Page 24 - Bank-Muamalat-Annual-Report-2021

22 BANK MUAMALAT MALAYSIA BERHAD
ABOUT US OUR LEADERSHIP OUR STRATEGY OUR PERFORMANCE

CHAIRMAN'S
STATEMENT

Committing to Sustainability

A significant step Besides the expansion into the digital arena, the Bank is building stakeholders’
confidence and sustainable value through continued commitment to the
up has been the adoption of Value-Based Intermediation (“VBI”) initiatives which has led to a
implementation of growing focus on green financing and social finance.
the Integrity and A total of RM11,045 million or 53% of the Bank's total outstanding financing in

Governance Unit as FY2021 was recognised as having a direct impact on the economy, society and
the environment.
a dedicated function
With the current changing landscape that focuses further on climate change,
to oversee the we are also looking at the adoption of Climate Change and Principle-based
Bank’s overall anti- Taxonomy ("CCPT") as part of the Bank's role to manage customers' transition
towards more sustainable practices in their business operations.
corruption efforts
and enhance integrity Another innovative breakthrough on the social finance front was the launch of
iTEKAD Mawaddah – an equity based investment that incorporates the Shariah
as well as promoting innovation of two-tier Mudarabah, the first of its kind in Malaysia. Through
good workplace iTEKAD Mawaddah, the Bank will source funds from investors to invest in
businesses owned by B40 (bottom 40% of the Malaysian household income
conduct. category) individuals and micro-entrepreneurs. Targeted industries for this
investment include food and beverage (“F&B”), agriculture and the gig economy.

Upholding Governance, Integrity and Risk Management

At the Board of Directors’ level, we continue to uphold strong corporate
governance policies and practices to promote corporate integrity, accountability
and transparency. Our efforts are guided by Islamic Financial Services
Act 2013, Companies Act 2016 and Policy Document on Shariah Governance.
2021 New Launches:
Online Deposit The Board’s commitment to good governance is reflected in the diversity of
age and experience of our members as we strive to bring on board directors
Account Application with the right experience and fit with the Board’s needs. We uphold women
(“ODA”) representation at Board level and, in line with Bank Negara Malaysia’s
guidelines, a majority of five out of eight of our board members are independent.
In 2021, the Board continued to closely monitor our risks, by conducting risk
iTEKAD Mawaddah – assessment on a more continuous basis and adjusting risk appetite, changing
a Shariah innovation which is an equity based
investment and the first of its kind in Malaysia controls and strategising plans to address vulnerabilities in markets such as
impacts of technological disruption, changes in customer sentiments and
evolving regulatory requirements. We reviewed the risk assessment processes
and risk appetite considerations in addressing the shifting market and
regulatory developments. Enhancements to the Enterprise Risk Management
(“ERM”) Framework and product development processes related to
outsourcing and other relevant regulatory requirement were also implemented
during the year.
We also noted the new update in the Malaysian Code of Corporate Governance
(“MCCG”) that highlighted the integration of sustainability considerations into
strategies were prudently aligned with our commitment to strengthen our
sustainability.