KUCHING: Setting up a Sovereign Wealth Fund right now is both a clever and important move by the Gabungan Parti Sarawak (GPS) government.
But in pointing this out, Wilson Nyabong Ijang (GPS-Pelagus) said several factors need to be taken into consideration in the setting up of the Fund.
He suggested that it must identify the exact source of income for the fund – oil and gas surpluses, surplus from power generation, surplus from other minerals sales or even from a portion of State Sales Tax.
“It must be managed by a team that is purely made up of financial and investment professionals, identified from the world over and whose single main objective is to make the Fund grow.
“There should be no political interference and they should work without fear or favour of political masters,” he said, adding its management team should only report to the State Legislative Assembly on a regular basis.
He said this when debating in support of the Sovereign Wealth Future Fund Board Bill 2022 during the State Legislative Assembly (DUN) sitting on Tuesday (Nov 22).
On another note, Wilson also hoped the fund management team would divest some of its funds for the purpose of research, development and implementation of some future, emerging areas.
“We are in the cusp of technology and the world is now racing forward in this area at a dizzying speed and Sarawak should tap into this area and position herself to be a serious player in the near future.
“I wish to suggest that whilst the team looks at traditional investment portfolios like bonds, real estate, stocks and foreign exchange, we should also consider investing in other areas.
Aside from making the Fund grow, he said some portion, however small, should go towards venturing into these emerging areas to bolster the returns and also to position Sarawak as a ready contender in the next decade of technological advances.
“I hope the members of this august House understand the gravity of this Bill and I hope that the fabulous beginning that we have started today will grow, flourish and bear fruits beyond our imagination, for all Sarawakians in the future.
“I hope that this Fund will not only insulate our state from financial crisis, like the Covid-19 pandemic but also bolster our coffers so that we too can stand tall and proud in the eyes of the world,” he said.
