The Board is driven by its commitment to shareholders and stakeholders of the Group to ensure that Bank Islam’s systems, procedures and practices reflect a high standard of corporate governance. The Board firmly believes that good corporate governance is the foundation of a well-managed organisation. The Board is fully committed to integrity and fair dealing in all its activities and to adopt the best practices of corporate governance in all areas of Bank Islam’s operations. At Bank Islam, the Group operates within a highly regulated industry. Bank Islam has therefore, a well-defined and structured corporate governance framework in place to support the Board’s aim of achieving long-term sustainable value as well as fostering a culture that values ethical behaviour and integrity to always safeguard the interests of shareholders and other stakeholders. The framework is fortified by rigorous and effective controls and together with Management, the Board spearheads the execution of robust strategies bolstered by strong governance and sound financial practices. During the financial year ended 31 December 2023 (FY2023), Bank Islam’s corporate governance practices were consistent with and complied with the following key statutory provisions, guidelines and best practices: 1. Bank Negara Malaysia’s Corporate Governance Policy (BNM CG Policy); 2. Companies Act 2016 (CA 2016); 3. Main Market Listing Requirements (MMLR) of Bursa Malaysia Securities Berhad (Bursa Securities); 4. Malaysian Code on Corporate Governance (MCCG) published by the Securities Commission Malaysia (SC); 5. Corporate Governance Guide 3rd Edition (CG Guide) published by Bursa Securities; 6. Minority Shareholders Watch Group (MSWG)’s Malaysia – ASEAN Corporate Governance Scorecard; 7. Guidelines on Conduct of Directors of Listed Corporations and their Subsidiaries published by the SC; and 8. Developments in market practice and regulations. This Corporate Governance Overview Statement sets out a summary of Bank Islam’s corporate governance practices during the FY2023 with reference to the following three (3) key Principles espoused in the MCCG and in accordance with Paragraph 15.25(1) of Bursa Securities’ MMLR as well as Paragraph 3.1A, Practice Note 9 of the MMLR: a. Board leadership and effectiveness; b. Effective audit and risk management; and c. Integrity in corporate reporting and meaningful relationship with stakeholders. ADOPTION OF THE MCCG The Group has benchmarked its practices against the relevant promulgations and other best practices. Bank Islam has applied the Practices encapsulated in the MCCG for the FY2023 with the exception of the following Practices which was adopted based on certain modifications: a. Practice 8.2 – The board discloses on a named basis the top five (5) management’s remuneration component including salary, bonus, benefits in-kind and other emoluments in bands of RM50,000; and b. Practice 8.3 – Step Up – Companies are encouraged to fully disclose the detailed remuneration of each member of management on a named basis. This Corporate Governance Overview Statement is to be read together with the CG Report 2023 published on Bank Islam’s website at www.bankislam.com. CORPORATE GOVERNANCE FRAMEWORK The Board views corporate governance as a fundamental process contributing towards achieving long-term shareholder value, taking into account the interest of all other stakeholders. The Group believes that a healthy corporate culture and robust governance framework ensures that the organisation continues to run smoothly and efficiently. The Board champions transparency and accountability in the boardroom, fostering these important governance components throughout the Group. 197 1 2 3 4 5 6 7 8 9 www.bankislam.com ACCOUNTABILITY Corporate Governance Overview Statement
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