- attempts to use US$ 29.1 billion over the course of five times to stimulate economic growth.
- Initiative aims to boost M’sian business, increase the rakyat’s quality of life
Malaysia’s Government-Linked Investment Companies ( GLICs ) reiterated their joint commitment to supporting the Ekonomi Madani framework through targeted capital deployment in high-growth, high-value sectors at the Invest Malaysia 2024 Conference, themed” Where Policy Meets Progress”, launched recently by Anwar Bin Ibrahim in Johor.
During a panel session, GLIC heads highlighted their focus areas within the Ministry of Finance ( MOF ) -led Gear-uP initiative, which aims to deploy US$ 29.1 billion ( RM120 billion ) over the next five years to drive economic growth. The eyes of KWAP, EPF, Khazanah, and LTAT discussed areas for targeted investment, including agriculture, the semiconductor business, the venture capital habitat, system, clean energy, data centres, care, and biopharmaceuticals.
The Malaysian economy has shown significant growth in the first half of 2024, expanding by 5.1 % year-to-date (YTD ). The Ringgit’s 5.1 % increase against the USD YTD reflects this good trend. Also, the Malay equity market has outperformed the place, with the KLCI rising 13.5 % YTD and reaching a multi-year substantial of 1, 678.8 in August. The Ekonomi Madani Framework’s success, particularly in terms of financial reform and governmental measures, is reflected in this consistent economic efficiency.
Building on this success, the Gear-uP initiative seeks to further strengthen Malaysia’s economic foundations, with GLICs leading efforts to” Raise the Ceiling” of Malaysia’s economic stature and” Raise the Floor” of the rakyat’s quality of life. By concentrating on domestic investments, the initiative aims to bring about new financial ecosystems and gain Malaysians equally.
Hajah Nik Amlizan Mohamed, CEO of KWAP, said,” KWAP is implementing a new Strategic Asset Allocation ( SAA ) to optimise our portfolio’s risk-return profile, aiming to diversify further with private market investments. This is in line with our goal, which is to maximize returns while also advancing the national agenda of creating a vibrant local personal market in accordance with the framework of the Madani Economy.
She added,” We have identified three key strategic focus areas: agriculture and food security, the semiconductor industry, and the venture capital ecosystem. Our crops goal is to promote nationwide food security by supporting novel agribusinesses. We want to advance Malaysia’s reputation internationally by moving away from simple production to more sophisticated production processes like chip design and difficult presentation. Through our walk money efforts, we are cultivating an ecology that encourages innovation, creativity, and risk-taking”.
” These proper investments aim to gain significant long-term worth while contributing to Malaysia’s economic growth. By focusing on these businesses, KWAP is positioned to drive technology, create high-skilled career, and help sustainable economic growth, benefiting our partners and reinforcing KWAP’s function as a vital institutional investor in Malaysia’s financial landscape”, she concluded.
As part of the Gear-uP initiative led by the Ministry of Finance, KWAP has committed to allocating US$ 9.7 billion ( RM40 billion ) to Malaysia’s private sector, contributing to the collective US$ 29.1 billion ( RM120 billion ) pledged by six major GLICs.
Employees Provident Fund ( EPF ) CEO Ahmad Zulqarnain Onn stated that the company’s reallocation into domestic direct investments supports our national strategy for sustainable growth while remaining compliant with the broader national agenda for sustainable growth. A significant portion may be directed towards infrastructure projects, including clean energy, data centres, and critical transportation centers like airports and burden roads —sectors necessary to Malaysia’s long-term growth. As we anticipate the growing demands of an aging population, our health is also at the forefront of our strategy to ensure our investments deliver long-term value while ensuring our mission is to provide a secure and dignified retirement for Malaysians.
Khazanah Nasional’s managing director, Amirul Feisal Wan Zahir, stated that the company will continue to leverage its strategic position to deploy capital across the continuum of capital, starting with the National Fund-of-Funds initiative and pursuing initiatives for Mid-Tier Companies and efforts in the semiconductor sector. Khazanah’s ‘ A Nation that Creates ‘ framework will focus on boosting national productivity through investments in productivity, innovation, and business transformation. We will prioritise connectivity, energy transition, and digitalisation to raise the ceiling for all Malaysians”.
He continued,” To raise the floor, we will concentrate on sustainable economic development with an emphasis on capacity building through talent upskilling and reskilling to align with global megatrends.”
Lembaga Tabung Angkatan Tentera ( LTAT ), the company’s CEO Ashraf Radzi, emphasized LTAT’s commitment to strengthening Malaysia’s pharmaceutical value chain by promoting local biopharmaceutical production through its investee company, Pharmaniaga Berhad.
” This strategic focus aims to lower import dependence and ensure the supply of crucial pharmaceutical products, while enhancing public access to essential healthcare. He continued,” Investing in the domestic pharmaceutical sector contributes to the creation of a self-sustaining healthcare supply chain that benefits Malaysians and adds value to the national economy.”
Click here for more information on the MOF-led Gear-uP programme.