Sarawak and the Armed Forces Fund Board or Lembaga Tabung Angkatan Tentera (LTAT) will finalise the sale and purchase agreement for additional shares in Affin Bank Bhd after obtaining the necessary regulatory approvals, said Sarawak's Premier, Tan Sri Abang Johari Abang Openg.

He said this at the signing ceremony of a memorandum of understanding (MoU) between the Sarawak State Government and LTAT to explore potential cooperation, information sharing, and mutual support.

"Regarding the acquisition of additional shares in Affin Bank by the Sarawak Government from LTAT, both parties will execute the sale and purchase agreement upon obtaining the required regulatory approvals.

"We believe that Affin Bank can gain access to a broader network in Sarawak, where it can collaborate and leverage its capabilities in banking, investment, and treasury," he said.

Present at the MoU signing ceremony were Deputy Prime Minister Datuk Seri Fadillah Yusof, Minister of Women, Family, and Community Development Datuk Seri Nancy Shukri, and Deputy Defense Minister Adly Zahari.

It was previously reported that the Sarawak State Government plans to increase its stake in Affin Bank to around 30 percent from the current 4.8 percent.

However, the signing of the sale and purchase agreement for these additional shares, which was supposed to take place today, has been postponed.

Abang Johari then mentioned that Sarawak has several green initiatives in its planning, and he believes there are opportunities for Affin Bank to participate and expand its Environmental, Social, and Governance (ESG) portfolio.

Moreover, he said, Affin Bank could expand its retail customer base as there are untapped potentials in Sarawak's retail market.

"The opportunities to collaborate with Affin Bank are vast, including promoting cashless payments and digital banking usage in Sarawak. In addition, Affin Bank could explore collaborations to support small and medium enterprises (SMEs) by providing access to affordable financing, while enhancing financial literacy and leveraging Affin Bank's network platform.

"We believe this will have an additional impact on Sarawak's development as it will provide a financial platform to further enhance the economy through SME development, entrepreneurship programs, and providing services to Sarawak as a whole," he said.

Abang Johari stated that, together with strong shareholders, Affin Bank will expand its reach, enhance innovation, improve efficiency, and deliver shareholder value.

He was confident that this synergy will strengthen Affin Bank's position as a major player in the financial industry.

"This initial cooperation with LTAT is just the beginning of potential and greater opportunities. Indeed, the signing of this MoU will create a platform for Sarawak to continue its collaboration with LTAT," he said.