KUCHING: The Sarawak government is considering establishing a consolidated entity to serve as its asset management and investment arm, according to Tan Sri Abang Johari Openg.
The Premier has instructed experts to assess the feasibility of this entity, which aims to boost government revenue over the long term.
Currently, Sarawak's investments are managed under Sarawak Incorporated, while the Sarawak Sovereign Wealth and Future Fund (SSWFF) operates with an initial RM8bil capital injection by the state government.
Abang Johari stated that the consolidated entity would function similarly to other established organisations like Singapore’s Temasek Holdings and the Government Of Singapore Investment Corporation (GIC), the Mubadala Investment Company of the UAE, China Investment Corporation, and Japan Investment Corporation.
In his keynote address at the Sarawak civil service retreat in Bandar Seri Begawan, Brunei, on Thursday (Oct 3), he noted that all government assets held by various statutory bodies and government-linked companies, including the Sarawak Economic Development Corporation (SEDC), Sarawak Energy Bhd, and Petroleum Sarawak Bhd (Petros), would be consolidated under the proposed entity and run like a business enterprise.
This asset and investment management model, with member bodies as shareholders, aims to create a conducive atmosphere for the mobility of professionals among member bodies, following the principle of hire-and-fire to ensure efficient operations.
Such a model will also allow for remuneration at high levels, comparable to those in developed countries.
Regarding the acquisition of a significant stake in Affin Bank Bhd, Abang Johari mentioned that the bank would support the growth of small and medium businesses and facilitate Sarawak's current robust development.
Similarly, the Development Bank of Sarawak (DBOS), established in 2017, was designed as a financial platform for strategic projects like infrastructure to stimulate Sarawak’s economy.
Sarawak recently acquired a 31.25% stake in Affin Bank, becoming its largest shareholder after purchasing shares owned by the Armed Forces Fund Board (LTAT) and Boustead Holdings Bhd.
Abang Johari also launched the Sarawak Trade and Tourism Office Brunei (Statob) to enhance trade and tourism relations between Brunei and Sarawak.
