Sarawak now Affin Bank’s largest shareholder, promises “no interference”

Sarawak state government says it will not interfere in the operations of Affin Bank Bhd after emerging as its largest shareholder.

(NST) – Sarawak Premier Tan Sri Abang Johari Tun Abang Openg said there will be no change in the bank’s name, although the state will suggest one if needed.

“The Sarawak government will not interfere in the bank’s management. We will let them manage the bank with no interference from us. Nonetheless, bank will participate in the development that we have in Sarawak.

“There is no need for a new name. But if the time comes (to change name), we will give a suggestion,” he told a press conference in conjunction with the sale and purchase agreement with the Armed Forces Fund Board (LTAT) to raise the state government’s stake in Affin Bank here today.

Abang Johari added that Affin Bank has sought available investment potential in Borneo including Indonesia.

“Affin Bank is looking at ways to strengthen collaboration with Kalimantan, Sarawak, Sabah and Brunei. I leave it to them to decide where they can make strategic investments,” he said.

The state government raised its interest in Affin Bank to 31.25 per cent from 4.8 per cent through deals with LTAT and the latter’s unit Boustead Holdings Bhd.

The deal was done via the Sarawak government’s wholly-owned subsidiary SGAssetfin Holdings Sdn Bhd.

Abang Johari did not disclose the value of the acquisition.

When asked why did the state government only acquired 31.25 per cent stake in the bank, he said it was done out of compliance with Bank Negara Malaysia.

“We complied with Bank Negara and there is a limit,” he added.

Abang Johari said Sarawak’s decision to invest in the bank was driven by a need to take a strategic step to create a financial platform and synergy with a sound and competent bank which would be essential for Sarawak to elevate its economic potential.

He added that Affin can be one of the critical catalysts to support Sarawak in meeting its sustainable economic agenda.

“The underserved segment of society often struggles to access formal banking services due to various barriers.

“In recognising this challenge, Affin Bank can actively implement strategies to bridge this gap by providing easy access to banking services, microfinancing solutions, and financial literacy programs. Together we can empower these underserved individuals and businesses, supporting their journey towards self- sufficiency,” he said in his speech.

Abang Johari added that by leveraging on Affin Bank’s extensive network and expertise, the parties will work together to unlock new opportunities, facilitate access to capital, and ignite the entrepreneurial spirit of the locals.

“Together, we will build a financial ecosystem that nurtures innovation, promotes and empowers financial literacy, and enables our communities to achieve their aspirations.

Prior to the SPA, LTAT had a 28.88 per cent stake in Affin Bank, while Boustead, which is wholly owned by the fund, owned about 20 per cent.

Affin Bank president and group chief executive officer Datuk Wan Razly Abdullah said the SPA represents a key milestone in the bank’s journey.

“It is a quantum leap that will propel Affin into a new frontier of excellence. It also marks the start of a chapter that will accelerate Affin’s growth trajectory,” he said in his welcoming remarks.

He added that Affin Bank is expanding its presence in Sarawak to 14 branches by the first quarter of 2025 from six branches currently.