KUCHING: The Sarawak Government is committed not to access the Sarawak Sovereign Wealth Future Fund for the next 20 years, except in crisis situations, says Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
He assured the state government will only utilise the fund in cases of crises, such as war or critical events that require additional financial resources.
“The Sarawak government has now injected a capital seed of RM8 billion with a commitment not to touch the funds for 20 years.
“In fact, the Sarawak Sovereign Wealth Future Fund’s Board of Guardians will also have several important committees, including the Risk Committee which is responsible for assessing risks before making investment decisions,” he said.
He further elaborated that the Risk Committee evaluates risks before seeking suitable investments.
“And of course they will also observe the world capital market and look into investment procedures,” he said.
He said this to reporters after receiving a courtesy call from the Sarawak Sovereign Wealth Future Fund’s Board of Guardians at Borneo Kuching Convention Center (BCCK) here today (Oct 29).
Regarding the fund’s long-term goal, he said it aims to develop a sovereign wealth fund that will benefit the people of Sarawak in the future, similar to the successful Norwegian Fund model.
“The management of this committee will also prepare an annual report that will be submitted to the Sarawak State Assembly (DUN) and that’s mean we are responsible to inform on the report to the State Assembly.
“However, in that process, the Sarawak government did not intervene except that the Guardian Board would give us a report,” he said.
Commenting on the visit, Abang Johari noted that the Board was given the responsibility to vigilantly and effectively manage the state’s Sovereign Wealth Future Fund following the world’s leading governance principles, notably the Santiago Principles.
“In an effort to ensure the management of this fund, it will be managed by Board members from international circles who have proven their success in fund management.
“We have international members who have successfully managed their own funds. One is from Europe and the other is from America who used to manage a fund bigger than ours which has also been successful,” he said.
He also mentioned Sarawak’s membership in the London Sovereign Wealth Fund forum, an international institution that monitors the performance of sovereign wealth funds.
“Sarawak together with countries like Singapore have become members of this forum, which means that the efforts being made by the Sarawak government in managing this fund will bring more robust economic returns and potentially provide excessive income to the state,” Abang Johari said.
