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Kota Kinabalu: The Sabah Government is studying the possibility of setting up a Sabah Sovereign Wealth Fund to convert the State’s natural resource wealth into long term financial assets for future generations.

“The fund would serve as a strategic mechanism to manage the State’s wealth rather than simply a savings pool,” said State Finance Ministry Under Secretary (Finance and Economics Division) Musleha Khairunisa Muluk.

“It is not just about accumulating money or creating a savings fund. It is a mechanism to manage our State’s wealth strategically,” she said at the SANKALPA Sabah 2030 Forum on the implementation of the SMJ 2.0 strategy held at the Sabah International Convention Centre, here.

The forum was held under the Sabah Maju Jaya (SMJ) 2.0 framework, the State’s strategic development roadmap for 2026 - 2030. 

Sarawak set up Malaysia’s first sovereign wealth fund in 2024 with an initial amount of RM8 billion and modelled after the Norwegian Wealth Fund.

Building on the recovery and stabilisation efforts achieved under SMJ 1.0, the forward-looking plan aims to strengthen Sabah’s economic competitiveness, accelerate infrastructure growth and uplift local communities.

She said the concept of a sovereign wealth fund is not entirely new to Sabah, pointing out that the State Government has already begun similar strategic investments managed through government linked companies. 

“This shows Sabah is not only collecting revenue but also building assets capable of generating long term returns,” she said. 

She said the idea deserves serious attention, not because it is a trend among other states or nations but because Sabah possesses strategic resources that need to be managed sustainably and with foresight. 

“Sabah has strategic resources that need to be managed more sustainably, prudently and with foresight,” she said.

She said the Ministry is currently studying the matter in detail, including the implementation model, governance structure, funding sources, strategy and legal implications, before any decision is made. 

She said a cautious approach is necessary given the scale of the decision, pointing out that the ultimate goal is not just to grow the State’s financial assets but to ensure Sabah’s natural wealth continues to support economic development and create more opportunities for the people.