Premier unveils plans for consolidated entity to manage Sarawak’s assets, investments to boost long-term revenue

Abu Bakar (third left) presenting a book as token of appreciation to Abang Johari during the closing of Sarawak Civil Service’s One Team Retreat on Oct 3, 2024.

By DayakDaily Team

BRUNEI, Oct 3: The Sarawak government is exploring the establishment of a consolidated entity that would serve as its asset management and investment arm, aimed at increasing long-term government revenue.

Announcing this today, Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg revealed that he has instructed experts to conduct a feasibility study with regards to this initiative.

“Currently, Sarawak’s investment activities fall under Sarawak Incorporated, while the Sarawak Sovereign Wealth and Future Fund (SSWFF) operates with an initial capital injection of RM8 billion from the Sarawak government,” he stated.

These remarks were made during his keynote address at the closing of the three-day Sarawak Civil Service’s One Team Retreat (OTR), held in conjunction with the launch of the Sarawak Trade and Tourism Office Brunei (STATOB).

Abang Johari explained that the proposed entity would function similarly to established investment bodies in developed countries, such as Singapore’s Temasek Holdings and Government of Singapore Investment Corporation (GIC), Mubadala Investment Company of the United Arab Emirates (UAE), China Investment Corporation, and Japan Investment Corporation.

“All government assets currently held by various statutory bodies and government-linked companies, including the Sarawak Economic Development Corporation (SEDC), Sarawak Energy, and Petroleum Sarawak Berhad (Petros), would be consolidated under this new entity, which would operate like a standard business,” he elaborated.

Abang Johari pointing at the book for civil servants to read during during the closing of Sarawak Civil Service’s One Team Retreat on Oct 3, 2024.

The Premier envisions that this model for managing assets and investments, with member bodies as shareholders, would foster a culture of professional mobility among them, adhering to a “hire and fire” principle to ensure effective management.

“This approach would also allow for competitive remuneration levels, comparable to those in developed nations,” he added.

Regarding the acquisition of a majority stake in Affin Bank, Abang Johari noted that the bank would serve as a platform to stimulate growth in small and medium enterprises, as well as support the robust development of Sarawak.

He also pointed out that the Development Bank of Sarawak (DBOS), established in 2017, serves as a financial platform tasked with developing strategic projects, including infrastructure, to bolster Sarawak’s economy.

Earlier, Sarawak Secretary Datuk Amar Mohamad Abu Bakar Marzuki addressed the need for effective solutions to ensure the timely and uninterrupted implementation of government projects and asset management within the Sarawak Civil Service.

Deputy Premiers Datuk Amar Dr Sim Kui Hian and Datuk Amar Awang Tengah Ali Hassan, along with other ministers and deputy ministers, were in attendance.

The event concluded with Abang Johari officially launching STATOB, which aims to enhance trade and tourism relations between Brunei and Sarawak. — DayakDaily