BIMB Integrated Annual Report 2019

STRENGTHENED GOVERNANCE As we continue to operate in an increasingly evolving and interconnected regulatory and financial landscape, ensuring high governance, compliance and ethics are key to managing risks and opportunities effectively and responsibly. The Board is committed to maintaining high standards of corporate governance, business integrity, ethics, and ensuring these values and behaviours are consistent across the businesses. Led by Islamic principles and our values, we actively safeguard the interests of our stakeholders and maintain the trust that they have in us. The Group constantly reviews and enhances our Responsible Finance benchmarks to ensure positive outcomes for our stakeholders. We abide by the Malaysian Code on Corporate Governance 2017, BNM’s Corporate Governance Policy as well as other guidelines published by Bursa Malaysia Securities, the Putrajaya Committee on Government Linked-Companies High Performance and the Minority Shareholders Watchdog Group (“MSWG”). While we are not immune to the impact of the macroeconomic challenges, we rely on our prudent approach and sound risk management practices to mitigate risks. Takaful Malaysia donated a total of RM548,189 in 2019 in the form of contributions to various recipients nationwide, including education centres, charitable organisations and communities. Some of the recipients included indigenous children, needy students, paediatric patients, hospital patient welfare funds, as well as children with special needs. Knowledge-sharing events were also conducted in order to impart exposure and understanding of various topics that can contribute towards life and business skills. We participated in the Karnival Kewangan Miri organised by BNM, as well as conducted a knowledge-sharing session on the fundamentals of insurance and Takaful with students and lecturers of Kolej Vokasional Datuk Seri Mohd Zin in Melaka. Takaful Malaysia distributed Zakat contributions amounting to RM500,000 to the respective Zakat offices in the central, southern, northern, east coast and east Malaysia regions. The Zakat contributions were made to fulfil our responsibility as an Islamic financial institution and to ease those who are in need of financial assistance. In propagating knowledge on Islamic finance, BIMB Securities has been collaborating with various universities and providing the opportunities for their students to undergo internship and training at the company itself. The company organised knowledge- sharing sessions with university students, including hosting an Education Visit Programme from Universiti Kebangsaan Malaysia (“UKM”), as part of its efforts to inculcate better appreciation and knowledge of Islamic finance and Shariah equity investments. We participated and supported relevant practical educational activities organised by universities such as the Investment Challenge Day by Universiti Sains Islam Malaysia (“USIM”) and the National Seminar on Islamic Capital Market II by Universiti Teknologi Petronas (“UTP”), among others. As part of the larger BHB Group, BIMB Securities distributed its Zakat obligation via Bank Islam’s programmes to ensure a more efficient and meaningful distribution. Highlights of our corporate social responsibility activities and initiatives are available on page 82 of this report. PROGRESSING FOR THE FUTURE Malaysia’s economy is expected to face a very challenging prospect following the COVID-19 pandemic, which has already taken a serious toll on the global economy. The large scale reversal in the global equities market, massive interest rate cuts and asset purchases programme by the major central banks as well as fiscal pump priming all over the world are the clear symptoms that the global economy requires a helping hand. In this respect, BNM and the Ministry of Finance have taken swift action to prescribe stabilisation policies in order to mitigate the economic impact arising from the virus spread. These are extraordinary times, but this is when the efforts we have made to embed sustainability into every aspect of our operations, our culture and our mindset will stand us in good stead to tide us through. As a Group, we move into 2020 primed to leverage on our strengths to face the challenges ahead. Although the escalating headwinds on both the domestic and global fronts will have an impact on markets and business performance, our strong fundamentals and prudent risk management efforts see the Group to be in a well-prepared position to manage and mitigate the fallout. While we envision some level of impact on our earnings, our balance sheet is healthy, with capital, liquidity and asset quality remaining sturdy. These inherent strengths, together with strategies put in place, will help to buffer us as we navigate the impact from the contagion effect of COVID-19 and the oil price slump. BHB has pursued and implemented a sound strategy that has enabled the Group to realise long-term value creation over the past decades for the country, the economy and its people. Notwithstanding the challenging landscape that we are operating in today, the Group is rooted in its commitment to be agile in capitalising on the opportunities that lie ahead. As we transition from a holding company into independent entities focused on their respective core expertise, we believe the strong foundation that has been built over the decades will allow these companies to unlock their vast potential, pave the way for better value creation for stakeholders, and grow from strength to strength. Barring any unforeseen circumstances and given accommodative market conditions, we expect the transition to unfold smoothly, pending approvals from our regulators. It is certainly an exciting time for all of us ahead. 55 BIMB HOLDINGS BERHAD 199701008362 (423858-X) Shareholders’ Information Financial Statements Additional Information Disclosure Summary