Foreign insurers in Malaysia resisting divestment: Sources

AIA, AIG baulk at complying with directive after US intervention

Bank Negara Malaysia in April last year laid down a set of deadlines that called on foreign insurance companies to divest a minimum of 30 per cent interest in their operations to local investors.
Bank Negara Malaysia in April last year laid down a set of deadlines that called on foreign insurance companies to divest a minimum of 30 per cent interest in their operations to local investors. PHOTO: THE STAR/ASIA NEWS NETWORK

Two major foreign insurance companies - AIA, the insurance giant listed in Hong Kong, and American International Group (AIG) - are baulking at complying with a Malaysian central bank directive on ownership following intervention by the US government, said industry executives and Malaysian government officials.

Bank Negara Malaysia (BNM) in April last year laid down a set of deadlines that called on foreign insurance companies to divest a minimum of 30 per cent interest in their operations to local investors.

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A version of this article appeared in the print edition of The Straits Times on March 26, 2018, with the headline 'Foreign insurers in Malaysia resisting divestment: Sources'. Print Edition | Subscribe