KUCHING: The Sarawak government is considering setting up a consolidated entity as its asset management and investment arm, said Premier Tan Sri Abang Johari Openg.
He said that he has instructed a study to be carried out by experts to determine its feasibility, aimed at increasing government revenue in the long term.
"Currently Sarawak's investment branch is under the Sarawak Incorporated while the Sarawak Sovereign Wealth and Future Fund (SSWFF) had been operating with an initial capital injection of RM8 billion by the state government," he said.
He was speaking at the closing of a three-day State Civil Service's One Team Retreat (OTR) held in Bandar Seri Begawan, Brunei, in conjunction with the launch of the Sarawak Trade and Tourism Office Brunei (STATOB) today.
The premier explained that the proposed entity would work like similar entities in other developed countries such as Singapore's Temasek Holdings and the Government Of Singapore Investment Corporation (GIC), Mubadala Investment Company of UAE, China Investment Corporation and Japan Investment Corporation.
He said all state government assets held by various statutory bodies and government-linked companies like Sarawak Economic Development Corporation (SEDC), Sarawak Energy Bhd (SEB) and Petroleum Sarawak Berhad (Petros) would be consolidated under one entity and run like any other business body.
He envisaged that this model of assets and investments management with the member bodies as shareholders would provide an atmosphere conducive to the "mobility" of professionals among the member bodies along the principle of "hire and fire" to ensure that the bodies were 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.
On the acquisition of majority shares in Affin Bank, the premier said the bank as a retail bank would be a platform to spur development in small and medium businesses as well as facilitate the current robust overall development of Sarawak.
Abang Johari also said that the Development Bank of Sarawak (DBoS) set up in 2017 had been a financial platform mandated with the development of strategic projects such as infrastructure to boost Sarawak's economy.
Earlier, Sarawak Secretary Datuk Amar Mohamad Abu Bakar Marzuki spoke on, among others, the solutions to ensure speedy and interrupted implementation of government projects and the management of assets in the Sarawak Civil Service.
Among those present were Deputy Premier Datuk Amar Dr Sim Kui Hian and Datuk Amar Awang Tengah Ali Hassan, state ministers and deputy ministers.
Abang Johari later launched the operation of STATOB, aimed at enhancing trade and tourism relations between Brunei and Sarawak.
STATOB is the second to be established by the Sarawak government after one in Singapore, which was opened in 2019 as part of ongoing efforts to explore the global market, boost trade and attract more tourists to the state.
The third one is being proposed for Pontianak, West Kalimantan, Indonesia.