Malaysian options open for ANZ
ANZ may be in a position to better scope out its investment options in Malaysia with the release of the latter's latest 10-year "blueprint" for the development of the country's financial services sector.Bank Negara Malaysia released its Financial Sector Blueprint for the decade to 2020 yesterday, a document developed in collaboration with the central government.This blueprint projects a rise in the contribution of the financial sector to gross domestic product to more than six per cent by 2020 - up from 4.3 per cent in 2010.To cater to the increase in capital required to support this growth, the Government plans to allow more foreign banks and insurance companies to operate in Malaysia.There is no explicit reference in the document to a review of the present 30 per cent limit on foreign ownership of commercial banks. However, the Government made clear earlier this year that it supports a lift in this cap to 49 per cent, subject to the views of Bank Negara, a policy seen as accommodating ANZ's aspirations to lift its stake in AMMB.The bank holds a 24 per cent stake in AMMB Holdings, which was valued at around A$1.1 billion in the bank's September 2011 accounts. The AMMB position accounts for around a quarter of ANZ's investments in Asia. AMMB is the fifth largest banking group in MalaysiaThe blueprint calls for "gradually removing restrictions" that prevent foreign banks from providing many core services to business such as electronic payment processing. Foreign-owned banks may be allowed to open more branches "in the medium term".