An opposition MP has proposed setting up a sovereign wealth fund to prevent the government in power from abusing Malaysia's oil riches as a personal piggy bank.
Compared to oil-rich Norway which today has the richest sovereign wealth fund in the world at RM2.7 trillion, PKR MP Nurul Izzah Anwar lamented the fact that Malaysia's equivalent oil fund, the Petronas-backed Kumpulan Wang Amanah Negara (Kwan), only has RM5.43 billion.
Nurul (right) asked where did Malaysia’s oil wealth go, considering that Petronas had declared an accumulated profit of more than RM700 billion since its inception some 40 years back.
"Petronas cannot continue to serve as a private fund for the prime minister and the cabinet, with the use of nearly 40 percent of the revenue generated by the petroleum revenue in the government budget, compared with Norway which only allows four percent to be used.
"This fact shows the government does not seem to realise that the oil revenue wealth will dry eventually," Nurul, the MP for Lembah Pantai, said in a press statement.
Since Kwan was formed in 1988, Petronas has contributed about RM500 million a year into the fund but this was raised to RM1 billion from 2012.
For the sake of the country's future, Nurul said that Malaysia's oil money should be treasured and managed as well as the Employees Provident Fund (EPF) which is today one of the country's best-performing funds, paying out a 6.35 percent dividend to its members for 2013.
EPF had declared that it would pay out RM31.2 billion out to its members this year and its assets' value have also risen to RM586.66 billion at the end of 2013, compared to RM342.01 billion in 2008, when the last global financial crisis struck.
"If (monies from oil) were invested as wisely as the EPF, it will certainly provide a great return to the people, and will provide protection to the Malaysian economy, which at this point is wobbling due to the instability of the global economy," Nurul said.
Under her proposal, Nurul said the new oil wealth fund would come under the direct supervision of Parliament, and can only be withdrawn during an emergency with the approval of a two-thirds majority vote of the House of Representatives.
The PKR vice president hoped her proposal would get bi-partisan support as it is for the sake of future generations.
Compared to oil-rich Norway which today has the richest sovereign wealth fund in the world at RM2.7 trillion, PKR MP Nurul Izzah Anwar lamented the fact that Malaysia's equivalent oil fund, the Petronas-backed Kumpulan Wang Amanah Negara (Kwan), only has RM5.43 billion.
Nurul (right) asked where did Malaysia’s oil wealth go, considering that Petronas had declared an accumulated profit of more than RM700 billion since its inception some 40 years back."Petronas cannot continue to serve as a private fund for the prime minister and the cabinet, with the use of nearly 40 percent of the revenue generated by the petroleum revenue in the government budget, compared with Norway which only allows four percent to be used.
"This fact shows the government does not seem to realise that the oil revenue wealth will dry eventually," Nurul, the MP for Lembah Pantai, said in a press statement.
Since Kwan was formed in 1988, Petronas has contributed about RM500 million a year into the fund but this was raised to RM1 billion from 2012.
For the sake of the country's future, Nurul said that Malaysia's oil money should be treasured and managed as well as the Employees Provident Fund (EPF) which is today one of the country's best-performing funds, paying out a 6.35 percent dividend to its members for 2013.
EPF had declared that it would pay out RM31.2 billion out to its members this year and its assets' value have also risen to RM586.66 billion at the end of 2013, compared to RM342.01 billion in 2008, when the last global financial crisis struck.
"If (monies from oil) were invested as wisely as the EPF, it will certainly provide a great return to the people, and will provide protection to the Malaysian economy, which at this point is wobbling due to the instability of the global economy," Nurul said.
Under her proposal, Nurul said the new oil wealth fund would come under the direct supervision of Parliament, and can only be withdrawn during an emergency with the approval of a two-thirds majority vote of the House of Representatives.
The PKR vice president hoped her proposal would get bi-partisan support as it is for the sake of future generations.
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