598,016 370,002 447,747 311,243 376,361 267,141 295,085 287,834 104,999 702,225 (717,459) (598,016) (370,002) (447,747) (311,243) (376,361) (267,141) (295,085) (287,834) (104,999) (702,225) 1,574,441 (1,574,441) 6,011,563 (6,011,563) The Group and EPF measure the sensitivity of foreign exchange on the net open positions denominated in foreign balances during an adverse movement of all foreign currencies against Ringgit Malaysia.
The result implies that the Group and EPF may be subject to additional translation gains/(losses) in the event Ringgit Malaysia strengthens/(weakens) against other currencies and vice versa.

311 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.

FINANCIAL RISK (CONT’D.)


36.4 Fair Value of Financial Instruments and Non-Financial Assets The Group and EPF adopted MFRS 13 Fair Value Measurement which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The measurement assumes that the transaction to sell the asset or to transfer the liability takes place either in the principal market or in the absence of a principal market, in the most advantageous market.

Fair Value Hierarchy i. ii.

Level 1 Level 1 fair value is derived from quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
Level 2 Level 2 fair value is estimated using inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly.

iii.

Level 3 Level 3 fair value is estimated using unobservable inputs for the assets and liabilities.

EPF’s operational process in respect of the measurement of Level 3 fair values are determined and validated by a function independent of the business unit underlying the risks.
Finance Department establishes the accounting policies and procedures governing valuation and is responsible for ensuring compliance with all relevant accounting standards.

The investment team and a team within the Finance Department which oversees the fair value measurements, including Level 3 fair values, report directly to the Chief Investment Officer and Chief Financial Officer.
312 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.

FINANCIAL RISK (CONT’D.)

36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)

a.

The following table shows the financial instruments and non-financial assets carried at fair value and those not carried at fair value for which fair value is disclosed, together with their carrying amounts as shown in the Statements of Financial Position.
GROUP 2020 Fair Value of Financial Instruments Carried at Fair Value Fair Value of Financial Instruments and Non- Financial Assets Not Carried at Fair Value Total Fair Value Carrying Amount Level 1 (RM’000) Level 2 (RM’000) Level 3 (RM’000) Total (RM’000) Level 1 (RM’000) Level 2 (RM’000) Level 3 (RM’000) Total (RM’000) (RM’000) (RM’000) Assets Financial Assets Recurring Fair Value Measurement Financial Assets at Fair Value through Profit or Loss Financial Assets at Fair Value through Other Comprehensive Income Non-Recurring Fair Value Measurement Deposits with Financial Institutions Receivables and Deposits Loans, Advances and Financing Investment Assets at Amortised Cost Non-Financial Assets Non-Recurring Fair Value Measurement Receivables and Prepayments Assets Held for Sale Investment Properties Liabilities Financial Liabilities Recurring Fair Value Measurement Financial Liabilities at Fair Value through Profit or Loss Non-Recurring Fair Value Measurement Payables and Accrued Liabilities Deposits and Advances Loans and Overdrafts 162,138 4,723,800 51,710,954 56,596,892 - - - - 56,596,892 56,596,892 370,255,181 115,369,293 3,025,645 488,650,119 - - - - 488,650,119 488,650,119 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 62,523,516 - 62,523,516 62,523,516 62,523,516 - 3,509,697 - 3,509,697 3,509,697 3,509,697 - 56,995,467 33,948,325 90,943,792 90,943,792 90,927,326 - 322,042,827 - 322,042,827 322,042,827 296,922,285 - - - 650,787 34,685 - - 650,787 650,787 650,787 34,685 34,685 23,733 1,256,513
 36,900,873 38,157,386 38,157,386 24,543,026 - (435,227) - (435,227) - - - - (435,227) (435,227) - - - - - - - - - - - - - (4,987,785) - (4,987,785) (4,987,785) (4,987,785) - (33,044,496) - (33,044,496) (33,044,496) (32,983,839) - (17,316,295) (2,271,230) (19,587,525) (19,587,525) (19,474,813) 370,417,319 119,657,866 54,736,599 544,811,784 - 391,664,916 68,577,968 460,242,884 1,005,054,668 966,465,717 313 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.
FINANCIAL RISK (CONT’D.)

36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)

a.

The following table shows the financial instruments and non-financial assets carried at fair value and those not carried at fair value for which fair value is disclosed, together with their carrying amounts as shown in the Statements of Financial Position.

(Cont’d.)
GROUP 2019 Fair Value of Financial Instruments Carried at Fair Value Fair Value of Financial Instruments and Non- Financial Assets Not Carried at Fair Value Total Fair Value Carrying Amount Level 1 (RM’000) Level 2 (RM’000) Level 3 (RM’000) Total (RM’000) Level 1 (RM’000) Level 2 (RM’000) Level 3 (RM’000) Total (RM’000) (RM’000) (RM’000) Assets Financial Assets Recurring Fair Value Measurement Financial Assets at Fair Value through Profit or Loss Financial Assets at Fair Value through Other Comprehensive Income Non-Recurring Fair Value Measurement Deposits with Financial Institutions Receivables and Deposits Loans, Advances and Financing Investment Assets at Amortised Cost Non-Financial Assets Non-Recurring Fair Value Measurement Receivables and Prepayments Assets Held for Sale Investment Properties Liabilities Financial Liabilities Recurring Fair Value Measurement Financial Liabilities at Fair Value through Profit or Loss Non-Recurring Fair Value Measurement Payables and Accrued Liabilities Deposits and Advances Loans and Overdrafts 259,908 2,909,315 14,199,299 17,368,522 313,451,616 106,197,097 27,733,259 447,381,972 - - - - - - - 17,368,522 17,368,522 - 447,381,972 447,381,972 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 57,117,886 - 57,117,886 57,117,886 57,117,886 - 3,659,861 - 3,659,861 3,659,861 3,659,861 - 60,862,866 34,390,379 95,253,245 95,253,245 94,816,688 - 321,879,281 - 321,879,281 321,879,281 304,326,067 - - 74,834 838,128 - - 74,834 74,834 74,834 838,128 838,128 662,200 - 32,798,531
 861,428 33,659,959 33,659,959 23,930,684 - (371,880) - (371,880) - - - - (371,880) (371,880) - - - - - - - - - - - - - (4,828,799) - (4,828,799) (4,828,799) (4,828,799) - (34,637,464) - (34,637,464) (34,637,464) (34,398,206) - (18,211,688) - (18,211,688) (18,211,688) (18,126,680) 313,711,524 108,734,532 41,932,558 464,378,614 - 419,553,436 35,251,807 454,805,243 919,183,857 891,613,149 314 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.
FINANCIAL RISK (CONT’D.)

36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)

a.

The following table shows the financial instruments and non-financial assets carried at fair value and those not carried at fair value for which fair value is disclosed, together with their carrying amounts as shown in the Statements of Financial Position.

(Cont’d.)
EPF 2020 Fair Value of Financial Instruments Carried at Fair Value Fair Value of Financial Instruments and Non- Financial Assets Not Carried at Fair Value Total Fair Value Carrying Amount Level 1 (RM’000) Level 2 (RM’000) Level 3 (RM’000) Total (RM’000) Level 1 (RM’000) Level 2 (RM’000) Level 3 (RM’000) Total (RM’000) (RM’000) (RM’000) Assets Financial Assets Recurring Fair Value Measurement Financial Assets at Fair Value through Profit or Loss Financial Assets at Fair Value through Other Comprehensive Income Non-Recurring Fair Value Measurement Deposits with Financial Institutions Receivables and Deposits Loans, Advances and Financing Investment Assets at Amortised Cost Non-Financial Assets Non-Recurring Fair Value Measurement Receivables and Prepayments Assets Held for Sale Investment Properties Liabilities Financial Liabilities Recurring Fair Value Measurement Financial Liabilities at Fair Value through Profit or Loss Non-Recurring Fair Value Measurement Payables and Accrued Liabilities Deposits and Advances 123,786 4,382,197 49,277,400 53,783,383 - - - - 53,783,383 53,783,383 370,255,181 105,274,209 132,415 475,661,805 - - - - 475,661,805 475,661,805 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 61,245,333 - 61,245,333 61,245,333 61,245,333 - 2,375,218 - 2,375,218 2,375,218 2,375,218 - 55,539,744 - 55,539,744 55,539,744 55,539,744 - 322,976,715 - 322,976,715 322,976,715 297,781,435 - - - 19,936 9,185 - - 19,936 9,185 19,936 9,185 19,936 6,291 942,452 956,032 1,898,484 1,898,484 1,081,978 -
 (275,117) - (275,117) - - - - (275,117) (275,117) - - - - - - - - - - (2,233,816) (364,125) - - (2,233,816) (2,233,816) (2,233,816) (364,125) (364,125) (364,125) 370,378,967 109,381,289 49,409,815 529,170,071 - 440,510,642 956,032 441,466,674 970,636,745 944,622,065 315 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.
FINANCIAL RISK (CONT’D.)

36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)

a.

The following table shows the financial instruments and non-financial assets carried at fair value and those not carried at fair value for which fair value is disclosed, together with their carrying amounts as shown in the Statements of Financial Position.

(Cont’d.)
EPF 2019 Fair Value of Financial Instruments Carried at Fair Value Fair Value of Financial Instruments and Non- Financial Assets Not Carried at Fair Value Total Fair Value Carrying Amount Level 1 (RM’000) Level 2 (RM’000) Level 3 (RM’000) Total (RM’000) Level 1 (RM’000) Level 2 (RM’000) Level 3 (RM’000) Total (RM’000) (RM’000) (RM’000) Assets Financial Assets Recurring Fair Value Measurement Financial Assets at Fair Value through Profit or Loss Financial Assets at Fair Value through Other Comprehensive Income Non-Recurring Fair Value Measurement Deposits with Financial Institutions Receivables and Deposits Loans, Advances and Financing Investment Assets at Amortised Cost Non-Financial Assets Non-Recurring Fair Value Measurement Receivables and Prepayments Assets Held for Sale Investment Properties Liabilities Financial Liabilities Recurring Fair Value Measurement Financial Liabilities at Fair Value through Profit or Loss Non-Recurring Fair Value Measurement Payables and Accrued Liabilities Deposits and Advances 186,703 2,613,741 13,597,574 16,398,018 313,451,616 95,602,308 25,079,030 434,132,954 - - - - - - - 16,398,018 16,398,018 - 434,132,954 434,132,954 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 54,701,006 - 54,701,006 54,701,006 54,701,006 - 2,290,778 - 2,290,778 2,290,778 2,290,778 - 59,769,327 - 59,769,327 59,769,327 59,769,327 - 322,744,113 - 322,744,113 322,744,113 305,190,360 - - - 33,751 132,435 1,890,568 - - - 33,751 33,751 132,435 132,435 33,751 75,666 1,890,568 1,890,568 1,157,023 -
 (249,901) - (249,901) - - - - (249,901) (249,901) - - - - - - - - - - (2,043,029) (297,151) - - (2,043,029) (2,043,029) (2,043,029) (297,151) (297,151) (297,151) 313,638,319 97,966,148 38,676,604 450,281,071 - 439,221,798 - 439,221,798 889,502,869 871,158,802 316 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.
FINANCIAL RISK (CONT’D.)

36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)

b.

Policy of Transfer between Levels The fair value of an asset to be transferred between levels is determined by the Group and EPF as of the date of the event or change in circumstances that caused the transfer.

There has been no transfer between Level 1 and Level 2 during the financial year.
c. This note provides information on how the Group and EPF determine the fair values of various financial instruments and non-financial assets: Fair Value of Financial Instruments Carried at Fair Value GROUP Fair Value as at 2020 (RM’000) 2019 (RM’000) Fair Value Hierarchy Valuation Technique Used and Key Inputs Financial Assets: Financial Assets at Fair Value through Profit or Loss Warrants Rights Irredeemable Convertible Preference Shares Redeemable Convertible Preference Shares 30,693 65,775 Level 1 Quoted bid prices in an active market.
667 420 Level 1 Quoted bid prices in an active market.

92,426 120,368 Level 1 Quoted bid prices in an active market.

- 140 Level 1 Quoted bid prices in an active market.

Forward Contracts 2,841,274 1,095,082 Private Debt Securities 312,062 103,747 Private Debt Fund 241,311 - Level 2 The reference value is using observable exchange rates from publicly available sources and through extrapolation and interpolation techniques.
Level 2 Valued by referring to observable quoted prices with prices represented on arms- length basis for identical assets and liabilities.

Level 3 The Net Asset Value (NAV) of the investments which is based on prorating of the equity portion of the underlying investments as the fair value due to unavailability of observable comparison as benchmark.

317 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.

FINANCIAL RISK (CONT’D.)


36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)

c. This note provides information on how the Group and EPF determine the fair values of various financial instruments and non-financial assets: (Cont’d.)

Fair Value of Financial Instruments Carried at Fair Value (Cont’d.)

GROUP Fair Value as at 2020 (RM’000) 2019 (RM’000) Fair Value Hierarchy Valuation Technique Used and Key Inputs Financial Assets at Fair Value through Profit or Loss (Cont’d.)
Bonds and Sukuk 1,122,300 1,304,227 Bonds and Sukuk 2,686,085 - Cross Currency Swaps 99,503 79,061 Interest Rate Swaps 14,582 4,341 Derivatives 8,782 34,371 Derivatives 690,270 - Rental Guarantees 2,005 2,170 Level 2 Valued by referring to observable quoted prices with prices represented on arms- length basis for identical assets and liabilities.

Level 3 Fair value is estimated based on expected future cash flows of the investment and agreed internal rate of return.
Level 2 Valued by discounting anticipated future standard market cash flows using interest rate yield curves developed from observable and publicly available quoted rates.

Level 2 The reference value is using observable exchange rates from publicly available sources and through extrapolation and interpolation techniques.

Level 2 The reference value is using observable exchange rates from publicly available sources and through extrapolation and interpolation techniques.
Level 3 Fair value is estimated based on expected future cash flows of the investment and agreed internal rate of return.

Level 2 Fair value is determined by the valuation latest valuation technique based reports of the investment properties.

318 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.

FINANCIAL RISK (CONT’D.)

36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)
c. This note provides information on how the Group and EPF determine the fair values of various financial instruments and non-financial assets: (Cont’d.)

Fair Value of Financial Instruments Carried at Fair Value (Cont’d.)

GROUP Fair Value as at 2020 (RM’000) 2019 (RM’000) Fair Value Hierarchy Valuation Technique Used and Key Inputs Financial Assets at Fair Value through Profit or Loss (Cont’d.)
Equity Instruments 1,461,453 665,540 Alternative Investments Alternative Investments 1,093,352 31,993,262 - - Level 3 The Net Asset Value (NAV) of the is based on investments which prorating of the equity portion of the underlying investments, discounted cash flow, market or income approach is used to derive the fair value due to unavailability of observable comparison as benchmark.

Level 3 Fair value is estimated based on expected future cash flows of the investment and agreed internal rate of return.
Level 3 The Net Asset Value (NAV) of the investments which is based on prorating of the equity portion of the underlying investments as the fair value due to unavailability of observable comparison as benchmark.

Investment Assets Held for Trading Direct Investments 38,352 73,205 Level 1 Quoted bid prices in an active market.
Direct Investments 323,292 286,316 Level 2 Fair value by referring to observable quoted prices other than quoted prices which included in Level 1 for assets and liabilities directly or indirectly.

319 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.

FINANCIAL RISK (CONT’D.)

36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)
c. This note provides information on how the Group and EPF determine the fair values of various financial instruments and non-financial assets: (Cont’d.)

Fair Value of Financial Instruments Carried at Fair Value (Cont’d.)

GROUP Fair Value as at 2020 (RM’000) 2019 (RM’000) Fair Value Hierarchy Valuation Technique Used and Key Inputs Investment Assets Held for Trading (Cont’d.)
Alternative Investments 13,545,221 13,533,759 Level 3 The Net Asset Value (NAV) of the investments which is based on prorating of the equity portion of the underlying investments, discounted cash flow, market or income approach is used to derive the fair value due to unavailability of observable comparison as benchmark.

Financial Assets at Fair Value through Other Comprehensive Income Quoted Equities 370,255,181 313,451,616 Level 1 Quoted bid prices in an active market.
Unquoted Equities 3,025,645 27,733,259 Perpetual Fixed 1,225,852 608,859 Income Instruments Malaysian 12,665,105 12,759,341 Government Securities Government 25,111,043 25,911,341 Investment Issues Level 3 The Net Asset Value (NAV) of the investments which is based on prorating of the equity portion of the underlying investments or discounted cash flow is used to derive the fair value due to unavailability of observable comparison as benchmark.
Level 2 Valued by referring to observable quoted prices with prices represented on arms- length basis for identical assets and liabilities.

Level 2 Valued by referring to observable quoted prices with prices represented on arms- length basis for identical assets and liabilities.

Level 2 Valued by referring to observable quoted prices with prices represented on arms- length basis for identical assets and liabilities.
320 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.

FINANCIAL RISK (CONT’D.)

36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)

c. This note provides information on how the Group and EPF determine the fair values of various financial instruments and non-financial assets: (Cont’d.)

Fair Value of Financial Instruments Carried at Fair Value (Cont’d.)
GROUP Fair Value as at 2020 (RM’000) 2019 (RM’000) Fair Value Hierarchy Valuation Technique Used and Key Inputs Financial Assets at Fair Value through Other Comprehensive Income (Cont’d.)

Bonds and Sukuk 52,088,432 46,189,163 Private Debt Securities 24,278,861 20,728,393 Total Financial Assets 545,247,011 464,750,494 Level 2 Valued by referring to observable quoted prices with prices represented on arms- length basis for identical assets and liabilities.


321 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.

FINANCIAL RISK (CONT’D.)

36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)
c. This note provides information on how the Group and EPF determine the fair values of various financial instruments and non-financial assets: (Cont’d.)

Fair Value of Financial Instruments Carried at Fair Value (Cont’d.)
GROUP Fair Value as at 2020 (RM’000) 2019 (RM’000) Fair Value Hierarchy Valuation Technique Used and Key Inputs Financial Liabilities: Financial Liabilities at Fair Value through Profit or Loss Forward Contracts (221,683) (93,909) Cross Currency Swaps (53,177) (155,993) Interest Rate Swaps (160,367) (121,978) Total Financial Liabilities (435,227) (371,880) Total 544,811,784 464,378,614 Level 2 The reference value is using observable exchange rates from publicly available sources and through extrapolation and interpolation techniques.
Level 2 Valued by discounting anticipated future cash flows using standard market interest rate yield curves developed from observable and publicly available quoted rates.

Level 2 Valued by discounting anticipated future cash flows using standard market interest rate yield curves developed from observable and publicly available quoted rates.

322 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.

FINANCIAL RISK (CONT’D.)


36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)

c. This note provides information on how the Group and EPF determine the fair values of various financial instruments and non-financial assets: (Cont’d.)
Fair Value of Financial Instruments and Non-Financial Assets Not Carried at Fair Value GROUP Financial Assets: Fair Value as at 2020 (RM’000) 2019 (RM’000) Fair Value Hierarchy Valuation Technique Used and Key Inputs Deposits with Financial 62,523,516 57,117,886 Level 2 Carrying amount equivalent to fair value.

Institutions Receivables and 3,509,697 3,659,861 Level 2 Carrying amount equivalent to fair value.
Deposits Loans, Advances and Financing Loans Loans to Associates & Joint Ventures and Staffs Corporate & Individual Loans and Financing 53,794,357 57,727,479 Level 2 Valued by referring to observable quoted prices with prices represented on arms- length basis for identical assets and liabilities.

3,201,110 3,135,387 Level 2 Carrying amount equivalent to fair value.
33,948,325 34,390,379 Investment Assets at Amortised Cost Malaysian 149,745,620 152,855,103 Government Securities Government 76,778,802 73,788,169 Investment Issues Level 3 Fair values are estimated based future cash flows of on expected contractual payments, instalment discounted at prevailing rates offered for similar loans to new borrowers with similar credit profiles as at the reporting date.
Level 2 Valued by referring to observable quoted prices with prices represented on arms- length basis for identical assets and liabilities.

Level 2 Valued by referring to observable quoted prices with prices represented on arms- length basis for identical assets and liabilities.

323 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.

FINANCIAL RISK (CONT’D.)

36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)
c. This note provides information on how the Group and EPF determine the fair values of various financial instruments and non-financial assets: (Cont’d.)

Fair Value of Financial Instruments and Non-Financial Assets Not Carried at Fair Value (Cont’d.)

Fair Value as at 2020 (RM’000) 2019 (RM’000) Fair Value Hierarchy Valuation Technique Used and Key Inputs GROUP Investment Assets at Amortised Cost (Cont’d.)
Commercial Papers - 965,390 Bonds and Sukuk 88,710,137 84,373,491 Negotiable Certificates 6,808,268 9,897,128 Total Financial Assets 479,019,832 477,910,273 Level 2 Valued by referring to observable quoted prices with prices represented on arms- length basis for identical assets and liabilities.

Level 2 Valued by referring to observable quoted prices with prices represented on arms- length basis for identical assets and liabilities.


324 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.

FINANCIAL RISK (CONT’D.)

36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)
c. This note provides information on how the Group and EPF determine the fair values of various financial instruments and non-financial assets: (Cont’d.)

Fair Value of Financial Instruments and Non-Financial Assets Not Carried at Fair Value (Cont’d.)

GROUP Fair Value as at 2020 (RM’000) 2019 (RM’000) Fair Value Hierarchy Valuation Technique Used and Key Inputs Non-Financial Assets: Receivables and Prepayments 650,787 74,834 Level 2 Carrying amount equivalent to fair value.
Assets Held for Sale 34,685 838,128 Investment Properties 1,256,513 32,798,531 Investment Properties 36,900,873 861,428 Total Assets 517,862,690 512,483,194 Level 2 Valuation is performed by Accredited recent Independent Valuers with experience land and building based on comparison method which involves the analysis of comparable sales of similar properties.
in valuation of Level 2 Valuation is performed by Accredited recent Independent Valuers with land experience and building based on comparison method which involves the analysis of comparable sales of similar properties.
in valuation of Level 3 Valuation is performed by Accredited Independent Valuers with recent experience in valuation of land and building based on income approach or comparison method which involves the analysis of comparable sales of similar properties and adjusting for factors which can influence the value or price of the said properties.

325 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.

FINANCIAL RISK (CONT’D.)


36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)

c. This note provides information on how the Group and EPF determine the fair values of various financial instruments and non-financial assets: (Cont’d.)

Fair Value of Financial Instruments and Non-Financial Assets Not Carried at Fair Value (Cont’d.)
GROUP Financial Liabilities: Fair Value as at 2020 (RM’000) 2019 (RM’000) Fair Value Hierarchy Valuation Technique Used and Key Inputs Payables and Accrued (4,987,785) (4,828,799) Level 2 Carrying amount equivalent to fair value.

Liabilities Deposits and Advances Deposits and (32,627,684) (34,291,283) Placements of Banks and Other Financial Institutions Level 2 Fair value is estimated using discounted cash flows, applying either market rates, rates offered for deposits of similar remaining maturities.
where applicable, or current Other Deposits and (416,812) (346,181) Level 2 Carrying amount equivalent to fair value.

Advances Loans and Overdrafts Sukuk (1,681,523) (1,842,597) Level 2 Valued based on market prices.

Other Loans and (15,634,772) (16,369,091) Level 2 Carrying amount equivalent to fair value.
Overdrafts Recourse Obligation - (2,271,230) - Cagamas Total Financial Liabilities (57,619,806) (57,677,951) Total 460,242,884 454,805,243 Level 3 Fair values are determined based on discounted cash flows of future instalment payments at prevailing rates quoted by Cagamas Berhad as at reporting date.

326 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.

FINANCIAL RISK (CONT’D.)


36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)

c. This note provides information on how the Group and EPF determine the fair values of various financial instruments and non-financial assets: (Cont’d.)
Fair Value of Financial Instruments Carried at Fair Value EPF Fair Value as at 2020 (RM’000) 2019 (RM’000) Fair Value Hierarchy Valuation Technique Used and Key Inputs Financial Assets: Financial Assets at Fair Value through Profit or Loss Warrants Rights Irredeemable Convertible Preference Shares Redeemable Convertible Preference Shares 30,693 65,775 Level 1 Quoted bid prices in an active market.

667 420 Level 1 Quoted bid prices in an active market.
92,426 120,368 Level 1 Quoted bid prices in an active market.

- 140 Level 1 Quoted bid prices in an active market.

Forward Contracts 2,839,550 1,090,843 Private Debt Securities 312,062 103,747 Private Debt Fund 2,951,584 1,746,412 Bonds and Sukuk 1,122,300 1,304,227 Level 2 The reference value is using observable exchange rates from publicly available sources and through extrapolation and interpolation techniques.
Level 2 Valued by referring to observable quoted prices with prices represented on arms- length basis for identical assets and liabilities.

Level 3 The Net Asset Value (NAV) of the investments which is based on prorating of the equity portion of the underlying investments as the fair value due to unavailability of observable comparison as benchmark.

Level 2 Valued by referring to observable quoted prices with prices represented on arms- length basis for identical assets and liabilities.
327 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.

FINANCIAL RISK (CONT’D.)

36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)

c. This note provides information on how the Group and EPF determine the fair values of various financial instruments and non-financial assets: (Cont’d.)

Fair Value of Financial Instruments Carried at Fair Value (Cont’d.)
EPF Fair Value as at 2020 (RM’000) 2019 (RM’000) Fair Value Hierarchy Valuation Technique Used and Key Inputs Financial Assets at Fair Value through Profit or Loss (Cont’d.)
Bonds and Sukuk 157,663 - Cross Currency Swaps 99,503 79,061 Interest Rate Swaps - 1,492 Derivatives 8,782 34,371 Derivatives 690,270 - Capital Advances to 12,769,841 11,851,162 Subsidiaries Alternative Investments 1,093,352 - Level 3 Fair value is estimated based on expected future cash flows of the investment and agreed internal rate of return.
Level 2 Valued by discounting anticipated future cash flows using standard market interest rate yield curves developed from observable and publicly available quoted rates.

Level 2 The reference value is using observable exchange rates from publicly available sources and through extrapolation and interpolation techniques.

Level 2 The reference value is using observable exchange rates from publicly available sources and through extrapolation and interpolation techniques.
Level 3 Fair value is estimated based on expected future cash flows of the investment and agreed internal rate of return.

Level 3 Fair values are estimated based on expected future cash flows of principal and repayment based on business plan or based on property valuation reports.

interest Level 3 Fair value is estimated based on expected future cash flows of the investment and agreed internal rate of return.
328 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.

FINANCIAL RISK (CONT’D.)

36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)

c. This note provides information on how the Group and EPF determine the fair values of various financial instruments and non-financial assets: (Cont’d.)

Fair Value of Financial Instruments Carried at Fair Value (Cont’d.)
EPF Fair Value as at 2020 (RM’000) 2019 (RM’000) Fair Value Hierarchy Valuation Technique Used and Key Inputs Financial Assets at Fair Value through Profit or Loss (Cont’d.)

Alternative Investments 31,614,690 - Financial Assets at Fair Value through Other Comprehensive Income Level 3 The Net Asset Value (NAV) of the investments which is based on prorating of the equity portion of the underlying investments as the fair value due to unavailability of observable comparison as benchmark.
Quoted Equities 370,255,181 313,451,616 Level 1 Quoted bid prices in an active market.

Unquoted Equities 132,415 25,079,030 Perpetual Fixed 1,225,852 608,859 Income Instruments Malaysian 10,468,525 10,705,111 Government Securities Government 18,204,884 18,380,714 Investment Issues Level 3 The Net Asset Value (NAV) of the investments which is based on prorating of the equity portion of the underlying investments as the fair value due to unavailability of observable comparison as benchmark.
Level 2 Valued by referring to observable quoted prices with prices represented on arms- length basis for identical assets and liabilities.

Level 2 Valued by referring to observable quoted prices with prices represented on arms- length basis for identical assets and liabilities.

Level 2 Valued by referring to observable quoted prices with prices represented on arms- length basis for identical assets and liabilities.
329 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.

FINANCIAL RISK (CONT’D.)

36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)

c. This note provides information on how the Group and EPF determine the fair values of various financial instruments and non-financial assets: (Cont’d.)

Fair Value of Financial Instruments Carried at Fair Value (Cont’d.)
EPF Fair Value as at 2020 (RM’000) 2019 (RM’000) Fair Value Hierarchy Valuation Technique Used and Key Inputs Financial Assets at Fair Value through Other Comprehensive Income (Cont’d.)

Bonds and Sukuk 52,185,620 46,289,018 Private Debt Securities 23,189,328 19,618,606 Total Financial Assets 529,445,188 450,530,972 Level 2 Valued by referring to observable quoted prices with prices represented on arms- length basis for identical assets and liabilities.


330 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.

FINANCIAL RISK (CONT’D.)

36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)
c. This note provides information on how the Group and EPF determine the fair values of various financial instruments and non-financial assets: (Cont’d.)

Fair Value of Financial Instruments Carried at Fair Value (Cont’d.)
EPF Fair Value as at 2020 (RM’000) 2019 (RM’000) Fair Value Hierarchy Valuation Technique Used and Key Inputs Financial Liabilities: Financial Liabilities at Fair Value through Profit or Loss Forward Contracts (220,069) (93,908) Cross Currency Swaps (53,177) (155,993) Interest Rate Swaps (1,871) - Total Financial Liabilities (275,117) (249,901) Total 529,170,071 450,281,071 Level 2 The reference value is using observable exchange rates from publicly available sources and through extrapolation and interpolation techniques.
Level 2 Valued by discounting anticipated future cash flows using standard market interest rate yield curves developed from observable and publicly available quoted rates.

Level 2 Valued by discounting anticipated future cash flows using standard market interest rate yield curves developed from observable and publicly available quoted rates.

331 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.

FINANCIAL RISK (CONT’D.)


36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)

c. This note provides information on how the Group and EPF determine the fair values of various financial instruments and non-financial assets: (Cont’d.)
Fair Value of Financial Instruments and Non-Financial Assets Not Carried at Fair Value EPF Financial Assets: Fair Value as at 2020 (RM’000) 2019 (RM’000) Fair Value Hierarchy Valuation Technique Used and Key Inputs Deposits with Financial 61,245,333 54,701,006 Level 2 Carrying amount equivalent to fair value.

Institutions Receivables and 2,375,218 2,290,778 Level 2 Carrying amount equivalent to fair value.
Deposits Loans, Advances and Financing Loans 53,794,357 57,727,479 Level 2 Valued by referring to observable quoted prices with prices represented on arms- length basis for identical assets and liabilities.

Loans to Subsidiaries 1,745,387 2,041,848 Level 2 Carrying amount equivalent to fair value.
and Staff Investment Assets at Amortised Cost Malaysian 149,745,621 152,855,103 Government Securities Government 76,778,802 73,788,169 Investment Issues Commercial Papers - 965,390 Bonds and Sukuk 89,644,025 85,238,323 Level 2 Valued by referring to observable quoted prices with prices represented on arms- length basis for identical assets and liabilities.

Level 2 Valued by referring to observable quoted prices with prices represented on arms- length basis for identical assets and liabilities.


332 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.

FINANCIAL RISK (CONT’D.)


36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)

c. This note provides information on how the Group and EPF determine the fair values of various financial instruments and non-financial assets: (Cont’d.)

Fair Value of Financial Instruments and Non-Financial Assets Not Carried at Fair Value (Cont’d.)

EPF Investment Assets at Amortised Cost (Cont’d.)


Negotiable Certificates Fair Value as at 2020 (RM’000) 2019 (RM’000) Fair Value Hierarchy Valuation Technique Used and Key Inputs 6,808,267 9,897,128 Level 2 Valued by referring to observable quoted prices with prices represented on arms- length basis for identical assets and liabilities.

Total Financial Assets 442,137,010 439,505,224 Non-Financial Assets: Receivables and Prepayments 19,936 33,751 Level 2 Carrying amount equivalent to fair value.
Assets Held for Sale 9,185 132,435 Investment Properties 942,452 1,890,568 Investment Properties 956,032 - Total Assets 444,064,615 441,561,978 Level 2 Valuation is performed by Accredited recent Independent Valuers with experience land and building based on comparison method which involves the analysis of comparable sales of similar properties.
in valuation of Level 2 Valuation is performed by Accredited recent Independent Valuers with experience land and building based on comparison method which involves the analysis of comparable sales of similar properties.

in valuation of Level 3 Valuation is performed by Accredited Independent Valuers with recent experience in valuation of land and building based on income approach.

333 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 36.
FINANCIAL RISK (CONT’D.)

36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)

c. This note provides information on how the Group and EPF determine the fair values of various financial instruments and non-financial assets: (Cont’d.)

Fair Value of Financial Instruments and Non-Financial Assets Not Carried at Fair Value (Cont’d.)
EPF Financial Liabilities: Fair Value as at 2020 (RM’000) 2019 (RM’000) Fair Value Hierarchy Valuation Technique Used and Key Inputs Payables and (2,233,816) (2,043,029) Level 2 Carrying amount equivalent to fair value.

Accrued Liabilities Deposits and Advances (364,125) (297,151) Level 2 Carrying amount equivalent to fair value.
Total Financial Liabilities (2,597,941) (2,340,180) Total 441,466,674 439,221,798 334 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 36.

FINANCIAL RISK (CONT’D.)

36.4 Fair Value of Financial Instruments and Non-Financial Assets (Cont’d.)
d. The following table provides a reconciliation of Level 3 fair valuation: GROUP 2020 2019 Financial Assets at Fair Value Financial Assets at Fair Value Financial Assets at Fair Value through Profit or Loss Note (RM’000) Financial Assets at Fair Value through Other Comprehensive Income (RM’000) Financial Assets at Fair Value through Profit or Loss (RM’000) Financial Assets at Fair Value through Other Comprehensive Income (RM’000) 14,199,299 27,733,259 12,157,404 20,977,183 1,206,097 (1,169,575) (32,437) - 36.4(d) (i) 6,184,761 - 1,929,184 29,975 - 10,686,005 (3,904,888) (123,062) 869,217 1,062 (562,612) - - 2,865,029 (2,331,701) (242,576) 23,792,355 (23,792,355) - 764,687 7,714,555 (1,727,246) - - (329,613) (53,351) (145,604) (25,895) 51,710,954 3,025,645 14,199,299 27,733,259 At 1 January Adjustments Gain Recognised in Profit or Loss Unrealised Gain Recognised in Other Comprehensive Income Purchase Sales Transfer from Level 3 Transfer Foreign Currency Translation Differences At 31 December EPF 2020 2019 Financial Assets at Fair Value Financial Assets at Fair Value Financial Assets at Fair Value through Profit or Loss Note (RM’000) Financial Assets at Fair Value through Other Comprehensive Income (RM’000) Financial Assets at Fair Value through Profit or Loss (RM’000) Financial Assets at Fair Value through Other Comprehensive Income (RM’000) At 1 January Adjustments 13,597,574 1,206,097 25,079,030 (1,169,575) 11,634,478 18,859,287 - - Gain Recognised in Profit or Loss Unrealised Gain Recognised in Other
 Comprehensive Income 36.4(d) (i) Purchase Sales Transfer At 31 December 5,039,243 - 342,332 29,975 - 15,315 - - (23,792,355) 8,341,153 (2,699,022) 23,792,355 49,277,400 - 1,996,133 (375,369) - 415,261 7,440,249 (1,665,742) - 132,415 13,597,574 25,079,030 i.
Gain recognised in Profit or Loss includes net unrealised gains for Group and EPF amounting RM4,942.87 million (2019: RM930.22 million) and RM4,739.83 million (2019: RM1,118.95 million) respectively.
335 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 n i e g n a h C n o i t l a u a V ) 6 8 2 0 4 6 ( , % 5 - ) 0 0 0 ’ M R ( t f i h S 6 8 2 0 4 6 , % 5 + ) 0 0 0 M R ( ’ ) 0 0 0 M R ( ’ l e u a V r i a F ) 0 0 0 ’ M R ( P U O R G j d e t s u d A V A N - 3 1 7 , 5 0 8 , 2 1 , 5 7 6 0 6 2 2 , % 5 + V A N j d e t s u d A - V A N 0 9 4 , 3 1 2 , 5 4 r i a F t l a s t e s s A a c n a n F i i 8 3 2 0 4 , ) 8 3 2 0 4 ( , 3 6 3 3 , ) 3 6 3 3 ( , 9 2 1 3 , ) 9 2 1 3 ( , 4 1 4 ) 4 1 4 ( 5 3 1 1 , ) 5 3 1 1 ( , 2 2 ) 2 2 ( 7 0 9 8 3 , % 5 + % 5 - % 5 + % 5 - % 5 + % 5 - % 5 + % 5 - % 5 + % 5 - % 5 + % 5 - x 0 5 0 .
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6 3 336 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 ) 0 0 0 ’ M R ( t f i h S ) 0 0 0 M R ( ’ ) 0 0 0 M R ( ’ ) 0 0 0 ’ M R ( P U O R G ) .
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6 3 - - 2 7 5 2 1 , 2 7 5 8 1 , % 5 - s p b 5 2 s p b 5 2 e t a R n o i t a fl n I e t a R t n u o c s i D 0 2 7 , 5 8 2 ) 5 8 4 3 2 2 ( , % 5 - 3 9 4 8 1 , 3 4 6 6 1 , , 8 0 3 % 5 + d e t c e p x E d e t n u o c s i D - 5 8 4 3 2 2 , % 5 + t d e c e p x E d e t n u o c s i D 7 0 7 , 9 6 4 , fi o r P h g u o h t e u a V r l ) .
d ’ t n o C ( s s o L r o r i a F t l a s t e s s A a c n a n F i i A / N A / N s u o a V i r s r e h t O 2 8 6 , 9 6 1 A / N A / N s u o i r a V s r e h t O 4 7 5 , 4 9 9 9 2 , 9 9 1 , 4 1 4 5 9 , 0 1 7 , 1 5 t e s s A e s a B , 2 9 1 1 6 3 1 , % 5 + V A N j d e t s u d A V A N - 6 4 8 , 3 2 2 , 7 2 2 8 2 1 5 1 , % 5 + V A N j d e t s u d A - V A N 5 4 6 , 5 2 0 , 3 s e i t i u q E d e t o u q n U l e u a V r i a F t a A / N , ) 2 9 1 1 6 3 1 ( , % 5 - A / N s u o a V i r s r e h t O 3 1 4 , 9 0 5 ) 2 8 2 1 5 1 ( , % 5 - 9 5 2 , 3 3 7 , 7 2 5 4 6 , 5 2 0 , 3 e v i s n e h e p m o C r e m o c n I 337 r e h t O h g u o h t r NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 n i e g n a h C n o i t l a u a V ) 0 0 0 ’ M R ( t f i h S 1 2 3 7 8 , % 5 + V A N j d e t s u d A V A N - 2 1 4 , 6 4 7 , 1 , 4 1 3 8 2 7 1 , ) 0 0 0 M R ( ’ ) 0 0 0 M R ( ’ ) 1 2 3 7 8 ( , 8 5 5 2 9 5 , % 5 - % 5 + , 1 5 8 , 1 1 6 5 5 5 3 7 , , ) 4 1 3 8 2 7 1 ( , % 5 + V A N j d e t s u d A - V A N 4 7 2 , 6 6 5 , 4 3 % 5 - % 5 + , 1 1 7 , 4 1 t fi o
) 0 0 0 ’ M R ( F P E ) 8 5 5 2 9 5 ( , % 5 - ) 6 5 5 5 3 7 ( , % 5 - 4 7 5 , 7 9 5 , 3 1 0 0 4 , 7 7 2 , 9 4 , 2 5 9 3 5 2 1 , % 5 + V A N j d e t s u d A V A N - 0 3 0 , 9 7 0 , 5 2 1 2 6 6 , % 5 + V A N j d e t s u d A - V A N 5 1 4 , 2 3 1 s e i t i u q E d e t o u q n U , ) 2 5 9 3 5 2 1 ( , % 5 - ) 1 2 6 6 ( , % 5 - e v i s n e h e p m o C r e m o c n I r e h t O h g u o h
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6 3 338 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 37.

RELATED PARTY DISCLOSURES For the purpose of these financial statements, parties are considered to be related to the EPF if EPF has the ability, directly or indirectly, to control or jointly control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa.
Related parties may be individuals or other entities.

Related parties also includes the entities that provide Key Management Personnel services to the Group.

Key Management Personnel are defined as below: Key Management Personnel are those persons having the authority and responsibility for planning, directing and controlling the activities of EPF either directly or indirectly.

The Key Management Personnels include all of EPF’s Board of Directors and its Top Management.
Related parties also include close family members and dependents of the Key Management Personnels as well as entities of which significant voting powers in these entity reside with the Key Management Personnel or their close family members.

Shown below are the significant transactions with Key Management Personnel: a.
Key Management Personnel Amount Due: EPF Contributions* Short Term Employee Benefits: Allowances/Salaries for Board of Directors, Investment Panel and Top Management Benefits in Kind EPF 2020 (RM'000) 2019 (RM'000) 71,245 71,245 46,473 46,473 11,982 891 12,873 11,351 2,112 13,463 * EPF contributions are the credit account balances of the Board Members, Investment Panel members and Top Management.
339 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 37.

RELATED PARTY DISCLOSURES (CONT’D.)

b.

Significant Transactions and Balances with Related Parties EPF is an agency under the Ministry of Finance which reports directly to the Government of Malaysia.

The EPF considers that, for the purpose of MFRS 124 Related Party Disclosures, the Malaysian Government is in the position to exercise significant influence over it.
As a result, the Malaysian Government and the Malaysian Government controlled bodies (collectively referred to as “government related entities”) are related parties to the EPF.
In addition to the transactions detailed elsewhere in the financial statements, EPF has the following transactions which are categorised as significant with related parties during the financial year: EPF Government of Malaysia and Entities Related to the Government of Malaysia: Interest Income and Profit on Investment Purchase and Subscription of Securities and Bonds Drawdown of Loans 2020 (RM’000) 2019 (RM’000) 20,984,476 19,005,850 218,134,185 171,063,140 - 21,813,051 Sales, Maturities and Early Redemption of Securities and Bonds 196,381,985 139,296,694 Repayment and Maturity of Loans 4,014,658 21,251,106 Associates: Net Income Interest and Profit from: Financial Assets at Fair Value through Other Comprehensive Income Investment Assets at Amortised Cost Dividend from Investments: - 98,854 18,951 141,356 Financial Assets at Fair Value through Profit or Loss 63,330 - Financial Assets at Fair Value through Other Comprehensive Income - 78,496 Amount Owing from Associates Deposits with Financial Institutions Financial Assets at Fair Value through Profit or Loss Financial Liabilities at Fair Value through Profit or Loss 4,143,793 6,909,638 2,045,852 130,522 (6,929) (7,292) Financial Assets at Fair Value through Other Comprehensive Income - 1,331,229 340 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 37.
RELATED PARTY DISCLOSURES (CONT’D.)

b.

Significant Transactions and Balances with Related Parties (Cont’d.)
EPF Subsidiaries: Net Income Interest and Profit from: Loans, Advances and Financing Financial Assets at Fair Value through Profit or Loss Investment Assets at Amortised Cost Investment Expenditures Amount Owing from Subsidiaries Deposits with Financial Institutions Receivables, Deposits and Prepayments Financial Assets at Fair Value through Profit or Loss Investment Assets at Amortised Cost 2020 (RM’000) 2019 (RM’000) 20,798 934,265 112,380 (4,616) 35,880 628,493 146,438 (4,874) 1,315,714 1,847,071 20,858 339,738 2,710,273 1,746,412 1,353,786 1,359,130 Information regarding net income and outstanding balances arising from related party transactions as at 31 December 2020 are disclosed in Note 4, Note 5, Note 19, Note 20 and Note 24.
Information regarding impairment losses on receivables and loans during the financial year are disclosed in Note 4 and Note 5.

341 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 38.

OPERATING AND FINANCE LEASES 38.1 Operating Leases The Group and EPF lease out the properties under operating leases with lease terms between one (1) to 105 years.

None of these leases include contingent rentals.
The following table sets out the maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting date: Within 1 Year Between 1 to 2 Years Between 2 to 3 Years Between 3 to 4 Years Between 4 to 5 Years More than 5 Years 38.2 Finance Leases GROUP EPF 2020 (RM’000) 2019 (RM’000) 2020 (RM’000) 2019 (RM’000) 1,538,887 1,433,595 1,355,091 1,303,558 1,238,762 10,361,693 1,423,262 1,318,465 1,224,264 1,145,222 1,072,187 9,029,399 17,231,586 15,212,799 97,137 88,796 77,721 70,052 56,365 531,892 921,963 90,247 80,056 71,840 61,526 60,454 374,314 738,437 Included in Accruals on Miscellaneous Non-Investment Receivables and Deposits is the lease receivable on subleases.
EPF currently subleases a leasehold land which it leased for 59 years.

EPF has classified the sublease as a finance lease because the sublease is for the whole of the remaining term of the head lease.
The following table sets out the maturity analysis of lease receivables, showing the undiscounted lease payments to be received after the reporting date: Within 1 Year Between 1 to 2 Years Between 2 to 3 Years Between 3 to 4 Years Between 4 to 5 Years More than 5 Years Total Undiscounted Lease Payments Receivable Unearned Finance Income Net Investment in the Lease GROUP and EPF 2020 (RM’000) 2019 (RM’000) 1,120 1,120 1,120 1,120 1,120 146,346 151,946 (114,662) 37,284 - - - - - - - - - The Group and EPF have recognised finance income on the net investment in the lease amounting to RM1.66 million (2019: Nil) during the year.
342 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 39.
LIST OF SUBSIDIARIES AS AT 31 DECEMBER 2020 Information on Subsidiaries are as follows: Direct Subsidiaries - EPF: Name of Company Country of Incorporation Principal Activities Effective Interest Effective Interest Held by Non-Controlling Interest Malaysia Building Society Malaysia Berhad Investment holding, money market activities, provision of financing and related financial services Affordable Homes Malaysia Dormant Sdn Bhd# Kwasa Properties Sdn Bhd Malaysia Property investment Kwasa Land Sdn Bhd Malaysia Property development and investment holding Pinggiran Ventures Malaysia Investment holding Sdn Bhd Symphony Insight Sdn Bhd Malaysia Investment holding Ekuiti Merdu Sdn Bhd Malaysia Dormant Kwasa Utama Sdn Bhd Malaysia Property development PPNK – Harta Sdn Bhd Malaysia and investment holding Property development and management YTR Harta Sdn Bhd Malaysia Property investment Common Icon Sdn Bhd Malaysia Property investment Tanjung Wibawa Sdn Bhd Malaysia Investment holding Naungan Sentosa Sdn Bhd Malaysia Investment holding KWASA Global (Jersey) Jersey Investment holding Limited KWASA Invest Limited United Kingdom Research and study provider Kwasa Singapore Solo Pte.
Singapore Investment holding Ltd. Kwasa Singapore Duo Pte.

Singapore Investment holding Ltd. 2020 % 2019 % 2020 % 2019 % - - - - - - - 15 20 - - - - - - - - - - - - - - 15 20 - - - - - - - 343 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 39.

LIST OF SUBSIDIARIES AS AT 31 DECEMBER 2020 (CONT’D.)
Information on Subsidiaries are as follows: (Cont’d.)

Direct Subsidiaries - EPF: (Cont’d.)

Name of Company Country of Incorporation Principal Activities Effective Interest Effective Interest Held by Non-Controlling Interest Kwasa Singapore Trio Pte.

Singapore Investment holding Ltd. Kwasa Capital Limited Cayman Island Investment holding KWASA Europe S.à.r.l.
Luxembourg Investment holding Kwasa Infrastructure I KWASA Capital Partners Limited Kwasa Asia Cayman Island Cayman Island Cayman Island Investment holding Investment holding Investment holding Kwasa Logistics Sdn Bhd Malaysia Investment holding Investment holding fund Merbau Investors Offshore, L.P. Merbau Investors Offshore, II L.P. Merbau Investors Offshore, III L.P. Cayman Island Cayman Island Cayman Island 2020 % 2019 % 2020 % 2019 % 100 100 100 100 100 100 100 100 100 100 100 100 100 99.50 100 99.50 - - - - - - - - - - - - - - 0.50 0.50 Investment holding fund 99.18 99.18 0.82 0.82 Investment holding fund 99.01 99.01 0.99 0.99 Cengal Private Equity Ireland Investment holding fund 99.50 99.50 0.50 0.50 Investments plc Cengal Private Equity Investments II plc Cengal Private Equity Investments III plc Meranti Fund L.P. Meranti Fund II L.P. Jati Private Equity Fund L.P. Jati Private Equity Fund II L.P. Ireland Investment holding fund 99.47 99.47 0.53 0.53 Ireland Investment holding fund 99.53 99.35 0.47 0.65 Cayman Island Cayman Island Cayman Island Cayman Island Investment holding fund 99.25 99.25 0.75 0.75 Investment holding fund 99.25 99.25 0.75 0.75 Investment holding fund Investment holding fund 99 99 99 99 1 1 1 1 344 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 39.
LIST OF SUBSIDIARIES AS AT 31 DECEMBER 2020 (CONT’D.)

Information on Subsidiaries are as follows: (Cont’d.)

Direct Subsidiaries - EPF: (Cont’d.)

Name of Company Country of Incorporation Principal Activities Effective Interest Jati Private Equity Fund III L.P. KWASA US Cayman Island Cayman Island Investment holding fund Investment holding Yarra Development Malaysia Investment holding Holdings (Australia) Sdn Bhd Alpha Real Estate Investment Trust Malaysia Investment holding fund KWASA Europe-I S.à r.l.
Luxembourg Investment holding KWASA Global-I (Jersey) Jersey Investment holding Limited Kwasa Infrastructure Alpha Kwasa Infrastructure Beta Cayman Island Cayman Island Investment holding Investment holding Kwasa Emerald Ireland Investment holding KWASA Korea Limited ADF Kwasa Korea Jersey Korea Investment holding Investment holding Professional Investment Private Real Estate Investment LLC 2020 % 2019 % 99 100 100 100 100 100 100 100 100 100 100 99 100 100 100 100 100 100 100 100 100 100 Kwasa Infrastructure Sapphire Cayman Island Investment holding 100 100 Effective Interest Held by Non-Controlling Interest 2020 % 1 2019 % 1 - - - - - - - - - - - - - - - - - - - - - - Rashid Hussain Berhad# Malaysia Investment holding 98.33 98.33 1.67 1.67 Kwasa Suria Sdn Bhd# Malaysia Dormant Melati Infrastruktur Sdn Malaysia Dormant 100 100 100 100 - - - - Bhd# 345 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 39.
LIST OF SUBSIDIARIES AS AT 31 DECEMBER 2020 (CONT’D.)
Subsidiaries Held through Malaysia Building Society Berhad (MBSB): Name of Company Country of Incorporation Principal Activities Effective Interest Directly by MBSB Through MBSB’s Subsidiary Company 2020 % 100 2019 % 2020 % 100 - 2019 % - - 100 100 - 100 100 100 100 100 100 100 100 - 100 100 - 100 100 100 100 100 100 100 100 100 100 - - 92 - - - - - - - - - - 92 - - - - - - - - MBSB Bank Berhad Malaysia Islamic banking and related financial services Jana Kapital Sdn Bhd Malaysia Investment holding MBSB Properties Sdn Bhd Malaysia Leasing of real property MBSB Development Sdn Malaysia Property development Bhd Prudent Legacy Sdn Bhd Malaysia Dormant Sigmaprise Sdn Bhd Malaysia Dormant MBSB Project Management Malaysia Ceased operation Sdn Bhd# Definite Pure Sdn Bhd Malaysia Dormant Malaya Borneo Building Society Limited (MBBS) Singapore Dormant Idaman Usahamas Sdn Malaysia Property development Bhd# Ombak Pesaka Sdn Bhd& Malaysia Hotel operation MBSB Tower Sdn Bhd Malaysia Property development 88 Legacy Sdn Bhd Malaysia Property development 346 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 39.
LIST OF SUBSIDIARIES AS AT 31 DECEMBER 2020 (CONT’D.)
Subsidiaries Held through Kwasa Land Sdn Bhd (KLSB): Name of Company Country of Incorporation Principal Activities Effective Interest Directly by KLSB Through KLSB’s Subsidiary Company Kwasa Development (3) Malaysia Property development Sdn Bhd Kwasa Development (4) Malaysia Property development Sdn Bhd Kwasa Development (5) Malaysia Property development Sdn Bhd Kwasa Development (6) Malaysia Property development Sdn Bhd Kwasa Development (7) Malaysia Property development Sdn Bhd Kwasa Development (8) Malaysia Property development Sdn Bhd Kwasa Development (9) Malaysia Property development Sdn Bhd Kwasa Development (10) Malaysia Property development Sdn Bhd Kwasa Development (11) Malaysia Property development Sdn Bhd Kwasa Development (12) Malaysia Property development Sdn Bhd Kwasa Development (13) Malaysia Property development Sdn Bhd Kwasa Development (14) Malaysia Property development Sdn Bhd Kwasa Development (15) Malaysia Property development Sdn Bhd Kwasa Development (16) Malaysia Property development Sdn Bhd 2020 % 100 2019 % 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 2020 % 2019 % - - - - - - - - - - - - - - - - - - - - - - - - - - - - 347 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 39.
LIST OF SUBSIDIARIES AS AT 31 DECEMBER 2020 (CONT’D.)

Subsidiaries Held through Kwasa Land Sdn Bhd (KLSB): (Cont’d.)
Name of Company Country of Incorporation Principal Activities Effective Interest Directly by KLSB Through KLSB’s Subsidiary Company 2020 % 100 2019 % 2020 % 100 - 2019 % - 100 100 100 - 100 100 100 - 100 100 100 - 100 100 100 - Kwasa Holdings (1) Malaysia Investment holding Sdn Bhd Kwasa Holdings (3) Malaysia Investment holding Sdn Bhd Kwasa Holdings (4) Malaysia Investment holding Sdn Bhd Kwasa Holdings (5) Malaysia Investment holding Sdn Bhd - - - - - - Kwasa Holdings (2) Malaysia Investment holding 100 100 Sdn Bhd Kwasa Holdings (6) Malaysia Investment holding Sdn Bhd Kwasa Holdings (7) Malaysia Investment holding Sdn Bhd Kwasa Holdings (8) Malaysia Investment holding Sdn Bhd - - - KLSB Business Services Malaysia Provision for 100 Sdn Bhd^ management services - - - - 348 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 39.
LIST OF SUBSIDIARIES AS AT 31 DECEMBER 2020 (CONT’D.)
Subsidiaries Held through KWASA Global (Jersey) Limited (KGJL): Name of Company Country of Incorporation Principal Activities Effective Interest Directly by KGJL Through KGJL’s Subsidiary Company KWASA UK Limited Jersey Investment holding 2020 % 100 2019 % 100 KWASA Global Jersey Investment holding 100 100 Development Limited KWASA Australia II Trust Australia Investment holding KWASA Global Links Jersey Investment holding Limited KWASA Global Finco Jersey Financing company Limited* KWASA Jewel Limited Jersey Investment holding 99.8 100 - 100 99.8 100 100 100 2020 % 2019 % - - - - - - - - - - - - Subsidiaries Held through KWASA Global (Jersey) Limited (KGJL) Direct Subsidiary, Kwasa UK Limited (K.UK): Name of Company Country of Incorporation Principal Activities Effective Interest Directly by K.UK Through K.UK’s Subsidiary Company KWASA UK Solo Limited Portman Square (No.
1) Jersey Jersey Investment holding Investment holding Limited Portman Investments Jersey Property investment Unit Trust - Portman Investments Nominee 1 Limited - Portman Investments Nominee 2 Limited Jersey Investment holding Jersey Investment holding Portman Square (No.
2) Jersey Investment holding Limited 2020 % 100 2019 % 100 - - - - - - - - - - KWASA Arena Limited Jersey Investment holding Knightlights Property SA# Luxembourg Dormant 100 100 100 100 2020 % 2019 % - 100 100 100 100 100 - - - 100 100 100 100 100 - - 349 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 39.

LIST OF SUBSIDIARIES AS AT 31 DECEMBER 2020 (CONT’D.)
Subsidiaries Held through KWASA Global (Jersey) Limited (KGJL) Direct Subsidiary, Kwasa UK Limited (K.UK): (Cont’d.)
Name of Company Country of Incorporation Principal Activities Effective Interest Directly by K.UK Through K.UK’s Subsidiary Company KWASA UK Duo Limited Bridge Unit 2 Limited K2 Tower Bridge Limited Reading Management (Jersey) Limited Reading No.1 Limited Reading (Jersey) Unit Trust* Reading No.2 Limited Reading Nominee No.1 Limited* Jersey Jersey Jersey Jersey Jersey Jersey Jersey Jersey Investment holding Property holding Property holding Investment holding Investment holding Property holding Investment holding Property holding Reading Nominee No.2 Jersey Property holding Limited* KWASA UK Trio Limited KWASA Fulham No.
1 Jersey Jersey Investment holding Investment holding Limited Fulham Broadway Unit Jersey Property holding Trust - Fulham Broadway Jersey Investment holding PTC Limited^ - Fulham Broadway Jersey Investment holding PTC 2 Limited^ KWASA Fulham No.
2 Jersey Investment holding Limited KWASA Hammersmith Jersey Property holding 2020 % 100 2019 % 100 - - - - - - - - - - - - - - - - 100 100 - - - - - - - - - - - - Investment holding 100 100 Limited KWASA UK Quattro Limited KWASA Qube Limited Speke Point Limited* KWASA Super Norwich Limited Jersey Jersey Jersey Jersey Property holding Property holding Property holding KWASA Super Limited Jersey Investment holding 350 - - - - - - - - 2020 % 2019 % - 100 100 100 100 - 100 - - - 100 100 100 100 100 100 - 100 - 100 100 - 100 100 100 100 100 100 100 100 - 100 100 - - 100 100 - 100 100 100 100 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 39.
LIST OF SUBSIDIARIES AS AT 31 DECEMBER 2020 (CONT’D.)

Subsidiaries Held through KWASA Global (Jersey) Limited (KGJL) Direct Subsidiary, Kwasa UK Limited (K.UK): (Cont’d.)
Name of Company Country of Incorporation Principal Activities Effective Interest Directly by K.UK Through K.UKs Subsidiary Company Investment holding 100 100 Property holding KWASA UK Quinto Limited KWASA Rugby Limited BLSSP (PHC 27) Limited* Jersey Jersey United Kingdom Investment holding Property holding Dormant KWASA Nottingham Jersey Property holding Limited BLSSP (PHC 30) Limited* KWASA UK Sixmo Limited KWASA Super Ashton Limited United Kingdom Jersey Jersey Dormant KWASA Super Cannock Jersey Property holding Limited KWASA Super Bursledon Jersey Property holding Limited KWASA Super Grantham Jersey Property holding Limited KWASA Super Leeds Jersey Property holding Limited KWASA Super Newcastle Jersey Property holding Limited KWASA Logix No.1 Jersey Property holding Limited KWASA Logix No.2 Jersey Property holding Limited KWASA Logix No.3 Jersey Property holding Limited KWASA Logix No.4 Jersey Property holding Limited 2020 % 100 2019 % 100 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2020 % 2019 % - 100 - 100 - - 100 100 100 100 100 100 100 100 100 100 - 100 100 100 100 - 100 100 100 100 100 100 100 100 100 100 351 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 39.
LIST OF SUBSIDIARIES AS AT 31 DECEMBER 2020 (CONT’D.)

Subsidiaries Held through KWASA Global (Jersey) Limited (KGJL) Direct Subsidiary, Kwasa UK Limited (K.UK): (Cont’d.)
Name of Company Country of Incorporation Principal Activities Effective Interest Directly by K.UK Through K.UK’s Subsidiary Company KWASA Premier Place Jersey Investment holding Holdco Limited KWASA Premier Place Jersey Investment holding Midco Limited KWASA Premier Place Bidco (UK) Limited Premier Place Propco Limited^ - Premier Place Finance Limited^ KWASA Premier Place Pledgeco (Jersey) Limited* KWASA Premier Place Propco (Jersey) Limited* United Kingdom United Kingdom United Kingdom Investment holding Property holding Financing company Jersey Investment holding Jersey Investment holding Fulham Broadway S.à.r.l.
* Luxembourg Property holding Hammersmith Broadway Luxembourg Property holding S.à.r.l.

* 2020 % 100 2019 % 100 - - - - - - - - - - - - - - 100 100 2020 % - 100 100 100 100 - - - - 2019 % - 100 100 - - 100 100 - - 352 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 39.

LIST OF SUBSIDIARIES AS AT 31 DECEMBER 2020 (CONT’D.)
Subsidiaries Held through KWASA Global (Jersey) Limited (KGJL) Direct Subsidiary, KWASA Australia II Trust (KAT II): Name of Company Country of Incorporation Principal Activities Effective Interest KWASA Goodman Industrial Trust KGIT1A Subtrust KGIT1B Subtrust KGIT1C Subtrust KGIT1D Subtrust KGIT1E Subtrust Australia Investment holding Australia Property holding Australia Property holding Australia Property holding Australia Property holding Australia Property holding Directly by KAT II Through KAT II’s Subsidiary Company 2020 % 60 2019 % 60 - - - - - - - - - - 2020 % 2019 % - 60 60 60 60 60 - 60 60 60 60 60 Subsidiaries Held through KWASA Global (Jersey) Limited (KGJL) Direct Subsidiary, KWASA Global Links Limited (KGLL): Name of Company Country of Incorporation Principal Activities Effective Interest Directly by KGLL Through KGLL’s Subsidiary Company 2020 % 2019 % 2020 % 2019 % KWASA Links Malaysia One Malaysia Investment holding Sdn Bhd KWASA Links Malaysia Two Malaysia Investment holding Sdn Bhd KWASA Links Malaysia Malaysia Investment holding Three Sdn Bhd KWASA Links Malaysia Four Malaysia Investment holding Sdn Bhd KWASA Links Malaysia Five Malaysia Investment holding Sdn Bhd KWASA Links Malaysia Six Malaysia Investment holding Sdn Bhd KWASA Links Malaysia Malaysia Investment holding Seven Sdn Bhd KWASA Links Malaysia Eight Malaysia Investment holding Sdn Bhd KWASA Links Malaysia Nine Malaysia Investment holding Sdn Bhd 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 - - - - - - -
 - - - - - - - - - - - 353 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 39.
LIST OF SUBSIDIARIES AS AT 31 DECEMBER 2020 (CONT’D.)

Subsidiaries Held through KWASA Global (Jersey) Limited (KGJL) Direct Subsidiary, KWASA Global Links Limited (KGLL): (Cont’d.)
Name of Company Country of Incorporation Principal Activities Effective Interest Directly by KGLL Through KGLL’s Subsidiary Company 2020 % 100 100 2019 % 100 100 - - - - - - - - - - - - - - 2020 % 2019 % - - - - 99.4 99.4 99.4 99.4 99.4 99.4 99.4 99.4 99.4 99.4 99.4 99.4 99.4 99.4 KWASA Links Malaysia Ten Malaysia Investment holding Sdn Bhd KWASA Links Malaysia Malaysia Investment holding Eleven Sdn Bhd Links Holdings (GP) Jersey Investment holding Limited Links Holdings LP Links Healthcare REIT Limited Jersey Jersey Investment holding Investment holding Links Bidco Limited Jersey Investment holding (previously known as Links Bidco S.a.r.l.)
- Links Bidco Jersey Property holding Propco 1 Limited (previously known as Links Bidco S.à.r.l.

Propco 1 (Bristol)) - Links Bidco Jersey Property holding Propco 2 Limited (previously known as Links Bidco S.à.r.l.

Propco 2 (Bushey)) - Links Bidco Jersey Property holding Propco 3 Limited (previously known as Links Bidco S.à.r.l.

Propco 3 (Edinburgh)) 354 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 39.
LIST OF SUBSIDIARIES AS AT 31 DECEMBER 2020 (CONT’D.)

Subsidiaries Held through KWASA Global (Jersey) Limited (KGJL) Direct Subsidiary, KWASA Global Links Limited (KGLL): (Cont’d.)

Name of Company Country of Incorporation Principal Activities Effective Interest Directly by KGLL Through KGLL’s Subsidiary Company - Links Bidco Jersey Property holding Propco 4 Limited (previously known as Links Bidco S.à.r.l.
Propco 4 (Gatwick)) - Links Bidco Jersey Property holding Propco 5 Limited (previously known as Links Bidco S.à.r.l.

Propco 5 (Leeds)) - Links Bidco Jersey Property holding Propco 6 Limited (previously known as Links Bidco S.à.r.l.

Propco 6 (Leicester)) - Links Bidco Jersey Property holding Propco 7 Limited (previously known as Links Bidco S.à.r.l.

Propco 7 (Little Aston)) - Links Bidco Jersey Property holding Propco 9 Limited (previously known as Links Bidco S.à.r.l.
Propco 9 (Portsmouth)) 2020 % 2019 % - - - - - - - - - - 2020 % 99.4 2019 % 99.4 99.4 99.4 99.4 99.4 99.4 99.4 99.4 99.4 355 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 39.

LIST OF SUBSIDIARIES AS AT 31 DECEMBER 2020 (CONT’D.)

Subsidiaries Held through KWASA Global (Jersey) Limited (KGJL) Direct Subsidiary, KWASA Global Links Limited (KGLL): (Cont’d.)
Name of Company Country of Incorporation Principal Activities Effective Interest Directly by KGLL Through KGLL’s Subsidiary Company 2020 % 2019 % 2020 % 99.4 2019 % 99.4 99.4 99.4 99.4 99.4 - - - - 99.4 99.4 Jersey Property holding Jersey Property holding Jersey Property holding Jersey Property holding - Links Bidco Propco 10 Limited (previously known as Links Bidco S.à.r.l.

Propco 10 (Podington)) - Links Bidco Propco 11 Limited (previously known as Links Bidco S.à.r.l.
Propco 11 (Southampton)) - Links Bidco Propco 12 Limited (previously known as Links Bidco S.à.r.l.

Propco 12 (Tunbridge Wells)) - Links Bidco Propco 13 Limited (previously known as Links Bidco S.à.r.l.

Propco 13 (Wirral)) - - - - 356 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 39.

LIST OF SUBSIDIARIES AS AT 31 DECEMBER 2020 (CONT’D.)

Subsidiaries Held through KWASA Europe S.à.r.l.


(K. Europe): Name of Company Country of Incorporation Principal Activities Effective Interest Directly by K.Europe Through K.Europe’s Subsidiary Company 2020 % 2019 % 2020 % 2019 % KWASA Delta S.à r.l.

Luxembourg Investment holding KWASA DH Moncheng Luxembourg Property investment S.à r.l.

KWASA Strauss Erfurt S.à r.l.

Luxembourg Property investment KWASA Strauss Wiesbaden Luxembourg Property investment S.à r.l.
KWASA Quattro Holdco Luxembourg Property investment S.à r.l.

KWASA Quattro Berlin Luxembourg Property investment S.à r.l.

KWASA Quattro Luxembourg Property investment Hamburg S.à r.l.

KWASA Prisma 1 S.à r.l.

Luxembourg Investment holding Pershore Sp.

z o.o.

Poland Property investment KWASA Deurne S.à r.l.

Luxembourg Property investment KWASA Breda S.à r.l.

Luxembourg Property investment KWASA Venlo S.à r.l.

Luxembourg Property investment KWASA Korbach S.à r.l.
Luxembourg Property investment KWASA GBC B Sp.

z o.o.

KWASA GBC A Sp.

z o.o.

Poland Poland Property investment Property investment KWASA Strauss - DHL Finco Luxembourg Property financing S.à r.l.

KWASA Europe Finco S.à r.l.

Luxembourg Property financing KWASA Jeden Finco S.à r.l.

Luxembourg Property financing KWASA Moerdijk S.à r.l.

Luxembourg Property investment Haxley Investments Poland Property investment Sp.

z o.o.

PDC Industrial Center 70 Poland Property investment Sp.

z o.o.
z o.o.

Estlin Investments Sp.

z o.o.

Jamestown Sp.

z o.o.

Jarrow Sp.

z o.o.

Poland Poland Poland Property investment Property investment Property investment KWASA GP Lux S.à r.l.

* Luxembourg Property investment Casville Investments Poland Property investment Sp.

z o.o.
z o.o.

* 100 100 100 100 100 - - 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 - - 100 100 100 100 100 - - 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 - - - - - - - - - - 100 100 100 100 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 357 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 39.

LIST OF SUBSIDIARIES AS AT 31 DECEMBER 2020 (CONT’D.)
Subsidiaries Held through KWASA Prisma 1 S.à r.l (K.Prisma 1), Subsidiary to KWASA Europe S.à r.l.

(K.Europe): Name of Company Country of Incorporation Principal Activities Effective Interest KWASA Prisma 2 S.à r.l.
Luxembourg Investment holding KWASA IRE France OPCI SCI Espace Lumiere SCI Ris Orangis Midi de la Plaine EURL France France France France Property holding Property investment Property investment Property investment Midi de la Plaine 3 EURL France Property investment Subsidiaries Held through Kwasa Infrastructure I (K.Infra I): Name of Company Country of Incorporation Principal Activities Effective Interest Macquarie Hyperion Limited Macquarie Helios Holdings Limited Cayman Island Cayman Island Investment holding Investment holding Subsidiaries Held through Symphony Insight Sdn Bhd (SISB): Name of Entity Country of Incorporation Principal Activities Effective Interest Directly by K.Prisma 1 Through K.Prisma 1’s Subsidiary Company 2020 % 100 - - - - - 2019 % 100 - - - - - 2020 % 2019 % - 100 100 100 100 100 - 100 100 100 100 100 Directly by K.Infra I Through K.Infra I’s Subsidiary Company 2020 % 60 - 2019 % 60 - 2020 % - 60 2019 % - 60 Directly by SISB Through SISB’s Subsidiary Company 2020 % 100 100 2019 % 100 100 2020 % - - 2019 % - - Absolute Insight Sdn Bhd Malaysia Investment holding Ivory Insight Sdn Bhd Malaysia Investment holding 358 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 39.
LIST OF SUBSIDIARIES AS AT 31 DECEMBER 2020 (CONT’D.)
Subsidiary Held through Kwasa Asia (K.Asia): Name of Company Country of Incorporation Principal Activities Effective Interest Kwasa China Gateway V Co-Investment Account (EMAS I), L.P. Gateway VI Co-Investment Account (EMAS II), L.P. Cayman Island Cayman Island Cayman Island Investment holding Investment holding Investment holding Subsidiary Held through KWASA US (K.US): Name of Company Country of Incorporation KWASA Liberty KWASA Madison KWASA AG KWASA PCCP Cayman Island Cayman Island Cayman Island Cayman Island Investment holding Investment holding Investment holding Investment holding Principal Activities Effective Interest Subsidiaries Held through Yarra Development Holdings (Australia) Sdn Bhd (Yarra): Name of Company Country of Incorporation Principal Activities Effective Interest Yarra Australia Australia Investment holding Development Pty Ltd Directly by K.Asia Through K.Asia’s Subsidiary Company 2020 % 100 - - 2019 % 100 - - 2020 % - 2019 % - 100 100 100 100 Directly by K.US Through K.US’s Subsidiary Company 2020 % 2019 % 2020 % 2019 % 100 100 100 100 100 100 100 100 - - - - - - - - Directly by Yarra Through Yarra’s Subsidiary Company 2020 % 100 2019 % 100 2020 % - 2019 % - 359 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 39.
LIST OF SUBSIDIARIES AS AT 31 DECEMBER 2020 (CONT’D.)

Subsidiaries Held through KWASA Europe-I S.à.r.l.
(K.Europe-I): Name of Company Country of Incorporation Principal Activities Effective Interest KWASA Europe Finco-I Luxembourg Property financing S.a r.l KWASA Maasvlakte-I B.V. Netherlands Property investment Subsidiary Held through KWASA Global-I (Jersey) Limited (KGJL-I): Name of Company Country of Incorporation Principal Activities Effective Interest KWASA Global Finco-I Jersey Financing company Limited* KWASA UK-I Limited KWASA Logix Sportivo Jersey Jersey Investment holding Property investment Limited Subsidiaries Held through Kwasa Emerald (K.Emerald): Name of Company Country of Incorporation Principal Activities Effective Interest Directly by K.EUROPE-I Through K.EUROPE-I’s Subsidiary Company 2020 % 100 100 2019 % 100 100 2020 % 2019 % - - - - Directly by KGJL-I Through KGJL-I’s Subsidiary Company 2020 % - 100 - 2019 % 100 100 - 2020 % 2019 % - - - - 100 100 Directly by K.Emerald Through K.Emerald’s Subsidiary Company 2020 % 100 100 2019 % 100 100 2020 % - - 2019 % - - Kwasa Breccia Kwasa Mica Ireland Ireland Investment holding Investment holding 360 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 39.
LIST OF SUBSIDIARIES AS AT 31 DECEMBER 2020 (CONT’D.)
Subsidiaries Held through Kwasa Infrastructure Alpha (K.Infra Alpha): Name of Company Country of Incorporation Principal Activities Effective Interest Kwasa Infrastructure Australia Investment holding Oceania Trust Subsidiaries Held through ADF Kwasa Korea Professional Investment Private Real Estate Investment LLC (ADF K. Korea): Name of Company Country of Incorporation Principal Activities Effective Interest ADF Kwasa Dae Korea Property investment Professional Investment Private Real Estate Investment Trust Subsidiaries Held through Tanjung Wibawa Sdn Bhd (TWSB): Name of Company Country of Incorporation Principal Activities Effective Interest Directly by K.Infra Alpha Through K.Infra Alpha’s Subsidiary Company 2020 % 99.9 2019 % 99.9 2020 % - 2019 % - Directly by ADF K. Korea Through ADF K. Korea’s Subsidiary Company 2020 % 99 2019 % 99 2020 % - 2019 % - Directly by TWSB Through TWSB’s Subsidiary Company 2020 % 80 2019 % 80 2020 % - 2019 % - Bukit Jalil Sentral Property Malaysia Property development Sdn Bhd All the above subsidiaries of EPF are not audited by the Auditor General.
^ * & # The company was established/acquired in 2020.

The company was sold/liquidated in 2020.

The company was transferred to Assets Held for Sale in 2020.

The above company is in the process of voluntary winding up as at 31 December 2020.

361 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 40.

LIST OF ASSOCIATES AND JOINT VENTURES AS AT 31 DECEMBER 2020 a.
Details of Associates held directly by EPF are as follows: Name of Entity Country of Incorporation Principal Activities Ownership Interest on Voting Rights 2020 % 2019 % Malaysian Resources Corporation Berhad Malaysia Investment holding and conduct 35.85 35.85 activities relating to construction, property development and management services to its subsidiaries RHB Capital Berhad* Malaysia Dormant RHB Bank Berhad Malaysia Banking - 42.80 41.69 41.55 Nusa Gapurna Development Malaysia Investment holding, management and Sdn Bhd property development Bandar Eco-Setia Sdn Bhd Malaysia Property development and investment Jelas Puri Sdn Bhd Malaysia Property investment, management and development Panca Pesona Sdn Bhd Malaysia Developer of industrial land and housing projects FWD Takaful Berhad Malaysia Insurance Iskandar Investment Berhad Malaysia Investment holding, property 40 34 30 30 20 20 40 34 30 30 20 20 investment and development and provision of shared services to its subsidiaries Iskandar Capital Sdn Bhd Malaysia Investment holding Konsortium Lebuhraya Utara- Malaysia Highway concession operator 29.27 40 29.27 40 Timur (KL) Sdn Bhd 362 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 40.
LIST OF ASSOCIATES AND JOINT VENTURES AS AT 31 DECEMBER 2020 (CONT’D.)

b.
Details of Associates held through EPF’s Subsidiaries are as follows: Name of Entity Country of Incorporation Principal Activities Ownership Interest on Voting Rights 2020 % 2019 % Pinggiran Ventures Sdn Bhd TEI Sdn Bhd Malaysia Investment holding with major investment in highway concession operator SWM Environment Holdings Malaysia Investment holding with major Sdn Bhd Kwasa Land Sdn Bhd investment in the waste collection management company Kwasa Sentral Sdn Bhd Malaysia Property development Naungan Sentosa Sdn Bhd BBCC Development Sdn Malaysia Property development and investment Bhd holding MFBBCC Retail Mall Sdn Malaysia Property development and investment Bhd Ekuiti Merdu Sdn Bhd holding Aspire Insight Sdn Bhd Malaysia Dormant Kwasa Singapore Solo Pte.
Ltd. Wallich Residence Pte.

Ltd. Singapore Property development Kwasa Singapore Duo Pte.

Ltd. TPC Hotel Pte.

Ltd. Singapore Hotel operation Kwasa Singapore Trio Pte.

Ltd. TPC Commercial Pte.


Ltd. Singapore Property investment 49 35 30 20 6 40 20 20 20 49 35 30 20 6 40 20 20 20 Kwasa Infrastructure I Macquarie Hyperion Limited Macquarie Helios Holding Limited Chemoil Storage Limited Marshall Islands Investment holding 27 27 363 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 40.

LIST OF ASSOCIATES AND JOINT VENTURES AS AT 31 DECEMBER 2020 (CONT’D.)
c. Details of Joint Venture held directly by EPF are as follows: Name of Entity Country of Incorporation Principal Activities PLUS Malaysia Berhad Malaysia Investment holding d. Details of Joint Ventures held through EPF’s Subsidiaries are as follows: Name of Entity Country of Incorporation Principal Activities KWASA Global (Jersey) Limited KWASA Global Development Limited Battersea Project Holding Jersey Investment holding Company Limited Battersea Power Station Estate Limited Battersea Power Station Development Company KWASA UK Limited KWASA Arena Limited United Kingdom United Kingdom Investment holding Investment holding The Arena Unit Trust Jersey Investment holding KWASA Jewel Limited PNB Kwasa International Jersey Investment holding Holding Limited Ownership Interest on Voting Rights 2020 % 49 2019 % 49 Ownership Interest on Voting Rights 2020 % 2019 % 20 20 20 50 35 20 20 20 50 35 364 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 40.
LIST OF ASSOCIATES AND JOINT VENTURES AS AT 31 DECEMBER 2020 (CONT’D.)

d. Details of Joint Ventures held through EPF’s Subsidiaries are as follows: (Cont’d.)

Name of Entity Country of Incorporation Principal Activities Ownership Interest on Voting Rights 2020 % 2019 % KWASA Europe S.à r.l.

KG Finance (Lux) S.à r.l.

Luxembourg Property financial services Goodman Basil Logistics Luxembourg Property investment (Lux) S.à r.l.

Goodman Tumbleweed Logistics (Lux) S.à r.l.


Luxembourg Property investment Goodman Pearl Logistics Luxembourg Property investment (Lux) S.à r.l.

Goodman Cardamom Logistics (Lux) S.à r.l.

Luxembourg Property investment Goodman Cyan Logistics Luxembourg Property investment (Lux) S.à r.l.

Goodman Korbach (Lux) Luxembourg Property investment S.à r.l.

Goodman Melanite Luxembourg Property investment Logistics (Lux) S.à r.l.

Goodman Aqua Logistics Luxembourg Property investment (Lux) S.à r.l.
KG Finance Two (Lux) Luxembourg Property financial services S.à r.l.

Goodman Canopic Luxembourg Property investment Logistics (Lux) S.à r.l.

Goodman Ventura Luxembourg Property investment Logistics (Lux) S.à r.l.

Goodman Cardinal Luxembourg Property investment Logistics (Lux) S.à r.l.

Goodman Cadet Logistics Luxembourg Property investment (Lux) S.à r.l.

Goodman Melon Logistics Luxembourg Property investment (Lux) S.à r.l.

Goodman Opera Logistics Luxembourg Property investment (Lux) S.à r.l.
Goodman Sienna Logistics Luxembourg Property investment (Lux) S.à r.l.^ - 365 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 40.

LIST OF ASSOCIATES AND JOINT VENTURES AS AT 31 DECEMBER 2020 (CONT’D.)

d. Details of Joint Ventures held through EPF’s Subsidiaries are as follows: (Cont’d.)
Name of Entity Country of Incorporation Principal Activities Ownership Interest on Voting Rights Grundstück 41 Verwaltungs Germany Property investment GmbH KG Finance Three (Lux) Luxembourg Property investment S.à r.l.^ Goodman Medway Luxembourg Property investment Logistics (Lux) S.à r.l.^ KWASA Europe S.à r.l.

KWASA Delta S.à r.l.
2020 % 90 90 90 2019 % 90 - - KWASA Dietz Germany Germany Investment holding 84.30 84.30 GmbH Kwasa Capital Limited Melati Asia Holdings Limited Pinggiran Ventures Sdn Bhd Cayman Islands Investment holding Pinggiran Muhibbah Sdn Malaysia Investment holding with major Bhd Kwasa Logistics Sdn Bhd VM Andaman Sdn Bhd Malaysia Tanjung Wibawa Sdn Bhd investment in highway concession operator Development, holding and leasing of logistics and warehouse properties Paragon Pinnacle Sdn Bhd Malaysia Property development and investment Eco Horizon Sdn Bhd Malaysia Property development holding Yarra Development Holdings (Australia) Sdn Bhd Yarra Australia Development Pty Ltd Yarra Park City Pty Ltd Australia Property development Malaysia Building Society Berhad Safeena (L) Ltd Labuan Provision of funding for marine vessels ^ * New investment in 2020.
The company was liquidated in 2020.

51 50 50 40 40 49 50 51 50 50 40 40 49 50 366 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 41.

SIGNIFICANT EVENTS 41.1 SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR COVID-19 continues to spread rapidly in 2020 which resulted to a high infection rate across the globe.
In addressing this health crisis, various efforts have been taken to prevent the spread of the pandemic by both the Government of Malaysia and the Government of countries in which Group and EPF subsidiaries’ operate.

The multiple variations of Movement Control Orders (MCO) have been imposed which affect the stock market performance, economy, businesses and employment globally.
The impact of the COVID-19 to the Group and EPF are as follows: a) b) EPF’s investment performance, particularly on the equity portfolios were heavily impacted since both the domestic and global stock market indices have declined significantly in March 2020 before showing a marginal rebound in the second quarter of 2020 until end of 2020.
Nevertheless, with dynamic and active investment strategies together with proactive risk management strategies, the Group and EPF have reported a healthy closing balance of Financial Assets at Fair Value through Other Comprehensive Income Reserve which stood at RM9.20 billion and RM6.68 billion respectively as at 31 December 2020.
Taking the impact of COVID-19 on Malaysia’s economic activity into consideration, Bank Negara Malaysia (BNM) has taken the decision to reduce the Overnight Policy Rate (OPR) for the fourth time in 2020 to 1.75% in the Monetary Policy Committee (MPC) meeting dated 7 July 2020, generally driving local rates down in tandem with the movement of OPR until the end of third quarter of 2020 before normalising higher throughout fourth quarter of 2020.
Apart from this, BNM has also announced COVID-19 relief measures by allowing moratorium on certain loans and financing to individuals, small and medium-sized enterprises (SMEs) and corporations for a duration from April until September in 2020.

As a consequence, the Expected Credit Losses (ECL) recognised by the Group and EPF has increased by RM567.49 million and RM388.57 million respectively in 2020 as compared to the preceding year.
In addition to this, the Group has also recognised modification loss on cash flows arising from lending activities amounting to RM504.75 million in 2020. c) i-Lestari facility was introduced in April 2020 as a short-term measure to ease the financial burden of EPF members and help them supplement their income to support financial needs during COVID-19 crisis.
Under i-Lestari facility, EPF members who aged below 55 years old can withdraw up to RM500 per month from Account 2 for 12 months for the period from April 2020 to March 2021.

As at 31 December 2020, total i-Lestari payments made to members amounted to RM14.55 billion.

d) Reduction in the statutory contribution rate for employee’s shares from 11% to 7% for wages paid for April 2020 to December 2020 with the aim of increasing take-home pay of the employees.
367 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALANNUAL REPORT 2020WWW.KWSP.GOV.MY9 41.

SIGNIFICANT EVENTS (CONT’D.)


41.2 SIGNIFICANT EVENTS SUBSEQUENT TO THE FINANCIAL YEAR Arising from the COVID-19 outbreak, the Government of Malaysia has introduced various initiatives to combat the spread, including travel restrictions, quarantines, closure of business and other venues, lockdown of certain areas as well as introducing stimulus measures for the purpose of providing financial assistance to the impacted group in terms of salary cuts and loss of employment.
As announced in the 2021 National Budget on 6 November 2020, a pre-retirement withdrawal from Account 1 was introduced to EPF members aged less than 55 years old.

Subsequently, i-Sinar facility was introduced which is effective from on 1 January 2021 onwards by virtue of the Order made by the Minister of Finance under Section 54(7) of the EPF Act 1991.

The i-Sinar facility aims to assist EPF members facing financial hardship due to COVID-19 whereby the application is open until 30 June 2021.
Under the i-Sinar facility, EPF members are allowed to withdraw from their Account 1 an amount which shall not exceed RM10,000 for those with savings balance not exceeding RM100,000 and an amount which shall not exceed 10% of his savings or RM60,000, whichever is lesser for those with savings balance more than RM100,000.

The i-Sinar payments to members shall not exceed 6 times.

As of 30 September 2021, RM58.60 billion have been paid under i-Sinar facility.
Subsequent to the announcement on the Phase One of the National Recovery Plan (NRP) by the Prime Minister on 28 June 2021, EPF introduced a new facility named i-Citra to help EPF members tide over the impact of the Movement Control Order (MCO) in the short term.

Effective 12 July 2021, all members below the age of 55 years old are eligible to apply for i-Citra until 30 September 2021, which allows them to withdraw up to a maximum of RM5,000 subject to their funds’ availability in both Account 1 and 2.
The total number of payments for the approved withdrawal amount will not exceed five times, with monthly payment of RM1,000 and minimum payment of RM50, subject to the member’s savings balance.

As of 30 September 2021, RM9.27 billion have been paid under i-Citra facility.

The introduction of both i-Sinar and i-Citra facilities do not require any adjustments to be made for the financial year ended 31 December 2020.
Nevertheless, the COVID-19 impact will likely have a bearing on the Group and EPF’s investment and financial performance in 2021.

The Group and EPF will continuously monitor the extent of the impact of the COVID-19 to the business activities as the severity and duration of the global economic downturn remains uncertain.

The impact could be prolonged from middle to long term period.

The Group and EPF will take necessary actions to mitigate the impact until the recovery is in place.
368 NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 December 2020FINANCIALEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 EPF PROPERTIES IN MALAYSIA No Location Freehold Land Leasehold Land Net Book Value Net Book Value Acreage Square Feet Acreage Square Feet of Land (RM) of Building (RM) 1.
Federal Territory 3.90 169,921.10 3.53 153,766.80 7,423,377.90 387,128,517.23 a. Kuala Lumpur 3.90 169,921.10 3.53 153,766.80 7,423,377.90 383,510,745.77 b. Labuan Selangor Perlis Perak Pulau Pinang Johor Melaka Negeri Sembilan Terengganu 2.

3.

4.

5.

6.

7.

8.

9.

10.

Kelantan 11.

Pahang 12.

Sabah 13.
Sarawak - - - - - 3,617,771.46 23.29 1,014,772.10 24.74 241,631,868.91 56,845,568.52 464,454,435.34 - - 0.74 1.15 - 0.12 0.18 0.19 - - - - - 1.01 1.45 43,995.60 4,295,070.63 7,666,024.56 63,457.60 1,759,144.62 21,518,648.89 32,397.00 3.33 145,054.80 16,070,498.04 91,029,225.22 50,039.78 0.39 16,686.00 9,260,732.00 45,310,033.07 - 2.10 91,913.03 1,936,969.68 6,099,846.54 5,295.00 5.51 239,979.97 6,434,569.25 36,824,656.08 8,000.00 2.90 126,324.00 2,335,369.36 12,607,132.78 8,400.00 0.26 11,151.00 - 9,260,274.56 - - - 9.22 6.96 0.65 405,652.39 7,817,806.43 13,372,428.85 303,151.60 10,437,696.77 33,409,137.19 28,267.40 22,580.92 13,578,635.81 Grand Total 29.57 1,288,824.98 62.05 243,261,161.60 124,639,384.12 1,142,258,996.12 369 FINANCIALSANNUAL REPORT 2020WWW.KWSP.GOV.MY9 GLOSSARY Account 1 Employer 70 per cent of a member’s contributions, which is An employer is a person or party who employs an dedicated specifically for retirement.
employee to work under a contract of service or Account 2 apprenticeship.

Employers include: • Managers, agents, or any persons responsible for the payment of wages to an employee; 30 per cent of a member’s contributions, which can • Any group of persons, whether statutory or non-statutory be utilised for pre-retirement withdrawals to enhance or incorporated; and retirement wellbeing.
Basic Savings • The government and any government department, statutory body, local authority, or other body as specified in the Second Schedule of the EPF Act 1991.

Basic Savings refer to the minimum amount of savings in Financial Planning Account 1 that a member should have upon reaching age 55, as determined by the EPF.
As of 1 January 2019, the Financial planning is an ongoing process to help individuals basic savings quantum has been set at RM240,000, which is make sensible decisions about money in order to achieve equivalent to a monthly retirement income of RM1,000 for certain financial goals according to their life cycle.

20 (240 months) years from age 55 to 75.

Contribution i-Akaun i-Akaun refers to a member’s or employer’s EPF online Contribution is the amount of money paid into a member’s account.
EPF account every month based on the monthly salary of the employee.

EPF contributions are made by both Member employees and employers (on behalf of their employees).

Dividend An EPF member according to the EPF Act is an individual who has an account and savings with the EPF.

Members comprise of private and non-pensionable public sector Dividend is the return to members’ savings from investment employees, and those who have opted to contribute.

activities.
activities.

The dividend for every member’s account is calculated based on an aggregate daily balance.

Nomination Employee A nomination is a written declaration in Form KWSP 4 to elect/nominate one or more individuals to be beneficiaries An employee is a person employed by an employer under (for non-Muslim members) or executors/administrators a contract of service or apprenticeship.

(for Muslim members) of members’ EPF savings upon their death.
Members may also opt to nominate institution (Amanah Raya Berhad) as administrator or trustee.

370 FINANCIALSEMPLOYEES PROVIDENT FUND BOARDANNUAL REPORT 20209 GLOSSARY Pre-Retirement Withdrawals Return On Investment (ROI) Pre-retirement withdrawals have been approved by the Return on Investment (ROI) is the ratio of realised income EPF to allow members to take out a certain amount from gained or lost against the average fund size (at cost) for their savings prior to the retirement age.
The savings can the year.

be withdrawn from Account 2 for Housing Withdrawal, Education Withdrawal, Health Withdrawal, Age 50 Years Social Protection Withdrawal, Withdrawal of Savings of more than RM1 Million and Hajj Withdrawal.

This is to help them prepare for Social protection refers to the government’s programmes retirement.
Retirement Advisory Service (RAS) to promote the welfare of the population, ensuring adequate resources such as food and shelter, while promoting the health and well-being of everyone, including children, the elderly, sick and unemployed.

Since 2014, the EPF began providing free Retirement Advisory Services (RAS) for members at selected EPF offices.
Strategic Asset Allocation (SAA) This includes providing information on the EPF’s services in general, options on retirement savings, and tips on how to The primary goal of the EPF’s Strategic Asset Allocation create financial and retirement plan and boost retirement is to create an asset mix that will provide optimal savings to achieve a reasonable level of comfort during balance between expected risk and return for long-term golden years.

Retirement Planning investments.


Wages Retirement planning is the process of determining Wages are all monetary remuneration due to an employee retirement income goals and the actions necessary to under his/her contract of service or apprenticeship, achieve those goals.

It includes identifying sources of whether it was agreed to be paid monthly, weekly, daily or income, estimating expenses, implementing a savings otherwise.

programme, and managing assets.


Future cash flows are estimated based on life expectancy to determine if the retirement income goal can be achieved in the future.

Retirement Withdrawal Retirement withdrawals allow members to withdraw all of their savings upon reaching certain age, or upon death, incapacitation or leaving the country.

Pensionable employees or those opting for retirement can also make retirement withdrawals.
For retirement withdrawals at age 55 or 60, members can opt to be paid either in lump-sum, in monthly instalments; in a partial sum for any amount at any time, through annual dividends, or a combination of monthly, partial and annual dividends.

371 FINANCIALSANNUAL REPORT 2020WWW.KWSP.GOV.MY9 .

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