Malaysia may lift bank ownership cap

Malaysia may lift a 30 percent cap on foreign shareholdings in commercial banks when the country's new premier unveils measures to boost the finance industry next week, an influential news website reported.

New Prime Minister Najib Razak, who took office this month is to announce the new measures on financial deregulation next week as part of an economic liberalisation package.

Citing unidentified sources, the Malaysian Insider (www.themalaysianinsider.com) said on Thursday that the government was considering lifting foreign ownership ceiling.

Finance ministry officials could not be immediately contacted for comment.

Under the current ruling, foreigners cannot own more than 30 percent of Malaysian banks. The shareholding restriction for investment banks and Islamic banks is 49 percent.

Malayan banking , CIMB Bank  and Public Bank  are the top three banks in the country listed on the local bourse.

Foreign banks already own some stakes in the Malaysian banking sector and ANZ  owns part of Ambank , Bank of East Asia  has a stake in Affin Holdings while private equity firm Primus Pacific has a stake in Affin EON Capital .

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

Under the new rules, for some sectors, foreign investors would no longer be required to give a 30 percent equity stake to Malays, the so-called bumiputra policy, a rule that has been criticised for stymying investment.

Najib has pledged to move Malaysia away from its dependence on electronics exports and commodities, demand for which has been hit hard by the global recession.

KUALA LUMPUR, April 23 (Reuters)