BIMB Integrated Annual Report 2019

independent assessment of our risk and exposure to bribery as well as the gaps and strengths in the embedded controls. The Bank also conducted realignment of Anti Money Laundering/Combating the Financing of Terrorism (“AML/CFT”) policy and procedures with the revised BNM’s AML policy, and validate the effectiveness of the controls implemented at the various business units. Takaful Malaysia rationalised its investment policies and continued to tactically implement prudent and vigilant investment strategies to manage risks amid the challenging market environment. In consultation with the Board Investment Committee, asset allocation was reviewed and positioned strategically towards achieving the long-term returns while minimising volatility and value at risks of the managed portfolios. We focused on asset classes that provided a stable and predictable recurring income, namely Sukuk and money market instruments. In line with our strategic asset allocation, our equity exposure remained low throughout the year under review, limiting the impact of equity market volatility. These efforts were taken to protect and augment the overall investment performance. As a result of prudent strategy in addressing the market challenges, 2019 saw an improvement in Takaful Malaysia’s investment income underpinned by better performance from Sukuk portfolios capitalising on the low interest rate environment to realise gains from existing holdings. While there remained a certain amount of volatility in equity portfolio performances as a result of the overall market conditions, this was cushioned by low asset allocation in equity and the performances of other asset classes. Deposit instruments also continued to register higher income reflective of the higher asset allocation into these asset classes as Takaful Malaysia remained defensive considering the uncertainties in the market. Part of understanding and adopting prudent risks measures is having good insights to the various sectors and its potential when investing. For the year in review, BIMB Securities undertook to conduct various company and site visits to public listed companies (“PLCs”) to understand their strategies and potential which are reflected in their advisory and research services. Digital Transformation We look to leverage on digital technology as an enabler for our subsidiaries to better serve our customers and our community. Digitalisation allows the Group to drive priorities of financial inclusion for inclusive growth. Our subsidiaries remain committed to expand the omni-channel experience – from the physical to digital – in a progressive manner to meet the diverse needs and wants of all our stakeholders. In this regard, Bank Islam was recognised for its efforts to grow electronics payment (“e-payment”) in the country. Bank Islam received three awards at the Malaysian e-Payments Excellence Awards (“MEPA”) 2019 in the categories of Best Customer Experience (“Direct Debit”) , Best Direct Debit Bank and Best FPX Bank . These wins underscore our continuous efforts to be at the forefront of digital banking in Malaysia. People as the Cornerstone of Our Progress A great company starts, sustains and attains success with great people. It has only been through the commitment and dedication of our people that we have been able to drive our business forward to build long-term value for our shareholders. This is in line with one of our five Key Priorities which is Talent Enrichment. Across our three subsidiaries, we work to foster an environment where our employees can feel fully engaged and valued, and know that what they do, in turn, creates value for the subsidiaries and the Group. Our efforts have created an engaged and motivated workforce. We will continue to develop efforts that build on the strengths of our people, as we believe that we can only grow when our people grow. • Ranked in 14 th place among the Top 20 companies in Malaysia’s 100 Leading Graduate Employers Awards 2019 • A score of 70% for Employee Engagement Survey • Introduction of TAAT (Think Customer, Act with Integrity, Advance Beyond, Take Charge) core values for employees • Establishment of Bank Islam’s Integrity Plan • Employer Branding Outreach programme • Selected for the second time as recipient of ‘ HR Asia Best Companies to Work for in Asia Award 2019 ’ • Voted for the second time in a row as the Top 5 for the ‘Graduate Choice Award – Best Employer Brand 2019’ under the insurance industry category • Inter division staff engagement programmes to boost productivity and efficiency • Elevating employees’ knowledge and upscaling them to be multi-skilled • Continuous training for employees under Bumiputra Training Fund (“BTF”) allocation provided by Securities Industry Development Corporation (“SIDC”) • Conducted in-house technical analysis and fundamental analysis workshops BANK ISLAM TAKAFUL MALAYSIA BIMB SECURITIES 112 Integrated Annual Report 2019 Group Overview Sustaining The Group Management Discussion & Analysis Group Governance MANAGEMENT DISCUSSION & ANALYSIS REAPING RESULTS OF OUR GROWTH STRATEGY