GLCs to invest in start-ups with investments of RM1.5bil

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

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

"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 the listing cost for technology-based companies on the main board of Bursa Malaysia,” he said when tabling Budget 2023 in Dewan Rakyat today.

Government agencies, Anwar added, 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 Co-investment 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 enable a better price discovery,” he said.

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

- Bernama