Latest news with #GEARuP
Malay Mail
5 days ago
- Business
- Malay Mail
Finance Ministry sees moderate growth for Malaysia in 2026 amid global trade uncertainty
KUALA LUMPUR, Aug 8 — Malaysia's economy is expected to grow at a moderate pace in 2026 amid heightened global trade uncertainties and subdued external demand, said the Ministry of Finance (MoF). In its Pre-Budget Statement 2026, the minister stated that growth will be anchored by resilient domestic demand, particularly through private investment, stable employment, and income-enhancing measures such as targeted cash transfers and wage increases. The tourism sector, driven by Visit Malaysia 2026, is also set to contribute significantly to services growth. 'In this context, Budget 2026 will prioritise strengthening domestic sources of growth, diversifying export markets, and expanding household income opportunities. 'Public investment will be advanced through strategic projects under the 13th Malaysia Plan (13MP) and increased domestic direct investment (DDI) by government-linked investment companies (GLICs) through the Government-linked Enterprises Activation and Reform Programme (GEAR-uP), reinforcing the foundations for inclusive and sustainable economic resilience,' said MoF. In the first quarter of 2025, gross domestic product (GDP) expanded 4.4 per cent, driven by household consumption, investment and the construction sector. The momentum is expected to continue in the second quarter of 2025, with an advance estimate indicating growth at 4.5 per cent. Despite global developments, the Malaysian economy remained resilient and is projected to expand by 4.0 per cent to 4.8 per cent in 2025. Inflation abated further to 1.1 per cent in June 2025 from 2.0 per cent in the previous year, marking the lowest pace in 52 months. Meanwhile, the labour market continued to strengthen, with the national unemployment rate declining to 3.0 per cent in May 2025, down from 3.3 per cent in May 2024. The government, it said, remain committed to fiscal consolidation and continues to target narrowing the fiscal deficit to 3.8 per cent in 2025, from 4.1 per cent in the preceding year — resuming the gradual consolidation from 5.0 per cent in 2023 and 5.5 per cent in 2022. Besides, new debt eased from RM99.4 billion in 2022 to RM92.6 billion in 2023. MoF said the downward trajectory continued in 2024, with new debt amounting to RM76.8 billion. On currency, the ringgit emerged as one of Asia's best-performing currencies as at Aug 6, 2025, appreciating 5.8 per cent to RM4.2270 against the US dollar. 'Despite a challenging global environment, demand for the ringgit remains supported by strong economic fundamentals and investor confidence,' said the ministry. Among government's strategic initiatives which showed significant results include, securing RM384.4 billion in approved investments in 2024, marking the second straight year of record-breaking performance (2023; RM329.5 billion), and was given credit rating position of A3 by Moody's Investor Service, A- by S&P Global Ratings and BBB+ by Fitch Ratings, all with a 'Stable' outlook. 'Malaysia made the biggest leap in the IMD World Competitiveness Ranking 2025, jumping 11 spots to 23rd out of 69 economies, its best showing since 2020, and the only country to record a double-digit improvement,' it said. Accordingly, the GEAR-uP programme has mobilised RM11 billion in investments into high-growth sectors, and at the same time, leading government-linked investment companies (GLICs) and their associated government-linked companies (GLCs) commit to a RM3,100 minimum wage for 153,000 workers. Meanwhile, the government has shifted to targeted subsidies, raising Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) allocations to RM15 billion, including a one-off RM100 SARA credit for all adults. MoF also said fiscal resilience is being strengthened through tax base expansions and new tax measures. Key infrastructure upgrades include Light Rail Transit Line 3 (LRT3), Electric Train Service (ETS) extension to Johor Bahru, East Coast Rail Link (ECRL), and Rapid Transit System (RTS) Link, while healthcare and climate projects, such as Hospital Sultanah Aminah 2 and RTB Kota Bharu, advance. In Sabah and Sarawak, priority remains on expanding access to roads such as the Pan Borneo Highway, clean water through the construction of a water treatment plant in Landeh, Sarawak and rural connectivity, including the construction of the main electricity supply substation in Paitan, Sabah. — Bernama
Malay Mail
31-07-2025
- Business
- Malay Mail
Govt strengthens national policies via Madani Economy, with bold reforms and inclusive growth under 13MP, says PM
KUALA LUMPUR, July 31 — The Madani government has boldly and decisively shaped the direction of national policies through the formulation of a comprehensive framework known as the Madani Economy that is based on sustainability, the people's well-being, and governance with integrity. Prime Minister Datuk Seri Anwar Ibrahim said that under this framework, the government has initiated structural economic reforms, including the New Industrial Master Plan (NIMP 2030), National Energy Transition Roadmap (NETR), National Semiconductor Strategy (NSS), and National TVET Policy 2030. In addition, the private sector has forged ahead along with the government — for example, the GEAR-uP programme, led by government-linked investment companies, has boosted domestic direct investments. 'The KL20 Action Plan was also introduced with the aspiration of making Kuala Lumpur one of the top 20 global startup ecosystems. Since its launch in April 2024, the capital's position in the 2025 Global Startup Ecosystem Report has risen to 68th place, with 4,464 registered startups. 'We are now on the right track to reach the target of 5,000 startups by the end of this year. At the same time, venture capital firms with average assets under management (AUM) reaching US$400 million (RM1.7 billion) have also shown interest in operating in Malaysia,' he said when tabling the 13MP in Parliament today. Anwar said that to further stimulate domestic economic activity, investments through strategic collaborations with the industry continue to be strengthened. This includes initiatives like the Johor–Singapore Special Economic Zone (JS-SEZ) and the Kulim Hi-Tech Park (KHTP), which have successfully attracted both foreign and domestic investments in high-tech sectors. He also noted that development efforts have been expanded to include the Kerian Integrated Green Industrial Park (KIGIP) and the Automotive High Tech Valley (AHTV) in Tanjung Malim, Perak, as well as strategic industrial parks in Sabah and Sarawak. Meanwhile, Anwar said the government is also undertaking legislative reform through the enactment or amendment of over 80 laws, including the ILTIZAM Act, Data Sharing Act, Police Act, and the Child Act. 'Enforcement agencies such as the Malaysian Anti-Corruption Commission (MACC), National Audit Department, and Malaysia Competition Commission (MyCC) have also been strengthened in an effort to combat corruption, leakages, and abuse of power in a more comprehensive and effective way,' he added. He also noted that fiscal management has been enhanced through the enactment of the Public Finance and Fiscal Responsibility Act as part of ongoing efforts to reduce the national deficit. In addition, the government is continuing its efforts to curb the rising cost of living through the better implementation of targeted subsidies, such as for diesel and electricity, to ensure that aid reaches the targeted groups without wastage. 'The Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) have also been increased. SARA recipients have been expanded from the initial 700,000 hardcore poor to 5.4 million recipients, including the B40 group. 'Last week, I also announced a one-off SARA cash aid of RM100 for all citizens aged 18 and above, involving an allocation of RM2 billion. As a result, the total allocation for STR and SARA assistance in 2025 will reach RM15 billion,' he said. Anwar also said the government has increased people's incomes through the minimum wage order, progressive wage policy and Public Service Remuneration System (SSPA). He said the Madani government has successfully raised the minimum wage twice — from RM1,200 to RM1,500, and then to RM1,700. Meanwhile, a living wage benchmark of RM3,100 per month has also been set for employees of government-linked companies (GLCs) and government-linked investment companies (GLICs). 'TVET graduates are also enjoying increasingly competitive salaries, with most earning above the RM1,700 minimum wage. A total of 95.6 per cent of TVET graduates have secured employment within six months of completing their training,' he said. On a separate matter, Anwar said that emphasis has also been given on basic infrastructure projects, including the upgrading of schools; dilapidated clinics; quarters for teachers, the armed forces and police; road maintenance; and flood mitigation projects. 'To date, 1,368 Royal Malaysia Police (PDRM) and 3,088 Malaysian Armed Forces (ATM) housing units have been completed, with an additional 8,501 units being under construction. 'At the same time, a total of 69,141 existing housing units for ATM and PDRM personnel have been repaired and upgraded,' he added. — Bernama
Malay Mail
30-06-2025
- Business
- Malay Mail
Amir Hamzah: RM11b deployed under GEAR-uP to power Malaysia's high-growth sectors, aims to boost living wages for 153,000 workers
PUTRAJAYA, June 30 — A total of RM11 billion has been deployed under the Government-linked Enterprises Activation and Reform Programme (GEAR-uP) as of June 30, 2025, less than a year since the initiative spearheaded by the Ministry of Finance (MOF) was launched. In a special briefing on the GEAR-uP 2025 Progress Report, Finance Minister II Datuk Seri Amir Hamzah Azizan said the amount forms part of the RM22 billion in domestic direct investments identified, representing 88 per cent of the RM25 billion pledged by six major government-linked investment companies (GLICs). He said the funds are being channelled into high-growth, high-value sectors such as semiconductors, the energy transition, community upliftment, and talent development. 'The programme has also secured commitments from 34 GLICs and government-linked companies (GLCs) to provide at least a minimum monthly living wage of RM3,100 to 153,000 employees — delivering on its promise to raise the rakyat's quality of life and lead the national agenda for wage reform. 'Guided by the objectives and principles of the Ekonomi Madani framework, GEAR-uP aims to unlock RM120 billion over five years to drive socioeconomic reforms and jumpstart Malaysia's industrial transformation,' he added. The six GLICs anchoring the programme 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 in August 2024, the six core GLICs have channelled over RM800 million into Malaysia's semiconductor ecosystem, kickstarted green industrial development across 3,000 acres (1,214 hectares) in Kerian and Carey Island, and backed more than 50 Malaysian companies and funds through venture capital and private equity. Amir Hamzah said the GLICs and their network of GLCs have also awarded RM200 million in scholarships, supported 8,000 B40 youths through job placement programmes, and rolled out community investments benefiting over 700,000 Malaysians nationwide. 'GEAR-uP is not just about capital deployment — it is about strategic alignment. We are unlocking RM120 billion to advance future industries while lifting incomes, building capabilities, and delivering on shared prosperity. This is how we translate economic reform into tangible results. 'This goes beyond strengthening economic fundamentals. GEAR-uP is about uplifting the rakyat's standard of living and nurturing regional champions in cutting-edge industries, so that Malaysia can rise to new heights,' he said. Looking ahead, Amir Hamzah said GEAR-uP will expand its scope to involve over 30 GLCs under participating GLICs. Through this expansion, it targets to achieve RM100 billion in market capitalisation, deliver 7.5 per cent shareholder returns, and champion non-financial outcomes — including the implementation of living wages, growing Bumiputera enterprises, and developing talent and future leaders. — Bernama
Free Malaysia Today
11-06-2025
- Business
- Free Malaysia Today
Bouquets and brickbats for financial irregularities task force
Edmund Terence Gomez (left) believes it can help to curb corruption in government-linked companies (GLCs), but social activist Johan Ariffin Samad (right)sees it as just another layer of bureaucracy. PETALING JAYA : The decision to set up a special task force to address financial irregularities in the government has drawn both praise and criticism. Anti-corruption advocate Edmund Terence Gomez believes it can help to curb corruption in government-linked companies (GLCs), but social activist Johan Ariffin Samad sees it as just another layer of bureaucracy in an already-established system of rules and regulations. Gomez, a professor emeritus at Universiti Malaya, noted that some GLCs had previously been embroiled in financial scandals. 'The task force will have a major role to play if it is to undertake an in-depth review of such irregularities,' he told FMT. 'This is because some institutions within the GLC ecosystem, which includes government-linked investment companies (GLICs), statutory bodies as well as listed and unlisted companies, have also been implicated in financial scandals,' he said. For a start, he said, the task force could oversee initiatives such as GEAR-uP, the plan that will see six GLICs invest RM120 billion in 'high growth, high value' industries over five years to stimulate domestic economic growth. 'Given how GLIC funds have allegedly been abused, it is worrying that such a huge sum of public funds will be placed in these institutions for domestic investment,' he added. On June 3, Prime Minister Anwar Ibrahim announced that the government would be setting up a special task force to address financial irregularities, saying that this was part of efforts to strengthen the role of the National Audit Department. The initiative will be realised through an amendment to the Audit Act 1957. Anwar said the new task force would ensure that follow-up actions are more holistic, targeted and have high impact. This, he said, was in keeping with the principles of accountability, transparency, and integrity. Last month, auditor-general Wan Suraya Wan Radzi said the amendments to the Audit Act, which came into force last year, empower the department to conduct audits on 1,856 GLCs. She was quoted as saying the amendment expands the department's scope, thereby strengthening the government's oversight of governance and financial management within GLCs. The opposing view Johan, a member of the G25 group of prominent former civil servants, argued that a system to deal with financial irregularities is already in place. 'You already have the audit department, and you have the Malaysian Anti-Corruption Commission (MACC). Where does this task force fit in? 'Basically, the auditor exposes the weakness in the system, and MACC is supposed to catch the culprits who broke the system or stole something from the system,' he told FMT. 'To me, it's just a waste of time. You're just creating another (layer to the) bureaucratic system,' he added. Johan, who is commonly known as Joe Samad, said the Audit-General's Reports, which are published three times a year, should be tabled for debate in Parliament. 'Then it is the task of the Public Accounts Committee to ensure that (any irregularity) is dealt with,' he added.
