KUALA LUMPUR: The federal government is reported to have reopened discussions to do away with the requirement that foreign insurers reduce their shareholdings in their domestic operations.
According to the Financial Times on Wednesday, the government had reopened talks to allow foreign insurance companies to maintain full ownership of domestic insurers.
Last year, global insurers with wholly-owned insurance businesses such as AIA and Great Eastern were required to divest a 30% stake to local investors.
FT reported several of those foreign-based groups were planning to take on joint venture partners or spin off parts of their business in an initial public offering to meet the requirements.
Prudential was preparing a US$700m IPO in Malaysia.
The original deadline was June 30.
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