Well, we didn't know that our country can actually support so many sovereign wealth funds. A bit of trivia, the most number of monarchies in the world reside in Malaysia, by virtue of our Sultanate states within the country. Looks like we will have the most number of sovereign wealth funds within a country as well soon. Obviously, the Penang's initiative is to "counter reflect" how audacious the move by Terengganu was, and not an entirely genuine request. I guess Penang leaders will argue that it is genuine if we all treat things at face value.
The key point is that the Federal government will act as guarantor for the bond issuance by Terengganu. A similar backing will almost allow any state to start their own sovereign wealth fund, or should I say, state wealth fund. Cynical yet smart, now Federal government has to come up with a reasonable rebuttal on how to say no to Penang.
The Penang government today sent a proposal and letter to Prime Minister Datuk Seri Najib Tun Razak office, seeking the approval from the federal government a guarantee of RM5 billion for the creation of Penang Sovereign Wealth Fund.
p/s photo: Fasha Sandha