Sarawak’s plan to increase stake in Affin Bank with agreement awaiting regulatory approval

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By DayakDaily Team

KUCHING, July 19: Sarawak’s acquisition of additional shares from the Armed Forces Fund Board (LTAT) in Affin Bank will proceed with a sale and purchase agreement upon securing the necessary regulatory approvals.

Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg expressed confidence that Sarawak’s intention to increase its stake in Affin Bank will enhance the financial institution’s ability to tap into the broader Sarawak network, leverage its investment banking and treasury capabilities.

He highlighted that this move will open opportunities for Affin Bank to boost its sustainable financing initiatives and expand its environmental, social and governance (ESG) credentials under its five-year ESG Roadmap, especially as Sarawak has several green initiatives in the pipeline.

“Certainly, Affin Bank can expand its customer base as there are untapped potentials in the retail market in Sarawak.

“Opportunities to work with Affin Bank are wide, including promoting cashless payments, adopting digital banking and collaborating to support SMEs (small and medium enterprises) with affordable financing, while enhancing financial literacy and leveraging Affin Bank’s networking platform,” he said in his test of speech.

Premier made these remarks at the memorandum of understanding (MoU) signing ceremony between Sarawak government and LTAT held at Affin Bank in Kuala Lumpur today.

It was reported by The Edge Malaysia today, citing sources, that Bank Negara Malaysia (BNM) had recently granted conditional approval to Sarawak for the deal, though the specific conditions are not yet know and are not expected to be a deal breaker.

It also reported that based on information from sources, the signing of the sales and purchase agreement was supposed to be held at the same time, but was postponed.

The Edge also understood that there are no issues with Sarawak increasing its stake in Affin Bank to about 30 per cent, potentially making it the largest shareholder.

Abang Johari emphasised that these strategic partnerships will significantly impact Sarawak’s development by providing a financial platform to boost the economy further through SME development and entrepreneurship programmes and to serve Sarawak in general.

“I am confident that these synergies will solidify Affin Bank’s position as one of the key players in the financial industry,” he stressed.

Deputy Prime Minister Dato Sri Fadillah Yusof, Deputy Minister of Defence Malaysia Adly Zahari, Deputy Premier Datuk Amar Douglas Uggah Embas, Deputy Premier Datuk Amar Awang Tengah Ali Hasan, Deputy Premier Datuk Amar Dr Sim Kui Hian, as well as federal and Sarawak ministers were among those present. — DayakDaily

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