Premier: Sarawak may set up consolidated entity for asset, investment management like Singapore’s Temasek Holdings

KUCHING (Oct 3): The Sarawak government is contemplating setting up a consolidated entity as its asset management and investment arm, said Datuk Patinggi Tan Sri Abang Johari Tun Openg.

The Premier explained such an entity would function like those in developed countries such as Singapore’s Temasek Holdings and GIC, Mubadala Investment Company of the United Arab Emirates (UAE), China Investment Corporation, and Japan Investment Corporation.

“All government assets held by various statutory bodies and government-linked companies like Sarawak Economic Development Corporation (SEDC), Sarawak Energy Berhad, and Petroleum Sarawak Berhad (Petros) would be consolidated under this one entity and to be run like any other business body,” he said.

Abang Johari revealed this when closing the three-day Sarawak Civil Service One Team Retreat (OTR) in Brunei Darussalam in conjunction with the launch of the Sarawak Trade and Tourism Office Brunei (Statob) today.

He said Sarawak’s investment branch is presently under Sarawak Incorporated, while the Sarawak Sovereign Wealth and Future Fund (SSWFF) has been operating with an initial capital of RM8 billion from the Sarawak government.

He envisaged that the proposed entity with the member bodies as shareholders would provide an atmosphere conducive to the “mobility” of professionals along the principle of “hire and fire” to ensure that the bodies are well run.

“Such a model would also enable remuneration to be set at a high level and comparable to those in developed countries,” he added.

The Premier said he had instructed for a study to be carried out by experts to determine the feasibility of the proposed entity, aimed at increasing government revenue over the long term.

On the acquisition of majority shares in Affin Bank, Abang Johari said the retail bank would be a platform to spur development in small and medium businesses.

He added the bank would also serve as an avenue to facilitate the state’s current robust overall development.

“The Development Bank of Sarawak (DBoS), set up in 2017, has been a financial platform mandated with the development of strategic projects such as infrastructure to boost Sarawak’s economy,” he said.

Separately, State Secretary Datuk Amar Mohamad Abu Bakar Marzuki shared on solutions to ensure speedy and uninterrupted implementation of government projects and the management of assets in the Sarawak Civil Service.

Officially launched today, Statob aims to enhance trade and tourism relations between Brunei Darussalam and Sarawak.