Singapore’s biggest bank has withdrawn an application to start talks to buy as much as 49% of Alliance Bank Malaysia Bhd

., replacing it with one to acquire up to 30% instead, people with knowledge of the matter said.

DBS Group Holdings Ltd. made the decision after failing to get approval from the Malaysian central bank for its initial request, which would’ve required a waiver because generally a company can only buy as much as 30% of a financial institution in the country, the people said.