Terengganu looks to the future with RM10b fund

2008/12/12

Terengganu looks to the future with RM10b fund

KUALA LUMPUR: Terengganu is setting up a RM10 billion sovereign wealth fund to ensure its growth after its oil and gas resources are depleted.

Called the Terengganu Investment Authority (TIA), the idea for the fund was mooted by Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin and presented to the state and Federal Governments recently.

Tuanku Mizan, who is the sultan of Terengganu, said the state must plan for its future economic growth.

The king also said the state's wealth must be managed prudently and professionally so that its prosperity could be safeguarded.

Yesterday, the state executive council endorsed the setting up of the TIA with Tuanku Mizan as chairman of the board of advisers. Other board members will be professionals.

The TIA will operate as a sovereign wealth fund that invests and delivers long-term economic benefits and returns to its investors and Malaysia.

It aims to initially raise up to RM10 billion that will be invested in Terengganu and the country. It will also have the mandate to invest globally and hopes to bring international partners to the state.

The RM10 billion will be sourced from local and foreign capital markets with a proposal for the Federal Government to provide a government guarantee of up to RM5 billion and for the TIA to be declared a tax-exempt company.

The funds will be secured against a portion of the state's oil revenues.

- NST Online -