News brief
Sarawak wants a wealth fund like Norfund
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arawak, the largest state in Malaysia, will engage seriously with Norway in an earnest effort towards the successful formation and management of its own sovereign wealth fund, Sarawak Premier Tan Sri Abang Johari Tun Openg said in a news report. Given the widely acclaimed success of Norway’s sovereign wealth fund that had been managed with the highest standard of governance since its inception in 1996, it was a standard Sarawak needed to benchmark on, he pointed out. “Given the many parallels between Sarawak and Norway, Sarawak is particularly interested in the lessons to be learnt from Norway, given that it has around 25 years of experience in developing the fund,” he said in a statement issued from Oslo during his visit to Europe in early May.
Norway’s sovereign wealth fund has been managed with the highest standard of governance since its inception in 1996 and the premier pointed out that it is a standard Sarawak needed to benchmark itself on. Abang Johari was on a twoday visit to Norway as part of his week-long itinerary to Europe that saw him being given the honour to deliver a keynote address at the World Hydrogen 2022 Summit and Exhibition in Rotterdam, Holland earlier in May. Norfund is a development finance institution established by the Norwegian Stor ting in 1997 and owned by the Norwegian Ministry of Foreign Affairs. The fund receives its investment capital from the state budget and from profits from its world wide investments. Norfund helps to build sus-
tainable businesses that would not otherwise be developed because of the high risks involved. It prioritises investments in four investment areas that are aligned with the UN´s Sustainable Development Goals, but stresses that “Profitability is a Precondition.” “Companies only sur vive if they are profitable,” it says on its website. “This means that profitability is essential for the creation of sustainable jobs and lasting development effects. Norfund enhance profitability and development effects through active ownership and business development support.” By the end of 2019, Norfund’s Internal Rate of Return (IRR) has over the years since it was established been 6% per year.
Sarawak Premier Tan Sri Abang Johari Tun Openg is serious in his wish to establish a parallel to Norfund in Sarawak.
36 ScandAsia • June 2022
