KUALA LUMPUR: Malaysia’s retirement savings fund, the Employees Provident Fund (EPF), is allocating up to RM250 million to Gobi Partners to boost mid-sized domestic companies with high growth potential.
The investments will target several key areas, namely healthcare for the elderly, improvements in food production, making financial services more accessible, promoting sustainable practices like clean energy, enhancing education quality, and social infrastructure development.
EPF said these align with its overall strategic goals and may include additional promising sectors in the future.
EPF chief executive officer Ahmad Zulqarnain Onn said the agency is committed to participating in the growth journey of high-potential companies in Malaysia as it aligns strategy with developing an inclusive social protection ecosystem.
“This commitment was mandated to cater to several strategic investment themes, including healthcare, with a specific focus on aged care and the silver economy.
“It reflects the EPF’s recognition of the importance of addressing the needs of an ageing population.
“In the long run, we hope this effort contributes to building a resilient society that is resilient to economic and social challenges while delivering profitable returns for our members,” he said in a statement.
This move also aligns with the Malaysian government’s Madani Economy Framework, where the EPF wants to work alongside other government-backed investment firms (GLICs) to help young startups get established.
Gobi Partners is a well-established venture capital firm across Asia.
The EPF, already the biggest investor in Malaysia with over RM702 billion in assets under management as of December 2023, is taking this step to strengthen the domestic market further.
Both companies will look to fill funding gaps for these early-stage companies, which will benefit the companies’ growth and generate good returns for the EPF, considering the potential risks involved.
This commitment reflects the EPF’s ongoing efforts to provide social security through strategic investments in promising Malaysian mid-sized companies.
“Gobi Partners is proud to stand alongside the EPF in this significant commitment to the growth of mid-to-growth-stage companies in Malaysia.
“Our strategic focus on the six key themes underscores our dedication to driving innovation and creating lasting socio-economic impact,” Gobi Partners co-founder and chairperson Thomas G Tsao said.
