KUCHING: Seventy-five percent of the state’s oil and gas revenue obtained from onshore oil and gas exploration through Petroleum Sarawak Berhad (Petros) should be kept in a sovereign fund, opined political pundit Datuk Peter Minos.
He said the remaining 25 percent should be put into current spendings for development in addition to the interests and dividends from the sovereign fund for the coming years.
“The basic idea and logic behind a sovereign fund is this; oil and gas wealth do not last forever. The resources are finite and it will be exhausted.
“Scientists predicted that all the world’s oil and gas reserves will last, at the most, until the year 2200, given the current and future massive use of oil and gas by the world.
“That is why the current robust talks of water energy and other forms of energies are now going on,” he said in a statement on Tuesday (Nov 17).
Minos was referring to Chief Minister Datuk Patinggi Abang Johari Tun Openg who revealed that the Sarawak Government will undertake a thorough feasibility study before establishing a sovereign wealth fund, which has been suggested to act as a buffer during a financial crisis.
He added that Sarawak should emulate the Norwegian Sovereign Wealth Fund which resulted in an improved standard of living for present and future Norwegians.
“The Norwegians are very wise as well as forward and futuristic thinking. Rather than splurging and spending like the Arabs, Norwegians kept and invest its oil and gas wealth in good and safe investments all over the world … in stocks, properties, companies, fixed deposits, bonds and anything lucrative while bearing good interests and dividends.
“The Singaporeans emulated this through non-oil and gas wealths which is also lucrative,” he added.
Thus, Minos hopes that Petros will strike big in its onshore oil and gas exploration to contribute to the sovereign fund for future Sarawakians.
