KUALA LUMPUR (Oct 9): Malaysia’s government-linked investment companies see a boost to Bumiputera wealth, better workers’ livelihoods and capital mobilisation from Budget 2027.

Prime Minister Datuk Seri Anwar Ibrahim is tapping into the massive state-owned firms for a RM25 billion off-budget spending fillip next year on top of the federal government’s own outlay of nearly RM460 billion.

Here are their reactions to Budget 2027:

President & group chief executive, Permodalan Nasional Bhd (PNB)

PNB is appreciative of the government’s announcement to endow 50 acres of prime commercial land in Kuala Lumpur to Yayasan Pelaburan Bumiputera, with the endowment to be managed by PNB. This marks the first new endowment for PNB since its formative years in the early 1980s, reinforcing PNB’s founding mandate to enhance Bumiputera wealth and participation through long-term value creation.

The new endowment reflects a long-term commitment to preserving strategic Bumiputera ownership, unlocking sustainable economic value from national assets, and ensuring the benefits generated can continue to grow and serve future generations. PNB will optimise the economic potential of this endowment by preserving the underlying capital and reinvesting it to support future growth, while distributing profits generated for the benefit of its unitholders.

PNB appreciates the government’s recognition of its role in preserving Stadium Merdeka and Stadium Negara, as well as the announcement of an entertainment duty exemption for arts, cultural, entertainment and sporting activities held at both venues. This initiative will encourage greater public participation and utilisation of these historic landmarks, while supporting ongoing efforts to revitalise and preserve Malaysia’s national heritage at Merdeka 118 Precinct.

Chief executive officer, Employees Provident Fund (EPF)

The EPF welcomes the increase in minimum wage to RM2,000 as an important labour market reform that will improve workers’ livelihoods and support better retirement adequacy for EPF members. It is also a meaningful step towards increasing labour’s share of national income, ensuring the benefits of economic growth are shared more widely.

The EPF also supports the initiative to increase the living wage threshold at government-linked investment companies to RM3,400 and is committed to full implementation.

Chief executive officer, Kumpulan Wang Persaraan (Diperbadankan) (KWAP)

Budget 2027 highlights the important role of long-term domestic capital in catalysing Malaysia’s economic progress. For KWAP, our priority remains to invest the Retirement Fund prudently and generate sustainable long-term returns, while pursuing investment opportunities that complement the government’s development priorities under Ekonomi Madani.

By deploying capital strategically in Malaysia, we aim to support the development of local businesses, strengthen key sectors and encourage greater private capital participation. Beyond investments, we are contributing to the government’s broader efforts in improving the rakyat’s wellbeing through the implementation of the revised minimum wage. These are areas where KWAP can contribute meaningfully to nation-building while remaining focused on our responsibilities as a long-term institutional investor.

Budget 2027 also announced an increase in the minimum monthly pension from RM1,000 to RM1,350, benefitting nearly 59,000 pensioners and recipients of derivative pensions, among others. In addition, special financial assistance of RM750 will be extended to government retirees. This reaffirms KWAP’s role as a GLIC in mobilising long-term capital to support the nation’s economic priorities, while remaining firmly guided by its mandate under the Retirement Fund Act 2007 [Act 662], fiduciary responsibilities and commitment to Malaysian pensioners. KWAP will continue to invest with purpose and discipline, delivering sustainable long-term returns while strengthening Malaysia’s investment ecosystem, building domestic capabilities and contributing to the nation’s long-term economic growth.

Chief executive, Armed Forces Fund Board (LTAT)

We welcome the government’s continued commitment to defence spending, which reinforces the importance of maintaining our Armed Forces’ readiness while developing the domestic capabilities needed to support our long-term security.

Through our five-year strategic blueprint, Gempur30, LTAT will continue to align its investment strategy, including strengthening the defence and pharmaceutical sectors. These industries are vital to our national security, healthcare resilience and economic independence. Our responsibility is to ensure that the capital entrusted to us delivers sustainable returns for contributors while supporting the long-term strength of the nation.

GEAR-uP provides an important platform for GLICs to work alongside the government and private-sector partners in mobilising capital towards Malaysia’s next phase of growth. LTAT stands ready to play its unique role in this collective effort, balancing our responsibility to safeguard contributors’ interests with opportunities to participate in investments that contribute to the nation’s economic development.

Managing director, Khazanah Nasional Bhd

Budget 2027 continues to build Malaysia’s long-term competitiveness and economic growth, while putting people at the centre: easing the cost of living, raising wages and widening opportunities. Importantly, it places emphasis not only on growth, but on quality growth. Its focus on strategic sectors such as semiconductors, energy transition, infrastructure, enterprise development and talent reflects the government’s commitment to building a stronger, more competitive and future-ready economy. These priorities are critical to deepening Malaysia’s industrial base, enhancing economic complexity and creating higher-value opportunities for businesses and workers.

At the same time, the budget remains firmly inclusive. Its measures recognise that national development must benefit all layers of society, including workers, youth, entrepreneurs, Bumiputera companies, micro, small and medium enterprises (MSMEs) and communities that require greater resilience in the face of economic and climate-related challenges. Khazanah is fully supportive of the rise in the living wage benchmark for employees of GLICs and GLCs to RM3,400 per month.

Khazanah’s Dana Warisan investments under the broader Warisan KL initiative remain of vital importance to us, and we will continue with the ongoing restoration initiatives at the Bangunan Sultan Abdul Samad Complex and Carcosa.

We are pleased to work closely with Penang and Selangor to strengthen Malaysia’s semiconductor and advanced manufacturing ecosystem and support the growth of high-potential Malaysian firms by each allocating RM50 million in the Strategic Investment Fund with an initial fund size of RM150 million. 

The budget’s emphasis on vendor growth, innovation, and entry into new markets reinforces opportunities for Bumiputera business expansion. In support of this, Dana Ciptawan will be expanded to RM250 million in collaboration with Teraju to support the growth of Bumiputera and Malaysian mid-tier companies.

Click here for all you need to know about Malaysia's Budget 2027.