AFFIN Group and Baiduri Bank, Brunei Darussalam’s largest conventional bank, have signed a Memorandum of Understanding to deepen cross-border banking cooperation between Malaysia and Brunei. The agreement, signed this week, combines AFFIN’s Malaysian network with Baiduri’s domestic Brunei franchise as bilateral trade between the two countries continues to grow.
Key Facts At A Glance
- AFFIN Group and Baiduri Bank signed a Memorandum of Understanding to expand cross-border banking cooperation
- The MoU covers commercial and retail banking, financing, trade finance, treasury, investment banking, stockbroking, asset management, and unit trusts
- Malaysia-Brunei bilateral trade reached RM5.8 billion (approximately US$1.3 billion) in 2025
- Bilateral trade reached RM2.4 billion (approximately US$540 million) in the first half of 2026
- Baiduri Bank is Brunei’s largest conventional bank by assets
- The MoU was signed by AFFIN Group President and Group CEO Datuk Wan Razly Abdullah Wan Ali and Baiduri Bank CEO Ti Eng Hui
- Signing was witnessed by Ak Nor Muhammad Nizam Pg Haji Tengah, Head of Institutional Banking at Baiduri Bank, and Hasli bin Hashim, Chairman of Affin Hwang Investment Bank Berhad
A Broader Financial Corridor Between Two Markets
The deal creates what the two banks describe as a more direct financial corridor for businesses operating in Malaysia and Brunei. Under the MoU, AFFIN Group and Baiduri Bank will explore collaboration across a wide range of business lines, including commercial and retail banking, financing, trade finance, treasury operations, investment banking, stockbroking, asset management, and unit trusts. The scope suggests the partnership is intended to extend well beyond simple correspondent banking arrangements into shared product development and referral pipelines across both markets.
Baiduri Bank CEO Ti Eng Hui framed the agreement as a natural extension of existing ties between the two countries. “Brunei Darussalam and Malaysia already share deep economic, business and people-to-people ties,” Ti said, adding that the two banks are “well placed to strengthen those connections and create greater opportunities for businesses and customers in both markets.”
Trade Growth Underpins The Timing
The partnership comes as bilateral trade between Malaysia and Brunei continues to expand, reaching RM5.8 billion in 2025 and RM2.4 billion in the first half of 2026 alone. That pace suggests full-year 2026 trade volume could approach or exceed the prior year’s total, giving both banks a commercial rationale for building out dedicated cross-border banking infrastructure rather than relying on ad hoc arrangements.
Baiduri Bank has been building out its regional presence beyond Brunei’s borders in recent periods, including the 2025 opening of a representative office in Singapore aimed at supporting Bruneian firms expanding into Southeast Asia. The AFFIN partnership extends that regional strategy specifically into the Malaysian market, where AFFIN brings an established domestic banking network alongside investment banking, Islamic banking, and asset management capabilities through its subsidiaries.