The Malaysian government is coordinating the investment strategies of government-linked investment companies (GLICs) and public funds through the Government-linked Enterprises Activation and Reform Programme (GEAR-uP), aligning these investments with national development policies without compromising governance or fiduciary duties [1, 2, 3].
Launched in August 2024, GEAR-uP serves as the key mechanism for coordinating six major GLICs—Employees Provident Fund (EPF), Permodalan Nasional Berhad (PNB), Retirement Fund (KWAP), Khazanah Nasional, Lembaga Tabung Haji, and the Armed Forces Fund Board (LTAT) [3]. These institutions have committed RM120 billion in domestic direct investments from 2024 to 2028, supplementing an existing RM440 billion invested in the domestic public market [3].
Starting in 2025, the programme expanded to include 37 government-linked companies (GLCs), using the platform to target sectors with high growth and value potential [3]. Investment vehicles linked to GEAR-uP, such as Jelawang Capital, Dana Perintis, Dana Pemacu, and Dana Iklim+ have helped nearly triple domestic direct investment by the GLIC ecosystem between 2024 and 2025 [3].
GEAR-uP is anchored on the MADANI Economy framework and guided by policies including the New Industrial Masterplan 2030, National Semiconductor Strategy, National Energy Transition Roadmap, and the 13th Malaysia Plan [3]. The programme’s three implementation phases are strategic commitments in 2024, capital deployment in 2025, and tangible company-level outcomes such as job creation emerging in 2026 [3].
Deputy Finance Minister Liew Chin Tong said the government aims to leverage institutional capital to build sustainable industries and competitive companies, stating, “The government's objective is to ensure that the nation's institutional capital delivers lasting capabilities: sustainable industries, competitive companies, and more secure livelihoods for the people” [1]. He emphasized supporting local technology and SMEs as well, noting, “Although they may not be the most advanced, we want to become an indispensable middle player in the global supply chain by holding choke points and developing our own industries and technologies. In doing so, we can strengthen the entire ecosystem, including supporting local SMEs” [2].
An example of GEAR-uP support is SkyeChip, a local semiconductor design firm backed by Khazanah Nasional and KWAP [3].
The Deputy Finance Minister said a comprehensive progress report on the GEAR-uP programme will be published soon to provide transparent updates [1, 2]. The programme continues focusing on capital deployment and generating measurable impacts in Malaysia’s strategic sectors throughout 2026 and beyond.
