Malaysia’s resource-rich Sarawak state’s newly minted sovereign wealth fund money won’t be touched for 20 years under “normal circumstances” and the government won’t interfere with its management, Chief Minister Johari Openg pledged.
He said the Sovereign Wealth Future Fund is meant for Sarawak’s long-term growth. The state has provided it with 8 billion ringgit (US$1.68 billion) of seed funding.
“The sovereign wealth fund is intended for long-term growth, with the intention of not touching it for 20 years under normal circumstances. This is unless Sarawak is faced with crises such as a war or situations requiring immediate financial resources,” Johari told reporters after a courtesy visit by the fund’s board of guardians on October 29.
“Our goal is to let the fund grow steadily over the next two decades,” he added.
Johari said the fund’s investment decisions and risk assessments will be carried out by special committees within the board of guardians, who will evaluate potential risks before making investments.
“The government will not interfere in the fund’s management,” he said.
According to Johari, the fund is set to become a member of the London-based International Forum of Sovereign Wealth Funds, joining the federal government’s Khazanah Nasional, Singapore’s GIC Pte Ltd and the Indonesia Investment Authority.