By Karen Bong
KUCHING, May 21: The Sarawak Legislative Assembly today passed the Infrastructure Development Trust Fund (Dissolution) Bill, 2025, effectively repealing the fund established in 1985, with the remaining balance of over RM52 million currently placed in the Development Bank of Sarawak (DBOS) to be transferred into the State Consolidated Fund.
Tabling the Bill, Deputy Premier and Second Minister for Finance and New Economy Datuk Amar Douglas Uggah Embas assured members of the House that the dissolution of the fund would not hinder Sarawak’s infrastructure development plans.
“I can assure the members that the development of infrastructure in Sarawak will not be affected by this dissolution. The fund had served its purpose, but it is no longer relevant to our current or future infrastructure development strategies,” he said during his winding-up speech, which came after eight members of the House debated the Bill.
He emphasised that Sarawak’s massive infrastructure rollout—including the Second Trunk Road, the Coastal Road, people-centric projects, and over RM30 billion worth of projects under the Public Works Department (JKR)—will proceed as planned.
“With a visionary and capable leader in Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, Sarawak has the means and strategies to raise development funds or secure alternative financing to continue implementing key projects,” he added.
Uggah disclosed that the remaining fund balance, amounting to over RM52 million and earning over RM1 million in interest last year, will be fully credited to the State Consolidated Fund once the Bill is enforced.
The Infrastructure Development Trust Fund Ordinance was passed on May 14, 1985, and came into effect on June 1, 1987. Its original aim was to assist developers by funding critical infrastructure, including access roads, water, and electricity, for new housing, commercial, and industrial projects, alleviating high capital outlays that often delayed development in the 1980s.
However, Uggah said the economic landscape has since evolved, with developers now financially equipped to secure financing independently.
Coupled with Sarawak’s enhanced fiscal capacity and structured budget governance, he explained that the the fund’s purpose has been overtaken by current capabilities and mechanisms.
“Thus, retaining this trust fund is no longer relevant, as it has outlived its original purpose,” he said, noting that the State Cabinet had already agreed to dissolve the fund.
The Infrastructure Development Trust Fund (Dissolution) Bill, 2025, contains seven clauses. These include provisions for dissolving the trust fund, transferring the remaining funds to the Consolidated Fund, and repealing the original 1985 Ordinance. It also addresses any remaining administrative expenses and allows for adjustments during the implementation process should anomalies arise.
Uggah concluded that the dissolution is both timely and justified, marking a step toward greater efficiency in Sarawak’s financial management and infrastructure development framework. — DayakDaily
