THE Sarawak government has finally put pen to paper to acquire a substantial stake in the armed forces-owned Affin Bank by increasing its stake from 4.81% to 31.25%.
The state's government's interest will be managed by its wholly owned subsidiary, SG Assetfin Sdn Bhd.
Sarawak Premier Abang Johari Openg, who witnessed the share purchase agreement between the state government, Armed Forces Fund Board (Lembaga Tabung Angkatan Tentera -LTAT), and Boustead Holdings Berhad in Kuching this afternoon, described the purchase as a strategic move that “marks a significant step forward for Sarawak in becoming a notable player in Malaysia’s banking landscape”.
Tracing the rise of Sarawak banks in the 1900s and their demise in the aftermath of the Asian financial crisis in 1997 after the federal government initiated a series of banking reforms and mergers on the pretext of strengthening and improving the efficiency and stability of the nation’s banking industry, had sown the seeds for Sarawak to have its own bank, the premier said.
He was referring to banks, some family-owned, like Kwong Lee Mortgage and Remittance Co. which was later known as Kwong Lee Bank back in 1937, Bian Chiang Bank in 1924, Wah Tat Bank, Hock Hua Bank and Bank Utama.
“The idea of acquiring substantial shares in Affin began with a deep respect and recognition for the banking industry’s pivotal role in the development of our economy and society.”
Abang Johari added Sarawak's decision to invest in Affin was driven “by a strategic move to create a financial platform and synergy with a sound and competent bank which is essential for Sarawak towards elevating its huge economic potentials”.
“Thus, having a supportive bank plays a crucial role in achieving the objectives of Sarawak’s Post Covid-19 Development Strategy 2030 (PCDS 2030) as collaboration with Affin will be vital in fostering the achievement of this development plan.”
The bank, he added, could be one of the critical catalysts to support Sarawak in meeting its sustainable economic agenda.
“By leveraging Affin's extensive network and expertise, we will work together to unlock new opportunities, facilitate access to capital, and ignite the entrepreneurial spirit of our people.
“Together, we will build a financial ecosystem that nurtures innovation, promotes financial literacy and empowers financial literacy, and enables our communities to achieve their aspirations.” - September 28, 2024
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