COMMUNITY EMPOWERMENT Focus Areas Resources Allocated Initiatives Performance and Achievements Strengthening the resilience of local communities, including microentrepreneurs and marginalised groups, promotes economic participation and upward mobility, driving sustainable growth while enhancing our leadership in social finance. • Empower marginalised communities by fostering entrepreneurship and improving access to financial services for the underbanked. • Drive social impact through resource mobilisation, including charitable initiatives and innovative crowdfunding efforts. • Develop social impact initiatives that prioritise financial literacy, community support, and ethical practices to promote sustainable growth and inclusion. • Financial Capital: Provide accessible Shariahcompliant microfinancing and financial literacy initiatives to support small businesses and underserved groups. • Social and Relationship Capital: Strengthen community partnerships and collaboration to drive inclusive growth and address local needs effectively, especially via education. • Piloted an alternative credit assessment with psychometric tailored for underbanked microentrepreneurs to enhance our credit evaluation process. • Enhanced the iTEKAD Maju Microfinance Programme to comply with the updated requirements of BNM’s MEF Fund. • Allocated RM50,000 to the multi-bank iTEKAD implementation model through AIBIM MyZakat, with Bank Islam serving as Deputy Chairman of the AIBIM MyZakat working group of 10 member banks. • Partnered with INCEIF University to promote the ESG-i Assessment Framework for iTEKAD entrepreneurs, integrating Maqasid Shariah and offering practical tools for MSMEs to transition to a LCCR economy, with implementation planned for 2025. • Prioritised support for underserved students, especially orphans, by partnering with KMI Healthcare Holdings Sdn Bhd to offer Sadaqa House Orphan Fund (SHOF) nursing scholarship recipients at University College Bestari practical training and job opportunities. • Strengthened our collaboration with Lembaga Zakat Negeri Kedah (LZNK) through the SakeenaHOPe in Kedah, supporting salaried asnaf in achieving home ownership. • Supported civil society organisations (CSOs) in funding sustainability and social impact by aiding BJCK in transforming their restaurant into Restoran Sup Kawah Hitam, with advisory help from Broku Sdn Bhd. • Disbursed RM12.3 million in blended finance, exceeding FY2024 target. • Received the Best Islamic Microfinance Product of the Year award from the Global Islamic Finance Awards. • Conducted Microentrepreneur Development Training Programmes to support the growth and success of entrepreneurs. • Created 350 upward mobility opportunities for both Grade 1 and Grade 2, exceeding FY2024 target. • Launched six ‘Hab Usahawan iTEKAD’ to support state-level iTEKAD entrepreneurship development by partnering with selected universities as hosts, leveraging the Local Community Development (LCD) model. • Established partnerships with various funders, including GLCs and other organisations, to prepare beneficiaries to be eligible for the iTEKAD microfinance programme. • Partnered with a range of organisations, including NGOs and banking industry associations, to provide working capital and business support through coaching and monitoring services, collectively termed our “funding escalator” services. • Allocated RM1.44 million in funding escalator disbursements. • Grew Sadaqa House’s income to RM22.2 million, exceeding FY2024 target. • Raised RM2.4 million for SHOF with RM1.4 million disbursed to directly benefit orphans and institutions through education, infrastructure, improvement, and other initiatives. • Approved 44 SakeenaHOPe (PF Asnaf) applications, exceeding FY2024 target, with eight houses completed. • Supported 949 social finance beneficiaries, exceeding FY2024 target. Priorities for 2025 • Propagate financial inclusion by enhancing access to Islamic banking services for underserved communities through mobile banking and digital solutions. • Provide Shariah-compliant microfinancing to empower small businesses and underserved communities. • Enhance zakat management and distribution to maximise poverty alleviation and welfare. • Offer training in financial literacy, entrepreneurship, and sustainability for long-term self-reliance. • Establish the National Waqf Investment Fund. • Enhance iTEKAD applicants’ comprehension through the Celik iTEKAD programme. • Collaborate with selected universities for the Hab Usahawan iTEKAD initiative. • Strive to champion effective wealth circulation through social finance, impacting the livelihoods of more than 3,000 beneficiaries. Headline KPIs Item/Year 2020 2021 2022 2023 2024 Investment made in community empowerment (RM million) 1.5 3.6 5.1 12.8 19.5 Number of beneficiaries 515 4,905 10,545 1,598 1,434 Short-to-Medium-Term Priorities • Strengthen our social finance initiatives to improve wealth circulation, impacting the livelihoods of over 3,000 beneficiaries. • Focus on creating upward mobility for iTEKAD microentrepreneurs through targeted support and capacity-building initiatives. Long-Term Priorities • Scale and enhance the C3e to create a broad, sustainable network for empowering communities and advancing social finance. • Expand into new market sectors and explore new asset classes and SRI funds to diversify our investment opportunities. Capitals: Key Risks: FC SR SNC RCR SR Material Matters: Stakeholders: SRF CESF LC 71 w w w . b a n k i s l a m. c o m 01 02 03 04 MD&A – STRATEGIC REVIEW 05 06 07 08 09
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