KUALA LUMPUR (Oct 3): The Sarawak government is considering consolidating its state assets, businesses and investment arms, which include the likes of Petroleum Sarawak Bhd, Sarawak Energy Bhd, and newly set-up RM8 billion Sarawak Sovereign Wealth and Future Fund (SSWFF), under one entity.

The move will see the consolidated entity adopting a "model of assets and investments management with the member-bodies as shareholders", which is run like any other business body with the main purpose of lifting the state's revenue for the long term, said Sarawak Premier Tan Sri Abang Johari Tun Openg.

The consolidated entity "would work much like similar entities in other developed countries such as Singapore's Temasek Holdings and the Government of Singapore Investment Corp (GIC), Mubadala Investment Company of UAE, China Investment Corp and Japan Investment Corp”, according to a statement released by the premier's office.

At the moment, the state's investment branch is under Sarawak Inc. The SSWFF, which saw an initial capital injection of RM8 billion by the state, commenced operations this year. Other entities mentioned by the premier include the Sarawak Economic Development Corp.

A study will be carried out by experts to determine the proposal's feasibility, Abang Jo, as he is affectionately known, said at the closing of the three-day Sarawak’s Civil Service’s One Team Retreat held in Brunei in conjunction with the launch of the Sarawak Trade and Tourism Office Brunei.

Abang Jo said the consolidated entity "would provide an atmosphere conducive to the 'mobility' of professionals among the member bodies along the principle of 'hire and fire' to ensure that the bodies were well-run".

“Such a model would also enable remuneration to be set at a high level and comparable to those in developed countries,” he added.

On the Sarawak government's move to raise its stake in Affin Bank Bhd (KL:AFFIN) to 31.25%, the premier said the bank would serve as a platform for driving small and medium enterprise growth and facilitate the state’s economic development.

Similarly, the Development Bank of Sarawak, established in 2017, has been a crucial financial platform for funding strategic infrastructure projects to boost the state economy, he noted.

At the event, State Secretary Datuk Amar Mohamad Abu Bakar Marzuki discussed solutions for improving the execution of government projects and asset management in the Sarawak civil service.