Historic financial move for wealth fund

The motion to withdraw funds from the State Consolidated Fund (SSF) for allocation to the Sarawak Sovereign Wealth Future Fund (SSWFF) received approval in the august House today (Nov 21).

Deputy Premier Datuk Amar Douglas Uggah Embas moved the motion, which was seconded by the Deputy Minister in the Sarawak Premier Department (Law, MA63, and State-Federal Relations). Subsequently, the Sarawak Legislative Assembly (DUN) passed the motion.

“I have duly given notice under the Dewan Standing Orders to move the following motion that this House resolves, pursuant to Article 33(1)(c) of the Constitution of the State of Sarawak and Section 6 of the Sarawak Sovereign Wealth Future Fund Board Ordinance, 2022, to authorise the withdrawal of funds from the State Consolidated Fund for the purpose of appropriation to the Sarawak Sovereign Wealth Future Fund,” Uggah said.

He continued, “Article 33(1)(c) of the Constitution of the State of Sarawak provides that no money shall be withdrawn from the Consolidated Fund unless authorised by a resolution passed by the Dewan Undangan Negeri for the purpose of investment.”

Uggah emphasised that, according to Section 6 of the Sarawak Sovereign Wealth Future Fund Board Ordinance, 2022, the Dewan Undangan Negeri may authorise the withdrawal of an amount deemed appropriate from the State Consolidated Fund through a single resolution. This authorisation is valid for each year within a fixed period not exceeding thirty years from the date the Ordinance comes into force. Any resolution for the Initial Appropriation or any Annual Appropriation must stipulate the manner, amount, and timing for the transfer of the funds authorised to be appropriated to the Fund.

He said that considering the initiation of the Sarawak Sovereign Wealth Future Fund Board on January 1, 2024, it is suitable to grant the authority for withdrawing funds from the State Consolidated Fund and allocating them to the Sarawak Sovereign Wealth Future Fund for duration of twenty years. The allocations are as follows:

i. Up to RM8.0 billion for the year 2024,

ii. Up to RM300.0 million annually from 2025 to 2028,

iii. Up to RM550.0 million annually from 2029 to 2033, and

iv. Up to RM650.0 million annually from 2034 to 2043.