KUALA LUMPUR: The resources of government-linked companies (GLCs) and government-linked investment companies (GLICs) should be optimised to support Malaysia's economic growth and domestic direct investment (DDI).
Finance Minister II Datuk Seri Amir Hamzah Azizan said these entities, which collectively manage almost RM2 trillion in assets, can no longer focus solely on profit without taking greater corporate responsibility in nation-building.
"Now is the right time for GLIC and GLC to implement strategic investments that are in line with the New Industrial Master Plan (NIMP) and National Energy Transition Roadmap (NETR) and support the transformation of the Malaysian economy.
"As institutional investors, it is a critical role to support capital markets in providing capital to meet business expansion needs, which in turn drives economic growth," he said at the Institutional Investors Council Malaysia (IIC) Corporate Governance Conference 2024 here.
Amir Hamzah said that with Malaysia achieving record-high approved investments in 2023 of RM329.5 billion, there will be greater demand for financing for new DDI.
He said a good example of GLICs supporting direct domestic investments was the recent RM2 billion sale and leaseback facility for Osram's new facility, financed by the Employees Provident Fund (EPF), Permodalan Nasional Bhd (PNB), and the Retirement Fund Inc. (KWAP).
"The government therefore calls on institutional shareholders to be increasingly open to domestic direct investment opportunities, especially in new growth areas like energy transition, and to support investments raising the economic complexity of core sectors," he said.
Meanwhile, Securities Commission (SC) head Datuk Seri Awang Adek Hussin said the SC expects to see a broadening of investment options and, indirectly, investors' sphere of influence.
As announced last week, Awang Adek said the approval period for initial public offerings (IPOs) on both the Main Market and the ACE Market has also been shortened to three months, to attract quality companies to list and quality investors to participate.
"Finally, if the stewardship by asset owners and managers can be scaled up, the benefits to investors and to the wider society will certainly increase.
"With the initiatives pursued by the IIC to support and scale up the stewardship of its members, we look forward to seeing an even more active and impactful role of institutional investors in driving responsible and sustainable value creation in companies," he said.
The IIC Corporate Governance Conference 2024, with the theme 'Countdown to 2030: Investing Towards Sustainable Development in Malaysia, aims to establish a connection between corporate governance and the realisation of Malaysia's ambitions for sustainability.
A total of five sessions covered different topics, including the role of institutional investors in promoting sustainability and performance through good corporate governance, the role of corporate boards in managing sustainability, building market resilience through digital disruptions, as well as investing for social impact.
