The Development Bank of Sarawak Bhd (DBOS), which is now into its third year of commercial operation, is an alternative financing model created by the Sarawak government.
The state-owned bank’s mission is to play a pivotal role in providing financing of public infrastructure and strategic projects to accelerate Sarawak’s economic growth.
DBOS aims to transform Sarawak’s non-renewable resource-based economy into a more broad-based sustainable economy in order to create higher skills and better paying job opportunities, generate higher income and improve the livelihood of Sarawakians.
With a paid-up capital of RM1 billion, DBOS takes deposits from the state government-controlled entities, government-linked companies (GLCs) and state statutory bodies and place the funds with financial institutions.
The bank’s total deposits amounted to nearly RM3.45 billion as at October 2018.
Enlightening the public on why the state government took the bold step of setting up DBOS, Chief Minister Datuk Patinggi Abang Johari Tun Openg said conventional financing model was no longer a viable option due to the many competing demands for the country’s financial resources.
With DBOS as an alternative financing model, he said the state authorities could tap into funding it provided to finance major infrastructure, public utility and strategic projects, such as digital-related, to meet any shortfall in the state budget, without having to dig into the state reserves.