Malaysia's government-linked investment companies have sharply accelerated their domestic capital deployment, channelling RM20.3 billion into the economy during 2025 as part of the Government-Linked Enterprises Activation and Reform Programme (GEAR-uP). This represents a dramatic jump from the RM6.6 billion deployed in the programme's previous year, signalling a shift towards more aggressive deployment of national wealth in pursuit of tangible economic transformation. Prime Minister Datuk Seri Anwar Ibrahim, speaking at the release of the GEAR-uP Progress Report, stressed that this capital injection is fundamentally different from conventional investment seeking passive financial returns. Instead, he characterised the initiative as national wealth mobilised with deliberate national purpose, reflecting a strategic pivot to ensure economic gains reach ordinary Malaysians at a time when global volatility continues to reshape international markets and trade patterns.
The GEAR-uP framework, spearheaded by the Ministry of Finance and formally launched in 2024, aims to unlock RM120 billion over five years to drive socioeconomic reforms and accelerate Malaysia's transition towards higher-value industrial sectors. The programme is anchored by six substantial government-linked institutions: Khazanah Nasional Bhd, the Employees Provident Fund (EPF), Permodalan Nasional Bhd (PNB), Kumpulan Wang Persaraan (Diperbadankan) (KWAP), Lembaga Tabung Angkatan Tentera (LTAT), and Lembaga Tabung Haji (TH). These entities collectively control some of Malaysia's most substantial institutional capital pools, and their coordinated deployment represents a significant policy shift towards directing these resources into domestic priorities rather than purely profit-maximising international placements. The momentum established in 2025 is expected to continue through the first quarter of 2026, suggesting sustained commitment to the programme's trajectory.
Among the tangible infrastructure projects now advancing under GEAR-uP's momentum are data centre developments that exemplify the digital economy pivot. KWAP-backed expansion of Google's Selangor data centre is anticipated to generate an additional 320 megawatts of capacity and create approximately 26,500 jobs by 2027, while complementary infrastructure development through Empyrion Digital's phased expansion in Johor adds further momentum to Malaysia's positioning as a regional data hub. These projects represent precisely the type of capital deployment the programme intends: investments that simultaneously address Malaysia's shortage of high-capacity digital infrastructure and generate quality employment across the technology sector. For Malaysian policymakers, such developments carry strategic weight given the region's growing competition for data centre investment and the geopolitical implications of digital infrastructure concentration.
On the venture and growth capital dimension, specialised GLIC funds including Dana Impak, Dana Perintis, Dana Pemacu, and Ekuinas are actively shepherding Malaysian companies through the critical transition from early-stage venture status towards growth trajectories. Khazanah's newly announced Dana Ciptawan initiative adds a further RM200 million specifically targeting Bumiputera enterprises and mid-tier Malaysian firms, directly addressing longstanding concerns about equitable access to expansion capital among indigenous business communities. These intermediate financing mechanisms address a structural gap in Malaysia's capital markets where many promising companies struggle to access the growth-stage funding necessary to scale operations and compete internationally. The philosophy underpinning these funds reflects growing recognition that Malaysia's economic future depends not merely on attracting foreign capital but on developing indigenous champions capable of competing on regional and global stages.
Capital market development represents another critical dimension of GEAR-uP's architecture. Government-linked companies remain on track to achieve RM100 billion in additional market value by 2028, while the MY Value Up initiative extends comparable governance and value-creation disciplines to Malaysia's 88 largest listed companies. These efforts directly support achievement of the Capital Market Masterplan's ambitious target of RM5.8 trillion to RM6.3 trillion in total market capitalisation by 2030. For Malaysia's investors and the broader financial ecosystem, this coordinated focus on market depth and corporate governance standards carries implications for international capital flows and the country's positioning among emerging Asian financial centres. A robust, well-governed capital market becomes increasingly vital as Malaysia seeks to reduce dependence on narrow sectors and attract sophisticated institutional investment.
Infrastructure investment through GLCs continues at substantial scale, with Tenaga Nasional Bhd's grid modernisation programme advancing under its Regulatory Period 4 framework. TNB's grid investment is projected to escalate from RM12 billion in 2025 towards RM15 billion by 2027, essential backing for Malaysia's commitment to achieving 70 per cent renewable energy in installed capacity by 2050. Malaysia Airports has concurrently advanced a five-year RM11 billion upgrade programme targeting expansion of Kuala Lumpur International Airport's capacity towards over 100 million annual passengers. These investments in energy transition and transport infrastructure represent not merely maintenance of existing systems but deliberate positioning for the post-carbon economy that will define the coming decades. For Malaysia's manufacturing and services sectors, reliable renewable energy and expanded airport capacity directly improve competitive positioning within Southeast Asia.
Bumiputera economic empowerment occupies explicit focus within the GEAR-uP framework, reflecting recognition that inclusive growth requires targeted acceleration of indigenous business capability. Ten Bumiputera companies are targeted for capital market listing during 2026-2027, while the 10 Bumiputera Champions Programme works to scale participating enterprises towards regional competitiveness. Concurrently, Zakat Wakalah—a faith-based financing mechanism—is targeting RM100 million in annual deployment by 2026, up from RM28 million previously. These initiatives directly address historical imbalances in entrepreneurial capital access while leveraging Islamic finance principles aligned with Malaysia's multicommunal fabric. The targeted listing approach recognises that Bumiputera advancement requires not merely subsidy or preferential access but genuine capacity-building and integration into mainstream capital markets on fundamentally sound commercial bases.
Finance Minister II Datuk Seri Amir Hamzah Azizan reframed GEAR-uP's ultimate measure of success beyond purely financial returns. While acknowledging the portfolio's 8.0 per cent total shareholder return in 2025, he emphasised that capital effectiveness ultimately translates into living wages for workers, quality employment for graduates, scaled Bumiputera firms, and supply chains developing genuine domestic roots. This conceptual shift—measuring success through employment quality, wage levels, and indigenous firm development rather than purely asset returns—reflects evolving thinking about how institutional capital can serve broader development objectives. For Malaysian workers and businesses, this framing promises that growth generated through GEAR-uP investments should manifest in tangible improvements in living standards and economic opportunity rather than being concentrated within financial sector gains.
The broader context positioning GEAR-uP involves Malaysia's navigation of significant external turbulence arising from global economic volatility and reshaping of international trade patterns. The government successfully stabilised Malaysia through earlier reforms implemented in 2023, providing foundation for GEAR-uP's launch in 2024. The programme's strategic direction was established at inception, with subsequent performance focused on disciplined delivery across multiple sectors simultaneously. The report identifies the coming three years as carrying substantial opportunities already in motion and progressively accessible to broader population segments. As global supply chains continue reorientation and developed economies pursue strategic decoupling from certain trading partners, Malaysia's capacity to develop indigenous champions and deepened domestic supply chains becomes strategically valuable for both national resilience and regional positioning.
The fundamental task assigned to GEAR-uP involves converting capital that Malaysia attracts into durable domestic capability: an ecosystem sufficiently deep to retain investment, firms capable of evolving into regional champions, and capital flows reaching ordinary Malaysians through better employment terms, stronger local supply chains, and higher-value work opportunities. Institutional commitment to staying the course through GEAR-uP's five-year arc becomes critical given the extended timeframes required for infrastructure projects, firm maturation, and supply chain development. True economic success, as articulated in the programme's conception, ultimately depends on how widely capital deployment benefits are distributed and how effectively generated growth translates into improved material circumstances for Malaysian workers and communities. GLICs and government-linked companies signal commitment to sustained deployment and delivery, allowing the ecosystem under development to establish genuine roots and flourish across Malaysia's economic landscape.
