KUCHING: The confidence level among investors will be boosted by the recently passed Sarawak Sovereign Wealth Future Fund at the 19th Sarawak Legislative Assembly (DUN) sitting.
University Malaysia Sarawak Faculty of Economics and Business senior lecturer Dr Jerome Kueh Swee Hui, when contacted by New Sarawak Tribune, said investor confidence would be boosted from a business point of view.
“They will feel confident with the sustainable fiscal position of the government and will make Sarawak become the choice of their investment destination.
“The idea of the establishment of the Sarawak Sovereign Wealth Future Fund is sensible considering the current dynamic and challenging global environment.
“In addition to the post Covid-19 pandemic, it is prominent to have sustainable funds to cushion any negative impacts due to the economics uncertainties.”
He stated that unsustainable fiscal position would put constraint on the government to implement immediate policies to reduce the burden of the people and businesses that are badly affected.
“Additionally, if the budgetary position is not sustainable, investors will reconsider their investment choice.
“This is due to their concern on the stability of the business environment.
“Therefore, the establishment of the fund is critical to ensure that the government will be able to execute policies promptly to safeguard the welfare of the people in the event of economic uncertainties in the future.”
In other words, Kueh pointed out that the government policies could be implemented swiftly to reduce the detrimental effects of global volatility, with the availability of the Sarawak Sovereign Wealth Future Fund.
“In a nutshell, the establishment of the fund is a commendable initiative by the Sarawak government, considering the sustainable financial position and intergenerational welfare of the people.”
He added that this fund would position Sarawak as a role model to other states in Malaysia.
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