GLICs Reiterate Commitment To Support MADANI Economy Framework

JOHOR BAHRU, Sept 30 (Bernama) -- Malaysia’s government-linked investment companies (GLICs) reiterated their joint commitment to support the MADANI Economy framework through targeted capital deployment in high-growth, high-value sectors.

The reiteration of commitment was expressed at the Invest Malaysia Iskandar 2024 Conference themed “Where Policy Meets Progress” at Iskandar Puteri, near here, recently.

In a panel session, GLIC heads from the Retirement Fund Inc (KWAP), Khazanah Nasional Bhd and Armed Forces Fund Board (LTAT) highlighted their specific focus areas within the Ministry of Finance (MOF)-led Government-linked Enterprises Activation and Reform Programme (GEAR-uP) initiative which aims to deploy a collective amount of RM120 billion over the next five years to catalyse economic growth.

KWAP chief executive officer Datuk Hajah Nik Amlizan Mohamed said KWAP is implementing a new Strategic Asset Allocation (SAA) to further optimise its portfolio’s risk-return profile, aiming to diversify further with private market investments. 

“This aligns with our mandate to operate within our risk appetite while maximising returns and supports the national agenda of developing a thriving domestic private market, in line with the MADANI Economy framework,” she said in a statement today.

She said KWAP has identified, among others, three key strategic focus areas, namely, agriculture and food security; the semiconductor industry; and the venture capital ecosystem. 

“In agriculture, our goal is to enhance national food security by supporting innovative agribusinesses. Our investments in the semiconductor sector are aimed at elevating Malaysia's global standing, advancing from basic manufacturing to higher-value processes such as chip design and complex packaging,” she said.

She said through KWAP’s venture capital initiatives, it is cultivating a vibrant ecosystem that encourages entrepreneurship, innovation and risk-taking.

“These strategic investments are designed to generate substantial long-term value while contributing to Malaysia's economic development. By focusing on these critical sectors, KWAP is positioned to drive innovation, create high-skilled employment opportunities and support sustainable economic growth for the benefit of our key stakeholders, in line with our tagline ‘Your Retirement Companion’. 

“Our approach demonstrates a commitment to both the Malaysian pensioners and the broader national interest, reinforcing KWAP's role as a key institutional investor in Malaysia's economic landscape,” she added.

Khazanah managing director Datuk Amirul Feisal Wan Zahir said the country’s sovereign wealth fund would continue to leverage its strategic position to deploy its capital across the capital continuum, from venture investing with the National Fund-of-Funds initiative to its upcoming programmes for mid-tier companies and its efforts in the semiconductor space.

Furthermore, he said Khazanah’s “A Nation that Creates” framework would focus on increasing national productivity via investments in productivity, innovation and transforming firms. 

“To that effect, we will be concentrating on the sectors of connectivity, energy transition, and digitalisation to raise the ceiling for all Malaysians.

“As for our efforts to raise the floor, we will emphasise on a sustainable economic development model with a focus on capacity building via talent upskilling and re-skilling that will be in tune with the requirements of the global megatrends of today and the future,” he said.

Meanwhile, LTAT chief executive Ashraf Radzi emphasised LTAT’s commitment to elevating Malaysia’s pharmaceutical value creation by strengthening its capacity to produce local biopharmaceutical products through its investee company, Pharmaniaga Bhd.

“This strategic focus aims to reduce import dependency and ensure a secure supply of critical pharmaceutical products while increasing public accessibility to essential healthcare supplies.

“The investment into developing the domestic pharmaceutical sector contributes to a self-sustaining healthcare supply chain, which benefits Malaysians and further adds value to the national economy,” he added.

-- BERNAMA