DBS is reworking its push into Malaysia with a new plan to pursue a 30 percent stake in Alliance Bank, according to people familiar with the process who spoke to Bloomberg.

The lender had initially looked at taking a stake of up to 49 percent, but that proposal did not move forward with Bank Negara Malaysia.

The earlier plan exceeded the country’s usual ownership limit for financial institutions, which generally caps foreign or corporate shareholders at about 30 percent, and would have required special approval.

By shifting to a stake size that fits within the country’s standard threshold, DBS is aiming for a clearer regulatory path.

If the application progresses, the bank would then be able to open discussions with Alliance Bank’s controlling shareholder Vertical Theme.

The holding company counts Temasek as its largest external backer through Duxton Investment and Development. Temasek also owns a substantial interest in DBS.

The firms involved have not commented. Alliance Bank has said it has not been informed of any approach, and Bank Negara Malaysia has yet to respond publicly.

Gaining a presence in Malaysia would bring DBS in line with its Singapore peers.

OCBC and UOB already operate in the country, while DBS has focused its expansion on other Asian markets in recent years.

The Singapore-based group remains the region’s largest bank measured by assets.

Alliance Bank’s shares have slipped about 6 percent this year in Kuala Lumpur, compared with a decline of less than 2 percent in the city’s benchmark index.

The bank has a market value of roughly US$1.9 billion.

Featured image: Edited by Fintech News Singapore, based on image by DBS