Lidam supports sovereign wealth fund but wants risk management in place

THE Sarawak Sovereign Wealth Future Fund is important for the long-term development of the state and ensuring economic prosperity and inclusive society, said Lidam Assan (GPS-Katibas).

“It is a Sarawak state-owned investment fund run on behalf of the people, comprising money generated by the government consolidated fund or from the state’s surplus reserves,” he said when debating the Sarawak Sovereign Wealth Future Fund Board Bill 2022 at the State Legislative Assembly (DUN).

Lidam said Sarawak was endowed with abundant natural resources, and proper control needed to be taken to ensure the future generation can still enjoy the wealth of the state.

“As such, there is urgent need to address the depletion of our natural resources and incomes we derive from it to support future needs of Sarawak.”

He said the Sarawak Sovereign Wealth Future Fund can be considered as an alternative source of income for the state, and its establishment was timely.

Having said that, Lidam said precautionary measures must be practised and the level of risk, ethical standards and restrictions for the fund management must be in place and be clearly defined.