PUTRAJAYA: The Finance Ministry’s government-linked Enterprises Activation and Reform Programme (GEAR-uP) has deployed RM11bil to high-growth sectors such as semiconductors and energy transition, alongside initiatives to uplift underserved communities and develop local talent.

The amount allocated is approximately half of the RM22bil identified for domestic direct investments (DDI), which in turn represents 88% of the RM25bil pledged by six major government-linked investment companies (GLICs) since the programme’s launch in August last year.

The programme is led by Khazanah Nasional Bhd, the Employees Provident Fund (EPF), Permodalan Nasional Bhd (PNB), Kumpulan Wang Persaraan (Diperbadankan) or KWAP, Lembaga Tabung Angkatan Tentera (LTAT) and Lembaga Tabung Haji.

Guided by the Ekonomi Madani framework, GEAR-uP aims to unlock RM120bil over five years to drive Malaysia’s socioeconomic reforms and industrial transformation.

To date, these GLICs have channelled over RM800mil into Malaysia’s semiconductor ecosystem, initiated green industrial projects across 3,000 acres in Kerian and Carey Island in Port Klang, and supported over 50 Malaysian companies through venture capital and private equity.

A key achievement is the commitment by 34 GLICs and government-linked companies (GLCs) to provide a minimum monthly living wage of RM3,100 to 153,000 employees, advancing wage reform and improving the quality of life.

In addition, the GLICs and GLCs have awarded RM200mil in scholarships, supported 8,000 youths in the bottom 40% income group through job placements, and rolled out community investments benefiting over 700,000 Malaysians.

“GEAR-uP aligns GLICs with a renewed nation-building mandate, mobilising wealth to uplift communities and build high-value industrial ecosystems,” said Prime Minister Datuk Seri Anwar Ibrahim.

Elaborating on the deployment of the RM11bil, Second Finance Minister Datuk Seri Amir Hamzah Azizan said GEAR-uP will sustain its momentum through planned investments.

He reported that PNB will nurture 10 initial public offering-ready bumiputra champions, while the EPF will scale up healthcare investments, including ambulatory centres and home-based services.

Furthermore, LTAT and PNB will boost domestic pharmaceutical production, supporting the Joint Ministerial Committee on Private Healthcare Cost.

At the same time, Khazanah will deepen the semiconductor ecosystem, while KWAP’s Dana Pemacu will deploy RM6bil from the third quarter of this year across private equity, infrastructure, and real estate.

“GEAR-uP is about strategic alignment, unlocking RM120bil to advance future industries while lifting incomes and building capabilities,” said Amir Hamzah.

The programme will expand to involve over 30 GLCs, targeting RM10bil in market capitalisation, 7.5% shareholder returns, and non-financial goals like living wages and talent development, to ensure Malaysia’s economic resilience amid global trade shifts.

On a separate note, Amir Hamzah hopes the move by GLICs and GLCs to implement a minimum monthly living wage of RM3,100 will spur other corporates, especially in the private sector, to follow suit.

“Khazanah, for its part, has invested in the upskilling of workers, and now we have this initiative by GLCs and GLICs to improve the monthly living wage. We are confident this will improve productivity as well as the living quality of Malaysians,” he said.

The minister added that this shift could spur competition among corporates to attract and retain talent by offering similar wage levels, ultimately helping to raise wages and incomes more effectively across the Malaysian workforce.