KUALA LUMPUR, May 18 — Terengganu Investment Authority (TIA), Malaysia’s first state-owned sovereign fund, signalled today that it is ready to initiate high-impact investment projects after announcing that it expects to raise RM5 billion of its initial fund size of RM11 billion this week alone.
It has identified investment projects in the state and around Malaysia as well as strategic partnerships and will team up soon with well-known sovereign wealth funds (SWFs) in tourism, energy and agriculture sectors, said Shahrol Halmi, its chief executive officer.
TIA did not disclose the projects or potential partners but The Malaysian Insider understands that one of the projects will involve the development of a world-class tourism resort.
“The key objective of TIA’s investment strategy is to ensure the development of long term sustainable economic and social programmes for Terengganu,” Shahrol said.
This was the rationale behind its establishment after the idea was first mooted by Terengganu Sultan and current Agong Sultan Mizan Zainal Abidin to manage the state’s long-term oil royalty revenue to ensure sustainable income after oil and gas reserves run out.
After obtaining approvals from the Cabinet and the state executive council, TIA was set up on February 27 with its initial fund size of RM11 billion sourced from investors from domestic and foreign capital markets including RM5 billion this week alone on the back of a government guarantee.
Shahrol said that a successful TIA will bring significant benefits to Terengganu and Malaysia.
“We expect to increase domestic and foreign direct investment significantly and in so doing, stimulate the economy, create jobs and ultimately raise the standard of living in Terengganu and Malaysia,” he noted, adding that there was also a major drive to attract skilled Malaysians who were working abroad to fill up all positions in TIA.
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