DBOS to be regulated by Bank Negara — Masing
KUCHING: The state- owned Development Bank of Sarawak ( DBOS) will be regulated by Bank Negara.
Deputy Chief Minister Tan Sri Datuk Amar Dr James Masing said as such Sarawakians should not be worried about how the state’s money will be managed.
“DBOS is going to become a bank that makes profit as it will be regulated by Bank Negara. What it means is whoever borrows from it, including the government who owns it, will have to pay back with interest,” he told The Borneo Post yesterday.
“It also means that with the establishment of the bank, it will regulate our own reserves, which will be used as the seed capital. So even if the government borrows from its own bank, it will still have to pay back with interest except now we will manage our own money instead of allowing others to manage it for us.”
He said Chief Minister Datuk Amar Abang Johari Tun Openg is taking the right step as the bank will help transform Sarawak for the better.
“Without the setting up of the bank, it will be difficult for us to obtain the necessary loans to translate our policies into reality.
“But with the setting up of the bank, we can now focus on strategic projects such as key development sectors, namely ICT infrastructure ( for digital economy), energy sector including energy power generation as well as oil and gas, public transportation and services sector including healthcare and tourism,” said Masing, who is also Minister of Infrastructure Development and Transportation.
“There should be no worries on DBOS as it is basically a bank except that it belongs to the government.”
Minister of Local Government Datuk Dr Sim Kui Hian said DBOS would enable the state government to earn more money from its own reserves.
“Before this, other people make money from our money. Now we can decide how much we should charge the interest on ourselves if we borrow from it. Say, even 3 per cent is good enough. This way, we can both save as well as make money from our own money, instead of letting others dictate how we spend our own money,” he said.
Meanwhile, Kuching Chinese General Chamber of Commerce and Industry president Datuk Wee Kok Tiong commended Abang Johari for his farsightedness in boosting the state’s economic growth.
“We are delighted to see that the state government under Chief Minister Datuk Amar Abang Johari Tun Openg has embarked on this challenging and courageous mission to set up DBOS, which is aimed to fund high impact projects and to support both the state’s economic development and transformation agenda.
“Undoubtedly, it is also a move that shows great vision from the state government on building a competitive economy that has the best potential for growth in the long run,” he said.
Wee said DBOS, together with other banks and financial institutions, would help to further strengthen the fundamentals of the state’s economy by promoting sustainable, balanced, diversified, and inclusive development in all sectors as well as bring more direct benefits to all Sarawakians.
It is understood that the state has some RM29 billion in reserves.
On Tuesday, Abang Johari announced that the state government would immediately set up DBOS – an approved institution under the Development Financial Institution Act.
As provided for under Sections 137 and 138 of the Act, DBOS would not undertake or advertise for public deposits.