RM11 billion deployed under GEAR-uP to boost high-growth sectors in Malaysia
PUTRAJAYA: The Government-linked Enterprises Activation and Reform Programme (GEAR-uP) has deployed RM11 billion as of June 30, 2025, marking significant progress since its launch in August 2024.
The Ministry of Finance (MOF) initiative aims to drive socioeconomic reforms and industrial transformation in Malaysia.
Finance Minister II Datuk Seri Amir Hamzah Azizan revealed that the RM11 billion forms part of RM22 billion in domestic direct investments identified, achieving 88 per cent of the RM25 billion pledged by six major government-linked investment companies (GLICs).
The funds are directed towards high-growth sectors such as semiconductors, energy transition, community upliftment, and talent development.
'The programme has secured commitments from 34 GLICs and government-linked companies (GLCs) to provide a minimum monthly living wage of RM3,100 to 153,000 employees,' said Amir Hamzah.
This move aligns with GEAR-uP's goal of improving living standards and leading wage reform under the Ekonomi MADANI framework.
The six core GLICs involved are Khazanah Nasional Bhd, the Employees Provident Fund (EPF), Permodalan Nasional Bhd (PNB), the Retirement Fund (Incorporated) (KWAP), Lembaga Tabung Angkatan Tentera (LTAT), and Lembaga Tabung Haji.
Since its launch, they have invested over RM800 million in Malaysia's semiconductor ecosystem and initiated green industrial projects across 3,000 acres in Kerian and Carey Island.
Additionally, more than 50 Malaysian companies and funds have received backing through venture capital and private equity.
The programme has also awarded RM200 million in scholarships, supported 8,000 B40 youths in job placements, and benefited over 700,000 Malaysians through community investments.
'GEAR-uP is not just about capital deployment — it is about strategic alignment,' Amir Hamzah emphasised. The initiative targets RM120 billion over five years to advance future industries while enhancing incomes and capabilities nationwide.
Looking ahead, GEAR-uP will expand to involve over 30 GLCs under participating GLICs, aiming for RM100 billion in market capitalisation, 7.5 per cent shareholder returns, and non-financial outcomes like living wages and Bumiputera enterprise growth.
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New Straits Times
3 hours ago
- New Straits Times
GEAR-uP initiative off to strong start with RM11bil deployed: Amir Hamzah
PUTRAJAYA: Finance Minister II Datuk Seri Amir Hamzah Azizan has expressed satisfaction with the progress of the Government-linked Enterprises Activation and Reform Programme (GEAR-uP). He noted that the initiative had made a promising start in its first year, with RM11 billion already deployed into high-growth, high-value sectors. "We started in August last year with a five-year target of RM120 billion, and already RM11 billion has been committed through capital deployment. So, I am very happy," he said during the Special Briefing: GEAR-uP 2025 Progress Report, here yesterday. Amir Hamzah said the GEAR-uP initiative had successfully translated commitments into action, including the establishment of 18 global and regional funds and strategic investments in local venture ecosystems and talent development. "In the long term, the GEAR-uP initiative will provide a much stronger base for Malaysia," he said. So far, the programme has trained over 8,000 youths — more than 70 per cent of whom are from B40 communities — with an employment rate of 80 per cent achieved. Apart from that, more than 700,000 individuals have benefited from support through government-linked investment companies (GLICs) and government-linked companies (GLCs) via community development efforts. These include the GLC Disaster Response Network (GDRN), Sekolah Angkat Madani, Santuni Madani, and Zakat Wakalah, he said. Amir Hamzah explained that GEAR-uP initiatives are aligned with two key themes under the Raise the Ceiling and Raise the Floor pillars of the Madani Economy framework. Under Raise the Ceiling, efforts focus on advancing economic complexity; strengthening firms of all sizes and stages of maturity; expanding access to affordable healthcare; promoting energy transition; modernising agro-industries; improving connectivity; and supporting Warisan KL. "Meanwhile, under the Raise the Floor theme, GLCs and GLICs will focus on empowering Bumiputera communities and businesses, upskilling and reskilling talent, ensuring fair wages, and championing the needs of the underprivileged," he said. On the issue of fair wages, he said nine GLICs and GLCs — including Permodalan Nasional Bhd, Khazanah Nasional, Employees Provident Fund (EPF), Kumpulan Wang Persaraan (KWAP), and Lembaga Tabung Haji — have committed to implementing a minimum salary of RM3,100 per month. "Another 25 GLICs and GLCs are expected to be announced by the end of this year," Amir Hamzah added. As part of ongoing efforts to transform healthcare and support dignified ageing, EPF will launch a RM25 million pilot phase of the Rakan Kementerian Kesihatan Malaysia (Rakan KKM) initiative in July 2025. The programme will be rolled out at five public hospitals under the Raise the Ceiling theme. The Health Ministry will announce the participating hospitals, with the first hospital expected to be launched by the end of the third quarter of this year. - BERNAMA
The Star
5 hours ago
- The Star
Asean News Headlines at 10pm on Monday (June 30, 2025)
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The Sun
5 hours ago
- The Sun
Taxing day for businesses
TODAY is set to be a crucial date in the Malaysian tax scene. To facilitate compliance, here is a recap of the changes that take will take effect. • Businesses with annual turnover of RM25 million to RM100 million are required to be in full compliance with e-invoicing requirements. Until June 30, 2025, businesses of the said size were allowed flexibilities to issue consolidated e-invoice on sales transactions as well as consolidated self-billed e-invoice on importation of goods and services. These flexibilities would cease to exist for transactions from July 1, 2025 onwards. • Businesses with annual turnover of RM5 million to RM25 million are required to implement e-invoice, but flexibilities are available for the first 6 months, i.e. until Dec 31, 2025. • Statutory bodies, statutory authorities and local authorities are required to issue e-invoice from July 1, 2025. Even after this date, there is an exception that expressly preclude requirement to issue e-Invoice in respect of collection of payment, fee, charge, statutory levy, summon, compound and penalty by the said bodies/authorities carrying out functions assigned to it under any written law. • Widening of scope of service tax to include education, higher education (for non-citizen), healthcare (for non-citizen), construction works, financial services, beauty & personal care services, as well as rental and leasing of movable and immovable properties. Service providers who are presently registered for service tax would charge 6% or 8% on these transactions from July 1, 2025 onwards. • Widening of scope of sales tax to include goods from over 3,000 HS Codes. This affects various products that belongs to HS Code chapters of plastics, rubber, wood, iron and steel, copper, nickel, aluminium, machinery, mechanical appliances etc., which were previously under the sales tax exemption order. Manufacturers who are presently sales tax registered are required to impose sales tax on these newly taxable goods starting from 1st July 2025. • Importation of various taxable goods are subject to sales tax from July 1, 2025. The newly taxable goods include the examples in the preceding point as well as fresh food items such fruits and seafoods. • Malaysian businesses that pay to foreign vendors in respect of the newly taxable services are required to self-account for a 6% or 8% service tax under the reverse charge mechanism. This requirements is independent of withholding tax requirements and applies from July 1, 2025 regardless of whether the Malaysian customer is a service tax registered person or not. Next 'big date' is Sept 1, 2025 • For service providers who are presently not service tax registered but provide services which are newly gazetted as a taxable service, an application for service tax registration must be submitted in August 2025 if the value of taxable service exceeds the registration threshold. Consequentially, the service provider shall impose service tax at a rate of either 6% or 8% on the value of taxable services effective from Sept 1, 2025. • For manufacturers who are presently not sales tax registered but sell goods which are no longer listed in the Ministerial Order on goods exempted from sales tax, an application for sales tax registration must be submitted in August 2025 if the value of taxable goods exceeds the registration threshold of RM500,000. Consequentially, the manufacturer shall impose sales tax at a rate of either 5% or 10% on the value of taxable goods effective from 1st September 2025. To-do before the year end Here are opportunities to bridge compliance gaps without penalty before we wrap up this year: 1. Employment agreements entered into during calendar year 2025 are to be stamped by Dec 31, 2025 without any late stamping penalty. 2. A comprehensive compliance review on agreements or contracts (inclusive of risk assessment) in view of the implementation of self-assessment for Stamp Duty effective January 1, 2026. There may be merits to close any compliance gap or risk areas by Dec 31, 2025 before self-assessment provisions in the Stamp Act takes legal effect. 3. In relation to SST expansion, businesses are granted grace period up to Dec 31, 2025 to make good any compliance gap without penalty. The tax, however, must be paid and it would be a cost to the vendor if the same cannot be recovered from the customer. New year, new beginnings Here are key tax changes that effect from Jan 1, 2026: 1. Consolidated e-invoice is not permitted for any single transaction with a value exceeding RM10,000. This means, if an individual buys, say, a luxury watch costing more than RM10,000, he or she would be required to provide their NRIC number or TIN to the vendor as a mandatory to complete the transaction. 2. Businesses with annual turnover of more than RM5 million to RM25 million are required to be in full compliance with e-invoicing requirements (flexibility ends on Dec 31, 2025). 3. Businesses with annual turnover of RM1 million to RM5 million are required to implement e-invoice, but flexibilities are available for the first 6 months – i.e. until June 1, 2026. 4. The first phase of implementation of self-assessment system for stamp duty, thus requiring businesses to independently evaluate the stamp duty payable on their agreements / instruments executed from this date onwards. Of course, the above is only based on changes legislation as of now. There could be more tax measures that take effect from 1st January 2026 as part of the 2026 Budget which is planned to be tabled in the parliament during the month October 2025. Concluding thoughts Gone the days businesses refer to a simple tax calendar each year filled with tax filing deadlines. The multiple tax measures rolled out recently to fine-tune the nation's tax system means that businesses must be more diligent in managing the tax affairs and meeting the due dates. While ensuring compliance is important, businesses must also perform holistic tax impact assessment with an aspiration to maintain competitiveness by optimising exemptions and embracing technology. Businesses should recognise the highly technical nature of some of the recent tax measures and seek professional input from professionals who are duly licensed, qualified and experienced to avoid unintended non-compliance. This article is contributed by Vivekanandan Vasudevan (pic) is Corporate & International Tax Manager at TRATAX Sdn Bhd, consulting firm specialised in tax, transfer pricing & SST.
