Malaysia eases foreign investment rules

ANZ may be able to buy more of AMMB in Malaysia if the country's government eases restrictions on foreign investment.

Reuters followed up a report by website Malaysian Insider on Thursday that said the government was considering lifting foreign ownership ceilings.

Foreign banks at present cannot own more than 30 percent of Malaysian banks.

ANZ owns about 20 per cent of AMMB, an investment first made in late 2007.

The government on Wednesday announced a first slice of promised economic reforms, opening up some service sectors to unrestricted foreign investment, Reuters reported.

Under the new rules, for some sectors, foreign investors would no longer be required to give a 30 per cent equity stake to Malays, the so-called bumiputra policy. ANZ last year had to sell new equity under this policy.