GEDONG, April 30 — Sarawak Premier Tan Sri Abang Johari Openg today said the state plans to set up a commercial bank by year end to help the local business community, especially the small and medium enterprises (SMEs) to apply for loans.

He said negotiations are ongoing with the federal authorities to get a licence to operate the bank.

"I am making the effort to get the licence for Sarawak to have its own commercial bank by the end of this year,” he told reporters at an Aidilfitri celebration here.

He said the majority shares of the bank will be owned by Sarawak.

"The problem being faced by the SMEs is that they may have a good business plan, but they find it difficult to get the loans to finance their business from commercial banks due to certain conditions.

"This is where the commercial bank that I propose will come in to help the SMEs,” he said.

Abang Johari said he cannot disclose details on the proposed commercial bank at this stage due to the ongoing talks with the federal government.

The premier also said he will propose that carbon trading be placed under the federal Plantation and Commodities Ministry.

He said carbon trading is defined as a commodity by the United Nations.

He said this will enable Sarawak to engage in carbon trading with other countries.