KUCHING: Development Bank Of Sarawak (DBOS) officially started its commercial operation with the opening of its office at SEDC Building, Isthmus Kuching here by Chief Minister Datuk Patinggi Abang Johari Tun Openg, yesterday.
DBOS, a wholly owned subsidiary of the State Financial Secretary, Sarawak was incorporated on 11 May, 2017 and it is part of the transformation of the state’s economy. “Now we have our own bank that will finance all our strategic projects, but of course the projects must have commercial value because once they have got the loans they have to repay the loans.
“This bank is a facility for the government to finance all our strategic projects that will propel our economy based on digital economy,” he said during a press conference after the opening of DBOS office, yesterday. Abang Johari added that the bank will finance our basic infrastructure which include our digital infrastructure i.e our internet infrastructure and those related to internet and connectivity; this bank also will finance part of our public transport system; Healthcare, Modern Agriculture and Infrastructure.
“This bank also must make money. So all projects financed by this bank have to be profit-driven projects.
And one area which is important is oil and gas. Our investment in oil and gas will be partly financed by this bank. “The bank will basically study all the applications for loans that will cover the strategic industry that will move forwards the economy.
At the moment, they are still studying the applications. There are a lot of applications but all the applications are government- related. “There is no limit to borrowing but depending on deposits from government-related agencies and the State’s own money deposited in other commercial banks.
“This bank will finance projects initiated by the government, but of course it must be viable. “In general, it shall carry out commercial activities with the proposed sources of funding from grants received from the State Government, capital injection from DBOS holding company, Government deposits, future deposits from government linked companies, or even from fund raising exercise by way of bank borrowings/capital market instruments.
“The government will not interfere with the bank. The bank will be run professionally. Just like any other business, and there is no politician in the board, it has to be professional,” he said.
At present DBOS has recruited 16 pioneer staffs with Sim Kheng Boon as the Chief Executive Officer and it is governed by a five-member board comprising Tan Sri Datuk Amar Haji Mohamad Morshidi bin Abdul Ghani as the Chairman of the Board, Datu Laura Lee Ngien Hion, Dato Sharkawi bin Alis, Christopher anak Adrian and Ho Swee Huat as the directors.
DBOS paid up capital is RM500 million. With the commencement of business operations, DBOS will be able to start taking deposits from the Sarawak State Government and in the future from other government- linked companies. On the loans front, DBOS is already looking at a few projects in the pipeline.
DBOS will focus on development projects which Sarawak State is or will be involved in, amongst others are the following sectors: Digital Economy; Urban Public Transport ; Renewable Energy (Power generation), Oil & Gas Industry, Healthcare, Modern Agriculture and Infrastructure.
DBOS was set up to promote strategic economic development in the State and its vision is to make a difference to Sarawak by collaborating with the State Government by focusing on strategic developments.
