KUALA LUMPUR (8th August 2024) – Malaysia’s six major government-linked investment companies (GLICs) have committed RM120 billion to direct domestic investments over the next five years. This initiative, led by the Finance Ministry, aims to boost “high growth, high value” industries such as energy transition and advanced manufacturing, with a particular focus on the semiconductor sector. These investments will supplement the RM440 billion already invested in the public capital market.
The program, known as GEAR-uP, involves key GLICs including Khazanah Nasional Bhd, Employees Provident Fund (EPF), Retirement Fund Inc (KWAP), Permodalan Nasional Bhd (PNB), Lembaga Tabung Haji, and the Armed Forces Fund Board. These organizations, which collectively manage assets worth over RM1.8 trillion—equivalent to the country’s nominal GDP—are well-positioned to drive Malaysia’s economic growth and improve the quality of life for its citizens.
Prime Minister Datuk Seri Anwar Ibrahim emphasized the importance of mobilizing all parties, including the corporate sector, to focus on domestic investments that can create new economic ecosystems benefiting the entire population.
Under the GEAR-uP program, each GLIC will focus on specific areas. Khazanah Nasional aims to raise national productivity and competitiveness by investing in energy transition and digitalization. KWAP will enhance the private market in sectors like food security and the digital economy, while PNB will modernize industries with a focus on high value-added and sustainable activities. EPF’s strategy includes investing in sustainable healthcare through public-private collaborations, and Tabung Haji will strengthen the Islamic financial system. The Armed Forces Fund Board will focus on boosting the Malaysian pharmaceutical industry by expanding local biopharmaceutical production.
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