Sarawak to finalise negotiations with LTAT over Affin Bank stake soon, says Abg Jo

KUALA LUMPUR (Jan 30): The additional transaction to increase the Sarawak government’s stake in Affin Bank Bhd will be finalised soon, said Sarawak Premier Tan Sri Abang Johari Tun Openg.

However, he said the state government is still in negotiation with Affin Bank and Lembaga Tabung Angkatan Tentera (LTAT) to determine the amount of shareholding to increase.

“Affin Bank is a listed company and we cannot reveal the amount of shares and I have to comply with Bursa Malaysia’s requirements but we are finalising it with the discussions with LTAT,” he said at the Affin Malaysia Market Outlook 2024: Propelling Malaysia Forward press conference here today.

Previously, Affin Bank said its major shareholder LTAT has confirmed a news report that the armed forces fund is in discussions with the Sarawak State Financial Secretary for the “possible transaction of additional shares” in the bank.

Elaborating further, Abang Johari said the state government is interested in increasing its shareholding in the bank to drive the growth of local small and medium enterprises (SMEs), apart from the state’s investment and savings purposes.

“Incomes are managed by three factors which are expenditure, investment and savings. These three factors are important not only to manage the income but also to safeguard the future of our people and kids. Hence, this is why we want to look at the bank because they are part of our investments,” he pointed out.

Meanwhile, Affin Bank president and group chief executive officer Datuk Wan Razly Abdullah Wan Ali said Sarawak and Affin Bank have a lot in common, especially in their mission to drive local economic growth.

“Sarawak wants to be progressive, Affin also wants to be progressive. Sarawak has three pillars of vision going forward, namely economic growth, social inclusion and environmental sustainability,” he said.

In line with the vision, he said the bank also have three pillars, which are to enhance customer service, leadership and responsible banking impact, that have similarities in order to grow and conduct business together.

As at Dec 29, 2023, the Sarawak State Financial Secretary owned 4.796 per cent equity interest in Affin Bank.

Abang Johari said Sarawak would focus more on producing green energy particularly in the area of biomass, solar heat, and hydropower, while looking into increasing investments in the green industry and supplying green energy to Singapore. — Bernama