kuala lumpur: Six government-linked investment companies have committed to investing a total of 120 billion ringgit in domestic direct investment (DDI) over the next five years, according to the Ministry of Finance (MOF).
The pledge was made as part of the first phase of the Ministry of Finance’s “Gear Up” program, which aims to synergize efforts among government agencies and promote growth in key economic sectors.
The ministry said the committed amount was on top of GLIC’s 440 billion ringgit open market investment under its standing investment programme.
Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, said achieving the ambitious targets of the Madani Economic Framework required concerted efforts from the entire country, including the business sector.
“By encouraging GLIC countries to increase their focus on inward investment, this injected capital can equitably benefit Malaysians and create a new economic ecosystem,” he said in a statement.
Anwar further said that with assets under management of over RM1.8 trillion, roughly equivalent to Malaysia’s nominal gross domestic product, GLIC has the financial strength to shape the country’s rise up the economic value chain and transform the lives of Malaysians for the better.
Meanwhile, Anwar said in a post on X that the Gear Up fund would also be used to modernise existing industries such as palm oil and Islamic finance.
The Ministry of Finance further stated that these investments will be primarily targeted towards the energy transition sector, high-growth, high-value industries such as advanced manufacturing, especially in semiconductors, start-ups, investments across the entire life cycle of companies from venture capital to mid-cap companies, and ultimately supporting the IPO of such companies.
“The six GLICs are PT Khazanah Nasional, PT Employees’ Pension Fund (EPF), PT KWAP, PT Permodalan Nasional (PNB), PT Lembaga Tabung Haji and PT Armed Forces Endowment Board (LTAT),” the ministry said, adding that each of the GLICs will have a focus area to lead the Gear Up programme.
The finance ministry said Khazanah will embark on an investment strategy based on the “Creative Nation” framework to boost the nation’s productivity and competitiveness, while KWAP will focus on strengthening Malaysia’s private market in the areas of private equity, infrastructure and real estate, and provide venture capital and catalytic funding to growth-stage companies through Dana Perintis and Dana Pemak.
As for other GLICs, PNB said it aims to modernise Malaysian industries and enterprises into high value-added and sustainable activities, with a particular focus on investing in new industrial estates, supporting palm oil automation and smart agriculture, as well as green and energy transition assets.
“EPF is committed to working with the government to invest in commercially viable and sustainable healthcare solutions, such as building private wards in public hospitals in line with the Ministry of Health’s ‘Health Transformation’ plan, to promote a dignified and prosperous ageing society.”
“Furthermore, Lembaga Tabung Haji will expand the role of Islamic banking, enhance sustainable social impact through Islamic financing instruments for more streamlined payments to the poor, and expand the Islamic financial system through strategic collaborations with other leading financial institutions and market players,” the Ministry of Finance added.
Finally, the ministry said the LTAT aims to enhance pharmaceutical value creation in Malaysia by strengthening the country’s biopharmaceutical manufacturing capacity. – Bernama
