Malaysia taps state funds to invest $35.4 billion domestically
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The funds will put money into industries such as energy transition and advanced manufacturing in semiconductors.
PHOTO: AFP
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KUALA LUMPUR – Malaysia is setting up a programme to tap state-linked funds to make RM120 billion (S$35.4 billion) in direct investments locally in the next five years to “catalyse growth in key economic sectors”, its Ministry of Finance said.
The funds, managing a combined RM1.8 trillion in assets, will put money into industries such as energy transition and advanced manufacturing in the semiconductor space, the ministry said in a statement on Aug 8.
The six organisations that have pledged to make the investments include Khazanah Nasional, Permodalan Nasional, Kumpulan Wang Persaraan Diperbadankan and the Employees Provident Fund, the ministry added.
The investment firms have “the financial capacity to effect the nation’s ascent in the economic value chain”, Malaysian Prime Minister Anwar Ibrahim said in the statement.
The ministry said the plan will be on top of the RM440 billion of investments that the state funds have already made in public markets.
Separately, national trust fund Kumpulan Wang Amanah Negara, which is currently funded by Petroliam Nasional, commonly known as Petronas, will be strengthened with new sources of contributions to retain the wealth of future generations, according to the ministry.
Malaysia’s policymakers have in 2024 encouraged state-linked firms and funds to repatriate their overseas income to help shore up the ringgit after it slumped to a 26-year low in February.
The local currency rose 0.8 per cent against the US dollar to trade near the strongest level since April 2023 on Aug 8. BLOOMBERG
