By Media Selangor Team
SHAH ALAM, April 21 — The Selangor government is exploring a potential entry into the financial sector through the acquisition of a stake in a local bank.
Menteri Besar Dato' Seri Amirudin Shari was quoted as saying by The Edge that the plan is part of a broader effort to diversify its revenue streams beyond its current dependence on land-related income.
He said such a step is crucial to pave the way for more sustainable and resilient financial planning in the longer term.
"We are looking to further diversify into the financial sector and discussions are underway, in line with Bank Negara Malaysia's (BNM) strict guidelines for the state government to explore a stake in an existing financial institution, either directly or through a state-owned company," he said in the report.
"I believe this is vital to Selangor's sustainability in the medium to long term, especially as land becomes more finite.
"This approach will allow the state to reduce reliance on land premiums through strategic investments, which will provide sustainable revenue, allowing us to channel these returns through longer-term economic policies while reaffirming our commitment to improving Selangorians' quality of life."
In a report published by The Edge today, it said that the Selangor government is considering an investment in one of three banks, namely MBSB Bank Bhd, Alliance Bank Malaysia Bhd and AMMB Holdings Bhd (AmBank Group).
If the plan comes to fruition, this would follow Sarawak's move to enter the financial sector — last November, the East Malaysia state became the largest shareholder of Affin Bank after acquiring a 31.25 per cent state in the institution.
Sarawak Premier Tan Sri Abang Johari Tun Openg had said last September that the decision to invest in the bank was motivated by the need to create a financial platform and synergy with a competent bank to elevate the state's economic potential.
The article quoted sources as saying that discussions for Selangor to invest in a bank have already begun and that the state has been in talks with MBSB since late last year.
MBSB is the only bank in Malaysia headquartered in Selangor.
The report quoted one source as saying that Selangor is eyeing at least a 5 per cent stake in a bank, which requires prior approval from BNM before discussions can begin.
Meanwhile, another source said the state is looking at developing and launching a super app this year that would tie together various existing functions and applications, including SELangkah, which focuses on healthcare and welfare, and e-wallet and digital payment platform Wavpay.
The Edge also reported that AMMB founder Tan Sri Azman Hashim was considering selling his 11.83 per cent stake in the banking group, although this has not been confirmed.
