KUALA LUMPUR (Nov 5): Great Eastern Holdings Ltd (GEH) said today it is in discussions with relevant authorities in Malaysia on possible options relating to the satisfaction by Great Eastern Life Assurance (M) Bhd (GELM) of prevailing foreign ownership requirements applicable to insurance companies in Malaysia. 

Such options include GELM making certain contribution to a special insurance development trust fund, which may take the form of a B40 Health Protection Fund, GEH told Singapore Exchange Ltd.

"GEH refers to its announcement dated 21 September 2017 in relation to GEH’s stakes in its Malaysian operations; and references to GEH made by the minister of finance of Malaysia in his budget speech on 2 November 2018, where the minister announced that GELM will contribute initial seed funding of RM2 billion to a B40 Health Protection Fund.

"The discussions on the options are on-going at this stage and details have yet to be finalised. Based on the options currently being considered, GEH believes there will not be a material impact on the earnings of GELM and GEH," GEH said.

GEH advised shareholders to refrain from taking any action, which may be prejudicial to their interests in connection with the matter and exercise caution when dealing in GEH shares.

"In the event that shareholders wish to deal in the shares of GEH, they should seek their own professional advice and consult with their own stockbrokers," GEH said.