By Lian Cheng
KUCHING, Nov 21: The Sarawak government is introducing a new policy which makes it mandatory for State government-linked companies (GLCs) to declare an annual dividend of at least 10 per cent of its profit after tax.
This was announced by Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg while tabling Sarawak Budget 2023 at the Sarawak Legislative Assembly (DUN) sitting here today.
“My administration will continue to undertake revenue reengineering to increase our coffer (sic) to meet ever-increasing development needs. One of the latest initiatives is the introduction of a standard dividend policy which requires State GLCs to declare an annual dividend of at least ten (10) percent of its Profit After Tax (PAT).
“The implementation of this dividend policy would also inculcate financial discipline, promote a performance-driven culture, and create a greater sense of accountability among all GLCs,” said Abang Johari.
At the same time, Abang Johari also announced that he will table a bill to establish a Sarawak Sovereign Wealth Future Fund in the ongoing DUN sitting which is in session from today until Nov 30.
He said in Sarawak’s effort to continuously manage and deal with the current development issues, the Sarawak government is also thinking about the future, the State’s long-term interests and welfare of all Sarawakians.
“We must ensure that we have a steady stream of income from our reserves so that our future generations will not lose out; instead they will also prosper like their forefathers.
“This is in fact a prerequisite for improving the inter-generational wellbeing of our people. That is the basis for the establishment of Sarawak Sovereign Wealth Future Fund,” he explained.
He said this fund will not only enable the State govt to maximize Sarawak’s capital but also prepare the State in mitigating the impact of its depletable natural resources, especially oil and gas.
Meanwhile, on carbon trading, he said the role of forests in climate change mitigation and carbon sequestration has provided opportunities for Sarawak to explore the potential of new sources of income through carbon trading and Payment for Ecosystem Services (PES).
“Through forest carbon activities, the State is expected to tap into a new source of revenue. Presently, the State government is in the process of preparing mechanisms and regulations related to carbon trading in Sarawak,” said Abang Johari. — DayakDaily
