Financial institutions

Sarawak Development Bank partners with other financial institutions

KUCHING: The Development Bank of Sarawak (DBOS) will partner with other financial institutions on business opportunities such as club deal syndication loans, according to its chairman Tan Sri Mohamad Morshidi Abdul Ghani.

He said the bank, which is currently focused on financing strategic projects for Sarawak’s transformation, will actively identify opportunities to provide green finance to companies that integrate environment, social and governance (ESG) into their business practices.

“DBOS will leverage digitization applications to create smart banking, operations and service delivery.

“It also plans to embark on a syariah-compliant banking business and chart its initiative on ESG in line with Sarawak Post-Covid-19 Development Strategy 2030 (PCDS 2030) towards inclusiveness, sustainability and environment,” he said at the bank’s 5th meeting. birthday dinner.

Mohamad Morshidi said DBOS had approved total loans of RM15.27 billion, with a phasing out of RM8.93 billion since its inception.

The bank’s total assets grew to RM9.47 billion, with retained earnings of approximately RM130.5 million as of October 2022. DBOS was launched in 2017 with a paid-up capital of RM500 million from Sarawak’s reserve funds.

Sarawak Prime Minister Datuk Patinggi Abang Johari Tun Openg, who graced the anniversary dinner, said that being a state-owned development finance institution, DBOS was mandated to fund strategic infrastructure projects that would transform the socio-economic well-being of Sarawakians.

He said these projects include Sarawak Water Supply Scheme, Sarawak Second Main Road and Sarawak Coastal Road and Rural Electrification Scheme.

Funding will also be provided for other projects planned and implemented by agencies such as the Samarahan Integrated Regional Development Agency and projects in the Sarawak Renewable Energy Corridor region – the Upper Rajang Development Agency, the Highlands Development Agency and the Northern Regional Development Agency.

The development bank has been invited to offer its financing facilities and services to the new Greater Kuching Coordinated Development Authority and Betong Integrated Development Agency.

DBOS has so far facilitated and provided the state with fiscal flexibility in the strategy of its development programs whereby alternative funding sources will ensure funds are readily available to maintain development momentum without the uncertainties to scramble for internal or federal government funding. , nor depend on the public market.

Since its inception, total credit facilities approved for state strategic projects amounted to over RM15bil covering projects across Sarawak and encompassing several key mandated sectors. — By JACK WONG