DBS revises Malaysia bank stake plan as regulatory limits shape strategy
Singapore’s DBS Group has adjusted its expansion move in Malaysia by submitting a fresh request to acquire a smaller stake in Alliance Bank Malaysia.
The filing, made after the first application was not cleared, marks a shift in how Southeast Asia’s largest bank navigates ownership rules that shape foreign participation in Malaysia’s financial sector.
The development, as reported by Bloomberg, has drawn attention because the request change could influence how quickly DBS enters a market where other Singapore banks already operate.
The update was reported on 24 November and reflects ongoing regulatory requirements rather than a shift in long-term interest.
The shift also shows DBS positioning itself carefully as regional banking competition grows.
DBS withdrew its initial request to begin talks to buy as much as 49% of Alliance Bank and replaced it with one seeking approval for up to 30%.
The first application could not progress because Malaysia typically caps acquisitions in local financial institutions at 30%, and purchases above that threshold require a waiver that is seldom granted.
Regulatory path
The revised proposal aligns with Bank Negara Malaysia’s standard ceiling for ownership in the sector.
This version has a higher chance of moving forward because it fits within existing rules and avoids the need for exemption.
The change also means DBS can continue preparing for possible engagement with Alliance Bank’s major shareholder once regulatory clearance is secured.
The updated filing highlights how large institutions often adjust their strategy to remain compliant with national investment limits.
Alliance has said it was not aware of the development and public disclosures from the Malaysian central bank, DBS, and Vertical Theme offered no additional detail on the status of the revised stake proposal at the time.
Shareholder link
The shareholder DBS aims to approach is Vertical Theme Sdn., which is backed by Singapore state investor Temasek Holdings through Duxton Investment and Development.
Temasek owns 49% of Vertical Theme and holds about 28.3% of DBS.
The revised request creates a clearer path for DBS to open discussions with Vertical Theme once the approval stage is complete.
A potential plan involving Alliance also draws interest because it would give DBS a route into Malaysia’s banking landscape.
The country already hosts operations of Oversea-Chinese Banking Corporation and United Overseas Bank, giving those Singapore rivals a foothold in a market that plays a key role in regional financial links.
Market setting
Alliance’s shares have declined about 6% in Kuala Lumpur this year.
The broader benchmark has fallen less than 2% in the same period. The bank’s current market value stands at roughly 7.7 billion ringgit, or about 1.9 billion dollars.
These figures form part of the backdrop to DBS’s revised move, which signals its continued interest in building presence in a tightly regulated but strategically important neighbouring market.
Investors are monitoring developments closely as cross-border expansion continues to shape regional banking activity.
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