KUCHING, Dec 4 — Sarawak’s decision to establish its own bank and strengthen its petroleum sector has enabled the state to continue implementing major development projects even when federal funding is uncertain, said the premier.

Datuk Patinggi Tan Sri Abang Johari Openg said this creative financial strategy gives Sarawak the flexibility to finance key infrastructure projects independently, ensuring development momentum is not disrupted.

Speaking at the Gabungan Parti Sarawak (GPS) Backbenchers Night yesterday, he said the creation of the state-owned Development Bank of Sarawak (DBOS) was based on fundamental banking principles that allow Sarawak to leverage its own financial strength.

“We understand the principle: if one deposits RM1, the bank keeps 20 sen as reserve and can loan out 80 sen.

“That is how banks earn profit, because this is our own bank, the profit stays in Sarawak and we can finance our own projects,” he explained.

He said this mechanism allows the state to convert financial assets into long-term development capacity, particularly for capital-intensive works such as roads and bridges.

Abang Johari pointed out the alternative financing model was also necessary in the past when several federal projects were cancelled.

“Even when the federal government discontinued certain projects, we continued using our own mechanisms so that roads, bridges, and other works could proceed,” he said.

The premier explained that the establishment of Petroleum Sarawak Berhad (Petros) has further enhanced the state’s financial position, enabling Sarawak to better manage and regulate matters related to the oil and gas industry.

“This is how we manage our finances using a more creative approach, so that when the federal government delays or cuts certain allocations, we still have our own capacity to fund projects,” he said.

He noted that Sarawak’s sound financial planning has allowed the government to meet its commitments and implement long-term programmes for the people.

Abang Johari said the Sovereign Wealth Fund and free education support are initiatives that were part of the state’s forward-looking development plans.

“What we have done is prepare for the future. Although free education assistance was not originally listed in the GPS manifesto, we proceeded because it strengthens human capital development.

“Our approach is long-term planning, not short-term funding,” he added. — The Borneo Post