RM120 Billion Domestic Direct Investment Boost from GLICs with GEAR-uP

The Ministry of Finance (MOF) is spearheading the GEAR-uP programme, part of Malaysia’s Ekonomi MADANI framework, aiming to boost the economy through strategic investments by Government-Linked Investment Companies (GLICs).

This initiative will see RM120 billion allocated to domestic direct investments (DDI) over the next five years, in addition to RM440 billion in public market investments. The focus is on high-growth industries like energy transition, advanced manufacturing, and venture capital.

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Direct Investment Boost

Key GLICs and Their Focus Areas:

• Khazanah Nasional Berhad (Khazanah): Enhancing national productivity through investments in semiconductor ecosystems, digitalisation, and capacity building, and supporting venture capital initiatives.
• Employees Provident Fund (EPF): Investing in sustainable healthcare solutions, enhancing pension reforms, and promoting old-age income security.
• Kumpulan Wang Persaraan (Diperbadankan) [KWAP]: Empowering private markets, particularly in venture capital and growth-stage firms, with a focus on sectors like food security and digital economy.
• Permodalan Nasional Berhad (PNB): Modernising industries with a focus on automation, green assets, and supporting Bumiputera entrepreneurs.
• Lembaga Tabung Haji: Enhancing Islamic finance, promoting social impact through sustainable finance instruments, and collaborating with financial institutions.
• Lembaga Tabung Angkatan Tentera (LTAT): Strengthening local pharmaceutical production and supporting the transition of veterans to second careers.

Additional Initiatives:

The GLICs will also focus on improving employee welfare by ensuring living wages and fair gender representation in the workplace. They will support community development through programmes like Kampung Angkat MADANI, aiming to complement government infrastructure support. Additionally, Kumpulan Wang Amanah Negara (KWAN) will be enhanced as Malaysia’s intergenerational wealth fund to ensure long-term sustainability and wealth retention.

The GEAR-uP programme is a pivotal move to drive Malaysia’s economic growth and improve the quality of life for Malaysians through substantial investments by the six key GLICs.