The Bank of East Asia has signed a memorandum of mutual understanding with AFFIN Holdings Berhad to form a strategic partnership that would boost business prospects in key Asian countries.

The two companies have been collaborating since 2007, when BEA purchased a 23.5 per cent equity in AHB. Under the MOU, they will be jointly developing business in the likes of Mainland China, Malaysia, Hong Kong, and other markets where they both operate. AHB's solid base in Malaysia will support BEA's business expansion plans into the region, while BEA's extensive network in China and Hong Kong will help AHB reach out to more clients.

"This MOU strengthens the ability of both BEA and AHB to serve customers and explore business opportunities in Greater China and Southeast Asia – two of the world’s most dynamic markets. Through this alliance, we look forward to delivering to our customers an even wider range of innovative products and services developed in co-operation with AHB," Dr David KP Li, chairman and chief executive of BEA, said in a statement.

BEA is the largest independent local bank in Hong Kong with total consolidated assets of HK$478.1 billion ($61.4 billion) as of 30 June 2010. AHB is a financial services conglomerate in Malaysia with RM1.5 billion ($477,000) in paid-up capital.