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Sarawak to set up sovereign wealth fund to manage state revenue

KUCHING: Sarawak is looking at setting up a sovereign wealth fund to enable prudent and long-term management of the state's revenue.

Such a move would benefit the state's people and future generations, said Chief Minister Tan Sri Abang Johari Openg.

He said the state government has carried out a study on the fund formation with the experts on how it assures the future of each Sarawakian and their children.

"I don't have the details yet as the experts are still studying it but I can assure you that it can be done in the next five years. Once everything has been finalised, we will bring it to the state legislative assembly for approval," he said.

Abang Johari said the state would look at a sovereign fund similar to that has been established and managed in Norway, whereby revenue from oil and gas is used prudently to avoid imbalances in the state economy.

"Besides, we have our Sarawak Post Covid-19 Strategy, which focuses on green economy and renewable energy, coupled with oil and gas resources. I am confident Sarawak will have a bright and prosperous future."

"I am not doing this for myself, but for the future generations of the people in Sarawak," he said at the launch of the Julau alignment of the Sarawak Pan Borneo Highway at Julau today.

Abang Johari said the highway project was delayed slightly because of the change of the federal government two years ago. He hopes everyone has learnt from the lesson on the need for political stability in a state or a country.

"Whenever there's a change of government, everything would be affected, including infrastructure projects, which are supposed to benefit the people and the state."

"Thus, I hope our people remain united so that various initiatives, projects and programmes can be continued and implemented smoothly," he said.

Abang Johari assured that Sarawak roads would remain toll-free to ensure the people can enjoy a safe and comfortable drive without having to pay for anything. Otherwise, it would burden the people and increase the transportation cost.

Senior Works Minister Datuk Seri Fadillah Yusof, who was present, said phase one of the Pan Borneo Highway has a total length of 786km which is divided into 11 work packages. The work package from Telok Melano to Sematan was completed in January 2019.

He said Julau alignment, costing RM537 million, was one of the three alignments under Work Contract Package 7 which encompassed the route construction from the Bintangor Junction to the Julau Junction.

Abang Johari said construction of the 28.5km Julau section involves upgrading the existing single carriageway (2 lanes) into a dual carriageway (four lanes), from Bintangor junction to Julau junction.

"The completion of this section provides a more comfortable journey for people travelling from Sibu to Pantu and heading to Miri," he said.

Fadillah said the Sarawak Pan Borneo Highway Project resulted from thorough and holistic planning between the federal government and state Government under the Highway Network Development Plan (HNDP).

"Road access and connectivity are important and capable of boosting economic growth and transforming the rural areas in Sarawak," he added.

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