The Sarawak Government has become the largest shareholder in Affin Bank Berhad (AFFIN) with a 31.25 per cent stake, following the conclusion of the signing ceremony of the share purchase agreement (SPA) of AFFIN shares owned by Lembaga Tabung Angkatan Tentera and Boustead Holdings Berhad on 27 September 2024.
It is a significant increase from the 4.81 per cent stake that the Government held in the bank previously. For AFFIN, this latest development is viewed as highly beneficial for the organisation in boosting its growth and solidifying its position as a “leading financial institution in the banking industry.”
For Sarawak, according to its premier YAB Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg, its decision to invest in AFFIN is a means of maximising its economic potentials by establishing a strong financial foundation and partnership with a reputable bank.
Such partnership is also essential as Sarawak is driving sustainable economic growth and enhancing the quality of life of its citizens through Post COVID-19 Development Strategy 2030, thus making AFFIN “one of the critical catalysts” in supporting its socio-economic endeavour.
“By leveraging on 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,” he said in his address at the signing ceremony.
Furthermore, AFFIN can play a prominent role in empowering individuals and businesses from the underserved segment of society towards self-sufficiency, especially in providing easy access to banking services, micro-financing solutions and financial literacy programmes.
Small and medium-sized enterprises (SMEs), in particular, will be able to take advantage of the bank’s wide-ranging products and services coupled with its expertise in trade finance and commercial lending as they expand their operations, develop new ideas and create job opportunities for their communities.
“Our strategy to achieve a high-income economy focuses on diversifying our economic sectors, reducing dependency on natural resources, and attracting investments to create sustainable job opportunities.
“AFFIN can play a critical role in this mission by actively supporting the growth of our strategic industries. Whether it be agro-based ventures, tourism, manufacturing, or technology-driven sectors, AFFIN can provide the necessary financial tools and guidance for businesses to flourish,” the Premier added.
Prior to this, AFFIN has been carrying out initiatives to strengthen its presence in Sarawak and bolster local SMEs towards digitalisation.
In July 2024, for instance, it inked a memorandum of understanding (MoU) with Sarawak Digital Economy Corporation, the Kuching branch of Dewan Usahawan Bumiputera Sarawak and Chemsain Sustainability Sdn Bhd to promote digital transformation and sustainable growth in the region.
In the same period, it launched the inaugural AFFIN BizChat programme in Kuching, which featured a series of interactive business discussions and a networking platform focusing on uplifting the SME community, fostering a healthy economy and enabling businesses to capture new opportunities.
References:
AFFIN Group. (2024, September 27). Sarawak Government Concludes Share Purchase Agreement of Affin Shares: A Pivotal Move to Strengthen Financial Landscape and Elevate Unrivalled Customer Service. [Media release]. https://affin.listedcompany.com/newsroom/MEDIA_RELEASE_-_SARAWAK_GOVERNMENT_CONCLUDES_SHARE_PURCHASE_AGREEMENT_OF_AFFIN_SHARES_A_PIVOTAL_MOVE_TO_STRENGTHEN_FINANCIAL_LANDSCAPE_AND_ELEVATE_UNRIVALLED_CUSTOMER_SERVICE.pdf
BERNAMA. (2024, July 25). Affin Bank inks MoU to bolster SME growth in Sarawak. The Star. https://www.thestar.com.my/business/business-news/2024/07/25/affin-bank-inks-mou-to-bolster-sme-growth-in-sarawak
Noor, S.H. (2024, September 27). Sarawak govt becomes largest shareholder in Affin Bank with 31.25% stake. New Sarawak Tribune. https://www.newsarawaktribune.com.my/sarawak-govt-becomes-largest-shareholder-in-affin-bank-with-31-25-stake/
Ten, M. (2024, July 25). Affin launches BizChat to provide platform for Sarawak SMEs to grow. The Borneo Post. https://www.theborneopost.com/2024/07/25/affin-launches-bizchat-to-provide-platform-for-sarawak-smes-to-grow/
