By Dayangku Hidayatul
KUCHING, Oct 2: Sarawak has signed a three-year Reimbursable Advisory Services (RAS) Agreement with the World Bank and the federal government to help the State strengthen the governance of State-Owned Enterprises (SOEs).
Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said Sarawak has engaged with the World Bank in order to reshape its public financial management because resources should be managed with prudence and discipline.
“Public financial management may sound like a technical subject, but in reality, it is one of the most powerful levers for public sector transformation.
“The way we raise, allocate and account for our resources will largely determine whether Sarawak achieves its 2030 vision,” he said during the RAS Exchange Ceremony at the Riverside Majestic Hotel here today.
Abang Johari further said the Sarawak Public Financial Management Transformation Programme has two key components, which are the management of fiscal risks and Results-Based Budgeting (RBB)–shifting focus from what we are spending on to what we are achieving.
“These two components together will ensure that Sarawak not only spends wisely but also safeguards its future against any uncertainties,” he added.
Under this initiative, Sarawak will also introduce a new State Ownership Policy, establish high standards of corporate governance across all SOEs, and develop a centrally-managed and digitally-enabled performance measurement framework to assess the performance of SOEs.
Speaking to reporters after the ceremony, Abang Johari clarified that the state ownership policy aims to consolidate State assets and ensure that they are properly governed through prudent management.
He further said some State assets are under government-linked companies (GLCs) while others are under statutory bodies.
“They (GLCs) are also performing the functions of the private sector, so strong governance and accountability are important.
“That’s why when there are certain weaknesses found by our Auditor-General, they must rectify them immediately and also find solutions. That is what we call good governance,” he stressed.
He also explained that the implementation of RBB has begun, citing several government departments.
“Take the Kuching Urban Transportation System (KUTS) for example—we allocate funds to it with Sarawak Metro as its implementing agency, and we want to see it delivered according to schedule.
“For certain Public Works Department (JKR) bridge projects, some are sick, some completed earlier and some delayed. In other words, we monitor the results.
“This is what we call RBB because we have already allocated the budget and we want to see it delivered. If it is not completed or there is no result, this means it’s a failure,” he stated.
Abang Johari said he will elaborate further on the policy in his State Budget speech during the next Sarawak Legislative Assembly (DUN) sitting next month. — DayakDaily
