Page 98 - Bank-Muamalat_Annual-Report-2023

BANK MUAMALAT MALAYSIA BERHAD

OUR PROGRESS AND
OUTPUT IN SUSTAINABILITY

What Did We Achieve?
Our efforts in responsible financing have yielded significant positive outcomes, demonstrating our commitment to sustainable
economic growth and responsible banking practices:
Economic Value: Generated RM1,784.65 million in economic value, distributed RM1,455.18 million, and retained RM329.47
million, showcasing our dedication to creating value for all stakeholders.
MSME Support: Provided substantial financial support to MSMEs, fostering economic development in local communities.
Staff Financing: Approved a total of RM6.42 million in financing to employees, incorporating responsible financing practices
to prevent excessive debt burdens.
Increased ESG Commitment: Strengthened our commitment to the ESG agenda, supporting the transition to a low carbon
economy and promoting green financing.
These achievements underscore Bank Muamalat’s role as a responsible corporate citizen, committed to promoting financial
inclusion, supporting sustainable economic growth, and ensuring ethical banking practices by fostering a more equitable
and resilient financial system.

4. FOSTERING ETHICAL AND SUSTAINABLE PARTNERSHIPS M4 Procurement Practices

Why is this Important? Governance Meetings: Monthly governance meetings
are held by the respective business units to discuss
Effective procurement practices are crucial for ensuring any issues related to outsourcing providers, ensuring
that the Bank’s operations are ethical, sustainable, and continuous oversight and accountability.
in compliance with regulatory requirements. By adopting
Regulatory Compliance: Our procurement practices are
responsible procurement practices, the Bank not only mitigates
risks associated with outsourcing and vendor relationships designed to satisfy adequate procedures under Section
but also promotes social and environmental sustainability. 17A MACC Act 2009.
This approach aligns with our commitment to ethical values Ethical Commitments: Vendors are required to sign a
and the principles of VBI, fostering long-term, mutually Vendor Code of Conduct and Declaration of Interest,
beneficial partnerships with our suppliers. reinforcing our commitment to ethical values and
principles.
What is Our Approach?
Inclusive Procurement: In line with VBI values,
Our approach to procurement is comprehensive and rooted in we consider additional values that vendors can offer,
due diligence, governance, and inclusivity. Key aspects of our such as employing people with disabilities, single
strategy include: mothers, and local vendors. We have also expanded
to include ESG criteria in our vendor selection process.
Due Diligence: The Bank conducts thorough due
diligence when onboarding new vendors, renewing
contracts, or renegotiating existing arrangements.
This includes regular testing of device provider’s
business continuity plan (BCP) and ensuring the security
of shared information. We also ensure that the staff of
service providers comply with the standards imposed by
Bank Negara Malaysia.

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