KUCHING: The state’s sovereign wealth fund will be professionally managed by a board of directors of international professions.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the wealth fund will adhere to the Santiago Principles after grasping the concept during his recent visit to Singapore and London.
“My team and I have gone to Norway to study the Norwegian fund as well as we have been given permission by the Singapore Government to learn the sovereign fund in Singapore particularly the Government of Singapore Investment Corporation (GIC) and Temasek Holdings (Private) Limited in Singapore this year.
“My team and I also went to London to get first-hand knowledge from the sovereign fund forum in London. And this is the model that we want to follow based on Santiago Principles and our sovereign fund will be completely professionally managed, even the board directors will be of all international professions.
“We hope that will give us a secure future for Sarawakian,” he said in his speech during the 5th Anniversary Dinner of the Development Bank of Sarawak Berhad (DBOS) at Borneo Convention Centre Kuching (BCCK) here last night.
He said that the establishment of a sovereign wealth fund, which will be tabled to the State Legislative Assembly (DUN) in November, is the next revenue generating initiative to benefit the future generation.
“We will ensure that the sovereign wealth fund be professionally managed and be able to generate excess funds for rainy days and allow us to provide free and quality education and send our young talent to renowned world universities to pursue knowledge and skills.
“These talents are important, and I expect them to be smart and agile and be able to tell us what to do and contribute to the state’s advancement and long-term sustainability,” he added.
Earlier, Abang Johari said that the idea of DBOS was mooted that was eventually incorporated in May, 2017, four months after he assumed office in January 2017.
“Sarawak has a huge land mass and to meet its development agenda would require huge capital investment.
“Sarawak needs to be in control of its development and not leave it to others to work it out for us. Sarawak used to depend heavily on the federal government to fund its infrastructure and utilities projects, particularly in the rural areas.
“This often left us in a difficult situation as funds from the federal government are not easy to come by, especially when we are not on the same political platform,” he pointed out.
He said many projects in Sarawak were cancelled during the 22-month reign of the Pakatan Harapan (PH) government. However, the state was able to regain its strength to deliver the projects for the benefit of the rakyat, particularly through alternative financing provided by DBOS.
“Sarawak is lucky as we have substantial reserves, part of which should be invested to give some kind of return to Sarawak. Keeping the money, as we used to say ‘di bawah bantal’ (under the pillow) will not help us,” he said.
