21-05-2025
Soon Koh: Infrastructure Development Trust Fund hamstrung by limitations, modern consolidate financing model needed
Dato Sri Wong Soon Koh – Photo by Chimon Upon
KUCHING (May 21): The Infrastructure Development Trust Fund (IDTF) was hamstrung by 'structural and operational limitations', said Bawang Assan assemblyman Dato Sri Wong Soon Koh.
While expressing for the Infrastructure Development Trust Fund (Dissolution) Ordinance 2025, he said the IDTF must be replaced with a modern, consolidated financing model.
According to him, the IDTF, established in 1985, lacks transparent governance, accountability mechanisms, and the flexibility to finance technology-driven, high-value projects.
'Without adaptive governance, the IDTF might fail to address emerging needs like rural-urban connectivity or port or airport modernisation,' he said during the debate of the Bill, which was passed by the State Legislative Assembly (DUN) today.
Wong listed four key shortcomings of the old framework: inadequate accountability, limited adaptability to sustainability goals, inflexible funding rules, and exposure to potential mismanagement.
'The dissolution of the IDTF represents a momentous move in our approach to infrastructure financing and management.
'Indeed, this change must be seen as our broader efforts to rationalise our public finance management, which is moving towards unifying financing, and this unified financing can reduce fragmentation of development funding mechanisms, which can bring about strategic overall prioritisation of infrastructure projects,' he said.
He called for a detailed implementation schedule for the dissolution, including timelines, various responsibilities, and audit trails, as well as proposed a dedicated transition task force be set up to oversee the migration of funds and project documentation.
Furthermore, he emphasised that the reform must be seen as part of the state's vision to modernise the infrastructure financing system to ensure that money spent will bring maximum value to the people.
Wong warned that the move's success hinges on stringent oversight and the state's ability to leverage alternative funding models effectively.
'By consolidating funds under this financial model, the state is on its way to accelerate infrastructure development, reduce bureaucratic inefficiencies, and assert more financial independence,' he added. Infrastructure Development Trust Fund lead wong soon koh
