BY SARAH HAFIZAH CHANDRA & JACINTHA JOLENE
KUCHING: The state government will channel an initial appropriation of RM8 billion for the Sarawak Sovereign Wealth Future Fund.
Finance and New Economy Minister Datuk Patinggi Tan Sri Abang Johari Tun Openg said the money for the fund will come from the State Consolidated Fund through appropriations approved via resolutions passed by the august House.
He said the fund will comprise an initial and subsequently annual appropriations from the State Consolidated Fund.
“In realising the setting up of the fund and to establish discipline, the state government will be required by law to make initial and annual appropriations of sums of money to the fund, the amount of which will depend on the state’s financial standing from time to time.
“The initial appropriation to the fund will be at RM8 billion with subsequent annual appropriation of RM300 million annually from year two to year five; RM550 million annually from year six to year 10 and RM650 million annually from year 11 to year 20,” he said.
He said this when tabling the Sarawak Sovereign Wealth Future Fund Board Bill 2022 on the second day of the 19th State Legislative Assembly (DUN) sitting today (Nov 22).
Elaborating further, Abang Johari said these appropriations to the fund will be disbursed into the fund’s Investment Fund Account and be managed strictly in accordance with the Investment Mandate stated in the Second Schedule of the Bill.
With this appropriation, he said the fund is expected to grow sustainably with no withdrawals except in the case of critical events which might arise within the 20 years period or when the fund performs better than targeted.
“This Bill institutionalised strict requirements for withdrawal of monies from the fund where specific provisions regulating withdrawals of monies are found in clause 8 of the Bill.
“There are also provisions for the reinvestment of income or monies from the investments,” he said.
In the case of the fund performing better than targeted such as there is excess income from the fund above the thresholds set out in the Bill, Abang Johari said the Board of Guardians may transfer such excess income to an Endowment Fund Account.
He said the monies in the Endowment Fund Account which will be transferred to the State Consolidated Fund and held under a trust fund can be utilised for purposes such as education of people of Sarawak in tertiary institutions or such other institutions as may be approved by the Majlis Mesyuarat Kerajaan Negeri; improvement of the standard of living of Sarawak based on socioeconomic needs; development of the talents, expertise and the entrepreneurial skills of the people of Sarawak and such other purposes as may be determined by Majlis Mesyuarat Kerajaan Negeri in a notification to be published in the Gazette and laid before the DUN.
“The accounts of the fund and the annual report of activities concerning the fund will be laid before the august House in accordance with the Bill. There are also provisions in the Bill to regulate the expenditure of the Board of Guardians whose annual budgeting expenses will have to be approved by the Majlis Mesyuarat Kerajaan Negeri,” he added.
END
