The eastern Malaysian state of Sarawak has negotiated with Norway to establish and manage a sovereign wealth fund for oil and gas revenues based on the Nordic countries model, the state’s premier, Abang Johari Tun Openg, said during a working visit to the Norwegian capital Oslo in May 12. He Noting that Sarawak is “keen to learn” from Norway’s experience in setting up and managing the world’s largest sovereign wealth fund, the Global Government Pension Fund, which was established in 1996 and currently manages around US$1.4 trillion in investment assets around the world of. “Very good……
The eastern Malaysian state of Sarawak has negotiated with Norway to establish and manage a sovereign wealth fund for oil and gas revenues based on the Nordic countries model, the state’s prime minister, Abang Johari Tun Openg, said during a working visit to the Norwegian capital Oslo on May 12.
He noted that Sarawak is “keen to learn” from Norway’s experience in setting up and managing the world’s largest sovereign wealth fund, the Global Government Pension Fund, which was established in 1996 and currently manages around US$1.4 trillion in assets from investment everywhere. world.
“Sarawak is very interested that Norway has the world’s largest sovereign fund, known for good governance practices and clear fund management policies,” Openg said in a statement after meeting officials from Norges Bank’s Norwegian arm, Norges Bank’s investment management unit Say. Banks that manage sovereign wealth funds.
Oil and gas revenue rises
The Prime Minister said Sarawak has been producing oil and gas since 1910, but only recently has revenue from these resources increased significantly.
“Given the transition of energy to green fuels, we expect this to be a temporary increase that will last up to the next generation, or around 25 years. Therefore, I believe that in light of our desire to develop a multi-generational sustainability strategy for Sarawak, we should not now Use up all the extra income,” the Prime Minister noted.
“Lessons from Norway”
“We should set aside some funds in the form of sovereign funds for the benefit of future generations,” he said, adding that the Sarawak government has benchmarked many similar funds around the world.
“Given the many similarities between Sarawak and Norway, Sarawak is particularly interested in lessons learned from Norway, as it has around 25 years of experience in developing the fund,” Openg said.
