DUN passes Bill to dissolve redundant Infrastructure Development Trust Fund
Datuk Amar Douglas Uggah Embas — Photo by Chimon Upon
KUCHING (May 21): The Infrastructure Development Trust Fund (Dissolution) Bill, 2025 was passed in the State Legislative Assembly (DUN) today to dissolve the Infrastructure Development Trust Fund which has been deemed redundant in view of the economic landscape today.
Deputy Premier Datuk Amar Douglas Uggah Embas said the trust fund, which was set up in 1985, served as a revolving fund consisting of money appropriated from time to time from the State Consolidated Fund into the trust fund for the purpose of building certain basic infrastructure such as roads, water and electricity supplies to any development area.
'The situation then was different, the development status of Sarawak was different, and the financial system was also limited. At the time there was a need to establish this trust fund.
'But as time goes on, so did the economic landscape where there are banks that can assist developers in their programmes while at the same time, the government also has significant and strong financial capacity.
'As such, it is decided that this trust fund no longer serves its role and as such as we have to dissolve it,' he said in his third reading of the Bill at the State Legislative Assembly (DUN) Sitting here today.
He gave his assurance that despite the dissolution of the trust fund, it would not affect infrastructure development in Sarawak as the fund was set for specific purposes.
'The purpose of the Infrastructure Development Trust Fund has nothing to do with our future infrastructure development plan.
'As you may have noticed, we are implementing massive infrastructure development in Sarawak such as the Second Trunk Road, coastal roads and the Public Works Department (JKR) Sarawak has been entrusted to implement over RM30 billion worth of projects.
'This means that even though the trust fund is dissolved, it will not affect our infrastructure development,' he said.
Earlier, Uggah, who is Infrastructure and Port Development Minister, told the august House that the objective of the trust fund was to assist any individual or group of developers or investors or persons who have private undertakings to develop land for housing, commercial or industrial purpose.
'By establishing this trust fund, it would alleviate the initial heavy burden of capital outlays required for infrastructural development from developers in any approved new development plan.
'It also enabled developers to expedite and ensure the smooth implementation and cost-effectiveness of any approved development projects,' he said.
He said in today's economic landscape, private developers are financially resilient and capable of undertaking development projects and stand a high chance of securing project financing from the bank.
'Furthermore, over the years, the Sarawak government has significantly strengthened our fiscal capacity, and our budget governance has become more structured and strategic, enabling more allocation for basic infrastructure development across Sarawak.
'The trust fund has served its intended purpose and is no longer relevant. As such, dissolution of this trust fund and repealing the Infrastructure Development Trust Fund Ordinance, 1985 is both timely and justified,' he said.
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