MOF: RM11bil deployed under GEAR-uP to drive high-growth sectors
Finance Minister II Datuk Seri Amir Hamzah Azizan - NORAFIFI EHSAN / The Star
PUTRAJAYA: A total of RM11 billion has been deployed under the Government-linked Enterprises Activation and Reform Programme (GEAR-uP) as of June 30, 2025, less than a year since the initiative spearheaded by the Ministry of Finance (MOF) was launched.
In a special briefing on the GEAR-uP 2025 Progress Report, Finance Minister II Datuk Seri Amir Hamzah Azizan said the amount forms part of the RM22 billion in domestic direct investments identified, representing 88 per cent of the RM25 billion pledged by six major government-linked investment companies (GLICs).
He said the funds are being channelled into high-growth, high-value sectors such as semiconductors, the energy transition, community upliftment, and talent development.
"The programme has also secured commitments from 34 GLICs and government-linked companies (GLCs) to provide at least a minimum monthly living wage of RM3,100 to 153,000 employees - delivering on its promise to raise the rakyat's quality of life and lead the national agenda for wage reform.
"Guided by the objectives and principles of the Ekonomi MADANI framework, GEAR-uP aims to unlock RM120 billion over five years to drive socioeconomic reforms and jumpstart Malaysia's industrial transformation,' he added.
The six GLICs anchoring the programme are Khazanah Nasional Bhd, the Employees Provident Fund (EPF), Permodalan Nasional Bhd (PNB), the Retirement Fund (Incorporated) (KWAP), Lembaga Tabung Angkatan Tentera (LTAT), and Lembaga Tabung Haji.
Since its launch in August 2024, the six core GLICs have channelled over RM800 million into Malaysia's semiconductor ecosystem, kickstarted green industrial development across 3,000 acres (1,214 hectares) in Kerian and Carey Island, and backed more than 50 Malaysian companies and funds through venture capital and private equity.
Amir Hamzah said the GLICs and their network of GLCs have also awarded RM200 million in scholarships, supported 8,000 B40 youths through job placement programmes, and rolled out community investments benefiting over 700,000 Malaysians nationwide.
"GEAR-uP is not just about capital deployment - it is about strategic alignment. We are unlocking RM120 billion to advance future industries while lifting incomes, building capabilities, and delivering on shared prosperity. This is how we translate economic reform into tangible results.
"This goes beyond strengthening economic fundamentals. GEAR-uP is about uplifting the rakyat's standard of living and nurturing regional champions in cutting-edge industries, so that Malaysia can rise to new heights,' he said.
Looking ahead, Amir Hamzah said GEAR-uP will expand its scope to involve over 30 GLCs under participating GLICs.
Through this expansion, it targets to achieve RM100 billion in market capitalisation, deliver 7.5 per cent shareholder returns, and champion non-financial outcomes - including the implementation of living wages, growing Bumiputera enterprises, and developing talent and future leaders. - Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
36 minutes ago
- The Sun
RON95 subsidy rationalisation in final stages, says finance minister
KUALA LUMPUR: The government is in the final stages of preparing the RON95 subsidy rationalisation, set to begin in the second half of this year, Finance Minister II Datuk Seri Amir Hamzah Azizan announced today. Speaking at the Invest ASEAN-Malaysia Conference 2025, he stressed that the move aims to prevent leakages and ensure wealthier individuals and businesses contribute fairly. 'This will allow fiscal strength to secure subsidies for those who truly need them,' he said. The approach mirrors the recent diesel subsidy rationalisation, part of broader efforts to strengthen public finances. The government also plans to expand the Sales and Service Tax (SST) to diversify revenue streams. Amir Hamzah highlighted Malaysia's progress in fiscal consolidation, with the budget deficit-to-GDP ratio improving to 4.1% last year, beating the 4.3% target. The goal for 2025 is a 3.8% deficit, aligning with the Public Finance and Responsibility Act 2023's medium-term target of 3%. 'Revenue-enhancing measures, tax efficiency, and compliance will help achieve this,' he said. The SST expansion is expected to generate RM10 billion despite recent exemptions. Looking ahead, Budget 2026 and the 13th Malaysia Plan (13MP) will focus on pragmatic policies to ensure economic stability and fairness. 'Reforms in judicial, fiscal, and social sectors will support growth and resilience amid global volatility,' he added.
Malay Mail
an hour ago
- Malay Mail
RON95 subsidy rationalisation in final stages, fiscal reforms urgent amid global volatility, says Amir Hamzah
KUALA LUMPUR, July 1 — The government is focusing on finalising the details of the RON95 subsidy rationalisation, which will begin in the second half of this year, said Finance Minister II Datuk Seri Amir Hamzah Azizan. He noted that just as it was with the diesel rationalisation, the goal for the RON95 subsidy rationalisation is to ensure that the government plug leakages and that businesses and the wealthy contribute their fair share. 'This is so that we have the fiscal strength to secure subsidies for the people who genuinely need them. 'The same careful approach applies to the expansion of Sales and Service Tax (SST) — it diversifies revenue and is part of prudent expenditure management,' he said in his keynote address at the Invest Asean-Malaysia Conference 2025 today. Amir Hamzah noted that the government's commitment to fiscal consolidation remained strong as the country had achieved a budget deficit-to-gross domestic product (GDP) ratio of 4.1 per cent last year, better than the official target of 4.3 per cent. He said that the government is now targeting a 3.8 per cent fiscal deficit for 2025 and is staying consistent with the Public Finance and Responsibility Act 2023 to reduce the deficit to three per cent in the medium term. 'This will be accomplished through revenue-enhancing measures, tax system efficiency and taxpayer compliance. 'This year we are doing the SST expansion and the RON95 subsidy rationalisation, and hopefully that will add a revenue base along the way,' he said, adding that the government is confident of getting the additional RM10 billion revenue from the SST expansion, despite recent additional exemptions. In the meantime, Amir Hamzah emphasised that Budget 2026 and the soon-to-be-tabled 13th Malaysia Plan (13MP) will focus on being pragmatic, sensible and driving continuity in the nation's progress. 'While it is too early to share details, I can say that it will be yet another effort in securing our economic future, responding where necessary to current economic headwinds and building a fairer, more equitable society,' he said. He added that several other reforms are in the pipeline to support economic growth, build credibility and set governance examples. 'These include the judicial and institutional reform, fiscal and public sector reform, social protection and inclusivity reforms, and digital and innovation-led transformations. 'Current global volatility makes reforms more, not less, urgent. Institutional strengthening, fiscal discipline, and innovation capacity-building are complements to sustainable, resilient economic expansion that is capable of weathering future global disruptions,' he added. — Bernama
The Star
an hour ago
- The Star
More targeted policies needed to beef up national food security, says AFPN
Dependence on imports is for some foods including vegetables and fruits. Malaysia still needs to import food commodities such as vegetables and fruits from temperate climates, This is because these commodities are not economical to produce in Malaysia because the price will be higher than imports in addition to the country's unfavorable weather factors and it is affected by the demand of the local market. . — MUHAMAD SHAHRIL ROSLI/The Star KUALA LUMPUR: Policies that are more focused and responsive need to be formulated to strengthen national food security, in light of concerns over rising food prices and the country's high dependence on global supply chains. Malaysia Productivity Corporation (MPC) through the Agro-Food Productivity Nexus (AFPN) said currently, Malaysia still relied heavily on food imports, including in the poultry farming industry. "For example, the Self-Sufficiency Level (SSL) for chicken dropped to 90.2 per cent in 2023 compared to 100.2 per cent in 2021, indicating growing reliance on external sources. "Although chickens are farmed locally, the import dependency for animal feed remains high, making the sector vulnerable to global shocks and exchange rate fluctuations,' AFPN said in a statement issued by MPC on Tuesday (July 1). AFPN also said that although Malaysia recorded an improvement in the World Competitiveness Ranking (WCR) 2025, the agro-food sector's performance indicators, such as price competitiveness, productivity and innovation, remain slow and lacklustre. AFPN stressed the need for proactive and contextual policy reforms. These include facilitating the entry of new farmers, supporting the expansion of existing farmers through easier land access, restructuring approval processes, reducing bureaucratic red tape and accelerating digital technology adoption in the agro-food sector. MPC director-general Datuk Zahid Ismail was quoted in the statement as saying that Malaysia must remove systemic barriers, open up space for innovation and create an ecosystem that enables farmers to grow and contribute meaningfully to national productivity. "Food security is not just about supply; it is closely tied to resilience and long-term competitiveness. Digital adoption is a key driver of agro-food productivity, but connectivity must be prioritised first,' he said. On June 17, the Investment, Trade and Industry Ministry (Miti) announced that Malaysia has risen 11 places in the WCR 2025, moving to 23rd place out of 69 economies, its best ranking since 2020.- Bernama
