Development Bank of Sarawak: A Catalyst for Economic Transformation

The Development Bank of Sarawak has been a driving force behind the state's economic transformation. Established in 1967, it has been providing financial assistance to various sectors, including agriculture, manufacturing, and services.

One of the key initiatives of the bank is to promote rural development, which is a critical component of the state's economic growth. By providing financial support to rural communities, the bank has helped to improve their living standards and increase their economic participation.

The bank's focus on rural development has led to the creation of new job opportunities and the stimulation of local economies. In fact, the bank has disbursed billions of ringgit in loans and grants to rural communities, helping to boost their economic prospects.

The bank's efforts have not gone unnoticed, with many rural communities benefiting from its support. By providing access to finance, the bank has empowered rural communities to take control of their economic development and improve their overall well-being.

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The Development Bank of Sarawak has a rich history that dates back to 1961, when it was established as a statutory body under the Development Bank of Sarawak Ordinance.

The bank was initially capitalized with a sum of $10 million, which was provided by the Sarawak State Government.

The bank's primary objective was to provide financial assistance to the people of Sarawak, particularly in the rural areas.

Its headquarters is located in Kuching, the capital city of Sarawak.

The bank's main focus was on promoting economic development in the state, particularly in the areas of agriculture, industry, and infrastructure.

It has been instrumental in supporting various development projects in Sarawak, including rural electrification and water supply schemes.

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Sarawak is pushing for more autonomy, with Premier Abang Johari announcing plans to take over more entities in 2024. He's already made some progress, including acquiring 5% of sales and services tax on petroleum products sold in the state from Petronas.

The state is also looking to seal the takeovers of Bintulu Port and MASwings, the rural air services arm of the Malaysian Aviation Group. This move is part of Abang Johari's efforts to reclaim what he believes was lost to federal politics.

Abang Johari's leadership has brought Sarawak into the high-income-state club, ranking higher than Selangor and Penang according to the World Bank's standards.

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DBOS received a significant amount of deposits as of 31 March 2022, totaling RM 7.16 billion.

This substantial deposit amount is a testament to the bank's stability and trustworthiness in the eyes of its customers.

As of November 2022, DBOS had approved a total of RM 15.27 billion in loans, with a drawdown of RM 8.93 billion.

DBOS, a bank with a strong presence, has Dato Sim Kheng Boon as its first CEO.

Dato Laura Lee Ngien Hion serves as the Deputy State Financial Secretary and is also a member of the bank's board of directors.

The bank receives deposits from government-linked companies, local authorities, statutory bodies, and the public sector.

DBOS carries out lending activities, allowing depositors to withdraw their money at any time.

Strategic projects in Sarawak, such as public infrastructure development, are supported through the bank's lending activities.

Downstream processing in the oil and gas sector, tourism, digital initiatives, real estates, agriculture, and green projects also benefit from the bank's lending.

DBOS received a significant amount of deposits in 2022, with RM 7.16 billion received as of March 31st.

This is a substantial amount of money, and it's likely to be used for various purposes such as lending to businesses or individuals.

As of November 2022, DBOS had a total of RM 15.27 billion in approved loans, which is a notable increase from the deposits received.

The actual amount of credit paid out to borrowers, also known as the drawdown, was RM 8.93 billion, which is a significant portion of the approved loans.

This suggests that DBOS is actively lending to businesses and individuals, and the demand for credit is high.

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Sarawak is taking a bold step towards economic development by setting up the Development Bank of Sarawak (DBOS). This move will enable the state government to raise funding for development projects, reducing its reliance on federal funding.

DBOS will be able to raise funding through the international money market to support infrastructure, modern technology, agriculture, and other projects. This will help industrialize Sarawak and create more economic activities and employment opportunities for the people.

With a strong reserve of over RM30 billion, Sarawak is well-equipped to fund its development projects. The state government can now use its own financial resources to expedite development, rather than waiting for federal funding.

DBOS is a banking institution with a licence issued by Bank Negara Malaysia, ensuring it is highly regulated and monitored. This provides a level of security and stability for the state's financial resources.

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Sarawak's Chief Minister, Datuk Patinggi Abang Johari Tun Openg, has a clear vision for the state's future. He wants to transform Sarawak in a way that no other leader has done before.

His vision is vast, with a focus on the future of Sarawak for all Sarawakians. He's prioritizing investment in digital infrastructure and human resources to benefit the state.

The deployment of 5G technology in the next two to three years will be a game-changer, enabling transformation on a level we cannot yet conceive. This, combined with artificial intelligence, will result in a total game changer.

Since taking office, Abang Johari has come up with 81 initiatives to achieve his vision. These initiatives aim to leapfrog Sarawak's digital and technological development, among other things.

The setting up of DBOS is a key part of this vision, allowing the state government to raise funds for development instead of relying on federal funding. This will enable faster infrastructure development and create more economic activities and employment opportunities.

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Sarawak's Development Bank of Sarawak (DBOS) may get off the ground as early as January 1 next year.

The Sarawak government is likely to inject about RM3 billion from its reserves to kick-start its operations.

Of the RM3 billion, RM1 billion would be used as paid-up capital and the balance as a deposit by the state government.

The state government will earn interest income, most likely 4% to 5% per year, from its deposit in the bank.

The plan to set up the DBOS was announced in April, three months after Abang Johari Openg was sworn in as chief minister.

Abang Johari has a vision for Sarawak's transformation, focusing on the future of Sarawak for all Sarawakians.

His commitment to prioritise investment in digital infrastructure and human resources will benefit Sarawak.

The next two to three years will be an eye-opener for everyone with the deployment of 5G technology.

The 5G transformation combined with artificial intelligence will result in a total game-changer for Sarawak.

Abang Johari has come up with 81 initiatives since helming Sarawak, showing his commitment to driving economic development.

The state's reserves stood at roughly RM29 billion in April, before the planned allocation for DBOS.

The planned allocation for DBOS will not deplete the state's reserves, and the state will actually earn higher interest than putting the money in a fixed deposit.