THE Sarawak government has moved to repeal the Infrastructure Development Trust Fund Ordinance, 1985, citing its redundancy in the state’s current economic context.
Deputy Premier Datuk Amar Douglas Uggah Embas described the move as both “timely and justified,” saying the fund had fulfilled its original objective and was no longer necessary in today’s development landscape.
“The fund has outlived its purpose. With the state’s strengthened fiscal capacity and structured budget governance, retaining the trust fund is no longer relevant,” he said when tabling the repeal Bill during the Sarawak Legislative Assembly (DUN) sitting today.
Uggah, who is also Minister for Infrastructure and Port Development, said the Majlis Mesyuarat Kerajaan Negeri had earlier resolved to close the trust fund, in line with the state’s evolving development financing strategies.
He said private developers are now financially capable of undertaking infrastructure projects independently, often with ease in securing bank financing.
“Over the years, Sarawak’s fiscal strength has improved significantly, allowing the government to allocate more strategically towards basic infrastructure across the state,” he added.
The Bill, which consists of seven clauses, outlines the legal mechanism for the dissolution of the fund and the management of its remaining assets.
Clause 1 provides the title of the Bill and authorises the Minister to appoint the commencement date; Clause 2 defines key terms used within the Bill; Clause 3 enables the formal dissolution of the Infrastructure Development Trust Fund upon the Bill’s enforcement; Clause 4 directs that any remaining funds, as instructed by the State Financial Secretary, be transferred to the state’s Consolidated Fund; Clause 5 allows for any outstanding administrative expenses to be paid from the trust fund prior to its dissolution; Clause 6 grants the minister authority to make necessary modifications should difficulties arise in implementing the repeal; and Clause 7 formally repeals the 1985 Ordinance upon the Bill’s enforcement.
The original Infrastructure Development Trust Fund Ordinance was passed by the Dewan Undangan Negeri Sarawak on May 14, 1985, and came into effect on Jun 1, 1987.
It was introduced by the then Minister for Works and Special Functions to facilitate early infrastructure development financing in the state.
