(EnergyAsia, December 26, Friday) — Malaysia’s federal government has agreed to let oil-rich Terengganu state establish its own sovereign wealth fund to manage its investments.

The Terengganu Investment Authority (ITA) will be launched with an initial investment fund of RM10 billion backed by the state’s oil royalties. (US$1 = RM3.47).

While details have yet to be worked out, Terengganu, under control of the opposition party, plans to implement its own development programmes instead of relying on the Federal government.

Despite its oil and agricultural resources, Terengganu still ranks as one of Malaysia’s poorest states.