KUALA LUMPUR (June 9): Malaysia’s largest government-linked investment companies will set aside some of their funds to invest in companies that adopt MY Value Up recommendations.
Employees Provident Fund, Permodalan Nasional Bhd, and Retirement Fund Inc are participating in the programme, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said in his keynote address at the Invest Malaysia conference on Tuesday.
The move aims to ensure that companies with stronger governance, disciplined capital allocation and higher transparency standards are recognised not only by the market, but also by Malaysia’s largest institutional investors, he said.
WATCH: Govt funds to invest in MY Value UP adopters
“Malaysia wants a capital market that is not only larger, but better — one that rewards discipline, accountability and long-term value creation,” Zahid said. “We want Malaysian companies to be better governed, better valued and better prepared to compete regionally and globally.”
In March, Malaysia launched the MY Value Up programme to raise the visibility of the top public-listed companies in terms of market capitalisation to domestic and foreign investors.
One of the goals is to raise Malaysia's representation in the MSCI indices closely watched by fund managers and international investors. An exclusion from the indices can trigger outflows as investors sell the former constituent in their portfolios to mirror the benchmarks.
“Investors today are looking for stronger governance, better capital allocation and clearer strategy," Zahid said on Tuesday. "Yes, profit matters... but in today’s market, companies must also be credible, sustainable and accountable."