Sovereign Wealth Fund

In Gerakan Harapan Baru on 06/10/2015 at 11:34

Sovereign Wealth Fund meant different things to different people.  TIA was setup by Agong Tuanku Mizan with good intention to better assist Trengganu to manage oil royalty rebate from the Federal Government.  That is a legitimate use of Sovereign Wealth Fund to help our Trengganu state to weather the ups and downs of income from commodity prices. [ http://kl.coconuts.co/2015/07/28/1mdb-origins-9-things-you-probably-didnt-know ]

Then, there is TIA that becomes the nightmare of 1MDB.  Now, there is the debated Azmin Ali’s Darul Ehsan Investment Group fund. [ http://www.malaysiandigest.com/news/566008-is-a-scandal-brewing-in-the-new-selangor-state-s-darul-ehsan-investment-group-deig.html ] I don’t know if Penang Investment Authority has been created or would be created.  But, it is prudent for rakyat and public intellectuals to ask for clarity and transparencies for mandates, governance and reporting for such funds.

If not done correctly, all Sovereign Wealth Funds would become what academics, Hatton-Pistor, call as engine of ‘maximizing autonomy in the Shadow of Great Powers’.  With great powers, room is provided for mismanagement, and bailout.   [ http://cgt.columbia.edu/wp-content/uploads/2013/12/Hatton-Pistor-Maximizing-Autonomy.pdf ]

For more info, this youtube from Andew Ang lecture at Columbia Business School speaks a lot.

For those who still think SWF is all beneign, one can check out much work for questions raised about Singapore’s indebtedness, despite a strong growing economy and an amazing returns from her Temasek SWF.

Question, question, and questions.  A responsible rakyat cannot stop putting forth questions to our politicians so that we could better manage our shared economy collectively.


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