KUCHING – Bank Negara Malaysia has approved the establishment of the Development Bank of Sarawak (DBOS), Chief Minister Datuk Amar Abang Johari Tun Openg announced on Tuesday.

He said the bank would be operated on a financial model that would help fund the state’s strategic projects in an effort to promote socio-economic transformation catch-up plan (2017-2030).

DBOS, which would operate with full financial support from the state and function as a development bank only, would foster economic growth in Sarawak and contribute towards the acceleration of economic development.

“To further reflect its mandate as an approved development financial institution, DBOS will not undertake or advertise for public deposits as approved under Section 137 and 138 of the Act,” he told a press conference at the end of the International ICT Infrastructure and Digital Economy Conference Sarawak (IDECS) 2017 in Kuching.

The chief minister said the main objective of the bank would be to ensure revenue generated from financing activities of the state’s strategic projects prospered the economy, and therefore the rakyat.

With consistent and sustainable revenue generated, the state would be able to further support the state’s economic transformation agenda.

“Strategic projects include ICT infrastructure (digital economy), power generation, oil and gas and others; urban public transformation sector and the services sector.

“The bank will be a financial institution that would only give loans for strategic projects that have a high impact on our development,” Abang Johari said.

He thanked Prime Minister Datuk Seri Najib Tun Razak, the Federal government and Bank Negara for approving the establishment of the development bank. – Bernama