Premier eyes Affin Bank’s role in creating a core economic hub for Borneo

1 month ago 8

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By Ashley Sim

KUCHING, Sept 27: Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has expressed his hope that Affin Bank Berhad (Affin Bank) will play an active role in enhancing connectivity and infrastructure development across Borneo through investments in strategic companies and industries.

Abang Johari emphasised the bank’s potential in bridging economic collaborations between Sarawak, Sabah, Brunei, and Kalimantan, Indonesia.

“We want Affin Bank to align with our core business and take into account the vast potential in Borneo, including our neighbouring areas, as Sarawak has established road networks and connectivity,” he told reporters at a press conference today after witnessing the share purchase agreement (SPA) between the Sarawak government and the Armed Forces Fund Board (LTAT) at a local hotel here.

He further stated that the bank’s investment could stimulate greater cooperation among businesses in the region and create a “core economic area” for Borneo.

The Premier also mentioned that Affin Bank’s involvement could accelerate the growth of Sarawak’s core industries, including methanol production, ammonia projects, and port expansions, which are aligned with Sarawak’s economic ambitions.

Furthermore, Abang Johari highlighted that Sarawak’s economic strength, particularly in green energy and carbon capture initiatives, would attract financial institutions looking to invest in sustainable projects.

“The world is moving towards green financing, and we need financial partners to support the development of industries related to carbon trading and renewable energy,” he added.

Sarawak’s strategic investments in Affin Bank comes at a time when the region is focusing on boosting its green economy and expanding power generation capabilities to neighbouring regions such as Singapore and Peninsular Malaysia.

Abang Johari reiterated that this would require substantial financing, with upcoming projects like the ammonia production plant estimated to cost RM4 billion, providing significant opportunities for financial institutions.

With the Sarawak government now holding a substantial stake in Affin Bank, the Premier hopes this will lead to a stronger financial presence in the region, enhancing the State’s economic clout and providing support for key development projects.

Meanwhile, Affin Bank president and group chief executive officer (CEO), Datuk Wan Razly Abdullah Wan Ali, expressed confidence in the partnership and reaffirmed their commitment to Sarawak’s economic growth.

He revealed that the bank aims to double its asset base to RM180 billion by 2028 and sees Sarawak as a key growth market, especially in the Small and Medium Enterprise (SME) sector.

“We have a solid plan to expand our footprint in Sarawak, which will serve as a major contributor to our overall growth strategy,” he said. — DayakDaily

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