Domestic Investments By Glics A Boost For Economy Says Ministry

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The finance ministry said the economy has been strengthened by the profits and growth reported by Khazanah and KWAP, supported by a strong stock market and better-than-expected GDP. (Envato Elements pic)
KUALA LUMPUR: Domestic strategic investments by government-linked investment companies (GLICs) are becoming increasingly important and play a key role in strengthening the economy from within as well as improving resilience against external impacts, the finance ministry says.
It said this addressed the rising uncertainties due to geopolitical turmoil, particularly in the US.
“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,” it said in a written parliamentary reply yesterday.
It was responding to Ahmad Amzad 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 improvements to the due diligence process framework by GLICs for investment approval and risk management, drawing lessons from the Fashion Valet investment losses by Permodalan Nasional Bhd (PNB) and Khazanah Nasional Bhd.
In August 2024, the six GLICs collectively committed to investing RM120 billion in domestic direct investments over five years, alongside RM440 billion in public market investments.
The six GLICs are Khazanah, PNB, EPF, the Retirement Fund (Incorporated) or KWAP, Lembaga Tabung Haji, and Lembaga Tabung Angkatan Tentera.
The finance ministry said the impressive profits and solid growth reported by Khazanah and KWAP, supported by a strong stock market and better-than-expected gross domestic product, further strengthened the progress of the economy. - FMT

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