GLIC's Domestic Investment Strengthens Economy, Resistance Against External Impacts

KUALA LUMPUR, Feb 27 (Bernama) – Domestic strategic investments by government-linked investment companies (GLICs) are becoming increasingly important and play a key role in strengthening Malaysia's economy from within, and improving resilience against external impacts.

The Finance Ministry (MoF) said this addresses the rising uncertainties due to geopolitical turmoil, particularly in the United States.

"2024 was an exceptional year for GLICs, reflecting strong governance, investment discipline, and commitment to the nation's progress.

"With highly qualified management teams and robust risk frameworks, they continue to navigate the ever-evolving market landscape prudently and transparently," MOF said a written reply in the Dewan Rakyat published on the Parliament's website on Wednesday in response to Datuk Ahmad Amzad bin Mohamed @ Hashim (PN-Kuala Terengganu), who asked about the status of the RM120 billion investment commitment by six GLICs for domestic direct investments.

He also asked about the improvements made to the due diligence process framework by GLICs for investment approval and risk management, drawing lessons from the FashionValet investment losses by Permodalan Nasional Bhd (PNB) and Khazanah Nasional Bhd (Khazanah).

In August 2024, the six GLICs collectively committed to investing RM120 billion in domestic direct investment (DDIs) over five years, alongside RM440 billion in public market investments.

The six GLICs are Khazanah, PNB, the Employees Provident Fund (EPF), the Retirement Fund (Incorporated) or KWAP, Lembaga Tabung Haji, and Lembaga Tabung Angkatan Tentera (LTAT).

According to MoF, the impressive profits and solid growth reported by Khazanah and KWAP, supported by a strong stock market and better-than-expected gross domestic product (GDP), further strengthen the progress of the MADANI Economy.

-- BERNAMA