Seeking sizeable bank stake
Sarawak aims to be block shareholder in Affin Bank, deal targeted within one month
Sarawak aims to be the block shareholder in Affin Bank Berhad to support the growth of small and medium enterprises (SMEs), said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
He said the size of the stake in Affin Bank is subjected to the maximum limit allowable by Bank Negara Malaysia, but he hoped it could be concluded within a month.
“Like I mentioned earlier in Kuala Lumpur, we have an interest in Affin Bank and the discussions have been conclusive.
“It is just a ma er of formality from Bank Negara Malaysia and we are going to be the block shareholder,” he told reporters a er officiating the Centre for Technology Excellence Sarawak’s (Centexs) 8th Convocation at Jalan Sultan Tengah, here yesterday.
As of Dec 29, 2023, the Sarawak government holds 4.796 per cent equity interest in Affin Bank through the State Financial Secretary.
Previously, Affin Bank had said that its major shareholder, Lembaga Tabung Angkatan Tentera (LTAT), had confirmed a news report that it was in discussions with the Sarawak State Financial Secretary for the “possible transaction of additional shares” in the bank.
Earlier in his speech, Abang Johari said the process to finalise the acquisition of the stake in Affin Bank is expected to be completed within a month.
“We have all the ingredients for the economy to move forward and we have (sufficient) energy (production). What we need now is a certain strategic organisation or entity, and the only missing link is a commercial bank,” he said.
The premier said acquiring a significant stake in a commercial bank will further strengthen the state’s economic potential – with the takeover of Bintulu Port expected to be completed in June this year along with the establishment of a regional airline.
He also said producing a skilled workforce was crucial to meet the needs of various industries in Sarawak as well as embracing modern technology to improve productivity.
As an example, Abang Johari cited the cultivation of paddy utilising advanced technology will enable a farmer to achieve an income of about RM6,000 for every hectare planted per month and this would li the rural community out of the poverty trap.
It is just a ma er of formality from Bank Negara Malaysia and we are going to be the block shareholder.
Datuk Patinggi Tan Sri Abang Johari Tun Openg