KUALA LUMPUR: Six leading government-linked investment companies have pledged collectively to invest RM120 billion in domestic direct investments (DDI) over the next five years, according to the Ministry of Finance (MoF).
The pledge was made under the first phase of MoF’s “Gear-Up” programme, which aims to synergise efforts across government-linked entities to catalyse growth in key economic sectors.
The ministry said the pledged amount is on top of the RM440 billion in public market investments under the GLICs’ steady state investment programme.
Prime Minister Datuk Seri Anwar Ibrahim, who is also the finance minister, said that achieving the ambitious targets of the Madani Economy framework demands a unified effort from the entire nation, including the corporate sector.
“By getting the GLICs to heighten their focus on domestic investments, this deployed capital can benefit Malaysians equitably and birth new economic ecosystems,” he said in a statement.
Anwar further said that with a combined assets under management valued at over RM1.8 trillion, roughly the size of Malaysia’s nominal gross domestic product, GLICs have the financial capacity to shape the nation’s ascent in the economic value chain and transform Malaysians’ lives for the better.
Meanwhile, in a posting on X, Anwar said the Gear-Up fund will also be allocated for the modernisation agenda of existing industries such as palm oil and Islamic finance.
Additionally, MoF said these investments are primarily directed towards high-growth, high-value industries such as the energy transition sector, advanced manufacturing, especially in the semiconductor space, investments across all life cycles of firms from startups, venture capital to mid-tier companies and finally to support listing of such companies.
“The six GLICs are Khazanah Nasional Bhd, Employees Provident Fund (EPF), The Retirement Fund Inc (KWAP), Permodalan Nasional Bhd (PNB), Lembaga Tabung Haji and the Armed Forces Fund Board (LTAT),” the ministry said, adding that each of these GLICs will have its respective focus areas to lead in the Gear-Up programme.
MoF said Khazanah would embark on its investment strategy anchored on the “A Nation That Creates” framework to increase national productivity and competitiveness, while KWAP would focus on empowering Malaysian private markets across private equity, infrastructure and real estate, providing catalyst funds for venture capital and growth-stage firms via Dana Perintis and Dana Pemacu.
As for the other GLICs, it said that PNB aims at modernising Malaysian industries and corporates towards higher value-added and sustainable activities, with a specific focus on investments in new industrial parks, supporting automation and smart farming in palm oil, and green and energy transition assets.
“EPF will focus on advancing a dignified and prosperous ageing society, which involves investing in commercially viable sustainable healthcare solutions in partnership with the government, including building private wings in public hospitals in line with the ‘Health Transformation’ agenda championed by the Ministry of Health.
“Furthermore, Lembaga Tabung Haji will broaden the role of Islamic banks, including strengthening sustainable social impact through Islamic finance instruments for more streamlined disbursements to the poor, and augmenting the Islamic financial system through strategic collaborations with other key financial institutions and market players,” MoF added.
Lastly, the ministry said LTAT aims to elevate Malaysia’s pharmaceutical value creation by strengthening its capacity to produce local biopharmaceutical products. – Bernama
