See wants details on proposed DOBS
Batu Lintang assemblyman See Chee How applauds Chief Minister Datuk Amar Abang Johari Tun Openg and his administration for the bold move in applying for and obtaining the approval by Bank Negara Malaysia ( BNM) to set up state- owned Development Bank of Sarawak ( DOBS) to operate on a financial model that will help fund the state’s strategic projects in line with its effort to promote its socio-economic transformation catch-up plan.
See, who is state PKR vice chairman, said he is looking forwardtothenextStateLegislative Assembly ( DUN) sitting this May as he is certain that the chief minister would enlighten the august House on the details of this ambitious establishment.
He believed that as DOBS does not solicit and undertake deposits from the public, all Sarawakians would want to know how the development bank would be financed.
“Are there specific and strategic investments for the proposed development bank to venture into or for it to spearhead in particular industries to generate incomes?
“We will also want to know how the state is drawing on the right and experienced banking experts to establish and manage this development bank, the stringent audit and system of prudent and good banking governance that will be put in place for the operation and running of the proposed development bank,” he said yesterday.
See said he is certain that the global financial rating agencies would be watching the development closely and the state must be cautious in the mobilisation of ‘our state reserves into the funding of the bank and the socalled strategic projects’.
“It is proven from the records that Sarawak has been exemplary in our financial management and enjoyed exceptional confidence from the rating agencies. The prudent investments using our state reserves have seen handsome returns in dividend and interests earned, to almost RM2 billion in 2016 and the estimated returns for 2017 is RM1.8 billion.
“The annual income derived from our stringent financial management over the years, though modest, has certainly served the state well in generating the needed funds for the state’s development.”
See said drawing on the state reserves to finance the development bank and the strategic development projects would mean that there would be reduction in funds for investments; hence, lesser interest and returns on investment for Sarawak.
“There is no doubt that all Sarawakians will be supportive of funding strategic projects and the state’s efforts to promote socio- economic transformation in Sarawak, but everyone will also be hoping that the state administration would have devised an impeccable institutional system to ensure sound and prudent management, audit and banking governance to safeguard our limited reserves and financial resources.
“I am looking forward to the details of this bold state financial initiative but at the same time, I am looking forward to the institutional plans and strategies with assurance of the chief minister that the stringent financial management of our state reserves will not be compromised.”