KUCHING: The state government will not interfere in the business operations of Affin Bank, despite becoming its largest shareholder, said Sarawak Premier Tan Sri Abang Johari Tun Openg.
Today, the Sarawak state government, through its wholly-owned subsidiary, SG Assetfin Holdings Sdn Bhd, has finalised the share purchase agreement (SPA) of Affin Bank's shares from the Armed Forces Fund Board (LTAT) and Boustead Holdings Bhd.
Consequently, the Sarawak government is now the largest shareholder in Affin Bank, raising its stake to 31.25 per cent from 4.81 per cent previously.
The premier said the state will leave it out to the management and board of directors to run the bank's daily operations.
"There will be no interference on our part.
"I am sure the bank will participate in the development that we have in Sarawak.
"Whatever it is, I will leave it to the management and the board (to run the bank)," he told reporters after the signing ceremony of the SPA here, today.
Asked if Sarawak plans to rename the bank, Abang Johari said there are no plans but they might consider it in the future.
"At the moment, we (Sarawak) also do not have a representative on the board of the bank, we will make an appointment but we have not decided yet," he said.
In his speech at the ceremony, Abang Johari said the idea of acquiring substantial shares in Affin Bank began with a deep respect and recognition for the banking industry's pivotal role in the development of the economy and society.
He said banks are the engines that drive the economic growth of a nation and are essential for business development and financial well-being.
"Our decision to invest in Affin Bank is 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 potential.
"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," he added.