GLCs and GLICs Driving Economic Resilience Through Reinvestment
Malaysia’s Government-Linked Companies (GLCs) and Government-Linked Investment Companies (GLICs) are playing a pivotal role in shaping the nation’s future by strategically channeling their revenue into sectors that promise long-term growth and sustainability. These companies are heavily investing in sustainable industries, digitalization, and renewable energy—sectors that are emerging as key pillars of Malaysia’s economic resilience. By focusing on these forward-thinking investments, GLCs and GLICs are not only enhancing their own growth but also fostering broader economic stability and innovation. These efforts lay the foundation for a more robust and sustainable economy, driving future prosperity for both the companies and the nation.
Figure 1: Fiscal deficit projected continue to narrow
Figure 2 & 3: Malaysian government revenue below peers & Effective DevEx allocation remains high
The Malaysian government’s strategic investments, particularly through GLCs and GLICs, are essential for narrowing the fiscal deficit and boosting long-term economic resilience. Fiscal Deficit Projected to Continue to Narrow demonstrates the ongoing improvement in fiscal management, supported by the country’s focus on strategic reinvestment in sectors like renewable energy, digitalization, and sustainable industries. These investments contribute not only to corporate growth but also to national fiscal health, helping to reduce the deficit over time.
However, Malaysian Government Revenue Below Peers & Effective DevEx Allocation Remains High highlight the challenges Malaysia faces in revenue generation compared to its peers. Despite these challenges, Malaysia’s commitment to effective development expenditure (DevEx) remains high, with substantial allocations directed towards strategic sectors. This ongoing focus on targeted investments ensures that even in the face of lower revenue compared to other nations, Malaysia is laying the groundwork for a more resilient and diversified economy, ultimately narrowing fiscal gaps and preparing for future growth.
Figure 4: GDP growth projections for 2024 and 2025, %, year-on-year
GLCs and GLICs in Malaysia are reinvesting their revenue into strategic sectors like sustainable industries, digitalization, and renewable energy, strengthening the country’s long-term economic resilience. These investments not only promote the companies’ growth but also support Malaysia’s future economic stability.
By focusing on renewable energy, GLCs and GLICs help diversify Malaysia’s energy sources and prepare for a carbon-neutral future. Digitalization enables businesses to remain competitive in a fast-evolving global market, while investments in technology foster innovation and agility. These strategic moves position Malaysia to thrive in emerging global markets, ensuring continued growth and resilience against external challenges.
In essence, GLCs and GLICs are laying the groundwork for a sustainable, digitally advanced economy that benefits both the companies and Malaysia as a whole.