S’wak Legislative Assembly approves resolution authorising appropriation to sovereign wealth fund

KUCHING: The Sarawak Legislative Assembly has approved a resolution authorising the initial and annual appropriation of funds to the state’s sovereign wealth fund, which is set to commence operations next year.

Deputy Premier Datuk Amar Douglas Uggah tabled a motion on Tuesday (Nov 21) seeking the withdrawal of funds from the state consolidated fund to be appropriated to the Sarawak Sovereign Wealth Future Fund.

He said Article 33(1)(c) of the state constitution provided that no money can be withdrawn from the consolidated fund unless authorised by a resolution passed in the Sarawak Legislative Assembly for the purpose of investment.

Similarly, he said Section 6 of the Sarawak Sovereign Wealth Future Fund Board Ordinance provided that the state legislature could authorise the withdrawal of certain amounts to be appropriated to the fund annually for a period of up to 30 years in a single resolution.

“In view of the operationalisation of the Sarawak Sovereign Wealth Future Fund Board that shall commence on Jan 1 2024, it is appropriate that the authority be given for the withdrawal of funds from the state consolidated fund for appropriation to the Sarawak Sovereign Wealth Future Fund for a period of 20 years,” Uggah said.

He said the initial appropriation would be up to RM8bil for next year, followed by annual appropriations of up to RM300mil from 2025 to 2028, up to RM550mil from 2029 to 2033 and up to RM650mil from 2034 to 2043.

The state assembly had passed the Sarawak Sovereign Wealth Future Fund Board Ordinance last November to strengthen the state’s financial sustainability for future generations through setting up a sovereign wealth fund.

The fund’s board of guardians was appointed in August this year, with former Federal Court judge Tan Sri Sulong Matjeraie as its chairman.