PUTRAJAYA : The Government-linked Enterprises Activation and Reform Programme (GEAR-uP), under the stewardship of the Ministry of Finance, has disbursed RM11 billion to catalyse high-growth sectors, notably semiconductors and the energy transition, while simultaneously advancing social equity and talent development nationwide.
The deployment represents approximately 50% of the RM22 billion allocated for domestic direct investments (DDI), which in turn constitutes 88% of the RM25 billion collectively pledged by six key government-linked investment companies (GLICs) since the programme’s inception in August 2023.
The initiative is driven by Malaysia’s foremost institutional investors, namely Khazanah Nasional Bhd, the Employees Provident Fund (EPF), Permodalan Nasional Bhd (PNB), Kumpulan Wang Persaraan (Diperbadankan) (KWAP), Lembaga Tabung Angkatan Tentera (LTAT), and Lembaga Tabung Haji. Operating within the Ekonomi Madani framework, GEAR-uP is designed to unlock RM120 billion over five years, aimed at accelerating socioeconomic reforms and supporting Malaysia’s industrial transition.
To date, more than RM800 million has been invested into Malaysia’s semiconductor ecosystem. In parallel, GLICs have launched green industrial developments across 3,000 acres in Kerian and Carey Island, Port Klang. Additionally, over 50 local enterprises have received support through venture capital and private equity channels.
A notable milestone includes the agreement by 34 GLICs and government-linked companies (GLCs) to implement a minimum monthly living wage of RM3,100 for 153,000 employees. This move underscores the programme’s commitment to wage reform and raising quality of life standards.
Further, RM200 million in scholarships have been awarded, while employment placements have benefited 8,000 youths from the bottom 40% income group. Broader community investment initiatives under the programme have reached more than 700,000 Malaysians.
Prime Minister Datuk Seri Anwar Ibrahim noted that GEAR-uP realigns GLICs with a renewed mandate for nation-building, stating that the initiative is mobilising national wealth to uplift communities and cultivate high-value industrial ecosystems.
Second Finance Minister Datuk Seri Amir Hamzah Azizan elaborated on the investment strategy, confirming continued momentum through targeted allocations. He highlighted that PNB will groom ten Bumiputera companies towards IPO-readiness, and EPF will deepen its involvement in the healthcare sector, expanding into ambulatory and home-based services.
Meanwhile, LTAT and PNB will collaborate to enhance domestic pharmaceutical manufacturing, supporting efforts under the Joint Ministerial Committee on Private Healthcare Cost. Khazanah will intensify development of the semiconductor supply chain, and KWAP is set to channel RM6 billion via its Dana Pemacu initiative starting Q3 this year, with focus areas including private equity, infrastructure, and real estate.
Amir Hamzah emphasised that GEAR-uP is strategically aligned to unlock RM120 billion of investment over the medium term, facilitating growth in emerging industries, while simultaneously driving income uplift and capacity-building.
The programme is also preparing to broaden participation to over 30 GLCs, with key performance targets including RM10 billion in market capitalisation, 7.5% shareholder returns, and non-financial deliverables encompassing minimum living wages and workforce development. These efforts aim to fortify Malaysia’s economic resilience in the face of evolving global trade dynamics.
On a related note, the Second Finance Minister expressed hope that the RM3,100 minimum wage standard adopted by GLICs and GLCs will catalyse adoption within the broader private sector. He noted that initiatives by Khazanah to invest in workforce upskilling, coupled with this new wage benchmark, are expected to enhance productivity and quality of life.
He added that the shift may incentivise competition among corporations to offer more competitive compensation, further supporting wage growth and strengthening Malaysia’s talent retention landscape.
-The Star
