KUALA LUMPUR (June 30): Malaysia’s six core government-linked investment companies (GLICs) aim to grow the market capitalisation of companies they are invested in by RM100 billion over five years.
Their goal is to achieve at least a 7.5% return per annum for shareholders over five years from a total investment of RM540 billion on Bursa Malaysia currently
This is part of an expanded version of the Government-Linked Companies Empowerment and Reform (GEAR-uP) programme under the Ministry of Finance (MOF).
“Looking ahead, GEAR-uP will expand its scope to involve over 30 GLCs under participating GLICs. These companies will be guided by ambitions to collectively achieve RM100 billion in market capitalisation, deliver 7.5% shareholder returns, and champion non-financial outcomes — including implementing living wages, growing Bumiputera enterprises, and developing talent and future leaders,” Finance Minister II Datuk Seri Amir Hamzah Azizan said at a briefing on Monday.
The Gear-uP programme has identified RM22 billion in domestic investments so far, nearly 90% of the RM25 billion pledged by GLICs for 2025.
Of this, RM11 billion has gone into high-growth sectors like semiconductors and energy transition.
"GEAR-uP is gaining significant early momentum towards its goal of mobilising RM120 billion [over the next five years] into the domestic economy," the MOF said in a statement.
"This progress is especially critical, serving as a strategic anchor for Malaysia amidst shifting global trade dynamics and economic uncertainty."
The six major GLICs under the first round of the GEAR-uP programme are Khazanah Nasional Bhd, the Employees Provident Fund (EPF), Permodalan Nasional Bhd (PNB), Kumpulan Wang Persaraan (Inc) (KWAP), Lembaga Tabung Angkatan Tentera (LTAT), and Lembaga Tabung Haji.
Besides moving ahead with RM11 billion planned investments, the MOF said PNB is leading efforts to nurture 10 Bumiputera companies for initial public offerings (IPOs). This includes a possible listing of an Ekuiti Nasional Bhd (Ekuinas) portfolio company under the Bumiputera Relay Race initiative.
While the MOF did not name the company, The Edge Malaysia weekly previously reported that Ekuinas is exploring an IPO of its shipping firm in the oil and gas sector, Orkim Sdn Bhd, that could value it at up to RM1 billion, citing sources.
EPF will increase investments in healthcare and aged care, including clinics, home care services, and tech to improve access and affordability.
At the same time, LTAT and PNB will boost local drug production, focusing on biopharmaceuticals and affordable generics to cut costs.
These efforts support healthcare reforms led by the Finance and Health Ministries to modernise care and attract investment.
Meanwhile, Khazanah will focus more on strengthening Malaysia’s semiconductor industry, especially in advanced manufacturing and partnerships between local and global companies.
Amir Hamzah said in the same statement that the GEAR-uP programme isn't just about capital deployment, but it is also a strategic alignment that aims to advance future industries while lifting incomes, building capabilities, and delivering on shared prosperity.
"This is how we translate economic reform into tangible results," Amir Hamzah said. "GEAR-uP is about uplifting the rakyat's standard of living and nurturing regional champions in cutting-edge industries, so that Malaysia can rise to new heights."
The MOF also highlighted that as of June 30, GLICs have committed to providing a minimum monthly living wage of RM3,100 to 153,000 employees, over RM800 million has been channelled into the semiconductor sector, and over 50 companies and funds have been supported via venture capital and private equity investments.
Another RM200 million in scholarships have also been awarded, 8,000 B40 youths have been supported through job placement programmes, and community investments benefiting over 700,000 Malaysians have been rolled out nationwide.