The Malaysian government has introduced legislation to restrict access to its National Trust Fund (KWAN), a reserve of RM22.43 billion that has been accessed only twice in nearly 40 years.
The bill, tabled by Putrajaya, aims to tighten the criteria for withdrawals from the fund, which was previously used to finance critical national needs such as Covid-19 vaccines.
The move comes as Bank Negara Malaysia intensifies efforts to stabilize the ringgit.
The central bank recently announced measures designed to attract foreign capital and encourage domestic firms to repatriate overseas earnings, signaling a broader push to shore up the currency amid global volatility.
By locking down access to KWAN, the government appears to be prioritizing fiscal discipline and preserving the reserve for genuine emergencies.
The fund’s limited usage history underscores its role as a last-resort safety net rather than a routine fiscal tool.