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The goal of the initiative is to drive investments into high-value sectors while committing to better wages and quality of life for Malaysian employees.
Less than a year since its launch, Malaysia’s Government-linked Enterprises Activation and Reform Programme (GEAR-uP) has mobilised RM11bn in domestic investment and secured a minimum living wage commitment for 153,000 employees.
The programme, spearheaded by the Ministry of Finance (MOF), is anchored by six Government-linked Investment Companies (GLICs). Together, they have identified RM22bn in domestic direct investments, which accounts for 88% of the RM25bn initially pledged. The investments are aimed at high-growth and high-value sectors such as semiconductors and the energy transition, as well as initiatives to support underserved communities and nurture local talent.
As of 30 June 2025, RM11bn has already been deployed. The programme has also secured commitments from 34 GLICs and Government-linked Companies (GLCs) to provide a minimum monthly living wage of RM3,100 to 153,000 employees. This marks a key step in advancing the government’s wage reform agenda.
YAB Dato’ Seri Anwar Ibrahim, Prime Minister described the programme as a way to align GLICs with a renewed mandate for nation-building. He said it enables the mobilisation of accumulated wealth to uplift communities and build high-value industrial ecosystems.
Guided by the Ekonomi MADANI framework, GEAR-uP aims to unlock RM120bn in investments over five years to support socioeconomic reforms and accelerate Malaysia’s industrial transformation.
The six GLICs leading the programme are:
- Khazanah Nasional Berhad
- Employees Provident Fund (EPF)
- Permodalan Nasional Berhad (PNB)
- Kumpulan Wang Persaraan (KWAP)
- Lembaga Tabung Angkatan Tentera (LTAT)
- Lembaga Tabung Haji (TH).
Since August 2024, these six institutions have channelled over RM800mn into Malaysia’s semiconductor ecosystem. They have also initiated green industrial development projects across 3,000 acres in Kerian and Carey Island. More than 50 Malaysian companies and funds have received backing through venture capital and private equity.
In addition, the GLICs and their GLC networks have awarded RM200mn in scholarships, facilitated job placements for 8,000 youths from the B40 group, and supported community initiatives that have reached over 700,000 people across the country.
GEAR-uP continues to gain strong momentum towards its five-year target of mobilising RM120bn into the domestic economy. This progress is seen as critical in anchoring Malaysia’s industrial and socioeconomic development, particularly in light of global trade shifts and economic uncertainty.
Over the coming years, the six participating GLICs will continue executing the RM11bn in investments that are already in the pipeline.
PNB is spearheading efforts to develop 10 Bumiputera companies into IPO-ready businesses. This includes a potential listing from the Ekuinas portfolio under the Bumiputera Relay Race.
In the healthcare space, EPF will expand its investments in both healthcare and aged care. Areas of focus include ambulatory centres, home-based services, and enabling technologies aimed at improving access, efficiency, and affordability across the country.
Meanwhile, LTAT and PNB are working to strengthen domestic pharmaceutical production. This includes the development of biopharmaceuticals and the prioritisation of first-to-market generics, with the goal of improving supply stability and reducing costs. These efforts also support wider reforms under the MOF–Ministry of Health Joint Ministerial Committee on Private Healthcare Cost, which seeks to modernise care, attracting investment, and ensuring fair returns.
Khazanah will continue to focus on deepening Malaysia’s semiconductor ecosystem. The emphasis will be on advanced manufacturing and strengthening partnerships between local firms and multinational companies.
KWAP, on its part, will begin deploying RM6bn through its Dana Pemacu fund from the third quarter of 2025. The fund will invest across private equity, infrastructure, and real estate over the next four to five years. A second fund, Dana Perintis Series 2, is also scheduled to launch in the fourth quarter of 2025.
YB Senator Datuk Seri Amir Hamzah Azizan, Finance Minister II said: “We’re unlocking RM120bn to advance future industries while lifting incomes, building capabilities, and delivering on shared prosperity. This is how we translate economic reform into tangible results."
As GEAR-uP moves forward, its scope will widen to include more than 30 GLCs under the participating GLICs. These companies will work towards shared goals such as achieving RM100bn in collective market capitalisation, delivering 7.5% shareholder returns, and driving non-financial outcomes such as implementing living wages, developing Bumiputera enterprises, and building future-ready talent.
Read more: MOF and MOH join forces to tackle private healthcare inflation in Malaysia
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