Sarawak waiting for BNM green light on Affin Bank deal

Sarawak premier Abang Johari Openg says there will be changes in Affin Bank’s boardroom if the state government’s bid for an increased stake in the bank goes through.

PETALING JAYA: The Sarawak government is awaiting approval from Bank Negara Malaysia (BNM) for its bid for an increased stake in Affin Bank Bhd, says Sarawak premier Abang Johari Openg.

The Sarawak government currently has a 4.95% stake in Affin Bank, and the state’s investment arm, State Financial Secretary as well as the Armed Forces Fund Board are in negotiations for it to acquire an additional stake.

“All the processes have already been completed. It’s just a matter of obtaining official approval from BNM,” Abang Johari said during an event in Kuching.

“With the majority of our shareholders, which is a maximum of 32% under BNM, there will be changes in the board,” he said when asked if the bank’s chairman would be a Sarawakian.

In February, Abang Johari said the Sarawak government made its initial investment in Affin Bank in April last year because of its strong performance.

He said Sarawak’s investment in the banking sector, including in Affin Bank, would boost the state’s small and medium-sized enterprises, as well as business activities.

Abang Johari also hinted at the possibility of the Sarawak government assuming control of additional major entities in 2024 to play a greater role in its economic development and to protect its rights.

The Borneo Post reported Abang Johari as saying the state’s economy had been gradually growing over the past five years, highlighting the RM13.1 billion in state revenue achieved in 2023, in contrast with RM11.9 billion in 2022.