(Bloomberg) -- Malaysia is setting up a program to tap state-linked funds to make 120 billion ringgit ($27 billion) in direct investments locally in the next five years to “catalyze growth in key economic sectors,” the Ministry of Finance said.
The funds, managing a combined 1.8 trillion ringgit 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 Thursday. The six firms that have pledged to make the investments include Khazanah Nasional Bhd., Permodalan Nasional Bhd., 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 plan will be on top of the 440 billion ringgit of investments that the state funds have already made in public markets, the ministry said.
Separately, national trust fund Kumpulan Wang Amanah Negara, which is currently funded by Petroliam Nasional Bhd., will be strengthened with new sources of contributions to retain the wealth of future generations, according to the ministry.
Malaysia’s policymakers have this year 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% against the dollar to trade near the strongest level since April 2023 on Thursday.
(Updates with further details from Ministry of Finance starting in third paragraph)
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