Kuala lumpur: The National Trust Fund Bill 2026, passed by the Dewan Rakyat yesterday, aims to bolster the National Trust Fund (KWAN) as the country's intergenerational savings fund. This legislative move seeks to ensure sustainable financial reserves for both current and future generations of the nation. According to BERNAMA News Agency, this bill represents the first comprehensive reform of KWAN since its inception in 1988. The Finance Ministry (MOF) announced in a statement that the reforms are in alignment with the MADANI government's dedication to enhancing public financial management and sustainably safeguarding the nation's wealth. The ministry emphasized that the reforms will ensure that today's national revenues will continue benefiting future generations. The bill proposes the establishment of a National Trust Fund (Incorporated) as a statutory body to replace the current panel structure. This body will be tasked with the administration, management, and investment of the fund. During the transitio n phase, Bank Negara Malaysia (BNM) will continue its role in managing the fund, a responsibility it has held since KWAN's establishment. As of the end of 2024, the fund has grown to RM22.43 billion under BNM's management. The transition will ensure no disruptions to the fund's investments, contracts, or operations, with all assets being transferred to the new statutory body by law. The bill introduces legally-binding provisions for contributions, withdrawals, and investments. It mandates statutory contributions, requiring the Federal Government to contribute a minimum of 0.1 per cent of its projected annual revenue, alongside 2.0 per cent of Petronas dividends and 2.0 per cent of depletable resource export duties, after allocations to state governments. These rates are set as minimum contributions, allowing for additional contributions from the Federal Government when necessary. To preserve and grow the fund's principal, the bill enforces stricter withdrawal discipline, limiting the fund's use to areas suc h as education, healthcare, and climate change mitigation and adaptation. Annual withdrawals are capped at no more than 50 per cent of the expected long-term real rate of return. Any withdrawals beyond this limit require Dewan Rakyat's approval, ensuring prudent investment across approved asset classes, guided by a Strategic Asset Allocation sanctioned by the minister. Finance Minister II Datuk Seri Amir Hamzah Azizan highlighted the importance of the bill in ensuring that resources enjoyed today are held in trust for future generations. He stated that the government is enhancing KWAN as an intergenerational savings fund by ensuring consistent contributions, disciplined withdrawals, and improved governance. This approach aims to preserve and transfer more of the nation's wealth to future generations of Malaysians. Depicted as a strategic step towards establishing a long-term financial reserve, the bill was tabled by Deputy Finance Minister Liew Chin Tong. It garnered a majority vote in favor after extensive debate by 14 Members of Parliament in the Dewan Rakyat and is set to be tabled in the Dewan Negara next.