In the first half 2022, KWSP investment income dropped by 21%.
Investing flopped! In the first half of this year, KWSP’s investment income fell by 21%.
The KWSP reported that its total investment income from January to June 2022 was RM27 billion, down RM7.06 billion or 21% from the same time the previous year when it was RM34.06 billion.
A global economic downturn and the highest level of inflation seen since 1970 are to blame for the decline in KWSP investment income. Global supply chains have been hampered by the military war between Russia and Ukraine, and raw material costs have increased. The highest level of global inflation in many years has prompted central banks to progressively hike interest rates in response.
The KWSP had anticipated these developments at the start of the year, but they transpired considerably more quickly than anticipated, and the Fed’s rate increases surprised everyone with their size and pace. The capital market had one of its worst first halves of the year in recent memory, and the American stock market had its worst performance in fifty years.
The investment report for the second quarter of 2022 was also made public by KWSP. The overall investment income for KWSP for the second quarter of this year was RM11.14 billion, down from RM14.77 billion during the same period last year by RM3.63 billion. With RM4.88 billion, stocks continued to be a significant source of investment income.
Additionally, RM4.73 billion in investment income was generated by fixed income instruments, RM1.2 billion by infrastructure and real estate, and RM330 million by money market instruments.
In the first half 2022, KWSP investment income dropped by 21%.
Investing flopped! In the first half of this year, KWSP’s investment income fell by 21%.
The KWSP reported that its total investment income from January to June 2022 was RM27 billion, down RM7.06 billion or 21% from the same time the previous year when it was RM34.06 billion.
A global economic downturn and the highest level of inflation seen since 1970 are to blame for the decline in KWSP investment income. Global supply chains have been hampered by the military war between Russia and Ukraine, and raw material costs have increased. The highest level of global inflation in many years has prompted central banks to progressively hike interest rates in response.
The KWSP had anticipated these developments at the start of the year, but they transpired considerably more quickly than anticipated, and the Fed’s rate increases surprised everyone with their size and pace. The capital market had one of its worst first halves of the year in recent memory, and the American stock market had its worst performance in fifty years.
The investment report for the second quarter of 2022 was also made public by KWSP. The overall investment income for KWSP for the second quarter of this year was RM11.14 billion, down from RM14.77 billion during the same period last year by RM3.63 billion. With RM4.88 billion, stocks continued to be a significant source of investment income.
Additionally, RM4.73 billion in investment income was generated by fixed income instruments, RM1.2 billion by infrastructure and real estate, and RM330 million by money market instruments.
