According to the state’s public communications unit (Ukas), Sarawak entered into the agreement through its wholly-owned subsidiary, SG Assetfin Holdings Sdn Bhd, today.

Ukas quoted Sarawak premier Abang Johari Openg as saying the decision to invest in Affin Bank was driven by the need to create a strategic financial platform.

Abang Johari said Affin Bank would play a crucial role in helping the state achieve its sustainable economic agenda, including its goals outlined under the Post-Covid-19 Development Strategy 2030.

“By leveraging Affin Bank’s extensive network and expertise, we can unlock new opportunities, facilitate access to capital and ignite the entrepreneurial spirit within Sarawak.

“Together, we will build a financial ecosystem that fosters innovation, promotes financial literacy and empowers our communities to reach their aspirations. ”

Before the acquisition, Sarawak held a 4.81% stake in the bank. It acquired the additional shares from LTAT and Boustead.

LTAT was previously Affin Bank’s largest shareholder, holding a 28.79% stake, followed by Bank of East Asia Ltd with 23.93% and LTAT’s wholly-owned unit Boustead Holdings Bhd, with 20.02%.

Ukas also quoted deputy defence minister Adly Zahari as saying the state’s acquisition of shares in the bank was expected to bring substantial benefits, including competitive and sustainable dividends for LTAT contributors, who are members of the Malaysian armed forces.

This move will not only enhance LTAT’s long-term financial stability but also ensure consistent and reliable returns for contributors’ savings, he said.

Affin Bank’s president and group CEO Wan Razly Abdullah said the agreement perfectly aligned with the bank’s vision to become the “most creative and innovative financial company”.

“We are committed to strengthening our position and look forward to working closely with all stakeholders to achieve shared goals and deliver exceptional value,” he said.