KEY RISKS & CHALLENGES Risks & Challenges Mitigation Strategies Slow Economic Growth & Post-Pandemic Recovery Set up an Asset Quality Management unit that proactively monitors our customers to detect any potential distress and provide support to those already with financial assistance requirements (such as restructuring and rescheduling). Soft Property Outlook 1. Practice extra vigilance and caution towards the property development segment, with only two property development projects totalling RM32.0 million approved in 2022, compared to 11 projects totalling RM118 million in 2021. 2. Support construction companies who have obtained supply, service, and construction contracts with proper financial control mechanisms, who will be monitored closely by our dedicated unit. Volatility of the Oil & Gas (O&G) Sector 1. Support vendors under the Petronas Vendor Financing Programme to help them navigate the volatile market. To date, we have approved a total of RM405 million to 90 Petronas vendors since the program’s inception. 2. Leverage our control mechanism whereby the utilisation and settlement of O&G vendor contracts are monitored by a dedicated unit. GROWTH OPPORTUNITIES Opportunities Our Approach Renewable Energy Growth Actively pursue strategic assessments on investment and acquisition into renewable energy. These investments focus on financing new and existing solar farms and solar players such as financing of installation of solar and net energy metering equipment. For more information, see page 118. Responsible Waste Management Explore strategic assessment on investment and acquisition into the waste management segment, with a recorded total accumulated assets of RM597.9 million. For more information, see page 118. Management Discussion & Analysis Bank Islam Malaysia Berhad 93 01 05 03 07 02 06 09 04 08
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