GLCs to invest in startups with investments of RM1.5 billion - Anwar

KUALA LUMPUR - Government-linked companies (GLCs) such as Khazanah Nasional Bhd and the Employees' Provident Fund (EPF) will invest in innovative and high-growth local startups with an investment of RM1.5 billion.

Prime Minister and Minister of Finance Datuk Seri Anwar Ibrahim said, with the cumulative investment value of GLCs estimated at RM50 billion this year, the role of the GLCs and government-linked investment companies (GLICs) as the driver of the country's economy is huge.

"The government proposes to extend the tax deduction of up to RM1.5 million for listing expenses on the ACE Market and LEAP market up to year of assessment 2025.

"The tax deduction also covers listing cost for technology-based companies on the Main Board of Bursa Malaysia,” he said when tabling Budget 2023 in Dewan Rakyat, yesterday.

Government agencies, he said, will also increase the capital space as well as attract the interest of local talent in the high-innovative sector.

"(A total of) RM40 million is provided under the Malaysia Coinvestment Fund (MyCIF) as matching grants to support the alternative funding approach. This will make the total funds available under MyCIF to RM300 million.

"The Securities Commission will also facilitate a wider secondary market for private sector instruments to increase the liquidity and enabling a better price discovery,” he said.

To encourage the listing of local high-growth technology companies, he said the government will allow the issuance of dual-class shares. - BERNAMA