KUCHING: The Sarawak state government has raised its interest in Affin Bank Bhd to 31.25 per cent through deals with Armed Forces Fund Board (LTAT) and Boustead Holdings Bhd.

This makes it the largest shareholder in Affin Bank.

The deal was done via Sarawak government's wholly-owned subsidiary company, SGAssetfin Holdings Sdn Bhd. Sarawak Premier Tan Sri Abang Johari Tun Abang Openg  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 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'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."I am confident that with the unwavering commitment and collective efforts of our people, Affin will flourish and become the beacon of financial excellence that our nation deserves," he said.

Prior to the SPA, LTAT had a 28.88 per cent stake in Affin Bank, while Boustead, which is wholly owned by LTAT, owned about 20 per cent. Sarawak previously held a 4.8 per cent stake in Affin the bank.

Deputy Defence Minister Adly Zahari said the agreement would enable better management of retirement savings in LTAT.

"This strategic decision is expected to yield substantial positive returns, reflected in competitive and sustainable dividends for LTAT contributors, who are members of the Malaysian Armed Forces. "LTAT will not only strengthen its long-term financial stability but also ensure that our contributors' savings consistently benefit from reliable returns and sustainable growth, underscoring our commitment to their financial well-being," he said in his speech.

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 is expanding its presence in Sarawak to 14 branches by the first quarter of 2025 from six branches currently. 

Affin's share price was trading 4.5 per cent lower at RM2.95 a share earlier.

https://www.nst.com.my/business/corporate/2024/09/1111597/breaking-news-sarawak-raises-interest-affin-bank-3125pct-bttv