KUCHING: The Sarawak Infrastructure Development Trust Fund will be dissolved following the passing of a Bill in the state legislative assembly on Wednesday (May 21).

Deputy Premier Datuk Amar Douglas Uggah Embas said it was set up in 1985 as a revolving fund for constructing basic infrastructure such as roads as well as water and electricity supply in areas under development.

"The objective was to assist developers or investors to develop land for housing, commercial or industrial purposes.

"This trust fund... would alleviate the initial heavy burden of capital outlay required for infrastructure development from developers in any approved new plan," he said when tabling the Infrastructure Development Trust Fund (Dissolution) Bill.

However, Uggah said private developers were now financially resilient and capable of undertaking projects, besides standing a high chance of securing financing from banks.

He said the state government had also strengthened its fiscal capacity over the years, enabling more funds to be allocated for basic infrastructure development.

As such, he said the trust fund had outlived its purpose and its dissolution was timely.

Uggah added that the move would not affect infrastructure development in Sarawak, and the remaining balance would be credited into the state consolidated fund.

The Bill was passed after eight assemblymen debated on it.