Nothing new in that concept. Such banks exist almost everywhere and are, normally, public institutions. So the announcement by Sarawak Chief Minister that the State is to create one is nothing new.
A lot was said about this new Bank by Inche Johari. What it might do. Who would run it. Who the Board of Directors would be and so on. He also said that it would have “a paid up capital of RM500million”; about 120 million US dollars)
Paid up is the operative word here. Paid up by whom and from what funds? Maybe State Governor Taib to whom such a sum would be chickenfeed? Don’t hold your breath. His funds have long flown offshore and won’t come back until he is investigated and tried. So from good friend Najib maybe? He can certainly take the needed funds from the other state funds he controls.
Or a public offering?. One problem there is that it cant be said that the Bank will have a fully paid up capital when shares are on offer to any optimists that may still be in the capital market.
Unfortunately these pertinent questions were not raised at the “launch”. So they are being raised here instead. Don’t hold your breath awaiting answers.
We send out the latest story at 7am Malaysia time