KUALA LUMPUR: Six government-linked investment companies (GLICs) have committed to investing RM120 billion in domestic direct investments (DDI) over the next five years under a programme led by the Ministry of Finance (MoF).
This is in addition to RM440 billion public market investments as part of their ongoing investment activities.
The six GLICs involved are Khazanah Nasional Bhd (Khazanah), the Employees Provident Fund (EPF), Kumpulan Wang Persaraan (Diperbadankan) [KWAP], Permodalan Nasional Berhad (PNB), Lembaga Tabung Haji (TH), and Lembaga Tabung Angkatan Tentera (LTAT).
The programme, named GEAR-uP, is designed to boost growth in crucial economic sectors.
The ministry said the investments will focus mainly on high-growth, high-value (HGHV) industries, including the energy transition sector and advanced manufacturing, particularly in semiconductors.
Additionally, the programme will support investments throughout the various stages of firms, from start-ups and venture capital to mid-tier companies, and will aid in the listing of these companies.
Prime Minister Anwar Ibrahim said by getting the GLICs to heighten their focus on domestic investments, this deployed capital can benefit Malaysians equitably and birth new economic ecosystems.
"With a combined assets under management (AUM) valued at over RM1.8 trillion, roughly the size of Malaysia's nominal gross domestic product (GDP), the GLICs have the financial capacity to effect the nation's ascent in the economic value chain and transform Malaysians' lives for the better," he said after a briefing on the programme at the GEAR-uP Gallery Walk yesterday at the Main Hall of the Ministry of Finance.
In a statement today, the MoF said each GLICs will have their respective focus areas to lead in the programme.
"Beyond capital investments, the GLICs and Government-Linked Companies (GLC) will lead impactful actions to improve the lives of employees in their organisations and ecosystems, including investee companies."
"These include committing to ensure permanent Malaysian employees receive a total compensation equivalent to monthly living wages of RM3,100 and aligning future wage benchmarks with the EPF's annual Belanjawanku report," it added.
The ministry also mentioned that Kumpulan Amanah Wang Negara (KWAN) will be enhanced as Malaysia's intergenerational wealth fund.
This will involve new sources of contributions, updated usage guidelines, and reinforced investment mandates to ensure the fund's sustainability and the preservation of wealth for future generations of Malaysia.