By Ashley Sim
KUCHING, May 21: The dissolution of the Infrastructure Development Trust Fund (IDTF) is an administrative decision that does not result in any financial loss to the Sarawak government, nor does it require new funds to be injected to close the trust, said Meluan assemblyman Rolland Duat Jubin (GPS-PDP).
“Upon dissolution, all remaining money within the IDTF are returned to the State’s Consolidated Fund, ensuring no loss or additional outlay is required from the government,” he said during the debate on the Infrastructure Development Trust Fund (Dissolution) Bill, 2025 at the first meeting of the fourth session of the 19th Sarawak Legislative Assembly (DUS) at the DUS Complex here today.
He added that the government does not need to inject new funds to close the trust and that the dissolution process does not necessitate further financing.
“Any outstanding commitments or liabilities of the fund are covered using the existing resources within the trust, not by new government spending,” he explained.
Rolland said the IDTF Sarawak was established by the Sarawak government to facilitate the financing of infrastructure projects in the State, noting that it aimed to provide a sustainable source of funding for the development of key infrastructure such as roads, bridges, utilities, and public buildings.
“The IDTF allows the government to pool resources and funds from various sources, including government grants, private sector investments, and public-private partnerships.
“This enables the State to undertake large-scale infrastructure projects that may otherwise be financially challenging to implement.”
He also highlighted that by setting up the IDTF, the Sarawak government can ensure the timely and efficient delivery of infrastructure projects, which are essential for driving economic growth, improving quality of life, and fostering regional development.
He added that the fund also helps promote transparency and accountability in the management of public funds earmarked for infrastructure development.
“All this while, the IDTF Sarawak has played a crucial role in supporting the State government’s efforts to build a modern and sustainable infrastructure network that meets the needs of its people and contributes to the overall socio-economic development of the region,” he said.
The Meluan assemblyman pointed out that while the IDTF provided long-term funding predictability and shielded infrastructure projects from political or economic volatility, Sarawak is now in a better fiscal position to fund infrastructure directly through its state budget.
“With greater control over natural resources and rising state income, Sarawak might now be in a better fiscal position to fund infrastructure directly without needing a dedicated trust fund,” he said.
Rolland further stated that repealing the IDTF could even benefit the State, provided Sarawak continues to strengthen its fiscal management, maintain robust capital investment strategies, and prioritise infrastructure in its budget.
“I hereby strongly support this Bill,” he said.
Meanwhile, tabling the Bill earlier, Minister for Infrastructure and Port Development Datuk Amar Douglas Uggah Embas explained that the IDTF was introduced during a time when private developers lacked the financial capability to shoulder infrastructure costs for new development areas.
The fund alleviated the burden by financing roads, water, and electricity supply needed to support housing, commercial, or industrial developments.
“In today’s economic landscape, private developers are financially resilient and capable of undertaking development projects and stand a high chance of securing project financing from the bank,” Uggah said.
Uggah, who is also Bukit Saban assemblyman (GPS-PBB), added that the trust fund has outlived its original purpose, and the Majlis Mesyuarat Kerajaan Negeri had decided earlier to close it.
The Bill, which comprises seven clauses, provides for the transfer of all funds to the State’s Consolidated Fund, covers administrative expenses before dissolution, and formally repeals the Infrastructure Development Trust Fund Ordinance 1985.
“The trust fund has served its intended purpose and is no longer relevant. As such, dissolution of this trust fund and repealing the Infrastructure Development Trust Fund Ordinance, 1985 is both timely and justified,” the minister said. — DayakDaily
