Dato Sri Wong Soon Koh
KUCHING (Aug 14): The Sarawak Sovereign Wealth Future Fund must be managed with the highest degree of transparency and accountability, asserted Parti Sarawak Bersatu (PSB) president Dato Sri Wong Soon Koh.
The former state second finance minister said Sarawak should never allow the Fund to be politically manipulated.
“Like Temasek Holdings and GIC of Singapore, even though their funds are generally well managed, they are still subjected to market risks resulting sometimes in the loss of some of the wealth funds.
“We should never allow the Fund to be politically manipulated. The Fund must be managed with the highest degree of transparency and accountability,” he said in a statement today.
The statement was issued after Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg announced that the Fund will start its operation on Jan 1 next year with an initial appropriation of RM8 billion from the state.
The Premier also pledged that the establishment of the Fund will subscribe to the international best practices which include Generally Accepted Principles and Practices (GAPP) for Sovereign Wealth Funds, better known as the ‘Santiago Principles’, which have also been adopted by most of the sovereign wealth funds in the world.
Wong was pleased that the Fund is to be managed based on the ‘Santiago Principles’ which set out a common global set of international standards regarding transparency and accountability in the way the Sovereign Wealth Fund should be managed.
“I must applaud the Premier for taking careful strenuous learning steps such as visiting UK, Norway and Singapore to learn about the different models used to manage and operate Sovereign Wealth Fund.
“All these preparatory works were meticulously carried out leading to the announcement of the Board of Guardians,” he noted.
He said PSB welcomes the Premier’s announcement on the composition of the Board of Guardians for the Fund.
“Those appointed are all well qualified, comprising as the Premier pointed out ‘experts and professionals in fields of finance, investment, legal and governance’.
“As we all know, a Sovereign Wealth Fund is a state-owned investment fund operated and managed on behalf of the people of Sarawak. The fund is to be invested globally in real and financial assets, such as stocks, bonds, real estates, precious metals or in alternative investments such as private equity fund or hedge funds,” he said.
Wong also applauded the Premier for appointing a good spectrum of leaders from different professional backgrounds to the Board of Guardians.
He believed that things will not go wrong if the Board of Guardians could strictly adhere to the constitution of the bill passed by the Sarawak State Legislative Assembly (DUN) on Nov 22 last year, namely the Sarawak Sovereign Wealth Future Fund Board Ordinance, 2022.
“It is a highly comprehensive, all encompassing bill covering 66 pages. It has covered all aspects of management principles; there are built-in check and balance at all levels,” he added.
During the announcement, the Premier said the Fund’s Board of Guardians will be led by Tan Sri Datuk Seri Panglima Sulong Matjeraie.
Abang Johari also announced eight other distinguished professionals as members of the Board of Guardians for the Fund.
They are Tan Sri Datuk Amar Leonard Linggi Jugah, Tan Sri Ahmad Nizam Salleh, Datuk Iain John Lo, Grainne Dooley, Mohsen Fahmi, Datu Soedirman Aini, Dato Sri Talat Mahmood Abd Rashid, and Dato Sri Dr Wan Lizozman Wan Omar.