DBS Group Eyes Malaysian Banks

DBS Group, Singapore’s largest bank, is eyeing stakes in Malaysian banks, according to a Reuters report.

This move aligns with DBS’s strategy to expand its retail banking presence in Southeast Asia, as Malaysia’s economy shows signs of growth with new infrastructure projects and rising credit demand.

One key target is a 29.1% stake in Alliance Bank Malaysia, currently held by Singapore state investor Temasek and valued at around $460 million.

DBS is also considering acquiring Kuwait Finance House’s Malaysian retail banking assets, which are valued at over $500 million and currently up for sale.

These discussions are still in the early stages, and any formal negotiations would need approval from Bank Negara Malaysia, the country’s central bank.

DBS, which has a strong presence in China, India, Indonesia, and Taiwan, is currently the only Singaporean bank without a retail arm in Malaysia, unlike OCBC and UOB.

In 2023, DBS expanded further by acquiring Citigroup’s consumer banking business in Taiwan. It had previously attempted to acquire Temasek’s stake in Alliance Bank in 2012, but regulatory hurdles halted that effort.