Malaysia legislation
Section 1
of SARAWAK SOVEREIGN WEALTH FUTURE FUND BOARD ORDINANCE, 2022
Section 1
―(1) To calculate the actual Threshold Value in any year, the formula is:
Threshold Value of year X = (Threshold Value of year (X-1) +
Injected capital of year X + Target Return of year X - Cost of
Investment of year X) * ((1+Actual CPI rate of year X)/ (1+3%
assumed inflation rate))
(2)
The definition of the elements of the formula is contained in the note of this Schedule.
Illustrative Threshold Value table
The table below illustrates the Threshold Value in the event that inflation is 3% per annum.
RM (in billions)
Year
Initial
Appropriation
Annual
Appropriation
Net Return
Threshold Value 1 8.00