131 OUR SUSTAINABILITY APPROACH HOW WE ARE GOVERNED FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION ADDITIONAL INFORMATION CAPITAL RATIOS The Group and the Bank remain on strong financial footing with total capital ratios of 29.433% (FYE22: 28.913%) and 31.565% (FYE22: 30.682%), respectively, well above the minimum prescribed by Bank Negara Malaysia (“BNM”) of 10.5% including capital conservation buffer of 2.50%. OUTLOOK AND PROSPECTS FOR 2024 In 2024, the Group forecast a robust Gross Domestic Product (“GDP”) growth of 4.5% - 5.0% (2023: 3.7%), underpinned by a further normalisation in economic activity. Key pillars supporting this positive trajectory include sustainable domestic demand, a potential surge in tourism activities, a rebound in the manufacturing sector, and a buoyant global technological upcycle. Nevertheless, downside risks persist, primarily stemming from the potential impact of a global economic slowdown led by advanced economies due to a higher interest rate environment. An escalation of the geopolitical tensions, particularly the Israel-Palestinian conflict as well as the extended Ukraine-Russia war, poses additional risks. Additionally, the slower-than-expected recovery in the Chinese economy could also exert pressure on global commodity prices, leading to a protracted subdued export performance. With domestic inflation expected to stay comfortably below the 3.0% threshold on average, and with Malaysia’s GDP continuing its expansion, we anticipate BNM to maintain the status quo, keeping the overnight policy rate (“OPR”) steady at 3.00% throughout 2024. In summary, the Group outlook for Kenanga in 2024 is positive. However the Group will continue to be cautious due to the volatility in the market arising from the global events. The Group remains steadfast in its commitment to fostering collaboration, drive innovation and embrace digitalisation. INDEMNIFICATION OF DIRECTORS AND OFFICERS The Bank has maintained a Directors and Officers Liability Insurance on a group basis up to the aggregate limit of RM30.0 million against any legal liability incurred by the Directors and Officers in the discharge of their duties while holding office for the Group. The Directors and Officers shall not be indemnified by such insurance for any gross negligence, fraud, intentional breach of law or breach of trust proven against them. The total amount of insurance premium paid for the Directors and Officers of the Group and of the Bank for the current financial year were RM59,000 and RM45,602, respectively. DIRECTORS The names of the Directors of the Bank in office since the beginning of the financial year and at the date of this report are: Tan Sri Dato’ Seri Syed Zainol Anwar Ibni Syed Putra Jamalullail (Independent Non-Executive Director/Chairman) Ismail Harith Merican (Non-Independent Non-Executive Director) Luk Wai Hong, William (Non-Independent Non-Executive Director) Jeremy Bin Nasrulhaq (Senior Independent Non-Executive Director) Norazian Binti Ahmad Tajuddin (Independent Non-Executive Director) Kanagaraj Lorenz (Independent Non-Executive Director) Choy Khai Choon (Non-Independent Non-Executive Director) Chin Siew Siew (Independent Non-Executive Director) The names of the Directors of the subsidiaries who served the respective Boards of the subsidiaries since the beginning of the current financial year to the date of this report are disclosed in Note 54 to the financial statements. DIRECTORS’ REPORT
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