Kota Kinabalu: Gabungan Rakyat Sabah (GRS) plans to establish a Sabah Sovereign Wealth Fund next year if it secures victory in the Nov 19 state election, said GRS Manifesto Committee Chairman Datuk Armizan Mohd Ali.
He said a special enactment would be tabled to create the fund, called the “Future Investment Fund for Sabah’s Children”, which aims to ensure long-term financial sustainability for the State.
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“The fund is designed for strategic investments, with profits to be withdrawn only after a set period, allowing future generations to benefit from returns generated today.
“The fund’s initial capital will come from a portion of the State’s reserves, which have grown to RM8 billion, beginning next year.
“While additional annual contributions will be drawn from Sabah’s 40 per cent revenue entitlement, which the Federal Government has reaffirmed its commitment to honour,” he said.
Armizan said as the State’s revenue grows and we receive the 40 per cent entitlement, money in the fund will not be spent at random.
“Portion will be set aside and reinvested through the Sabah Sovereign Wealth Fund for the benefit future generations,” he said.
The GRS Deputy Secretary said the initiative would help secure long-term stability for the State’s finances and reduce future administrations’ dependence on the Federal Government for legacy and infrastructure issues.
“We want our children and grandchildren to manage a State that not only enjoys strong annual revenue, but also benefits from investments made today.
“The fund will be governed by both State representatives and experienced professionals in finance, investment and legal fields.
“They would determine investment policies and evaluate opportunities locally and abroad, similar to models adopted by sovereign wealth funds in Sarawak and other countries,” Armizan said.
He cited SMJ Energy as an example of how Sabah’s own professionals, once empowered, have strengthened the State’s economic position and contributed to revenue growth.
