Using Causal Loop Diagram in Understanding Financial Activities of Malaysia Pension Fund

Objective – The aim of the article is to present the development of a simulation framework which identifies Malaysia Pension Fund main sources as well as the financial activities. Methodology/Technique – Numerous factors influencing the financial condition pension fund is summarized. Based on the set of system factors in literature summarization, causal loop diagram is used to analyse the inter-relationships among these factors. Findings – Causal loop diagram shows a relationship between these factors, which can be used in analysing financial condition of a pension fund. In the developed causal loop diagram, it shows the main sources of Malaysia pension fund, the asset allocation, and the future benefit payment. Novelty – The causal loop diagram will then, be used as a dynamic hypothesis of this study and serves as a basis for quantitative models. Type of Paper: Conceptual