Malaysia is poised for significant economic transformation, with expected impacts across various sectors, according to economist Stephen Innes. Innes, managing partner at SPI Asset Management, detailed the Finance Ministry’s recent announcement of an additional RM120 billion domestic direct investments initiative, which will be implemented through government-linked investment companies over the next five years. This initiative, termed GEAR-UP, is spearheaded by Prime Minister Datuk Seri Anwar Ibrahim, who also serves as the Finance Minister.
The GEAR-UP plan aims to enhance critical areas such as green technology, infrastructure, and the Johor-Singapore Special Economic Zone (SEZ). These targeted investments are intended to drive job creation, stimulate sectoral growth, and attract foreign direct investment. Innes noted that Anwar’s “Malaysia MADANI” framework promotes a civil and inclusive society based on sustainable development, aligning with these strategic investments.
According to Innes, Anwar’s leadership is focused on fostering long-term economic resilience and inclusivity, which could improve Malaysia’s regional and global standing. The emphasis on green technology and infrastructure positions Malaysia to lead within ASEAN, creating new expertise, industries, and diversifying the economy beyond traditional natural resources.
Investments in infrastructure are expected to enhance Malaysia’s attractiveness for future investments, with anticipated benefits including a robust infrastructure, a fortified high-tech sector, and improved economic indicators. The first phase of GEAR-UP involves six government-linked investment companies: Khazanah Nasional Bhd, the Employees Provident Fund, Kumpulan Wang Persaraan (Diperbadankan), Permodalan Nasional Bhd, Lembaga Tabung Haji, and Lembaga Tabung Angkatan Tentera.
Innes also highlighted that while there is cautious optimism among economists and investors regarding the potential of these investments, challenges such as implementation delays, funding issues, and the need for a skilled workforce remain. The success of this initiative will depend on effective management and integration with Malaysia’s broader economic objectives and global market dynamics.
Overall, the focus on sustainability and technological innovation, combined with inclusive societal values, is set to refine Malaysia’s socio-economic landscape, paving the way for a new era of prosperity and resilience under Anwar’s leadership.
