Sarawak Sovereign Wealth Future Fund Board Ordinance, 2022 (Cap 81)

The Ordinance establishes a body corporate known as the Sarawak Sovereign Wealth Future Fund Board, which acts as the custodian of a State fund designed to safeguard and invest monies for the sustainable growth of Sarawak’s wealth and for the benefit of future generations. The Fund is primarily financed through Initial and Annual Appropriations from the State Consolidated Fund, as authorized by resolutions of the Dewan Undangan Negeri. It is divided into two distinct parts: the Investment Fund Account, which holds capital and returns up to a target Threshold Value, and the Endowment Fund Account, which receives returns exceeding that value to support public interests such as tertiary education, socio-economic improvements, and the development of entrepreneurial skills. Governance is provided by a Board of Guardians who must possess significant expertise in finance, fund management, or corporate governance, with at least half of the members required to be Independent Guardians. To ensure rigorous oversight, the Board must maintain several specialized committees, including Investment, Risk, Shariah Advisory, and Internal Audit committees, and is supported by an expert Investment Advisory Panel to advise on global economic trends. The Investment Mandate prioritizes long-term, risk-balanced real growth, emphasizing capital preservation for the first five years and strictly prohibiting any trading in derivatives. Furthermore, the Board is held to strict accountability standards, including mandatory quarterly and annual reports, annual audits by the Auditor General or an appointed auditor, and a legal obligation of secrecy regarding its non-published activities.

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