Kota kinabalu: The Gabungan Rakyat Sabah (GRS) coalition has announced plans to establish a Sabah Sovereign Wealth Fund next year, contingent on securing a new mandate in the upcoming 17th Sabah State Election. GRS deputy secretary-general Datuk Armizan Mohd Ali revealed this initiative, named the Investment Fund for Sabah Children’s Future, as a strategic move to provide the state with a stable and sustainable revenue source, lessening its reliance on tax income and fluctuating commodity resources.
According to BERNAMA News Agency, Armizan outlined that the fund would function as a strategic investment instrument, intended for use only after a predetermined period to support state development projects. The initial capital for the fund will be sourced from a portion of the state reserves, while additional annual capital will derive from the state’s 40 percent revenue entitlement. This entitlement, particularly the special grant, will be directed into the fund.
Armizan further explained that the governance of the fund would include a mixture of state government representatives and professionals from finance, investment, and legal sectors. These experts will establish policies and investment strategies to ensure sustainable returns for Sabah. The aim is to receive expert advice on managing the fund effectively, determining strategic investments in areas such as the stock market, domestic investments, or international opportunities.
The GRS is optimistic that the fund’s creation will secure a more stable income for Sabah, reducing its dependency on the federal government, especially in tackling basic infrastructure challenges. Armizan emphasized that future leaders of the state should not only see increased income but also reap the benefits of earlier investments by current leaders in building a prosperous future.
The establishment of the Sabah Sovereign Wealth Fund is a central element of the GRS manifesto and is set to be integrated into the Sabah Maju Jaya (SMJ) 2.0 Roadmap for 2026 to 2030. The state election is scheduled for November 29, with early voting on November 25.