by AZREEN HANI / pic credit: tzafrulaziz FB

GOVERNMENT-linked investment companies (GLICs) welcome the launch of Perkukuh Pelaburan Rakyat, as it aims to improve and position these firms better in the long run.

Perkukuh, announced by Prime Minister Tan Sri Muhyiddin Yassin yesterday, focuses on six GLICs namely, Permodalan Nasional Bhd, Khazanah Nasional Bhd, the Employees Provident Fund, Armed Forces Fund Board (LTAT), Lembaga Tabung Haji (TH) and Retirement Fund Inc.

With 20 initiatives set to be implemented in 2024, Muhyiddin added that these are to ensure that GLICs will achieve five outcomes such as future-proofing GLICs with best-in-class governance, capabilities and strategies.

TH MD and Group CEO Datuk Seri Amrin Awaluddin said that in an increasingly competitive global environment, it is imperative for GLICs to take the next step.

“Perkukuh is an opportunity for Malaysia in this crisis. No doubt the pandemic presents a significant challenge, but we have overcome multiple economic downturns and it is time for GLICs to spearhead a new phase of transformation to support economic growth,” Amrin said.

It is also an opportunity to reset and strengthen the governance and financial position of the pilgrim’s fund, he added.

Meanwhile, Khazanah said that it will build upon and strengthen its role as Malaysia’s sovereign wealth fund, which is to invest to deliver sustainable value for Malaysians.

“We will do so by investing to achieve long-term risk adjusted returns and grow our financial assets,” it said in a statement yesterday.

“From this position of strength, we can undertake catalytic investments and other activities towards creating impactful economic and social benefits for Malaysia.”

Additionally, the fund said that it will sharpen its focus and enhance clarity of its mandate with greater accountability of its development investing through clear development-specific target outcomes and key performance indices.

“Accordingly, Khazanah will focus on high impact and commercially viable investments to catalyse new growth areas, build Malaysia’s economic competitiveness, and increase national resilience, while driving priority socio-economic outcomes, as called for under Perkukuh.”

Khazanah said it will also further enhance its investment strategies and processes for sustainable and responsible investing, as evident with its investment approach over the years.