Chief minister Hajiji Noor speaking to SLS president Nazim Maduarin (2nd left) and former president Roger Chin (left) as well as Sabah’s attorney-general Brenndon Keith Soh (3rd from left) to discuss the state’s entitlement to 40% of the revenue derived from Sabah. Also in the meeting last night was GRS deputy secretary-general Armizan Mohd Ali (right).
PETALING JAYA: Caretaker chief minister Hajiji Noor has asked the Sabah Law Society (SLS) to be part of a team tasked with drafting the framework for the Sabah Sovereign Wealth Fund (SSWF).
In a statement, Hajiji said that SLS had welcomed the wealth fund which would be established through a state enactment, should Gabungan Rakyat Sabah retain the state government next Saturday.
GRS had mooted the wealth fund in its manifesto which it unveiled last week.
“I have asked SLS to be part of the team preparing the framework, including the amendments to the relevant enactments.”
Roger Chin.
Hajiji said he had asked SLS to be part of the team when he met its president, Nazim Maduarin and former president Roger Chin as well as Sabah’s attorney-general Brenndon Keith Soh to discuss the state’s entitlement to 40% of the revenue derived from Sabah.
Commenting further on the SSWF, Hajiji said that its board will also comprise professionals and experts in various fields including, investments, law and finance, apart from representatives from the state government.
“This is a practical and proactive step we have initiated to ensure Sabah’s finances and fiscals are always protected and managed responsibly.”
In its manifesto unveiled on Nov 17, GRS said it plans to establish the state’s first sovereign wealth fund next year.
The fund’s initial capital would come from a portion of Sabah’s state reserves, which grew from RM2.9 billion in 2020 to RM8.6 billion as of September 2024 under the GRS government.
A fixed portion of Sabah’s 40% special grant from Putrajaya will also be deposited into the fund annually.
On Sabah’s 40% entitlement, Hajiji said he had asked SLS to continue providing the Sabah Attorney-General’s Chambers and the state’s finance ministry with the necessary input to strengthen its demand when engaging the federal government.
Last month, the Kota Kinabalu High Court affirmed Sabah’s 40% entitlement to federal revenue earned in the state, as provided for in the Federal Constitution.
Prime Minister Anwar Ibrahim has since said that the federal government will honour the entitlement.
Separately, Chin told FMT that SLS could help come up “with the best laws” to ensure transparency.
As a statutory body, the SSWF board must consist of professionals and has to be audited.
“There has to be some sort of public scrutiny of this (board) and maybe an oversight (mechanism) for the sovereign fund.
“These things are very important to make sure that it (the initiative) is something that the public has confidence in. You’re putting a lot of money, which belongs to Sabah, inside the fund. That’s why all of this is required.”
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