Malaysia legislation
Section 8
of SARAWAK SOVEREIGN WEALTH FUTURE FUND BOARD ORDINANCE, 2022
Section 8
Withdrawals from the Fund
(2)
Withdrawals from the Investment Fund Account may be made—
(a)
by way of transfer to the Endowment Fund Account, of dividends, interest, profits, gains, income or other returns derived from the investments or assets of the Fund in the Investment Fund
Account, in excess of the Threshold Value;
(b)
for the acquisition of investments or assets of the Fund in accordance with the Investment Mandate, which are in turn held in the Investment Fund Account;
(c)
for the payment of salaries, fees, remunerations, honorariums or allowances of the Guardians, members of the
Investment Advisory Panel, and officers and employees of the
Board included in the annual estimate approved by the Majlis
Mesyuarat Kerajaan Negeri;
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(d)
for the payment of the costs incurred for, or incidental to, the acquisition, holding, disposal or realization of any investments or assets of the Fund;
(e)
for the payment of any costs incurred for, or incidental to, the proper custody, management and control of the Fund;
(f)
to meet any shortfall in provisions in an annual estimates for any particular financial year of the Government consequent upon the occurrence of a Critical Event, provided that—
(i)
the amount so withdrawn from the Investment
Fund Account shall be paid into the State Consolidated
Fund;
(ii)
the amount to be withdrawn from the
Investment Fund Account for such purpose shall not exceed twenty-five percent of the credit balance in the
Investment Fund Account;
(iii)
the amount withdrawn under subparagraph (i)
shall be repaid into the Investment Fund Account within twelve months after cessation of the Critical Event is declared by the Majlis Mesyuarat Kerajaan Negeri; and
(iv)
the notice of such withdrawal under subparagraph (f) shall be laid in the Dewan Undangan
Negeri in a sitting immediately after the occurrence of the
Critical Event; and
(g)
to defray such costs, expenditure, obligations and liabilities as the Board may incur in the proper performance of its functions under this Ordinance or any regulations made hereunder, including but not limited to, the costs of the
Investment Advisory Panel or of any advisors, agents, managers and consultants retained by the Board in accordance with this
Ordinance.
(3)
Where the amount in the Investment Fund Account in the first financial year of the Fund or in any subsequent financial year, is insufficient to cover all or any of the expenses referred to in subsection (2):
(a)
the Board may request the Majlis Mesyuarat Kerajaan
Negeri to provide adequate funds to meet the shortfall, provided that, any such funds shall be repaid on such terms and conditions as may be agreed between the Government and the Board; or
(b)
the Majlis Mesyuarat Kerajaan Negeri may authorise the payment of management fees of such amount as it deems fit, to the Board to enable the Board to cover all or any of the expenses referred to in subsection (2).
(4)
Withdrawals from the Endowment Fund Account may only be made for:
(a)
the purposes and in the circumstances specified in subsections (2)(c) to (f) above;
(b)
the acquisition of investments or assets of the Fund in accordance with the Investment Mandate, which are in turn held in the Endowment Fund Account; or
(c)
the purposes of transfer into the State Consolidated
Fund and thereupon to be held under a trust fund established under section 4 of the Financial Procedure (Contingencies and
Trust Funds) Ordinance 1963 [Cap. 37] for the following purposes:
(i)
the education of people of the State in tertiary institutions or such other institutions as may be approved by the Majlis Mesyuarat Kerajaan Negeri;
(ii)
the improvement of the standard of living of peoples of Sarawak based on socio-economic needs;
(iii)
the development of the talents, expertise and the entrepreneurial skills of the peoples of Sarawak; and
(iv)
such other purposes as may be determined by the Majlis Mesyuarat Kerajaan Negeri in a notification to 14
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be published in the Gazette and laid before the Dewan
Undangan Negeri.
Holding of Assets in the Fund