Dewan Rakyat passes 7 motions tabled by Finance Ministry

The Dewan Rakyat has today passed seven motions tabled by the Finance Ministry. – The Malaysian Insight file pic, August 4, 2022.

THE Dewan Rakyat today passed a motion for the government, through the Minister of Finance Incorporated (MOF Inc), to make an investment this year by changing the status of the remaining government loan totalling to Felcra Bhd, to equity via shareholding, equivalent to 969.268 million ordinary shares of RM1 each.  

Felcra Bhd is a wholly owned subsidiary of MOF Inc.

Deputy Finance Minister I Mohd Shahar Abdullah who tabled the motion said the debt-to-equity swap is aimed at increasing the company’s enterprise value, and improving its balance sheet and gearing ratio.

This will enable Felcra to apply for loans from financial institutions or the capital market to finance its commercial projects, and operate independently in the future, in line with its transformation objectives.

The Dewan Rakyat also passed the MOF’s motion for the government to provide contributions of US$9 million (US$1=RM4.45) to the 19th Additional Fund Programme (AFP) and US$9 million to the 20th AFP International Development Association (IDA).

Deputy Finance Minister II Yamani Hafez Musa said IDA is an agency under the World Bank group which is responsible for giving long-term grants and loans without interest or at very low interest rates to 76 of the world’s poorest countries.

“Malaysia became a donor country during the 17th IDA round from July 1, 2014 to June 30, 2017, and continued its contribution for the 18th round from July 1, 2017 to June 30, 2020.

“Malaysia’s contribution to the 17th and 18th IDA each amounted to US$27 million with payment period of nine years. Payment for 17th IDA is expected to complete in 2023 while 18th IDA is expected to complete in 2026,” he said.

The Dewan Rakyat also, according to provisions under section 10(4)(a) of the Financial Procedure Act 1957 (Act 61), passed a motion so that the second schedule of the act be amended to rename the National Science and Research Council Trust Fund to Malaysia Science Endowment.

Under the same provision, the Dewan Rakyat also passed the MOF’s motion so that the second schedule of the act be amended to delete Tabung Inovasi Negara Bhd (Kwatin).

Yamani said the objective Kwatin’s establishment was to enable the allocation for research and development to be channelled to 299 related projects.

“Out of the total allocation of RM44.24 million, RM24.43 million had been spent as of December 2014. All projects were implemented in 2014. Hence, Kwatin is no longer relevant considering that the objective of its establishment had been achieved,” he said.

Yamani also put in a motion so that the existing detail for the Sarawak Refrigerator Advance Trust Fund is cancelled as all collection for repayment had been successfully completed and there was no more need for funding since 1998.

The trust fund, which was set up on July 6, 1964, was aimed at providing cash advances to civil servants in Sarawak to buy refrigerators, which were made to the federal government in Sarawak, and federal government officers who come from and work in Sarawak.

Under the same act, Yamani also proposed a motion for the second schedule of the act to be amended and for the renaming of the National Maritime Sovereign Trust Fund from Malaysia Continental Shelf Project Trust Fund under the supervision of the National Security Council of the Prime Minister’s Department.

The rebranding and scope of functions expansion, he said, would be impactful in efforts to strengthen the security and sovereignty at sea or entities based on Malaysia’s new map.

Yamani also tabled a motion for the government to agree in giving contributions of US$70,000 for the 12th AFP of the International Fund For Agricultural Development (IFAD).

He explained that, as a donor country, Malaysia would obtain visibility and have the opportunity to share its experience in implementing development policies, especially in the agriculture sector.

Besides that, the contribution would also help IFAD in supporting a sustainable food system to achieve the objective of the second Sustainable Development Goals, namely zero hunger, among the developing countries. – Bernama, August 4, 2022.

Sign up or sign in here to comment.