Abang Johari says Sarawak govt nearing completion of negotiations to boost stake in Affin Bank
KUALA LUMPUR, Jan 30 — Sarawak Premier Tan Sri Abang Johari Openg today said that the state government is on the verge of concluding negotiations with the Armed Forces Fund Board (LTAT) regarding the augmentation of its stake in Affin Bank Berhad.
The Sarawak state government holds a 4.796 per cent stake in Affin Bank through its investment arm, State Financial Secretary Sarawak, which was acquired for RM1.97 per share or a total of RM221.74 million in April 2023.
“Close, very soon,” he said, referring to the proximity to finalising the proposed acquisition, after attending the Malaysia Market Outlook Session 2024 organised by Affin Group at Menara Affin, Tun Razak Exchange here, today.
He said that the Affin Bank stake acquisition is rooted in Sarawak’s historical banking landscape.
He recalled how six banks originated from Sarawak in the past, including Bank Utama and Wah Tat Bank.
“When there was a policy by the federal government to merge all these banks, our banks were all swallowed by the big banks, if I can use the word ‘swallowed’.
“We feel like we need a bank to boost our small and medium-sized enterprises and also business activities in Sarawak,” he said when asked why Sarawak was looking at owning a stake in a bank when other states do not.
He noted the state’s interest in Affin Bank, stating, “Definitely, we are looking at Affin. We are more or less conclusive in terms of our discussions with LTAT.”
Earlier this month, several media reported Sarawak’s interest in acquiring an additional 15 per cent stake in Affin Bank from LTAT.
LTAT holds a direct 29.7 per cent stake, while its wholly-owned unit, Boustead Holdings Bhd, holds 20.65 per cent.
Meanwhile, he also expressed the state’s ambitious vision to become the Bavaria of Malaysia, drawing inspiration from the prosperous German state.
Emphasising the interconnectedness of Sarawak’s success with Malaysia’s prosperity, he highlighted the region’s distinct comparative advantage, particularly in the realm of energy.
While acknowledging the energy shortages faced by Peninsular Malaysia, he underscored this as a strategic advantage for Sarawak.
“We divide our energy, and at the end of the day, the whole country will benefit.
“That’s why I was talking about Bavaria. If your tariff is attractive, then investors will come.
“The moment you get a lot of investment then it will centre our Ringgit Malaysia because the Ringgit is based on supply and demand,” he said, underlining the potential positive impact on Malaysia’s overall economic landscape.
