Will there be more companies like $FFB / 5306 (FARM FRESH BERHAD) in the future?
Malaysia’s six major government-linked investment companies (GLICs)—Khazanah Nasional Bhd, EPF, KWAP, PNB, Lembaga Tabung Haji, and LTAT—have collectively committed RM120 billion in direct domestic investments over the next five years under a Finance Ministry-led initiative called GEAR-uP. Here's where each GLIC plans to focus their investments:
- Khazanah: Focuses on “A Nation That Creates” strategy, aiming to boost the country’s productivity and competitiveness by transforming firms for energy transition, digitalization, and enhancing Malaysia's connectivity through its aviation portfolio.
- KWAP: Strengthens Malaysia’s private market, focusing on private equity, infrastructure, and real estate. KWAP will also provide catalyst funding for venture capital and growth-stage firms, especially in sectors like food security and the digital economy.
- PNB: Modernizes industries in Malaysia by emphasizing high value-added and sustainable activities, such as new industrial parks, automation, smart agriculture in palm oil, green assets, and energy transition.
- EPF: Invests in sustainable healthcare through public-private partnerships, including the construction of a private wing in public hospitals.
- Tabung Haji: Expands the role of Islamic banks and strengthens the Islamic financial system through strategic cooperation with key industry players.
- LTAT: Enhances the value creation in Malaysia's pharmaceutical industry by expanding local biopharmaceutical production capacity, despite $PHARMA / 7081 (PHARMANIAGA BERHAD) still facing challenges and falling into PN17. 😂
Each GLIC has its focus area, and this time some GLIC will invest in private companies, rather than only emphasis on listed firms. If this program succeeds, could we see more private companies growing and eventually listing on the stock market, like $FFB / 5306 (FARM FRESH BERHAD)?
Farm Fresh is a prime example of success, with Khazanah backing it when it was still a small company. Today, it boasts a market cap exceeding RM2 billion and even surpassed RM3 billion during its peak.
