On the fiscal front, Malaysia responded proactively, issuing RM185.9 billion in Government Securities and Investment Issues, signalling strong financial management amid fluctuating markets. The demand for these instruments highlighted investor confidence and the resilience of Malaysia’s financial markets in a turbulent global context. Digital transformation within the banking sector has also intensified, underscored by rising customer expectations, ESG challenges, and enhanced risk management amid the rapid spread of automation. Digital adaptation has become the norm in this context, setting a benchmark for future advancements. In response, we accelerated our digitalisation initiatives, enhancing customer empowerment with digital tools like GO by Bank Islam and Be U by Bank Islam, fostering innovation through employee hackathons, and improving operational efficiency with IT system categorisation. We organised DIGIT23 to stay up-to- date with the latest developments and celebrate our achievements in digitalisation within the Group and future-proof ourselves in the evolving financial landscape. These actions align with our LEAP25 strategy, signalling our commitment to digital progress and industry leadership. Furthermore, our formidable capital adequacy and liquidity are vital pillars enabling us to navigate this evolving landscape adeptly. Through strategic foresight, we are resolutely focused on reinforcing our sustainability frameworks, refining our digital banking platforms, and strengthening our resilience to meet and exceed customer and stakeholder expectations consistently. STRONG GOVERNANCE & LEADERSHIP A key achievement in this area of ethical governance was Bank Islam securing the ISO 37001 Anti-Bribery Management System (ABMS) certification from ABAC Center of Excellence Sdn Bhd (ABAC). As the first full-fledged Islamic financial institution in Malaysia to receive this accreditation, it acknowledges our strong anti-corruption practices and firm commitment to zero-tolerance for bribery and corruption. This distinction reinforces Bank Islam’s reputation as an ethical and responsible entity, further solidifying our position within the industry. Strong corporate governance has been critical to Bank Islam’s long-term success and growth. In 2023, our Board of Directors and leadership team focused on reinforcing our governance framework against rising ESG concerns, particularly our response to climate change. This focus reflects the critical need to align our business practices with emerging global sustainability standards and the growing imperatives of climate-related financial risks. In response to the rapidly evolving ESG landscape, Board education emerged as a critical area of focus, underscoring the necessity for our directors to be wellversed in the latest sustainability trends and governance best practices. This year, we implemented comprehensive training programmes to deepen our board members’ understanding of ESG factors, equipping them to make informed strategic decisions that reflect current realities and future imperatives. One of the programmes organised by the Group is the 2023 Directors’ Conference where all directors within the Bank Islam took part in this event. With governance and sustainability as the theme, the 2023 Directors’ Conference “Harmonising Talent and Governance: Leveraging ESG for Sustainable Retention” served as the platform for providing meaningful engagement and collaboration among directors, providing them with a dedicated space to exchange ideas, insights, and best practices, thereby cultivating a culture of collective learning and continuous improvement in governance practices. Amongst the topics covered were: (i) the alignment of Islamic Finance with ESG; (ii) an overview of the ESG regulatory landscape and the impact on the Group; (iii) integrating leadership with Islamic Digital transformation within the banking sector has also intensified, underscored by rising customer expectations, ESG challenges, and enhanced risk management amid the rapid spread of automation. 17 1 2 3 4 5 6 7 8 9 www.bankislam.com KEY MESSAGES
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