RAM Ratings affirms Sabah Development Bank's AA1 rating
SDB's commercial papers are also affirmed at P1, the highest short-term rating assigned by RAM which reflects high safety for payment of short-term financial obligations.– Photo from Sabah Development Bank website
KOTA KINABALU (June 4): RAM Rating Services Berhad (RAM) has on 4 June 2025 affirmed AA1/Stable/P1 ratings of Sabah Development Bank Berhad (SDB)'s debt instruments.
The AA1 rating indicates high safety for payment of financial obligations by SDB and the stable outlook reflects RAM's expectations that the long-term rating will be unchanged over the intermediate term.
SDB's commercial papers are also affirmed at P1, the highest short-term rating assigned by RAM which reflects high safety for payment of short-term financial obligations.
RAM is the leading and largest credit rating agency in Southeast Asia, and publishes credit ratings to give independent, forward-looking opinion about an issuer's ability to repay its financial obligations.
In RAM's report, it stated that 'The affirmation of SDB's ratings reflects our expectations of continued financial support from the Sabah state government.
'Given the state's strong track record of support and SDB's strategic role in advancing Sabah's development objectives, we assessed the Bank to have an 'almost certain' likelihood of receiving state support, in accordance with our Rating Approach for Government-Linked Entities (GLE) (October 2024).'
In RAM's assessment, which evaluates both the importance of the GLE and the strength of its relationship with the Government, 'almost certain' represents the highest category of potential outcomes.
SDB has made significant strides in its 3-Year Transformation Journey, which it embarked on in the second half of 2023 under a new Board and Management.
The bank's aggressive restructuring efforts, backed by strong support from the state government, have resulted in a substantial reduction of its bond repayment obligations from RM5 billion in July 2023 to RM3 billion as of today.
As a result of the kitchen-sinking exercise initiated in the second half of 2023, the bank's total capital ratio fell to 7.9 per cent by year-end. However, with strong support from the Sabah state government, it has since improved, reaching 19.6 per cent by the end of 2024.
Since the setup of an independent professional recovery team in September 2023, notable progress has been made in addressing the non-performing loans (NPLs).
From January 2024 to April 2025, the Bank's Board approved RM965 million in settlement proposals, in addition to the RM2 billion in pledged securities placed under receivership.
In line with the mandate from the Sabah state government, SDB is now focused on financing development projects in Sabah predominantly in the infrastructure, power and water sectors.
The State has positioned SDB as the lead lender for local content in major investments in Sabah, reinforcing the Bank's strategic role in State's economic development.
Between January 2024 and April 2025, SDB approved RM1.708 billion loan applications aligned with its developmental mandate. During the same period, the bank dropped RM9.389 billion in loan applications that either fell outside its mandate or did not meet its enhanced credit standards. Sabah Development Bank Berhad
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
an hour ago
- Malay Mail
Modi opens world's highest railway bridge in Kashmir after deadly India-Pakistan clash
SRINAGAR, June 6 — Indian Prime Minister Narendra Modi arrived in Kashmir today, his first visit to the contested Himalayan region since a conflict with arch-rival Pakistan last month, and opened a strategic railway line. Modi is launching a string of projects worth billions of dollars for the divided Muslim-majority territory, the centre of bitter rivalry between India and Pakistan since their independence from British rule in 1947. Nuclear-armed India and Pakistan fought an intense four-day conflict last month, their worst standoff since 1999, before a ceasefire was agreed on May 10. His office broadcast images of Modi at a viewing point for the Chenab Bridge, a 1,315-metre-long (4,314-foot-long) steel and concrete span that connects two mountains with an arch 359 metres above the river below. 'In addition to being an extraordinary feat of architecture, the Chenab Rail Bridge will improve connectivity,' the Hindu nationalist leader said in a social media post ahead of his visit. Modi strode across the bridge waving a giant Indian flag to formally declare it open for rail traffic soon after his arrival. New Delhi calls the Chenab span the 'world's highest railway arch bridge'. While several road and pipeline bridges are higher, Guinness World Records confirmed that Chenab trumps the previous highest railway bridge, the Najiehe in China. The new 272-kilometre (169-mile) Udhampur-Srinagar-Baramulla railway, with 36 tunnels and 943 bridges, has been constructed 'aiming to transform regional mobility and driving socio-economic integration', Modi's office says. The bridge will facilitate the movement of people and goods, as well as troops, that was previously possible only via treacherous mountain roads and by air. The railway 'ensures all weather connectivity' and will 'boost spiritual tourism and create livelihood opportunities', Modi said. The railway line is expected to halve the travel time between the town of Katra in the Hindu-majority Jammu region and Srinagar, the main city in Muslim-majority Kashmir, to around three hours. More than 70 people were killed in missile, drone and artillery fire during last month's conflict. The fighting was triggered by an April 22 attack on civilians in Indian-administered Kashmir that New Delhi accused Pakistan of backing—a charge Islamabad denies. Rebel groups in Indian-run Kashmir have waged a 35-year-long insurgency demanding independence for the territory or its merger with Pakistan. — AFP
Malay Mail
an hour ago
- Malay Mail
Former Singapore DPM Teo Chee Hean is next Temasek chairman
SINGAPORE, June 6 — Former Singapore Senior Minister and Deputy Prime Minister Teo Chee Hean will become the fifth chairman of Temasek Holdings effective Oct 9, the state investment company announced Friday. Temasek said he will succeed Lim Boon Heng, who will step down from the Temasek Board after serving as chairman for 12 years. Teo will join Temasek's board of directors as deputy chairman on July 1. The company said Teo, a former political stalwart, has advanced Singapore's interests, including in critical areas such as geopolitics, cybersecurity and technology, climate action, as well as defence and security. 'In a rapidly changing world, his wealth of experience and strategic insights will bring valuable perspectives to Temasek as it continues to evolve and grow as a global investment company,' Temasek said in a statement. Teo, a core member of Singapore's third-generation political leadership team, served as Deputy Prime Minister from 2009 to 2019 and as Senior Minister from 2019 until he stepped down from politics in May 2025. Teo said he looks forward to working with the company to build on the achievements of Temasek and to chart a path for its continued success in the new global environment. 'As a key Singapore institution with a global investment footprint, Temasek understands that its long-term success requires both addressing today's risks and opportunities, and anticipating tomorrow's trends,' Teo said in the statement. Meanwhile, Temasek said that under Lim's chairmanship, its net portfolio value grew from S$223 billion in March 2014 to S$389 billion in March 2024. The company also expanded its footprint across Europe and the US, which now host six of its 13 international offices. Lim said he is pleased that Teo will guide Temasek into its next chapter of growth as a global investor. 'His remarkable depth of experience in public service, combined with his seasoned wisdom on both local and global affairs, makes him the right helmsman for Temasek as we navigate increasingly choppy waters while remaining true to our purpose to ensure every generation prospers,' he said. — Bernama
The Sun
4 hours ago
- The Sun
Introducing ATLAS: Malaysia's pioneering Shariah-compliant digital bank by Bank Muamalat
BANK Muamalat Malaysia Berhad (Bank Muamalat) today officially launched ATLAS by Bank Muamalat, Malaysia's first Islamic digital-only bank designed around faith and lifestyle alignment. Purpose-built to offer a seamless, Shariah-compliant banking experience, ATLAS combines innovative financial technology with lifestyle features tailored for the faith-conscious and tech-savvy generation. The launch marks a transformative milestone in Bank Muamalat's journey to redefine Islamic banking and positions the Bank as a pioneer in Malaysia's rapidly growing digital banking landscape. It is a key component of the Bank's five-year RISE26+ Strategy, which aims to revolutionize the financial ecosystem through innovation, operational resilience, and Shariah leadership. Designed from the ground up to meet evolving consumer expectations, ATLAS blends digital convenience with spiritual enrichment, creating a holistic financial ecosystem for the modern Muslim. A distinctively Islamic, faith-centric experience ATLAS stands apart from mainstream digital banking offerings by delivering a uniquely Islamic, faith-centered experience. The platform integrates features such as real-time Prayer Times, Daily Doa, Islamic Calendar, Zikir Counter, Kiblat Finder, as well as dedicated services for Zakat and Qurban — all thoughtfully crafted to support customers in living a values-driven and faith-aligned lifestyle. 'ATLAS was built for people — to deliver not just financial solutions, but meaningful digital experiences that align with our customers' values and daily needs. It represents the next evolution of Islamic banking: intuitive, inclusive, and deeply personal,' said Khairul Kamarudin, President and CEO of Bank Muamalat. Khairul also highlighted ATLAS's role in expanding financial inclusion by reaching underserved and unbanked communities, particularly younger Malaysians, thereby contributing to sustainable national growth. Powered by leading global technology partners Developed in partnership with global technology leaders including Mambu, Google Cloud, Backbase, HyperQB, and Kestrl, ATLAS delivers a secure, scalable, and user-centric digital banking experience. These collaborations ensure the platform adheres to world-class standards for performance, data privacy, and customer engagement. Fast onboarding and exclusive launch offers ATLAS employs a digital-first approach, enabling users to activate accounts and start transacting within minutes through instant onboarding. Soon, the platform will introduce the virtual ATLAS x Mastercard Debit Card-i, granting immediate access to secure, Shariah-compliant digital payments. To encourage early adoption, ATLAS is offering an exclusive 5% profit rate for the first three months to early users — a limited-time, high-yield Shariah-compliant savings incentive (terms and conditions apply). Innovative savings and financial planning features The platform features profit-generating savings accounts with daily earnings. Upcoming enhancements will include flexible Savings Pouch tools and personalized financial planning features designed to promote purposeful money management in alignment with spiritual values. Availability ATLAS is now available for download on the Apple App Store, with the Google Play Store version coming soon. Join the journey to better More than just a banking app, ATLAS is your digital companion for financial and spiritual growth. With innovation at its core and values at its heart, ATLAS sets a new benchmark in Islamic digital banking.
