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By Ashley Sim and Shikin Louis
KUCHING, Aug 14: Sarawak will join as a member of the International Forum of Sovereign Wealth Funds (IFSWF), says Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
This came following the State setting up its sovereign wealth fund which is expected to commence operation on Jan 1 next year.
Abang Johari said the establishment of the Sarawak Sovereign Wealth Future Fund will subscribe to international best practices which include Generally Accepted Principles and Practices (GAPP) for Sovereign Wealth Funds, better known as the ‘Santiago Principles’ which have also been adopted by most of the world’s sovereign wealth funds.
GAPP advocates the principles of transparency, accountability, good governance structure, and sound investment. These principles are taken up and institutionalised in the establishment of the Fund.
“In our effort to apply the highest standard of governance and transparency in managing our sovereign wealth fund while also allowing us to network and share knowledge on best practices with other global sovereign wealth funds, we (Sarawak) will join as a member of the International Forum of Sovereign Wealth Funds (IFSWF).
“Most of the established global sovereign wealth funds are members of the IFSWF,” he said at a press conference held at Wisma Bapa Malaysia here today.
On Nov 22, 2022, the Sarawak Legislative Assembly (DUN) had passed the Sarawak Sovereign Wealth Future Fund Board Bill, 2022 (Ordinance) to establish a body corporate to be the custodian of the said Fund.
As previously reported, Abang Johari further said that the Fund will start with an initial appropriation from the Sarawak government of RM8 billion and subsequently will receive scheduled annual appropriation.
“The Fund is estimated to grow sustainably with no withdrawal except for any potential critical event occurring or when the fund performs better than targeted.
“The Fund will be managed strictly in accordance with investment policy and mandate of the Fund, that is to deliver long-term risk-balanced real growth in its invested assets.
“The account of the Fund and its annual report of activities will be laid before the Sarawak State Assembly and its annual budget will be approved by the State Cabinet,” Abang Johari added. — DayakDaily
