(Kuching, 4th) Through creative fiscal management and fundraising methods, Sarawak is now able to self-finance development projects without having to wait for allocations from the federal government.
Sarawak Premier Datuk Patinggi Tan Sri Abang Johari stated that one key initiative is the establishment of Sarawak's own bank.
"As everyone knows, there is a basic theory in the banking industry: when a bank receives deposits, it is then capable of issuing loans. I still remember that principle: if someone deposits RM1, the bank will retain 20 sen as reserves, and then use the remaining 80 sen to issue loans. This is how banks generate profits. Since we now have our own bank, we can finance projects ourselves."
Abang Johari said this while speaking at the GPS Backbenchers' Night last night.
In addition, he pointed out that the establishment of Petroleum Sarawak Berhad (PETROS) is another important strategy, allowing Sarawak to have its own share in the oil and gas industry.
"Therefore, we use these mechanisms to build our funding. When the federal government previously canceled some of our projects, we still had our own funds to continue pushing these works, including road and bridge construction."