Budget 2027 mobilises RM25 billion through GLICs to boost local firms, support startups and strengthen high-value sectors including semiconductors, aerospace and digital technology.
PETALING JAYA: Government-linked investment companies (GLICs) will mobilise RM25 billion in domestic investments under the GLICs Empowerment (GEAR-uP) initiative to strengthen local companies and drive growth in high-value industries.
Finance Minister Datuk Seri Anwar Ibrahim said approved investments reached RM218.5 billion in the first half of 2026, an increase of 11.7%, putting Malaysia on track to achieve a new record for the third consecutive year.
“This means we are on track to achieve a new record for the third consecutive year,” he said when tabling Budget 2027 in the Dewan Rakyat today.
He said GLICs had been entrusted with building domestic economic resilience and enhancing the capabilities of local companies in high-value sectors.
“Among the initiatives, Sime Darby Property, the Employees Provident Fund (EPF) and the Armed Forces Fund Board (LTAT) have established a RM1.25 billion New Economy Venture Fund to develop data centres and logistics assets in Elmina, Selangor.
“Khazanah Nasional Bhd and the Retirement Fund (Incorporated) (KWAP) will also invest RM1.2 billion to help local semiconductor companies move into higher-value segments. This includes cooperation between Khazanah and the Selangor state government through an investment fund to develop the semiconductor industry in the state,” he said.
Anwar said startups needed a comprehensive pathway from the idea stage to seed capital and expansion, while mid-tier companies needed to become more competitive to lead high-value industries.
“To support startups, Khazanah’s Jelawang Capital and KWAP’s Dana Perintis will invest RM450 million in their development.
“Meanwhile, the New Industrial Master Plan (NIMP) Fund, KWAP’s Dana Pemacu and Khazanah’s Dana MTC, with a combined value of RM2.1 billion, will strengthen mid-tier companies in sectors including electrical and electronics (E&E), digital technology, aerospace and medical devices.”
Anwar said the government will also provide RM270 million to attract private capital through equity crowdfunding (ECF) and peer-to-peer (P2P) financing platforms, supporting small and medium enterprises (SMEs), mid-tier companies and social enterprises.
He said income tax exemptions for individual investors using ECF platforms and angel investors financing early-stage technology startups will be extended until Dec 31, 2030.
“Cradle Fund will receive RM41 million to implement the Startup Ecosystem Roadmap and provide prototype development and commercialisation grants.
“The SemiconStart initiative by the Malaysian Technology Development Corporation (MTDC) will provide follow-on equity investments to startups in areas such as integrated circuit (IC) design and advanced packaging.”
