GEAR-uP needs a transparency tune-up

GLOBALLY, whenever government-led investment schemes take off, many get worried.

Their concerns often relate to inflation, rising debt levels, market distortions, inefficiencies, corruption and uncertain returns.

Conversely, people tend to accept – and even support – such schemes when they see clear long-term benefits for the nation.

So naturally, the public are now debating whether to support or worry about the headline figure of RM16bil invested in just a year under the government-linked Enterprises Activation and Reform Programme (GEAR-uP).

To recap, GEAR-uP was launched mid last year, led by the Finance Ministry (MoF) to mobilise investments and reforms via government‑linked investment companies (GLICs).

The investments are deployed into high-growth, high-value (HGHV) sectors, such as semiconductors, clean energy (energy transition), healthcare, and bio‑pharmaceuticals.

It is meant to create regional champions, among other goals.

This week, MoF said RM16bil has already been deployed, with a further RM12bil under evaluation.

In fact, the six major GLICs anchoring the programme have committed to mobilising RM120bil over five years.

Putting significant money into HGHV sectors will certainly help spur domestic champions – but the programme could do with more transparency.

While each investment goes through the respective GLICs’ investment committees, the public will naturally want to know which companies or projects received funding, and how much.

Questions also remain on how much was deployed directly versus through third-party funds, and what specific criteria guided the GLICs’ selection of firms or funds.

We know that GEAR‑uP has clearly made a serious start, with sizeable amounts channeled into strategic sectors.

The programme seems to have momentum and ambition, but from a transparency and accountability perspective, more can be done.

Detailed disclosures of funding recipients, investment amounts and performance metrics would go a long way toward building public confidence in the programme.