KUCHING: Sarawak will engage with Norway in an earnest effort towards the successful formation and management of its own sovereign wealth fund.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said Norway’s Government Pension Fund Global was formed to ensure responsible and long-term management of revenue from Norway’s oil and gas resources. It was managed by the Norges Bank Investment Management.
He said the fund received its first injection of the oil money for 2 billion Kroner from Norway’s government in 1996 and it reported a total value worth USD1.34 trillion in 2021, with all investment in equities and real estate outside the country.
“Given the widely acclaimed success of Norway’s sovereign wealth fund that had been managed with the highest standard of governance since its inception in 1996, it was a standard Sarawak needed to benchmark on,” he said.
Abang Johari said this in his return address when meeting with the Norway’s ministry and Norges Bank Investment Management officials at the bank’s headquarters in Oslo, Norway on Thursday.
The Premier’s two-day visit to Norway was part of his weeklong itinerary to Europe that saw him being given the honour to deliver a Keynote address at the World Hydrogen 2022 Summit and Exhibition in Rotterdam in the Netherlands earlier in the week.
Given the many parallels between Sarawak and Norway, Abang Johari said, Sarawak was particularly interested to learn from Norway despite many other similar funds around the world.
Furthermore, Norway has the largest global sovereign fund, renowned for good governance practices with clear policies in fund management.
“Norway and Sarawak are both large and sparsely populated and blessed with considerable natural resources, particularly oil and gas and hydropower as well as sharing many common attributes.
“We also share a common desire to move towards sustainable development, preserving the world for future generations,” he said.
Sarawak, he said, has been a significant producer of oil and gas since 1910, however, had only recently experienced a significant increase in its revenue from the source.
But, it is also expected this will be a temporary increase that will last for around 25 years as Sarawak is moving away from dependency on fossil fuels.
“Sarawak aimed to be the leading territory in Malaysia as far as the energy transition is concerned, away from dependency on fossil fuels,” he said.
“As such, I believe that, aligned to our desire to develop a multi-generational sustainability strategy for Sarawak, we should not consume all the increased revenues now, but rather put some aside for the benefit of future generations in the form of a sovereign fund,” he added.
In addition, he said, the move to set up a sovereign wealth fund for the benefit of Sarawak’s future generations was also part of his party – the state ruling coalition’s manifesto in the 12th Sarawak election last year.
“I was happy to see that the people of Sarawak are keen to see this happen – my government was returned with a far higher majority on the basis of our sustainable development plans,” he said.
Abang Johari said Sarawak wants to learn from Norway, due to its experience and demonstrated willingness to make the world a better place.
“We want to understand the ways in which Norway has structured and governed the fund as well as seeking recommendations for Sarawak to start on this journey,” he said.
“We would also like to hear from Norway on what are their parameters for investing in places like Sarawak, to ensure that we are high up in their list of attractive and ethically sound places to invest part of their fund,” he said.
Among those who present included Deputy Premier, Datuk Amar Douglas Uggah Embas, Deputy Minister of Energy and Environmental Sustainability, Dr Hazland Abang Hipni, State Attorney General, Datuk Seri Talat Mahmood Abdul Rashid and State Financial Secretary, Datuk Seri Dr. Wan Lizozman Wan Omar.
