KUALA LUMPUR – Six prominent government-linked investment companies (GLICs) have committed to investing RM120 billion in domestic direct investments over the next five years.
In a statement today, the Finance Ministry said this commitment is part of the initial phase of the ministry’s “Gear-up” programme, which seeks to coordinate efforts among government-linked entities to drive growth in essential economic sectors.
It also noted that this pledged amount is in addition to the RM440 billion allocated for public market investments under the GLICs’ ongoing investment programme.
Prime Minister Datuk Seri Anwar Ibrahim, who is also 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 was quoted as saying in the statement.
With combined assets under management valued at over RM1.8 trillion, which Anwar said was 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 Finance Ministry said that 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 start-ups to venture capital to mid-tier companies, and finally to support listing of such companies.
“The six GLICs are Khazanah Nasional Bhd, the Employees Provident Fund (EPF), 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.
It also explained that 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 corporations 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 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 ministry added.
The ministry said LTAT aims to elevate Malaysia’s pharmaceutical value creation by strengthening its capacity to produce local biopharmaceutical products. – August 8, 2024
