Image credit: Sabah Hunter
IN a bid to revive Sabah’s economy amid the Covid-19 pandemic, Sabah Development Bank (SDB) suggested that the State adopt an international credit rating as it would enhance the State’s credibility and lure more foreign investors.
Its Chief Executive Officer and Managing Director Datuk Vincent Pung Yee Kiong (pic) said an international rating will accord greater transparency and disclosures, allowing investors to gauge Sabah’s credit more accurately.
“It will open up more funding revenues, especially from foreign funding sources,” he said when delivering his speech during the two-day Sabah International Business and Economic Summit (SIBES) 2022 at the Sabah International Convention Centre (SICC).
Additionally, to spur economic growth, Vincent said SDB is shifting from a financing-centric role to a more development-centric role by financing high-impact projects in infrastructure, agribusiness and tourism.
“We are ring-fencing our portfolio, not prioritising under normal classifications and enforcing guidelines, but by the potentials of recovery.
“We are willing to hold back, reschedule and restructure, if necessary, to ensure revival of each business.
“SDB is already positioned to help drive change. Our Chief Minister Datuk Seri Hajiji Mohd Noor himself has been monitoring and encouraging our repositioning,” he said.
He added that SDB is also expanding its roles in venture capital, project rehabilitation, cooperate advisory and loan syndications.
“We have also started collaboration with SME Bank (Small Medium Enterprise Development Bank Malaysia Berhad) and Ambank to channel much needed financial resources to Sabah under SME-guaranteed schemes.
“SDB, like all financial institutions, are faced with stressed loans due to this
pandemic but we cannot react with the same template like ordinary times and apply normal process and procedures at this abnormal and trying circumstances.
“Indeed, we’ve been going through all our loans with a fine toothcomb to seek for sparks that would reignite the sustainability,” he said.
Commenting on Sabah’s economic growth of 3.8 per cent, Vincent said the numbers indicate there is still room for wealth creation and tapping fully into Sabah’s resources.
“The three backbone industries of our State – the oil and gas, agriculture and tourism sectors are all in my mind at infant stages and still have a lot of room to grow and mature.
“We have not explored the full potentials of our sustainable forest plantations, our minerals and our carbon assets,” he said.
Vincent, however, reasoned that although the State may be behind in some aspects, it would save Sabah the hassle of having to make major overhauls or even costly mistakes — by emulating advanced countries.
“Being late to me is also a huge
blessing. We can take notes from China’s leapfrogging experiences —- not suffocated by legacies or technologies, damaged environments and mindsets, but rather adopting and reinventing and riding on the best practices and technology.
“We’d be able to write our new technology and guidelines when developing our infrastructure.
“Take for example — power generation is already a dirty word and is getting extremely difficult to finance. In recent years, there has been a shift and expectation towards green sustainable development amidst the global community.
“Sabah in this respect is at a better position to adapt and capitalise the proven green sustainable technology to unlock its potential and that’s avoiding the steepest part of the learning curve,” he explained.
Meanwhile, Vincent urged the Government to step in and provide assurance to troubled industries and sectors.
“We need a lot of action and direction from the Government and authorities to make the right noises and to do the right thing.
“Now the world is deciding to live with Covid-19 and we hope to see some return to normalcy very soon. It will take time, sacrifices and a cool calm thinking mind to map out the necessary strategies to get out of this cauldron,” he said.
Source: http://www.dailyexpress.com.my/news/185740/adopt-international-credit-rating-sdb/