KUALA LUMPUR, May 18 — The federal government will gain from the success of the Terengganu Investment Authority (TIA) in terms of 10 per cent from the net profit of TIA, Prime Minister Datuk Seri Mohd Najib Tun Razak said today.
He said this while responding to a question on the rationale of the government's guarantee for the TIA’s RM5-billion fund.
The Minister of Finance Incorporated has a 10 per cent share of TIA’s annual profit.
Stating this as a good decision in terms of the true spirit of partnership with the Terengganu state government, Najib said the move would help the state government and also boost the country’s economy.
“It will allow the additional RM11 billion to be invested not only in Terengganu but the whole country. So, it will stimulate the national economy and also leverage on that by bringing foreign direct investments over RM11 billion,” he said after chairing the Barisan National supreme council here.
TIA, which was set up in February 2009, will have an initial fund size of RM11 billion, with RM5 billion to be raised from the capital market on the back of a government guarantee and the remainder to be raised through the assignment to TIA of some of the future oil royalties due to the state government. — Bernama
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