KUALA LUMPUR, Aug 8 — Six leading government-linked investment companies (GLICs) collectively pledge to invest RM120 billion in domestic direct investment (DDI) over the next five years, said the Finance Ministry (MOF).
The pledge was made under the first phase of the 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 finance minister, said to achieve the ambitious targets of the Madani Economy framework, there must be a unified effort from the entire nation, including the corporate sector.
“By having the GLICs to heighten their focus on domestic investment, 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.
Additionally, the MOF said the investment is 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 to support the listing of such companies.
“The six GLICs are Khazanah Nasional Bhd, the Employees Provident Fund (EPF), The Retirement Fund Inc (KWAP), Permodalan Nasional Bhd (PNB), Lembaga Tabung Haji, and the Armed Forces Fund Board (LTAT),” said the ministry, adding that each of these GLICs will have their respective focus areas to lead in the Gear-up programme.
The MOF explained 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, catalysing funds for venture capital and growth-stage firms via Dana Perintis and Dana Pemacu.
As for the other GLICs, it said PNB aims to modernise Malaysian industries and corporates for more 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.
“The 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 Health Ministry.
“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,” the MOF added.
Lastly, the ministry said the LTAT aims to elevate Malaysia’s pharmaceutical value creation by strengthening its capacity to produce local biopharmaceuticals.
— Bernama
