KUALA LUMPUR, August 8th – Six major government-linked investment companies (GLICs) in Malaysia have committed to investing RM120 billion in domestic direct investment (DDI) over the next five years under the first phase of the Ministry of Finance’s “GEAR-uP” initiative. According to a statement, this initiative aims to collaborate with various government-related entities to promote growth in key economic sectors. The GLICs are expected to inject RM120 billion into domestic direct investment and invest RM440 billion in public markets as part of their long-term investment plans.
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim stated in the release that achieving the goals of the “Madani Economy” framework requires the collective efforts of the entire nation, including the corporate sector.
“By enhancing the focus of GLICs on domestic direct investment, the deployed capital can equitably benefit the people and create new economic ecosystems,” said Anwar.
He added that the total assets under management (AuM) by GLICs exceed RM1.8 trillion, roughly equivalent to Malaysia’s nominal GDP, giving them the financial power to elevate the nation up the economic value chain and improve the livelihoods of the people.
Focus on High-Growth, High-Value Sectors
The Ministry of Finance also highlighted that these investments will primarily target high-growth, high-value sectors such as energy transition, advanced manufacturing (with a particular emphasis on the semiconductor sector), and investments throughout the entire lifecycle of companies, from startups and venture capital to mid-sized enterprises, ultimately supporting the listing of these companies.
The six major GLICs involved are Khazanah Nasional, the Employees Provident Fund (EPF), the Retirement Fund (KWAP), Permodalan Nasional Berhad (PNB), Lembaga Tabung Haji (TH), and the Armed Forces Fund Board (LTAT).
During the “GEAR-uP” launch, the Second Finance Minister, Datuk Seri Ahmad Maslan, EPF CEO Ahmad Zukarnain, and other senior officials were present.
Leadership in Key Areas
According to the statement, each GLIC will lead in specific focus areas of the “GEAR-uP” initiative. Khazanah Nasional will implement its Malaysia Investment Strategy to boost national productivity and competitiveness.
KWAP will focus on enhancing the private markets in Malaysia, particularly in private equity, infrastructure, and real estate, with an emphasis on providing catalytic funding for venture capital and growth-stage companies through its Dana Perintis and Dana Pemacu funds.
PNB will focus on investments in new industrial parks, support for automation in the palm oil industry, smart agriculture, and green and energy transition assets to promote higher value-added and sustainable activities.
The EPF will collaborate with the government to invest in commercially viable sustainable healthcare solutions, as well as in the construction of private arms within government hospitals, in line with the Health Ministry’s healthcare transformation agenda.
Lembaga Tabung Haji will enhance sustainable social impact through Islamic financial instruments to streamline aid distribution to the needy and expand the Islamic financial system through strategic partnerships with major financial institutions and market participants.
