Page 76 - Full Book_24.4.2021

MANAGEMENT
DISCUSSION & ANAlYSIS

Expanding Social Finance through Sadaqa
House

Bank Islam continues to intensify its focus
on expanding the potential of Islamic social
financial instruments such as zakat, waqf
and sadaqah to help the underprivileged and
INTEGRATED ANNUAL REPORT 2020 them to be independent and sustainable in
the community who are severely affected by
the uncertain economic situation, to enable

the long run.
Through the establishment of Sadaqa House,
Bank Islam’s impacts and success stories in
social finance has been growing. In 2018,
RM1.07 million (of which RM500,000 is
the seed from Bank Islam) was collected for
72 disbursement to selected projects that highly INCLUSIVE
impacted the beneficiaries positively, and in
2019, a further RM425,000 was collected. GROWTH
Alhamdulillah in 2020, we managed to
BIMB HOLDINGS BERHAD 199701008362 (423858-X) such as BangKIT Microfinance, which was Offered under the al-Qard contract (interest-free), BangKIT Microfinance provides
collect RM5.35 million. Thus the Bank is
now able to start funding in-house projects

financing as low as RM500 to RM3,000 for start-up businesses and RM3,000 up to
established on 25 November 2020 to finance
RM20,000 for business expansion with a repayment period of between six months to
selected micro-entrepreneurs who require
three years. Customers benefitted from this facility will be provided with structured
working capital and/or funding for capital
entrepreneurship training to ensure their business sustainability. Sadaqa House
expenditure.
funds this microfinance facility from donations made by corporate institutions and
The launch of this facility was the main
allocation, Bank Islam targets more than 200 micro-entrepreneurs to benefit from
highlight of Bank Islam’s Social Finance
Month throughout November 2020, which
this facility.
was organised to provide public awareness the public. As a start, RM2 million is allocated for BangKIT Microfinance. From this
on the importance and function of Islamic To expand the potential of Islamic crowdfunding further, Sadaqa House developed
Social Finance in ensuring the socio- and introduced its new official portal (www.sadaqahouse.com.my) during the year
economic wellbeing of the country, especially for the convenience of its potential contributors. Sadaqa House has also published
within the challenging environment caused its inaugural performance report for general reference on the application of strict
by the COVID-19 pandemic. Funded by governance in managing the contributions received, results and impact of its
Sadaqa House, BangKIT Microfinance is achievements as well as its long-term direction.
the first-of-its-kind in Malaysia, designed to Growing focus on microfinancing
assist selected unbanked and underbanked
micro-entrepreneurs to obtain capital Bank Islam has launched the iTEKAD microfinancing programme, a social finance
start-up business or business expansion initiative to support sustainable income generation and financial resilience of
and, subsequently build a credit record to asnaf and B40-owned microenterprises in the current challenging landscape.
qualify them for other Bank Islam financing The introduction of the programme is in line with the government’s Prihatin Rakyat
solutions in the future, thus initiating Economic Stimulus Package announcement on 27 March 2020 to facilitate funding
win-win benefits with the Bank. and provide support for micro-entrepreneurs and those impacted by the loss of
income due to COVID-19.