Professionals and experts to helm DBoS to develop state – CM
KUCHING: The proposed Development Bank of Sarawak ( DBoS) could be properly established within the next 12 months, said Chief Minister Datuk Amar Abang Johari Tun Openg.
He assured the august House yesterday that the people running the DBoS “are professionals and banking experts” given that DBoS will play a leading role in the development of Sarawak.
“I shall solicit the assistance of the Central Bank to help us to ascertain that the proposed candidates are also people with credibility and integrity.
“The proposed DBoS shall be wholly- owned by the Sarawak government. It will be structured in such a way as to limit the liability of the Sarawak government from risks in the operations,” he said when delivering his winding-up speech.
Abang Johari said the bank is to finance strategic projects for the state government and should be funded principally through deposits of the state government and its agencies, as well as through the deposits of big companies through the money market.
“In doing so, DBoS shall also be in a position to lead in the development of the financial market in Sarawak by encouraging more lending and borrowing in Sarawak in order to stimulate economic activities among the private sector in Sarawak.
“In this connection, DBoS shall also encourage the funding of strategic projects in Sarawak by financial institutions with regional offices in Sarawak,” he pointed out.
He asserted that DBoS should complement the local bank branches so that its resources could be used to leverage more strategic projects as well as to spread the risks of its lending activities.
At the same time, the proposed DBoS should lead the local banking industry in the provision of seed capital to start-ups and new ventures particularly in the area of the digital economy.
“DBoS shall play an instrumental role in spearheading the development of digital finance or fintech (financial technology) in Sarawak. The establishment of DBoS shall provide good jobs within the bank as well as in the economy.”
He added that DBoS could also encourage the investment and ownership by Sarawakians of strategic assets in Sarawak by development investment funds, which could be subscribed by Sarawakians in the form of bonds and investment funds.
“In the longer term, when DBoS has helped to bring about the development of Sarawak and therefore having the necessary banking expertise, it may fund strategic projects outside Sarawak, if need be, and which may be owned by Sarawakians in order to increase the return on capital.
“I believe that once the proposed DBoS is properly established, the development of Sarawak shall take on a much more directed and determined course with prudence always by its side,” said Abang Johari.
I shall solicit the assistance of the Central Bank to help us to ascertain that the proposed candidates are also people with credibility and integrity. Datuk Amar Abang Johari Tun Openg, Chief Minister