SMEs to benefit as Affin Bank expands footprint in Sarawak with new branch
Uggah signs the plaque during the launch of Affin Bank iCOM Square Branch while Muhammad Abdullah (third left), Agil (second left), Wan Razly (fourth left) and others look on. – Photo by Roystein Emmor
KUCHING (April 27): Small and medium-sized enterprises (SMEs) are set to benefit from stronger financial support with the launch of Affin Bank Berhad's latest branch at iCOM Square here today.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the opening of the new branch signals not only the expansion of Affin's footprint in Sarawak but also the bank's commitment to empowering local businesses to thrive in a rapidly evolving economy.
'SMEs are not just contributors to the GDP – they are the heartbeat of Sarawak's economy. They create jobs, power local innovation, and serve as the primary engine of inclusive growth.
'To unlock their full potential, we must continue building an environment where local enterprises can thrive, through better access to financing, business support services, and digital capabilities,' he said in his speech which was delivered by Deputy Premier Datuk Amar Douglas Uggah Embas at the official launch of Affin iCOM Square Branch here today.
Abang Johari commended Affin Bank for playing a key role in this ecosystem.
'From facilitating access to working capital and trade finance, to enabling operational efficiency and digitalisation, Affin has taken deliberate steps to meet the evolving needs of entrepreneurs in Sarawak.
'These efforts go beyond products. They reflect Affin's commitment to building real value by empowering local businesses to compete, scale, and lead,' he said.
The Premier emphasised that meaningful development must begin with access to capital, financial services, and tools that enable entrepreneurship and upward mobility.
'For our rural communities, small businesses, and youth stepping into the digital economy, banking must not only be accessible but empowering as well.
'With Affin's comprehensive range of banking products and services, Sarawak is paving the way for a more financially inclusive society where opportunity reaches all,' he said.
He also said that a robust financial system is essential for a thriving economy.
'Affin plays a crucial role in this transformation. Its integrated structure combining Affin Bank, Affin Islamic, and Affin Hwang Investment Bank provides a seamless platform for individuals, businesses, and investors alike.'
With plans to expand its branch network in Sarawak from eight to 14 by the end of the year, Affin is making strides in bringing financial services closer to communities across the state, ensuring no one is left behind, he added.
In highlighting that Sarawak's major projects such as the Tanjung Embang deep-sea port, the new international airport, and the Borneo Renewable Energy Corridor would require financial models rooted in long-term value creation, Abang Johari said Affin's ability to provide financial solutions and support are key to bridging that vision with the capital to make it a reality.
He stressed that banking must be responsive, locally attuned, and digitally enabled to meet the demands of a modern, connected Sarawak.
'The launch of this branch reflects our collective journey — a journey toward a more financially inclusive, economically competitive, and socially resilient Sarawak,' he said.
Also present were Deputy State Secretary (Economic Planning and Development) Dato Sri Dr Muhammad Abdullah Zaidel, Affin Bank Berhad chairman Dato Agil Natt, Affin Bank president and group chief executive officer Datuk Wan Razly Abdullah.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Focus Malaysia
8 hours ago
- Focus Malaysia
Banking sector resilient with provision buffers ahead of global headwinds
THE quarter one 2025 (1Q25) reporting season came in broadly within expectations. Seven of the eight banks under Hong Leong Investment Bank's coverage (Affin, Alliance, AMMB, CIMB, Maybank, Public Bank, and RHB) delivered results that tracked closely with their forecasts. The lone exception was BIMB, which missed due to higher-than-anticipated credit costs. 'Stripping out non-recurring items from 4Q24, core earnings dipped 3.4% quarter-on-quarter (qoq),' said Hong Leong Investment Bank (HLIB). This came despite a 3.6% rise in pre-impairment operating profit (PIOP), which was supported by positive JAWs (+0.3ppt) and robust non-interest income growth (NOII; +7%). The drag came from higher loan loss provisions (+11.6%) and a weaker contribution from associates (-27.3%). Net Interest Margins (NIM)s were broadly stable, with Affin standing out positively (+7 basis points). Sector core earnings rose 4.1%, underpinned by lower loan loss provisions (-22.9%) and stronger associate contributions (+31.2%). PIOP grew modestly by 1.1%, with net interest income (NII) up +3.4%, partially offset by a dip in NOII (-1.3%). Cost control remained commendable, with operating expenses rising 2.9%. Top performers were Affin (+12.6%) and Alliance (+11.1%), with both delivering robust NII growth, alongside effective cost and provision management, respectively. Both loan and deposit growth moderated, reflecting festive seasonality and FX volatility. Banks continued to pull back from expensive deposit campaigns to protect NIMs. Meanwhile, Alliance was the only bank to post double-digit loan and deposit growth. Asset quality remained firm, with the sector gross impaired loan (GIL) ratio ticking up 1 basis point QoQ to 1.38%. 'Heading into 2Q25, we expect NIMs in 2Q25 to hold up reasonably well sequentially,' said HLIB. HLIB sees three key forces at play: fresh liquidity from the recent SRR cut, easing deposit competition, and a sector-wide pivot to more disciplined loan expansion and funding strategies. This proactive stance is already visible, with banks cutting promotional/campaign FD rates by 5-15 basis points in May, ahead of a potential overnight policy rate cut, though the full margin benefit may only materialize in the second half of 2025. Beyond margins, the bedrock of asset quality is expected to remain solid, supported by resilient domestic economic conditions and minimal US trade exposure. 'While acknowledging risks from the secondary impacts of trade uncertainty, we believe any potential weakness will be well-contained,' said HLIB. The sector is significantly more resilient than in previous downturns, primarily due to the formidable provision buffers accumulated over the past five years. This 'fortress of provisions' provides a robust defence, capable of absorbing any stress and cushioning the GIL ratio, which currently stands near historical lows. 'We reiterate our overweight stance on the Malaysian banking sector, viewing the KLFIN Index's 7% year to date decline as a strategic opportunity to build positions ahead of an anticipated market recovery in the latter half of 2025,' said HLIB. —June 9, 2025 Main image: European Commission
Malay Mail
a day ago
- Malay Mail
New circular agriculture plan aims to tackle Sarawak's sky-high beef costs, says Abang Johari
GEDONG, June 8 — The state government is actively developing a new approach to reduce dependency on imported cattle and feed by introducing a sustainable circular agriculture model, said Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Openg. This initiative aims to address the high cost of beef in the state, which has been reported as among the most expensive in the country, reaching up to RM95 per kilogramme (kg) Abang Johari attributed the current high prices primarily to Sarawak's heavy dependence on imported cattle and feed, particularly from Australia. 'We currently import cattle, including those we rear in Australia under SEDC (Sarawak Economic Development Corporation). 'However, the export tax imposed by Australia is quite high and payments are made in Australian dollars, which drives up the cost,' he told reporters after attending the Ibadah Korban Ceremony at the Al-Kawthar Mosque here today. Abang Johari said the new strategy involves implementing feedlot farming systems instead of traditional open grazing, allowing cattle to be reared using locally-produced feed derived from agricultural waste mixed with napier grass. This, he noted, would enhance cattle health and quality, leading to better yields. 'I have been to Lubok Antu and seen the potential of using plantation waste to produce biomass. This biomass can be converted into animal feed, which means we no longer need to import feed. 'Healthy, well-fed cattle are heavier, which means more value, whereas if the cattle are thin, no one will want to buy them,' he said. He also said that trials under this model are already being conducted through various government agencies. He said by producing animal feed locally and intensifying livestock farming under controlled conditions, the government hopes to eventually increase local beef supply and bring prices down to a more affordable level. 'We have 38 palm oil mills across the state that produce palm kernel waste. This can be used as livestock feed and even to generate bio-gas and bio-feed, contributing to a full circular economy,' he added. Abang Johari emphasised that the initiative is still in its early phase, having started two years ago. He noted that upon becoming Chief Minister six years ago, this was one of the priorities he looked into, but groundwork only began about two years ago. He expressed hope that these efforts would not only make beef more affordable but also improve incomes for local farmers, especially as Sarawak remains highly dependent on Australian beef imports. 'The long-term goal is to make our agriculture sector self-sufficient, ensuring stable supply so that demand can be met and prices controlled,' he said. A national daily had earlier reported that the average price of beef in Sarawak stands at RM64 per kg, significantly higher than in other states where prices range between RM27 and RM48 per kg. In some cases, premium cuts such as fillet can fetch prices as high as RM95 per kg, making Sarawak's beef among the most expensive in the country. — The Borneo Post
Borneo Post
a day ago
- Borneo Post
Abang Johari: Sustainable farming model key to lowering Sarawak's beef prices
Abang Johari (second right) seen participating in meat cutting during the Ibadah Korban Ceremony at the Al-Kawthar Mosque in Gedong today. – Photo by Roystein Emmor GEDONG (June 8): The state government is actively developing a new approach to reduce dependency on imported cattle and feed by introducing a sustainable circular agriculture model, said Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg. This initiative aims to address the high cost of beef in the state, which has been reported as among the most expensive in the country, reaching up to RM95 per kilogramme (kg) Abang Johari attributed the current high prices primarily to Sarawak's heavy dependence on imported cattle and feed, particularly from Australia. 'We currently import cattle, including those we rear in Australia under SEDC (Sarawak Economic Development Corporation). 'However, the export tax imposed by Australia is quite high and payments are made in Australian dollars, which drives up the cost,' he told reporters after attending the Ibadah Korban Ceremony at the Al-Kawthar Mosque here today. Abang Johari said the new strategy involves implementing feedlot farming systems instead of traditional open grazing, allowing cattle to be reared using locally-produced feed derived from agricultural waste mixed with napier grass. This, he noted, would enhance cattle health and quality, leading to better yields. 'I have been to Lubok Antu and seen the potential of using plantation waste to produce biomass. This biomass can be converted into animal feed, which means we no longer need to import feed. 'Healthy, well-fed cattle are heavier, which means more value, whereas if the cattle are thin, no one will want to buy them,' he said. He also said that trials under this model are already being conducted through various government agencies. He said by producing animal feed locally and intensifying livestock farming under controlled conditions, the government hopes to eventually increase local beef supply and bring prices down to a more affordable level. 'We have 38 palm oil mills across the state that produce palm kernel waste. This can be used as livestock feed and even to generate bio-gas and bio-feed, contributing to a full circular economy,' he added. Abang Johari emphasised that the initiative is still in its early phase, having started two years ago. He noted that upon becoming Chief Minister six years ago, this was one of the priorities he looked into, but groundwork only began about two years ago. He expressed hope that these efforts would not only make beef more affordable but also improve incomes for local farmers, especially as Sarawak remains highly dependent on Australian beef imports. 'The long-term goal is to make our agriculture sector self-sufficient, ensuring stable supply so that demand can be met and prices controlled,' he said. A national daily had earlier reported that the average price of beef in Sarawak stands at RM64 per kg, significantly higher than in other states where prices range between RM27 and RM48 per kg. In some cases, premium cuts such as fillet can fetch prices as high as RM95 per kg, making Sarawak's beef among the most expensive in the country. abang johari cattle circular agriculture model lead
