Kenanga Annual Report 2022

ANNUAL REPORT
2022
Our Reports
The Annual Report 2022, Corporate Governance Report 2022 and Sustainability Report 2022 are our primary reports.
Supplementary information are available on our website: https://www.kenanga.com.my
Annual Report Corporate Governance Report Sustainability Report

Provides an overview of Kenanga Group’s Provides an overview of Kenanga Provides an understanding of Kenanga
financial performance, as well as business Group’s corporate governance and how it Group’s sustainability ambitions, initiatives
highlights of the year. facilitates effective management to deliver and progress, as well as how it is
long-term value for the company. integrated across the business.
Cover Rationale
At Kenanga, we uphold four core values: agility, collaboration, trustworthiness, and future facing. These values underpin
our dedication to building a strong and resilient organisation that can navigate the challenges of the ever-evolving financial
landscape.
Our commitment to these values empowers us to remain agile in our approach, collaborate effectively with colleagues
and partners, maintain the highest standards of trustworthiness, and remain future facing by actively seeking out new
opportunities in digital innovation for financial inclusion.
The paragliding image on our Annual Report’s cover symbolises our commitment to taking calculated risks in the pursuit
of success, and our willingness to explore uncharted territory. Despite the inevitable ups and downs of the financial world,
we remain dedicated to doing what is best for our organisation and our stakeholders. We continuously push boundaries,
innovate, and pursue new opportunities for growth and value creation.
49 th
ANNUAL GENERAL MEETING
Date : Thursday, 25 May 2023
Time : 11.00 a.m.
Venue : Level 19, Kenanga Tower,
237, Jalan Tun Razak,
50400 Kuala Lumpur, Kenanga is committed to making a difference in the
environment. Play your part by opting to download a
Wilayah Persekutuan, softcopy of our reports at https://www.kenanga.com.
my/investor-relations/AGM2023 or by scanning the
Malaysia QR code above.
INSIDE THIS REPORT
SECTION 1 SECTION 5
WE ARE KENANGA FINANCIAL STATEMENTS
Kenanga At A Glance 2 Five (5)-Year Group Financial Summary 125

Who We Are 4 Five (5)-Year Group Financial Highlights 125
Our Notable Recognitions in 2022 5 Directors’ Report 126
Corporate Structure 7 Statement by Directors 132
Corporate Information 8 Statutory Declaration 132
Independent Auditors’ Report 133
Shariah Committee’s Report 139
SECTION 2
Consolidated Statement of Financial Position 140
LEADERSHIP MESSAGE Statement of Financial Position 141
Statements of Profit and Loss and
Chairman’s Message 10
Other Comprehensive Income 142
Group Managing Director’s Management
Consolidated Statement of Changes in Equity 144
Discussion and Analysis 14
Statement of Changes in Equity 146
Statements of Cash Flow 147
SECTION 3 Notes to the Financial Statements 149
OUR SUSTAINABILITY APPROACH
Our Sustainability Statement 22 SECTION 6
SHAREHOLDERS’ INFORMATION
SECTION 4 Analysis of Shareholdings 354

HOW WE ARE GOVERNED List of Thirty (30) Largest Shareholders 355
Substantial Shareholders’, Directors’ & Group
Founder Emeritus & Adviser’s Profile 46 Managing Director’s Interests in Securities 356
Profiles of Directors 48
Group Managing Director’s Profile 56
Senior Management’s Profiles 57 SECTION 7
Corporate Governance Overview Statement ADDITIONAL INFORMATION

Principle A: Leadership & Effectiveness 67
Notice of 49th Annual General Meeting 357
Principle B: Effective Audit &
Statement Accompanying Notice of
Risk Management 87
49th Annual General Meeting 364
Principle C: Relationships with Stakeholders 89
Corporate Directory 365
Ethics and Compliance Statement 97
• Proxy Form
Statement on Risk Management and
Internal Control 110
Audit Committee Report 115
We Are Leadership Our Sustainability How We Are Financial Shareholders’ Additional
Kenanga Message Approach Governed Statements Information Information
KENANGA AT A GLANCE
Introduction
Kenanga Investment Bank Berhad (“Kenanga”, “the Group” or “Kenanga Group”) is an award-winning independent
investment bank in the country with a continuous commitment towards driving collaboration, innovation, digitalisation and
sustainability in the marketplace.
The Group’s ambitions include building a robust digital ecosystem that meets the needs of its clients and businesses.
Some of its game-changing products include Malaysia’s fully online digital stockbroking platform Rakuten Trade and a
fully artificial intelligence (“A.I.”) robo-advisor, Kenanga Digital Investing. It is currently developing Malaysia’s first Wealth
SuperApp that will be rolled out in 2023.
>500,000 clients
>1,300 employees
>6,000
licensed representatives
>RM20 billion
assets under management
Awarded
‘Highest Returns to Shareholders
Over Three Years’
‘Highest Growth in Profit After Tax
Over Three Years’
‘Highest Return on Equity Over
Three Years’
at The Edge Malaysia Centurion Club
Corporate Awards 2022
2
KENANGA INVESTMENT BANK BERHAD
Annual Report 2022
KENANGA AT A GLANCE
Kenanga’s Digital Journey
Rakuten Joint Back Office Launch of Launch of

Venture Digitalisation Rakuten Trade Remisier Portal
Kenanga entered into Kenanga completed Kenanga and Rakuten Kenanga launched a
a joint venture with back office Securities, Inc. jointly new portal to enable
Japanese internet giant digitalisation to launched Rakuten Trade, remisiers to work
Rakuten Securities, Inc. enhance efficiencies. Malaysia’s first fully digital remotely.
equity broker.
2016 2017 2017 2019
E-Wallet Launch with

Merchantrade
Kenanga launched an e-wallet with
Merchantrade and later acquired a
20
20
A Stake in Tokenize 4.99% stake in the company.
Xchange
Kenanga received approval
from Securities Commission
Malaysia to acquire 19%
20
stake in Digital Asset 20 Partnership with CapBay
Exchange Platform, Tokenize
Xchange. Kenanga entered into partnership with
CapBay to digitalise first-in-Malaysia
factoring solution unifying both, private
and public sector’s receivables under one
21
20 (1) platform.
2022 2022
Launch of a Robo-Advisory Signed Memorandum of

Platform Understanding with Ant Group
Kenanga launched a fully A.I.-driven Kenanga entered into partnership with Ant
robo-advisory platform, Kenanga Group to develop Malaysia’s first Wealth
Digital Investing. SuperApp, geared to revolutionise wealth
generation and management.
3
WHO WE ARE
Established for almost fifty (50) years, Kenanga is a financial group in Malaysia with extensive experience in
equity broking, investment banking, treasury, Islamic banking, listed derivatives, investment management, wealth
management, structured lending and trade financing.
Agility Collaboration
We are nimble and quick to respond with creative, We are supported by an integrated network
customised solutions to meet our stakeholders’ of colleagues and partners. We believe in
needs, both externally and internally. consolidating our knowledge and working
together for the best solutions.
OUR BRAND
VALUES
We are constantly pushing boundaries. Our Professionalism, integrity and transparency are
pursuit of digital innovations will drive financial values we hold dear. We are fully committed to
inclusion and create opportunities and ethical practices and strive to always maintain
possibilities for our stakeholders. credibility in all that we do.
Future Facing Trustworthiness
4
Annual Report 2022
OUR NOTABLE RECOGNITIONS

IN 2022
We have garnered a host of awards and accolades over the years, reflecting our commitment to excellence across the various
aspects of our business.
Tatler Asia’s Most Influential Malaysia 2022 SRP Asia Pacific Awards 2022
Datuk Chay Wai Leong (Finance and Venture Capital) • Best House, South and Southeast Asia Award
• Best Educational Initiative Award
Asiamoney’s 2022 Best Securities Houses Awards
Malaysia’s Best Securities House The Edge Deals of 2022: Best Fundraising (Non-IPO)
• Yinson Holdings Berhad’s RM1.2 billion Rights Issue
The Edge Malaysia Centurion Club
(Financial Services Category) Alpha Southeast Asia 16th Annual Best Deal &
• Highest Returns to Shareholders Over Three Years Solution Awards
• Highest Growth in Profit After Tax Over Three Years • Best Debt Restructuring Deal of the Year 2022 – Capital
• Highest Return on Equity Over Three Years A’s RM974 million Rights Issue
United Nations Global Compact Network Malaysia & Sustainability & CSR Malaysia Award 2022
Brunei Sustainability Performance Awards 2022 • Bank of the Year Award for Environmental, Social &
• Partnership for the Goals Recognition Governance Excellence
• Sustainable Product Recognition • Long-Standing Excellence in Sustainability
• Sustainability Awareness and Employee Engagement
Recognition Malaysia PR Awards 2022
• Sustainability Award (Silver) – Launch of The
Bursa Excellence Awards 2022 HumanKIND Project: Meals That Give
• Best Overall Equities Participating Organisation • Consumer Launch Award (Silver) – Kenanga Digital
(Champion) Investing
• Best Retail Equities Participating Organisation
(Champion) CSRWorks International 8th Asia Sustainability
• Best Online Retail Participating Organisation Reporting Awards 2022
(Champion) • Asia’s Best Sustainability Report – First Time, Silver
• Best Remisier, Margaret Heng (Champion)
• Best Remisier, Chew Yee Seng (2nd Runner Up)
Bursa Retail Investor Campaign 2022

Top Remisier Category
• Highest Number of New Accounts Opened: Yvonne
Phang Wei Chien
• Highest Number of New Accounts Opened (Shariah):
Ahmad Faizal bin Mohamed Yusuf
• Highest Traded Value in ETF: Peter Shia Kee Chooi
Top Futures Broker Representative Category
• Highest Trade Volume – New Accounts (Derivatives):
Ho Chih Wei
• Highest Number of New Accounts Opened
(Derivatives): Ho Chih Wei
5
OUR NOTABLE RECOGNITIONS

IN 2022
KENANGA INVESTORS BERHAD
FSMOne Recommended Unit Trust Awards 2022/2023
Sector Equity – Malaysia Focused Sector Equity – Malaysia Small to Medium Companies (Islamic)
Kenanga Growth Fund Series 2 Kenanga Shariah Growth Opportunities Fund
Asia Asset Management’s 2023 Best of the Best Awards
Malaysia Best Equity Manager Malaysia Best Impact Investing Manager

Kenanga Investors Group Kenanga Investors Group
Malaysia Best House Malaysia Most Improved Malaysia CEO of the Year
for Alternatives Fund House Datuk Wira Ismitz Matthew De
Kenanga Investors Group Kenanga Investors Group Alwis, Chief Executive Officer/
Executive Director, Kenanga
Investors Berhad
Refinitiv Lipper Fund Awards Malaysia 2023
Equity Malaysia Diversified – Mixed MYR Flexible –

Malaysia Provident Funds Over 10 Years Malaysia Provident Funds Over 5 Years
Kenanga Malaysian Inc Fund Kenanga Managed Growth Fund
Mixed Asset MYR Flexible – Mixed Asset MYR Flexible –

Malaysia Provident Funds Over 3 Years Malaysia Provident Funds Over 10 Years
Kenanga Managed Growth Fund Kenanga Managed Growth Fund
The Asset Benchmark Research, Asian Local Currency Bond

2022 Morningstar Awards Malaysia
Awards for Asset Managers
Best Malaysia Large-Cap Equity Fund Ranked Highly Commended – Top Investment Houses
Kenanga Growth Fund Series 2 (USD) Kenanga Investors Group
KENANGA FUTURES SDN BHD
Bursa Excellence Awards 2022
• Best Institutional Derivatives Trading Participant (Champion)

• Best Overall Derivatives Trading Participant (1st Runner Up)
6
Annual Report 2022
CORPORATE STRUCTURE
Kenanga Investment Bank Berhad

Registration No. 197301002193 (15678-H)
100% 100%
Kenanga Investors Berhad K & N Kenanga Holdings Berhad
Registration No. 199501024358 (353563-P) Registration No. 199401017181 (302859-X)
100% 100%
Kenanga Islamic Investors Berhad SSSB Management Services Sdn Bhd
Registration No. 199701036457 (451957-D)
Registration No. 199101009010 (219322-W)
100%
45%
I-VCAP Management Sdn Bhd
Kenanga Investment Corporation Ltd
Registration No. 200701034939 (792968-D)
(Incorporated in Sri Lanka)
100% Registration No. PB300
KUT Nominees (Asing) Sdn Bhd

Registration No. 200201001939 (569602-K) 100%
Kenanga Nominees (Tempatan) Sdn Bhd
100% Registration No. 197301003326 (16778-M)
KUT Nominees (Tempatan) Sdn Bhd
Registration No. 200201001942 (569605-D) 100%
Kenanga Nominees (Asing) Sdn Bhd
100%
Registration No. 199301025305 (280043-U)
Kenanga Funds Berhad
Registration No. 200301017657 (620077-K)
100%
100% Kenanga Management & Services Sdn Bhd
Registration No. 198001007478 (61262-V)
Kenanga Futures Sdn Bhd
Registration No. 199501024398 (353603-X)
100%
100% ECML Berhad
Kenanga Capital Sdn Bhd Registration No. 193001000016 (682-X)
Registration No. 199701024604 (440102-V)
100%
20% Kenanga Digital Sdn Bhd
Kenanga Capital Islamic Sdn Bhd (Formerly known as ECML Nominess (Tempatan) Sdn Bhd)
Registration No. 201101010778 (938908-X) Registration No. 193801000015 (938-T)
100% 100%
Kenanga Private Equity Sdn Bhd Avenue Kestrel Sdn Bhd
Registration No. 199701007563 (423059-P) Registration No. 198301001914 (97150-A)
50%
Rakuten Trade Sdn Bhd
Registration No. 199301011963 (266701-P)
50%
Rakuten Trade Singapore Pte Ltd
(Incorporated in Singapore)
Registration No. 201433886E
29.6%
Al Wasatah Al Maliah Company
(Incorporated in the Kingdom of Saudi Arabia)
Registration No. 1010241832
Note:
All the above companies are incorporated in Malaysia except for Kenanga Investment Corporation Ltd, Al Wasatah Al Maliah Company and Rakuten Trade Singapore
Pte Ltd.
7
CORPORATE INFORMATION
BOARD OF DIRECTORS
YAM TAN SRI DATO’ SERI SYED ZAINOL ANWAR IBNI SYED PUTRA JAMALULLAIL
(“YAM Tan Sri Dato’ Seri Syed Anwar Jamalullail”)
Chairman/ Independent Non-Executive Director
ISMAIL HARITH MERICAN KANAGARAJ LORENZ

Non-Independent Non-Executive Director Independent Non-Executive Director
LUK WAI HONG, WILLIAM CHOY KHAI CHOON

Non-Independent Non-Executive Director Non-Independent Non-Executive Director
JEREMY NASRULHAQ CHIN SIEW SIEW

Senior Independent Non-Executive Director Independent Non-Executive Director
NORAZIAN AHMAD TAJUDDIN

Independent Non-Executive Director
AUDIT COMMITTEE (“AC”) EMPLOYEES’ SHARE SCHEME COMMITTEE (“ESSC”)

Chairman - JEREMY NASRULHAQ Chairman - CHIN SIEW SIEW
Members - Kanagaraj Lorenz Members - Norazian Ahmad Tajuddin

Norazian Ahmad Tajuddin Jeremy Nasrulhaq
GROUP GOVERNANCE, NOMINATION & GROUP BOARD DIGITAL INNOVATION &

COMPENSATION COMMITTEE (“GNC”) TECHNOLOGY COMMITTEE (“GBDITC”)
Chairman - CHIN SIEW SIEW Chairman - KANAGARAJ LORENZ
Members - Jeremy Nasrulhaq Members - Luk Wai Hong, William

Ismail Harith Merican Jeremy Nasrulhaq
Norazian Ahmad Tajuddin Choy Khai Choon
Choy Khai Choon Chin Siew Siew
GROUP BOARD RISK COMMITTEE (“GBRC”) SHARIAH COMMITTEE

Chairman - NORAZIAN AHMAD TAJUDDIN Chairman - DR. GHAZALI JAAPAR
Members - Luk Wai Hong, William Members - Dr. Mohammad Firdaus Mohammad Hatta
Kanagaraj Lorenz Dr. Fadillah Mansor
Choy Khai Choon
Chin Siew Siew
8
Annual Report 2022
CORPORATE INFORMATION
GROUP EXECUTIVE COMMITTEE
DATUK CHAY WAI LEONG AZILA ABDUL AZIZ TAI YAN FEE
Group Managing Director Chief Executive Officer/ Executive Director Group Chief Risk Officer
Kenanga Investment Bank Berhad and Head of Listed Derivatives Kenanga Investment Bank Berhad
Kenanga Futures Sdn Bhd
LEE KOK KHEE CHEONG BOON KAK WOO KING HUAT

Executive Director, Head of Group Equity Group Chief Financial and Operations Chief Credit Officer
Broking Business Officer Kenanga Investment Bank Berhad
Kenanga Investment Bank Berhad Kenanga Investment Bank Berhad
DATUK ROSLAN HJ TIK MAHESWARI KANNIAH VAITHIYANATHAN MADAVAN

Executive Director, Head of Group Group Chief Regulatory and Compliance Head of Group Operations
Investment Banking and Islamic Banking Officer Kenanga Investment Bank Berhad
Kenanga Investment Bank Berhad Kenanga Investment Bank Berhad
CYNTHIA WOON CHENG YEE NIK HASNIZA NIK IBRAHIM LOW JIA YEE
Head of Group Treasury Head of Group Human Resource Chief Technology Officer
Kenanga Investment Bank Berhad Kenanga Investment Bank Berhad Kenanga Investment Bank Berhad
DATUK WIRA ISMITZ MATTHEW DE ALWIS

Chief Executive Officer/ Executive Director
Kenanga Investors Berhad
SENIOR INDEPENDENT SHARE REGISTRAR PRINCIPAL BANKERS

NON-EXECUTIVE DIRECTOR BOARDROOM SHARE • AmBank (M) Berhad
JEREMY NASRULHAQ REGISTRARS SDN BHD • CIMB Bank Berhad
Email : jeremyn@kenanga.com.my Registration Number: • Malayan Banking Berhad
199601006647 (378993-D) • RHB Bank Berhad
11th Floor, Menara Symphony, • Standard Chartered Bank (Malaysia)
GROUP COMPANY SECRETARY No. 5, Jalan Prof. Khoo Kay Kim, Berhad
NORLIZA ABD SAMAD Seksyen 13,
(CCM PC NO.: 201908002139) 46200 Petaling Jaya,
(MAICSA 7011089) Selangor Darul Ehsan, STOCK EXCHANGE LISTING
Malaysia BURSA MALAYSIA SECURITIES
Tel : +603-7890 4700 BERHAD
REGISTERED OFFICE Fax : +603-7890 4670 Main Market: Financial Services
KENANGA INVESTMENT BANK BERHAD E-mail : BSR.Helpdesk@ Stock Name: KENANGA
Registration Number: boardroomlimited.com Stock Code: 6483
197301002193 (15678-H) Website : https://www.boardroomlimited.com Listing Date: 2 November 2016
Level 17, Kenanga Tower,
237, Jalan Tun Razak, AUDITORS
50400 Kuala Lumpur, ERNST & YOUNG PLT
Wilayah Persekutuan, (202006000003 (LLP0022760-LCA) & AF 0039)
Malaysia Chartered Accountants
Tel : +603-2172 2888 Level 23A, Menara Milenium,
Fax : +603-2172 2999 Jalan Damanlela,
URL : https://www.kenanga.com.my Pusat Bandar Damansara,
E-mail : kenanga@kenanga.com.my 50490 Kuala Lumpur,
Wilayah Persekutuan,
Malaysia
9
CHAIRMAN’S MESSAGE
DEAR Marked by turmoil arising from the Russia-Ukraine conflict, high inflation and
aggressive interest rate hikes, as well as looming concerns of recession, 2022
SHAREHOLDERS, could perhaps be characterised as one of the most turbulent of years.
However, I am proud to say that through these challenges, Kenanga Investment

Bank Berhad and Its Group of Companies (“Kenanga Group” or “the Group”)
demonstrated immense resilience, agility and adaptability that allowed the
Group to continue making significant strides in pursuit of sustainable growth.
The Group ended the year with a Revenue of RM723.1 million and a Profit Before
Tax (“PBT”) of RM74.2 million. Net profit stood at RM55.4 million.
10
Annual Report 2022
On the strength of these results, the Board is pleased to As we move forward, the Board is dedicated to reinforce
declare a dividend of 6.0 sen per share, amounting to dividends our sustainability agenda. We have developed a Three
payable of RM43.6 million for FY2022. (3)-Year Sustainability Roadmap with specific goals and
targets to strengthen our ESG footing, amplify our ESG impact,
In the Management Discussion and Analysis, Group Managing and improve our sustainability standards. Our steadfast
Director, Datuk Chay Wai Leong will cover a comprehensive commitment to sustainability will continue to guide our
overview of the Group’s activities and performance. However, business as we work to create a better future for all.
it is imperative that I highlight here, that the growth of Kenanga
Group is not just limited to financial gains, but also encompasses More information on our sustainability efforts can be found in our
a broader commitment towards making a positive difference to Sustainability Report 2022.
our people, communities and environment.

Promoting Ethics and Good Governance
Sustainability in Motion
In FY2022, Kenanga Group held its sixth (6th) annual Fraud
Recent years have seen the Group accelerating its sustainability Awareness Week, which was held in conjunction with
agenda and placing Environmental, Social and Governance the International Fraud Awareness Week organised by
(“ESG”) considerations as part of its decision-making the US-based Association of Certified Fraud Examiners.
processes. Our commitment to sustainability is a key part of The event served as a platform to raise awareness on the
our growth story and has become one of the characteristics of importance of fraud detection and the need for a strong
the Kenanga brand. anti-fraud and anti-corruption culture.
Over the course of 2022, I am proud to share that we made This year’s theme, ‘Reaffirming Ethical and Moral Resilience
tremendous progress on the ESG front, which culminated for Good Governance’, was highlighted through presentations
in Kenanga Investment Bank Berhad’s inclusion onto the and activities that engaged industry players and individuals.
FTSE4Good Bursa Malaysia Index in December 2022. The event drew a record number of participants demonstrating
With that, we now join the 10% of public listed companies the growing interest and commitment to combating fraud and
in Malaysia included on this index that is based on global corruption.
ESG standards and benchmarks. Designed by global index
provider FTSE Russell, the inclusion is a welcomed validation In line with our commitment to ethics and good governance,
of our commitment to sustainability and responsible business Kenanga Group continues to invest in internal programmes
practices. and training to deepen our employees’ understanding of ethical
conduct and corporate governance. Over the past two (2)
In the same year, we were heartened to receive multiple years, employees have undergone more than 16,000 training
accolades at the UN Global Compact Network Malaysia & hours in areas such as ethics, governance, and compliance.
Brunei Sustainability Performance Awards, an event initiated to Anticipating what lies ahead, we remain committed to building
recognise continuous ESG efforts by its member participants. a strong and resilient financial ecosystem through our efforts to
Kenanga Group was commended for our innovative approach combat fraud and corruption, and our continued investments
to product development that integrates financial growth with in ethical and governance programmes.
social and community impacts; efforts in fostering partnerships
and collaborations for financial inclusion; and raising Further information about our efforts in this area can be found in the
awareness on sustainability issues. It was an honour to share Ethics and Compliance Statement on page 97 of this Annual Report.
the stage with some of the prominent sustainability stalwarts in
the industry and take stock of how far we have come in a short
period of time.
11
EMPOWERING PEOPLE AND COMMUNITIES
Amid the ongoing effects of the COVID-19 pandemic and its Within the organisation, we are committed to prioritising the
impact on society, we are acutely aware of the growing social wellbeing and development of our employees, recognising
and community needs facing Malaysians, particularly those who that they are our most valuable asset. We believe in fostering
are most marginalised. During the year, we supported seven (7) a workplace culture that supports and encourages our
organisations via eight (8) projects. We launched the ‘Meals employees to reach their full potential, both personally and
That Give’ campaign with the aim of rallying public support for professionally. Broadening our view on workplace safety, we
our long-term social enterprise partner ‘Café Includes’, a café are embracing employee mental and emotional wellbeing in
operated by people with disabilities. Through this campaign, addition to physical health. During the year, we kickstarted
Malaysians were able to pledge meals for distribution to programmes on mental wellness, with the aim to reduce
the underprivileged, with Kenanga matching each pledge the stigma of mental-health issues and reinforce a safe and
one-for-one. In total, we raised over 2,700 meals for vulnerable supported workplace for our employees.
communities in FY2022.
12
Annual Report 2022
THE COMING YEAR
This coming year, we will be celebrating Kenanga’s 50th I would also like take this opportunity to extend a very warm
anniversary as a proud home-grown brand that has evolved welcome to Madam Chin Siew Siew, who joined our Board in June
from a humble stockbroking company to the country’s 2022. She brings to the Board three (3) decades of experience in the
leading independent investment bank. Over the years, digital and technology industry which comes at an excellent time
we have dedicated to providing exceptional services to our for the Group’s digital strategy. She has served as Country Chief
clients, helping them grow their wealth and achieve their Digital Officer at IBM where she was also ASEAN Services Leader
financial goals. for IBM Multivendor Business. In that capacity, she oversaw the
establishment of the IBM Malaysia Centre of Digital Excellence,
While we are keenly aware of the significant uncertainties which connects start-ups, investors, technology partners and
and complexities that continue to persist around the world, government stakeholders. We very much look forward to her
particularly with regards to the ongoing geo-political contribution to Kenanga Group as we move forward on our digital
events, supply chain disruptions and escalating inflation, journey and transformation.
the Board of Directors (“Board”) is confident that the
Group’s fortitude, resourcefulness and resilience – its APPRECIATION
hallmarks that have been honed through the decades – will
enable it to navigate the waters. I would like to express appreciation to Kenanga Group Founder
Emeritus and Adviser, YM Tan Sri Dato’ Paduka Tengku Noor
Our journey thus far has been driven by constant innovation Zakiah Tengku Ismail. Her friendship and trust have always been
and a commitment to staying ahead of the curve. As we a wonderful source of inspiration for myself and for all of us at
enter our next fifty (50) years, we renew our ambition to Kenanga Group.
deliver best possible solutions and services that are
inclusive, meaningful and beneficial to our stakeholders, I would also like to thank my colleagues on the Board for their
and to do what it takes to further fortify our foundation, support and advice throughout the year, as well as the Management
upon which we will continue to spur growth and prosperity, and employees of Kenanga Group. Their exemplary service and
in the years to come. dedication in these challenging times have deepened and enriched
the values that continue to define the Kenanga Group as a whole.
BOARD MOVEMENT
Finally, I wish to convey my appreciation to our valued clients,
On behalf of the Board, I would like to express our gratitude business partners, suppliers and shareholders for their trust in
to Mr. Luigi Fortunato Ghirardello (“Mr. Ghirardello”) the Group, as well as to Bank Negara Malaysia, Bursa Malaysia
who retired as Non-Independent Non-Executive Director Berhad and Securities Commission Malaysia for their advice and
of Kenanga Investment Bank Berhad in May 2022. support.
Throughout his tenure of thirteen (13) years on the Board,
he has provided invaluable guidance, ideas and dedication
to the organisation and we are grateful for his contribution. TAN SRI DATO’ SERI SYED ANWAR JAMALULLAIL
Mr. Ghirardello continues to serve as Chairman of Kenanga Chairman
Futures Sdn Bhd, a wholly-owned subsidiary of Kenanga
Investment Bank Berhad. We extend our best wishes to him
for all his future endeavour.
13
GROUP MANAGING DIRECTOR’S MANAGEMENT

DISCUSSION AND ANALYSIS
DEAR The macroeconomic and political environment in 2022 were amongst the most
challenging in recent history. Capital markets were particularly impacted by
SHAREHOLDERS, aggressive interest rate hikes by central banks globally, implemented to combat
inflation caused by global supply chain disruptions. The Russia-Ukraine crisis
also started in the early part of the year and is still ongoing. Recession fears
loomed on the horizon, exacerbating market jitters.
On the domestic front, the Malaysian economy rebounded towards the middle
of the year with the easing of restrictions and reopening of borders as it
transitioned to COVID-19 endemic phase. While Malaysian Gross Domestic
Product (“GDP”) grew 8.7%, the negative global macro sentiments weighed
on investors’ appetite, which sparked heavy sell-offs. After two (2) years of
exceptional trading activities on the bourse, Trading Volume and Trading Value
on Bursa Malaysia dropped by 49.1% and 40.8% respectively.
14
Annual Report 2022

RESULTS Stockbroking
Stockbroking division recorded a PBT of RM2.5 million in FY2022.
Please refer to page 17.
Profit Before Tax
RM74.2 Investment Banking

million Investment Banking division eased its PBT to RM15.8 million in
FY2022.
Asset and Wealth Management

Net Profit SEGMENTAL Asset and Wealth Management division recorded exceptional
RM55.4 REVIEW growth in FY2022 with a PBT of 54.2 million.

million
Listed Derivatives
Listed Derivatives division made a return to profitability in FY2022
with a PBT of RM2.1 million.
Dividend Declared
6.0 sen Money Lending and Financing

Structured Lending and Trade Financing division registered a PBT of RM0.1 million in
FY2022.
Earnings Per Share

ONE OF OUR BEST YEARS DESPITE HEADWINDS
7.5 sen Against these significant setbacks, Kenanga Investment Bank Berhad (“Kenanga” or
“the Group”) continued to record one of its best financial years within a decade. Led by
record-high performance from our Asset and Wealth Management business, the Group
posted a Revenue and Profit Before Tax (“PBT”) of RM723.1 million and RM74.2 million
respectively for the Financial Year Ended 31 December 2022 (“FY2022”), while Net Profit
Annualised Return for the year stood at RM55.4 million.
on Equity
5.3%
Our Stockbroking business was naturally affected by the substantial drop in trading
activities. Still, the business continued to focus on expanding market presence, driving
its retail market share to 27.0% from 24.2% the year before, reinforcing its pole position
as one of the largest retail stockbrokers in the marketplace. Its commitment to excellence
earned us the coveted recognition of ‘Best Overall Equities Participating Organisation’ from
Bursa Malaysia for the third consecutive year.
These wins, underpinned by measures of prudence in our lending practices and trading
positions in equity and bonds, moderated the impact of the uncertainties and decline in
the market.
15

In a year shaped by intense headwinds, the enterprising In keeping pace with our digital agenda and ambition to broaden
spirit of our people was the cornerstone to many new retail participation in investing, Kenanga signed a Memorandum of
opportunities that tapped the underserved segments, as Understanding with globally recognised digital infrastructure and
well as drove the design of new solutions that responded platform provider Ant Group, to develop and launch Malaysia’s first
to changing demands fuelled by the volatile market B2C wealth-centric SuperApp. Positioned to be a game-changer in
conditions. This culture of tenacity and growth mindset wealth management, the platform will apply Ant Group’s proprietary
has enabled us to continue delivering healthy returns to tried and tested solution, Mobile Platform as a Service, and
shareholders in the face of a tumultuous year. integrate a suite of financial products, such as equity trading, digital
investment products, e-wallet, crypto trading and foreign currency
In this respect, I am happy to report that the Group was wallet, onto a single platform and ecosystem.
recognised by The Edge Centurion Ringgit Club during the
year for our performance and was awarded the coveted Scheduled for launch in 2023, the SuperApp will be scalable with
accolade of ‘Highest Returns to Shareholders Over Three the potential for diversification and growth to meet changing market
Years’, ‘Highest Growth in Profit After Tax Over Three demands. Modular and adaptable, this solution will contribute
Years’, and ‘Highest Return on Equity Over Three Years’. positively to Kenanga’s growing array of products and services,
and the enrichment of the Malaysian financial services ecosystem
I take this opportunity to express my gratitude to every in general.
member of Kenanga Group, whose dedication and
commitment to a better future have contributed to the Further to that, we invested in tools and solutions during the year
growth and strength of the Group today. to migrate existing client processes, such as on-boarding and
client management to online channels. As a result, we launched
THE DIGITAL JOURNEY CONTINUES a Digital Client On-boarding platform and we expect to roll out a
retail-fronting Treasury FX platform in 2023.
In February 2022, Kenanga launched a fully-automated
A.I.-driven robo-advisor, Kenanga Digital Investing CORPORATE HIGHLIGHTS
(“KDI”). A product licensed by the Securities Commission
Malaysia, the platform offers two (2) convenient products The Group completed the divestment of its 49% equity stake in
– KDI Save and KDI Invest – designed to improve access Kenanga Vietnam Securities Joint Stock Corporation in May 2022.
to savings and investing for Malaysians from all walks of The company was inactive, and the divestment will allow the Group
life. to start afresh in Vietnam when opportunities arise.
Equipped with technology to monitor global markets In 4Q FY2022, the Group signed a new joint-venture agreement with
and to react to new investing opportunities, the platform Rakuten Securities, Inc. to enable the expansion of Rakuten Trade
analyses thousands of data points each day, incorporating Sdn Bhd (“Rakuten Trade”) to Singapore, creating the beginnings of
information from across continents and asset classes a regional presence for the Kenanga-Rakuten franchise. At the time
to develop investment portfolios that aim to generate of this report, the Monetary Authority of Singapore is processing our
sustainable returns while managing risks. application for an operating license, and we expect to commence
business by the end of FY2023.
In just over two (2) months, KDI surpassed the RM100
million mark in assets under management (“AUM”) on In December 2022, we were pleased to learn that Kenanga
the back of positive responses from over 6,500 signups. Investment Bank Berhad had been included onto the FTSE4Good
By December 2022, AUM stood at almost RM250 million Bursa Malaysia Index, a testimony of our ESG performance that
with 17,000 clients – an encouraging start to the Group’s is benchmarked against global standards. We are cognisant of the
aim to democratise investing for Malaysians through the urgency and significance of progressing our sustainability agenda
provision of better options, better access, and better and are committed to maintaining momentum in the integration of
value in financial products and services. ESG aspects into our value chain.
16
Annual Report 2022

FINANCIAL POSITION
As at 31 December 2022, the Group and Company platform contributed 20% of its overall revenue but was adversely
capital adequacy ratios were 28.9% and 30.7% affected by the US Federal Reserve’s aggressive interest rate changes
respectively, which were in excess of the minimum throughout the year. Nonetheless, Rakuten Trade grew its customer
regulatory capital adequacy of 10.5% set by Bank base by approximately 21,000 new accounts, bringing the total
Negara Malaysia, including a capital conservation buffer number of accounts since it first launched to more than 257,000.
of 2.5%. Its client trust cash balance ended 8.5% higher year-on-year at
RM443 million, indicating strong confidence among its clients.
Liquidity Coverage Ratio was 183.0%, well above
the regulatory requirement of 100%, while Net Stable Despite headwinds, our Stockbroking division recorded a PBT of
Funding Ratio stood at 124.1%, above the mandatory RM2.5 million in FY2022. It mitigated many of the harsher effects of
minimum of 100%. the year-long challenges by maximising business efficiencies, careful
cost management, and the continued development of a well-rounded
The Group maintained A+ and MARC-1 ratings from client base encompassing retail and institutional clients, as well as
the Malaysian Rating Corporation Berhad (“MARC”), increasingly diversified income, including its algorithmic trading and
a reflection of our strong capital position, profitability, Structured Derivatives businesses.
and funding profile despite weakened capital market
conditions. As always, we will continue to work towards In tandem with the Group’s digitalisation journey and strategies to
achieving and sustaining the highest ratings through improve efficiency, the division continued to consolidate its physical
constant improvements to our financial performance. office presence nationwide with the closure of twelve (12) branches in
early 2022. This development had minimal effect on daily operations
For the same period, our subsidiaries Kenanga as clients and remisiers have been steadily migrating to the Group’s
Investors Berhad and Kenanga Islamic Investors online platforms since the beginning of the COVID-19 pandemic.
Berhad maintained MARC IMR-2 ratings, affirming our The developments that initially took place as a means to lessen or
commitment to well-established investment processes overcome the negative impact of the lockdown have since translated
and sound risk management practices. into significant increases in operational efficiency with no disruption
to daily business through the rollout of additional digital products
SEGMENTAL REVIEW and services in FY2022 such as an e-onboarding platform for clients,
which drastically improves and shorten the account opening process,
as well as continuous improvements to our remisiers’ portal. We also
plan to roll out algorithmic trading platform for our clients in FY2023.
Stockbroking
The division also continued its efforts to build better investor literacy
Despite the easing of COVID-19 restrictions and the through public education and outreach for existing as well as
rapid normalisation of economic activity in Malaysia and prospective customers, with a richer and more comprehensive series
around the world, FY2022 was an intensely challenging of webinars and other digital content on various financial topics.
year for equities listed on Bursa Malaysia. As mentioned,
trading volumes and momentum dissipated sharply. Thus, it is very gratifying to note that its efforts continue to be
recognised for excellence in the industry. These include several
The performance of our joint-venture business Rakuten accolades at the Bursa Excellence Awards 2022 such as ‘Best Overall
Trade—Malaysia’s first online trading platform—was Equities Participating Organisation’ (Champion), ‘Best Retail Equities
impaired by low trading volumes and retail participation Participating Organisation’ (Champion), and ‘Best Online Retail
in the Malaysian market, with brokerage income falling Participating Organisation’ (Champion).
63.1% to RM17.9 million. Its newly launched US-based
17

Investment Banking
With the strongly unfavourable market, the Investment Banking Meanwhile in the area of corporate debt, the division was
division eased its PBT to RM15.8 million in FY2022 compared appointed as the Principal Adviser, Lead Arranger, Lead
to RM20.6 million the previous year. Manager and Shariah Adviser and Facility Agent for Gabungan
AQRS Berhad’s proposed Islamic Commercial Paper (“ICP”)
In the equity capital market, the division was instrumental in the and Islamic Medium-Term Note (“IMTN”) Programme of
successful listing of a pawnshop operator, Pappajack Berhad RM200 million in nominal value, as well as SkyWorld Capital
on the ACE Market of Bursa Malaysia—the first of its kind to Berhad’s ICP and IMTN Programme of RM300 million in
be listed on the Malaysian stock exchange, which underscores nominal value. The division also advised on Impiana Hotels
Kenanga’s strength in bringing non-conventional listing Berhad’s Redeemable Convertible Notes Programmes to raise
aspirants to Bursa Malaysia. The division had also successfully funds for debt repayment and working capital; and Sarawak
listed a digital solution and application development specialist, Cable Berhad’s proposed issuance of Redeemable Convertible
Agmo Holdings Berhad on the ACE Market of Bursa Malaysia Debts with a total value of RM48.4 million.
with a strong debut of 207.7% premium over its initial public
offering (“IPO”) price. In the course of the year, the division also In corporate banking, the division maintained a prudent
filed for the listing of another three (3) IPOs—Synergy House management approach to monitor its portfolio’s credit risk
Berhad (ACE Market), Skyworld Development Sdn Bhd (Main given the increasingly volatile macroeconomic environment.
Market), and Neptune Asia Services Sdn Bhd (Main Market)— The division is growing its portfolio cautiously, by undertaking
which are targeted to list by 2Q FY2023. The division also stringent credit assessments for all corporate lending prospects.
advised on the reverse acquisition of G Neptune Berhad by As such, its loan portfolio currently stands at RM571 million as
Southern Score Sdn Bhd, raising a total of RM108.9 million we cautiously grew in 2022.
in conjunction with the backdoor listing, and participated as
Joint Underwriter in Yinson Holdings Berhad’s RM1.2 billion In Islamic finance, the division’s Shariah Committee continued
rights issue, being one of the largest equity fundraisings in its role as Shariah advisor to sukuk programmes established by
the market since the pandemic which was oversubscribed debt capital market clients, including Gabungan AQRS Berhad
by 22.3%. The transaction was awarded ‘The Edge Deals of and Skyworld Capital Berhad. It also assisted the Equity
2022: Best Fundraising (Non-IPO)’ award. In addition, the Broking division in developing a new Islamic Securities Selling
Investment Banking division was also the Joint Underwriter and Buying Negotiated Transaction product which came on
for the RM974 million Capital A’s rights issue, winning the stream in August 2022.
‘Best Debt Restructuring Deal of the Year 2022’ at the Alpha
Southeast Asia 16th Annual Best Deal & Solution Awards 2022. Meanwhile, FY2022 PBT for the Group’s Treasury business
moderated to RM6.0 million, down RM3.1 million from the
In the debt capital market, the division acted as the Joint Lead year before due to significantly lower interest income amidst
Manager and played a significant role in the book building a backdrop of rising interest rate scenario which adversely
of the RM1.5 billion issuance under Perbadanan Tabung affected the bond market. The prudent stance in reducing
Pendidikan Tinggi Nasional (PTPTN)’s existing RM12.3 billion its bond portfolio since 2021 has minimised the losses
Sukuk Murabahah Programme, as well as Prasarana Malaysia from the bond market and Kenanga’s liquidity ratios remain
Berhad’s RM1.4 billion issuance under its two (2) existing healthy despite strong competition in the deposit market
Sukuk Murabahah Programmes. due to continuing efforts to diversify its client base. Treasury
will continue its product diversification initiatives to increase
profitability and achieve higher sales volume.
18
Annual Report 2022

Asset and Wealth Management
The Group’s Asset and Wealth Management division consists of In FY2022 KIG expanded upon its Sustainability Blueprint
Kenanga Investors Berhad (“KIB”), Kenanga Islamic Investors to include the fixed-income asset class by establishing an
Berhad (“KIIB”), and I-VCAP Management Sdn Bhd (“I-VCAP”) in-house ESG assessment to perform positive screening for
collectively known as Kenanga Investors Group (“KIG”), as well bonds/ sukuk based on independent and accredited external
as Digital Investment Management and Wealth Management data sources. On the equity front, a more comprehensive sector/
units, where offerings include a range of conventional collective industry-focused assessment was established for sectors with
investment schemes, robo-advisory, portfolio management high ESG risk. To effectively manage and monitor risks, various
services as well as alternative investments. factors and indicators specific to respective industries such as
palm oil, oil & gas, banking & finance, power, and mining were
Despite the overall downtrends in the market, our Asset and integrated into this process for a more holistic perspective.
Wealth Management division recorded exceptional growth in
FY2022, with a PBT of RM54.2 million over RM34.9 million the For its stellar fund performance, KIG won several industry
previous year. These results were due to significantly higher accolades including the 2023 Refinitiv Lipper Fund Awards
earnings from management and performance fees resulting where the Kenanga Malaysian Inc Fund won ‘Equity Malaysia
from the ongoing expansion of KIG’s business and widening of Diversified for 10 Years’ while the Kenanga Managed Growth
its client base through multi-segmental products and services Fund won ‘Mixed Asset MYR Flexible for 3, 5 and 10 Years’. KIG
targeted individually at mass-retail, middle-high-income, and itself won the ‘Malaysia Provident Funds Group Award’. At Asia
ultra-high-net-worth investors. Asset Management’s 2023 Best of the Best Awards, KIG was
named ‘Malaysia Best Equity Manager’, ‘Malaysia Best Impact
To meet the diverse demands of its investors, KIG has Investing Manager’, ‘Malaysia Best House for Alternatives’,
implemented a multi-segment and multi-product strategy. and ‘Malaysia Most Improved Fund House’. KIB’s Chief
This was illustrated through the expansion of the Kenanga Executive Officer and Executive Director, Datuk Wira Ismitz
Sustainability Series with the launch of the Kenanga Matthew De Alwis was named ‘Malaysia CEO of the Year’.
Sustainability Series: High Yield Bond Fund, the first KIG also received recognition at the 2022 Morningstar Fund
Sustainable and Responsible Investment (“SRI”)-qualified Awards Malaysia which awarded the Kenanga Growth Fund
high yield bond fund in Malaysia and the Kenanga Sustainability Series 2 (USD) with its inaugural win with the best ‘Malaysia
Series: World Quality ESG Fund which aims to deliver long-term Large-Cap Equity’ title.
capital growth by investing in securities that exhibit quality and
favourable ESG characteristics. Following KIG’s appointment The Asset Benchmark Research ranked KIG as Highly
as the Fund Manager for Dana Wakaf Bencana in 2021, Commended on its list of ‘Top Investment Houses’ in the Asian
the Kenanga Sustainability Series: Emergency Waqf Musa’adah Local Currency Bond Awards for Asset Managers.
Fund was launched to generate sustainable returns that will
directly benefit disaster victims in the country by helping them The FSMOne Recommended Unit Trusts Awards 2022/2023,
return to normalcy. Returns will also go towards providing new named Kenanga Growth Fund Series 2 as ‘Sector Equity –
or improving existing climate change disaster-control-related Malaysia Focused’ and Kenanga Shariah Growth Opportunities
facilities or equipment. Fund as ‘Sector Equity - Malaysia Small to Medium Companies
(Islamic)’. At the Sustainability Performance Awards, the
KIB continues to expand its network of licensed unit trust and Group’s Sustainable Products award recognised KIG’s multiple
private retirement scheme consultants which has grown to ESG-linked funds through the Kenanga Sustainability Series,
nearly 5,500 in FY2022 compared to 4,500 in FY2021. particularly the first SRI-qualified bond fund in Kenanga
Sustainability Series: High Yield Bond Fund.
19

The division’s focus on delivering sustainable performance, 50% growth year-on-year compared to the previous year.
high-quality advice and exceptional customer service has Besides these developments, KFSB continued to build on its
driven customer satisfaction and loyalty despite the volatilities three (3)-year strategic business blueprint, ASCENT 2023, by
of the last three (3) years. Moving forward, KIG will continue undertaking annual nationwide retail campaigns in FY2022 to
to focus on offering wealth protection solutions, such as encourage greater retail client trade of BMD and CME Group
insurance and private trust, to help preserve and grow products.
investors’ wealth. To better serve its clients, KIG will continue
expanding its distribution channels, including opening up KFSB continued to be recognised as a top Malaysian futures
more branches nationwide, improving upon its existing digital broker with two (2) awards received at the Bursa Excellence
platforms, and growing its agency force. With its multi-segment Awards 2022, which are ‘Best Institutional Derivatives Trading
and multi-product framework, sophisticated ESG blueprint, Participant’ (Champion) and ‘Best Overall Derivatives Trading
and commitment to sustainability, KIG is poised to continue Participant’ (1st Runner Up).
delivering value to its investors for years to come.
In FY2023, KFSB will focus its revenue-generating strategy
towards growing both the inbound and outbound business
supported by the increased product offerings as the division
aims towards further improving the company’s bottom line and
Listed Derivatives Business
continuing the profitability momentum.
In FY2022, Kenanga Futures Sdn Bhd (“KFSB”) made a return

to profitability, and the division’s operating revenue grew 27%
to RM19.7 million on the back of significant increases in both
inbound and outbound trading activities—at a composition Money Lending and Financing
ratio of 80:20 respectively. KFSB’s execution volumes
registered outstanding growth of 95% year-on-year, with an
unprecedented nine (9) million contracts. These developments The Group’s Money Lending and Trade Financing division
corresponded to a record-breaking year at Bursa Malaysia registered PBT of RM0.1 million in FY2022 compared to
Derivatives Berhad (“BMD”), with the overall market volume PBT of RM1.6 million the preceding year. The reduction was
growing 3% to 19.2 million contracts. As a result, KFSB due primarily to an impairment provision of RM1.8 million—
recorded PBT of RM2.1 million in FY2022 over Loss Before Tax expected to be reversed in 2023, weaker market demand for
(“LBT”) of RM1.8 million in the preceding year. asset monetisation and structured lending as well as more
prudent lending.
In building up the business profitability momentum and
ensuring optimum performance for the year, KFSB consolidated Given these challenges, the division intensified engagement
its organisational structure into four (4) departments: Sales & with other business divisions within the Group to increase the
Broking, Dealing Global Market, Business Development & loan book size, which grew to RM109.7 million from RM94.4
Strategy, as well as Operations & Clearing Services, Listed million the previous year. These efforts are expected to bear
Derivatives. The formation of the Sales & Broking department fruit in 2023 as Malaysia, and worldwide economies recover.
was aimed at targeted sales coverage for both Global and
Domestic Institutions/ Corporations & Retail/ High Net Worth
Individuals segments. As a result, KFSB’s institutional volumes
for Crude Palm Oil Futures (FCPO) recorded historical highs in
FY2022 compared to the previous year. Meanwhile, the retail
volumes for CME Group’s products have seen a significant
20
Annual Report 2022

RISK MANAGEMENT 2023 OUTLOOK
Despite the gradual global recovery, ripple The domestic economy is expected to continue growing, albeit at a
effects of the COVID-19 pandemic continued moderate pace, due to the normalisation of economic activity after the
to be felt throughout of FY2022 with uneven pandemic and the prospect of a global economic slowdown. For FY2023,
trajectories caused by prolonged domestic we forecast a GDP growth of 4.7% from 8.7% in 2022, supported mainly
political uncertainty, ongoing geo-political by resilient domestic demand due to an increase in household income and
conflict, especially between Russia and Ukraine, a decrease in unemployment rate. Additionally, growth drivers include the
persistent supply chain disruptions, as well as expected rise in tourist arrivals and spending after China lifted its COVID-19
rising inflationary pressures induced by higher restrictions at the beginning of 2023, and ongoing multi-year infrastructure
costs of energy, food, commodities and labour and development projects under the 12th Malaysia Plan.
around the world.
Furthermore, the unity government with a majority in Parliament will help
Against this unwelcoming macroeconomic reduce political uncertainty and boost investor confidence, as reflected by
backdrop and volatile market conditions, the recent announcements on investments. The unity government led by Prime
Group resolved to chart a path of prudence Minister Dato’ Seri Anwar Ibrahim remains in favour of an expansionary policy
and diligence in our risk management practices as reflected in the revised 2023 Federal Budget, which is expected to mitigate
for the year. Two (2) key motivating factors— the looming global economic slowdown following the impact of rapid increase
resilience and agility—guided our actions in in interest rates by major central banks and the ongoing banking crisis in
managing key risks in the increasingly complex the US. This will include the continuation of various subsidies as well as a
and dynamic trading, financing, and digital record-high allocation for development expenditure to boost infrastructure
services ecosystem. development and cushion the economy from any sharp slowdown.
For FY2022, Kenanga committed to a strategy On our business front, the Group is cautiously optimistic of our 2023
designed to safeguard portfolio asset quality with outlook, given we are still vulnerable to downside risks mainly from the
robust risk controls and measures. The Group ongoing volatility of the capital markets as a result of geopolitical events and
continued to take a defensive risk posture with a recessionary risks in major economies. Nevertheless, we remain resolute in
conservative risk-based approach to vulnerable our efforts to continue driving innovation, digitalisation, and sustainability in
accounts and sectors. We also intensified the marketplace.
portfolio review assessment, providing close
scrutiny of targeted portfolios with rigorous stress APPRECIATION
tests and scenario analyses while also pursuing
a highly selective credit lending strategy to Once again, I would like to express my appreciation to our Founder Emeritus
maximise sustainable growth and performance. and Adviser, YM Tan Sri Dato’ Paduka Tengku Noor Zakiah Tengku Ismail,
whose advice, guidance and leadership is an utmost source of inspiration in
The Group remains committed to sustaining risk these turbulent days.
resilience throughout our business operations.
As such, all risk management processes, policies I thank the Board of Directors, especially the Chairman, YAM Tan Sri Dato’
and procedures are constantly reviewed and Seri Syed Anwar Jamalullail whose care, diligence and uncompromising
enhanced, supported by a transparent and robust commitment to the highest standards of good governance and integrity
governance structure. Key activities in FY2022 continue to reinforce who we are and what Kenanga Group stands for.
included the provision of sustainable operational
resilience from digital technology adoption and I also wish to record my gratitude to all employees of Kenanga for their
the significant decentralisation of our working commitment and hard work as well as all our business partners, clients,
environment. With greater interdependence suppliers and all stakeholders who have stayed the course with us through
through digital networks, cybersecurity remained 2022.
an important emerging operational risk area for
the Group. The Group continued to enhance our Finally, I would also like to register my appreciation to Bank Negara Malaysia,
cyber-resilience through new technologies and the Securities Commission Malaysia, and Bursa Malaysia Berhad for their
solutions as well as more robust systems and guidance, and I also extend my appreciation to our valued shareholders for
infrastructure. their continued trust and support.
More information on Risk Management and Internal Controls

DATUK CHAY WAI LEONG
can be found on pages 110 to 114 of this Annual Report.
Group Managing Director
21
OUR SUSTAINABILITY STATEMENT
ABOUT THIS STATEMENT
This Sustainability Statement 2022 (“the Statement”) is to be read together

with our Sustainability Report 2022. This Statement provides an overview
of our approach towards managing our stakeholder-relevant environment,
social and governance (“ESG”) topics, goals and performance.
Following the release of our inaugural Sustainability Report in 2021, further enhancements have been made in this year’s
disclosures which include: the expansion of Scope 1 and 2 Greenhouse Gas (“GHG”) emissions data inclusive of branch
offices nationwide, the expansion of Scope 3 disclosure to disclose business travel and the inclusion of a new material
matter, Employee Health, Safety and Wellbeing into our materiality assessment.
Reporting Scope and Boundaries
The contents of this Statement encompass full year data for the fiscal year ending in December 2022, from 1 January 2022
to 31 December 2022 (“2022” or “FY2022”), which covers our operations in Malaysia, including our Kuala Lumpur-based
headquarters, Kenanga Tower and branch offices nationwide.
Guidelines and Standards
This Statement is prepared as a summary highlight to our Sustainability Report 2022, which complies with Bursa Malaysia
Securities Berhad’s Main Market Listing Requirements and has been prepared in reference with the Global Reporting
Initiative (“GRI”) Standards. The GRI Content Index can be found in the Sustainability Report, pages 94 to 96, and we have
further aligned our ESG disclosures with the following:
• Bursa Malaysia Securities Berhad (“Bursa Securities”) Sustainability Reporting Guide (3rd Edition);
• United Nations Sustainable Development Goals (“UN SDGs”);
• Recommendations of the Task Force on Climate-Related Financial Disclosures (“TCFD”);
• Joint Committee on Climate Change (“JC3”)’s TCFD Application Guide for Malaysian Financial Institutions;
• Bank Negara Malaysia (“BNM”)’s Climate Change and Principle-based Taxonomy (“BNM CCPT”); and
• United Nations Global Compact (“UNGC”)’s Ten Principles.
We have benchmarked our ESG disclosures with industry-relevant ESG Ratings and Frameworks primarily FTSE Russell’s
ESG Ratings and Sustainability Accounting Standards Board (“SASB”) indicators and GHG Protocol Corporate Standard.
Statement Assurance
This Sustainability Statement has been reviewed and approved by the Group Sustainability Management Committee,
Group Governance, Nomination & Compensation Committee, Audit Committee, and the Board of Directors. Moving
forward, we aim to seek assurance for our sustainability reporting and statement.
22
Annual Report 2022
OUR CONTRIBUTION TO UN SDGS AND UNGC’S TEN PRINCIPLES
Below are the eleven (11) SDGs to which Kenanga contribute towards. Additionally, as a signatory member of the UNGC Network,
we have also aligned our sustainability efforts with the UNGC’s Ten Principles.
Principle 1: Business should support and

Principle 8: Undertake initiatives to promote
respect the protection of internationally
greater environmental responsibility
proclaimed human rights
Principle 1: Business should support and

Principle 8: Undertake initiatives to promote
respect the protection of internationally
greater environmental responsibility
proclaimed human rights
Principle 7: Businesses should support a

Principle 6: The elimination of discrimination
precautionary approach to environmental
in respect of employment and occupation
challenges
Principle 9: Encourage the development Principle 10: Businesses should work against
and diffusion of environmentally friendly corruption in all its forms, including extortion
technologies and bribery
Principle 2: Make sure that they are not Principle 1: Business should support and
complicit in human rights abuses respect the protection of internationally
Principle 3: Businesses should uphold the proclaimed human rights
freedom of association and the effective Principle 2: Make sure that they are not
recognition of the right to collective complicit in human rights abuses
bargaining Principle 6: The elimination of discrimination
Principle 4: The elimination of all forms of in respect of employment and occupation
forced and compulsory labour Principle 7: Businesses should support a
Principle 5: The effective abolition of child precautionary approach to environmental
labour challenges
Principle 6: The elimination of discrimination Principle 8: Undertake initiatives to promote
in respect of employment and occupation greater environmental responsibility
Principle 9: Encourage the development
and diffusion of environmentally friendly
Principle 6: The elimination of discrimination technologies
in respect of employment and occupation Principle 10: Businesses should work against
corruption in all its forms, including extortion
and bribery
For more information on how we have mapped our disclosures to UNGC’s Ten Principles, please refer to pages 16 to 18 of our Sustainability Report 2022.
23
OUR ESG FRAMEWORK
Our ESG Framework serves as a focal point for how we articulate our sustainability aspirations for the long-term. Anchored upon
four (4) key pillars – Sustainable Economic Growth, Environmental Stewardship, Empowering People and Communities, and Good
Governance, the framework guides our efforts in addressing ESG issues that are material to our business while aligning with our
targets and strategies.
OUR SUSTAINABILITY VISION
As a leading independent investment bank, Kenanga is committed to promoting and adopting business-relevant sustainable
practices by embedding ESG in our core business strategy and operations, while considering the ESG risks and opportunities
in shaping up sustainable investment products and services towards contributing to the best interests of our stakeholders.
Sustainable Economic Growth Environmental Stewardship

Integrate ESG factors into our business decisions and value chain Promote climate positive culture within the organisation and relevant
and manage ESG risks and opportunities as we innovate to build a external stakeholders to attain a low carbon economy.
sustainable future.
Responsible Investment Climate Impact

Incorporate ESG factors into our investment processes, offer and Take ownership of climate risks and opportunities of our operations
promote sustainable products and solutions and take an active through monitoring environmental performance, identifying and
stewardship role in the companies in which we invest. practising behaviours to promote climate positive action and
outcomes.
Digitalisation
Leverage technological advancements to develop secure, meaningful
and innovative products and solutions that will help shape the future
of investing.
Empowering People and Communities Good Governance

Create a positive impact on our employees, clients, business Lead a responsible business underpinned by a robust compliance
associates, as well as communities in need. culture and high levels of ethical standards.
Diversity, Inclusion and Wellbeing Good Business Conduct

Inculcate an equitable workplace culture that recognises the unique Promote and embed good business conduct and high standards
needs and contributions of employees and where employee rights, of integrity throughout the organisation, operate ethically and
safety, health and wellness are promoted. transparently and in compliance with applicable laws and regulations.
Community Investment
Enhance financial literacy for investors and the community through
education. Reaching out to communities in need through targeted
social investments and employee volunteerism.
24
Annual Report 2022
WHAT IS MATERIAL TO US
In 2022, we conducted a materiality assessment to identify and prioritise ESG topics that are relevant to Kenanga and its
stakeholders. The biennial assessment ensures that we consider and integrate these ESG topics when identifying opportunities
and risks in our business operations, as well as to further guide the Group’s ESG strategy and reporting.
As part of our FY2022 materiality assessment, we conducted a survey that received 1,326 responses from ten (10) different
stakeholder groups, including Board of Directors, employees, remisiers and agents, shareholders and investors, clients, regulatory
bodies, community organisations, suppliers, media, and the public.
Based on the updated results of the survey in FY2022, the materiality matrix largely remained consistent from the previous
assessment. However, there is an overall higher perceived of importance across all the identified ten (10) material topics.
Good Sustainable Empowering People Climate

Governance Economic Growth and Communities Impact
HIGH
Cyber Security
Significance to Kenanga’s Stakeholders
Client Experience Good Business

Conduct
MEDIUM Employee Health, Digitalisation

Safety and Wellbeing
Talent Attraction and

Diversity and Management
Responsible
Inclusion Investing
Community Investment
LOW Climate Impact
Significance to Kenanga’s Business Operations
For more information on our materiality matrix process and stakeholder engagement, please refer to page 21 of our Sustainability Report 2022.
25
OUR SUSTAINABILITY GOALS AND ROADMAP
Guided by our ESG Framework, we have developed a set of Sustainability Goals and Targets and a Three (3)-Year Sustainability
Roadmap (“the Roadmap”) in FY2022 to operationalise and deliver our sustainability vision and aspirations.
Sustainable Economic Environmental Empowering People and Good

Growth Stewardship Communities Governance
Integrate ESG factors Promote climate positive Create a positive impact Lead a responsible
into our business culture within the on our employees, clients, business underpinned by a
decisions and value organisation and relevant business associates, as robust compliance culture
chain and manage ESG external stakeholders well as communities in and high levels of ethical
risks and opportunities to attain a low carbon need. standards.
as we innovate to build a economy.
sustainable future.
Goal 1 Goal 1 Goal 1 Goal 1

Increase support of Accelerate enterprise Maintain and promote All material matters to be
sustainable economic decarbonisation workforce diversity, and supported by adequate
activities maintain anti-discrimination policies and procedures in
Goal 2 culture line with best practices and
Goal 2 Build awareness, knowledge regulatory requirements
Champion cloud-first and skills needed to enable Goal 2
strategy to increase employees and stakeholders, Integrate mental health as a Goal 2
scalability and flexibility to contribute positively to topic of overall wellbeing of Lead industry fraud
climate actions employees awareness through
Goal 3 an interactive flagship
Increase automation for Goal 3
programme
productivity Increase social impact
towards marginalised and
Goal 4 deserving communities
Increase digital distribution through consistent
of products and sevices programmes and initiatives
Goal 4
Expand investing literacy
reach through online and
offline channels
2023 2024 2025

Our Roadmap
Focus Areas Strengthening ESG Building Sustainable Amplifying
Foundation Ecosystem ESG Impact
For more information on our Sustainability Roadmap 2023-2025, please refer to page 24 of our Sustainability Report 2022.
26
Annual Report 2022
MANAGING OUR SUSTAINABILITY RISKS
OUR APPROACH
For effective management of risks, the Group is governed by the Enterprise Risk Management (“ERM”) Framework and the
philosophy adopted is based on the ‘Three Lines of Defense’ approach. The ERM Framework defines the roles and responsibilities
throughout the organisation to ensure accountability and ownership, as well as sets out the principles of sound corporate
governance to assess and manage risks to ensure risk-taking activities are aligned with the Group’s long-term viability and its
capacity to absorb losses. The Group Board Risk Committee is responsible to ensure the Group’s activities are consistent with
its approved risk appetite, strategies and policies.
For more information on our Sustainability Risk Management approach, please refer to page 25 of our Sustainability Report 2022 and for more information
on our Risk Management Framework and Governance, please refer to the Statement on Risk Management and Internal Control from pages 110 to 114 of this
Annual Report.
RESPONSE TO ESG AND CLIMATE RISKS
We recognise the impact of climate change as a non-diversifiable risk to Kenanga’s business activities and financial operations.
We have been gradually enhancing our disclosures in line with the TCFD recommendations and mapped against the prescribed
four (4) pillars – Governance, Strategy, Risk Management, as well as Metrics and Targets. In 2022, we integrated the Climate
Change Risk Management Framework (“CCRM Framework”) to strengthen our climate risk management strategy for business
activities. The implementation progress includes training on CCRM Framework’s Risk Assessment Criteria (“Climate Change
RAC”) in making decisions on investments.
To build on this, we are further enhancing our policy and practice by incorporating the new guidelines introduced by BNM in
November 2022, including the Climate Risk Management and Scenario Analysis (“CRMSA”) and JC3’s TCFD Application Guide
for Malaysian Financial Institutions issued in June 2022 into the Group’s business strategies and enterprise risk management
framework. The implementation of these guidelines will be completed in phases and it is in line with regulatory timeline by the
end of 2024.
For more information on our TCFD Reporting by the four (4) pillars and Climate Change Risk Management Framework, please refer to pages 28 to 31 of our
Sustainability Report 2022.
Managing Our Supply Chain Risk
Our Group Procurement Policy provides employees with a guiding framework to achieve and maintain
high standards of professionalism, transparency, and accountability in our procurement decisions.
Our ‘Know Your Vendor Assessment’ allows us to ensure we maintain high standards of ethics and
For more information
integrity in our business partnerships with contractors, consultants, suppliers, agents and individuals
on our Group Code of
who undertake work for the Group. Our vendors undergo an extensive due diligence process that Conduct for Vendors,
reviews risk indicators resulting in a score that allows us to manage our front-end risk, including please scan the QR
corruption risk assessments. Moving forward, we will engage our vendors and enhance our vendor code below:
assessment framework to integrate environmental and social risk assessments in line with our
Sustainability Roadmap 2023-2025 to integrate ESG screening in our supplier onboarding process.
In 2022, our local suppliers’ proportion are 89.1% and local business procurement spent was over
RM65 million.
For more information on our supply chain risk, please refer to page 32 of our Sustainability Report 2022.
27
GOOD GOVERNANCE
We remain cognisant of our responsibilities to our stakeholders as we strive to raise the bar on good governance
by incorporating ethical business practises throughout the organisation.
MATERIAL TOPICS: OUR GOALS:
Goal 1 All material matters to be supported by adequate policies and

Good Business Conduct
procedures in line with best practices and regulatory requirements.
Regulatory Compliance Lead industry fraud awareness through an interactive flagship

Goal 2
programme.
UN SDGs
GOOD BUSINESS CONDUCT

[GRI 205]
Our Approach to Sustainability Governance
Establishing a sustainability governance structure with clearly defined roles and responsibilites is paramount to ensure
accountability and effectiveness in execution of sustainability initiatives within the Group. As the Group’s highest governing
body, the Board of Directors drives the overarching leadership, strategy, and oversight of the Group’s ESG approach to risks
and opportunities, supported by the relevant committees including Group Governance, Nomination & Compensation Committee,
Audit Committee, Group Board Risk Committee, Group Risk Committee as well as Group Sustainability Management Committee
and supported by Business Divisions & Operations.
REGULATORY COMPLIANCE
A key component of our strategy to build an ethical culture includes designing training programmes and awareness initiatives
to embed our principles of ethics and integrity so they are reinforced, understood and practised throughout every level of our
workforce. Some of the key measures we implemented include:
Communicate regulatory issuances and updates to

Policy & Procedure Governance System, an internal
employees
repository platform containing our policies and
procedures accessible for employees
Mandatory training for employees on compliance
matters
Annual e-tests to reinforce our employees’ grasp

Annual flagship programmes on conflicts of interest,
and knowledge of good governance and business
fraud, bribery and corruption, AML/CFT/TFS and
practices were rolled out
whistleblowing
28
Annual Report 2022
Key Policies, Frameworks and Commitment

Embedding Ethical Principles Statements
We are committed to ensuring that our employees are well Kenanga takes a zero-tolerance approach to all
equipped to meet the challenges of their respective roles and forms of financial crime including bribery, fraud,
demonstrate behaviours that align with the Group’s values. corruption, the direct or indirect financing of
terrorism, money laundering, proliferation financing
Our training sessions are delivered in a blended format that and any other forms of illicit activity connected to
includes reading materials and explainer videos on topics such unethical business practices. Our Group Regulatory
as Anti-Bribery and Corruption, Anti-Money Laundering/Counter- and Corporate Services has established a robust
Terrorism Financing/Targeted Financial Sanctions (“AML/CFT/ governance foundation, including corporate policies,
TFS”), and Anti-Fraud practices which were made mandatory for procedures, and control measures to help the Group
all new hires. navigate risks and respond to any incidents of non-
compliance or unethical behaviour. To safeguard our
The Group Financial Crime Compliance (“GFCC”) Department operations as well as the wider financial system, we
has conducted an Enterprise-Wide Risk Assessment (“EWRA”) have designed and implemented several internal
to assess potential AML/CFT/TFS risks. The EWRA considers policies, frameworks and standards. In 2022, we
customers, country, product and services, and transactions or have updated the following policies:
delivery channel risk. Currently, no significant risks have been
identified. • PDPA Data Access and Retention Procedure;
• Cyber Security Procedure;
6th Fraud Awareness Week (“FAW”) • Technology Risk Management Framework; and
• Group Donation Policy.
As part of Kenanga’s ongoing commitment to combat fraud
in the financial industry, the Group organised its sixth (6th) Future Outlook
annual Fraud Awareness Week (“6th FAW”) in collaboration
with the Association of Certified Fraud Examiners’ In line with regulatory requirements, we remain
(“ACFE”) International Fraud Awareness Week. This committed to maintaining the highest standards of
flagship campaign aligns with the UNGC’s 10th Principle good governance. Moving forward, we will continue
to emphasise the need for businesses to work against to enhance our governance practices by regularly
corruption in all its forms. The Annual Regulatory Seminar reviewing and updating our policies as relevant.
(“ARS”) has been incorporated as one of the key events for
the annual FAW.
For more information on Good Governance, please refer to
Approximately 85% of our employees completed e-tests pages 33 to 42 of our Sustainability Report 2022 and the
Ethics and Compliance Statement on pages 97 to 109 of
on ethics and compliance as well as the landscape and this Annual Report.
regulatory expectations on AML/CFT/TFS which was
made mandatory to all our employees during the ARS, with
97.5% achieving a score of 80% or higher. The 6th FAW
drew over 2,000 participations in FY2022, with attendees
from external organisations and our employees.
29
Sustainable Economic Growth
Our approach to integrating ESG considerations into our core operations, investing, and decision-making
processes is a crucial component of our strategy to deliver innovative sustainable finance and investing
products for our clients. We employ a multi-faceted approach to responsible investment, engaging in both
product development and active involvement in the businesses in which we invest.
Responsible Investing Goal 1 Increase support of sustainable economic activities.
Goal 2 Champion cloud-first strategy to increase scalability and flexibility.

Digitalisation
Goal 3 Increase automation for productivity.
Cyber Security
Goal 4 Increase digital distribution of products and sevices.
Client Experience
UN SDGs
RESPONSIBLE INVESTING
[GRI 3-3]
Our Investment Strategy
Kenanga Investors Group (“Kenanga Investors”) or (“KIG”) is the asset and wealth management arm of the Group. As part of
our commitment to responsible investing, KIG works closely with asset owners, regulators and a broad range of market players
to integrate ESG considerations into our investment process. Kenanga Investors has been a signatory to the Malaysian Code for
Institutional Investors since 2017, and our membership in the Institutional Investors Council and active participation in JC3 reflect
our dedication to advancing the ESG agenda while accelerating a swift response to the climate risks in our sector.
Following the introduction of the Sustainability Blueprint in 2021, KIG expanded its Blueprint to include ESG assessment to perform
positive screening for bonds and sukuk-based on independent and accredited external data sources. This is also supported by an
updated sector-based assessment with high ESG risk focusing on industries such as palm oil, oil & gas, banking & finance, power,
and mining for a more holistic perspective. Further to this, KIG participates in active stewardship through stakeholders engagement,
and the exercise of voting rights in investee companies.
For more information on our ESG Integration Strategy, please refer to pages 44 to 45 of our Sustainability Report 2022.
30
Annual Report 2022
Our Sustainable Investment Products
We are dedicated to expanding our investment product offerings as we continue to progress along the path of responsible
investing by providing our clients with a wider range of ESG-linked investment options. In 2022, we launched three (3) funds which
qualifies as the SC’s Sustainable and Responsible Investment (“SRI”) fund, under our Kenanga Sustainability Series, receiving
multiple accolades for the focus in ESG. In the same year, KIG was appointed by several public asset owners in Malaysia to
manage their first-ever sustainability funds.
Kenanga Sustainability Series
The Fund is Malaysia’s first SRI-qualified high yield bond fund. The Fund seeks to
High Yield Bond Fund provide income and capital growth by investing in the Global High Yield ESG Bond
Index Fund managed by Northern Trust Asset Management.
The Fund seeks to provide capital growth by investing in the NT World Quality ESG
World Quality ESG Fund
Fund managed by Northern Trust Asset Management.
As a qualified SRI product, the Kenanga Sustainability Series: Emergency Waqf

Musa’adah Fund sets out to generate sustainable returns that will directly benefit
disaster victims in the country by helping them return to normalcy. The Fund aims
to primarily provide income distribution and achieve capital growth by investing
Emergency Waqf Musa’adah Fund
in local and global diversified portfolios of Shariah-compliant equities, Shariah-
compliant equity-related securities, sukuk, Islamic money market instruments, or
Islamic deposits that integrates both Shariah principles and principles of sustainable
investing.
For more funds under the Kenanga Sustainability Series, please visit: https://www.kenangainvestors.com.my.
Focus on Green Economy
Kenanga Private Equity Sdn Bhd (“KPE”), our private equity arm, actively strives to explore climate-friendly ventures, as
well as companies with a strong ESG agenda. As at 31 December 2022, approximately 28% of KPE’s portfolio are focused
on the renewable energy sector.
In addition, Corporate Banking at Kenanga continues to incorporates ESG factors into its lending and financing activities.
As of 31 December 2022, 5.3% of loan and financing portfolio under Kenanga’s Corporate Banking division in green
lending and financing are related to renewable energy, green technology and climate change mitigation activities.
For more information on our Climate Change RAC, please refer to page 27 of our Sustainability Report 2022.
31
Our Internal Stock Scoring Methodology
In 2022, Kenanga’s Equity Broking Research Department developed an internal scoring system to rate public listed stocks
premised on Bursa Malaysia’s Sustainability Reporting Guide, the Sustainability Accounting Standards Board and GRI’s
primary ESG topics. Guided by the methodology, we reach out to businesses on a regular basis to acquire updates on their
ESG strategy, goals, and accomplishments to better understand their sustainability ambition and intent.
For more information on our ESG Scoring Methodology and industry engagement activities, please refer to page 48 of our Sustainability Report 2022.
Future Outlook
We intend to offer more sustainable investment products with a focus on thematic investing in sectors related to energy transition,
water and waste management, food security and others as relevant, while being cognisant of the interdependencies of a just
transition economy. As part of our efforts to further understand our portfolios’ exposure on ESG risks and opportunities, we will
deepen engagement with our investee companies to better understand their ESG aspirations and plans.
DIGITALISATION
[GRI 3-3]
OUR APPROACH TO DIGITALISATION
IT Governance The Group Board Digital Innovation & Technology Committee (“GBDITC”) supports the Board in
and Strategy providing direction and oversight over technology-related matters, including risks, in line with internal
and relevant regulatory requirements.
IT Strategy In 2022, a Five (5)-Year IT Strategy was developed to provide prudent guidance on how digitalisation will
2023-2027 be prioritised to support wider enterprise goals while promoting economic growth. The strategy will be
rolled out in phases from 2023, and will be reviewed annually to ensure it remains relevant and effective.
OUR PROGRESS IN 2022
Going Digital at Kenanga
Kenanga is committed to advancing financial inclusion through digitalisation by embracing technology advancement and
innovation as a means to increase our clients’ seamless access to financial products as well as to reach the underserved segment.
SuperApp Wealth-as-a-Service (“WaaS”)

Signed a Memorandum of Understanding with Ant Group Along with the SuperApp, the upcoming introduction of
in 2022 to develop Malaysia’s first Wealth SuperApp, WaaS to our ecosystem partners will allow our suite of
which will serve as a centralised platform for our digital wealth services to be embedded onto their platforms for
financial and wealth solutions, as well as lifestyle services. their audiences at a swift go-to-market pace.
Built on Ant Group’s Mobile Platform as-a-Service, the
SuperApp will offer a robust and secure solution to meet
the needs of our clients.
32
Annual Report 2022
Rakuten Trade Kenanga Digital Investing (“KDI”) New Digital Client On-boarding
(“DCO”) Service
RM111 billion worth of stocks A fully automated A.I.-driven A platform which allows clients to
were transacted during the year, robo-advisor designed to simplify open an account online from the
while approximately 21,000 new how Malaysians save and invest. comfort of their homes without
users signed up on Rakuten Trade, Licensed by the Securities having to visit a Kenanga branch.
bringing the total customer base to Commission Malaysia, the KDI
more than 257,000. platform offers two (2) convenient
products - KDI Save and KDI Invest.
Our Digital Culture
We continue to strengthen our internal competencies as we intensify our digital initiatives across the organisation, including the
digitalisation of our key functions to maximise operational efficiency. Listed below are some of the key digital initiatives in 2022.
Digital Efficiency in Kenanga
Key Initiatives
Remisier’s Futures Account Kenanga’s Digital Robotic Process Treasury Relationship

Service Portal Opening Workflows (“iLeap”) Automation (“RPA”) Manager Platform
Cloud Migration Programme
Our Three (3)-Year Cloud Migration Strategy is in line with our overall group-wide digital transformation ambitions to drive
innovation and growth. Migrating to cloud infrastructure services will provide the Group enhanced scalability, performance,
security and long-term cost-effectiveness.
As part of our efforts to facilitate a seamless cloud migration process, we are progressively upskilling our Information Technology
(“IT”) workforce through Azure Enterprise Skilling Initiative offered by Microsoft to further build technical skills which also includes
training and certification offerings. In FY2022, our IT personnel attended over ten (10) Azure training courses with a total of 840
training hours logged.
Future Outlook
We continuously assess and make improvements to our systems and processes to ensure we remain at the forefront of digital
transformation in the financial industry. Amongst some of the new solutions that we are looking forward to in 2023 include the
launch of the first Wealth SuperApp in Malaysia, a new FX platform that will support our Treasury products, Project Omni to fully
digitalise our end-to-end processes, and also enhanced features on our DCO Service.
For more information on our key digitalisation transformation initiatives, please refer to page 49 of our Sustainability Report 2022.
33
BOOSTING CYBER SECURITY
[GRI 418]
OUR APPROACH TO CYBER SECURITY
At Kenanga, our suite of IT policies forms a fundamental aspect of IT governance which guides our management approach
towards cyber risks and our responses to security incidents.
Our Cyber Risk and Governance
Key Policy and • Cyber Security Policy has been developed based on industry best standards such as the US
Framework National Institute of Standards and Technology cyber security framework
• The Group Confidential Information Policy has been established and incorporated various
privacy legislation that includes Financial Service Act 2013, Securities Industry (Central
Depositories) Act 1991, BNM’s Management of Customer Information and Permitted Disclosure
and Personal Data Protection Act (“PDPA”) 2010
Accelerating Data Security Measures
In 2022, we enhanced our security posture by subscribing to a suite of top-tier security solutions and deployed security measures
to include Identity Access Management, Application Programming Interface Security and ransomware protection. Additionally,
we also enhanced the cyber resilience of our operations through the following measures:
Rolled out Data Loss Prevention (“DLP”) solutions and Database Activity Monitoring to defend
Protecting Customers’
data leaks from internal and unauthorised sources as well as virtual patch solution to shield
Data
servers from risks before applying physical security patches
Enhanced the usage of the mobile management tool to effectively monitor privacy access
Managing Employees
on our employees’ mobile phones as well as our security posture by enabling and enforcing
Confidential Data
multi-factor authentication for Office 365
Delivered mandatory monthly cyber security awareness training to all employees and rolled
Instil Cyber Awareness
out regular email phishing simulations to educate employees to swiftly identify and respond to
amongst Employees
potential phishing threats
Future Outlook
As we transition towards a future defined by digital innovation, cyber security has become even more crucial as reflected in our
recent materiality assessment. In line with our IT Strategy 2023-2027 and DLP Framework, we aim to continue taking proactive
and progressive actions such as upgrading our systems as well as increasing our employees’ and clients’ awareness in taking
precautionary steps to reduce cybersecurity risks. Our end goal is to ensure that our clients can confidently pursue their financial
goals in the digital age while knowing that their personal and financial data is secure.
For more information on our cyber security initiatives, please refer to page 55 of our Sustainability Report 2022.
34
Annual Report 2022
CLIENT EXPERIENCE
[GRI 417]
OUR APPROACH TO CLIENT EXPERIENCE
Guided by policies aligned to applicable laws and regulations, we aim to ensure our marketing materials are accurate, transparent,
and not misleading. When handling customers’ concerns, we are dedicated to addressing the concerns in a timely and equitable
manner. By adopting this approach, we continue to build lasting client relationships and demonstrate our commitment to
providing good services and support.
Responsible Marketing & Communication
At Kenanga, we prioritise transparency and compliance in our

communications with clients, meeting regulatory requirements
set out by Bursa Securities, Bank Negara Malaysia and
the Securities Commission Malaysia. Prospectuses and
memorandums are publicly disclosed to our prospective
and existing clients. Additionally, we adhere to the Financial
Services Act (2013), Consumer Protection Act (1999), as well
as Malaysian Code of Advertising to ensure that we operate
ethically and with our clients’ best interests in mind. We also
have a set of internal policies that serve to further uphold
our standards in the preparation and dissemination of all
promotional and marketing materials.
Our agents and remisiers are provided with relevant

information and training that emphasise the importance of
upholding and demonstrating high standards of ethics and
honesty in client interactions. All our remisiers are required
to comply with the Group Code of Ethics and Conduct for
Employees to ensure our services are delivered with highest
integrity.
Our focus is centred on listening and catering to the diverse

needs of our clients. To facilitate two (2)-way communication
with all our existing and prospective clients, we have several
channels including social media, website and telephony For more information on how we manage our internal policies on
support, and through these channels, we actively seek responsible marketing and communication as well as improve
client experience at Kenanga, please refer to pages 58 to 59 of our
and gather feedback from our clients to help improve their
experience with us.
35
ENVIRONMENTAL STEWARDSHIP
We aim to promote a climate-positive culture across the organisation in pursuit of a reduced carbon footprint.
Our approach to addressing climate change is defined by a multi-faceted approach in which we integrate
climate-related risk considerations across our business while reducing the environmental impact of our
operations.
Climate Impact Goal 1 Accelerate enterprise decarbonisation.
Goal 2 Build awareness, knowledge and skills needed to enable employees and
stakeholders, to contribute positively to climate actions.
UN SDGs
MANAGING OUR CLIMATE IMPACT
[GRI 302,303,305, 306]
OUR APPROACH
Our aim is to foster an organisational culture Energy Management

that promotes taking positive climate actions to
reduce carbon footprint. We tackle climate change Besides our Air Handling Unit (“AHU”) and Air Conditioning (“AC”)
with a pragmatic approach that incorporates the systems enhancements in 2021, we introduced additional upgrades in
management of climate-related risk factors across 2022 to further increase energy efficiency as we strive to achieve up to
our business activities, products and services, as well 30% electricity reduction. In an effort to achieve energy reduction of up
as to reduce environmental impact of our operations. to 8%, we have also replaced all the conventional lighting at Kenanga
Tower with LED lighting during the year.
The operations and practices of Kenanga are in line
with the goal of reducing carbon footprint where
possible, and eliminating wastage to minimise the
negative impact to the ecosystem and biodiversity.
Similarly, our vendors are expected to adopt
sustainable business practices as guided by our
Group Code of Conduct for Vendors.
We encourage our employees to use resources

responsibly, such as electricity, water and paper
usage. Our #GreenAtHome initiative, previously
known as #GreenAtWork, is a month-long interactive
campaign designed to educate our employees on the
need to adopt an environmentally-friendly mindset.
36
Annual Report 2022
Key Environmental Performance Highlights
Scope 1 Direct GHG Emissions (tCO2e)

2022 40.7
2021 29.3
Note:
Our Scope 1 emissions are calculated based on fuel consumption from our company-owned vehicles. Scope 1 emission factors were sourced from the 2006 IPCC
Guidelines for National Greenhouse Gas Inventories.
* 2022 data reflects the resumption of work in office and increased in business activities
Scope 1 - Fuel Consumption
Total Petrol Consumption*(litres)
2022 17,059.1
2021 12,291.5
* 2022 data reflects the resumption of work in office and increased in business activities.
Scope 2 Indirect GHG Emissions (tCO2e) – Kenanga Tower only

New Data Point:
2022 1,625.6
Scope 2 Indirect GHG
2021 1,861.3 Emissions (tCO2e) –
Note: Branches only
Scope 2 emissions figures are derived from purchased electricity consumption throughout Kenanga Tower and our
branch offices, converted using emissions factors for the Peninsular Malaysian grid. Scope 2 emission factors were
sourced from the Malaysian Green Technology Corporation’s 2017 CDM Electricity Baseline Final Report. 2,034.8 (FY2022)
* 2022 data reflects the resumption of work in office and increased in business activities
Scope 2 - Electricity Consumption
Total purchased electricity consumption - Kenanga Tower (kWh) New Data Point:
Total purchased electricity
2022 2,778,813
consumption - Branches (kWh)
2021 3,181,757
3,478,331 (FY2022)
Note:
For year-on-year data of Scope 1 and Scope 2, please refer to page 91 of our Sustainability Report 2022.
Scope 3 – Business Travel
Scope 3 Other Indirect GHG Emissions- (tCO2e) New Data Point:
2022 210.9 Scope 3 Other Indirect GHG

Emissions (tCO2e) – Business
2021 187.7
Travel
210.9 (FY2022)
37
Consumption and Waste Management

Paper Consumption
In support of a circular economy and the practice of
responsible disposal of the Group’s documents as well as Estimated Total Paper Purchased* (kg)
e-wastes which contains confidential data, we engaged with a
local recycling centre and a local licensed IT asset destruction 2022 19,840
agency to manage these wastes. The disposal is guided by
2021 15,138
our Retention, Archiving and Destruction Policy; and PDPA
Data Access and Retention Procedures. Upon destruction, * 2022 data reflects the resumption of work in office and increased in
we were given a Certificate of Desctruction. Overall, we have business activities.
managed a total of 19,974 kg of office wastes responsibly.
Waste Management
New Data Points:
Waste Collected and Recycled by Type (kg)

Paper Plastic Aluminium Tins Others
8,945 77 31 6
IT Asset and Paper Collected and Disposed by Type (kg)
Paper e-Waste
8,980 1,935
* 2022 data reflects the resumption of work in office and increased in business activities.
Water Management
We are mindful of our water consumption and continue to track water usage on an annual basis to further enhance our water
efficiency. Similar to our electricity consumption monitoring, we have expanded our water consumption monitoring to include
data from our branch offices.
Water consumption - Kenanga Tower (m³) New Data Point:
2022* 21,304 Water consumption –

Branch Offices (m³)
2021 18,503
* 2022 data reflects the resumption of work in office and increased in business activities. 20,848 (FY2022)
Future Outlook
At Kenanga, we recognise that managing our carbon footprint is not just a responsibility but an opportunity to contribute to a
more sustainable future. We are committed to becoming a carbon-neutral financial institution by 2025, and achieving net-zero
carbon emissions by 2050. We believe that by taking progressive steps to manage our carbon footprint, not only do we reduce
our environmental impact but also unlock new opportunities for growth and innovation.
For more information on how we continue to reduce our environmental footprint, please refer to pages 60 to 66 of our Sustainability Report 2022, and for more
information on our full environmental data, please refer to page 91 of our Sustainability Report 2022.
38
Annual Report 2022
EMPOWERING PEOPLE AND COMMUNITIES
We believe that our people are at their best when they feel a sense of belonging and are adequately supported
by the organisation. We are committed to empowering our people to build their knowledge and expertise in
an inclusive and healthy environment while extending our support in contributing to the growth and resilience
of our communities.
Goal 1 Maintain and promote workforce diversity, and maintain

Diversity and Inclusion
anti-discrimination culture.
Employee Health, Safety and
Goal 2 Integrate mental health as a topic of overall wellbeing of employees.
Wellbeing
Talent Attraction, Development and Goal 3 Increase social impact towards marginalised and deserving communities
Management through consistent programmes and initiatives.
Community Investment Goal 4 Expand investing literacy reach through online and offline channels.
UN SDGs
DIVERSITY AND INCLUSION
[GRI 405, 406]
Our Workforce Profile

[GRI 401, 404, 405]
Total Number of Employees in 2022

1,355
1.5% 3%
8.5% 49%
By By
Category Gender
50.4% 36.7%
51%
Key Management Senior Management Middle Management

Male Female
Junior Management Non- Executive
39
1%
4.4%
20.8% 22.5%
By Ethnic By
Composition Age Groups
54.1% 40.5%
28.7% 28%
Malay and Other Bumiputera Chinese <30 30-39 40-50 >50
Indian Others
OUR APPROACH
Our Policy on Ethical Human Resource Practices
At Kenanga, we ensure our human resource operations are in compliance with the applicable employment and labour laws and
regulations of Malaysia, including setting minimum wages and adhering to local laws on working hours. Our commitment to these
standards is reflected in our Group’s Code of Ethics and Conduct for Employees.
In accordance with the principles outlined in the UNGC, we recognise our obligation to respect human and labour rights. We are
committed to treating all employees with respect and providing equal opportunities for professional success, regardless of their
race, religion, gender, age, nationality and physical challenges. At Kenanga, we have zero tolerance for any violation of human
rights, including forced and compulsory labour, child labour, and discrimination at our workplace. Our hiring procedures abide by
the local laws in establishing the minimum age for employment.
We are in the process of developing a Group Human Rights Policy that will cover our current practices in protecting human rights
and strengthening our commitment to upholding these principles throughout our business operations. Some of the key policies
relating to ensuring unbiased human resources practices include:
1 Group Disciplinary Policy Learning and Development Policy 4

Group Code
of Ethics and Group Procedure on Recruitment
2 Flexible Work Arrangements Policy 5
Conduct for and Staffing Management
Employees
3 Compensation and Benefits Policy Group Performance Management Policy 6
40
Annual Report 2022
Communication on Human Rights for Employees
New employees are required to complete a ten (10)-minute self-directed learning module on employee rights through our Learning
Management System (“LMS”), an internal learning platform. In 2022, we recorded a total of 189 enrolments on this topic.
Promoting a Gender-Balanced Workplace Culture
We remain committed to monitoring our gender diversity numbers and ensuring that our recruitment process continues to take a
gender-balanced approach. We believe in providing equal economic opportunity for all of our employees, regardless of gender,
especially within the similar roles in our organisation. Our approach to pay and compensation is based on employees experiences,
skills and competencies required as well as industry benchmark in determining basic salary.
Female Representation at Kenanga
Our Key and Senior Middle Junior Non-Executives

Workforce Management Management Management
51% 37% 53% 53% 34%
Ratio of Basic Salary Men:Women

Key Management 1:0.84
Senior Management 1:1.02
Middle Management 1:0.82
Junior Management 1:1.03
Non-Executive 1:0.91
Employee Engagement on Diversity and Inclusion
Kenanga continuously strives to encourage two (2)-way open communication with our employees through dialogues and discussions.
Our employee engagement programmes seek to promote the sharing of knowledge amongst our employees, celebrate diversity,
and foster a sense of belonging. As part of our engagement activities throughout the year, we celebrated Founder’s Day, as well as
festive celebration and International Women’s Day.
For more information on how we embrace diversity and inclusion within our workforce, please refer to page 68 of our Sustainability Report 2022.
41
EMPLOYEE HEALTH, SAFETY AND WELLBEING
[GRI 403]
OUR APPROACH
Kenanga is committed to exercising precaution to ensure we provide a safe and healthy work environment. Kenanga is in full
compliance with the Occupational Health and Safety Act (“OSH Act”) 1994, as we make our best efforts to protect our workforce.
Our Safety Rules and Procedure
We have our Safety Rules and Regulations in place in the

event of any emergencies to minimise injury to personnel and
damage to property. We conducted numerous OHS-related
trainings and programmes for our staff in 2022, including a
21-hour training course on the latest amendments to Malaysia’s
OSH Act 1994. In 2022, we trained 34 employees on first-aid to
standby during any emergencies. We recorded zero workplace
injuries reported in 2022.
Addressing COVID-19
The Ministry of Health (“MOH”) has led the country’s COVID-19

pandemic transition to endemic in multiple phases by revising
the standard operating procedures (“SOPs”) throughout
2022. In line with the MOH’s revisions, we have kept our
internal COVID-19 measures regularly reviewed, updated and
communicated group-wide.
Promoting Emotional Wellness
In 2022, we established a partnership with Naluri,

an organisation that offers integrated digital care solutions
that combine support for both physical and mental health.
Naluri offers a variety of services that take a multidisciplinary
approach to address all interconnected aspects of wellbeing,
such as physical wellness, workplace performance, financial
wellness and mental wellness. We have engaged 688
employees through the awareness sessions in 2022.
For more information on how we manage employee health, safety and wellbeing, please refer to page 73 of our Sustainability Report 2022.
42
Annual Report 2022
TALENT ATTRACTION, DEVELOPMENT & MANAGEMENT
[GRI 401,404]
Talent Attraction
Fair Recruitment
At Kenanga, we are dedicated to upholding impartial and unbiased recruitment processes. To accomplish this, we follow our
Group’s Recruitment and Staffing Management Procedure as a framework. Furthermore, we employ a Malaysian-first approach
in our hiring strategy to provide prospects for local talent to join our team.
New Employee Hires 2021 2022

Total Number of New Hires 282 209
New Hires Rate (%) 20.2 15.4
Employee Turnover 2021 2022

Total Number of Turnover 168 249
Turnover Rate (%) 12.5 18.1
Employee Benefits Supporting Employees in Need
Our employee benefits are in compliance with local labour During the year, we distributed zakat contributions
standards, as well as based on industry practice. Our received from Zakat Perniagaan and Zakat Wakalah
spectrum of benefits range from insurance coverage, leave amounting to over RM290,000 to nearly 400 employees
allocation, and fitness memberships, to Employees’ Share for the purpose of assisting low-income employees,
Option Scheme. In line with recent updates on our local supporting education expenses for those with children
Employment Act in 2022, we have further updated our and flood relief.
paternity and maternity leaves, as well as hospitalisation
and sick leaves.
Talent Development
Nurturing a Skilled Workforce
Our Learning and Development Policy further supports our values for continuous learning and development for employees at all
levels of the organisation. We continue to introduce opportunities to learn through training programmes in areas such as digital
competency, leadership skills, and sustainability-related issues. In 2022, we invested approximately RM2.7 million with over
22,000 enrolment on talent and development programmes by employees and logged in more than 39,000 training hours.
Average Training Hours per Employee by Gender in 2022
Male 26.0
Female 31.6
43
Role-based Development Leadership Development
We continue to support our employees’ career The Kenanga Talent and Succession Management Framework outlines
development by collaborating with external training our strategy of maintaining a strong talent pipeline to fill key positions
and certification providers such as the Asian Institute within the Group. Additionally, we have implemented a new approach to
of Chartered Bankers, Iverson, and the Asian Banking measure talent potential based on ability, commitment, and engagement.
School, which is the largest specialised provider of To assess these components, we have developed new guidelines that
training programmes for the banking sector in the provide a more standardised and objective approach to employees
ASEAN region. evaluations.
We also continue to provide our employees with the E-learning at Kenanga

ESG and sustainability-related skills and expertise
they need to be able to advance our sustainability The LMS offers orientation programmes for new hires, along with annual
agenda. A total of 2,449 employees took part with regulatory seminars, AMLA and ethics training, as well as programmes in
3,615.5 training hours logged in 2022, covering leadership and personal development. In 2022, we conducted 17 online
the topics of climate-related risks, ESG, and courses, which were attended by 14,845 enrollments and logged 16,158
sustainability. In collaboration with UNGC, we hours of e-learning.
implemented two (2) sustainability courses via
Kenanga’s Learning Management System, including Talent Management
‘How to Understand and Take Action on the Global
Goals’, and, ‘Translating Human Rights into Business Performance Management at Kenanga
Practice’ which received a 95% completion rate from
Kenanga employees on average. We have ongoing Performance Management Cycles starting from the
first (1st) quarter of the year, which is followed by progressive reviews
In 2022, we supported nearly 160 employees in and performance appraisals for employees at all levels in the fourth
obtaining professional certifications from various (4th) quarter of the year. Employees are guided by the Performance
certification programmes including certification in Management Matrix and Development Guidelines as approved by the
‘ESG & Impact Investing’, ‘Sustainability Reporting Board. The results of these performance appraisals are the basis for reward
Practitioner’, ‘Integrity Officer’, ‘Fraud Examiner’, distribution, talent management, as well as learning and development.
and specialised qualifications for Banking Experts In the event of underperformance, a performance improvement plan will
amongst others. be implemented.
Additionally, our remisiers attended 39 sessions of Future Outlook

in-house CPE courses which covered topics such as
‘The Future of Money-Blockchain’, ‘Cryptocurrencies We commenced development of Individual Development Plan (“IDP”)
& IEOs’, ‘Digital Leadership for Sustainable Business in 2022 with the aim for all employees to have their IDP completed by
in Industry 4.0’, ‘12th Malaysia Plan - Challenges and 2023. The IDP is to support personalised learning path for our employees
Opportunities’, ‘Fundamentals of ESG Investing’, through blended learning activities which includes relationship-based
‘The Evolution of The Internet: The Metaverse & and experiential learning.
Decentralised Finance’, in order to keep them
abreast with new development and rapidly changing For more information on how we continue to empower our workforce and our future
plans, please refer to page 75 of our Sustainability Report 2022.
consumer market needs.
44
Annual Report 2022
COMMUNITY INVESTMENT
[GRI 413]
OUR APPROACH TO COMMUNITY INVESTMENT
Kenanga has a long history of philanthropic contributions, outreach initiatives, and fundraising campaigns. We continue to
strengthen outreach initiatives through employee volunteerism, and support social enterprises through targeted community
investment that is consistent with our intent to empower and uplift local communities. In 2022, we contributed over RM180,000
in community investments with direct positive impact over 4,000 lives.
In 2022, Kenanga updated its Group Sponsorship Policy to Group Donation Policy to create a standardised approach to evaluating
and channelling donation requests and community investments.
As we introduced a volunteering mechanism in 2022, we logged a total of 2,382 hours of volunteering service through outreach
programme to local communities.
The HumanKIND Project: Meals That Give Campaign
Kenanga rolled out the ‘Meals That Give’ campaign in 2022 to continue rallying public support for its long-standing social
enterprise partner Café Includes, a café operated by a team of persons with disabilities, via online fundraising platform,
Sedunia. From the kitchen of Café Includes, the meals prepared were distributed by our volunteers to the beneficiaries in
need, including the Persatuan Kebajikan An-Najjah Malaysia, Rumah Ozanam PJ, and Pertiwi Soup Kitchen. Furthermore,
in order to encourage more pledges, Kenanga sponsored an additional meal with every meal pledged, matching them
1-for-1.
As a result, ‘Meals That Give’ raised over RM50,000 at the end of the year. To date, we have distributed the equivalent of
2,700 meals through the campaign, with Kenanga matching a meal-for-meal.
For more information on how further engage our communities and social enterprises as well as our volunteering activities, please refer to page 84 of our
Advancing Financial Literacy
Our team of experts at Kenanga continued to share their knowledge and insights through various industry financial literacy
initiatives. In 2022, we conducted 98 sessions which included webinars, virtual roadshows and exhibitions with over 20,000
participations.
For more information on how further we participate in industry-related event and our financial literacy initiatives, please refer to page 87 of our Sustainability
Report 2022.
45
FOUNDER EMERITUS & ADVISER’S PROFILE
YM TAN SRI DATO’ PADUKA

TENGKU NOOR ZAKIAH
TENGKU ISMAIL
Founder Emeritus & Adviser
Date of Appointment:
• 1 February 2017
(Founder & Adviser of Kenanga Group)
• 27 January 2021
(Founder Emeritus & Adviser of Kenanga
Group)
95
46
Annual Report 2022
FOUNDER EMERITUS & ADVISER’S PROFILE
“THERE MUST BE PASSION

FOR THE JOB AND A SENSE OF
TRIUMPH WITH EVERY PUSH
FORWARD.”
BIOGRAPHY
YM Tan Sri Dato’ Paduka Tengku Noor Zakiah Tengku in Business and Profession, Malaysia (PENIAGAWATI) in
Ismail (“YM Tan Sri Dato’ Paduka Tengku Noor recognition of her entrepreneurship, and for being the
Zakiah”) co-founded Kenanga Investment Bank Berhad first (1st) Bumiputera lady in the field of stockbroking in
(“KIBB” or “the Company”) in 1973 under the name Malaysia, where she has served for more than five (5)
K & N Kenanga Sdn Bhd and served as the Executive decades, since 1964. For being a pioneer in the industry,
Chairman of the Company until January 2007. she was awarded an entry to the Malaysia Book of
Records as ‘The First Female Entrepreneur To Start Up
In January 2010, she was re-designated as the A Stockbroking Company’. She was awarded ‘Top 10
Non-Executive Chairman of KIBB. Prior to this, she was Asia—Outstanding Personality Award 2019’ by Research
a partner in a stockbroking firm, Hallam & Co., from 1964 House Asia for her contributions to the local financial and
to 1971. corporate world. The award was presented by YB Tuan
Muhammad Bakhtiar bin Wan Chik, Deputy Minister of
She was the first (1st) lady member of the Kuala Lumpur Tourism, Arts and Culture Malaysia.
Stock Exchange, now known as Bursa Malaysia
Securities Berhad in 1964 and has over fifty (50) years of Due to the mandatory regulatory requirement for the
experience in the securities industry. She was one of the Board of Directors to comprise a majority of Independent
founders of the Association of Stockbroking Companies Directors, YM Tan Sri Dato’ Paduka Tengku Noor
Malaysia (“Association”) and was appointed as the Zakiah relinquished her position as the Chairman and
President of the Association, a post she held until 1994 Non-Independent Non-Executive Director of KIBB on
when she became its Chairman. She was made a Life 28 January 2017. Following thereto, YM Tan Sri Dato’
Adviser to the Association when she retired as its Paduka Tengku Noor Zakiah was appointed as Adviser,
Chairman in 1997. and in 2021 she was re-designated as Adviser and
Founder Emeritus of Kenanga Group.
YM Tan Sri Dato’ Paduka Tengku Noor Zakiah was
conferred the ‘Lady Extraordinaire Award 2014’ by the
Ministry of Women, Family and Community Development
Malaysia in recognition of her remarkable and
exceptional contributions and achievements in the field
of stockbroking. She also received the ‘Ikon Peniagawati
2015’ award from the Association of Bumiputera Women
47
PROFILES OF DIRECTORS
YAM TAN SRI DATO’ SERI SYED

ANWAR JAMALULLAIL
Chairman of the Board of Directors/
71
Date of Appointment: 1 July 2020
Length of Tenure as Director

(As at 31 March 2023):
Two (2) Year Nine (9) Months
Shareholding in Kenanga Investment Bank

Berhad (“KIBB”): Nil
Membership of Board Committee(s)

Nil
Academic & Professional Qualification(s)

• Bachelor of Arts in Accounting, Macquarie Past Relevant Experiences
University, Sydney, Australia • Chairman, Malaysia Airports Holdings Berhad
• Chartered Accountant, Malaysian Institute of • Chairman, Cahya Mata Sarawak Berhad
Accountants • Chairman, Malakoff Corporation Berhad
• Certified Practising Accountant (CPA) • Chairman, Media Prima Berhad
Australia • Chairman, Malaysian Resources Corporation Berhad
• Court of Emeritus Fellows, Malaysian Institute • Chairman, DRB-Hicom Berhad
of Management • Chairman, EON Bank Berhad
• Chairman, Uni Asia Life Assurance Berhad
Award • Chairman, Uni Asia General Insurance Berhad
• Chairman of the Year Award 2012 – 2013 by • Chairman, Lembaga Tabung Haji Investment
“The BrandLaureate”, the Grammy Awards • Chairman, Realmild (M) Sdn Bhd
for The World’s Best Brands by The World • Chairman, Radicare (M) Sdn Bhd
Brands Foundation • Chairman, Pulau Indah Ventures Sdn Bhd
• Independent Director, Maxis Communication Berhad
Present Appointment(s) • Independent Director, Bangkok Bank Berhad
• Chairman of Nestle (Malaysia) Berhad • Group Managing Director, Amanah Capital Partners Berhad
• Chairman of S P Setia Berhad • Corporate Finance Manager, Amanah Merchant Bank Berhad
• Chairman of Lembaga Zakat Selangor • Investment Manager, D&C Nomura Merchant Bank Berhad
• Chancellor of SEGi University • Senior Auditor, Price Waterhouse Australia (Sydney)
• Trustee of Yayasan Perpustakaan Raja Tun • Financial Accountant, Malaysian Airlines Systems Berhad
Uda
Declaration
YAM Tan Sri Dato’ Seri Syed Anwar Jamalullail has no family relationship with any Director
and/ or major shareholder of KIBB. He also has no conflict of interest with KIBB.
He has never been charged for any offence within the past five (5) years nor has he had any
Number of Board Meetings Attended in 2022:
public sanction and/ or penalty imposed on him by any relevant regulatory bodies during the
11/11 Financial Year Ended 31 December 2022.
48
Annual Report 2022
ISMAIL HARITH
MERICAN
Non-Independent Non-Executive Director
72
Date of Appointment: 26 August 2010

Twelve (12) Years and Seven (7) Months


GNC
Member

• Bachelor of Arts in History, University of Past Relevant Experiences
Malaya, Malaysia • Non-Independent Non-Executive Director of K & N Kenanga Holdings Berhad
• Managing Director in Straits Securities Sdn Bhd
Present Appointment(s) • Employed by KIBB with the last position held as a Dealer’s Representative
• Managing Director of Zubaimas Realty (Institutions and International)
Sdn Bhd • Involved in the investment industry when he trained and worked with Strauss
• Chairman of Matrix Capital Sdn Bhd Turnbull & Co., a firm of stockbrokers in London
• Assistant Accountant in The Economist Newspaper Ltd
• Articleship at Peat, Marwick, Mitchell & Co. in London, United Kingdom
Declaration
Ismail Harith Merican is the son of YM Tan Sri Dato’ Paduka Tengku Noor Zakiah Binti Tengku
Ismail, a major shareholder of KIBB. He has no conflict of interest with KIBB.
49
LUK WAI HONG,

WILLIAM
59
Date of Appointment:
• 1 November 2013
(Independent Non-Executive Director)
• 1 November 2022 (Re-designated as a
Non-Independent Non-Executive Director)

Nine (9) Years and Five (5) Months


GBRC GBDITC
Past Relevant Experiences
Member Member
• Chairman of the Group Board Risk Committee as well as Member of the Audit
Committee, Group Governance, Nomination & Compensation Committee and
Academic & Professional Qualification(s) Employees’ Share Scheme Committee, KIBB
• Bachelor of Arts (Honours), Concordia • Independent Non-Executive Director, K & N Kenanga Holdings Berhad
University, Montreal, Canada • Principal and Portfolio Manager of Pacific Advantage Capital, Hong Kong and
• Masters of Urban Planning, University of Singapore
Michigan, United States of America (“USA”) • Managing Director and Co-Head of Saba Proprietary Trading Group Asia in
• Executive Fellowship awarded by the State of Deutsche Bank AG, Hong Kong
Washington, USA • Managing Director and Co-Head of Global Credit Trading and Principal
Finance Asia in Deutsche Bank AG, Singapore
Present Appointment(s) • Director and Head of Structured Credit Trading and Principal Finance Asia in
• Non-Independent Non-Executive Director of Deutsche Bank AG, Singapore
Kenanga Investors Berhad (“KIB”), a wholly- • Senior Associate Director and Senior Credit and Derivatives Trader in
owned subsidiary of KIBB Deutsche Bank AG, Singapore
• Chairman and Non-Independent Non- • Senior Fixed Income Trader in HSBC Markets, Hong Kong
Executive Director of I-VCAP Management • Fixed Income and Credit Trader in Lehman Brothers Asia, Hong Kong and
Sdn Bhd, a wholly-owned subsidiary of KIB Japan
• Chairman of Investment Committee of KIB • Executive Fellow and Transportation Finance Specialist in the Office of
• Member of the Audit and Risk Committee of Financial Management in the State of Washington, USA
KIB
• Director of Investment of Cotton Tree Capital
Ltd
Declaration
Luk Wai Hong, William has no family relationship with any Director and/ or major shareholder
of KIBB. He also has no conflict of interest with KIBB.
50
Annual Report 2022
JEREMY
NASRULHAQ
Senior Independent Non-Executive Director
69
Date of Appointment: 1 June 2017

Five (5) Years and Ten (10) Months

Berhad (“KIBB”): 187,900 Shares

AC GNC ESSC GBDITC
Chairman Member Member Member

• Bachelor of Science (Agribusiness) Degree Past Relevant Experiences
(with Distinction), Universiti Putra Malaysia • Chairman of Urusan Teknologi Wawasan Sdn Bhd
• Chartered Accountant, Malaysian Institute of • Chairman of Malaysia Airports (Niaga) Sdn Bhd
Accountants (“MIA”) • Independent Non-Executive Director/ Senior Independent Non-Executive
• Chartered Audit Committee Director, Institute Director, Chairman of the Board Nomination & Remuneration Committee,
of Internal Auditors Malaysia Chairman of the Whistleblowing Independent Committee, Member of the Board
• Fellow Member, Chartered Institute of Audit Committee and the Board Finance & Investment Committee of Malaysia
Management Accountants (“CIMA”), United Airports Holdings Berhad
Kingdom • Member of the Digital Technology Implementation Committee, Capital Market
• Fellow Member, Institute of Corporate Advisory Committee, as well as its Oversight Committee in MIA
Directors Malaysia • Chairman of the MIA-Malaysian Qualifications Agency Joint Technical
Committee and Disciplinary Committee in MIA
Present Appointment(s) • Deputy President of CIMA, Malaysia Division for several years and had served
• Director of Sweetyet Development Sdn Bhd on the council of the MIA for four (4) years from 1 July 2018 until 30 June 2022
• Member of ELITE (Experiential Learning with • Committee Member of a few national organisations such as the Malaysian
Industries and Technocrats) of Universiti International Chamber of Commerce and Industry and the Federation of
Malaya Malaysian Manufacturers
• Supply Chain Director for Unilever (M) Holdings Sdn Bhd, Malaysia and Unilever
Singapore Pte Ltd, Singapore
• Commercial Director for Unilever (M) Holdings Sdn Bhd, Malaysia
• Regional Finance Manager for Unilever Asia Retail Foods
• Several senior financial and supply chain positions in Unilever (M) Holdings Sdn
Bhd, P.T. Unilever Indonesia and Unilever Asia (S) Pte Ltd
Declaration
Jeremy Nasrulhaq has no family relationship with any Director and/ or major shareholder of
KIBB. He also has no conflict of interest with KIBB.
51
NORAZIAN AHMAD
TAJUDDIN
62
Date of Appointment: 15 December 2017

Five (5) Years and Three (3) Months


GBRC AC GNC ESSC
Chairman Member Member Member

• Bachelor of Science (Honours) in
• Chairman of the Group Governance, Nomination & Compensation Committee
Mathematics, University of Leeds, United
and the Employees’ Share Scheme Committee as well as Member of the
Kingdom
Group Board Digital Innovation & Technology Committee, KIBB
• Master of Business Administration (Finance),
• Chairman and Independent Non-Executive Director of Pacific & Orient
Edith Cowan University, Australia
Insurance Co. Berhad (“POI”), a subsidiary of Pacific & Orient Berhad
• Member of the Nomination Committee, Remuneration Committee, as well as
Present Appointment(s)
the Audit Committee and Risk Management Committee of POI
• Chairman and Independent Non-Executive
• Chairman of the Investment Committee of KIB
Director of Kenanga Investors Berhad (“KIB”),
• Non-Independent Non-Executive Director and Member of the Risk
a wholly-owned subsidiary of KIBB
Management Committee and Nomination & Remuneration Committee of
• Independent Non-Executive Director of
Prudential BSN Takaful Bhd
Kenanga Islamic Investors Berhad, a wholly-
• Deputy Chief Executive Officer of Bank Simpanan Nasional Berhad
owned subsidiary of KIB
• Manager, Treasury of DaimlerChrysler (M) Sdn Bhd
• Assistant General Manager, Treasury of KAF Discount Berhad
I-VCAP Management Sdn Bhd, a wholly-
• Deputy Chief Operating Officer, Group Treasury & International Banking of
owned subsidiary of KIB
EON Bank Berhad Group
• Member of the Investment Committee and
• Senior Dealer, Treasury of Bank Bumiputra (M) Berhad
Audit and Risk Committee of KIB
Declaration
Norazian Ahmad Tajuddin has no family relationship with any Director and/ or major
shareholder of KIBB. She also has no conflict of interest with KIBB.
She has never been charged for any offence within the past five (5) years nor has she had any
public sanction and/ or penalty imposed on her by any relevant regulatory bodies during the
52
Annual Report 2022
KANAGARAJ
LORENZ
65

Five (5) Years and Three (3) Months


GBDITC AC GBRC
Chairman Member Member

• Fellow Member, Institute of Chartered
• Executive Director and Group Chief Executive Officer of GHL Systems Berhad
Accountants in England and Wales, United
• Managing Director of eNETS Pte Ltd
Kingdom
• General Manager International Business Development of Network for
• Member, Malaysian Institute of Certified
Electronic Transfers (Singapore) Pte Ltd
Public Accountants
• Chief Executive Officer of The Payment Solutions Company Pte Ltd
• Vice President, Marketing Head and Vice President, Financial Controller &
Chief of Staff in Citibank Berhad
• Nil
• Risk Manager of Citibank N.A., Australia and Malaysia
Declaration
Kanagaraj Lorenz has no family relationship with any Director and/ or major shareholder of
KIBB. He also has no conflict of interest with KIBB.
53
CHOY
KHAI CHOON
65

One (1) Year and Three (3) Months


GNC GBRC GBDITC
Member Member Member

• Master in Business Administration, Oklahoma Past Relevant Experiences
University, USA • Senior INED of Malaysia Marine and Heavy Engineering Holdings Berhad
• Bachelor Degree in Commerce, University of where he assumed the position as Chairman of the Board Audit Committee
New South Wales, Australia
and a Member of the Nomination & Remuneration Committee
• Attended the General Management programme
in INSEAD, France • Public Interest Director of Federation of Investment Managers Malaysia
• Fellow Member, Certified Practising (“FIMM”) where he also served as FIMM’s Chairman of the Nomination and
Accountants, Australia Remuneration Committee and Chairman of the Private Retirement Scheme
• Chartered Accountant, Malaysian Institute of
Accountants Sub-Committee
• President/ Chief Executive Officer, Cagamas Berhad
Present Appointment(s) • Senior General Manager, Group Head, RHB Banking Group
• Non-Independent Non-Executive Chairman of
• Chief Executive Officer, Morley Fund Management Ltd, Singapore
Zurich Life Insurance Malaysia Berhad and Zurich
General Insurance Malaysia Berhad where he • Regional Finance & Planning Director, Asia, Aviva Insurance Asia Ltd
serves as a Member of the Audit Committee, • Assistant General Manager (“GM”) and GM, Commercial Union Assurance
Board Investment Committee, Risk Management Berhad
and Sustainability Committee, and Nomination
and Remuneration Committee of both companies • Senior Manager, Strategic Planning, Credit Corporation Malaysia Berhad
• Independent Non-Executive Director (“INED”) of (“CCMB”), Manager in various division of CCMB such as Corporate Planning
Hap Seng Plantations Holdings Berhad (“HSP”) Services, Commercial Division, Credit Division
and a Member of the Audit Committee of HSP
• INED of MSM Malaysia Holdings Berhad
(“MSM”) and the Chairman of MSM’s Audit,
Governance and Risk Committee and a Member
of its Investment and Tender Committee
• Non-Executive Director of Asian Banking School
Sdn Bhd
• Non-Executive Director of Bond and Sukuk
Information Platform Sdn Bhd Declaration
• Authority Member of the Labuan Financial
Choy Khai Choon is a Board representative of Cahya Mata Sarawak Berhad, a major
Services Authority (“LFSA”) and Chairman of the
shareholder of KIBB. He has no family relationship with any Director and/ or major shareholder
Audit Risk Management Committee of LFSA
Number of Board Meetings Attended in 2022: public sanction and/ or penalty imposed on him by any relevant regulatory bodies during the
Financial Year Ended 31 December 2022.
11/11
54
Annual Report 2022
CHIN
SIEW SIEW
58
Date of Appointment: 1 June 2022

Ten (10) Months


GNC ESSC GBRC GBDITC
Chairman Chairman Member Member

• Bachelor of Science in Computer Science
• Chief Digital Officer, General Manager for Commercial Direct Report to the
from University of Arkansas, United States of
Country Managing Director and ASEAN Chief Digital Officer, IBM Malaysia
America
• Regional Sales Leader for IBM Technologies Services Direct Report to the
ASEAN General Manager for Technology Services Group, IBM – ASEAN
Region
• Independent Non-Executive Director of AIG
• Business Operation Leader for IBM Technology Services Direct Report to the
Malaysia Insurance Berhad
ASEAN Vice President for Technology Services Group. A talent development
role, IBM – ASEAN Region
Southern Steel Berhad (“SSB”) and a
• General Manager for Global Technology Services, IBM Malaysia
member of SSB’s Nomination Committee and
Remuneration Committee
Declaration
Chin Siew Siew has no family relationship with any Director and/ or major shareholder of
KIBB. She also has no conflict of interest with KIBB.
She has never been charged for any offence within the past five (5) years nor has she had any
Number of Board Meetings Attended in 2022: public sanction and/ or penalty imposed on her by any relevant regulatory bodies during the
6/6
55
GROUP MANAGING DIRECTOR’S PROFILE
DATUK CHAY
WAI LEONG
59
Date of Appointment: 17 May 2011

Berhad (“KIBB”): 5,820,000 Shares and 7,000,000
Options Held under the Employees’ Share Option
Scheme

• Bachelor of Business Administration (Major in
• Bursa Malaysia Berhad
Finance) (1987), National University of Singapore
- Independent Non-Executive Director (March 2013 - March 2019)
• Bursa Malaysia Derivatives Berhad
Directorship(s) in Public Company(ies)
- Non-Executive Director (September 2015 - March 2019)
• K & N Kenanga Holdings Berhad
• Bursa Malaysia Derivatives Clearing Berhad
• Securities Industry Development Corporation
- Non-Executive Director (September 2015 - March 2019)
• RHB Investment Bank Berhad
- Managing Director, RHB Investment Banking (2006 - 2011)
• Bursa Malaysia Berhad
• RHB Banking Group
- Member of Sustainability and Development
- Director of Corporate and Investment Banking (2006 - 2011)
Committee
• Standard Bank Group
- Country Head, Malaysia and Head of Regional Origination for Southeast
Asia (2002 - 2006)
• JPMorgan Chase Bank
- Director, Head of Investment Banking Malaysia (2000 - 2002)
• Jardine Fleming, Hong Kong
- Director, Investment Banking (1990 - 2000)
• Bankers Trust, Singapore
- Senior Investment Analyst (1987 - 1990)
Declaration
Datuk Chay Wai Leong has no family relationship with any Director and/ or major shareholder
56
Annual Report 2022
SENIOR MANAGEMENT’S PROFILES
DATUK ROSLAN HJ TIK LEE KOK KHEE

Executive Director, Executive Director,
Head of Group Investment Banking and Islamic Banking Head of Group Equity Broking Business
54 55
DATE OF APPOINTMENT: 16 May 2011 DATE OF APPOINTMENT: 19 May 2011
QUALIFICATION(S) QUALIFICATION(S)
• Bachelor of Science in Combined Studies (Accounting with Law) • Certified Public Accountant (1993), The Malaysian Institute of
(1992), De Montfort University, Leicester, United Kingdom Certified Public Accountants
• Advanced Certificate in Management, Massachusetts Institute of
Technology, Boston, United States of America (“USA”) DIRECTORSHIP(S) IN PUBLIC COMPANY(IES)
• ECML Berhad
DIRECTORSHIP(S) IN PUBLIC COMPANY(IES)
• K & N Kenanga Holdings Berhad RELEVANT EXPERIENCES
• Tokyo Mitsubishi International (Singapore) Ltd
RELEVANT EXPERIENCES - Vice President, Merger and Acquisition (1999 - 2000)
• RHB Investment Bank Berhad • Arab-Malaysian Merchant Bank Berhad
- Division Head/ Senior Vice President, Corporate and IB Services - Senior Manager, Corporate Finance (1992 - 1998)
(2004 - 2011) • Ernst & Young
• KAF Discounts Berhad - Senior Auditor (1988 - 1992)
- General Manager, Debt Capital Markets (2001 - 2004)
• Malaysian Rating Corporation Berhad PRESENT APPOINTMENT(S)
- Vice President, Corporate Debt (1996 - 2001) • Nil
• Rating Agency Malaysia Berhad
- Analyst, Rating Department (1994 - 1996)
• Maybank Finance Berhad
- Officer, Corporate Marketing/ Share Margin Trading Unit (1993)
PRESENT APPOINTMENT(S)
• Representing KIBB as the Council Member of Malaysian Investment
Banking Association (“MIBA”) (Alternate Representative)
• Appointed by MIBA as the representative to the Chartered Institute
of Islamic Finance Professionals’ Charter Governing Panel
57
MAHESWARI A/P G KANNIAH DATUK WIRA ISMITZ MATTHEW DE ALWIS

Group Chief Regulatory and Compliance Officer Chief Executive Officer/ Executive Director,
Kenanga Investors Berhad
62 48
DATE OF APPOINTMENT: 1 June 2011 DATE OF APPOINTMENT: 10 February 2015
QUALIFICATION(S)
QUALIFICATION(S)
• Master in Business Administration with Distinction (1999), Southern Cross
• Chartered Banker, Asian Institute of Chartered Bankers and the University, Australia
Chartered Banker Institute, United Kingdom • Bachelor of Business Administration (Economics and Finance) (1996),
• Certified Fraud Examiner, USA Royal Melbourne Institute of Technology, Australia
• Fellow of the Malaysian Institute of Chartered Secretaries and • Graduate Diploma in Marketing (1995), Chartered Institute of Marketing,
United Kingdom
Administrators (“MAICSA”) • Certified Financial Planner, USA (2002)
• Fellow Chartered Secretary and Chartered Governance Professional of • Islamic Financial Planner (2018), Islamic Business & Finance Institute
the Chartered Governance Institute, United Kingdom Malaysia
• Fellow of the Institute of Corporate Directors Malaysia (“ICDM”) • Advanced Business Management Programme (2013), International
Institute of Management Development (IMD) Lausanne, Switzerland
• Certified Expert in ESG and Impact Investing
• ABS Executive Education (2017), University of Cambridge, United
• Specialist Diploma in Company Secretarial Practice Kingdom
• Certified Capital Market Professional - Compliance
• Kenanga Investors Berhad
• Kenanga Islamic Investors Berhad
• ICDM • Kenanga Funds Berhad
• Federation of Investment Managers Malaysia (FIMM)
RELEVANT EXPERIENCES
• RHB Investment Bank Berhad RELEVANT EXPERIENCES
• Kenanga Investors Berhad
- Senior Vice President/ Head, Compliance (2007 - 2011) - Deputy Chief Executive Officer (2013 - 2015)
• Malayan Banking Berhad • ING Investment Management Malaysia/ ING Funds Berhad
- Vice President/ Head of Group Compliance (2007) - Executive Director/ Country Head (2005 - 2013)
• Maybank Investment Bank Berhad • ING Insurance Berhad
- Senior Manager, Marketing and Business Development (2003 - 2005)
- Vice President/ Head of Compliance Supervision (2002 - 2007)
• MBF Unit Trust Management Berhad/ MBF Asset Management
• Malayan Banking Berhad - Head, Sales and Marketing (1998 - 2003)
- Corporate Services Department (1978 - 2002) • ARA (Asia Research & Consultancy) Consultancy Ltd
- Asia Pacific Relationship Manager/ Account Director (1991 - 1998)
• Director on the Board of ICDM • Chairperson of the Malaysian Association of Asset Managers (MAAM)
• Chairman of the Members Disciplinary Committee of ICDM • Member of the FTSE Bursa Malaysia Index Advisory Committee
• Member of the Audit and Risk Management Committee of ICDM • Council Member of the Institutional Investors Council Malaysia
• Council Member of the Malaysian Association of Certified Fraud • Member of the Joint (BNM & SC) on Climate Change (JC3)
• Member of the Capital Market Graduate Programme Steering Committee (SC)
Examiners (“MACFE”) • Member of Securities Commission Malaysia’s Assessment Review
• Member of the Marketing and Communications Committee of the Committee (ARC) - Fund Management
MACFE • Member of the Sustainable Investment Platform Steering Committee -
• Member of the Risk Management Committee of University Malaya Malaysia Sustainable Investment Initiative
• Member of the Industry Competence Framework (ICF) Advisory Panel
• Member of the Curriculum Review Committee of the Securities Industry
(SIDC)
Development Corporation • Investment Adviser for the Olympic Council of Malaysia’s Trust
• Member of the Membership Committee of MAICSA Management Committee
58
Annual Report 2022
CHEONG BOON KAK AZILA ABDUL AZIZ

Group Chief Financial and Operations Officer Chief Executive Officer/ Executive Director & Head of
Listed Derivatives, Kenanga Futures Sdn Bhd
52 54
DATE OF APPOINTMENT: 1 November 2016 DATE OF APPOINTMENT: 1 December 2012
• Member of Malaysian Institute of Accountants • Bachelor Degree (Hons) in Finance (1996), MARA University of
• Member of Certified Practising Accountant Australia Technology (“UiTM”)
• Member of Malaysian Institute of Certified Public Accountant • Diploma in Investment Analysis (1993), UiTM
• Chartered Banker, Asian Institute of Chartered Bankers and the
Chartered Banker Institute, United Kingdom DIRECTORSHIP(S) IN PUBLIC COMPANY(IES)
• Nil
• Kenanga Funds Berhad RELEVANT EXPERIENCES
• K & N Kenanga Holdings Berhad • Rashid Hussain Securities Sdn Bhd
- Institutional Sales and Dealing, Regional Equities and Futures
RELEVANT EXPERIENCES (1996 - 2000)
• RHB Investment Bank Berhad • SBB Securities Sdn Bhd, Ipoh
- Head of Corporate Strategy (2008 - 2011) - Trainee Dealer’s Representative (KLSE) (1995 - 1996)
• Sapura Crest Petroleum Berhad - Practical Training (1992)
- General Manager, Group Accounts (2007 - 2008) • Perlis Plantations Berhad
• RHB Securities Sdn Bhd - Accounts Trainee (Finance Department) (1989)
- General Manager, Finance (2003 - 2007)
• RHB Management Company Sdn Bhd PRESENT APPOINTMENT(S)
- Assistant General Manager, Finance (1999 - 2003) • Advisory Board Member of Women in Finance Awards Asia, Global
Trading & Markets Media Group New York
PRESENT APPOINTMENT(S) • Member of FTSE Russell Bursa Malaysia Index Advisory Committee
• Nil • Member of FTSE Russell Bursa Malaysia Industry Advisory Panel
• Member of Derivatives Market Consultative Panel of Bursa Malaysia
• Global Primary Member of Futures Industry Association Inc (FIA),
Washington DC
• Associate Member of Palm Oil Refiners’ Association of Malaysia
(PORAM)
• Member Representative for Malaysia Futures Brokers’ Association
(MFBA)
59
CYNTHIA WOON CHENG YEE NIK HASNIZA NIK IBRAHIM

Head of Group Treasury Head of Group Human Resource
58 57
DATE OF APPOINTMENT: 25 May 2017 DATE OF APPOINTMENT: 1 July 2014
• Bachelor of Economics (1989), University of Western Australia • Bachelor of Science in Computer Science (1987), Indiana University,
Indiana, USA
• Nil DIRECTORSHIP(S) IN PUBLIC COMPANY(IES)
• Nil
• ECM Libra Investment Bank Berhad RELEVANT EXPERIENCES
- Head of Treasury (2009 - 2012) • Kuwait Finance House Malaysia Berhad
• Public Investment Bank Berhad - Head, Human Capital (2012 - 2014)
- Manager, Treasury (1991 - 2008) • INTI Education Group
• KAF Astley & Pearce Sdn Bhd - Senior Vice President, Group Human Resource (2009 - 2012)
- Money Broker (1990 - 1991) • Watson Wyatt (Malaysia) Sdn Bhd
• Malaysian Tobacco Company Berhad - Senior Advisor, Human Capital Group (“HCG”) (2009)
- Management Executive (1989 - 1990) • RHB Banking Group
- Head, Group Human Resource (2008 - 2009)
PRESENT APPOINTMENT(S) • Watson Wyatt (Malaysia) Sdn Bhd
• Nil - Senior Consultant, HCG (2006 - 2008)
• Mesiniaga-SCS Sdn Bhd
- General Manager/ Director (1999 - 2006)
• Mesiniaga-Tactics Sdn Bhd
- General Manager (1995 - 1998)
• Mesiniaga Sdn Bhd
- Programmer Analyst, Systems Analyst, Development Services
Manager and Business Development Manager (1987 - 1995)
• Nil
60
Annual Report 2022
WOO KING HUAT ZULKIFLI ISHAK

Chief Credit Officer Chief Executive Officer/ Executive Director, Kenanga
Islamic Investors Berhad
52 55
DATE OF APPOINTMENT: 1 July 2015 DATE OF APPOINTMENT: 14 February 2019
• Bachelor of Commerce (Economics) (1991), Flinders University, • Bachelor of Science (Marketing Management) (1989), Syracuse
South Australia University, New York, USA
DIRECTORSHIP(S) IN PUBLIC COMPANY(IES) DIRECTORSHIP(S) IN PUBLIC COMPANY(IES)

• Nil • Kenanga Islamic Investors Berhad
RELEVANT EXPERIENCES RELEVANT EXPERIENCES

• RHB Investment Bank Berhad • I-VCAP Management Sdn Bhd
- Vice President, Corporate and Investment Banking Services - Head, Business Development (2015 - 2018)
(2011) • Eastspring Al-Wara’ Investments Berhad
• AmInvestment Bank Berhad - Chief Executive Officer and Chief Investment Officer (2009 -
- Associate Director, Debt Capital Market (2007 - 2010) 2014)
• OCBC Bank (M) Berhad • Eastspring Investments Berhad
- Assistant Vice President and Head, Investment Banking (2000 - - Director, Shariah Investments (2007 - 2009)
2007) • Amanahraya Investment Management Berhad
• Oversea-Chinese Banking Corp, LTD - Senior Manager, Fixed Income (2006 - 2007)
- Assistant Manager (1997 - 2000) • PMB Investment Berhad
• BSN Merchant Bank Berhad - Assistant General Manager, Investment (2005 - 2006)
- Senior Officer, Corporate Banking/ Capital Markets (1996 - 1997) • Philip Capital Group
• Malaysian Industrial Development Finance Berhad - Vice President, Investment (2002 - 2005)
- Project Officer (1994 - 1995) • Danamodal Nasional Berhad
• Diethelm Malaysia Sdn Bhd - Head of Treasury (2000 - 2002)
- Marketing Executive (1992 - 1993) • CIMB-Principal Asset Management Berhad
- Senior Fund Manager, Fixed Income (1996 - 2000)
PRESENT APPOINTMENT(S) • CIMB Bank Berhad
• Nil - Treasury Dealer (1991 - 1996)
• Nil
61
CHUAH SZE PHING TERENCE TAN KIAN MENG

Group Chief Sustainability Officer and Head of Group Group Chief Internal Auditor
Marketing and Communications
46 54
DATE OF APPOINTMENT: 1 September 2012 DATE OF APPOINTMENT: 17 January 2011
• Bachelor of Commerce (Marketing) (1999), University of Melbourne, • Bachelor of Commerce (Accounting) with Merit, University of New
Australia South Wales, Australia
• Certified Expert in ESG and Impact Investing • Certified Internal Auditor (The Institute of Internal Auditors, USA)
• Fellow Certified Practising Accountant (CPA Australia)
DIRECTORSHIP(S) IN PUBLIC COMPANY(IES) • Chartered Accountant (Malaysian Institute of Accountants)
• Nil • Chartered Banker, Asian Institute of Chartered Bankers and the
Chartered Banker Institute, United Kingdom
• Hong Leong Financial Group DIRECTORSHIP(S) IN PUBLIC COMPANY(IES)
- General Manager, Corporate Affairs and Public Relations (2010 - • Nil
2012)
• British American Tobacco PLC, London RELEVANT EXPERIENCES
- Senior Manager, Corporate Brand and Publications (2007 - • MCIS Zurich Insurance Berhad
2010) - Chief Internal Auditor (2009 - 2010)
• British American Tobacco Malaysia • DIGI Telecommunications Sdn Bhd
- Senior Manager, Corporate Communications (2004 - 2007) - Head, Financial and Operational Assurance (2006 - 2009)
• Weber Shandwick Worldwide • Astro All Asia Network PLC
- Senior Consultant, Corporate and Financial Practice (2002 - - Senior Manager, Financial and Operational Assurance (2004 -
2004) 2006)
• Accenture Malaysia • Bank Simpanan Nasional
- Change Management Analyst (2000 - 2002) - Head of Compliance (2003 - 2004)
• Citibank Berhad
PRESENT APPOINTMENT(S) - Assistant Vice President, Compliance and Control (1995 - 2003)
• Nil
• Nil
62
Annual Report 2022
NORLIZA ABD SAMAD TAI YAN FEE

Group Company Secretary Group Chief Risk Officer
57 51
DATE OF APPOINTMENT: 19 November 2012 DATE OF APPOINTMENT: 1 August 2017
• Chartered Governance Professional, Chartered Governance • Bachelor of Business Administration (1995), Universiti Kebangsaan
Institute, United Kingdom Malaysia
• Associate, Malaysian Institute of Chartered Secretaries and • Persatuan Pasaran Kewangan Malaysia (1997)
Administrators
DIRECTORSHIP(S) IN PUBLIC COMPANY(IES) • Nil
• Nil
RELEVANT EXPERIENCES • Citibank Berhad
• Kenanga Investment Bank Berhad - Country Market Risk Manager, FX, Rates and Liquidity (2011 -
- Head, Prudential and Governance Supervision, Group Regulatory 2015)
Division (2011 - 2012) - Trader, Treasury Structured Product/ Interest Rate Derivatives
• RHB Investment Bank Berhad (2005 - 2010)
- Assistant Vice President, Head, Compliance Strategy and • AmMerchant Bank Berhad
Governance Supervision, Investment Banking Compliance - Trader, Treasury Structured Product/ Interest Rate Derivatives
(2008 - 2011) (2001 - 2004)
• Affin Investment Bank Berhad - Corporate Sales, Treasury (1997 - 2000)
- Vice President, Corporate Services Department (2004 - 2008)
• Malayan Banking Berhad PRESENT APPOINTMENT(S)
- Senior Executive, Corporate Services Department (1994 - 2003) • Nil
• Nil
63
VAITHIYANATHAN MADAVAN IAN W. LLOYD

Head of Group Operations Chief Digital Officer
53 40
DATE OF APPOINTMENT: 1 January 2021 DATE OF APPOINTMENT: 3 January 2022
• Malaysian Institute of Accountants (2001) • Master of Business Administration (MBA) (2010), Warwick Business
• The Association of Chartered Certified Accountants (2000), United School, University of Warwick, United Kingdom
Kingdom • Dual BSc & MSc, Information Systems & Technology (2006), Drexel
University, Pennsylvania, USA
• ECML Berhad DIRECTORSHIP(S) IN PUBLIC COMPANY(IES)
• Nil
• Kenanga Investment Bank Berhad RELEVANT EXPERIENCES
- Head, Group Compliance (2017 - 2020) • MatchMove Pay (Singapore & Malaysia)
• Bursa Malaysia Berhad - Vice President, Head of Banking-as-a-Service (BaaS) Strategy &
- Head, Equities Surveillance (2015 - 2017) Delivery (2019 - 2021)
- Head, Intermediaries Supervision (2010 - 2015) • CIMB (Malaysia)
• Malaysia Derivatives Exchange Berhad - Digital Entrepreneur in Residence & Group Enterprise Architect
- Audit & Compliance (2001 - 2004) (2016 - 2019)
• COMMEX Malaysia • Deloitte (United Kingdom)
- Audit & Compliance (1998 - 2001) - Business & Technology Consulting Advisor, Financial Services
(2011 - 2016)
• Nil PRESENT APPOINTMENT(S)
• Nil
64
Annual Report 2022
LOW JIA YEE

Chief Technology Officer
40 Unless otherwise stated herein

• All members of the Senior Management Team do not have any family
DATE OF APPOINTMENT: 9 May 2022 relationships with any Director and/ or major shareholder of KIBB.
• None of the Senior Management Team have any conflict of interests with
QUALIFICATION(S) KIBB.
• Bachelor of Software Engineering (2003), Coventry University, • None of the Senior Management Team have been convicted of any
offence within the past five (5) years nor have they been imposed any
United Kingdom
penalty by the relevant regulatory bodies during the financial year.
• Directorship indicated herein reflects the directorship in public
DIRECTORSHIP(S) IN PUBLIC COMPANY(IES) companies.
• Nil
• MetLife, Inc.
- Head of Product and Platform Engineering Asia (2022)
- Head of Enterprise Architecture Asia (2019 - 2021)
• DHL
- Principal Architect (2012 - 2019)
• Hewlett-Packard
- Development Manager (2011 - 2012)
- Software Architect (2009 - 2011)
• Firium Solution Sdn Bhd
- Technical Lead (2006 - 2009)
• Others
- Software Engineer (2003 - 2006)
• PIKOM (The National Tech Association of Malaysia) CIO Chapter
Member
65
CORPORATE GOVERNANCE
OVERVIEW STATEMENT
Corporate governance is regarded by the Board of Directors (“Board”) as vital to the success of the
business of Kenanga Investment Bank Berhad (“KIBB” or “the Company”). Therefore, the Board is
unreservedly committed to applying the principles necessary to ensure that the principles of good
governance are practised in all of the Company’s business dealings and operations.
Understanding that the responsibility for good corporate governance rests with them, the Board strives to adopt the principles
(“KIBB Group”
and best practices of corporate governance and ensures that KIBB and Its Subsidiaries (“KIBB Group” or “Kenanga
“Kenanga Group”)
Group”)
(“BNM”),
complies with the various guidelines issued by Bank Negara Malaysia (“BNM (“Bursa
”), Bursa Malaysia Securities Berhad (“Bursa
Securities”)
Securities (“SC”).
”) and the Securities Commission Malaysia (“SC ”).
The Board is also committed to continuously undertake the appropriate actions to embed the principles and recommendations of
(“MCCG”)
the revised Malaysian Code on Corporate Governance (“MCCG ”) issued by the SC on 28 April 2021, into the Company’s existing
policies and procedures.
CORPORATE GOVERNANCE FRAMEWORK
STAKEHOLDERS
Group Company Secretary BOARD OF DIRECTORS
Group Governance,
Group Board
Audit Nomination & Group Board Risk Employees’ Share Shariah
Digital Innovation &
Committee Compensation Committee Scheme Committee Committee
Technology Committee
Committee
GROUP MANAGING DIRECTOR

Group Chief Internal
Auditor
GROUP EXECUTIVE COMMITTEE
MANAGEMENT COMMITTEES
Group Digital Group Business

Group Outsourcing
Group Credit Innovation Group Products Group Risk Group Operational Continuity
& Procurement
Committee Technology Committee Committee Risk Committee Management
Committee
Committee Committee
Corporate Finance Group Sustainability

Group Disciplinary Group Talent Staff Outreach Building
Senior Officer Management
Committee Committee Committee Committee
Committee Committee
66
Annual Report 2022
OVERVIEW STATEMENT
PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS
Board Responsibilities
The Board is collectively responsible for the long-term success of the Company and the delivery of sustainable value to its
stakeholders.
Board’s Key Responsibilities
Providing thought Ensuring that sustainability

Governing and setting the
leadership and championing considerations are
strategic direction of the Setting the appropriate
good governance and integrated in corporate
Company while exercising tone at the top.
ethical practices throughout strategy, governance and
oversight on Management.
the Company. decision-making.
The Board sets the Company’s values and standards and ensures that its obligations to the Shareholders and other stakeholders
which include the regulators, business partners, clients, employees, suppliers and vendors, are clearly understood and adhered to.
Each of the Board members of the Company is aware of his/her responsibilities to always exercise his/her powers in accordance
with the Companies Act 2016, for a proper purpose and in good faith and in the best interest of the Company. They also understand
that each of them is expected to exercise reasonable care, skill and diligence with the knowledge, skill and experience, which
may reasonably be expected of a Director having the same responsibilities; and any additional knowledge, skills and experience
which the Director in fact has.
Further, the Directors, collectively and individually, are aware of their responsibilities to the Shareholders and stakeholders for the
manner in which the affairs of the Company are managed.
In discharging its duties effectively and efficiently, the Board delegates specific responsibilities to the
Board Committees with clearly defined areas of authority and reporting arrangement to keep the Board informed on the
key deliberations and decisions on delegated matters. To promote objectivity, robust and open deliberations, the
Board Committees are chaired by an Independent Director who is not the Chairman of the Board. The roles and
responsibilities of the Board Committees are set out in their respective Terms of Reference which are available on KIBB’s website
at https://www.kenanga.com.my/investor-relations/corporate-governance.
The Board, in fulfilling its oversight role and carrying out its strategic intent and mandates, will give direction and guidance
through the Group Managing Director to Management or Management Committees to execute the approved corporate strategies,
established goals, as well as policies.
Notwithstanding any delegation of authority to Management or Committees, the Board reserves full decision-making power on
matters relating to amongst others, strategies, business plans and budget, significant policies, conflict of interest issues relating
to Substantial Shareholders and/ or a Director, material acquisitions or disposals of assets not in the ordinary course of business,
investment in capital projects, authority level, risk management policies, as well as, key human resource issues. The Board
reserved matters are also reflected in the Board Charter.
The roles and responsibilities of the Board are clearly defined in the Board Charter which is available on KIBB’s website at
https://www.kenanga.com.my/investor-relations/corporate-governance.
67
OVERVIEW STATEMENT
Board Reserved Matters
The Board’s key activities during the Financial Year Ended 31 December 2022, included amongst others, reviewing, deliberating,
recommending and approving where appropriate, key matters as outlined below.
STRATEGY/ FINANCIALS
• Budget and Business Plan for KIBB Group for the • Report on Non-Budgeted Expenditure Exceeding
Financial Year Ending 31 December 2023 RM100,000
• Proposals on New Investments/ Business Collaborations/ • 2022 Equity Derivatives’ Business Plan and Proposed
New Business Initiatives/ New Joint Venture/ Corporate Market Risk Limits
Exercises and Subsequent Updates • Reports on Associate and Joint Venture Companies
• Monthly Management Accounts • Proposed Increase in Quantum of Share Buyback and
• Quarterly Financial Results Renewal of Solvency Statement in Relation to the Share
• Waiver of Intercompany Balance for Dormant Companies Buyback Exercise
• Annual Assessment for Impairment of Assets for the • Annual Revision of Contingency Funding Plan 2022
Financial Year Ended 31 December 2021 • Provision of Financial Support and Contingency Funding
• Audited Financial Statements for the Financial Year for Subsidiaries
Ended 31 December 2021 and the Reports for the • Update on Utilisation of Treasury Shares for Settlement
Directors and Auditors of Employees’ Share Option Scheme
• Proposed Dividend for Financial Year Ended • Exercise of Call Option to Redeem Tranche 1 Under the
31 December 2021 Tier 2 Subordinated Note Programme
• Representation Letter to Ernst & Young PLT in Relation to • Call Option Placement Program – Subscriber
the Audit for the Financial Year Ended 31 December 2021 • Annual Impairment Assessment of Goodwill and
• Re-Appointment of External Auditors and Audit Fees for Intangibles for the Financial Year Ended 31 December
Financial Year Ended 31 December 2022 2022
68
Annual Report 2022
OVERVIEW STATEMENT
RISK, COMPLIANCE AND OVERSIGHT
• Monthly Regulatory Reports and Compliance Reports • Recurrent Related Party Transaction Entered into by
• Regulatory Audit/ Examinations Reports KIBB and Its Subsidiaries
• Monthly Risk Management Reports • Proposals Relating to the Structured Warrants Business
• Extension of Targeted Assistance Post COVID-19 • Quarterly Cyber Security Updates
Moratorium and Subsequent Updates • Pillar 3 Disclosure as at 31 December 2021
• Monthly Share Margin Financing Reports by Credit • Half-Yearly Review on Shariah Committee’s Decisions
Equity Broking • Annual Attestation of Products Issued in 2021
• Business Continuity Plan and Disaster Recovery Plan • Renewal of Insurance Policies in Respect of
Test Matrix for 2023 Comprehensive Crime Professional Indemnity Insurance,
• MY HORIZON 2020/Vol 5: BNM’s Operational Risk Directors and Officers Liabilities Insurance and Cyber
Report for Financial Industry Security Insurance
• Review of Existing and Establishment of New Policies • 2022 Group Outsourcing Plan
and Frameworks • KIBB’s Sustainability Report and Sustainability
• Operational Risk Scenario Analysis Assessment Review Statement and Sustainability Targets
2022 • KIBB’s 2022 Materiality Matrix Validation, Task Force on
• Recovery Time Objectives and Maximum Tolerable Climate-related Financial Disclosures Roadmap 2023-
Downtime of Critical Business Functions for 2023 2024 and Sustainability Roadmap 2023-2025
• Internal Capital Adequacy Assessment Process (ICAAP) • Statement on Risk Management and Internal Control
for 2021 • Report on Independent Review of Kenanga’s
• Operational Risk Capital Charge Assessment for 2021 Anti-Bribery and Corruption Compliance Program
• 2022 Equity Broking Short Term Equity Proprietary Trading • Kenanga Research Macroeconomic Outlook Summary
Portfolio, Business Plan and Proposed Market Risk Limits • Group Operations Report
• Credit Proposals Recommended/ Approved by the • Proposals Relating to Quant Business
Group Credit Committee • Regulatory EDGE: Regulatory Issuances Impact Review
• Monthly Connected Parties Exposure Reports for the First (1st) Half of 2022
• Monthly Reports on Recovery Status for KIBB Corporate • BNM Semi-Annual Stress Testing Report for Position as
Loans and Impaired Equity Accounts (With Impairment of 30 June 2022
Provisions)
GOVERNANCE
• Appointments and Re-Appointments of Directors within • Annual Performance Evaluation for the Board, Board
KIBB Group Committees and Individual Directors for the Financial
• Review of Compositions of the Boards and Board Year Ended 31 December 2021 Together with the Annual
Committees of KIBB and Its Subsidiaries Assessment on Independence and Fit and Proper
• Revision to the Terms of Reference of the Audit Committee, Criteria
Group Outsourcing & Procurement Committee, Group • Directors’ Training Calendar for 2022 and Status Report
Risk Committee and Group Executive Committee on KIBB Group Directors’ Training for 2021/ 2022
• Reports by Board Committees on Matters Discussed at • Remuneration and Benefits for Directors of KIBB Group
the Respective Board Committees’ Meetings • Notification by Directors and Principal Officers in
• Assessment on the Fitness and Propriety and Relation to Dealings in the Securities of KIBB
Re-Appointment of Members of Shariah Committee of • Re-Appointment of Datuk Chay Wai Leong, the Group
KIBB and Review of Their Remuneration Managing Director (“GMD”) of KIBB as a Member of the
Sustainability and Development Committee of Bursa
Malaysia Berhad (“Bursa Malaysia”)
69
OVERVIEW STATEMENT
Separation of the Roles of Chairman and GMD

GOVERNANCE
• Appointment of KIBB’s Representative on the Board The Company aims to ensure a balance of power and
of Directors of Its Associate Company authority between the Chairman and the GMD with a clear
• Proposed Revision to the Composition of the division of responsibility between the running of the Board
Management Committees and Shariah Committee and the Company’s business respectively. The positions of
• Key Human Resource Matters the Chairman and the GMD are separated and their roles and
o Employees’ Share Grant Scheme responsibilities are clearly defined and formally documented in
o Review of the List of Management Key Responsible the Board Charter.
Persons (“KRPs”) of KIBB Group as at 1 January
2022 Whilst the Chairman is responsible for leading the Board
o Review of the List of KIBB Group’s Management in setting the values and standards of the Company,
KRPs’ Employment Contracts Expiring in 2022 as well as maintaining a relationship of trust with and between
o New Appointment, Review and Renewal of Management and Non-Executive Directors, the GMD, on the
Contract of Appointment of Management KRPs other hand, is entrusted with the executive responsibility for
o 2021 Performance Appraisal and Annual the day-to-day management of the business which includes
Assessment on Fit and Proper for GMD, Group developing the strategic direction of the Company for review
Chief Regulatory and Compliance Officer, and approval by the Board and ensuring that the Company’s
Management KPRs, Head of Group Compliance strategies and corporate policies as approved by the Board are
(only Performance Appraisal) and Group Company effectively implemented with the assistance of the Management
Secretary team. In fulfilling this role, the GMD is given certain powers
o Renewal of Group Staff Insurance Policies for to execute transactions, guided by the internal rules and
2023 procedures and in accordance with the threshold set in the
o 2022 Balanced Scorecards for Management KRPs Group Approving Authority Framework.
o Proposals in Relation to Employees’ Share Option
Scheme Board Composition
o 2021 Performance Bonus and 2022 Annual Salary
Increment The Board of KIBB currently comprises the following
o Review of Management KRP’s Succession Plan eight (8) members, five (5) of whom are Independent
o Re-Appointment of YM Tan Sri Dato’ Paduka Non-Executive Directors (“INED”) and the remaining three (3)
Tengku Noor Zakiah Binti Tengku Ismail as Adviser are Non-Independent Non-Executive Directors (“NINED”):
of KIBB
o Identification and Updating of the List of Material
YAM TAN SRI DATO’ SERI SYED
Risk Takers and List of Other Material Risk Takers Chairman, INED
ANWAR JAMALULLAIL
within KIBB Group
o Creation of the Group Chief Sustainability Officer
ENCIK ISMAIL HARITH MERICAN NINED
(“CSO”) Position and Appointment of Ms. Chuah
Sze Phing as Group CSO and Head of Group NINED
MR. LUK WAI HONG, WILLIAM
Marketing & Communications of KIBB
o Changes in Employment Act 1955 (Amendment Senior INED
ENCIK JEREMY NASRULHAQ
2022) and Proposal to Review Kenanga Group HR
Policies and Terms & Conditions of Employment PUAN NORAZIAN AHMAD TAJUDDIN INED
Impacted by the Changes, Where Applicable
o Appointment of New Group Executive Committee MR. KANAGARAJ LORENZ INED
Member
MR. CHOY KHAI CHOON NINED
MADAM CHIN SIEW SIEW INED
70
Annual Report 2022
OVERVIEW STATEMENT
SNAPSHOT OF THE BOARD’S PROFILE
Board Balance and Composition Number of Directors under Different Tenure

(as at 31 March 2023)
Independent Non-Independent (37.5%)

: 3
Directors Directors
(25.0%) (25.0%)
2
(12.5%)
1
Directors’ Nationality
Less than Two More than Two More than Five More than
(2) years (2) years but (5) years but Nine (9) years
Less than Five Less than Nine but Less than
7 Malaysian 1 Hong Kong (5) years (9) years Fifteen (15)
years
Number of Independent Directors under

2 Female Different Tenure
(25%) (as at 31 March 2023)
(60.0%)
3
Gender Diversity
2
on Board
(20.0%) (20.0%)
1
6 Male Less than Two More than Two More than Five
(75%) (2) years (2) years but (5) years but
Less than Five Less than Nine
(5) years (9) years
Number of Directors under Different Age Group

Skills and Experience
5
(50.0%) 150.0%
4 (100.0%)
100.0%
3 (62.5%)
(25.0%) (25.0%)
50.0% (25.0%) (25.0%) (25.0%)
2 (12.5%)
1
Risk & Governance Commercial & Marketing
Digital & Technology Accounting & Audit
50 to 59 60 to 69 70 to 79
years old years old years old Finance, Securities & Banking Management & Leadership
The Board’s composition complies with the minimum one-third (1/3) requirement of Independent Directors as stipulated in the
Main Market Listing Requirements (“MMLR”) of Bursa Securities and the majority of Independent Directors requirement stipulated
in BNM’s Policy Document on Corporate Governance.
71
OVERVIEW STATEMENT
Tenure of Independent Directors
In compliance with BNM’s Policy Document on Corporate Following Malaysia’s reopening of its international borders on
Governance and as set out in KIBB’s Board Charter, the tenure 1 April 2022 as it began the transition to COVID-19 endemic
of an INED should not exceed a cumulative term of nine (9) years. phase, KIBB had likewise, slowly transitioned all of its Board
and Board Committees meetings to hybrid and/or physical
Upon completion of nine (9) years, an INED may continue to mode.
serve on the Board as a NINED subject to BNM’s prior approval
being obtained. Based on the current Board composition, none The Directors’ attendance at Board and Board Committee
of the INED’s tenure exceeds nine (9) years. meetings held during the Financial Year Ended 31 December
2022 are provided below.
Notwithstanding the aforementioned, as deliberated by the
Board of KIBB at its meeting on 29 July 2021 on the application Board
and adoption of Practices and Step-Up Practices of the revised
MCCG, moving forward and in the spirit of the MCCG, Clause Number of Meetings
3.3 of KIBB’s Board Charter which allows for extension of an Percentage
INED’s tenure beyond the nine (9) years, would be revised to Name of Director Held (1)
Attended (%)
incorporate a formal policy which limits the tenure of an INED to
nine (9) years without further extension in line with the MCCG’s YAM Tan Sri Dato’ Seri
Step Up Practice 5.4. Syed Anwar Jamalullail 11 11 100.0%
(Chairman)
The profile of each Director is available on pages 48 to 55 of Mr. Luigi Fortunato
5 4 80.0%
this Annual Report. Ghirardello(2)
Encik Ismail Harith
11 11 100.0%
Board and Board Committee Meetings Merican
Mr. Luk Wai Hong,
11 11 100.0%
In 2022, eleven (11) Board meetings were held, two (2) of William
which were special meetings which were convened to consider Encik Jeremy Nasrulhaq 11 11 100.0%
urgent proposals that required the Board’s expeditious review Puan Norazian Ahmad
and deliberation. 11 11 100.0%
Tajuddin
Mr. Kanagaraj Lorenz 11 11 100.0%
As stipulated in the Board Charter and the Constitution of the
Mr. Choy Khai Choon 11 11 100.0%
Company, a Director of the Company must attend at least 75%
Madam Chin Siew
of the Board meetings held during the financial year, in line 6 6 100.0%
Siew(3)
with the requirement of BNM’s Policy Document on Corporate
Governance.
Notes:
(1) Reflects the number of meetings held during the time the Director held office.
During the Financial Year Ended 31 December 2022, most of (2) Retired from the Board of KIBB on 26 May 2022.
(3) Appointed as an INED on 1 June 2022.
the Directors of the Company attended 100% of the Board
meetings convened, demonstrating a strong commitment and
dedication of the Board members in fulfilling and discharging
their respective roles and responsibilities as Directors of the
Company.
72
Annual Report 2022
OVERVIEW STATEMENT
Audit Committee (“AC”) Group Board Risk Committee (“GBRC”)
Number of Meetings Number of Meetings

Percentage Percentage
Name of Director Held(1) (2) Attended (%) Name of Director Held(1) (2) Attended (%)
Encik Jeremy Puan Norazian Ahmad

8 8 100.0% 8 8 100.0%
Nasrulhaq (Chairman) Tajuddin(3) (Chairman)
Mr. Luk Wai Hong, Mr. Luigi Fortunato
8 8 (4) 100.0% 2 2 100.0%
William(3) Ghirardello(4)
Mr. Kanagaraj Lorenz 8 8 100.0% Mr. Luk Wai Hong,
8 8 100.0%
William(5)
Puan Norazian Ahmad
0 0 0.0% Mr. Kanagaraj Lorenz 8 8 100.0%
Tajuddin(5)
Mr. Choy Khai Choon (6)
7 7 100.0%
Notes: Madam Chin Siew Siew(7) 1 1 100.0%
(2) Total number of meetings held was inclusive of one (1) joint meeting between
Notes:
AC and GBRC which was held on 30 August 2022.
(3) Ceased to be a member of the AC on 1 November 2022.
(2) Total number of meetings held was inclusive of one (1) joint meeting between
(4) Attended all the eight (8) meetings held up to 25 October 2022.
AC and GBRC which was held on 30 August 2022 except for Mr. Luigi
(5) Appointed as a member of the AC on 1 November 2022.
Fortunato Ghirardello and Madam Chin Siew Siew.
(3) Appointed as a Chairman of the GBRC on 1 November 2022.
Group Governance, Nomination & Compensation (4) Retired from the Board of KIBB and ceased to be a member of the GBRC on
Committee (“GNC”) 26 May 2022.
(5) Ceased to be the Chairman of the GBRC on 1 November 2022 but remained
as its member.
Number of Meetings (6) Appointed as a member of the GBRC on 26 January 2022.
(7) Appointed as a member of the GBRC on 1 November 2022.
Percentage
Name of Director Held(1) Attended (%)
Group Board Digital Innovation & Technology Committee
Madam Chin Siew (“GBDITC”)
0 0 0%
Siew(2) (Chairman)
Mr. Luk Wai Hong, Number of Meetings
8 8 (4) 100.0%
William(3) Percentage
Encik Jeremy Name of Director Held(1) Attended (%)
8 8 100.0%
Nasrulhaq
Mr. Kanagaraj Lorenz
Mr. Luigi Fortunato 6 6 100.0%
5 5 (6) 100.0% (Chairman)
Ghirardello(5)
Mr. Luk Wai Hong,
Encik Ismail Harith 6 6 100.0%
8 8 100.0% William
Merican
Mr. Luigi Fortunato
Puan Norazian Ahmad 1 1 100.0%
8 8 100.0% Ghirardello(2)
Tajuddin(7)
Puan Norazian Ahmad
Mr. Choy Khai Choon(8) 3 3 100.0% 5 5 100.0%
Tajuddin(3)
Encik Jeremy Nasrulhaq 6 6 100.0%
Notes:
(1) Reflects the number of meetings held during the time the Director held office. Mr. Choy Khai Choon (4)
6 6 100.0%
(2) Appointed as a Chairman of the GNC on 1 November 2022. Madam Chin Siew Siew(5) 4 4 100.0%
(3) Ceased to be a member of the GNC on 1 November 2022.
(4) Attended all the eight (8) meetings held up to 25 October 2022.
Notes:
(5) Retired from the Board of KIBB and ceased as a member of the GNC on 26
May 2022.
(2) Retired from the Board of KIBB and ceased to be a member of the GBDITC
(6) Attended all the five (5) meetings held up to 28 April 2022.
on 26 May 2022.
(7) Ceased to be the Chairman of the GNC on 1 November 2022 but remained as
(3) Ceased to be a member of the GBDITC on 1 November 2022.
its member.
(4) Appointed as a member of the GBDITC on 26 January 2022.
(8) Appointed as a member of the GNC on 1 June 2022.
(5) Appointed as a member of the GBDITC on 1 July 2022.
73
OVERVIEW STATEMENT
Employees’ Share Scheme Committee (“ESS Committee”) Shariah Committee
Number of Meetings Number of Meetings

Percentage Percentage
Name of Director Held(1) Attended (%) Name of Director Held(1) Attended (%)
Madam Chin Siew Dr. Ghazali Jaapar

0 0 0.0% 12 12 100.0%
Siew(2) (Chairman) (Chairman)
Mr. Luk Wai Hong, Dr. Mohammad
1 1 100.0%
William(3) Firdaus Mohammad 12 12 100.0%
Encik Jeremy Hatta
1 1 100.0%
Nasrulhaq Dr. Fadillah Mansor 12 12 100.0%
Puan Norazian Ahmad
1 1 100.0% Note:
Tajuddin(4) (1) Reflects the number of meetings held during the time the Shariah Committee
member held office.
Notes:
(2) Appointed as the Chairman of the ESS Committee on 1 November 2022.
(3) Ceased to be a member of the ESS Committee on 1 November 2022.
(4) Ceased to be the Chairman of the ESS Committee on 1 November 2022 but
remained as its member.
74
Annual Report 2022
OVERVIEW STATEMENT
Group Governance, Nomination & Compensation Committee
The GNC of KIBB comprises a majority of INEDs and is chaired by an INED who is not the Chairman of the Board.
Details on the GNC’s composition, as well as, its members’ attendance at the GNC meetings held during the Financial Year
Ended 31 December 2022 are provided on page 73 of this Annual Report and in Section B of the Corporate Governance Report
(“CG Report”) which is available on KIBB’s website at https://www.kenanga.com.my/investor-relations/AGM2023.
The functions and responsibilities of the GNC are set out in its Terms of Reference which is available on KIBB’s website at
During the Financial Year Ended 31 December 2022, the GNC had deliberated, reviewed and made appropriate recommendations
to the Board for approval, pertaining to key matters stated below.
• Appointments and Re-Appointments of Directors within • Re-Appointment of YM Tan Sri Dato’ Paduka Tengku
KIBB Group Noor Zakiah Binti Tengku Ismail as Adviser of KIBB
• Annual Performance Evaluation for the Board, Board • Appointment of New Group Executive Committee
Committees and Individual Directors for the Financial Member
Year Ended 31 December 2021, Together with the Annual • List of Management KRPs of the Group as at 1 January
Assessment on Independence and Fitness and Propriety 2022
of Directors • New Appointment, Review and Renewal of Contract of
• Review of Compositions of the Board and Board Appointment of Management KRPs
Committees of KIBB and Its Subsidiaries • Annual Performance Review and Assessment on the
• Payment of Directors’ Fees for the Financial Year 2021 Fitness and Propriety of Management KRPs
and Meetings Allowances and Benefits for Directors of • Review of the List of Material Risk Takers and List of
KIBB Group for the Financial Year 2022 Other Material Risk Takers within KIBB Group and
• Directors Training Calendar for 2022 and Status Report Review of Their Compensation
on KIBB Group’s Directors Training for 2021/2022 • 2021 Annual Performance Bonus and 2022 Annual
• Appointment of KIBB’s Representative on the Board of Salary Increment for the Group
Directors of Its Associate Company • 2022 Annual Balanced Scorecards for GMD, Management
• Assessment on the Fitness and Propriety and Re- KRPs, Group Company Secretary and Head of Group
Appointments of Members of the Shariah Committee of Compliance
KIBB and Their Remuneration • Proposal to Adopt Appraisal Demerit Matrix
• Review of Annual Report 2021 Disclosures • Changes in Employment Act 1955 (Amendment 2022)
• KIBB’s Sustainability Report, Sustainability Statement and Proposal to Review Kenanga Group HR Policies
and Sustainability Targets and Terms & Conditions of Employment Impacted by the
• KIBB’s 2022 Materiality Matrix Validation, Task Force Changes, Where Applicable
on Climate-related Financial Disclosures Roadmap • Report on Employees’ Share Option Scheme
2023-2024 and Sustainability Roadmap 2023-2025 Effectiveness
75
OVERVIEW STATEMENT
Board Appointment Framework
The Board, via the GNC, has put in place a formal and The roles and responsibilities of the ESS Committee which are
transparent framework governing the appointments of new outlined in its Terms of Reference include the determination
Directors and Board Committee members, wherein the GNC of all questions of policy and expediency that may arise in
will recommend the appointment of suitable candidate as the administration of the ESS including, amongst others, the
Director and Board Committee member of the Company and terms of eligibility of the employees of the Company and its
its subsidiaries, to the Board for approval. non-dormant subsidiaries (“Eligible Employees” or “Eligible
Persons”), the method or manner in which the grants are made
With regard to skills and experience, a skills matrix review to and exercised by Eligible Employees and any conditions
processes had been put in place whereby the GNC will imposed in relation thereto, and the termination of any options,
undertake a rigorous assessment of potential candidates, prior and generally the exercise of such powers and performance of
to making any recommendations to the Board for appointment such acts as are deemed necessary or expedient to promote
of a new Director. the best interests of the Company.
During the Financial Year Ended 31 December 2022, the Board The functions and responsibilities of the ESS Committee are
composition had undergone some changes following the set out in its Terms of Reference which is available on KIBB’s
retirement of Mr. Luigi Fortunato Ghirardello, a NINED of KIBB website at https://www.kenanga.com.my/investor-relations/
on 26 May 2022, appointment of Madam Chin Siew Siew as corporate-governance.
an INED of KIBB on 1 June 2022 and re-designation of Mr. Luk
Wai Hong, William from an INED to a NINED upon his tenure as Shariah Committee
an INED reaching the nine (9)-year threshold, on 1 November
2022. The Shariah Committee was established to provide objective
and sound advice to the Board of KIBB to ensure that the
With the changes, the composition of the Board still complies Company’s aims and operations, business affairs and activities
with the requirements for the Board to comprise a majority of pertaining to its Islamic Banking Window (Skim Perbankan
Independent Directors, whereas the appointment of Madam Islam) comply with Shariah rules and regulations as reflected in
Chin Siew Siew had brought the ratio of women Directors on the fatwas, rulings and guidelines issued by Shariah Advisory
the Board to 25% from 12.5% previously, closer to the target Council of BNM and the SC.
of 30%.
The composition of the Shariah Committee is in line with
Employees’ Share Scheme Committee Paragraphs 13.1 to 13.5 of BNM’s Shariah Governance
Policy Document which requires the Shariah Committee, at a
To assist the Board in the administration of KIBB Group’s minimum, to comprise at least three (3) members. All Shariah
Employees’ Share Scheme (“ESS” or “Scheme”), in accordance Committee members have the Shariah background.
with the By-Laws governing the Scheme as approved by
Shareholders of KIBB, the Board had established an ESS The functions and responsibilities of the Shariah Committee are
Committee comprising solely of Independent Directors. set out in its Terms of Reference which is available on KIBB’s
website at https://www.kenanga.com.my/investor-relations/
The main objective of the ESS as approved by the Shareholders corporate-governance.
of KIBB on 25 May 2017, is to align the employees’ interests
with the long-term objectives of KIBB Group to create
sustainable value enhancement for its Shareholders through a
high performance culture.
76
Annual Report 2022
OVERVIEW STATEMENT
Board Diversity and Gender
In recognition of the benefits of a diverse Board Arising from the gap analysis, the Board had identified certain action
in terms of the ability to tap into the many talents plans in terms of application and adoption of the Practices and Step-
which the Board members from their different ages, Up Practices, respectively.
cultural backgrounds, industry exposure, expertise,
competency, experience, knowledge and gender bring One of the action plans identified was to adopt Practice 5.9 of the
to the Company, as well as, their abilities to respond MCCG which recommended for the Board to comprise at least
to business opportunities more rapidly and creatively, 30% women Directors. Being a Capital Markets Services Licence
the Company has endeavoured and will continue to (“CMSL”) Holder under the SC, KIBB is also required to comply
endeavour to achieve an appropriate mix of members with the requirements of Paragraph 5.06 of the SC’s Guidelines on
to achieve diversification. Corporate Governance for Capital Market Intermediaries (“SC’s CG
Guidelines”), for the Board of a CMSL Holder to comprise at least
During the search of a suitable candidate, one of the 30% women Directors.
key considerations is to ensure that the skill-set of
the Board is appropriately balanced to support the Consequential to the appointment of Madam Chin Siew Siew as an
strategies and long-term goals of KIBB Group. Amongst INED, the Board composition had moved closer to the requirement
others, the considerations include whether the skill-set of 30% women Directors. Even though KIBB had not fully adopted
of the new candidate could complement the collective Practice 5.9 under the MCCG, it had, however, deemed as having
skill-set of the existing Directors, the integrity and the fulfilled the requirement of Paragraph 5.06 of the SC’s CG Guidelines,
character of the candidate, the ability to contribute as the SC allowed the rounding up of the percentage up to a maximum
different perspectives to the Board, as well as the ability 5%.
to commit sufficient time and attention to the affairs of
the Company and whether he/ she could fit in with the To fully adopt Practice 5.9 of the MCCG, the Board will endeavour to
Company’s culture. source for suitable woman candidates for future appointment as and
when changes to the Board composition are required or reviewed,
Following the issuance of the revised MCCG by the SC in line with the Company’s business direction and strategy, within a
on 28 April 2021, the Board of KIBB had, at its meeting timeframe of three (3) years or less from the issuance of the MCCG on
on 29 July 2021, deliberated on the status of KIBB’s 28 April 2021. Any appointment of a woman Director would be based
application of the Practices and adoption of the Step- on merit and potential contributions that she could bring to KIBB, as
Up Practices of the MCCG. well as the Group.
77
OVERVIEW STATEMENT
Board Education and Development
1. Induction Programme for Newly Appointed Director
KIBB has developed an induction programme for its newly appointed Directors to familiarise them with the industry and
KIBB’s business and operations, within three (3) months of their appointments.
This induction programme, which is facilitated by the Group Company Secretary’s Office, is conducted by way of a briefing
and discussion amongst the Senior Management with the newly appointed Director, on the Company’s vision and mission,
its philosophy and nature of business, current issues, the corporate strategy of the Group, responsibilities and duties of
the Board as a whole, an overview of the risks of the businesses, risk management strategy of KIBB, legal requirements,
compliance and regulations, as well as, financial overview of the Group and the expectations of KIBB with regard to
contributions from the Directors towards the Company’s achievement of its goals.
During this induction programme, the newly appointed Director will also be briefed on the Company’s governance framework,
the Board processes, as well as, his/ her individual roles and responsibilities as a Board member.
Non-Executive Directors appointed to the Boards of subsidiaries within the Group shall also be provided similar induction
programme tailored to the scope of their appointments at the respective entities.
In relation thereof, during the Financial Year 2022, in-house Induction Programme for Newly Appointed Non-Executive
Directors had been provided for the following newly appointed Directors within the Group:
Company Name of Newly Appointed Director Date of In-House Induction Programme
KIBB 1. Mr. Choy Khai Choon 20 January 2022

2. Madam Chin Siew Siew 6 & 7 July 2022
Kenanga Investors Islamic Berhad Puan Norazian Ahmad Tajuddin 14 June 2022
I-VCAP Management Sdn Bhd Puan Norazian Ahmad Tajuddin 31 January 2023
2. Directors’ Continuous Education and Development
In ensuring that the Directors are kept abreast of new developments pertaining to the laws and regulations, the changing
commercial risks, as well as, technology and cyber security issues, which may affect the Board and/ or the Company and
to ensure that they are fully equipped with the necessary knowledge to assist them in fulfilling their responsibilities as
Directors, the Company, through the Group Company Secretary’s Office, facilitates the participation and attendance of
Directors at appropriate external and in-house training programmes.
In addition to completing the Mandatory Accredited Programme (“MAP”) as required by Bursa Securities, the Financial
Institutions Directors’ Education (“FIDE”) Core Programme and the Islamic Finance for Board Programme (“IF4BOD”)
as required by BNM, and the Capital Market Director Programme (“CMDP”) as required by the SC for newly appointed
Directors, the Board members are also encouraged to attend training programmes, conducted by recognised professionals/
providers, which are relevant to the Company’s operations and business.
To date all the Board members of KIBB had completed the mandatory training programmes required by the respective
regulators as aforementioned, including Madam Chin Siew Siew who had completed the CMDP in August 2022, and the
MAP in September 2022, within the timeframe stipulated by the SC and Bursa Securities, respectively. Regarding the
IF4BOD1, Madam Chin Siew Siew and YAM Tan Sri Dato’ Seri Syed Anwar Jamalullail had registered themselves for the
programme and expected to complete the same within the stipulated timeframe, as well.
1
To be completed within three (3) years of their respective appointments.
78
Annual Report 2022
OVERVIEW STATEMENT
In facilitating the Directors’ education and development requirements, the Group Company Secretary’s Office, in addition to
monitoring the status of all mandatory training programmes to be completed by the Directors, also establishes an Annual
Directors’ Training Calendar encompassing external training programmes, available in the market and/ or recommended
by the Board members and/ or in-house training programmes, which is tabled for endorsement by the GNC and the Board
in the first (1st) quarter of each year to create awareness amongst the Directors of training programmes which are available
for the year. Thereafter, the GNC and the Board will be updated on the status of Directors’ participation in these training
programmes on a quarterly basis.
The establishment of the Annual Directors’ Training Calendar, took into consideration the feedback/ suggestions received
from Directors during the annual Board evaluation process in terms of specific training needs required to enhance the
Board’s effectiveness and skill-set.
Based on the feedback received from the Directors during the Board Performance Evaluation conducted in 2022, the
following areas were identified to be included in the Directors’ training needs:
• Sustainability, Environmental, Social and Governance (“ESG”) Risks and Climate Change Risks;
• Fintech, Technology Innovations, Artificial Intelligence, including Information Sharing on Market Developments in
Digital Products and Competitors;
• Risks in Islamic Finance;
• Cyber Security; and
• Refresher in-house programmes on product knowledge such as Equity Derivatives, Treasury, Digital Business, and
Money Market, as well as Anti-Money Laundering and Counter Financing of Terrorism, Section 17A of the Malaysian
Anti-Corruption Commission Act 2009, and Consequence Management Process in respect of Management KRPs,
the GMD and the Board.
3. Training Programmes Attended by Directors During Financial Year 2022
Title of Programme Attended By

Property, Insurance, Strategy, Accounting & Finance, Governance, Economy, Leadership, Business, Risk, Tax
1. An Overview of Revenue Recognition: Property Development Activities by Ernst & Young PLT (“EY”) - TSAJ
In-House Programme Organised by S P Setia Berhad (“S P Setia”)
2. Overview on Zone AOA (Asia, Oceania and Sub-Saharan Africa) Strategic Roadmap 2022 - TSAJ
In-House Programme Organised by Nestle (Malaysia) Berhad (“Nestle”)
3. ASEAN Business Summit by Bloomberg CKC
4. Management Accounting and Business Environment - University Malaysia (“UM”) (attended as a JN
speaker of Faculty of Business and Economics of UM)
5. Webinar on The Corporate Governance (“CG”) Overview Statement, CG Report, Audit Committee JN
Report and the Statement on Risk Management & Internal Control (“SORMIC”)
6. Nomination and Remuneration Committee (“NRC”) Dialogue & Networking - Session #1 by Institute NT
of Corporate Directors Malaysia (“ICDM”)
7. MetaFinance: The Next Frontier of the Global Economy by FIDE FORUM NT & RL
8. Thriving in the New Normal Leading Through Geopolitical Volatility & Compressed Transformation CKC
by Bloomberg and Accenture
9. Assessing Your Organisational Culture by ICLIF Executive Education Center (“ICLIF”) (Asia School CKC
of Business)
10. Governance & Compliance Training – In-House Directors’ Training organised by Nestle TSAJ
79
OVERVIEW STATEMENT

Property, Insurance, Strategy, Accounting & Finance, Governance, Economy, Leadership, Business, Risk, Tax
11. FIDE FORUM Leadership Perspectives Forum on Board Effectiveness in Conjunction with the JN & NT
Launch of FIDE FORUM Board Effectiveness Evaluation Guidebook
12. Navigating Through the Evolution of Corporate Governance with the introduction of Tax Corporate CSS
Governance Framework by KPMG Board Leadership Centre Exclusive
13. Overview on Human Resource by Nestle TSAJ
14. Overview on Sales & e-Commerce by Nestle TSAJ
15. ARC International SPAC Seminar RL
16. Engagement Session with Board Members of General Insurers and Takaful Operators on Motor CKC & CSS
Claims Reforms by FIDE FORUM
17. Alibaba Cloud Summit Kuala Lumpur 2022 by Ali Baba Cloud JN & RL
18. International Directors Summit 2022 by ICDM JN
19. The Emerging Trends, Threats and Risks to the Financial Services Industry - Managing Global Risk JN & CSS
Investment and Payment System - FIDE Forum
20. Sembang Nasi Lemak: Tone from the Top - Government Perspectives – In-House Programme TSAJ
Organised by S P Setia
Regulatory and Compliance, Dialogue and Discussion with Regulators, Institutions
21. Capital Market Directors Programme ("CMDP") - Module 1 - Directors As Gatekeepers of Market CKC & CSS
Participants by Securities Industry Development Corporation ("SIDC")
22. CMDP - Module 2A - Business Challenges and Regulatory Expectations – What Directors Need To CKC & CSS
Know (Equities & Future Broking) by SIDC
23. CMDP - Module 3 - Risk Oversight and Compliance – Action Plan for Board of Directors by SIDC CKC & CSS
24. CMDP - Module 4 - Emerging and Current Regulatory Issues in Capital Market by SIDC CKC & CSS
25. Non-Compliance with Laws and Regulations by Malaysian Institute of Accountants ("MIA") - JN
attended as Moderator
26. Mandatory Directors' Programme ("MAP") by Bursa Securities CSS
27. Recovery and Resolution Planning Sharing Session by PIDM (Perbadanan Insurans Deposit CSS
Malaysia) - FIDE Forum
28. Conversations with Audit Committee - Session 1 by SC JN & NT
29. Malaysian Anti-Corruption Commission Act 2009 Section 17A: The Impact of the Technology & the TSAJ, IHM, LWH,
Newly Enhanced Sustainability Reporting by Dr. Mark Lovatt - ICDM JN, NT, RL, CKC &
CSS
30. Contemporary Issues In Anti-Money Laundering by Nature of Life TSAJ, IHM, LWH,
JN, NT, RL, CKC &
CSS
Information Technology, Digitalisation, Cyber Security
31. BNM-FIDE Forum MyFintech Week Masterclasses TSAJ, LFG, LWH,
JN, NT, RL & CKC
32. Digital Transformation by ICLIF - In-House Directors’ Training Organised by S P Setia TSAJ
33. Offshore Technology Conference Asia CKC
34. Bursa 2022 Market Intermediaries and Advocacy Programmes - Addressing and Responding to LWH & CKC
Growing and More Complex Threat of Cyber Security by Asia School of Business
35. SIDC Webinar: The Ongoing Journey of Digital Transformation: Latest Trends and Insight JN
36. Overview/ Update on Cyber Security by Nestle TSAJ
37. Singapore Fintech Festival 2022 IHM, LWH, JN, NT,
RL, CKC & CSS
80
Annual Report 2022
OVERVIEW STATEMENT

Information Technology, Digitalisation, Cyber Security
38. Case Study on Properties Companies by Mr. Derick Loi of ANT Group TSAJ
39. Board of Directors Cybersecurity Awareness by EC-Council TSAJ, IHM, LWH,
JN, NT, RL, CKC &
CSS
Islamic Banking and Finance, Shariah Compliance
40. Islamic Wealth Management from Shariah Perspective by Shariah Adviser of KIBB NT
41. INVESTASEAN2022 Business Sustainability Series - Shaping a Green Islamic Capital Market - TSAJ
Opportunities & Trends by Malayan Banking Berhad
Sustainability and Environment, Social and Governance (“ESG”)
42. Sustainability and Its Impact on Organisations: What Directors Need to Know by ICLIF LFG
43. Task Force on Climate Related Financial Disclosure ("TCFD") - Climate Disclosure Training by Bursa LFG, JN & NT
Malaysia - TCFD 101
44. BNM-FIDE Forum Dialogue: Climate Risk Management and Scenario Analysis JN & NT
45. TCFD - Climate Disclosure Training by Bursa Malaysia - TCFD 102 LFG, JN & NT
46. Introductory Session by UN Global Compact (“UNGC”) on TSAJ, LFG, IHM,
a. Brief Introduction on Board Leadership & Sustainability; and LWH, JN, NT, RL &
b. KIBB-UNGC Collaboration Plans CKC
47. Global Outlook for ESG Finance by ICLIF - In-House Directors’ Training organised by S P Setia TSAJ
48. ESG Sharing Session by Korn Ferry TSAJ
49. PNB Knowledge Forum 22: Sustainable Investing: ESG at the Forefront by Permodalan Nasional TSAJ
Berhad
50. Overview on ESG & Update from CSV (Creating Shared Value) Council by Nestle TSAJ
51. Briefing on ESG by EY – In-House Programme organised by Zurich Insurance Malaysia Berhad CKC
52. Virtual MIA International Accountants Conference 2022: Leading ESG, Charting Sustainability by TSAJ & JN
MIA
53. Understanding ESG Rating Frameworks to Enable Sustainable Investing in Malaysia by FTSE CKC
Russell
54. International Sustainability Standards Board’s Briefing Workshop and Q&As for Emerging Markets JN & NT
by United Nations Sustainable Stock Exchanges Initiative
55. Sustainability Training – In-House Directors’ Training Organised by Nestle TSAJ
56. Webinar on Directors’ Duties and Climate Change by Malaysian Bar Council TSAJ
57. Setting Science-Based Targets by UNGC Academy NT
58. How to Understand and Take Action on the Global Goals by UNGC NT
59. Climate Governance Malaysia Conversations with Chairmen: A Standing Item in Board Agendas by CKC
FIDE FORUM
60. Advocacy Dialogue on the Enhanced Sustainability Reporting Framework by Bursa Malaysia NT & RL
Legend
• YAM Tan Sri Dato’ Seri Syed Anwar Jamalullail (“TSAJ”)
• Mr. Luigi Fortunato Ghirardello (“LFG”)
• Encik Ismail Harith Merican (“IHM”)
• Mr. Luk Wai Hong, William (“LWH”)
• Encik Jeremy Nasrulhaq (“JN”)
• Puan Norazian Ahmad Tajuddin (“NT”)
• Mr. Kanagaraj Lorenz (“RL”)
• Mr. Choy Khai Choon (“CKC”)
• Madam Chin Siew Siew (“CSS”)
81
OVERVIEW STATEMENT
4. Training Programmes Attended by Members of Shariah Committee During Financial Year 2022

1. Application of Islamic Treasury from Industry Practitioner’s Perspective by Islamic Finance DGJ, DMF & DFM
Research and Coaching Sdn Bhd (“IFRAC”)
2. Assessing Potential Sukuk Default and Case Studies by IFRAC DGJ
3. A-Z Practical Knowledge on Sukuk Structuring by IFRAC DGJ & DMF
4. Sukuk Fundamentals for Everyone by IFRAC DMF
5. MFRS 17 Training by EY DMF
6. Takaful Industry in Malaysia: Development & Challenges organised by UiTM, University of DMF
Bolton UK, Great Eastern Takaful Berhad, Hume Institute Lausanne & Chartered Institute of
Insurance UK
7. Code of Ethics & Professional Conduct by Association of Shariah Advisors in Islamic Finance DMF
Malaysia
8. Knowing Your Role: Financial Planners & Financial Advisers Explained by Malaysian Financial DFM
Planning Council
9. How to Manage an Equity Portfolio Using Both Fundamental Analysis and Technical Analysis DFM
by Financial Planning Association Malaysia
10. NVRM122 Corporate Sukuk (Bonds) Financial Modelling using Microsoft Excel by Neurover DFM
(Malaysia) Sdn Bhd
11. 5th World Islamic Economics and Finance Conference, organised by Minhaj University Lahore, DFM
Pakistan
12. Webinar UBD School of Business and Economics, Islamic Finance in Australia: Data Analytics DFM
Approach by Prof Dr Ishaq Bhatti, organised by University Brunei Darussalam
13. IF360 Webinar Series: Ke Arah Pembangunan Kewangan Inovasi dan Rangkuman Kewangan DFM
Islam by International Centre for Education in Islamic Finance (“INCEIF”)
14. Program Latihan Halal (Eksekutif Halal) by Majlis Profesional Halal DFM
15. IF360 Webinar Series: Peranan Kewangan Islam dalam Pembangunan Industri Halal by INCEIF DFM
Legend
• Dr. Ghazali Jaapar (“DGJ”)
• Dr. Mohammad Firdaus Mohammad Hatta (“DMF”)
• Dr. Fadillah Mansor (“DFM”)
82
Annual Report 2022
OVERVIEW STATEMENT
Succession Plan
Board and Board Committee Senior Management
The Board had, in October 2015, formalised the Board In July 2015, the Board had, upon the GNC’s
Succession Planning Framework (“Framework”) which recommendation, approved the Talent and Succession
outlines the guiding principles for effective succession Management Framework and Methodology for the
planning, as well as the detailed procedure in ensuring Group, which aims at ensuring ready successors for
smooth transition in the Board’s process and functioning leadership positions capable of driving business growth
as existing Directors leave and new ones come on board. and achieving the Group’s strategic business plan,
This Framework is reviewed on a regular basis to ensure ensuring a pool of qualified and competent staff prepared
its alignment with the latest development in the relevant and ready to fill up critical positions within the Group as
regulatory requirements, if necessary. and when required; and ensuring effective development,
engagement and retention of high potential employees.
Non-Executive Directors’ Remuneration Framework
The Company aims to set remuneration levels which are sufficient to attract and retain the Directors and Senior Management
needed to operate the Company successfully, taking into consideration all relevant factors including the functions, workload
and responsibilities involved, but without excessively overpaying to achieve its goal. Regarding the level of remuneration of the
GMD and Senior Management personnel, it is deliberated by the GNC after giving due consideration to compensation levels of
comparable positions of other similar companies in Malaysia.
The GNC carries out the annual review of the overall remuneration policy for Directors, the GMD and Senior Management
whereupon recommendations are submitted to the Board for approval. The GNC also reviews annually the performance of
the GMD, Chief Executive Officers of the subsidiaries of the Company, as well as Senior Management and make appropriate
recommendations to the Board for approval accordingly.
The remuneration of GMD and Senior Management are made up of two (2) components i.e., fixed basic salary and a variable
component comprising the annual discretionary performance bonus and share awards under the ESS. The share awards will only
be vested upon the GMD and Senior Management meeting the agreed Key Performance Indicators. Details of such share awards
are set out in Note 54 of the Financial Statements section of this Annual Report.
For the Financial Year Ended 31 December 2022, the Directors and Shariah Committee Members are paid the annual fees and
meeting allowances for each meeting of the Board, Board Committee or Shariah Committee that they have attended, as stated
below.
Financial Year Ended 31 December 2022 Fees
Chairman of the Board RM520,000.00

Director RM270,000.00
Chairman of AC (1)
RM60,000.00
Chairman of GNC/ GBRC/ GBDITC RM40,000.00
Chairman of Shariah Committee RM80,200.00
Member of AC/ GNC/ GBRC/ GBDITC RM30,000.00
RM55,000.00
Member of Shariah Committee(2)
RM49,000.00
83
OVERVIEW STATEMENT
Chairman Member
Type of Meeting Allowance Per Meeting
Board Meeting RM2,000.00 RM2,000.00

General Meeting of the Company RM2,000.00 RM2,000.00
AC/ GNC/ GBRC/ GBDITC/ ESS Committee Meeting RM2,000.00 RM2,000.00
Shariah Committee RM600.00 RM500.00
Notes:
(1) The Annual Fee for the Chairman of the AC had been increased from RM40,000 to RM60,000 effective from the Financial Year 2021 as approved by the Board of
KIBB on 26 January 2022, upon the GNC’s recommendation.
(2) The Annual Fee for the Financial Year Ended 31 December 2022 were based on the number of years served as a Shariah Committee member, as well as the scope
of roles and responsibilities being undertaken.
The payment of Directors’ fees will be made after obtaining the Shareholders’ approval at the Annual General Meeting (“AGM”).
The breakdown of the remuneration of individual Directors which includes fees, other emoluments and benefits-in-kind for the
Financial Year Ended 31 December 2022 is set out below.
Other Benefits-in
Fees(1) Salaries Emoluments Bonus Kind Total
Group Level RM RM RM RM RM RM
YAM Tan Sri Dato’ Seri Syed 520,000.00 - 24,000.00 - 31,150.00(2) 575,150.00
Anwar Jamalullail
Mr. Luigi Fortunato Ghirardello 193,013.70(3) - 38,000.00 - - 231,013.70
Encik Ismail Harith Merican 300,000.00 - 40,000.00 - - 340,000.00
Mr. Luk Wai Hong, William 486,630.14 - 122,000.00 - - 608,630.14
Encik Jeremy Nasrulhaq 390,000.00 - 70,000.00 - - 460,000.00
Puan Norazian Ahmad Tajuddin 462,410.96 - 108,000.00 - - 570,410.96
Mr. Kanagaraj Lorenz 370,000.00 - 66,000.00 - - 436,000.00
Mr. Choy Khai Choon 343,479.46 - 56,000.00 - - 399,479.46
Madam Chin Siew Siew 185,123.29 (4)
22,000.00 - - 207,123.29
TOTAL 3,250,657.55 - 546,000.00 - 31,150.00 3,827,807.55
Notes:
(1) Subject to the Shareholders’ approval at the forthcoming AGM.
(2) Benefits-in-kind for the current Chairman included leave passage, driver, car and other claimable benefits.
(3) Annual Directors’ Fee was pro-rated for the period Mr. Luigi Fortunato Ghirardello was in office until his retirement from the Board of KIBB on 26 May 2022.
(4) Annual Directors’ Fee was pro-rated for the period Madam Chin Siew Siew was in office following her appointment on 1 June 2022.
84
Annual Report 2022
OVERVIEW STATEMENT
Other Benefits-in
Fees(1) Salaries Emoluments Bonus Kind Total
Company Level RM RM RM RM RM RM
YAM Tan Sri Dato’ Seri Syed 520,000.00 - 24,000.00 - 31,150.00(2) 575,150.00
Anwar Jamalullail
Mr. Luigi Fortunato Ghirardello 143,013.70(3) - 26,000.00 - - 169,013.70
Encik Ismail Harith Merican 300,000.00 - 40,000.00 - - 340,000.00
Mr. Luk Wai Hong, William 388,301.37 - 84,000.00 - - 472,301.37
Encik Jeremy Nasrulhaq 390,000.00 - 70,000.00 - - 460,000.00
Puan Norazian Ahmad Tajuddin 370,000.00 - 68,000.00 - - 438,000.00
Mr. Kanagaraj Lorenz 370,000.00 - 66,000.00 - - 436,000.00
Mr. Choy Khai Choon 343,479.46 - 56,000.00 - - 399,479.46
Madam Chin Siew Siew 185,123.29 (4)
- 22,000.00 - - 207,123.29
TOTAL 3,009,917.82 - 456,000.00 - 31,150.00 3,497,067.82
Notes:
(1) Subject to the Shareholders’ approval at the forthcoming AGM.
(2) Benefits-in-kind for the current Chairman included leave passage, driver, car and other claimable benefits.
(3) Annual Directors’ Fee was pro-rated for the period Mr. Luigi Fortunato Ghirardello was in office until his retirement from the Board of KIBB on 26 May 2022.
(4) Annual Directors’ Fee was pro-rated for the period Madam Chin Siew Siew was in office following her appointment on 1 June 2022.
Board Performance Evaluation
In line with the requirements of the MMLR, BNM’s Policy Document on Corporate Governance and the recommendations of the
MCCG, the performance and contribution of the Board, Board Committees and individual Directors are assessed annually in
accordance with the Board Evaluation Framework approved by the Board.
This performance evaluation aims to objectively improve the effectiveness, maximise strengths and address weaknesses of the
Board, Board Committees, as well as individual Directors, if any. It enables the Board to assess how they are performing and
identify how certain elements of their performance may be improved.
Individual Director’s performance evaluation is also aimed at assessing whether each Director continues to contribute effectively
and able to demonstrate commitment to the role, including commitment of time for the Board and Board Committee meetings
and any other duties.
For the Board and Board Committees, the performance evaluation was conducted using the self-assessment method, whereas
for individual Directors, a combination of self-assessment and peer assessment method was used, based on pre-determined
criteria covering key areas in line with the Board Charter, as well as the Terms of Reference of the Board Committees.
The Board’s effectiveness was assessed in the areas of its structure, operations and interaction, roles and responsibilities,
strategy and planning, financial overview, performance management, human capital management, risk management and internal
control, shareholders communication and investor relations and understanding of the Board Committees’ roles.
The effectiveness of each of the Board Committee was also discussed in detail and areas for enhancements identified accordingly.
85
OVERVIEW STATEMENT
Based on the assessment conducted in 2022 and the feedback received from members of the Board, as well as Board Committees,
the GNC had recommended certain identified action plans towards enhancing the governance and processes of the Board and
Board Committees, which were approved by the Board for implementation, which amongst others included the action plans
stated below.
1. Enhancement of the process of setting the strategic business 6. Conduct a review of remuneration of Directors (to be
plans and annual budget by conducting a brain storming benchmarked against other Investment Banks of similar size
session led by the Chairman of the Board, between Board and business) to attract and retain suitable Directors for the
Members and Senior Management before tabling of the effective functioning of the Board.
same to the Board for approval. 7. Conduct a review on the composition of the Boards and
2. Development of a longer-term strategy for the Group in Board Committees of entities within KIBB Group taking into
respect of Sustainability/ ESG with appropriate matrices consideration the proper allocation of Board Committee
and targets. membership depending on skills set and expertise of each
3. Tracking and monitoring of strategic plan, longer-term Board Member.
digitalisation plans, including tighter review of the Group’s 8. Identify suitable training programmes for the Directors in the
Digitisation Plan for the next three (3) years, which should areas stated below.
include timelines with specific deliverables, financials • Sustainability, ESG Risks and Climate Change Risks.
separately showing the Business-as-Usual and Digital • Fintech, Technology Innovations, Artificial Intelligence,
Businesses, clear Key Performance Indicators for each including Information Sharing on Market Developments
category, and progress report on investment and/ or in Digital Products and Competitors.
business partnerships/ collaborations in relation thereof. • Risks in Islamic Finance.
4. Strengthening of the Board’s skill set by having a Board • Cyber Security.
Member with ESG/ Sustainability, Market Risk, Legal, • Refresher in-house programmes on product knowledge
Human Resource and Talent Management expertise and such as Equity Derivatives, Treasury, Digital Business,
experience, as well as candidates with Board experience and Money Market, as well as Anti-Money Laundering
from other Public Listed Companies and/ or banking or and Counter Financing of Terrorism, Section 17A of
technology entrepreneurial background with practical the Malaysian Anti-Corruption Commission Act 2009,
experience in building a Fintech startup, or experience and Consequence Management Process in respect of
as a Chief Financial Officer, when considering potential Management KRPs, the GMD and the Board.
candidates for directorship to add value to the Board and 9. Improvement in the Alignment of Reward Structure with
the Company. ESG Goals/ Targets.
5. Address Boardroom diversity and take steps to ensure that 10. Closer Engagement with Group Human Resource on Talent
women candidates are sought as part of Board recruitment Management.
process to facilitate the Company’s achievement of 30% 11. Review of the Board Performance Evaluation Parameters
women Directors on its Board as recommended by the and Matrices.
MCCG, by April 20242. 12. Establishment of a Register of Potential Directors.
Independent Professional Advice Directorships in Other Companies
The Directors (either individually or as a group) have A Director must not have competing time commitments
access to independent professional advice, at the that may impair his/ her ability to discharge his/ her
expense of the Company, as well as separate and duties effectively. Directors are required to notify the
independent access to Senior Management and the Board before accepting any new directorship in a public
Company Secretary at any point in time. company incorporated in Malaysia and all its subsidiaries
incorporated in Malaysia or otherwise, as well as new
external professional appointment. The notification
should include an indication of time that will be spent on
the new appointment.
2
At least within three (3) years from issuance of the MCCG by the SC on 21 April 2021
86
Annual Report 2022
OVERVIEW STATEMENT
PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT
Audit Committee
The AC of KIBB comprises solely of INEDs and is chaired by an INED who is not the Chairman of the Board. This is in line
with the Step-Up Practice 9.4 of the revised MCCG.
Details on the AC’s composition, as well as, its members’ attendance at the AC meetings during the Financial Year Ended
31 December 2022 are provided on page 73 of this Annual Report and Section B of the CG Report which are available on
KIBB’s website at https://www.kenanga.com.my/investor-relations/AGM2023.
The AC is established to provide independent oversight on the Group’s internal and external audit functions, internal
controls and ensuring checks and balances within the Group.
The functions and responsibilities of the AC are set out in its Terms of Reference which is available on KIBB’s website at
Internal Audit Function
The Group Internal Audit (“GIA”) is established by the The AC, pursuant to its Terms of Reference, oversees the
Board to provide independent and objective assurance effectiveness of the internal audit function of KIBB by -
to the Board that the established internal controls, risk • reviewing, approving and reporting to the Board the
management and governance processes are adequate and audit scope, procedures and frequency;
operating effectively and efficiently. To ensure independence • reviewing and reporting to the Board key audit reports
and objectivity, GIA, which is headed by the Group Chief and ensuring that Senior Management is taking
Internal Auditor (“GCIA”), reports independently to the AC necessary corrective actions in a timely manner to
and has no responsibilities or authority over any of the address control weaknesses, non-compliance with
activities reviewed by the Division. laws, regulatory requirements, policies and other issues
identified by GIA;
The internal audit function is guided by its Audit Charter • taking note of significant disagreements between the
which is approved by the AC. The Audit Charter outlines GCIA and the rest of the Senior Management team,
amongst others, GIA’s objectives, mission, scope, irrespective of whether these have been resolved, in
responsibility, accountability, authority, independence and order to identify any impact such disagreements may
objectivity, as well as standards and ethics. have on the audit process or findings;
• establishing a mechanism to assess the performance
An Annual Audit Plan based on the appropriate risk-based and effectiveness of the internal audit function;
methodology has been developed and approved by the • reviewing and reporting to the Board the adequacy of
AC. On a quarterly basis, internal audit reports and status scope, functions, competency and resources of the
of internal audit activities including the adequacy of GIA’s internal audit function and that it has the necessary
resources are presented to the AC for review. Periodic authority to carry out its work; and
follow up reviews are conducted to ensure adequate • appointing, setting compensation, evaluating the
and timely implementation of audit recommendations by performance and deciding on the transfer and dismissal
Management. of the GCIA and of any staff member of the internal audit
function at the request of the GCIA.
The GCIA is invited to attend the AC meetings to facilitate
the AC’s deliberations of audit reports.
87
OVERVIEW STATEMENT
Group Board Risk Committee
The GBRC comprises a majority of INEDs and is chaired by an INED who is not the Chairman of the Board.
Details on the GBRC’s composition, as well as, its members’ attendance at the GBRC meetings during the Financial Year
Ended 31 December 2022 are provided on page 73 of this Annual Report and in Section B of the CG Report which are
available on KIBB’s website at https://www.kenanga.com.my/investor-relations/AGM2023.
The GBRC was established to support the Board in meeting the expectations on risk management as set out in BNM’s
Policy Document on Risk Governance. It also assists the Board in the implementation of a sound remuneration system,
by examining whether incentives provided by the remuneration system take into consideration risks, capital, liquidity and
the likelihood and timing of earnings, without prejudice to the tasks of the GNC.
The functions and responsibilities of the GBRC are set out in its Terms of Reference which is available on KIBB’s website
Group Board Digital Innovation & Technology Committee
The GBDITC comprises a majority of INEDs and is chaired by an INED who is not the Chairman of the Board.
The GBDITC was established on 29 August 2019 to support the Board in providing direction and oversight over technology-
related matters as set out in BNM’s Policy Document on Risk Management in Technology.
In addition to providing oversight on technology-related matters, including risks, the GBDITC also reviews, evaluates and
makes appropriate recommendations to the Board for approval, proposals on technology/ digital innovations put forward
by Management, in line with KIBB Group’s medium and long-term business strategy which includes the digitalisation
strategy for the Group.
The functions and responsibilities of the GBDITC are set out in its Terms of Reference which is available on KIBB’s website
Risk Management and Internal Control
The Board is responsible for ensuring that KIBB has in place effective and comprehensive risk management policies,
procedures and infrastructure to identify, measure, monitor and control the various types of risks undertaken by KIBB Group.
In discharging this responsibility, the Board approves and periodically reviews the risk management capabilities of KIBB
Group to ensure their ability to support KIBB Group’s business activities and any expansion thereof.
It is important to emphasise that the ultimate responsibility for ensuring a sound internal control system and reviewing the
effectiveness of the system lies with the Board. The Group’s inherent system of internal control is designed to manage, rather
than eliminate, the risk of failure to achieve the Group’s corporate objectives, as well as, to safeguard the Shareholders’
investments and the Group’s assets.
The details of KIBB Group’s internal control system and risk management framework are set out in the Statement on Risk
Management and Internal Control appearing on pages 110 to 114 of this Annual Report.
88
Annual Report 2022
OVERVIEW STATEMENT
PRINCIPLE C: INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS
Audit Committee to Ensure Compliance with Investor Relations and Shareholder Communications
Financial Reporting Standards
The Board is committed to providing the Shareholders, investors and other
At the Board meetings, the Board reviews the stakeholders with comprehensive, timely and equal access to information
Management’s reports on the business performance on the Group’s activities to enable them to make informed investment
of KIBB, as well as its major subsidiaries, associate decisions.
and joint-venture companies and the analysis of
the Group’s performance in comparison to the To ensure continuous communication between KIBB Group and its
positions in the preceding month and quarter, as stakeholders, as well as to facilitate mutual understanding, the Group
well as year-to-date. employs a wide range of communication channels via its Kenanga Digital
Channels such as Facebook, Instagram, LinkedIn, TikTok, YouTube,
The Board deliberates, and in the process, assesses as well as via direct communication and publication of all relevant Group
the viability of business propositions and corporate information on its website at https://www.kenanga.com.my. The Group
proposals, and the principal risks that may have utilises its corporate website and social media channels as a means of
significant impact on KIBB’s business or on its providing information to its Shareholders and the broader investment
financial position, as well as the related mitigating community. In 2022, the Company released its first-ever Sustainability
factors. Report which is intended to enhance the Group’s ESG disclosures to
stakeholders.
The Board aims to provide a clear, balanced and
comprehensive assessment of the Group’s financial KIBB Group’s corporate website provides comprehensive and easy access
performance and prospects through the Audited to the latest information about the Group. The Group’s information made
Financial Statements and quarterly financial reports, available on the corporate website includes information relating to inter alia,
as well as, through material disclosures made in KIBB and its subsidiaries’ corporate profiles, Board, Senior Management,
accordance with the MMLR of Bursa Securities. corporate governance related matters such as the Board Charter, as well
as the Terms of Reference of the various Board Committees, financial
The AC assists the Board in overseeing the integrity reports, annual reports and corporate news via public announcement,
of the Group’s financial reporting and part of this media releases and articles.
role involves the operation of the financial reporting
processes. The processes are aimed at providing the KIBB endeavours to improve communications with its stakeholders by
assurance that the financial statements and related ensuring information about the Company, products and services are up-
notes are completed in accordance with applicable to-date and easily accessible with the use of technology via its own Digital
legal requirements and accounting standards and Channels and other forms of external media be it digital or traditional such
give a true and fair view of the Group’s financial as broadcast or print.
positions. In fulfilling this responsibility, the AC
also reviews the accuracy and adequacy of the The Company believes it is important to communicate information to
Chairman’s Statement and corporate governance stakeholders on a regular basis. In support of this, the Company conducts
disclosures in the Annual Report, the interim quarterly results briefings with its institutional shareholders. During these
financial reports and preliminary announcements in sessions, the Company provides snapshots of its results and business,
relation to the preparation of financial statements. as well as holding Questions and Answers (“Q&A”) sessions to answer
inquiries from participants. Quarterly financial information is also
During the year under review, two (2) sessions communicated via press release and quarterly results briefing decks, as
between the AC and the External Auditors were well as the Company’s social media channels and corporate website.
held in the absence of the Management, as part
of the medium for greater exchange of views and For better coordination and control of efficiency, all investor relations
opinions between both parties in relation to financial events are organised and managed by Group Marketing, Communications
reporting. and Sustainability of KIBB.
89
OVERVIEW STATEMENT
In order to enhance stakeholders’ experience whilst surfing the Proxy Form via electronic means was a step up to enable
the corporate website, the Company is continuously looking more Shareholders to exercise their voting rights by appointing
into ways to enhance its corporate website to ensure that a Proxy to attend and vote in their stead.
the navigation is indeed user-friendly and information shared
are easily accessible to all stakeholders. For this purpose, To assist Shareholders in manoeuvring the RPEV Facilities, an
the Company had taken the effort in 2021 to enhance the Administrative Guide with detailed steps was provided to the
searchability of its websites via Search Engine Optimisation Shareholders to guide them through the process. In addition,
(SEO) and Search Engine Marketing (SEM). Boardroom also provided a Helpdesk service to assist
Shareholders who were less-IT savvy.
Information relating to the procedures of whistleblowing is also
available on the corporate website. During the AGM, all the members of the Board together with
the External Auditors, Company Secretary, the GMD and a few
General Meetings of the key Senior Management personnel were present virtually
using the virtual platform to attend to any questions posed by
In line with its digital transformation efforts, the Company the Shareholders.
has focused on the dissemination of its Annual Report via its
website at https://www.kenanga.com.my/investor-relations/ To foster better engagement with the Shareholders during the
AGM2023 in order to reach a wider spectrum of Shareholders Forty-Eighth (48th) AGM, the Company had also arranged for one
who are active internet users. of its Senior Management personnel to brief the Shareholders
on live telecast on the Company’s financial performance and
Shareholders are encouraged to attend the AGM and to use operations in respect of the Financial Year Ended 31 December
these opportunities to raise questions and vote on important 2021 and Business Prospects for 2022 to keep them abreast of
matters affecting the Group, including the re-election of the Company’s achievements and plans moving forward.
Directors, the receipt of the Audited Financial Statements,
Directors’ Remuneration, Renewal of Share-Buy Back Following the presentation, the GMD presided over the Q&A
Authority, as well as, corporate proposal, if any. session by reading out the questions raised by the Shareholders
and the Minority Shareholder Watch Group prior to the AGM
As Malaysia transitions to endemic phase of COVID-19, and answering them accordingly. The GMD also answered all
the Company had conducted its Forty-Eighth (48th) AGM the questions submitted on real time basis during the AGM.
virtually on 26 May 2022 in accordance to the revised Guidance
Note and Frequently Asked Questions on the Conduct of Pursuant to Paragraph 9.21(2)(b) of the MMLR of Bursa
General Meetings for Listed Issuers issued by the SC on Securities, KIBB had published its AGM minutes and Q&As
18 April 2020. The AGM was held virtually via live streaming (Key Matters Discussed) on the Company’s website after the
and online remote voting using the Remote Participation and AGM.
Electronic Voting Facilities (“RPEV Facilities”) operated by
KIBB’s Share Registrar, Boardroom Share Registrars Sdn Bhd The aforementioned virtual platform has enabled the Company
(“Boardroom”). to reach out to a wider spectrum of Shareholders by giving
them the opportunity to exercise their rights as shareholders
Shareholders who logged in to participate in the AGM at the by participating at the AGM via real-time interaction with the
Virtual AGM Portal at https://meeting.boardroomlimited.my Board and Senior Management, and voting from wherever
were able to cast their votes online via the same portal using location they might be, even from the comfort of their homes.
the same login credentials and pose their questions to the
Board on a real time basis. Apart from the engagement with stakeholders through the
Annual Reports and general meetings, the Company also
In addition to offering the Shareholders with the opportunities makes announcements relating to its quarterly results and
to participate in the AGM, pose questions and vote remotely other relevant announcements to Bursa Securities via Bursa
via the RPEV Facilities, the Company had also offered e-Proxy LINK to provide stakeholders with material key information
lodgement via Boardroom Smart Investor Portal, a service also which could affect their decision making, thus enhancing the
rendered by Boardroom. This alternative mode of submitting level of transparency.
90
Annual Report 2022
OVERVIEW STATEMENT
To strengthen its line of communication with the Sustainability Plan

Shareholders, as mentioned earlier, the Board had in July
2021 designated Encik Jeremy Nasrulhaq as the Senior In embarking on its sustainability journey, on 13 September 2021,
INED, to take heed of their concerns on matters related a Sustainability Plan was presented to the GSMC to outline the
to corporate governance and the Group’s performance, Group’s key sustainability priorities, which was later tabled at the
amongst others. GNC and approved by the Board of KIBB on 28 October 2021.
Sustainability Management Kenanga’s ESG Framework
Sustainability is increasingly becoming a necessity for In addition to the above, GSMC had also recommended to the GNC
corporations around the world to adopt and implement for the Board’s approval, Kenanga’s ESG Framework which provided
within their business operations to be sustainable. guidance on sustainability plans, setting priorities and targets,
as well as managing sustainability performances throughout the
In cognisance of the importance of sustainability, Group. The Framework covers four (4) sustainability pillars below
the Board of KIBB had on 29 July 2021 established a with identified six (6) key focus areas.
Management level Group Sustainability Management
Committee (“GSMC” or “the Committee”) to drive the Sustainability Pillar Key Focus Areas
sustainability agenda for Kenanga Group.
Sustainable Economic • Responsible Investment
Growth • Digitalisation
Prior to the establishment of the GSMC, all sustainability
related initiatives were under the purview of Group Environmental Stewardship • Climate Impact
Marketing, Communications & Sustainability of KIBB. Empowering People and • Diversity, Inclusion and Well-Being
Communities • Community Investment
The objective of the GSMC is to support the Board in Good Corporate • Good Business Conduct
the governance of sustainability in KIBB Group including Governance
setting sustainability strategies, priorities and targets,
to ensure that KIBB Group addresses sustainability Kenanga Group Sustainability Goals and Targets
risks and opportunities in an integrated and strategic
manner to support its long-term strategies and success, In April 2022, guided by the Group’s ESG Framework and Sustainability
by integrating sustainability considerations in the Plan, a ‘Group Sustainability Goals and Targets’ was presented to
day-to-day operations of the Group and ensuring the the GSMC by Group Marketing, Communications & Sustainability
effective implementation of the Group’s sustainability of KIBB, outlining the sustainability goals and targets for the
strategies and plans. Group, which was approved by the Board of KIBB on 6 April 2022,
upon recommendation of the GNC.
In addition to the above, resources have been assigned
to advance the Group’s ESG agenda through the Kenanga’s Sustainability Roadmap 2023-2025
establishment of a Sustainability Department with
dedicated headcount. Subsequently, upon the recommendation of the GSMC and the GNC,
the Board of KIBB, had on 7 December 2022, approved the Group
A Group Chief Sustainability Officer was also appointed Sustainability Roadmap 2023-2025, outlining the sustainability goals
in 2022 to: and targets for the Group for the next three (3) years.
• Envision, drive and enhance sustainability value for all
stakeholders; Integration of ESG Targets and Metrics into the Employees’
• Govern and deliver sustainability teams performance; Balanced Scorecards
• Inspire and drive the organisation sustainability culture;
• Secure and optimise resources for the organisation; Following the approval of the Group’s Sustainability Roadmap
and 2023-2025, relevant ESG Key Performance Indicators (“KPIs”) were
• Establish networking and partnerships at organisation developed and incorporated into the Balanced Scorecards of relevant
level. employees to track and monitor ESG performances.
91
OVERVIEW STATEMENT
Kenanga Group’s Climate Change Risk Management ADDITIONAL INFORMATION

Framework
Audit and Non-Audit Fees
On 9 December 2021, the Board had approved Kenanga
Group’s Climate Change Risk Management Framework The details of the audit and non-audit fees payable to the
(“CCRM Framework”) to facilitate the incorporation of climate External Auditors, EY and its affiliates, for the Financial Year
change-related risk considerations into the governance process, Ended 31 December 2022 are provided below.
business strategy and operations, reporting and disclosure,
as well as risk management system of Kenanga Group. Group (RM) KIBB (RM)
Statutory Audit 572,800 365,000

The climate change risk to be managed by the Group shall be
governed by the existing risk governance structure that involves Audit/ Assurance Related 55,140 55,140
the Board, Board Committees, Management Committees, Non-Audit Fees –
Business Units and Group Risk Management. EY Assurance Team 67,000 25,000
Grand Total 694,940 445,140
The CCRM Framework supports these efforts by facilitating
robust and consistent assessments of economic activities and Related Party Transactions (“RPTs”) and Recurrent
the impact on climate and the environment. The Framework Related Party Transactions (“RRPTs”)
also covers the sustainability strategy, principles, initiatives and
performance of Kenanga Group and focuses on the issues that RPTs and/ or RRPTs entered into by the Company and/ or
KIBB Group are reviewed by the AC during its quarterly
the Group have determined to be of greatest importance with
meetings to ensure compliance with the MMLR.
regard to climate change.
Material Contracts Involving Interests of Directors, GMD

In driving the above goals and targets, the Group developed an
or Major Shareholders
implementation plan in line with the Climate Risk Management
and Scenario Analysis by BNM, the SC’s Task Force of Climate-
There were no material contracts entered into by the
Related Financial Disclosures (“TCFD”) Application Guide, and
Company or its subsidiary companies involving the interests
Bursa Securities’ Enhanced Sustainability Reporting Guide.
of the Directors, the GMD or Major Shareholders which still
subsisted at the end of the Financial Year Ended 31 December
DIRECTORS’ RESPONSIBILITY STATEMENT IN RESPECT
2022.
OF THE PREPARATION OF THE AUDITED FINANCIAL
STATEMENTS (Pursuant to Paragraph 15.26(a) of the MMLR)
Utilisation of Proceeds Raised from Corporate Proposals
The Board is fully accountable for ensuring that the Audited

There was no new fund-raising corporate exercise during the
Financial Statements are prepared in accordance with the
Companies Act 2016 and the applicable approved accounting
standards set out by the Malaysian Accounting Standards Board The proceeds from the previous issuance of Subordinated
so as to present a true and fair view of the state of affairs of the Notes under the RM250 million in nominal value Tier 2
Group and of the profit and loss and cash flow as at the end of Subordinated Note Programme which was established on
the accounting period. 27 March 2017 are being utilised by the Company for working
capital requirement.
In preparing the Audited Financial Statements, the Directors are
satisfied that the applicable approved accounting standards Details on the outstanding subordinated notes under the
in Malaysia have been complied with reasonable and prudent programme are set out under Note 25 of the Financial
judgment and estimates have been made. The Audited Financial Statements section appearing on page 239 of this Annual
Statements are also prepared on a going concern basis, as the Report.
Board has a reasonable expectation, after having made enquiries
that the Group has adequate resources, to continue its operational
existence in the foreseeable future.
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Annual Report 2022
OVERVIEW STATEMENT
Employees’ Share Scheme
After obtaining the Shareholders’ approval at an EGM held on 25 May 2017, KIBB had, on 21 September 2017, established and
implemented the Scheme of up to 10% of its total issued share capital (excluding treasury shares) at any one time during the
duration of the Scheme for the Eligible Employees4 which would be valid for a period of five (5) years from its commencement
date. Following the Board of KIBB’s approval on 10 June 2020, the duration of the ESS has been extended for another five (5)
years from 21 September 2022 to 20 September 2027 in accordance with the provisions of the By-Laws of the ESS.
The ESS comprises the Employees’ Share Option Scheme (“ESOS”) and Employees’ Share Grant Plan (“ESGP”). It is governed
by the ESS By-Laws approved by the Shareholders at the aforesaid EGM and administered by the ESS Committee, comprising
three (3) INEDs.
Since the commencement of the ESS on 21 September 2017, six (6) offers had been made under the ESOS on 2 January 2018,
31 May 2018, 2 May 2019, 17 June 2019, 1 July 2020 and 2 August 2021 respectively. As for the ESGP, the Board of KIBB had on
4 March 2021, approved the granting of the Performance Share Plan (“PSP”) Award to Eligible Employees of the Company and
its non-dormant subsidiaries on 3 May 2021 where the PSP shares were vested on 2 June 2021 (“Vesting Date”).
In determining the total number of shares to be awarded to each Eligible Employee, the ESS Committee and the GNC had taken
into consideration amongst others, the Eligible Employees’ performance, seniority (denoted by corporate rank) and contribution
to the growth and performance of KIBB Group. As part of the conditions attached to the PSP Award, the PSP Grantee is restricted
from selling/ transferring the shares issued to him/ her for a period of one (1) year from the Vesting Date.
The details of the ESS are set out under Note 54 of the Financial Statements section appearing on pages 344 to 352 of this Annual
Report.
Brief details on the number of options granted, exercised, forfeited and outstanding since the commencement of the ESS on
21 September 2017 and during the Financial Year (“FY”) 2018, FY 2019, FY 2020, FY 2021 and FY 2022 are set out below.
For the Period from 21 September 2017 to 31 December 2018
Senior Other Entitled

ESOS(1) Total GMD(2) Management Employees
Granted 59,423,000 10,000,000(3) 16,580,000(3) 32,843,000(3)

Exercised 194,400 0 0 194,400
Forfeited(4) 1,479,000 0 0 1,479,000
Outstanding 57,749,600 10,000,000 16,580,000 31,169,600
4
The Employee(s) and Executive Directors of the KIBB Group who meet(s) the criteria of eligibility for participation in the Scheme as set out in By-Law 5
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OVERVIEW STATEMENT
FY 2019

Granted 6,431,000 0 750,000(5) 5,681,000(5)

Exercised 0 0 0 0
Forfeited(4) 1,528,000 0 0 1,528,000
Cancelled(6) 265,500 0 195,000 70,500
Outstanding 62,387,100 10,000,000 17,135,000 35,252,100
FY 2020

ESOS (1)
Total GMD (2)
Management Employees
Granted 3,311,000 0 0 3,311,000(5)

Exercised 9,247,100 0 1,161,000 8,086,100
Forfeited 1,731,000 0 450,000(7) 1,281,000(4)
Cancelled(6) 952,500 0 195,000 757,500
Outstanding 53,767,500 10,000,000 15,329,000 28,438,500
FY 2021

Granted 4,578,000 0 0 4,578,000(5)

Adjustment(8) 0 0 80,000 -80,000
Exercised 25,675,000 3,000,000 9,419,000 13,256,000
Forfeited (4)
2,158,000 0 300,000 1,858,000
Cancelled (6)
227,500 0 0 227,500
Reinstatement(9) 450,000 0 450,000 0
Lapsed (10)
86,000 0 0 86,000
Outstanding 30,649,000 7,000,000 6,140,000 17,509,000
ESGP(1) Total GMD(2) Management Employees
Granted 3,610,000 320,000 2,030,000 1,260,000
Vested (11)
3,610,000 320,000 2,030,000 1,260,000
Outstanding 0 0 0 0
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Annual Report 2022
OVERVIEW STATEMENT
FY 2022

ESOS (1)
Total GMD (2)
Management Employees
Granted 0 0 0 0
Adjustment(12) 0 0 840,000 -840,000
Exercised 12,673,500 0 5,758,000 6,915,500
Forfeited 956,500 0 0 956,500
Cancelled (6)
269,500 0 0 269,500
Lapsed(10) 39,500 0 0 39,500
Outstanding 16,710,000 7,000,000 1,222,000 8,488,000
ESGP(1) Total GMD(2) Management Employees
Granted 0 0 0 0
Adjustment 0 0 50,000 -50,000
Vested(11) 0 0 0 0
Outstanding 0 0 0 0
Notes:
(1) The ESOS and ESGP are offered to Eligible Employees.
(2) The GMD is not a Director of KIBB. None of the Directors of KIBB is entitled to participate in the ESOS and the ESGP.
(3) The offer to the GMD was granted on 31 May 2018 while the offer to Senior Management and Other Entitled Employees was granted on 2 January 2018
respectively.
(4) ESOS forfeiture due to staff resignation.
(5) The offer to Other Entitled Employees and Senior Management was granted on 2 May 2019, 17 June 2019, 1 July 2020 and 2 August 2021 respectively.
(6) ESOS cancellation due to vesting conditions not fully met.
(7) ESOS forfeiture in compliance with Section 92 of the Financial Services Act 2013.
(8) Adjustment made due to an employee’s appointment as the Chief Executive Officer of I-VCAP Management Sdn Bhd. Hence, the re-categorisation of the ESOS.
(9) Reinstatement of the earlier cancelled ESOS in Note 7.
(10) ESOS lapsed due to unexercised options within the three (3) years of the Exercisable Period.
(11) PSP Grant vested and credited to employees’ CDS account.
(12) Adjustment made due to an employee’s appointment as a Group EXCO Member of KIBB. Hence, the re-categorisation of the ESOS.
95
OVERVIEW STATEMENT
Maximum Allowable Allocation of the Scheme
The aggregate maximum number of KIBB shares that may be offered to an Eligible Person under the Scheme shall be determined
at the sole and absolute discretion of the ESS Committee after taking into consideration, amongst others, the provisions of the
By-Laws of the ESS, MMLR of Bursa Securities or other applicable regulatory requirements prevailing during the option period
relating to employees’ and/ or directors’ share issuance schemes, as well as, the performance, targets, position, annual appraised
performance, seniority and length of service of the Eligible Person or such other matters which the ESS Committee may in its sole
and absolute discretion deem fit and subject to the following:
a. aggregate maximum number of KIBB shares which may be made available under the Scheme shall not in aggregate exceed
10% of the issued share capital of the Company (excluding treasury shares) (“ESS Shares”) at any point in time during the
duration of the Scheme (“Maximum ESS Shares”); and
b. not more than 10% of the aggregate number of KIBB shares to be issued under the Scheme shall be allocated to any
individual Eligible Person who, either singly or collectively through persons connected with the Eligible Person, holds 20%
or more of the issued share capital of KIBB (excluding treasury shares, if any).
The ESS granted to the GMD and Senior Management during FY 2022 and since the commencement of the ESS up to
31 December 2022 is tabulated below.
1 January 2022 to Since Commencement Up

Description 31 December 2022 to 31 December 2022
Percentage of the Aggregate Maximum Allocation over the

Maximum ESS Shares 0% 0.70%
Actual Percentage of the ESOS Granted over the Maximum ESS
Shares 0% 37.38%
Actual Percentage of the ESGP Vested over the Maximum ESS
Shares 0% 3.32%
In respect of FY 2022, there was no allocation of the shares under the ESS made to the Eligible Employees and hence, no review
was conducted.
This Corporate Governance Overview Statement is made in accordance with a resolution of the Board of Directors dated 5 April
2023.
TAN SRI DATO’ SERI SYED ANWAR JAMALULLAIL

Chairman of the Board
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Annual Report 2022
ETHICS AND COMPLIANCE STATEMENT
OVERVIEW
Kenanga Investment Bank Berhad and its subsidiary companies (“Kenanga”) is committed to ensure
our business and operations are conducted professionally in compliance with the applicable laws and
regulations while adopting the highest standards of ethical principles and integrity. We continuously
emphasise on the importance of a strong governance framework and robust operational controls in
our pursuit of business opportunities with the goal of maintaining sustainable presence.
In Kenanga, we balance business performance with our motivation to preserve ethics and compliance,
and this is reflected through the actions of our Board of Directors (“Board”), Senior Management
and all other employees. We work in an environment where all are fully cognisance of the corporate
culture of Kenanga and acknowledge their individual and collective accountability to meet compliance
obligations that are consistent with our business risk tolerance.
OUR ETHICS AND COMPLIANCE MANAGEMENT STRUCTURE
Kenanga has established a strong ethics and compliance management structure to support the establishment of our governance
framework. The structure sits within the Group Regulatory and Corporate Services (“GRCS”) Division providing oversight on
ethics and compliance programs so that Kenanga meets the regulatory objectives and upholds the integrity in all business
dealings. This would ultimately ensure the required good corporate governance for sustainability of Kenanga.
The following six (6) departments within GRCS work together to carry out the overall responsibilities under the ethics and
compliance structure:
Manages the overall regulatory compliance issues in relation to the regulated activities
Group Compliance
as per the Licensing Handbook of the Securities Commission Malaysia
Facilitates compliance with the applicable laws and regulatory requirements in relation
Group Financial Crime
to Anti-Money Laundering, Counter Financing of Terrorism and Targeted Financial
Compliance
Sanctions
Manages consultations with the regulators and provides sound advice to ensure
Group Prudential Supervision
compliance with regulatory requirements and expectations as well as standard
and Regulatory Affairs
practices across Kenanga
Group Business Ethics Develops and implements the applicable framework, policies and procedures towards
and Integrity promoting ethics and integrity in the business and operations of Kenanga
Manages legal documentation and provides legal consultation towards mitigating legal
Group Legal
risks
Ensures integrity of the governance framework and compliance of the Board with
Group Company
statutory and regulatory requirements as well as facilitates communication and
Secretarial
implementation of Board’s decision.
97
OUR APPROACH OF PRESERVING GOOD GOVERNANCE
As a measure to achieve the highest standards of corporate governance in the highly regulated environment of the capital
markets, the ‘Ethics Risk Management Framework’ (“EMF”) and ‘Compliance Management Framework’ (“CMF”) have been
established within GRCS providing the structure and guidance for systematic and consistent oversight and monitoring functions
for compliance and ethics. The same frameworks work to address and manage sustainability matters of Kenanga.
The EMF and CMF are risk-based, centre-led approaches that incorporate two (2) core principles of risk mitigation and risk
monitoring which complement each other:
Ethics and Compliance Risk Mitigation Ethics and Compliance Risk Monitoring
Identify the risks associated with business of Kenanga Monitor and test if risk mitigation is working properly
via various measures:
Measure the risks in order to assign their severity level
• Identify critical and high-risk areas
Assess for appropriate controls to address any • Identify key compliance risk mitigation activities
deficiencies • Identify routine business transaction associated to
compliance obligations
Implement the controls involving the relevant parties in • Review and test compliance with legal and regulatory
Kenanga requirements
• Review and test implementation of policies and
Educate and train on the controls highlighting procedures
consequences of failing to comply
In essence, the EMF and CMF are vital approaches which serve as foundations in the implementation and continuous review and
update of the appropriate ethics and compliance programs in Kenanga. The approaches synchronise the handling of ethics and
compliance issues in order to preserve the good corporate culture of Kenanga.
OUR REGULATORY AWARENESS AND COMPLIANCE TOOLS
GRCS plays a key role in the facilitation of regulatory issuances across Kenanga as an effort to ensure awareness of the
employees of revised and new requirements issued by the regulators. In 2022, there were a total of three hundred eighty-seven
(387) revised and new frameworks, guidelines and circulars, and nineteen (19) consultation papers which were facilitated by
GRCS effectively.
Number of Regulatory Issuances revised and new frameworks,

guidelines and circulars
140 135 consultation papers
120
100
80 71
66
60
40
40 31
21 20
20 15 14 14
7 3 7
0 0 0 0 1 1
BNM SC B.SEC B.SEC.CLR B.DER B.DER.CLR B.DEPO FIMM ORS
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Annual Report 2022
Further to the dissemination of the frameworks, guidelines and circulars, GRCS follows up on actions required of the affected
divisions or departments up to completion and ensures compliance with the revised or new requirements via our Regulatory
Issuances Impact Review (“EDGE”) review exercise. In this regard, the EDGE serves as a tool to assist compliance of the
divisions or departments with the requirements particularly where actions are required to be taken with regard to internal policies,
procedures or controls.
ENHANCED INITIATIVES ON ETHICS AND COMPLIANCE
With the continued support of our Board and Senior Management, Kenanga had successfully undertook numerous initiatives
in 2022 to further strengthen our internal controls. All new and ongoing initiatives were carefully considered, reviewed and
reasonably challenged to guarantee positive acceptance and implementation.
• Independent Review of Kenanga’s Anti-Bribery and Corruption (“ABC”) Compliance Program
Kenanga had appointed Baker Tilly MH Consulting Sdn Bhd (“BTMHC”) as an independent third party to undertake an
assessment on the effectiveness of ABC framework and compliance of Kenanga with the Guidelines on Adequate Procedures
under Section 17A(5) of Malaysian Anti-Corruption Commission Act 2009 (“MACCA”) as well as Securities Commission
Malaysia’s letter dated 16 March 2021 on Observations and Good Practices Relating to Compliance with Corporate Liability
Provision (“SC’s Observations”).
The independent review was conducted based on forty-one (41) observations criteria established pursuant to T.R.U.S.T
principles of the Guidelines on Adequate Procedures and the outcome indicated that Kenanga has complied with forty (40)
observations criteria (i.e. 97.6%).
Systematic Review,
Top Level Risk Undertake Training and
Monitoring &
Commitment Assessment Control Measures Compliance
Enforcement
5/5 7/8 9/9 5/5 11/11

Overall Scoring: 40/41
Compliance Percentage: 97.56%
Generally, BTMHC’s observations and recommendations in relation to steps taken by Kenanga to address compliance with
Section 17A of the MACCA as well as SC’s Observations concluded that ABC Compliance Program of Kenanga is reasonable
and effective, in all material respects, in accordance with the Guidelines on Adequate Procedures. The only outstanding
observation where Kenanga is rated as ‘Partially Compliant’ is in relation to group-wide corruption risk assessment which is
ongoing.
Notwithstanding the achievement by Kenanga as independently assessed by BTMHC, we recognise that best practices
should always grow and evolve in tandem with and to meet the ever-changing business landscape. As such, Kenanga is
committed to adapting to the business and regulation changes over time, and to remain compliant with the laws that govern
our business while constantly developing and improving in accordance with the best standards of the industry.
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• Fraud and Corruption Risk Assessments
The extensive Fraud and Corruption Risk Assessment (“FCRA”) exercise continued spanning across the different departments,
divisions and subsidiaries of Kenanga. The FCRA is a group-wide risk assessment conducted to assess the inherent fraud and
corruption risks exposures and the associated processes and controls by which these exposures are mitigated.
In carrying out the assessment by taking into consideration the propensity of fraud and corruption occurring, Kenanga
assessed fraud and corruption risks against a set of ‘risk appetite’ metrics approved by the Board. The ‘Guidance on Conduct
of Fraud and Corruption Risk Assessment’ is the guiding principle in conducting the FCRA which involves four (4) main core
activities:
Develop response commensurate with the level of residual risk

Risk Monitoring
to address any identified gaps and to help mitigate the risk
Controls Evaluation
Identify controls already in place to determine if there are any
residual risks remaining
Risk Measurement
Assess likelihood of fraud and corruption scheme occurring and

potential impact of the scheme to identify inherent risk
Risk Identification
Identify fraud and corruption risks the division/ department/

subsidiaries could possibly be exposed
Due to the extensiveness of the FCRA exercise which covers Kenanga group-wide, research and study have been carried
out by GRCS to identify critical or higher risk departments, divisions and subsidiaries for exposure of fraud and corruption.
This considers various benchmarked reports and surveys issued on the subject matters. Pursuant to the research and study,
the FCRA will be conducted by prioritising the departments, divisions and subsidiaries identified with higher risk indicators
towards completion of the whole exercise for Kenanga.
• Survey on Effective Management of Ethics and Integrity in Kenanga
Kenanga values views and opinions of our employees. The employees are always encouraged to express views and concerns
as this would assist Kenanga to identify if there is any issue in order to implement the necessary preventive or corrective
measures. On this basis, the Survey on Ethics and Integrity Culture at Workplace (“Ethics Survey”) was introduced.
The employees were encouraged to respond to the Ethics Survey which was conducted for the third time to gauge their views
and perceptions on policies and practices related to ethics and integrity in Kenanga. Similar to the previous two (2) Surveys,
the Ethics Survey 2022 was also conducted by segregating the employees into three (3) different groups based on their
seniority level and each group was requested to respond to a different set of questionnaires covering three (3) core values.
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Annual Report 2022
CORE VALUES Top-Level Professional Personal

Commitment Accountability Integrity
Ethics and integrity
practices embedded in Establish Metrics & Benchmarks
Kenanga as part of a good
corporate culture • Gauge the views and perceptions of the employees on policies and practices related
to certain aspects of ethics and integrity in Kenanga
• Build strong corporate culture in ensuring that Kenanga operates in a transparent,
ethical and sound manner
However, as the responses to the previous two (2) Surveys indicated an overall commendable result, all questions for the Ethics
Survey 2022 have been revamped to obtain views and feedbacks involving more intrinsic aspects of ethics and integrity being
practiced in Kenanga. The respondents were requested to assign rating (i.e. ‘Agree’, ‘Neutral’ or ‘Disagree’) to the statements
depicting ethical practices of Kenanga as well as of the employees either professionally or in their personal capacity where it can
affect their job functions.
A total of 85.54% employees responded to the Survey 2022:
SVP and Above VP-AVP SA-A
78.98% 91.90% 80.13%

124/157 522/568 383/478
TOTAL: 85.54%
(1029/1203)
Note:
SVP– Senior Vice President; VP – Vice President; AVP – Assistant Vice President; SA – Senior Associate; A – Associate
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The overall responses to the Ethics Survey 2022 were positive where respondents from all the three (3) different groups generally
‘Agree’ that ethics and integrity are highly prioritised in business and operations of Kenanga; i.e. more than 97% of employees
from the respective groups of employees responded ‘Agree’ to all the questions.
Employees' Response
Core Values Employee Group Agree Neutral Disagree
TOP LEVEL COMMITMENT:

The scope of the questionnaire is to ascertain SVP and Above 98.59% 1.41% 0.00%
respondents’ opinions on whether Board and Senior
Management took visible strategic initiatives to set
VP and AVP 97.51% 1.77% 0.72%
and communicate policies and objectives related to
ethics and integrity, as well as to raise awareness,
motivation and engagement. SA and Associate 98.24% 1.50% 0.26%
PROFESSIONAL ACCOUNTABILITY:
The scope of the questionnaire aims to understand SVP and Above 100.00% 0.00% 0.00%
whether the respondents acknowledge their
responsibility to subscribe to ethics and integrity
VP and AVP 99.43% 0.45% 0.13%
principles while undertaking assignments and
commitments at work.
SA and Associate 99.39% 0.44% 0.17%
PERSONAL INTEGRITY:
The scope of the questionnaire is to understand SVP and Above 100.00% 0.00% 0.00%
whether the respondents encompass good moral
and ethical principles and values one holds
VP and AVP 99.49% 0.32% 0.19%
themselves to gain trust, show self-respect, and
display professionalism at work
SA and Associate 99.65% 0.17% 0.17%
In this regard, Kenanga acknowledges the feedbacks provided by the employees and will continuously engage to communicate
our policies, principles and expectations of Kenanga to ensure preferable outcomes. The outcome from the Ethics Survey 2022
will form part of the factors in determining the necessary measures and actions for maintenance or enhancements of the ethical
and compliance culture in Kenanga, where relevant.
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Annual Report 2022
UPHOLD HIGH STANDARDS OF CORPORATE GOVERNANCE
The Board maintains oversight of the ethics and compliance risks exposure to ensure effective implementation of the management
strategies, frameworks and policies. In this regard, GRCS works closely with all stakeholders with the aim of aligning business
direction with the established strategies, frameworks and policies that instil a culture where professionalism, ethics and compliance
are key priorities.
• Anti-Fraud, Bribery and Corruption
Kenanga is subject to the provisions of the MACCA as well These are demonstrated through, amongst others:
as applicable local laws, rules, and regulations on anti-fraud,
bribery and corruption issued by the relevant regulatory • The top-level commitment, i.e. tone from the top
authorities. In this regard, Kenanga takes a zero-tolerance for good AML/CFT/TFS compliance culture and
approach against all forms of fraud, bribery and corruption corporate governance;
and requires the same approach from our Board, Senior • Enterprise-wide Business-based Risk Assessment
Management as well as our employees. Similarly, Kenanga to identify, assess, manage and mitigate the ML/TF/
expects the same commitment from all third parties that we PF risks in relation to the operations and business;
deal with on any matter and in any manner. • Robust AML/CFT/TFS compliance framework
comprising policy and procedures that define
The Group Anti-Fraud, Bribery and Corruption Policy (“AFBC the standards, governing policies, principles and
Policy”) sets out the guiding principles for Kenanga to address controls in managing the risks of ML/TF/PF on a
and manage fraud, bribery and corruption risks in all our risk-based approach; and
dealings. The AFBC Policy specifies the principles in relation • Internal controls to detect, deter and prevent
to top-level commitment, group-wide risk assessment and Kenanga from being a conduit for ML/TF/PF
control measures as well as monitoring and training programs
of Kenanga. In addition, digital acceleration continues to be the key
effort of Kenanga to upgrade the automation of systems
In line with the AFBC Policy, the Group Anti-Fraud, Bribery to ensure compliance with regulatory requirements and
and Corruption Reporting Procedure (“AFBC Reporting expectation, mitigate compliance and reputational risk,
Procedure”) was updated in 2022. The AFBC Reporting and stay competitive in business.
Procedure further detail the requirements and procedures for
the Board and employees in relation to reporting of instances • Code of Conduct for Employees
of fraud, bribery and corruption and the actions required to be
taken in this regard. Good conduct is critical to delivering positive outcomes
for our clients, stakeholders and capital markets at
• Anti-Money Laundering, Countering Financing of Terrorism large. We empower our employees to do what is right by
and Targeted Financial Sanctions (“AML/CFT/TFS”) setting clear expectations through the Group Code of
Ethics and Conduct for Employees (“Employees Ethics
The rapid-evolving financial crime arising from ransomware, Code”), as well as by providing the support, tools
cryptocurrencies and the remaining impact of COVID-19 and resources that employees need to act ethically,
pandemic on money laundering have continued to be the trend along with clear information about the various resources
of 2022. With the global effort led by Financial Action Task available to escalate concerns.
Force to combat money laundering, terrorism financing and
proliferation financing (“ML/TF/PF”) and to protect the integrity Kenanga places confidence on our employees and the
and stability of the international financial system, Kenanga Employees Ethics Code is a testament to this belief
has continued to strengthen the AML/CFT/TFS compliance that our values are reflected through the conduct and
framework in line with Kenanga's zero-tolerance of financial behaviour of our employees. All employees are expected
crime. to observe high standards of professionalism, integrity
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and conscientiousness, and must not put themselves in an The employees as well as department, divisions and
obligated or compromised position in all dealings with each subsidiaries within Kenanga are required to declare any
other as well as with external parties. actual, potential or perceived conflicts of interest, be it
personal or business-related. This requirement is premised
The commitment of all employees to comply with the on the basis that such conflicts could interfere with the
Employees Ethics Code is procured and refreshed where ability to act objectively and in the best interest of Kenanga,
all new recruits are required to acknowledge understanding and in order for any conflicts to be properly managed by
on expectation in regard to the Code while similar taking the necessary steps.
acknowledgement is obtained from the existing employees
annually. • Gifts, Entertainment and Hospitality
• Code of Conduct for Vendors The Group Gifts, Entertainment and Hospitality Policy
(“GGEH Policy”) serves as one of the control measures
Kenanga treats our vendors fairly through conduct of involving situations that could be deemed as conflict of
business and behaviour that are consistent with our ethical interest or could potentially give rise to the appearance
values and principles. It is also the goal of Kenanga to of conflict of interest in relation to any business dealings
always collaborate with our vendors towards contributing between Kenanga and external parties. The GGEH Policy
to the sustainable development goals. clarifies the position of Kenanga in regard to giving and
acceptance of gifts, entertainment and hospitality in the
The Code of Conduct for Vendors (“Vendors Conduct conduct of business while ensuring the highest standards
Code”) reflects the values of ethics and integrity of Kenanga of ethics and integrity are preserved.
and is principled on ensuring the highest standards of
professional conduct from its vendors. The Vendors In addition to prescribing specific threshold limits and
Conduct Code sets out the minimum standards of general approval requirements in relation to gifts, entertainment and
business conduct and ethical practices expected of all hospitality that employees of Kenanga may offer or receive,
vendors who engage with or undertake work for Kenanga. the GGEH Policy also stipulates that employees are strictly
By requiring vendors to commit to the same, Kenanga takes prohibited from offering or accepting gifts, entertainment
the step towards ensuring that the parties it deals with are and hospitality with a view to improperly cause undue
similarly committed to exemplary values. influence on any other party in exchange of any business
dealings.
• Managing Conflict of Interest
• Chinese Wall and Insider Trading
The Group Conflict Management Policy (“Conflicts Policy”)
sets forth the policies and guiding principles in managing Kenanga has an obligation to ensure that information
conflicts of interest. The Conflicts Policy introduces two (2) pertaining to its business and clients, and all activities of
broad categories of personal and business-related conflicts the clients remain confidential. As such, the Group Chinese
of interest and detail out the situations that may constitute Wall Policy (“Chinese Wall Policy”) is established to prevent
the same. This was done to make clear the importance of and/ or control the flow of confidential and material non-
identifying the various potential conflicts that may arise in public and price sensitive information (“MNPI”) especially
the execution of the responsibilities entrusted upon the between the divisions and departments of Kenanga.
employees.
The Chinese Wall Policy establishes guidelines to avoid the
In addition to the Conflicts Policy, the Guidance on Conflict risk of possible breach of insider trading provisions and
of Interest (“Conflicts Guidance”) was adopted to provide prevent possible conflicts of interest issues. In managing
further guidance towards identifying and managing personal the exposure or misuse of confidential and MNPI, personal
and business-related conflicts of interest. The Conflicts trading of the employees is being monitored. This allows
Guidance further reinforces the primary responsibility of all early detection of any sign of insider trading and assists to
parties in Kenanga in identifying, reporting and managing avoid potential violations of insider trading regulations and
conflicts of interest. therefore, contribute to overall market integrity.
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• Anti-Trust and Fair Competition Practices PROVISION OF TRAINING AND AWARENESS PROGRAMS
Kenanga is committed to acting fairly, responsibly Kenanga recognises that effective communication is key to ensure
and professionally when dealing with its clients. that employees understand their roles and responsibilities in order to
The Board and Senior Management set the tone safeguard the interests of Kenanga and our stakeholders. Therefore,
from the top as the moral compass, inculcating a in 2022, GRCS has enhanced training programs as an extended effort
strong culture of fair business dealing to ensure in building ethical and compliance culture from within.
that we operate in a transparent, ethical and
sound manner. Further, the impact of COVID-19 pandemic has accelerated the
need for innovation and technology, including transformation from
The Group Competition Act Cvompliance Policy instructor-based to online-based training. Premised on the same,
(“Competition Policy”) specifies the principles Kenanga has reformed the method of training delivery by leveraging
of fair business dealing of Kenanga and on technology more than ever. This also allows us to reach out to a
prohibits any practices that may be construed as larger audience residing in various places where Kenanga is present.
anti-competitive. The Competition Policy is also
built on ensuring an effective and clear stand to
prevent or minimise the risk of competition law • Fraud Awareness Campaign
infringements and to help Kenanga to promptly
detect any infringements that do occur. Kenanga has been a Corporate Alliance Partner of the Association
of Certified Fraud Examiners (“ACFE”) since 2015, a partnership
• Whistleblowing program which denotes commitment of Kenanga to the fight
against fraud through educational opportunities and setting of the
Kenanga has established the Group Whistleblowing tone from the top.
Policy and Guidance Notes (“Whistleblowing
Policy”) which allows any parties to speak up As part of the annual Fraud Awareness Campaign of Kenanga,
of their concerns relating to any behaviours, the 6th Fraud Awareness Week (“FAW”) was again held in 2022
conducts, practices or omissions that are either under the theme ‘Reaffirming Ethical and Moral Resilience for
unlawful or irregular. The Whistleblowing Policy Good Governance’. The initiatives and activities for the FAW were
also assures and provides safeguards for any executed across five (5) weeks, which began on 12 October 2022
parties speaking up in good faith. towards the International FAW of the ACFE from 13 November
2022 until 19 November 2022.
In our Ethics Survey 2022, more than 90% of the
employees responded stating their confidence Apart from promoting fraud prevention and detection, the
to raise concerns within Kenanga without fear FAW seeks to reaffirm the commitment and belief of Kenanga
of reprisal. This is a positive sign of effective in the importance of ethical and moral values in shaping good
communication by Kenanga on the commitment governance whilst moulding the corporate culture that thrives
and determination to address any unlawful or within the current evolving and transforming regulatory landscape.
irregular behaviours, conducts, practices or This also corresponds to the United Nations Global Compact's
omissions the right way. 10th Principle which emphasises on the need for businesses to
work against corruption in all its forms.
• Common Reporting Standard (“CRS”)
The FAW had also illustrated the emphasis of Kenanga on the
In compliance with the CRS requirements, ‘Governance’ pillar in line with the drive towards ensuring
Kenanga had submitted the financial account environmental, social and governance (“ESG”) compliance.
information of non-resident clients to the Inland Kenanga had expanded our internal campaign that began six (6)
Revenue Board of Malaysia (“IRBM”) in June and years ago to create awareness of the importance of fighting fraud
July 2022 respectively. The submission involved to the financial industry and in such process, remain committed to
ninety (90) entities and funds of Kenanga that have continue emphasising the importance of accountability, integrity
been registered with the IRBM for CRS purposes. and good governance to an even greater audience.
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FAW Virtual Opening Ceremony FAW Games
The Virtual Opening Ceremony of the 6th FAW was broadcasted The FAW Games in 2022 were also held online hence we
‘live’ on 14 November 2022. The Ceremony included were able to expand our anti-fraud network to reach a
pre-recorded talks with distinguished invitees giving views more varied range of professionals as part of our ongoing
and updates on anti-fraud and anti-corruption efforts. collaborative efforts. A total of 188 teams participated,
i.e. 135 internal teams and 53 external teams, an increase
The key speakers include the Chairman of Kenanga of about thirty percent (30%) total teams participated as
Investment Bank Berhad, Y.A.M. Tan Sri Dato’ Seri Syed compared to the FAW Games in 2021. The external teams
Zainol Anwar Ibni Syed Putra Jamalullail; the Chairman of were representatives from regulators, enforcement and
Bursa Malaysia Berhad, Tan Sri Abdul Wahid Omar; as well professional bodies, financial institutions, listed companies
as, the President and CEO for the Association of Certified as well as vendors of Kenanga.
Fraud Examiners, Mr. Bruce Dorris. In addition, Mr. Dan
McCrum, an investigative journalist at the Financial Times The FAW Games were divided into nine (9) different rounds,
also shared his experiences in revealing the financial scandal each of which consisted of friendly competitions employing
of Wirecard. He is the author of “Money Men: A Hot Startup, a variety of fun and mind-challenging games. At the same
A Billion Dollar Fraud, A Fight for the Truth”. time, the educational components encourage teamwork and
critical thinking in decision-making to spread and instil the
A total of 677 viewers tuned in to the live streaming of the anti-fraud message.
Virtual Opening Ceremony in 2022 of which 165 viewers
were from external parties. This indicated an increase of
about eighty percent (80%) total viewers as compared to the
Virtual Opening Ceremony in 2021.
FAW Team Photos and Feedbacks FAW Microsite
As Kenanga emphasises our commitment to improving the The FAW Organising Committee had established a dedicated
corporate culture and maintaining a positive and professional webpage for the sharing of milestones of Kenanga’s FAW
environment, we continue to engage our employees by experience and promoting anti-fraud awareness and
seeking feedbacks to further grow and thrive. education through an online platform. The anti-fraud
resources aim to keep the anti-fraud message going strong
During the period of the FAW, all FAW Games participations and to emphasise the serious consequences of failing to
from the employees of Kenanga were invited to participate in protect oneself from fraud and scams.
the FAW Team Photos and Feedbacks where the employees
submitted a team photo with a quote on the importance of The Microsite will be enhanced from time-to-time as a
anti-fraud awareness training. Through the same channel, measure to share the FAW journey of Kenanga in the effort to
the participants shared their experience and expectation in continuously emphasise the fraud prevention and detection
regard to the FAW Games for further improvements. message which has now widely expanded externally.
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• Annual Regulatory Seminar 2022
The 7th Annual Regulatory Seminar (“ARS”) in 2022 was Each MMKQ was launched on the first Monday of three (3)
incorporated as one of the events for the 6th FAW and in selected months in 2022 and was opened for attempt by
aligning with the objective of addressing contemporary key employees until end of the year.
issues of the FAW, the same theme was also adopted for
the 7th ARS. The 7th ARS consisted of a total of 8-series • Explainer Video on Unusual Trading Activities
of e-learning containing important subjects and
messages that are relevant to the regulatory outlook and GRCS issued an explainer video as an outreach program
developments, fraud, ethics and integrity, governance, to all licensed dealers’ representatives (including
cyber security as well as regulators’ expectations. commissioned dealers’ representatives), employees and
Board in relation to the regulatory requirements for unusual
The training sessions were conducted by various subject- trading activities.
matter experts within Kenanga and invited speakers
including Mr. Dan MacCrum and Ms. Erika Cheung, The explainer video highlighted the various types of
Co-Founder of Ethics in Entrepreneurship who is also irregular trading activities in the equity markets that could
one of the whistleblowers in the Theranos scandal. possibly threaten a fair and orderly market. The video
The pre-recorded sessions were accessible online by all further explained the common red flags, the escalation
employees nationwide through learning portal of Kenanga process and the consequence if the licensed dealers’
and a short pre-and-post quiz was also held as a tool to representatives is found to be involved in the manipulative
evaluate the understanding of employees of the topics trading activity as well as the possible surveillance actions
covered. from the regulators.
A total of 1,134 employees enrolled to the 7th ARS. Upon • Enhanced AML/CFT/TFS Review
completion of the training within the stipulated timeline
and achieving a minimum of eighty-percent (80%) scores As part of the continuous effort to mitigate ML/TF/PF
in the post quiz, employees who are holders of the Capital risks of Kenanga, numerous AML/CFT/TFS reviews have
Markets Services Representative's Licence were also been extended to all subsidiaries and carried out on a
awarded ten (10) CPE points that have been accredited by group-wide basis. In this regard, the enhancement of the
Securities Industry Development Corporation. monitoring mechanism will facilitate close monitoring of the
level of AML/CFT/TFS compliance to meet the regulators’
• Monday Must-Know Quiz (“MMKQ”) expectations.
MMKQ is a new training and awareness initiative introduced Kenanga has also rolled out the Enterprise Wide Risk
in the form of a quiz which is mandatory for employees of Assessment 2022 and the Overview on ML/TF/PF Risk
Kenanga. The quiz covers a broad range of topics that are Assessment 2021 to enhance awareness and understanding
centered and focused on ethics and regulatory compliance, of the Board and Senior Management of ML/TF/PF risks
and served as a refresher on the policies and procedures of associated with business strategies, delivery channels
Kenanga on the subject matters. and geographical coverage of its business, products and
services offered and to be offered in order to maintain
There were three (3) sets of a 5 (five) multiple-choice- accountability and oversight for the establishment of AML/
questions quiz issued in 2022 based on a short video on CFT/TFS policies and minimum standards. This will assist
the following topics: in the formulation of the AML/CFT/TFS policies to ensure
that they are in line with the risks profiles, institutional and
• Fraud Triangle business structure, delivery channels and geographical
• Anti-Bribery and Anti-Corruption coverage.
• Conflict of Interest
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MAINTAINING A HIGH LEVEL OF CORPORATE GOVERNANCE
Details on Kenanga Investment Bank Berhad’s corporate governance disclosure are available in the Corporate Governance
Overview Statement appearing on pages 66 to 96 of this Annual Report and Corporate Governance Report which is
available at Kenanga Investment Bank Berhad’s website at https://www.kenanga.com.my.
OUR FOCUS AND STRATEGIC PRIORITIES FOR 2023
The importance of ESG has accelerated with the growing interest of the investors and introduction of new regulations on socially
responsible investment and due to this, the advancement of the ‘Governance’ pillar remains a critical aspect for the business and
operations of Kenanga in 2023. Kenanga seeks to ensure that our sustainability journey is one that is balanced and holistic, and
that our adoption of ESG best practices is less risky and better positioned for a long-term presence.
Kenanga and GRCS will consistently implement a rigorous ESG compliance strategy and operational transparency to guarantee a
quality regulatory framework and that our business and operations are carried out in accordance with good corporate governance.
• Enhance the Use of Technologies and Innovation

In addition, a more sophisticated group-wide ethics
Kenanga has adopted a governance strategy focusing on and compliance risk management program that gives
risk-based integration of compliance requirements and a holistic perspective of hazards and improve risk
best practices in line with the laws, regulations and industry monitoring, analysis, and reporting will be implemented.
standards. As more services are offered in the digital This would not only help to promote ethics and
environment, we will continuously develop new and update compliance but establish the right connection to
existing compliance requirements and best practices in line corporate plans, processes, controls and laws, which
with the digitalisation in order to remain significant and relevant. would eventually allow Kenanga to manage financial
crime risks proactively and gain a competitive edge.
At the same time, Kenanga will keep up with the development
and changes in laws and regulations to achieve compliance • Foster a ‘Speak Up’ Culture
effectiveness, and stay up-to-date by looking into innovation
and being consistent with the regulators’ expectations. We will Kenanga is committed to providing a respectful and
strive to develop and take advantage of new technologies as inclusive environment to work in. We will continue to
these are essential processes across business and operational emphasise on the importance of employees speaking
units while at the same time ensure effective compliance up to highlight any wrongdoing or breach of policies at
strategy in adapting to the changes. the workplace either through direct communication with
the superiors or the relevant channels in Kenanga such
• Strengthen Controls to Combat Financial Crimes as the whistleblowing (Speak Up) channel.
Kenanga takes a zero-tolerance approach with respect to Through such emphasis, Kenanga sends a strong
financial crimes in all our business dealings, be it involving our message to all employees as well as other stakeholders
employees, clients, suppliers, contractors or other third parties. that bad organisational practice will not be tolerated.
The COVID-19 pandemic has revealed further the necessity This also reassures the employees and stakeholders
for Kenanga in establishing a stronger foundation that will that their concerns are important, and encourages
better position us to combat financial crimes and similar risks problems to be brought to the attention of Kenanga.
that may have corrupting effect on society and the economic
system as a whole.
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• Promote Cultural Change Prioritising Ethics and Integrity
Effective ethics and compliance programs could help build In this regard, Kenanga places a high priority on
a culture of integrity from the top to bottom and everyone protecting personal data and maintaining electronic
‘walks the talk’. In Kenanga, we believe a strong ethical or hard copy files for records used in all our business
culture with diversity and inclusion could lead to greater activities. These security measures include ensuring
efficiency, productivity and transparency. This would establish that the data use, storage, dissemination, protection
accountability of all parties on their respective areas while also and access are all in compliance with the policies as
helps to address any possible concerns of the employees on a well as the rights of the data owners are managed in
constant basis. accordance with the laws and regulations.
The cultural change strategies in Kenanga encourage and • Intensify Awareness and Training
reinforce the right behaviours in our daily operations, and
employees at all levels are committed to doing what is right Kenanga believes that active stakeholders’ engagement
while upholding good values and standards. Kenanga will and ensuring that employees stay current with
continue to promote and instil consciousness of the employees regulatory changes are crucial components of effective
to observe the highest standards of professionalism, integrity communication, as is transparency and inclusiveness of
and conscientiousness in all dealings, be it with another the process itself. As such, we are constantly exploring
employee or with external parties. new ways to enable effective communication with the
employees, including employing new digital technology
• Ensure Data Privacy in the Age of Digital in training as this would also allow involvement of a
Transformation larger group of audience.
Kenanga takes digital transformation as a necessary step Kenanga will maintain strategy-driven learning culture
in preserving our business and continuously ensure data by introducing new learning opportunities through
protection and security in such process. This includes migrating creative interactive activities to engage with employees
business processes to automation, introduction of e-services, at all levels on the importance of ethics and integrity,
and the advent and usage of payments innovations. The use combating financial crimes, strong governance and fair
of new and innovative technologies will enable creativity and treatment of all. Our training and education initiatives
development of solutions both to meet regulatory requirements will remain relevant, timely and engaging in order to truly
as well as to ensure data integrity. achieve the aims and goals of improving knowledge and
understanding of the employees.
FORWARD LOOKING STATEMENT
Kenanga is always prepared to embrace new business challenges and technologies towards future growth with expanded
business goals while ensuring that our principles and belief on good ethics and compliance are not compromised.
Our utmost commitment is premised on the strong and unwavering support from our Board and Senior Management as
well as collaborative efforts of all employees.
With the growing emphasis of ESG, Kenanga will further elevate our standards in keeping up with the interest of our
clients and expectations of the regulators towards supporting sustainable and responsible investments. Therefore, we will
consistently enhance our policies and internal controls in ensuring effective and relevant decisions in compliance with the
laws and meeting the needs of our stakeholders.
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STATEMENT ON RISK MANAGEMENT

AND INTERNAL CONTROL
INTRODUCTION
Pursuant to Paragraph 15.26(b) of the Main Market Listing Requirements (“MMLR”) of Bursa Malaysia
Securities Berhad (“Bursa Securities”), a listed issuer must ensure that its Board of Directors (“Board”)
includes in its annual report a statement about the state of its risk management and internal controls as
a group. In addition, the Malaysian Code on Corporate Governance also stipulates that the Board should
maintain a sound system of internal controls and review its effectiveness to safeguard Shareholders’
investments and the Group’s assets.
Set out below is the Board’s Statement on Risk Management and Internal Control in compliance with the MMLR of Bursa Securities.
BOARD RESPONSIBILITY
The Board is committed to maintaining a sound system The key elements of the Group’s internal control system include
of internal controls and has instituted a risk management the following:
framework, as well as good corporate governance measures
to monitor the effectiveness of the measures and controls put Risk Management Framework
in place by the Group to safeguard Shareholders’ investments
and the Group’s assets. The risk governance structure in the Enterprise Risk
Management Framework defines the roles and responsibilities
The Board is responsible for determining key strategies and throughout the organisation to ensure accountability and
policies for significant risks and control issues, whereas ownership. It sets out the principles of sound corporate
Management is responsible for the effective implementation governance to assess and manage risks to ensure that risk
of the Board’s policies by way of identifying, monitoring and taking activities are aligned with the Group’s long-term viability
managing risks. However, as any system of internal controls and its capacity to absorb losses.
will have its inherent limitations, the system has been designed
to manage risks rather than provide absolute assurance against The risk management philosophy adopted by the Group is
material misstatement, fraud or loss. based on the three (3) lines of defence approach. The line
management is the first (1st) line of defence and is primarily
The Board has also received reasonable assurance from the responsible for the day-to-day risk management by identifying
Group Managing Director and Group Chief Financial and the risks, assessing impact and taking appropriate actions to
Operations Officer that the Group’s risk management and manage and mitigate risks.
internal control system is operating adequately and effectively,
in all material aspects. The second (2nd) line of defence is the oversight functions
comprising Group Risk Management and Group Regulatory
RISK MANAGEMENT AND INTERNAL CONTROL SYSTEM & Corporate Services (“Group Regulatory”). They perform
independent monitoring of business units as well as reporting
The Board and Management of the Group are committed to to Management and the Board to ensure that the Group
the implementation of an internal control system to manage conduct its business and operations within internal guidelines
those risks that could affect the Group’s continued growth and and in compliance with relevant regulatory requirements.
financial viability.
The third (3rd) line of defence is Group Internal Audit (“GIA”)
Measures are taken to continuously evaluate changes in the which provides independent assurance to the Board on the
risk profile of the Group and business complexities to assist the adequacy and effectiveness of system of internal controls,
Board and Management to anticipate and manage all potential risk management and governance processes.
risks and protect Shareholders’ value.
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Governance
The Board, through its appointed committees such as the Quarterly meetings are held by the Audit Committee (“AC”)
Group Board Risk Committee (“GBRC”) and Group Board together with Management to review issues highlighted in the
Digital Innovation & Technology Committee (“GBDITC”), reports by internal and external auditors, as well as audits
ensures that the Group’s activities are consistent with its conducted by regulators such as Bank Negara Malaysia (“BNM”),
approved risk appetite, strategies and policies. the Securities Commission Malaysia (“SC”) and Bursa Securities;
and the remedial measures or actions taken by Management in
The GBRC is supported by the Group Risk Committee addressing the audit findings raised by the regulators.
(“GRC”) that provides a forum to address and review
the management of credit, operational, market, liquidity, The Group Governance, Nomination & Compensation Committee
technology and other significant risks to enable effective (“GNC”) was established with the objective, among others, to
oversight, accountability and responsibilities for risk taking support the Board in the effectiveness and the enhancement
decisions. Assisting the GRC is the Group Operational of the Group’s governance structure, framework and policies
Risk Committee and the Group Business Continuity and its compliance with the applicable statutory and regulatory
Management Committee. requirements in relation thereof, including but not limited to,
the MMLR of Bursa Securities, BNM’s Policy Document on
The GBDITC on the other hand, focuses on technologies Corporate Governance, the Malaysian Code on Corporate
and IT risk of the Group at the Board level and is supported Governance and the Malaysian Anti-Corruption Commission Act
by the Group Digital Innovation Technology Committee 2009, as well as the relevant latest developments in the corporate
which covers the Group’s technology plans and projects. governance area.
BOARD OF DIRECTORS
Group Board Group Governance,

Employees’ Share Digital Innovation & Nomination & Shariah Audit Group Board
Scheme Committee Technology Compensation Committee Committee Risk Committee
Committee Committee
Group Digital Group Talent

Innovation Committee Group Executive Group Risk
Technology Group Disciplinary Committee Committee
Committee Committee
Group Credit Group Products Group Outsourcing & Group Sustainability Group Operational
Committee Committee Procument Committee Management Committee Risk Committee
Group Business
Continuity
Corporate Finance Senior Management
Building Committee Staff Outreach Committee
Officer Commitee Committee
Board Committee Management Committee
111

Management Committees (“MC”) are established to oversee Annual Business Plans and Budgets
specific responsibilities based on defined terms of references.
MC meetings are held regularly to ensure that business The Board reviews and approves the business plans and
operations are executed in accordance with approved budgets which are developed in line with the Group’s strategies
strategies, policies and business directions. The MCs are and risk appetite. Actual performances against the approved
responsible for, amongst others: budgets are escalated to the Management and Board on a
monthly basis allowing responses and corrective actions to be
• reviewing the actual performance against expectations and taken.
budget;
• addressing any internal control issues with the AC, GBRC, Human Capital Management
GBDITC, GNC, Employees’ Share Scheme Committee
(“ESSC”), GIA, regulators and the external auditors; and The organisational structure, which is aligned to business and
• addressing any matters arising from the meetings of the operational requirements are led by Heads of Departments
Board, AC, GBRC, GBDITC, GNC and the ESSC; and with accountability in place.
ensuring that actions are taken in relation to these matters.
Human Resources’ policies and procedures are reviewed
Risk Management Process and Infrastructure regularly to ensure they remain relevant to manage operational
and people related risks. There are regular trainings and
The risk management process is a combination of both updates for employees on requirements/ guidelines of BNM,
bottom-up and top-down approaches to facilitate decision Bursa Securities and the SC, as well as on the importance of
making based on available information known at the time and corporate governance, risk management and internal control.
creating opportunities to refine inputs when new information is Various awareness programmes on operational risks, ethics
available. and fraud are also conducted regularly.
In addition to establishment of risk policies, tools and Extensive screenings of employees’ background are conducted
methodologies to identify, quantify and manage the risks, on hiring, as well as annually, and appropriate actions are taken
Group Risk Management is also responsible for establishing on negative findings.
the risk measurement and monitoring process to ensure that
the Group’s risk profile and portfolio concentration are reported Key Performance Indicators are cascaded to each employee
to the various risk committees on a regular basis. annually in alignment to the Group and Division goals and
objectives, and performance appraisals are conducted
Internal Policies and Procedures based on the achievement of the set targets. Management’s
Compensation and Rewards is based on Pay for Performance
Policies and procedures which set out standard day-to-day principle. Compensation of Material Risk Takers and Other
operations and managing risks are formulated based on current Material Risk Takers are reviewed annually by the GNC and
regulatory requirements and industry best practices. Board.
The adequacy and compliance with regulatory requirements Employee misconducts are managed based on established
of the policies and procedures are assessed by independent Consequence Management Framework and the disciplinary
control functions such as risk management, compliance and policies.
audit, prior to obtaining approval from the Board or relevant
MCs.
Existing policies and procedures are reviewed regularly to

ensure improvements and in consideration of emerging or
changing risks profile, new products or services as well as new
or updated regulatory requirements.
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Business Continuity Management
Business Continuity Plans and Disaster Recovery Plans are Any regulatory deviation or compliance breaches will be reported
established to ensure non-disruption of business or efficient to the respective Boards of operating entities within the Group and
business resumption. Regular testing or drills are also the relevant regulators. Pursuant to this, appropriate corrective
conducted for the purpose of staff preparedness, readiness actions including disciplinary actions will be taken to address the
of disaster recovery site, effectiveness of communication, breach with a view to pre-empt and prevent the occurrence of a
escalation and recovery procedures. For effective business similar breach.
continuity management (“BCM”), awareness training is
held annually for BCM coordinators and key persons. Aside from Group Compliance, the five (5) other departments
of Group Regulatory undertake functions to review and monitor
Information Technology Security compliance in their respective areas. In this respect, the Group
Financial Crime Intelligence, Group Prudential Supervision &
The use of information technology (“IT”) is essential and Regulatory Affairs, Group Business Ethics & Integrity, Group
central to Group’s business. In order to ensure the reliability Legal and Group Company Secretarial provide timely, structured
and resiliency of the business operations to meet the and comprehensive advice and support to the Group in matters
expectations of customers and all stakeholders, and in relating to the laws, rules and regulations applicable to the Group.
line with the guidelines of regulators such as BNM’s Policy
Document on Risk Management in Technology, the Group Group Regulatory has also implemented self-assessment
has established the corporate Cyber Security Policy and framework to facilitate and promote regulatory compliance by the
implemented the necessary security procedures to protect business within the Group. For this purpose, a list of identified
the confidentiality, integrity and availability of information laws, regulations and other regulatory instruments applicable to the
systems and data. Group are documented and maintained to facilitate compliance.
With the increase in adoption of digitalisation and service Please refer to the ‘Ethics and Compliance Statement’ for more
delivery via cyberspace, the Group will continue to reinforce details on functions, roles and responsibilities of Group Regulatory.
its IT security efforts and initiatives to be aligned with the
Group’s current and envisaged operations, strategies and Internal Audit
business environments. The IT security posture of the
Group is also continuously reviewed and enhanced to GIA provides independent and objective assurance to the
mitigate the risks arising from new and emerging threats. Board that the established internal controls, risk management
In-house IT security training and security updates on the and governance processes are adequate and are operating
latest threats are constantly provided to all staff to ensure effectively and efficiently. To ensure independence and objectivity,
their awareness on the importance of IT security. the GIA reports independently to the AC of KIBB and has no
responsibilities or authority over any of the activities it reviews.
Compliance Function GIA’s scope of work and activities are guided by the Internal Audit
Charter, mandatory elements of The Institute of Internal Auditors’
The Board is unreservedly committed and always strives to International Professional Practices Framework and relevant
adopt the principles and recommendations of the Malaysian regulatory guidelines.
Code on Corporate Governance issued by the SC,
as well as, other relevant regulatory requirements relating to An Annual Audit Plan based on the appropriate risk-based
corporate governance. Compliance reviews and monitoring methodology has been developed and approved by the AC. On a
are undertaken by Group Regulatory using various tools quarterly basis, audit reports and status of internal audit activities
and approaches based on the framework set by Group including the sufficiency of GIA resources are presented to the AC
Compliance, a department of Group Regulatory. These for review.
reviews and monitoring are performed to assess the level of
compliance with the relevant regulatory requirements and Periodic follow up reviews are conducted to ensure adequate and
the respective companies’ internal policies and procedures. timely implementation of Management’s action plans.
113

Associate and Joint Venture Companies Review of the Statement by External Auditors
The Board does not regularly review the internal control systems As required by Paragraph 15.23 of the MMLR of Bursa
of associate and joint venture companies as the Board does not Securities, the external auditors have reviewed this Statement
have any direct control over their operations. Notwithstanding on Risk Management and Internal Control. Their review was
this, the Group’s interests are served through representation performed in accordance with the Audit and Assurance Practice
on the Boards of the respective companies via receipt and Guides (“AAPG”) 3, Guidance for Auditors on Engagements
review of management accounts, periodical reports as well to Report on the Statement on Risk Management and Internal
as deliberation on proposals related to these companies. Control included in the Annual Report issued by the Malaysian
Such representation also provides the Board with information for Institute of Accountants. Based on the review, the external
decision-making on the continuity of the Group’s investments auditors have reported to the Board that nothing has come to
based on the performance of these associate companies and their attention that causes them to believe that this Statement
joint venture companies. is inconsistent with their understanding of the process that the
Board has adopted in the review of the adequacy and integrity
Conclusion of the internal controls of the Group. AAPG 3 does not require
the external auditors to, and they did not, consider whether
The Board, through the AC and GBRC, confirms it has this Statement covers all risks and controls, or to form an
reviewed and considered the effectiveness of the Group’s risk opinion on the effectiveness of the Group’s risk and control
management and internal control system as adequate during procedures.
the financial year and has taken into consideration any material
developments up to the date of approval of the Annual Report This Statement on Risk Management and Internal Control is
and Audited Financial Statements for the Financial Year Ended made in accordance with the resolution of the Board dated
31 December 2022. The main financial risk areas faced by the 31 January 2023.
Group and the guidelines and policies adopted to manage
them are provided in detail under Note 50 of the Audited
Financial Statements of the Bank for the Financial Year Ended
31 December 2022.
The Board is satisfied that there is an effective on-going

process for identification, evaluation and management of risks
and there are regular reviews to ensure controls are efficient
and effective.
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AUDIT COMMITTEE REPORT
1. COMPOSITION
1.1 The Audit Committee (“AC”) of Kenanga Investment Bank Berhad (“KIBB”) presently comprises solely Independent
Non-Executive Directors (“INED”) as follows:
1 2 3
Encik Jeremy Nasrulhaq Mr. Kanagaraj Lorenz Puan Norazian Ahmad Tajuddin
Chairman, Senior INED Member, INED Member, INED
In maintaining the adoption of Step Up Practice 9.4 of the Malaysian Code of Corporate Governance for the AC to
comprise solely of Independent Directors, the Board of Directors of KIBB, upon the recommendation of the Group
Governance, Nomination & Compensation Committee (“GNC”) had, on 27 October 2022, approved the appointment of
Puan Norazian Ahmad Tajuddin as a member of the AC, in place of Mr. Luk Wai Hong, William, who was re-designated
from an INED to a Non-Independent Non-Executive Director of KIBB, effective from 1 November 2022.
1.2 The composition of the AC is in line with Paragraphs 15.09(1)(a) and 15.09(1)(b) of the Main Market Listing Requirements
(“MMLR”) of Bursa Malaysia Securities Berhad (“Bursa Securities”) which require the AC to comprise no fewer than
three (3) members, all of whom must be Non-Executive Directors, with a majority of them being Independent Directors.
Two (2) of the AC members, namely Encik Jeremy Nasrulhaq, currently the Chairman of the AC and Mr. Kanagaraj Lorenz,
are members of the Malaysian Institute of Accountants and the Malaysian Institute of Certified Public Accountants
respectively, in line with the requirements of the MMLR of Bursa Securities. This strengthens the effectiveness of the
AC and facilitates the AC’s succession plan in terms of its membership to ensure full compliance with the relevant
regulatory requirements.
1.3 The effectiveness of the AC as a whole, as well as its members individually, is assessed annually in accordance
with the Board Evaluation Framework based on a set of criteria covering the areas of composition, processes and
procedures, interaction with Management, as well as roles and responsibilities. Based on the assessment conducted
in 2022, the Board of Directors (“Board”) is satisfied with the performance of the AC and with the manner in which the
AC has discharged its roles and responsibilities as stipulated in its Terms of Reference (“TOR”), which is available at
the Company’s corporate website at https://www.kenanga.com.my/investor-relations/corporate-governance.
2. AC MEETINGS HELD DURING THE FINANCIAL YEAR ENDED 31 DECEMBER 2022
2.1 During the Financial Year Ended 31 December 2022, the AC had convened seven (7) meetings. The meetings were
appropriately structured where members were given the agenda and sufficient notification. The AC meetings were of
adequate length to allow the AC to accomplish its agenda with sufficient time to discuss emerging issues.
In view of the adherence to the internal Standard Operating Procedure (“SOP”) put in place due to the COVID-19
pandemic in the first (1st) half of year 2022, four (4) AC meetings were held fully virtual via Microsoft TEAMS Video
Conferencing. In line with the revised internal SOP issued in the second (2) quarter of 2022, three (3) AC meetings were
held in a hybrid format.
The AC conducted its meeting in an open and constructive communication mode and encouraged focused discussion,
questioning and expressions of differing opinions.
115
2.2 The Group Chief Internal Auditor (“GCIA”) attended all meetings of the AC to present the respective internal audit
reports. As and when necessary, the AC would request the attendance of relevant personnel at its meetings to brief
the AC on specific issues arising from the internal audit reports.
The Group Chief Financial and Operations Officer (“GCFOO”) and the Head of Group Finance on the other hand,
attended the AC meeting to present the unaudited quarterly financial statements, audited financial statements, as well
as other financial reporting related matters for the AC’s deliberation and recommendation to the Board for approval.
2.3 In addition, separate private discussions were also held between the Chairman of the AC and/or the AC with the GCIA
and between the AC and the External Auditors, Ernst & Young PLT (“EY”), without the presence of Management.
During the period under review, the AC met with the External Auditors without Management’s presence twice i.e., on
24 February 2022 and 25 October 2022, after the tabling of the Update Report in respect of the Financial Year Ended
31 December 2021’s audit and the External Auditors’ 2022 Audit Plan respectively.
During these meetings, the AC sought the feedback from the External Auditors with regard to the support provided
by Management in terms of providing timely and accurate information, as well as the adequacy of resources in the
financial reporting functions. Based on the External Auditors’ feedback, Management was noted to have provided full
cooperation to the External Auditors in the course of the External Auditors’ audit assignments. The External Auditors
had also indicated that Management had been very pro-active in approaching them for any issues arising during the
year, which contributed to an effective audit planning by the External Auditors.
2.4 In fulfilling its reporting responsibility to the Board, after each meeting, the Chairman of the AC reported the AC’s
deliberations and recommendations to the Board.
The Minutes of each AC meeting were recorded and tabled for confirmation at the following AC meeting and
subsequently presented to the Board for notation.
2.5 AC Members’ Attendance at Meetings
The details of the AC members’ attendance at its meetings held during the Financial Year Ended 31 December 2022
are as stated below.
Audit Committee (“AC”)
Number of Meetings
Percentage
Name of Director Held(1) (2) Attended (%)
Encik Jeremy
8 8 100.0%
Nasrulhaq (Chairman) Notes:
(1) Reflects the number of meetings held during the time the
Mr. Luk Wai Hong, Director held office.
8 8(4) 100.0%
William(3) (2) Total number of meetings held was inclusive of one (1) joint
meeting between AC and GBRC which was held on 30 August
Mr. Kanagaraj Lorenz 8 8 100.0% 2022.
Puan Norazian Ahmad (3) Ceased to be a member of the AC on 1 November 2022.
0 0 0.0% (4) Attended all the eight (8) meetings held up to 25 October 2022.
Tajuddin(5) (5) Appointed as a member of the AC on 1 November 2022.
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Annual Report 2022
3. SUMMARY OF THE AC’S ACTIVITIES DURING THE FINANCIAL YEAR ENDED 31 DECEMBER 2022
3.1 Financial Reporting
a. In discharging its role and responsibility pertaining to the Company’s financial reporting, the AC had at its meeting
held on 25 January 2022, reviewed the quarterly financial statements for the quarter ended 31 December 2021,
as well as the annual audited financial statements in respect of the Financial Year Ended 31 December 2021.
In reviewing the annual audited financial statements, the AC discussed with Management and the External
Auditors, the accounting principles and standards that were applied and their judgment of the items that might
affect the financial statements.
The AC also deliberated on audit issues and key audit matters raised by the External Auditors and the action
plans required to address those issues, based on the External Auditors’ recommendations.
b. The subsequent quarterly financial statements for the quarters ended 31 March 2022, 30 June 2022 and
30 September 2022 were tabled and reviewed by the AC at its quarterly meetings held on 28 April 2022, 21 July
2022 and 25 October 2022 respectively, upon which the AC had recommended the quarterly financial statements
to the Board for approval.
c. The AC had, at its meeting held on 25 October 2022, also reviewed the adoption of the impairment approach and
the assumptions used in the annual assessment for impairment of assets of KIBB Group for the Financial Year
Ended 31 December 2022 and recommended the same for the Board’s approval, subject to a final assessment
to be updated to the position as at 31 December 2022.
d. At each of its quarterly meeting, the AC was also notified of the amount of non-audit fees incurred and paid by
KIBB Group to the External Auditors and their affiliate to ensure compliance with the Group’s Policy on Non-Audit
Services by External Auditors.
3.2 External Audit
a. The report by the External Auditors on the statutory audit of the financial statements of the Company for
the Financial Year Ended 31 December 2021 was reviewed and deliberated by the AC at its meeting held on
25 January 2022.
During its deliberations, in addition to the relevant disclosures in the Audited Financial Statements, the AC had
also considered the recommendations made by the External Auditors towards enhancing internal controls and
procedures.
b. The AC had also at the same meeting reviewed the list of services provided by the External Auditors during the
financial year which comprised audit and regulatory-related services, issuance of a written communication to
Management and the AC pertaining to the External Auditors’ audit/ findings, together with the recommendations
for improvements in controls and procedures.
The External Auditors’ services also included the review of the Statement on Risk Management and Internal
Control, as well as other regulatory submission as required under the various regulatory requirements.
117
c. At its meeting held on 24 February 2022, the AC was updated by the External Auditors, on the latest status of the
statutory audits conducted on KIBB and its Group of Companies (“KIBB Group” or “the Group”) in respect of
Financial Year Ended 31 December 2021. The AC had, at the same meeting, duly deliberated on the audit matters
which required its attention.
The External Auditors had also reviewed the allocation of the shares of the Employees Share Options Scheme
under the Employees’ Share Scheme (“ESS”) made to the Eligible Employees and Executive Directors of KIBB
and its non-dormant subsidiaries and had reported to the AC at its meeting held on 24 February 2022, that in its
opinion, the allocation of shares made under the ESS was in compliance with the criteria for allocation of shares
under the ESS which had been disclosed to the Eligible Employees and Executive Directors of KIBB and its
non-dormant subsidiaries. The AC had concurred with the External Auditors’ opinion.
d. Pursuant to Section 67(1) of the Financial Services Act 2013, an auditor appointed by a licensed person shall
meet the qualification criteria set out in Bank Negara Malaysia (“BNM”)’s Policy Document on External Auditor
and shall continue to meet the criteria throughout the audit engagement.
In addition, BNM’s letter dated 3 May 2012 on “Supervisory Expectations on AC Pertaining to the Appointment/
Re-Appointment of External Auditors” also sets out the areas of assessment to be performed.
Being a licensed financial institution under the Financial Services Act 2013, the Company is required to undertake
an annual assessment on areas focusing on performance and independence of External Auditors.
In relation to the audit of the Company’s financial statements for the Financial Year Ended 31 December 2021,
the External Auditors had given a written assurance to the AC that they were independent in accordance with
the By Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants and the
International Code of Ethics for Professional Accountants (including International Independence Standards),
throughout their audit engagement for 2021.
This written assurance by the External Auditors was contained in the External Auditors’ report which was
presented to the AC on 25 January 2022.
Following the implementation of the requirement for Annual Transparency Reporting by the SC’s Audit Oversight
Board and in line with Malaysian Code of Corporate Governance’s criteria to guide decisions on the appointment
and re-appointment of the external auditors, the 2021 Transparency Report was issued by EY and presented to
the AC on 25 January 2022.
After taking into consideration the assessment carried out by Management and the 2021 Transparency Report,
the AC at the same meeting, had concluded that the External Auditors had fulfilled all the qualification set out in
BNM’s Policy Document on External Auditor in terms of its performance and independence and had therefore,
recommended to the Board that the External Auditors be re-appointed as the Company’s External Auditors for
the Financial Year 2022.
e. At its meeting held on 25 October 2022, the AC reviewed and approved the External Auditors’ 2022 Audit Plan
outlining their scope of work and proposed fees covering their recurring audit assignments, as well as other
regulatory-related services.
During the presentation of their 2022 Audit Plan, the External Auditors had also highlighted to the AC the
developments (as at 30 June 2022) in the financial reporting as summarised overleaf.
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Annual Report 2022
Malaysian Financial Reporting Standards (“MFRS”) issued but not yet effective as at 1 January 2022
Description Effective Date
Reference to the Conceptual Framework 1 January 2022

(Amendments to MFRS 3 Business Combinations)
Property, Plant and Equipment Proceeds before Intended Use 1 January 2022
(Amendments to MFRS 116 Property, Plant and Equipment)
Onerous Contracts Cost of Fulfilling a Contract 1 January 2022
(Amendments to MFRS 137 Provisions, Contingent Liabilities
and Contingent Assets)
AIP2 MFRS 1 First time Adoption of International Financial 1 January 2022
Reporting Standards Subsidiary as a First-Time Adopter
AIP MFRS 9 Financial Instruments Fees in the ‘10 Per Cent’ Test 1 January 2022
for Derecognition of Financial Liabilities
AIP MFRS 141 Agriculture Taxation in Fair Value Measurements 1 January 2022
MFRS 17 Insurance Contracts 1 January 2023
Classification of Liabilities as Current or Non-current 1 January 2023
(Amendments to MFRS 101)
Definition of Accounting Estimates (Amendments to MFRS 108) 1 January 2023
Disclosure of Accounting Policies 1 January 2023
(Amendments to MFRS 101 and MFRS Practice Statement 2)
Deferred Tax Related to Assets and Liabilities Arising from a 1 January 2023
Single Transaction (Amendments to MFRS 112)
Sale or Contribution of Assets Between an Investor and Its In December 2015, the MASB postponed the
Associate or Joint Venture (Amendments to MFRS 10 and effective date of this amendment indefinitely
MFRS 128) pending the outcome of its research project
on the equity method of accounting
f. In view of the significant growth in the business of Kenanga Investors Berhad (“KIB”) and sizeable contribution
towards the Group’s bottom line, EY had tabled the report in respect of the statutory audit of the financial
statements for the Financial Year Ended 31 December 2021 and audit plan for KIB and Its Subsidiaries in respect
of the Financial Year Ended 31 December 2022 to the Audit and Risk Committee of KIB (“ARC”) at its meetings
held on 24 February 2022 and 19 October 2022 respectively. From the perspective of governance, EY will
escalate key audit issues encountered at KIB level to the AC of KIBB for deliberation/ notation. Upon ARC’s
approval, the audit plan for the Financial Year Ended 31 December 2022 of KIB Group was tabled to the AC of
KIBB for deliberation at its meeting held on 25 October 2022.
3.3 Internal Audit
a. At its meeting on 25 January 2022, the AC had reviewed and approved the 2022 Audit Plan tabled by Group
Internal Audit (“GIA”) after considering the adequacy of scope and comprehensiveness of the coverage of
activities within KIBB Group, as well as the adequacy of resources in the internal audit department.
On 28 April 2022, the AC had deliberated and approved GIA’s recommendation to co-source selected internal
audit reviews which was subjected to GIA’s requirements and to be performed in accordance with GIA’s
framework, as well as per the direction/ guidance from the Managers in-Charge from GIA.
2
AIP refers to Annual Improvements to MFRSs
119
b. In 2022, the AC had reviewed and deliberated on a total of thirty-eight (38) internal audit reports in relation to the
audits carried out by GIA, together with the audit recommendations made by GIA and Management’s responses
to those recommendations.
Where appropriate, the AC had directed Management to rectify and improve the control and workflow procedures
based on GIA’s recommendations.
The AC, at all its quarterly meetings, also reviewed the implementation status of the corrective actions arising
from the audit recommendations to ensure that the key risks and control lapses were addressed in a timely
manner.
With regard to long outstanding audit recommendations, where appropriate, the relevant Heads of Department
were invited to the AC meeting to provide relevant explanation for the delay in implementing such audit
recommendations.
In ensuring timely implementation of audit recommendations, the Company, under its Performance Management
Framework, had introduced a demerit system for any delay in implementing high-risk audit recommendations of
more than twelve (12) months.
c. In addition to the audit conducted on the processes and systems of Support and Business Units within KIBB
Group, during the Financial Year 2022, GIA also conducted various regulatory required reviews in areas including
amongst others, Anti-Money Laundering/ Counter Financing of Terrorism, Basel II (Pillar 3), Related Party
Transactions, Verification of RM Marketable Securities, Staff Training Fund, Cyber Security, Management of
Customer Information and Business Continuity Plan/ Disaster Recovery Plan Testing.
d. The AC at its meeting on 25 January 2022, had taken note of GIA’s Annual Confirmation on Organisational
Independence of Internal Audit Activity for the Financial Year 2021 in line with the International Standards for
Professional Practice of Internal Auditing (Standards – 1110).
e. For the purpose of evaluating the performance of the GCIA, the AC had at its meeting on 25 January 2022,
reviewed and deliberated the GCIA’s 2021 Performance Appraisal, as well as the 2022 Balanced Scorecard,
prior to submission of the same to the GNC for its further recommendation to the Board of KIBB for approval.
The revised 2022 Balanced Scorecard incorporating the feedback/ comments provided by the AC, had been
recommended to the Board of KIBB for approval by the AC at its meeting held on 24 February 2022.
The AC’s recommendation on the GCIA’s 2021 Performance Appraisal and 2022 Balanced Scorecard were
subsequently approved by the Board of KIBB on 26 January 2022 and 3 March 2022 respectively.

f. The AC at its meeting on 25 January 2022, had also taken note of the implementation status of the agreed plans
from the Quality Assessment Report on GIA.
g. The AC, at its meeting on 25 October 2022 had deliberated and approved the revised Internal Audit Manual
(Version 8) on the enhancement to the risk assessment process and the current Quality Assurance Improvement
Program procedures in terms of approach, scope, process and resource of the internal assessment (i.e., periodic
self-assessment) to be conducted.
h. The AC, at all its quarterly meetings also reviewed and noted the confirmed minutes of the ARC of KIB and Group
Outsourcing and Procurement Committee meetings.
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Annual Report 2022
3.4 Briefing on KIBB’s Malaysian Financial Reporting Standards 9 Model Enhancement
At its meeting on 24 February 2022, the AC had taken note of the IFRS 9 Model Enhancement in terms of the triggers,
details, output of the model enhancement and the impact assessment on the final Expected Credit Loss briefed by an
external consultant, Deloitte Business Advisory Sdn Bhd.
3.5 Regulatory Examinations/ Inspection Report
As stipulated in its TOR, the AC also deliberates on reports issued by the regulators arising from their examinations
or inspections on entities within KIBB Group. This is to ensure proper implementation of appropriate remedial and
corrective measures in respect of the findings arising from examinations/ inspections conducted by the regulators.
During the year, the AC had deliberated on the following two (2) regulatory audit reports:
Date of AC Meeting Titles of Regulatory Audit Report
21 July 2022 BNM’s Thematic Review on the Adequacy of Identification and Verification of Beneficial
Ownership for Legal Firms and Foundations
21 July 2022 Final Inspection Report by Bursa Malaysia Berhad on KIBB’s Subsidiary, Kenanga
Futures Sdn Bhd Dated 22 June 2022
During its deliberation, the AC not only discussed in detail the findings, areas for enhancement and recommendations
made by the respective regulators, but also on the action plans identified by Management in addressing the findings and
implementation of the recommendations including the agreed timeline of implementation of such recommendations.
The implementation of the regulator’s recommendations was tracked by Group Regulatory & Corporate Services
Division of KIBB and reported to the respective regulators on a quarterly basis until full resolution of all findings raised.
3.6 Related Party Transactions
During its quarterly meetings, the AC also reviewed the related party transactions and recurrent related party
transactions entered into by the Company and/or its group of companies to ensure compliance with the MMLR of
Bursa Securities.
3.7 Disclosure for Annual Report 2021
Under its TOR, the AC was also tasked to review the accuracy and adequacy of the Chairman’s Statement in the
Directors’ Report, corporate governance disclosures and internal control, interim financial reports and preliminary
announcements in relation to the preparation of financial statements.
In this regard, the AC at its meeting on 24 February 2022 and 21 March 2022 respectively had also reviewed and
recommended to the Board of KIBB for approval, the disclosure of the following reports and/or statements in KIBB’s
2021 Annual Report:
• Statement on Risk Management and Internal Control;

• AC Report;
• Sustainability Report and Sustainability Statement; and
• Corporate Governance (“CG”) Overview Statement and CG Report.
121
At the same meeting, the AC had also granted its concurrence on the Chairman’s Statement and the Group Managing
Director’s Management Discussion & Analysis for incorporation into KIBB’s 2021 Annual Report.
The AC’s recommendation was subsequently approved by the Board of KIBB on 3 March 2022 and 6 April 2022
respectively.
3.8 List of Disciplinary Actions Meted Out on Employees’ Misconducts within KIBB Group
The list of disciplinary actions meted out on KIBB Group’s employees who had committed misconduct was tabled by
Group Human Resource for the AC’s notation at its meetings held on 25 January 2022, 28 April 2022 and 25 October
2022.
3.9 Post Approval Review by Independent Credit Review (“ICR”) Unit
Pursuant to Paragraph 17.5 of BNM’s Policy Document on Credit Risk, the outcomes of independent credit reviews
are required to be escalated directly to the Board Risk Committee, Board Audit Committee and Senior Management.
In fulfilling the aforementioned requirement, ICR Unit of Group Risk Management, upon completion of its review, would
table the review report to the AC for its deliberation.
In this regard, during 2022, the AC had deliberated on the following ICR review reports tabled by the ICR Unit:
Date of AC Meeting Titles of Review Report
24 February 2022 Post Approval Review of Kenanga Capital Islamic Sdn Bhd
24 February 2022 Review of Treasury Bond Portfolio
21 July 2022 Post Approval Review on Share Margin Financing
During its deliberation, the AC had taken note of the findings raised by the ICR Unit arising from the respective reviews,
as well as the recommendations made by the ICR Unit together with Management’s action plans in addressing those
findings.
3.10 Integrity, Regulatory and Governance
a. KIBB Group had implemented the following policies to facilitate its adherence to the Guidelines on Adequate
Procedures issued pursuant to Section 17A (5) of the Malaysian Anti-Corruption Commission Act 2009, and to
keep abreast with the best practices and high standards of ethics and integrity:
i. Group Conflict Management Policy;

ii. Group Incoming Non-Commercial Sponsorship Policy; and
iii. Group Gifts, Entertainment and Hospitality Policy.
In line with the requirement specified in these polices, the information in relation to actual, potential or perceived
conflicts, sponsorships, gifts, entertainment and hospitality, which fell within the scope of these policies received
from the employees will be compiled and relevant report will be tabled by Group Business Ethics and Integrity
(“GBEI”) to the AC for its notification on an annual basis.
In relation thereto, the AC at its meeting held on 25 January 2022 had taken note of the summary of information
submitted by the employees within KIBB Group to GBEI for the period from December 2020 until December 2021.
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Annual Report 2022
b. The AC, at its meeting held on 25 January 2022 and 25 October 2022 had also taken note of the outcome of the
review performed by the Group Prudential Supervision & Regulatory Affairs (“GPSRA”) in relation to the status
of implementation of action plans identified by the relevant departments following GPSRA’s regulatory issuances
of new, revised and updated regulations to ensure KIBB’s compliance with the relevant regulatory requirements
prescribed by the respective regulators.
c. At its meeting held on 21 March 2022, the AC had reviewed and recommended to the Board of KIBB for approval,
the amendments to its Terms of Reference.
d. At its meeting held 1 September 2022, the AC had reviewed and deliberated on the investigation report pertaining
to a reported whistleblowing case. The AC, on 25 October 2022, further recommended to the Board of KIBB for
approval, on areas identified for improvement based on GIA’s observations on the said whistleblowing case.
3.11 Joint Meeting Between the AC and the GBRC
Pursuant to BNM’s Policy Document on Risk Governance, the GBRC and the AC were expected to periodically meet
to ensure effective exchange of information to enable effective coverage of all risks, including emerging risk issues that
could have an impact on KIBB Group’s risk appetite and business plans.
In this regard, a joint meeting between the AC and the GBRC was held on 30 August 2022 as per the aforementioned
requirement by BNM.
4. INTERNAL AUDIT FUNCTION
4.1 The internal audit function of KIBB is established in-house. In discharging its responsibilities, GIA, which reports
functionally to the AC and administratively to the Group Managing Director, provides independent and objective
assurance to the Board and Management that the policies, procedures and operations that Management has put
in place for risk management, control and governance are adequate, operating effectively and efficiently, and in
compliance with prescribed laws and regulations.
4.2 During the year under review, GIA carried out internal audit reviews based on its 2022 Audit Plan as approved
by the AC. This Audit Plan was developed using a risk-based methodology. The audit reviews conducted by GIA
included business support processes, Information Technology/ technical audits and compliance audits on regulatory
requirements.
4.3 All GIA’s reports, detailing the audit findings, audit recommendations, as well as Management’s responses to those
recommendations were circulated to the Group Managing Director and Heads of the respective Divisions/ Departments
within KIBB Group. Follow-up reviews were performed on the implementation status of the audit recommendations
and reported to the AC accordingly.
4.4 The total costs incurred by GIA in discharging its functions and responsibilities in 2022 amounted to RM4.773 million.
4.5 As at 31 December 2022, GIA’s headcount was eighteen (18).
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We Are Message From Our Sustainability How We Are Financial Shareholders’ Additional
Kenanga Our Leaders Approach Governed Statements Information Information
FINANCIAL
STATEMENTS
Five (5)-Year Group Financial Summary 125
Five (5)-Year Group Financial Highlights 125
Directors’ Report 126
Statement by Directors 132
Statutory Declaration 132
Independent Auditors’ Report 133
Shariah Committee’s Report 139
Consolidated Statement of Financial Position 140
Statement of Financial Position 141
Statements of Profit or Loss and
Other Comprehensive Income 142
Consolidated Statement of Changes in Equity 144
Statement of Changes in Equity 146
Statements of Cash Flows 147
Notes to the Financial Statements 149
124
Annual Report 2022
FIVE (5)-YEAR GROUP FINANCIAL SUMMARY
2019
2022 2021 2020 RM’000 2018
RM’000 RM’000 RM’000 Restated RM’000
RESULTS
Operating revenue 723,086 891,491 973,762 651,270 669,368
Profit before taxation continuing operations 74,150 148,236 134,715 42,951 28,851
Profit after taxation for the financial year
attributable to equity holders of KIBB 54,511 118,390 102,082 26,386 11,911
ASSETS
Total assets 5,962,357 6,418,522 6,575,067 6,630,774 6,546,528
SHAREHOLDERS’ FUNDS
Paid-up share capital 253,834 253,834 246,249 246,249 246,249
Shareholders’ funds attributable to equity holders
of KIBB 1,017,280 1,050,329 999,838 904,289 871,006
FINANCIAL RATIOS
Net return on average shareholders funds (%) 5.27 11.55 10.72 2.97 1.35
Net return on average assets (%) 0.88 1.82 1.55 0.40 0.18
SHARE INFORMATION
Basic earnings per share (sen) 7.50 16.29 14.56 3.78 1.67
Net assets backing per share (RM) 1.41 1.45 1.42 1.29 1.25
Dividend cover (times) 1.23 1.54 1.59 1.16 1.55
Net dividend per share (sen) 6.00 10.50 8.80 3.25 1.10
FIVE (5)-YEAR GROUP FINANCIAL HIGHLIGHTS
Operating Revenue Profit Before Taxation Shareholders’ Funds Basic Earnings per Share
(RM’000) (RM’000) (RM’000) (sen)
973,762
148,236
1,050,329
16.29
1,017,280
999,838
891,491
134,715
14.56
904,289
871,006
723,086
669,368
651,270
74,150
7.50
42,951
3.78
28,851
1.67
‘18 ‘19 ‘20 ‘21 ‘22 ‘18 ‘19 ‘20 ‘21 ‘22 ‘18 ‘19 ‘20 ‘21 ‘22 ‘18 ‘19 ‘20 ‘21 ‘22
125
DIRECTORS’ REPORT
The Directors have pleasure in presenting their report together with the audited financial statements of Kenanga Investment Bank
Berhad (“the Bank” or “KIBB”) and its subsidiaries (“the Group” or “Kenanga Group”) for the financial year ended 31 December
2022.
PRINCIPAL ACTIVITIES
The Bank is principally engaged in the investment banking business, provision of stockbroking and related financial services.
The principal activities of the subsidiaries are described in Note 13 to the financial statements.
There were no significant changes in the nature of the principal activities during the financial year.
RESULTS
Group Bank
RM’000 RM’000
Profit after taxation and zakat 54,502 54,919

Share of results in associates and joint ventures 852 -
Profit for the financial year 55,354 54,919
Attributable to:
Equity holders of the Bank 54,511 54,919
Non-controlling interests 843 -
55,354 54,919
There were no material transfers to or from reserves or provisions during the financial year other than those that have been
disclosed in the statements of profit or loss and other comprehensive income and the statements of changes in equity.
In the opinion of the Directors, the results of the operations of the Group and of the Bank during the financial year were not
substantially affected by any item, transaction or event of a material and unusual nature.
DIVIDENDS
During the financial year, an interim single tier dividend of 10.50 sen per ordinary shares on 733,906,299 ordinary shares in respect
of the financial year ended 31 December 2021, which amounted to RM77,060,192 was paid on 15 April 2022.
Subsequent to the financial year end, on 24 February 2023, the Directors have declared a single tier interim dividend of 6.00 sen
per share in respect of the financial year ended 31 December 2022 which amounted to total dividends payable of approximately
RM44,145,756. This is computed based on issued and paid-up capital as at 31 December 2022 of 735,762,599 ordinary shares.
The actual amount of dividends to be paid will depend on the number of shares in issue at the date of entitlement.
The financial statements for the current financial year do not reflect this interim dividend. Such dividend will be accounted for in
equity as an appropriation of retained profits in the financial year ending 31 December 2023.
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Annual Report 2022
DIRECTOR’S REPORT
KENANGA GROUP EMPLOYEES’ SHARE SCHEME (“ESS” OR “SCHEME”)
The Kenanga Group ESS is governed by the by-laws approved by the shareholders of the Bank at an Extraordinary General
Meeting held on 25 May 2017. The ESS was implemented on 21 September 2017. It is valid for a period of five (5) years from its
commencement date, and is administered by the ESS Committee. The ESS has been extended for another five (5) years from
21 September 2022 to 20 September 2027 in accordance with the provisions of the By-Laws of the ESS.
The aggregate maximum number of the shares which may be made available by the Bank under the Scheme shall not in aggregate
exceed 10% of the issued share capital of the Bank (excluding treasury shares) at any point in time during the duration of the
Scheme.
Other principal features of the ESS are as follows:
(i) The employees eligible to participate in the ESS must be at least eighteen (18) years of age on the Award date and are
employed by, and are on the payroll of the Kenanga Group and are confirmed in service. The ESS applies to the Bank and
its non-dormant subsidiary companies.
(ii) The entitlement under the ESS for the Executive Directors are subject to the approval of the shareholders in a general
meeting and are not prohibited or disallowed by the relevant authorities or laws from participation in the Scheme.
The ESS encompasses two (2) primary schemes in the form of ESOS and Employee Share Grant Plan (“ESGP”).
The actual allocation of share options to senior management of the Group over the maximum ESS shares was 37.38% as at
31 December 2022.
The actual allocation of share grant to senior management of the Group over the maximum ESS shares was 3.32% as at
31 December 2022.
More details of the ESS are as disclosed in Note 54 to the financial statements.
ISSUANCE OF SHARES
There were no new ordinary shares or debentures issued during the financial year.
BUSINESS REVIEW FOR 2022
The profit before tax (“PBT”) of the Group and of the Bank for the financial year ended 31 December 2022 (“FYE22”) were RM74.2
million and RM58.3 million, compared to PBT of RM148.2 million and RM120.4 million respectively in the previous financial year
(“FYE21”).
The performance of the Group’s respective business segments are analysed below:
STOCKBROKING
Stockbroking division reported a lower PBT of RM2.5 million for FYE22 (FYE21: PBT of RM86.4 million) mainly due to lower net
brokerage income as a consequence of lower trading volume and trading and investment income.
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DIRECTOR’S REPORT
INVESTMENT BANKING
Investment Banking registered a lower PBT of RM15.8 million for FYE22 (FYE21: PBT of RM20.6 million) mainly due to lower net
interest income generated and higher operating expenses and credit loss expenses.
INVESTMENT AND WEALTH MANAGEMENT
Investment and Wealth Management registered marked improvement in PBT of RM54.2 million for FYE22 (FYE21: PBT of RM34.9
million) which was achieved on the back of higher contribution from alternative products.
LISTED DERIVATIVES
The Listed Derivatives segment has turned around and recorded a PBT of RM2.1 million for FYE22 compared to loss before tax
(“LBT”) of RM1.8 million for FYE21 as a result of higher trading activities and higher interest income generated.
MONEY LENDING AND FINANCING
The Money Lending and Financing business reported a lower PBT of RM0.1 million for FYE22 compared to PBT of RM1.6 million
for FYE21 mainly due to the provision of credit loss expense for an impaired loan.
CAPITAL RATIOS
The Group and the Bank remain on strong financial footing with total capital ratios of 28.913% (FYE21: 28.291%) and 30.682%
(FYE21: 29.827%) respectively, well above the minimum prescribed by Bank Negara Malaysia (“BNM”) of 10.5% including capital
conservation buffer of up to 2.50%.
OUTLOOK AND PROSPECTS FOR 2023
As we move into 2023, we expect continued growth as the economy normalises, with a projected GDP of 4.3%. We believe
there is some upside given the lower political risk, resilient private spending and the positive impact of China’s relaxation of its
zero-COVID policy. In addition, a further pick-up in tourism activity will continue to support the recovery in the services sector as
well as further improvement in the labour market condition.
From monetary policy perspective, we expect BNM to keep the overnight policy rate (“OPR”) unchanged at 2.75% and a rate
change will depend on the inflation trend and growth outlook.
Overall, we are cautiously positive of the outlook for Kenanga in 2023 and the Group is committed to driving collaboration,
innovation, digitalisation and sustainability in the marketplace to ensure continued growth in profitability and market share.
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DIRECTOR’S REPORT
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 for
the current financial year was RM59,000.
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 (redesignated on 1 November 2022) (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 (appointed on 1 June 2022) (Independent Non-Executive Director)
Luigi Fortunato Ghirardello (retired on 26 May 2022) (Non-Independent Non-Executive Director)
The names of the Directors of the Group’s 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 53 to the financial statements.
DIRECTORS’ BENEFITS
Neither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which the Bank was
a party, whereby the Directors might acquire benefits by means of the acquisition of shares in or debentures of the Bank or any
other body corporate.
Since the end of the previous financial year, no Director has received or become entitled to receive a benefit (other than benefits
included in the aggregate amount of emoluments received or due and receivable by the Directors of the Bank as shown in Note
39 of the financial statements or from related corporations) by reason of a contract made by the Bank or a related corporation with
any Director or with a firm of which the Director is a member, or with a company in which the Director has a substantial financial
interest.
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DIRECTOR’S REPORT
DIRECTORS’ INTERESTS
According to the Register of Director’s shareholdings, the interests of Directors in office at the end of the financial year, in shares
of the Bank, were as follows:
The Bank: Number of Ordinary Shares

At At
1.1.2022 Addition Disposal 31.12.2022
Direct interest:
Norazian Binti Ahmad Tajuddin 10,000 - - 10,000
Kanagaraj Lorenz 388,000 - - 388,000
Jeremy Bin Nasrulhaq 187,900 - - 187,900
Other than as disclosed above, none of the other Directors in office at the end of the financial year had any interest in shares of
the Bank or its related corporations during the financial year.
OTHER STATUTORY INFORMATION
(a) Before the financial statements of the Group and of the Bank were made out, the Directors took reasonable steps:
(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of allowance
for doubtful debts and satisfied themselves that all known bad debts had been written off and that adequate allowance
had been made for doubtful debts; and
(ii) to ensure that any current assets which were unlikely to realise their value as shown in the accounting records in the
ordinary course of business had been written down to an amount which they might be expected so to realise.
(b) At the date of this report, the Directors are not aware of any circumstances which would render:
(i) the amount written off for bad debts or the amount of the allowance for doubtful debts in the financial statements of
the Group and of the Bank inadequate to any substantial extent; and
(ii) the values attributed to current assets in the financial statements of the Group and of the Bank misleading.
(c) At the date of this report, the Directors are not aware of any circumstances which have arisen which would render adherence
to the existing method of valuation of assets or liabilities of the Group and of the Bank misleading or inappropriate.
(d) At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in this report or financial
statements of the Group and of the Bank which would render any amount stated in the financial statements misleading.
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Annual Report 2022
DIRECTOR’S REPORT
OTHER STATUTORY INFORMATION (CONT’D.)
(e) At the date of this report, there does not exist:
(i) any charge on the assets of the Group or of the Bank which has arisen since the end of the financial year which secures
the liabilities of any other person; or
(ii) any contingent liability in respect of the Group and of the Bank which has arisen since the end of the financial
year other than those arising in the normal course of business as disclosed in Note 42 and Note 43 to the financial
statements.
(f) In the opinion of the Directors:
(i) no contingent liability or other liability has become enforceable or is likely to become enforceable within the period of
twelve (12) months after the end of the financial year which will or may affect the ability of the Group or of the Bank to
meet their obligations as and when they fall due, other than those arising in the normal course of business as disclosed
in Note 42 and Note 43 to the financial statements; and
(ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the financial
year and the date of this report which is likely to affect substantially the results of the operations of the Group or of the
Bank for the financial year in which this report is made.
COMPLIANCE WITH BANK NEGARA MALAYSIA’S POLICY DOCUMENT ON FINANCIAL REPORTING
The Directors have taken reasonable steps to ensure that the preparation of the financial statements of the Group and of the Bank
are in compliance with the BNM’s Policy Document on Financial Reporting.
SIGNIFICANT AND SUBSEQUENT EVENTS
There was no significant event during the financial year and subsequent to the financial year ended 31 December 2022 other than
the event disclosed in Note 55 to the financial statements.
AUDITORS AND AUDITORS’ REMUNERATION
The auditors, Messrs. Ernst & Young PLT, have expressed their willingness to continue in office. The auditors’ remuneration is
disclosed in Note 33 to the financial statements.
Signed on behalf of the Board of Directors in accordance with a resolution of the Board of Directors on 6 March 2023.
Tan Sri Dato’ Seri Syed Zainol Anwar Ibni Syed Putra Jamalullail Jeremy Bin Nasrulhaq
Kuala Lumpur, Malaysia
131
STATEMENT BY DIRECTORS
PURSUANT TO SECTION 251(2) OF THE COMPANIES ACT 2016
We, Tan Sri Dato’ Seri Syed Zainol Anwar Ibni Syed Putra Jamalullail and Jeremy Bin Nasrulhaq, being two (2) of the Directors of
Kenanga Investment Bank Berhad, do hereby state that, in the opinion of the Directors, the accompanying financial statements
set out on pages 140 to 353 are drawn up in accordance with the Malaysian Financial Reporting Standards, International Financial
Reporting Standards and the requirements of the Companies Act 2016 in Malaysia so as to give a true and fair view of the financial
position of the Group and of the Bank as at 31 December 2022 and of their financial performance and cash flows for the financial
year then ended.
Signed on behalf of the Board of Directors in accordance with a resolution of the Board of Directors on 6 March 2023.
Tan Sri Dato’ Seri Syed Zainol Anwar Ibni Syed Putra Jamalullail Jeremy Bin Nasrulhaq
STATUTORY DECLARATION
PURSUANT TO SECTION 251(1)(B) OF THE COMPANIES ACT 2016
I, Cheong Boon Kak, being the officer primarily responsible for the financial management of Kenanga Investment Bank Berhad,
do solemnly and sincerely declare that the accompanying financial statements set out on pages 140 to 353 are, in my opinion,
correct and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the
Statutory Declarations Act, 1960.
Subscribed and solemnly declared by

the abovenamed Cheong Boon Kak
at Kuala Lumpur in the Federal Territory
on 6 March 2023. Cheong Boon Kak
(MIA No: 10259)
Before me,
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Annual Report 2022
INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF KENANGA INVESTMENT BANK BERHAD
(INCORPORATED IN MALAYSIA)
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Kenanga Investment Bank Berhad, which comprise the statements of financial
position as at 31 December 2022 of the Group and of the Bank, and the statements of profit or loss and other comprehensive
income, statements of changes in equity and statements of cash flows of the Group and of the Bank for the financial year then
ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 140
to 353.

In our opinion, the accompanying financial statements of the Group and of the Bank give a true and fair view of the financial
position of the Group and of the Bank as at 31 December 2022, and of their financial performance and their cash flows for
the financial year then ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting
Standards and the requirements of the Companies Act 2016 in Malaysia.
Basis for opinion

We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing.
Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the financial
statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Independence and other ethical responsibilities

We are independent of the Group and of the Bank in accordance with the By-Laws (on Professional Ethics, Conduct and Practice)
of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’ Code of
Ethics for Professional Accountants (including International Independence Standards) (“IESBA Code”), and we have fulfilled our
other ethical responsibilities in accordance with the By-Laws and the IESBA Code.
Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the Group and of the Bank for the current financial year. These matters were addressed in the context of our audit
of the financial statements of the Group and of the Bank as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided
in that context.
We have fulfilled the responsibilities described in the Auditors’ responsibilities for the audit of the financial statements section
of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to
respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures,
including the procedures performed to address the matters below, provide the basis of our audit opinion on the accompanying
financial statements.
133

TO THE MEMBERS OF KENANGA INVESTMENT BANK BERHAD (CONT’D.)
Key audit matters (cont’d.)
Risk area and rationale Our response
Expected credit losses of loans, advances and financing and investments not carried at fair value through profit or loss
As at 31 December 2022, loans, advances and Our audit procedures included the assessment of key controls over the
financing represent RM1,690.48 million or 28.35% origination, segmentation, ongoing internal credit quality assessments,
and RM1,703.51 million or 31.22% of the total recording and monitoring of the loans, advances and financing and
assets of the Group and of the Bank respectively, investments.
and the financial instruments carried at amortised
cost and fair value through other comprehensive We assessed the processes and effectiveness of key controls over the
income represent RM768.29 million or 12.89% and transfer criteria (for the three stages of credit exposures under MFRS 9 in
RM768.29 million or 14.08% of the total assets of accordance with credit quality), impairment measurement methodologies,
the Group and of the Bank respectively. governance for development, maintenance and validation of ECL
models, inputs, basis and assumptions used by the Group and the Bank
The Group and the Bank account for impairment in staging the credit exposures and calculating the ECL.
losses on loans, advances and financing, and
investments carried at amortised cost and fair For staging and identification of credit exposures with significant
value through other comprehensive income using deterioration in credit quality, we assessed and tested the reasonableness
a forward-looking expected credit loss (“ECL”) of the transfer criteria applied by the Group and the Bank for different
approach. types of credit exposures. We evaluated if the transfer criteria are
consistent with the Group’s and the Bank’s credit risk management
The measurement of ECL requires the application practices.
of significant judgement and involves increased
complexity which include the identification of For the measurement of ECL, we assessed and tested reasonableness
on-balance sheet and off-balance sheet credit of the Group’s and of the Bank’s ECL models, including model input,
exposures with significant deterioration in credit model design and model performance and management overlays for
quality, assumptions used in the ECL models (for significant portfolios. We challenged whether historical experience is
exposures assessed individually or collectively) such representative of current circumstances and of the recent losses incurred
as the expected future cash flows, forward looking in the portfolios and assessed the reasonableness of forward looking
macroeconomic factors and probability-weighted adjustments, macroeconomic factor analysis and probability-weighted
scenarios. multiple scenarios.
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Annual Report 2022

Expected credit losses of loans, advances and financing and investments not carried at fair value through profit or loss (cont’d.)
Refer to the summary of significant accounting We evaluated if changes in modeling approaches, parameters and
policies in Note 3.4(k)(ii), significant accounting assumptions are needed and if any changes made were appropriate.
judgements, estimates and assumptions in Note We also assessed, tested and monitored the sensitivity of the credit loss
4(iii) and the disclosures of loans, advances and provisions to changes in modelling assumptions.
financing in Note 9, investments other than those
carried at fair value through profit or loss in Note 7 With respect to individually assessed ECL which are mainly in relation
and disclosure of credit risk exposures in Note 50(a) to the impaired assets in Stage 3, we reviewed and tested a sample of
to the financial statements. loans, advances and financing and investments to evaluate the timely
identification by the Group and the Bank of exposures with significant
deterioration in credit quality or which have been impaired. For cases
where impairment has been identified, we assessed the Group’s and the
Bank’s assumptions on the expected future cash flows, including the
value of realisable collaterals based on available market information and
the multiple scenarios considered. We also challenged the assumptions
and compared estimates to external evidence where available.
We also assessed whether the financial statement disclosures are

adequate and appropriately reflect the Group’s and of the Bank’s
exposures to credit risk.
Impairment of goodwill
As at 31 December 2022, the goodwill recognised Our audit procedures included, among others, evaluating the assumptions
in the financial statements of the Group and of the and methodologies used by the Group and the Bank in performing the
Bank are RM241.03 million or 4.04% and RM252.91 impairment assessment.
million or 4.64% of the total assets of the Group and
of the Bank respectively. We tested the basis of preparing the cash flow forecasts taking into
account the back testing results on the accuracy of previous forecasts
Goodwill impairment testing of cash generating and the historical evidence supporting underlying assumptions.
units (“CGUs”) relies on estimates of value-in-
use (“VIU”) based on estimated future cash flows. We assessed the appropriateness of the other key assumptions, such
The Group and the Bank are required to annually as the growth rates used to extrapolate the cash flows and the discount
test the amount of goodwill for impairment. rates applied, by comparing against internal information, external
economic and market data.
These involve management judgement and are
based on assumptions that are affected by expected We assessed the sensitivity analysis performed by management on the
future market and economic conditions. key inputs to the impairment models, to understand the impact that
reasonable alternative assumptions would have on the overall carrying
Refer to summary of significant accounting policies amount of goodwill.
in Note 3.4(e)(i), significant accounting estimates
and judgement in Note 4(i) and the disclosure We also reviewed the adequacy of the Group’s and of the Bank’s
of intangible assets in Note 17 to the financial disclosures within the financial statements about those key assumptions
statements. to which the VIU is most sensitive.
135

Valuation of investments in unquoted equity instruments
As at 31 December 2022, the carrying values of the Our audit procedures include reviewing and evaluating management’s
Group’s and of the Bank’s investments in unquoted rationale for selecting and using the valuation models to assess if the use
securities classified as fair value through profit or of such models was appropriate.
loss and fair value through other comprehensive
income amounted to RM177.62 million and RM1.29 We assessed the accuracy and appropriateness of market observable
million and RM180.65 million and RM1.29 million inputs. Our audit procedures also included, among others, understanding
respectively. management’s controls related to the development and calibration of
any model used, challenged and assessed the assumptions used, taking
The valuation of unquoted investments involved into account historical evidence supporting underlying assumptions and
a range of judgement and estimates which are comparing internal information against external economic and market
based on current and future market and economic data.
conditions.
As the fair values are sensitive towards changes to some of the key inputs,
As the fair values of unquoted financial investments we also assessed the impact that reasonable alternative assumptions
cannot be obtained directly from active markets, would have on the overall carrying amounts.
they are determined using the market and income
approach, as well as the adjusted net asset method. We also reviewed the adequacy of the Group’s disclosures within the
Each approach has its own inputs and valuation financial statements about those key assumptions to which the fair value
techniques in determining the fair value. is most sensitive.
The Group uses a variety of valuation techniques

appropriate in the circumstances that include the
use of financial models. The inputs to these models
are taken from relevant observable inputs where
possible and minimises the use of unobservable
inputs. Such inputs include using prices and
other relevant information of comparable peer
companies, prices of recent transactions involving
similar instruments and adjusted net assets amount.
Judgements include considerations such as
selection of comparable peer companies, growth
rates and discount rates.
Refer to summary of accounting policies in Note

3.4(j), significant accounting judgements, estimates
and assumptions in Note 4(ii) and the disclosures of
fair value of financial instruments in Note 51 to the
financial statements.
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Annual Report 2022

Information other than the financial statements and auditors’ report thereon
The directors of the Bank are responsible for the other information. The other information comprises the information included in
the Directors’ Report and the Annual Report, but does not include the financial statements of the Group and of the Bank and our
auditors’ report thereon. The Annual Report is expected to be made available to us after the date of this auditors’ report.
Our opinion on the financial statements of the Group and of the Bank does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements of the Group and of the Bank, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the
Group and of the Bank or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard on the Directors’ Report.
Responsibilities of directors for the financial statements
The directors of the Bank are responsible for the preparation and fair presentation of the financial statements of the Group and
of the Bank that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial
Reporting Standards and the requirements of the Companies Act 2016 in Malaysia. The directors are also responsible for such
internal control as the directors determine is necessary to enable the preparation of financial statements of the Group and of the
Bank that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements of the Group and of the Bank, the directors are responsible for assessing the Group’s and
the Bank’s ability to continue as going concerns, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or the Bank or to cease operations, or have
no realistic alternative but to do so.
Auditors’ responsibility for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and of the Bank as
a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
approved standards on auditing in Malaysia and International Standards on Auditing will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing,
we exercise professional judgement and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements of the Group and of the Bank, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and of the Bank’s
internal control.
137

Auditors’ responsibility for the audit of the financial statements (cont’d.)
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the directors.
• Conclude on the appropriateness of directors’ use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Group’s or the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditors’ report to the related disclosures in the financial statements of the Group and of
the Bank or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group or the Bank to
cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements of the Group and of the Bank, including
the disclosures, and whether the financial statements of the Group and of the Bank represent the underlying transactions
and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities and business activities within
the Group to express an opinion on the financial statements of the Group. We are responsible for the direction, supervision
and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.

From the matters communicated with the directors, we determine those matters that were of most significance in the audit of
the financial statements of the Group and of the Bank for the current year and are therefore the key audit matters. We describe
these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other matters
This report is made solely to the members of the Bank, as a body, in accordance with Section 266 of the Companies Act 2016 in
Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.
Ernst & Young PLT. Ng Sue Ean

202006000003 (LLP0022760-LCA) & AF 0039 03276/07/2024 J
Chartered Accountants Chartered Accountant

6 March 2023
138
Annual Report 2022
SHARIAH COMMITTEE’S REPORT
In the name of Allah, the Most Beneficent, the Most Merciful.
In compliance with the letter of appointment, we are required to submit the following report:
We have reviewed the principles and the contracts relating to the transactions and applications introduced by the Skim Perbankan
Islam of Kenanga Investment Bank Berhad (“KIBB SPI”) during the financial year ended 31 December 2022. We have also
conducted our review to form an opinion as to whether KIBB SPI has complied with the Shariah principles and with the Shariah
rulings issued by the Shariah Advisory Council of Bank Negara Malaysia, as well as Shariah decisions made by us.
The management of KIBB is responsible for ensuring that KIBB SPI conducts its business in accordance with Shariah principles.
It is our responsibility to form an independent opinion, based on our review of the operations of KIBB SPI, and to report to you.
We have assessed the work carried out by Shariah review which included examining, on a test basis, each type of transaction,
the relevant documentation adopted by KIBB SPI.
We planned and performed our review so as to obtain all the information and explanations which we considered necessary in
order to provide us with sufficient evidence to give reasonable assurance that KIBB SPI has not violated the Shariah principles.
In our opinion:
(1). The contracts, transactions and dealings entered into by KIBB SPI during the financial year ended 31 December 2022 that
we have reviewed are in compliance with the Shariah principles;
(2). The allocation of profit and charging of losses relating to investment accounts conform to the basis that had been approved
by us in accordance with Shariah principles;
(3). Money which derived from the gharamah (penalty) shall be channel to the eligible beneficiaries;
(4). Relating to the financial year 2022, KIBB SPI has made a zakat payment on its business to two (2) states zakat authorities
and the zakat is computed using the profit and loss method. The beneficiaries of the zakat fund were Pusat Pungutan Zakat
Majlis Agama Islam Wilayah Persekutuan and Lembaga Zakat Selangor; and
(5). Nothing has come to the Shariah committee’s attention that causes the Shariah committee to believe that the operations,
business, affairs and activities of KIBB SPI involve any material Shariah non-compliances.
We, the members of the Shariah Committee of KIBB, do hereby confirm that the operations of KIBB SPI for the financial year
ended 31 December 2022 have been conducted in conformity with the Shariah principles.
Chairman of the Shariah Committee:
Dr. Ghazali Jaapar
Shariah Committee Member:
Dr. Mohammad Firdaus Mohammad Hatta
Dr. Fadillah Mansor
139
CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2022
2022 2021
Group Note RM’000 RM’000
Assets
Cash and bank balances 5 1,732,786 1,897,384
Financial assets at fair value through profit or loss 6 322,139 387,322
Debt instruments at fair value through other comprehensive income 7(a) 317,879 736,114
Equity instruments at fair value through other comprehensive income 7(a) 1,294 1,460
Debt instruments at amortised cost 7(b) 449,114 213,660
Derivative financial assets 8 85,217 81,453
Loans, advances and financing 9 1,690,475 1,775,413
Balances due from clients and brokers 10 427,638 334,465
Other assets 11 183,753 238,822
Statutory deposit with Bank Negara Malaysia 12 58,403 50,868
Tax recoverable 31,819 38,807
Investments in associates 14 99,683 87,171
Investment in joint ventures 15 26,569 31,969
Property, plant and equipment 16 156,221 163,475
Intangible assets 17 329,219 331,061
Right-of-use assets 18 24,964 18,473
Deferred tax assets 19 25,184 30,605
Total assets 5,962,357 6,418,522
Liabilities
Deposits from customers 20 3,161,078 3,137,278
Deposits and placements of banks and other financial institutions 21 415,359 652,862
Balances due to clients and brokers 22 732,709 665,968
Derivative financial liabilities 23 16,496 28,760
Other liabilities 24 367,258 573,699
Borrowings 25 206,000 244,700
Lease liabilities 26 25,324 18,829
Provision for taxation and zakat 15,245 41,396
Deferred tax liabilities 19 64 -
Total liabilities 4,939,533 5,363,492
Equity
Share capital 27 253,834 253,834
Treasury shares 27 (13,538) (13,064)
Reserves 28 776,984 809,559
Total equity attributable to equity holders of the Bank 1,017,280 1,050,329
Non-controlling Interests 5,544 4,701
Total Equity 1,022,824 1,055,030
Total liabilities and shareholders’ equity 5,962,357 6,418,522
Commitments and contingencies 42 4,298,476 4,534,285
The accompanying notes form an integral part of these financial statements.
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Annual Report 2022
STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2022
2022 2021
Bank Note RM’000 RM’000
Assets
Cash and bank balances 5 1,262,925 1,459,156
Financial assets at fair value through profit or loss 6 324,626 386,367
Debt instruments at fair value through other comprehensive income 7(a) 317,879 736,114
Equity instruments at fair value through other comprehensive income 7(a) 1,294 1,460
Debt instruments at amortised cost 7(b) 449,114 213,660
Derivative financial assets 8 85,217 81,453
Loans, advances and financing 9 1,703,510 1,749,615
Balances due from clients and brokers 10 427,477 334,370
Other assets 11 125,433 137,929
Statutory deposit with Bank Negara Malaysia 12 58,403 50,868
Tax recoverable 13,850 27,402
Investments in subsidiaries 13 60,812 60,812
Investment in an associate 14 68,435 68,435
Investment in joint ventures 15 41,550 40,000
Property, plant and equipment 16 151,029 159,624
Intangible assets 17 331,132 331,986
Right-of-use assets 18 20,540 15,204
Deferred tax assets 19 12,966 15,219
Total assets 5,456,192 5,869,674
Liabilities
Deposits from customers 20 3,299,305 3,250,600
Deposits and placements of banks and other financial institutions 21 415,359 652,862
Balances due to clients and brokers 22 262,976 265,296
Derivative financial liabilities 23 16,496 28,760
Other liabilities 24 248,727 384,161
Borrowings 25 188,500 204,700
Lease liabilities 26 20,757 15,473
Provision for taxation and zakat 291 26,472
Total liabilities 4,452,411 4,828,324
Equity
Share capital 27 253,834 253,834
Treasury shares 27 (13,538) (13,064)
Reserves 28 763,485 800,580
Total equity 1,003,781 1,041,350
Total liabilities and shareholders’ equity 5,456,192 5,869,674
Commitments and contingencies 42 4,412,160 4,637,316
141
STATEMENTS OF PROFIT OR LOSS AND

OTHER COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022
Group Bank
2022 2021 2022 2021
Note RM’000 RM’000 RM’000 RM’000
Operating revenue 29 723,086 891,491 477,060 709,706
Interest income 30 222,539 210,372 213,364 204,444

Interest expense 31 (112,813) (99,561) (127,531) (110,249)
Net interest income 109,726 110,811 85,833 94,195
Net income from Islamic banking operations 52(b) 15,201 16,828 15,201 16,828
Other operating income 32 485,348 656,881 298,247 492,654
Net income 610,275 784,520 399,281 603,677
Other operating expenses 33 (533,173) (648,490) (343,661) (484,741)
Operating profit 77,102 136,030 55,620 118,936
Credit loss (expense)/reversal 34 (3,923) (1,900) 2,551 (1,935)
Bad debts recovered 35 119 513 119 543
Reversal of impairment loss on investment in an
associate - - - 12,200
Impairment loss on investment in a subsidiary 13 - - - (9,323)
73,298 134,643 58,290 120,421
Share of results of associates and joint ventures 852 13,593 - -
Profit before taxation and zakat 74,150 148,236 58,290 120,421
Taxation and zakat 40 (18,796) (29,421) (3,371) (25,605)
Profit for the financial year 55,354 118,815 54,919 94,816
Other comprehensive income/(loss):

Items that will not be reclassified subsequently to profit
or loss:
Fair value loss on equity instruments at fair value through
other comprehensive income (“FVOCI”) (167) (529) (167) (529)
Share of other comprehensive income in associates 57 6,103 - -
Income tax relating to fair value loss on equity
instruments 19 40 127 40 127
Items that will be reclassified subsequently to profit or

loss:
Foreign exchange differences on consolidation 4,871 2,648 - -
Other comprehensive income/(loss) carried forward: 4,801 8,349 (127) (402)
142
Annual Report 2022
STATEMENTS OF PROFIT OR LOSS AND

OTHER COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 (CONT’D.)
Group Bank
2022 2021 2022 2021
Note RM’000 RM’000 RM’000 RM’000
Other comprehensive income/(loss) brought forward: 4,801 8,349 (127) (402)

Fair value loss on debt instruments at FVOCI (9,242) (18,614) (9,242) (18,614)
Income tax relating to fair value loss on debt instruments 19 2,313 4,394 2,313 4,394
Other comprehensive loss for the financial year, net of tax (2,128) (5,871) (7,056) (14,622)
Total comprehensive income
for the financial year, net of tax 53,226 112,944 47,863 80,194
Profit for the financial year attributable to:

Equity holders of the Bank 54,511 118,390 54,919 94,816
Non-controlling interests 843 425 - -
55,354 118,815 54,919 94,816
Total comprehensive income attributable to:

Equity holders of the Bank 52,383 112,519 47,863 80,194
Non-controlling interests 843 425 - -
53,226 112,944 47,863 80,194
Earnings per share attributable to equity holders of

the Bank:
Basic (sen) 41 7.50 16.29
Diluted (sen) 41 7.46 15.94
143
Non-distributable
144
Total
We Are
Kenanga
Ordinary Capital Fair value Regulatory Exchange ESS Treasury Retained Non- attributable
shares reserve reserve reserve reserve reserve shares profits controlling to equity
(Note 27) (Note 28) (Note 28) (Note 28) (Note 28) (Note 28) (Note 27) (Note 28) Interest holders
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2022 253,834 88,938 6,590 18,921 19,204 2,809 (13,064) 673,097 4,701 1,055,030
Net profit for the

Our Leaders
Message From
financial year - - - - - - - 54,511 843 55,354

Share of other
comprehensive
(loss)/income of
associates - - (10,456) - - - - 10,513 - 57
Other
Approach
comprehensive
Our Sustainability
(loss)/income - - (7,056) - 4,871 - - - - (2,185)

Total
comprehensive
(loss)/income for
the financial year - - (17,512) - 4,871 - - 65,024 843 53,226
Share-based
Governed
payment under
How We Are
ESS scheme - - - - - 407 - - - 407

Transfer of shares
pursuant to
exercise of ESS - - - - - - 15,623 (8,305) - 7,318
Buy-back of shares - - - - - - (16,097) - - (16,097)
Financial
Statements
Transfer from
regulatory
reserve - - - (1,729) - - - 1,729 - -
Transfer to retained
profits - - - - - (1,422) - 1,422 - -
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Dividend paid
Information
Shareholders’
(Note 45) - - - - - - - (77,060) - (77,060)

At 31 December
2022 253,834 88,938 (10,922) 17,192 24,075 1,794 (13,538) 655,907 5,544 1,022,824
Additional
Information
Non-distributable
Total
Ordinary Capital Fair value Regulatory Exchange ESS Treasury Retained Non- attributable
shares reserve reserve reserve reserve reserve shares profits controlling to equity
(Note 27) (Note 28) (Note 28) (Note 28) (Note 28) (Note 28) (Note 27) (Note 28) Interest holders
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2021 246,249 88,938 15,916 18,661 16,556 6,144 (10,458) 617,832 5,103 1,004,941
Net profit for the

financial year - - - - - - - 118,390 425 118,815
Share of other
comprehensive
income of
associates - - 5,296 - - - - 807 - 6,103
Other
comprehensive
(loss)/income - - (14,622) - 2,648 - - - - (11,974)
Total
comprehensive
(loss)/income for
the financial year - - (9,326) - 2,648 - - 119,197 425 112,944
Share-based
payment under
ESS scheme - - - - - (678) - - - (678)
Issue of shares
pursuant to
exercise of ESS
(Note 27) 7,585 - - - - - - - - 7,585
Transfer of shares
pursuant to
exercise of ESS - - - - - - 12,317 (2,943) - 9,374
Buy-back of shares - - - - - - (14,923) - - (14,923)
Transfer to
regulatory reserve - - - 260 - - - (260) - -
Transfer to retained
profits - - - - - (2,657) - 2,657 - -
Dividend paid
(Note 45) - - - - - - - (64,213) - (64,213)
Adjustment to
non-controlling
interest - - - - - - - 827 (827) -
At 31 December
2021 253,834 88,938 6,590 18,921 19,204 2,809 (13,064) 673,097 4,701 1,055,030
145
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Annual Report 2022

Non-distributable
146
Ordinary Regulatory Capital Fair value ESS Treasury Retained
We Are
Kenanga
shares reserve reserve reserve reserve shares profits Total

(Note 27) (Note 28) (Note 28) (Note 28) (Note 28) (Note 27) (Note 28) equity
Bank RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2022 253,834 18,921 153,863 634 2,809 (13,064) 624,353 1,041,350
Net profit for the financial year - - - - - - 54,919 54,919

Our Leaders
Other comprehensive loss - - - (7,056) - - - (7,056)

Message From
Total comprehensive (loss)/income

for the financial year - - - (7,056) - - 54,919 47,863
Share-based payment under ESS scheme - - - - 407 - - 407
Transfer of shares pursuant to exercise of ESS - - - - - 15,623 (8,305) 7,318
Buy-back of shares - - - - - (16,097) - (16,097)
Transfer from regulatory reserve - (1,729) - - - - 1,729 -
Approach
Transfer to retained profits - - - - (1,422) - 1,422 -

Our Sustainability
Dividend paid (Note 45) - - - - - - (77,060) (77,060)

At 31 December 2022 253,834 17,192 153,863 (6,422) 1,794 (13,538) 597,058 1,003,781
At 1 January 2021 246,249 18,661 153,863 15,256 6,144 (10,458) 594,296 1,024,011
Net profit for the financial year - - - - - - 94,816 94,816

Governed
How We Are
STATEMENT OF CHANGES IN EQUITY
Other comprehensive loss - - - (14,622) - - - (14,622)

Total comprehensive (loss)/income
for the financial year - - - (14,622) - - 94,816 80,194
Share-based payment under ESS scheme - - - - (678) - - (678)
Issue of shares pursuant to exercise of ESS
Financial
(Note 27) 7,585 - - - - - - 7,585

Statements
Transfer of shares pursuant to exercise of ESS - - - - - 12,317 (2,943) 9,374

Buy-back of shares - - - - - (14,923) - (14,923)
Transfer to regulatory reserve - 260 - - - - (260) -
Transfer to retained profits - - - - (2,657) - 2,657 -
Dividend paid (Note 45) - - - - - - (64,213) (64,213)
Information
Shareholders’
At 31 December 2021 253,834 18,921 153,863 634 2,809 (13,064) 624,353 1,041,350
Additional
Information

Annual Report 2022
STATEMENTS OF CASH FLOWS

Group Bank
2022 2021 2022 2021
Note RM’000 RM’000 RM’000 RM’000
Cash flows from operating activities

Adjustments for:
Depreciation of property, plant and equipment 33 11,472 11,714 10,487 10,829
Amortisation of intangible assets
- software licence and client relationships 33 6,462 5,624 5,508 4,642
Amortisation of right-of-use assets 33 8,039 8,465 6,660 7,397
Lease interest expenses 31 894 965 743 905
ESS expenses 33 326 1,022 326 1,022
Credit loss expense/(reversal) 34 3,923 1,900 (2,551) 1,935
Impairment loss on investment in a subsidiary 13 - - - 9,323
Property, plant and equipment written off 33 911 231 902 -
Computer software work-in-progress written off 33 608 - 608 -
Fixed assets expensed off 2,971 - 1,708 -
Bad debts recovered 35 (119) (513) (119) (543)
Reversal of impairment on investment in an associate - - - (12,200)
Gain on disposal of a subsidiary 32(c) - (4,729) - -
Gain on disposal of an associate 14(a) (9,117) - - -
Gross dividend income from investments 32(b) (1,527) (3,654) (60,492) (18,547)
Gain on disposal of property, plant and equipment 32(c) (111) (60) (93) (57)
Net (gain)/loss from sale of financial assets at fair value
through profit or loss and derivatives (23,675) 46,692 (23,667) 46,732
Net gain from sale of financial instruments at FVOCI (25) (1,580) (25) (1,580)
Share of results of associates and joint ventures (852) (13,593) - -
Unrealised loss/(gain) on revaluation of financial assets
at fair value through profit or loss and derivatives 32(b) 8,954 (148,011) 10,454 (150,784)
Operating gain before working capital changes 83,284 52,709 8,739 19,495
Decrease/(increase) in operating assets:

Loans, advances and financing 87,392 91,780 50,178 105,302
Other assets 48,680 (49,740) 10,962 (42,492)
Statutory deposit with Bank Negara Malaysia (7,535) 7,530 (7,535) 7,530
Balances due from clients and brokers (93,044) 210,560 (92,978) 210,655
Trust monies and deposits 5 (74,314) (67,444) 33,914 493
(Decrease)/increase in operating liabilities:

Other liabilities (206,149) 126,427 (135,360) 23,504
Balances due to clients and brokers 66,741 (54,697) (2,320) (139,895)
Deposits from customers 23,800 184,893 48,705 207,757
Deposits and placements of banks and other
financial institutions (237,503) (413,223) (237,503) (413,223)
Cash (used in)/generated from operations (308,648) 88,795 (323,198) (20,874)
Taxation and zakat paid (30,200) (42,807) (11,394) (33,951)
Rental/lease payment (interest) 26 (894) (1,064) (743) (1,006)
Net cash (used in)/generated from operating activities (339,742) 44,924 (335,335) (55,831)
147
STATEMENTS OF CASH FLOWS

Group Bank
2022 2021 2022 2021
Note RM’000 RM’000 RM’000 RM’000
Cash flows from investing activities

Sale proceeds from disposal of an associate,
net of cash 14(a) 9,117 - - -
Acquisition of subsidiaries net of cash acquired - (597) - -
Sale proceeds from disposal of a subsidiary, net of
cash - 5,372 - -
Dividends received 32(b) 1,527 3,654 60,492 18,547
Purchase of property, plant and equipment 16 (5,175) (12,230) (2,836) (11,556)
Purchase of intangible assets 17 (8,792) (11,901) (7,646) (10,494)
Proceeds from disposal of property, plant and
equipment and intangible assets 781 60 763 57
Capital injection in a joint venture 15 (1,550) - (1,550) -
Net sale of securities 237,489 158,956 232,539 159,036
Net cash generated from investing activities 233,397 143,314 281,762 155,590
Cash flows from financing activities

Dividend paid 45 (77,060) (64,213) (77,060) (64,213)
Rental/lease payments (principal) 26 (8,028) (8,261) (6,705) (7,185)
Net (repayment)/drawdown of borrowings (38,700) 69,300 (16,200) 52,300
Share buy-back (16,446) (14,574) (16,446) (14,574)
Proceeds from exercise of ESS 7,667 14,916 7,667 14,916
Net cash used in financing activities (132,567) (2,832) (108,744) (18,756)
Net (decrease)/increase in cash and cash

equivalents (238,912) 185,406 (162,317) 81,003
Cash and cash equivalents at beginning of financial
year 1,469,803 1,284,397 1,337,127 1,256,124
Cash and cash equivalents at end of financial year 5 1,230,891 1,469,803 1,174,810 1,337,127
Cash and cash equivalents comprise of the followings

(Note 5):
Cash and balances with banks 1,700,779 1,886,965 1,240,970 1,459,156

Deposits and placements with banks and other
financial institutions 32,007 10,419 21,955 -
Less: Monies and short-term deposits held in trust on
behalf of dealers’ representatives (88,115) (122,029) (88,115) (122,029)
Less: Segregated funds from customers (413,780) (305,552) - -
1,230,891 1,469,803 1,174,810 1,337,127
148
Annual Report 2022
NOTES TO THE FINANCIAL STATEMENTS

31 DECEMBER 2022
1. CORPORATE INFORMATION
The Bank is principally engaged in the investment banking business, provision of stockbroking and related financial services.
The Bank is a public limited liability company incorporated and domiciled in Malaysia and is listed on the Main Market of
Bursa Malaysia Securities Berhad. The registered office of the Bank is located at Level 17, Kenanga Tower, 237, Jalan Tun
Razak, 50400 Kuala Lumpur, Wilayah Persekutuan.
The principal activities of the subsidiaries are described in Note 13. There have been no significant changes in the nature of
the principal activities during the financial year.
The financial statements of the Bank have been approved and authorised for issue in accordance with a resolution of the
Board of Directors on 6 March 2023.
2. CHANGES IN ACCOUNTING POLICIES AND REGULATORY REQUIREMENT
2.1 New and amended Malaysian Financial Reporting Standards (“MFRSs”) adopted
The accounting policies adopted are consistent with those of the previous financial year except for the adoption
of the following new and amended MFRSs, which became effective for the Group and the Bank during the current
financial year:
- Property, Plant and Equipment - Proceeds before Intended Use (Amendments to MFRS 116 Property, Plant and
Equipment)
- Onerous Contracts - Cost of Fulfilling a Contract (Amendments to MFRS 137 Provisions, Contingent Liabilities
and Contingent Assets)
- Reference to the Conceptual Framework (Amendments to MFRS 3 Business Combinations)
- Annual improvements to MFRS Standards 2018-2020
The adoption of the new and amended MFRSs did not have any significant impact on the financial position or
performance of the Group and of the Bank.
2.2 Measures to assist individuals, SMEs and corporates affected by COVID-19 announced by BNM
During the financial year ended 31 December 2021, BNM had announced the extension of regulatory measures to
facilitate loan/financing repayment assistance to borrowers/customers affected by the COVID-19 pandemic in line
with the Government economic stimulus packages.
Six-month moratorium under Perlindungan Rakyat dan Pemulihan Ekonomi was announced on 28 June 2021.
The moratorium applies to ringgit and foreign currency denominated loans/financing approved on or before 30 June
2021, not in arrears exceeding 90 days and customers must not be adjudicated bankrupts or under bankruptcy
proceedings. In the absence of other factors relevant to the assessment, the moratorium does not automatically result
in stage transfer under MFRS 9. The financial impact of the moratorium is reflected at the interest/profit income of the
Group and of the Bank.
149

31 DECEMBER 2022
2. CHANGES IN ACCOUNTING POLICIES AND REGULATORY REQUIREMENT (CONT’D.)
2.2 Measures to assist individuals, SMEs and corporates affected by COVID-19 announced by BNM (cont’d.)
The economic sectors that are most affected by COVID-19 and their exposure as at 2022 & 2021 are disclosed as
below:
Loans, advances and financing

Net of impairment Undrawn
(on-balance sheet) (off-balance sheet) Total exposures
2022 2021 2022 2021 2022 2021
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Sectors
Oil and gas 97,900 94,483 17,684 27,599 115,584 122,082
Hotels and tourism 12,464 5,239 - 30,000 12,464 35,239
Retail food and
non-food 57,155 97,563 31,497 31,284 88,652 128,847
Construction 21,773 3,835 11,510 19,085 33,283 22,920
Property development 156,410 190,716 37,017 18,582 193,427 209,298
345,702 391,836 97,708 126,550 443,410 518,386

Net of impairment Undrawn
(on-balance sheet) (off-balance sheet) Total exposures
2022 2021 2022 2021 2022 2021
Bank RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Sectors
Oil and gas 97,900 94,483 17,684 27,599 115,584 122,082
Hotels and tourism - - - 30,000 - 30,000
Retail food and
non-food 57,155 88,457 31,497 31,284 88,652 119,741
Construction 21,773 14,166 41,510 19,085 63,283 33,251
Property development 156,410 190,716 37,017 18,582 193,427 209,298
333,238 387,822 127,708 126,550 460,946 514,372
150
Annual Report 2022

31 DECEMBER 2022
2. CHANGES IN ACCOUNTING POLICIES AND REGULATORY REQUIREMENT (CONT’D.)
2.2 Measures to assist individuals, SMEs and corporates affected by COVID-19 announced by BNM (cont’d.)
Financial investments -
bonds and sukuk
(on-balance sheet)
2022 2021
Group and Bank RM’000 RM’000
Sectors
Oil and gas 47,145 69,345
Hotels and tourism - 6,451
Property development - 48,029
47,145 123,825
2.3 Standards issued but not yet effective
The following are new MFRSs, amended MFRSs and Interpretation Committee’s (“IC”) Interpretation issued by the
Malaysian Accounting Standards Board (“MASB”) that will be effective for the Group and the Bank in future years.
The Group and the Bank intend to adopt the relevant standards when they become effective.
Effective for
annual periods
beginning on
Description or after
MFRS 17: Insurance Contracts 1 January 2023

Amendments to MFRS 17: Insurance Contracts 1 January 2023
Classification of Liabilities as Current or Non-current
(Amendments to MFRS 101 Presentation of Financial Statements) 1 January 2023
Disclosure of accounting policies
Definition of accounting estimates
(Amendments to MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors) 1 January 2023
Deferred tax related to assets and liabilities arising from a single transaction
(Amendments to MFRS 112 Income Taxes) 1 January 2023
Extension of the Temporary Exemption from Applying MFRS 9
(Amendments to MFRS 4 Insurance Contracts) 1 January 2023
Initial application of MFRS 17 and MFRS 9 - Comparative Information
(Amendments to MFRS 17 Insurance Contracts) 1 January 2023
Lease Liability in a Sale and Leaseback (Amendments to MFRS 16 Leases) 1 January 2024
Non-current Liabilities with Covenants
Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor To be announced
and its Associate or Joint Venture by MASB
The directors expect that the adoption of the above standards will have no material impact on the financial statements
in the period of initial application.
151

31 DECEMBER 2022
3. ACCOUNTING POLICIES
3.1 Basis of preparation
The financial statements of the Group and of the Bank have been prepared on a historical cost basis unless otherwise
indicated.
3.2 Statement of compliance
The financial statements of the Group and of the Bank have been prepared in accordance with Malaysian Financial
Reporting Standards (“MFRSs”), International Financial Reporting Standards (“IFRSs”), and the requirements of the
Companies Act 2016 in Malaysia.
3.3 Functional and presentation currency
The financial statements are presented in Ringgit Malaysia (“RM”), which is also the Bank’s functional currency and all
values are rounded to the nearest thousand (“RM’000”), unless otherwise stated.
3.4 Summary of significant accounting policies
(a) Basis of consolidation
The consolidated financial statements comprise of the financial statements of the Bank and its subsidiaries as at
the reporting date.
The financial statements of the subsidiaries used in the preparation of the consolidated financial statements
are prepared for the same reporting date as the Bank and consistent accounting policies are applied for like
transactions and events in similar circumstances.
The Bank controls an investee if and only if the Bank has all the following:
(i) Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of
the investee);
(ii) Exposure, or rights, to variable returns from its investment with the investee; and
(iii) The ability to use its power over the investee to affect its returns.
152
Annual Report 2022

31 DECEMBER 2022
3. ACCOUNTING POLICIES (CONT’D.)
3.4 Summary of significant accounting policies (cont’d.)
(a) Basis of consolidation (cont’d.)
When the Bank has less than a majority of the voting rights of an investee, the Bank considers the following in
assessing whether or not the Bank’s voting rights in an investee are sufficient to give it power over the investee:
(i) The size of the Bank’s holding of voting rights relative to the size and dispersion of holdings of the other
vote holders;
(ii) Potential voting rights held by the Bank, other vote holders or other parties;
(iii) Rights arising from other contractual arrangements; and
(iv) Any additional facts and circumstances that indicate that the Bank has, or does not have, the current ability
to direct the relevant activities at the time that decisions need to be made, including voting patterns at
previous shareholders’ meetings.
Subsidiaries are fully consolidated from the date of acquisition, being the date of which the Group obtains
control, and continue to be consolidated until the date when such control ceases. All intra-group balances,
income and expenses and unrealised gains and losses resulting from intra-group transactions are eliminated
in full.
Losses within a subsidiary are attributed to the non-controlling interests even if that results in a deficit balance.
Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over
the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and
the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries.
The resulting difference is recognised directly in equity and attributed to owners of the Bank.
When the Group loses control of a subsidiary, a gain or loss is calculated as the difference between:
(i) The aggregate of the fair value of the consideration received and the fair value of any retained interest; and
(ii) The previous carrying amount of the assets and liabilities of the subsidiary and any differences is
recognised in profit or loss. The subsidiary’s cumulative gain and loss which have been recognised in other
comprehensive income and accumulated in equity are reclassified to profit or loss or where applicable,
transferred directly to retained earnings. The fair value of any investment retained in the former subsidiary
at the date control is lost is regarded as the cost on initial recognition of an investment in an associate or a
joint venture.
Acquisitions of subsidiaries are accounted for using the acquisition method of accounting.
153

31 DECEMBER 2022
(a) Basis of consolidation (cont’d.)
The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition
date fair value and the amount of any non-controlling interests in the acquiree. The Group elects on a transaction-
by-transaction basis whether to measure the non-controlling interest in the acquiree either at fair value or at the
proportionate share of the acquiree’s identifiable net assets. Transaction costs incurred are expensed to income
statement and disclosed under administrative expenses.
Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition
date. Subsequent changes in fair value of the contingent consideration which is deemed to be an asset or liability
will be recognised in accordance with MFRS 9 either in profit or loss or as a change to other comprehensive
income. If the contingent consideration is classified as equity, it will not be remeasured. Subsequent settlement
is accounted for within equity. In instances where the contingent consideration does not fall within the scope of
MFRS 9, it is measured in accordance with the appropriate MFRS.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate
classification and designation in accordance with the contractual terms, economic circumstances and pertinent
conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by
the acquiree.
If the business combination is achieved in stages, the fair value of the acquirer’s previously held equity interest in
the acquiree on previous acquisition date is remeasured to fair value at the later stage’s acquisition date through
profit or loss.
Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the
amount recognised for non-controlling interests over the net assets of the subsidiary acquired. The accounting
policy for goodwill is set out in Note 3.4(e)(i).
For business combinations involving entities or businesses under common control, the Group applies the merger
(or common control) accounting, whereby no assets or liabilities are restated to their fair values. Instead, the
acquirer incorporates predecessor carrying values. No new goodwill arises in merger accounting.
The acquirer incorporates the acquired entity’s results and balance sheet prospectively from the date on which
the business combination between entities under common control occurred. Prior financial period’s numbers
are restated to reflect as if these entities have been under common control since the beginning of the earliest
financial period presented in the financial statements.
Merger accounting may lead to a difference between the cost of the transaction and the carrying value of the net
assets. The difference is recorded in reorganisation reserve.
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(b) Subsidiaries
In the Bank’s separate financial statements, investments in subsidiaries are accounted for at cost less impairment
losses. On disposal of such investments, the difference between net disposal proceeds and their carrying
amounts is included in profit or loss.
(c) Investment in associates
An associate is an entity in which the Group has significant influence. Significant influence is the power to
participate in the financial and operating policy decisions of the investee but is not control or joint control over
those policies.
On acquisition of an investment in associate, any excess of the investment cost over the Group’s share of the
net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill and included in the
carrying amount of the investment. Any excess of the Group’s share of the net fair value of the identifiable assets
and liabilities of the investee over the cost of investment is excluded from the carrying amount of the investment
and is instead included as income in the determination of the Group’s share of the associate’s profit or loss for
the period in which the investment is acquired.
An associate is equity accounted from the date on which the investee becomes an associate.
Under the equity method, the investment in an associate is initially recognised at cost and the carrying amount is
increased or decreased to recognise the Group’s share of profit or loss and other comprehensive income of the
associate after the date of acquisition. When the Group’s share of losses in an associate equals or exceeds its
interest in the associate, the Group does not recognise further losses, unless it has incurred legal or constructive
obligations or made payments on behalf of the associate.
Goodwill relating to the associate is included in the carrying amount of the investment and is neither amortised
nor individually tested for impairment.
Profits and losses resulting from upstream and downstream transactions between the Group and its associate is
recognised in the Group’s financial statements only to the extent of unrelated investors’ interest in the associate.
Unrealised losses are eliminated unless the transaction provides evidence of an impairment of the asset
transferred.
The financial statements of the associate are prepared as of the same reporting date as the Bank. Where
necessary, adjustments are made to bring the accounting policies in line with those of the Group.
After application of the equity method, the Group determines whether it is necessary to recognise any additional
impairment loss with respect to its net investment in the associate. When necessary, the entire carrying amount
of the investment is tested for impairment in accordance with MFRS 136 Impairment of Assets as a single asset,
by comparing its recoverable amount (higher of value-in-use and fair value less costs to sell) with its carrying
amount. Any impairment loss is recognised in profit or loss. Reversal of an impairment loss is recognised to the
extent that the recoverable amount of the investment subsequently increases.
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(c) Investment in associates (cont’d.)
Upon loss of significant influence over the associate, the Group measures and recognises any retained investment
at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence
and the fair value of the retained investment and proceeds from disposal is recognised in profit or loss.
In the Bank’s separate financial statements, investment in associate is accounted for at cost less accumulated
impairment losses. On disposal of such investment, the difference between net disposal proceeds and their
carrying amounts is included in profit or loss.
(d) Investment in jointly controlled entity
Jointly controlled entities are entities over which there is contractually agreed sharing of control by the Group
with one or more parties where the strategic financial and operating decisions relating to the entities require
unanimous consent of the parties sharing control.
The Group’s interest in jointly controlled entities is accounted for in the financial statements by the equity method
of accounting. Equity accounting involves recognising the Group’s share of the post-acquisition results of jointly
controlled entities in profit or loss and its share of post-acquisition changes of the investee’s reserves in other
comprehensive income. The cumulative post-acquisition changes are adjusted against the cost of the investment
and include goodwill on acquisition (net of accumulated impairment loss).
The Group recognises the portion of gains or losses on the sale of assets by the Group to the joint venture that
is attributable to the other venturers. The Group does not recognise its share of profits or losses from the joint
venture that result from the purchase of assets by the Group from the joint venture until it resells the assets to an
independent party. However, a loss on the transaction is recognised immediately if the loss provides evidence of
a reduction in the net realisable value of current assets or an impairment loss.
Where necessary, adjustments have been made to the financial statements of jointly controlled entities to ensure
consistency of accounting policies with those of the Group.
(e) Goodwill and intangible assets
(i) Goodwill
Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and
the amount recognised for non-controlling interest over the net identifiable assets acquired and liabilities
assumed. If this consideration is lower than the fair value of the net assets of the subsidiary acquired,
the difference is recognised in profit or loss.
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(e) Goodwill and intangible assets (cont’d.)
(i) Goodwill (cont’d.)
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the
purpose of impairment testing, goodwill acquired in a business combination is, from the date of acquisition,
allocated to each of the Group’s cash-generating units that are expected to benefit from the combination,
irrespective of whether other assets or liabilities of the acquiree are assigned to those units. Where the
recoverable amount of the cash-generating unit is less than the carrying amount of the cash-generating
unit, an impairment loss is recognised in profit or loss. Impairment losses recognised for goodwill are not
reversed in subsequent periods. The policy for the recognition and measurement of impairment losses is in
accordance with Note 3.4(l).
Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed of,
the goodwill associated with the operation disposed of is included in the carrying amount of the operation
when determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is
measured based on the relative values of the operation disposed of and the portion of the cash-generating
unit retained.
(ii) Other intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible
assets acquired in a business combination is their fair values as at the date of acquisition. Following
initial recognition, intangible assets are carried at cost less accumulated amortisation and accumulated
impairment losses, if any. Internally generated intangible assets, excluding capitalised development costs,
are not capitalised and expenditure is reflected in profit or loss in the financial year in which the expenditure
is incurred.
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite lives are amortised over their economic useful lives and assessed for impairment
whenever there is an indication that the intangible asset may be impaired. The amortisation period and
the amortisation method for an intangible asset with a finite useful life is reviewed at least at the end of
each reporting period. Changes in the expected useful life or the expected pattern of consumption of
future economic benefits embedded in the asset are accounted for by changing the amortisation period or
method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on
intangible assets with finite lives is recognised in profit or loss in the expense category consistent with the
function of the intangible assets.
Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually,
either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually
to determine whether the indefinite life continues to be supportable. If not, the change in the useful life from
indefinite to finite is made on a prospective basis.
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(e) Goodwill and intangible assets (cont’d.)
(ii) Other intangible assets (cont’d.)
Gains or losses arising from derecognition of an intangible asset are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are recognised in profit or loss when
the asset is derecognised.
Intangible assets are amortised over their finite useful lives at the following annual rate:
Computer software and licence 14.28% to 33.33%
(f) Financial instruments – initial recognition
Financial assets and liabilities, with the exception of loans and advances to customers and balances due to
clients, are initially recognised on the trade date, i.e., the date that the Group and the Bank become a party to the
contractual provisions of the instrument. This includes regular way trades: purchases or sales of financial assets
that require delivery of assets within the time frame generally established by regulation or convention in the
market place. Loans and advances to customers are recognised when funds are transferred to the customers’
accounts. The Bank recognises balances due to clients when settlement has yet to be made on outstanding
contracts which have been entered into on behalf of the clients.
(i) Initial recognition and subsequent measurement
The classification of financial instruments at initial recognition depends on their contractual terms and the
business model for managing the instruments, as described in Note 3.4(g)(i). Financial instruments are
initially measured at their fair value (as defined in Note 3.4(j)), except in the case of financial assets and
financial liabilities recorded at fair value through profit or loss (“FVTPL”), transaction costs are added to,
or subtracted from this amount. Trade receivables are measured at the transaction price. When the fair
value of financial instruments at initial recognition differs from the transaction price, the Group and the Bank
account for the Day 1 profit or loss, as described below.
(ii) Day 1 profit or loss
When the transaction price of the instrument differs from the fair value at origination and the fair value is
based on a valuation technique using only inputs observable in market transactions, the Group and the
Bank recognise the difference between the transaction price and fair value in net trading income. In those
cases where fair value is based on models for which some of the inputs are not observable, the difference
between the transaction price and the fair value is deferred and is only recognised in profit or loss when the
inputs become observable, or when the instrument is derecognised.
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(f) Financial instruments – initial recognition (cont’d.)
(iii) Measurement categories of financial assets and liabilities
The Group and the Bank classify all of their financial assets based on the business model for managing the
assets and the asset’s contractual terms, measured at either:
(a) Amortised Cost, as explained in Note 3.4(g)(i);

(b) FVOCI, as explained in Notes 3.4(g)(v) and 3.4(g)(vi); or
(c) FVTPL, as explained in Notes 3.4(g)(iv) and 3.4 (g)(viii).
The Group and the Bank classify and measure their derivative and trading portfolio at FVTPL as explained
in Notes 3.4(g)(ii) and 3.4(g)(iv). The Group and the Bank may designate financial instruments at FVTPL,
if doing so eliminates or significantly reduces measurement or recognition inconsistencies, as explained in
Note 3.4(g)(viii).
Financial liabilities, other than loan commitments and financial guarantees, are measured at amortised
cost or at FVTPL when they are held for trading and derivative instruments or the fair value designation is
applied, as explained in Note 3.4(g)(viii).
Financial liabilities are recognised in the statements of financial position when, and only when, the Group
and the Bank become a party to the contractual provisions of the financial instrument. Financial liabilities
are classified as either financial liabilities at fair value through profit or loss or other financial liabilities.
(g) Financial assets and liabilities
(i) Due from banks, loans and advances to customers, financial investments at amortised cost
The Group and the Bank measure amounts due from banks, loans and advances to customers and other
financial investments at amortised cost if both of the following conditions are met:
• The financial asset is held within a business model with the objective to hold financial assets in order
to collect contractual cash flows; and
• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest (“SPPI”) on the principal amount outstanding.
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(g) Financial assets and liabilities (cont’d.)
(i) Due from banks, loans and advances to customers, financial investments at amortised cost (cont’d.)
The details of these conditions are outlined below.
(1) Business model assessment
The Group and the Bank determine their business model at the level that best reflects how they
manage groups of financial assets to achieve their business objective.
The Group’s and the Bank’s business model is not assessed on an instrument-by-instrument basis,
but at a higher level of aggregated portfolios and is based on observable factors such as:
• How the performance of the business model and the financial assets held within that business
model are evaluated and reported to the key entity’s management personnel;
• The risks that affect the performance of the business model (and the financial assets held within
that business model) and, in particular, the way those risks are managed;
• How managers of the business are compensated (for example, whether the compensation is
based on the fair value of the assets managed or on the contractual cash flows collected); and
• The expected frequency, value and timing of sales are also important aspects of the Group’s
and of the Bank’s assessment.
The business model assessment is based on reasonably expected scenarios without taking ‘worst
case’ or ‘stress case’ scenarios into account. If cash flows after initial recognition are realised in a
way that is different from the Group’s and the Bank’s original expectations, the Group and the Bank
do not change the classification of the remaining financial assets held in that business model, but
incorporates such information when assessing newly originated or newly purchased financial assets
going forward, unless it has been determined that there has been a change in the original business
model.
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(i) Due from banks, loans and advances to customers, financial investments at amortised cost (cont’d.)
(2) The SPPI test
The Group and the Bank assess the contractual terms of financial assets to identify whether they
meet the SPPI test.
‘Principal’ for the purpose of this test is defined as the fair value of the financial asset at initial
recognition and may change over the life of the financial asset (for example, if there are repayments
of principal or amortisation of the premium/discount).
The most significant elements of interest within a lending arrangement are typically the consideration
for the time value of money and credit risk. For the SPPI assessment, the Group and the Bank
apply judgement and consider relevant factors such as the currency in which the financial asset is
denominated, and the period for which the interest rate is set.
In contrast, contractual terms that introduce a more than de minimis exposure to risks or volatility
in the contractual cash flows that are unrelated to a basic lending arrangement do not give rise to
contractual cash flows that are solely payments of principal and interest on the amount outstanding.
In such cases, the financial asset is required to be measured at FVTPL.
(ii) Derivatives recorded at fair value through profit or loss
A derivative is a financial instrument or other contract with all three of the following characteristics:
• Its value changes in response to the change in a specified interest rate, financial instrument price,
commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index,
or other variable, provided that, in the case of a non-financial variable, it is not specific to a party to
the contract (i.e. the ‘underlying’);
• It requires no initial net investment or an initial net investment that is smaller than would be required
for other types of contracts expected to have a similar response to changes in market factors; and
• It is settled at a future date.
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(ii) Derivatives recorded at fair value through profit or loss (cont’d.)
The Bank enters into derivative transactions with various counterparties. These include equity swaps,
forward foreign exchange contracts and options on foreign currencies and equities. Derivatives are
recorded at fair value and carried as assets when their fair value is positive and as liabilities when their fair
value is negative.
(iii) Embedded derivatives
An embedded derivative is a component of a hybrid instrument that also includes a non-derivative host
contract with the effect that some of the cash flows of the combined instrument vary in a way similar to a
stand-alone derivative. An embedded derivative causes some or all of the cash flows that otherwise would
be required by the contract to be modified according to a specified interest rate, financial instrument price,
commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other
variable, provided that, in the case of a non-financial variable, it is not specific to a party to the contract.
A derivative that is attached to a financial instrument, but is contractually transferable independently of
that instrument, or has a different counterparty from that instrument, is not an embedded derivative, but a
separate financial instrument.
Derivatives embedded in financial liability or a non-financial host are separated from the host and accounted
for as separate derivatives if:
a) the economic characteristics and risks are not closely related to the host;
b) a separate instrument with the same terms as the embedded derivative would meet the definition of
a derivative (as defined above); and
c) the hybrid contract is not measured at fair value through profit or loss.
Embedded derivatives are measured at fair value with changes in fair value recognised in profit or loss.
Reassessment only occurs if there is either a change in the terms of the contract that significantly modifies
the cash flows that would otherwise be required or a reclassification of a financial asset out of the fair value
through profit or loss category.
Financial assets are classified based on the business model and SPPI assessments as outlined in Notes
3.4(g)(i)(1) and 3.4(g)(i)(2).
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(iv) Financial assets or financial liabilities held for trading
The Group and the Bank classify financial assets or financial liabilities as held for trading when they have
been purchased or issued primarily for short-term profit making through trading activities or form part
of a portfolio of financial instruments that are managed together, for which there is evidence of a recent
pattern of short-term profit taking. Held-for-trading assets and liabilities are recorded and measured in the
statement of financial position at fair value. Changes in fair value are recognised in net trading income.
Interest and dividend income or expense are recorded in net trading income according to the terms of the
contract, or when the right to payment has been established.
Included in this classification are debt securities, equities and short positions that have been acquired
principally for the purpose of selling or repurchasing in the near term.
(v) Debt instruments at FVOCI
The Group and the Bank classify debt instruments measured at FVOCI when both of the following conditions
are met:
• The instrument is held within a business model, the objective of which is achieved by both collecting
contractual cash flows and selling financial assets; and
• The contractual terms of the financial asset meet the SPPI test.
Debt instruments at FVOCI are subsequently measured at fair value with gains and losses arising due
to changes in fair value recognised in OCI. Interest income and foreign exchange gains and losses are
recognised in profit or loss in the same manner as for financial assets measured at amortised cost as
explained in Note 3.4(s)(ii). The ECL calculation for debt instruments at FVOCI is explained in Note 3.4(k)(ii).
Where the Group and the Bank hold more than one investment in the same security, they are deemed to be
disposed of on a first-in first-out basis. On derecognition, cumulative gains or losses previously recognised
in OCI are reclassified from OCI to profit or loss.
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(vi) Equity instruments at FVOCI
Upon initial recognition, the Group and the Bank have the option to elect to classify irrevocably some of their
equity investments as equity instruments at FVOCI when they meet the definition of Equity under MFRS
132 Financial Instruments: Presentation and are not held for trading. Such classification is determined on
an instrument-by instrument basis.
Equity instruments classified as FVOCI are measured at fair value. Any gains and losses on these equity
instruments are never recycled to profit or loss. Dividends are recognised in profit or loss as other operating
income when the right of the payment has been established, except when the Group and the Bank benefit
from such proceeds as a recovery of part of the cost of the instrument, in which case, such gains are
recorded in OCI. Equity instruments at FVOCI are not subject to an impairment assessment.
(vii) Debt issued and other borrowed funds
After initial measurement, debt issued and other borrowed funds are subsequently measured at amortised
cost (“AC”).
Amortised cost is calculated by taking into account any discount or premium on issued funds, and costs
that are an integral part of the effective interest rate (“EIR”). A compound financial instrument which contains
both a liability and an equity component is separated at the issue date in the issuer’s financial statements.
(viii) Financial assets and financial liabilities at fair value through profit or loss
Financial assets and financial liabilities in this category are those that are not held for trading and have
been either designated by management upon initial recognition or are mandatorily required to be measured
at fair value under MFRS 9. Management only designates an instrument at FVTPL upon initial recognition
when one of the following criteria are met. Such designation is determined on an instrument-by-instrument
basis:
• The designation eliminates, or significantly reduces, the inconsistent treatment that would otherwise
arise from measuring the assets or liabilities or recognising gains or losses on them on a different
basis; or
• The liabilities are part of a group of financial liabilities, which are managed and their performance
evaluated on a fair value basis, in accordance with a documented risk management or investment
strategy; or
• The liabilities containing one or more embedded derivatives, unless they do not significantly modify
the cash flows that would otherwise be required by the contract, or it is clear with little or no analysis
when a similar instrument is first considered that separation of the embedded derivative is prohibited.
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(viii) Financial assets and financial liabilities at fair value through profit or loss (cont’d.)
Financial assets and financial liabilities at FVTPL are recorded in the statement of financial position at fair
value.
Changes in fair value are recorded in profit or loss. Interest earned or incurred on instruments designated at
FVTPL are accrued in other operating income, respectively, using the EIR, taking into account any discount/
premium and qualifying transaction costs being an integral part of instrument.
(ix) Undrawn loan commitments
Undrawn loan commitments are commitments under which, over the duration of the commitment, the
Group and the Bank are required to provide a loan or financing with pre-specified terms to the customer.
These contracts fall under the scope of the ECL requirements.
The nominal contractual value of undrawn loan commitments, where the loan or financing agreed to be
provided is on market terms, are not recorded on in the statement of financial position. The nominal values
of these instruments together with the corresponding ECLs are disclosed in Note 9.2(d).
The Group and the Bank occasionally issue loan commitments at below market interest rates drawdown.
Such commitments are subsequently measured at the higher of the amount of the ECL allowance (as
explained in Notes 3.4(k)(i) and 50(a)) and the amount initially recognised less, when appropriate, the
cumulative amount of income recognised.
(h) Reclassification of financial assets and liabilities
The Group and the Bank have not reclassified their financial assets and financial liabilities subsequent to their
initial recognition, apart from the exceptional circumstances in which the Group and the Bank acquire, dispose
of, or terminate a business line.
(i) Derecognition of financial assets and liabilities
(a) Derecognition due to substantial modification of terms and conditions
The Group and the Bank derecognise a financial asset, such as a loan to a customer, when the terms
and conditions have been renegotiated substantially to the extent that, it becomes a new loan, with the
difference in fair value recognised as a derecognition gain or loss, to the extent that an impairment loss
has not already been recorded. The newly recognised loans are classified as Stage 1 for ECL measurement
purposes, unless the new loan is deemed to be Purchased or Originated Credit Impaired (“POCI”).
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(i) Derecognition of financial assets and liabilities (cont’d.)
(a) Derecognition due to substantial modification of terms and conditions (cont’d.)
When assessing whether or not to derecognise a loan to a customer, amongst others, the Group and the
Bank consider the following factors:
• Introduction of an equity feature;
• Change in counterparty; and
• If the modification is such that the instrument would no longer meet the SPPI criterion.
If the terms are not substantially different, the renegotiation or modification does not result in derecognition,
and the Group recalculates the gross carrying amount based on the revised cash flows of the financial asset
and recognises a modification gain or loss in profit or loss. The new gross carrying amount is recalculated
by discounting the modified cash flows at the original effective interest rate (or credit-adjusted effective
interest rate for POCI financial assets). For financial liabilities, the Bank considers a modification substantial
based on qualitative factors and if it results in a difference between the adjusted discounted present value
and the original carrying amount of the financial liability of, or greater than, ten percent. For financial assets,
this assessment is based on qualitative factors.
(b) Derecognition other than for substantial modification - Financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is derecognised when the rights to receive cash flows from the financial asset have expired.
The Group and the Bank also derecognise the financial asset if it has both transferred the financial asset
and the transfer qualifies for derecognition as follows:
• The Group and the Bank have transferred their contractual rights to receive cash flows from the
financial asset; or
• They retain the rights to the cash flows, but have assumed an obligation to pay the received cash
flows in full without material delay to a third party under a ‘pass-through’ arrangement.
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(b) Derecognition other than for substantial modification - Financial assets (cont’d.)
Pass-through arrangements are transactions whereby the Group and the Bank retain the contractual rights
to receive the cash flows of a financial asset (the ‘original asset’), but assumes a contractual obligation
to pay those cash flows to one or more entities (the ‘eventual recipients’), when all of the following three
conditions are met:
• The Group and the Bank have no obligation to pay amounts to the eventual recipients unless it has
collected equivalent amounts from the original asset, excluding short-term advances with the right to
full recovery of the amount lent plus accrued interest at market rates;
• The Group and the Bank cannot sell or pledge the original asset other than as security to the eventual
recipients; and
• The Group and the Bank have to remit any cash flows it collect on behalf of the eventual recipients
without material delay. In addition, the Group and the Bank are not entitled to reinvest such cash
flows, except for investments in cash or cash equivalents including interest earned, during the period
between the collection date and the date of required remittance to the eventual recipients.
A transfer only qualifies for derecognition if either:
• The Group and the Bank have transferred substantially all the risks and rewards of the asset; or
• The Group and the Bank have neither transferred nor retained substantially all the risks and rewards
of the asset, but have transferred control of the asset.
The Group and the Bank consider control to be transferred if and only if, the transferee has the practical
ability to sell the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally
and without imposing additional restrictions on the transfer.
When the Group and the Bank have neither transferred nor retained substantially all the risks and rewards
and has retained control of the asset, the asset continues to be recognised only to the extent of the
Group’s and of the Bank’s continuing involvement, in which case, the Group and the Bank also recognise
an associated liability. The transferred asset and the associated liability are measured on a basis that
reflects the rights and obligations that the Group and the Bank have retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the
lower of the original carrying amount of the asset and the maximum amount of consideration the Group and
the Bank could be required to pay.
If continuing involvement takes the form of a written or purchased option (or both) on the transferred asset,
the continuing involvement is measured at the value the Group and the Bank would be required to pay upon
repurchase. In the case of a written put option on an asset that is measured at fair value, the extent of the
entity’s continuing involvement is limited to the lower of the fair value of the transferred asset and the option
exercise price.
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(c) Derecognition other than for substantial modification - Financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or
expired.
Where an existing financial liability is replaced by another from the same lender on substantially different
terms, or the terms of an existing liability are substantially modified, such an exchange or modification
is treated as a derecognition of the original liability and the recognition of a new liability. The difference
between the carrying value of the original financial liability and the consideration paid is recognised in profit
or loss.
(j) Determination of fair value
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability takes place either:
- in the principal market for the asset or liability; or
- in the absence of a principal market, in the most advantageous market for the asset or liability.
The fair value of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best interest.
The Group and the Bank use valuation techniques that are appropriate in the circumstances for which sufficient
data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use
of unobservable inputs.
The fair value measurement of a non-financial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use.
An analysis of fair values of financial instruments and further details as to how they are measured are provided
in Note 51.
For financial instruments measured at fair value, where available, quoted and observable market prices in an
active market or dealer price quotations are used to measure fair value. These include listed equity securities and
broker quotes from Bloomberg.
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(k) Impairment of financial assets
(i) Overview of the ECL principles
Under MFRS 9, the Group’s and the Bank’s loan and receivable impairment method is based on a forward-
looking ECL approach. The Group and the Bank have been recording the allowance for expected credit
losses for all loans and other debt financial assets not held at FVTPL, together with loan commitments
contracts, in this section all referred to as ‘financial instruments’. Equity instruments are not subject to
impairment under MFRS 9.
The ECL allowance is based on the credit losses expected to arise over the life of the financial instruments
(the lifetime expected credit loss or “LTECL”), unless there has been no significant increase in credit risk
since origination, in which case, the allowance is based on the 12 months’ expected credit loss (“12mECL”)
as outlined in Note 3.4(k)(ii).
The 12mECL is the portion of LTECLs that represent the ECLs that result from default events on a financial
instrument that are possible within the 12 months after the reporting date.
Both LTECLs and 12mECLs are calculated on either an individual basis or a collective basis, depending on
the nature of the underlying portfolio of financial instruments.
The Group and the Bank have established a policy to perform an assessment, at the end of each reporting
period, of whether a financial instrument’s credit risk has increased significantly since initial recognition, by
considering the change in the risk of default occurring over the remaining life of the financial instrument.
This is further explained in Note 50(a).
General approach
The Group and the Bank group their loans into Stage 1, Stage 2, Stage 3 and POCI, as described below:
• Stage 1: When loans or assets are first recognised, the Group and the Bank recognise an allowance
based on 12mECLs. Stage 1 loans or assets also include facilities where the credit risk has improved
and the loan or the assets has been reclassified from Stage 2.
• Stage 2: When a loan or an asset has shown a significant increase in credit risk (“SICR”) since
origination, the Group and the Bank record an allowance for the LTECLs. Stage 2 loans or assets also
include facilities, where the credit risk has improved and the loan has been reclassified from Stage 3.
• Stage 3: Loans or assets considered as credit-impaired (as outlined in Note 50(a)). The Group and the
Bank record an allowance for the LTECLs.
• POCI assets are financial assets that are credit impaired on initial recognition. POCI assets are
recorded at fair value at original recognition and interest income is subsequently recognised based on
a credit-adjusted EIR. ECLs are only recognised or released to the extent that there is a subsequent
change in the expected credit losses.
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(k) Impairment of financial assets (cont’d.)
(i) Overview of the ECL principles (cont’d.)
General approach (cont’d.)
For financial assets for which the Group and the Bank have no reasonable expectations of recovering either
the entire outstanding amount, or a proportion thereof, the gross carrying amount of the financial asset is
reduced. This is considered a (partial) derecognition of the financial asset.
Simplified approach
The simplified approach does not require tracking change in credit risk, but instead requires a loss allowance
to be recognised based on LTECLs at each reporting date.
The simplified approach is required for trade receivables or contract assets that do not contain a significant
financing component.
However, either the general approach or the simplified approach can be applied separately, as an accounting
policy choice, for:
• All trade receivables or contract assets that result from transactions within the scope of MFRS 15
Revenue from Contracts with Customers and that contain a significant financing component.
• All lease receivables that result from transaction that are within the scope of MFRS 16 Leases.
(ii) The calculation of ECLs
The Group and the Bank calculate ECLs based on a three probability-weighted scenarios to measure the
expected cash shortfalls, discounted at original EIR. A cash shortfall is the difference between the cash
flows that are due to the Group and the Bank in accordance with the contract and the cash flows that the
Group and the Bank expect to receive.
The key elements of the ECL calculations are outlined as follows:
• PD The Probability of Default (“PD”) is an estimate of the likelihood of default over a

given time horizon. A default may only happen at a certain time over the assessed
period, if the facility has not been previously derecognised and is still in the portfolio.
The concept of PD is further explained in Note 50(a).
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(ii) The calculation of ECLs (cont’d.)
The key elements of the ECL calculations are outlined as follows (cont’d.):
• EAD The Exposure at Default (“EAD”) is an estimate of the exposure at a future default
date, taking into account expected changes in the exposure after the reporting date,
including repayments of principal and interest, whether scheduled by contract or
otherwise, expected drawdowns on committed facilities, and accrued interest from
missed payments. The EAD is further explained in Note 50(a).
• LGD The Loss Given Default (“LGD”) is an estimate of the loss arising in the case where a
default occurs at a given time. It is based on the difference between the contractual
cash flows due and those that the lender would expect to receive, including from the
realisation of any collateral. It is usually expressed as a percentage of the EAD. The LGD
is further explained in Note 50(a).
When estimating the ECLs, the Group and the Bank consider three scenarios (a base case, an upside or a
downside). When relevant, the assessment of multiple scenarios also incorporates how defaulted loans are
expected to be recovered, including the probability that the loans will cure and the value of collateral or the
amount that might be received for selling the asset.
The maximum period for which the credit losses are determined is the contractual life of a financial
instrument unless the Group and the Bank have the legal right to call it earlier, or when the asset is revolving
in nature, as further explained in Note 50(a).
The mechanics of the ECL method are summarised below:
• Stage 1: The 12mECL is calculated as the portion of LTECLs that represent the ECLs that result
from default events on a financial instrument that are possible within the 12 months
after the reporting date. The Group and the Bank calculate the 12mECL allowance
based on the expectation of a default occurring in the 12 months following the reporting
date.
These expected 12-month default probabilities (“PD”) are applied to a forecast EAD
and multiplied by the expected LGD and discounted by an approximation to the original
EIR. This calculation is made for each of the three scenarios, as explained above.
• Stage 2: When a loan or an asset has shown a SICR since origination, the Group and the Bank
record an allowance for the LTECLs. The mechanics are similar to those explained
above, including the use of multiple scenarios, but PD and LGD are estimated over
the lifetime of the instrument. The expected cash shortfalls are discounted by an
approximation to the original EIR.
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(ii) The calculation of ECLs (cont’d.)
The mechanics of the ECL method are summarised below (cont’d.):
• Stage 3: For loans or assets considered credit-impaired, the Group and the Bank recognise the
LTECLs for these loans or assets. The method is similar to that for Stage 2 assets, with
the PD set at 100%.
• POCI: POCI assets are financial assets that are credit impaired on initial recognition.
The Group and the Bank only recognise the cumulative changes in LTECLs since initial
recognition, based on a probability-weighting of the three scenarios, discounted by the
credit adjusted EIR.
• Loan When estimating LTECLs for undrawn loan commitments, the Group and the Bank
Commitments: estimate the expected portion of the loan commitment that will be drawn down over
its expected life. The ECL is then based on the present value of the expected shortfalls
in cash flows if the loan is drawn down, based on a probability-weighting of the three
scenarios. The expected cash shortfalls are discounted at an approximation to the
expected EIR on the loan. For revolving facilities that include both a loan and an
undrawn commitment, ECLs are calculated and presented together with the loan.
(iii) Debt instruments measured at FVOCI
The ECLs for debt instruments measured at FVOCI do not reduce the carrying amount of these financial
assets in the statement of financial position, which remains at fair value. Instead, an amount equal to
the allowance that would arise if the assets were measured at amortised cost is recognised in OCI as an
accumulated impairment amount, with a corresponding charge to profit or loss. The accumulated loss
recognised in OCI is recycled to the profit or loss upon derecognition of the assets.
(iv) Purchased or originated credit impaired financial assets (“POCI”)
For POCI financial assets, the Group and the Bank only recognise the cumulative changes in LTECLs since
initial recognition in the loss allowance.
(v) Forward looking information
In their ECL models, the Group and the Bank rely on a broad range of forward looking information as
economic inputs, such as:
• Gross Domestic Products (“GDP”) growth rate; and

• Kuala Lumpur Composite Index (“KLCI”)
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(v) Forward looking information (cont’d.)
The inputs and models used for calculating ECLs may not always capture all characteristics of the market
at the date of the financial statements. To reflect this, qualitative adjustments or overlays are occasionally
made as temporary adjustments when such differences are significantly material. Detailed information
about these inputs and multiple-scenario analysis are provided in Note 50(a).
(vi) Collateral valuation
To mitigate its credit risks on financial assets, the Group and the Bank seek to use collateral, where possible.
The collateral comes in various forms, such as cash, securities, letters of credit/guarantees, real estate,
receivables, inventories, other non-financial assets and credit enhancements such as netting agreements.
The Group’s and the Bank’s accounting policy for collateral assigned to it through its lending arrangements
is such that collateral, unless repossessed, is not recorded on the Group’s and the Bank’s statement of
financial position.
However, the fair value of collateral affects the calculation of ECLs. It is generally assessed, at a minimum,
at inception and re-assessed on a monthly basis. However, some collateral, for example, cash or securities
relating to margining requirements, is valued daily.
To the extent possible, the Group and the Bank use active market data for valuing financial assets held as
collateral. Other financial assets which do not have readily determinable market values are valued using
models. Non-financial collateral, such as real estate, is valued based on data provided by third parties such
as real estate valuers, or based on housing price indices.
(vii) Collateral repossessed
The Group’s and the Bank’s policy are to determine whether a repossessed asset can be best used for
its internal operations or should be sold. Assets determined to be useful for the internal operations are
transferred to their relevant asset category at the lower of their repossessed value or the carrying value
of the original secured asset. Assets for which selling is determined to be a better option are transferred
to assets held for sale at their fair value (if financial assets) and fair value less cost to sell for non-financial
assets at the repossession date in line with the Group’s and the Bank’s policy.
In its normal course of business, the Group and the Bank do not physically repossess properties or other
assets in their retail portfolio, but engages external agents to recover funds, generally at auction, to settle
outstanding debt. Any surplus funds are returned to the customers/obligors. As a result of this practice,
the residential properties under legal repossession processes are not recorded on the balance sheet.
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(viii) Write-offs
Financial assets are written off either partially or in their entirety only when the Group and the Bank
have stopped pursuing the recovery. If the amount to be written off is greater than the accumulated loss
allowance, the difference is first treated as an addition to the allowance that is then applied against the
gross carrying amount. Any subsequent recoveries are credited to credit loss expense.
(ix) Rescheduled and restructured (“R&R”) loans
The Group and the Bank sometimes make concessions or modifications to the original terms of loans as a
response to the borrower’s financial difficulties, rather than taking possession or otherwise enforce collection
of collateral. The Group and the Bank consider a loan as R&R when such concessions or modifications
are provided as a result of the borrower’s present or expected financial difficulties and the Group and the
Bank would not have agreed to them if the borrower had been financially healthy. Indicators of financial
difficulties include defaults on covenants, or significant concerns. A rescheduling and restructuring of a
loan may involve extending the payment arrangements and the agreement of new loan conditions. Once
the terms have been renegotiated, any impairment is measured using the original EIR as calculated before
the modification of terms. It is the Group’s and the Bank’s policy to monitor impaired R&R loans to help
ensure that future payments continue to be likely to occur. Derecognition decisions and classification
between Stage 2 and Stage 3 are determined on a case-by-case basis. If these procedures identify a loss
in relation to a loan, it is disclosed and managed as an impaired Stage 3 (credit-impaired) asset until it is
collected or written off.
When the loan has been renegotiated or modified but not derecognised, the Group and the Bank also
reassess whether there has been a significant increase in credit risk, as set out in Note 50(a). Where a
credit-impaired loan has been classified as R&R, the loan will continue to be classified as impaired until
repayments based on the rescheduled or restructured terms have been observed continuously for a period
of 6 months.
(l) Impairment of non-financial assets
The Group and the Bank assess at each reporting date whether there is an indication that an asset may be
impaired. If any indication exists, or when annual impairment assessment for an asset is required, the Group and
the Bank make an estimate of the asset’s recoverable amount.
An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (“CGU”) fair value less costs
to sell and its value-in-use. For the purpose of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash flows.
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(l) Impairment of non-financial assets (cont’d.)
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is written down
to its recoverable amount. Impairment losses recognised in respect of a CGU or groups of CGUs are allocated
first to reduce the carrying amount of any goodwill allocated to those units or groups of units and then, to reduce
the carrying amount of the other assets in the unit or groups of units on a pro-rata basis.
Impairment losses are recognised in profit or loss except for assets that are previously revalued where the
revaluation was taken to OCI. In this case the impairment is also recognised in OCI up to the amount of any
previous revaluation.
An assessment is made at each reporting date to determine whether there is indication that previously recognised
impairment losses no longer exist or have decreased. A previously recognised impairment loss is reversed
only if there has been a change in the estimates used to determine that asset’s recoverable amount since the
last impairment loss was recognised. If that is the case, the carrying amount of the asset is increased to its
recoverable amount. That increase cannot exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised previously. Such reversal is recognised in profit or loss
unless the asset is measured at revalued amount, in which case the reversal is treated as a revaluation increase.
Impairment loss on goodwill is not reversed in a subsequent period.
(m) Cash and cash equivalents
Cash and cash equivalents as stated in the statements of cash flows comprise cash and short-term funds and
deposits and placements with financial institutions that are readily convertible into cash with insignificant risk of
changes in value.
(n) Provisions
Provisions are recognised when the Group and the Bank have a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation and a reliable estimate of the amount can be made. Provisions are reviewed at each
reporting date and adjusted to reflect the current best estimate. Where the effect of the time value of money is
material, the provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks
specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is
recognised as finance cost.
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(o) Property, plant and equipment and depreciation
All items of property, plant and equipment are initially recorded at cost. Subsequent costs are included in the
asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Group and the Bank and the cost of the item can be
measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance
are recognised in profit or loss during the financial period in which they are incurred.
When significant parts of an item of property, plant and equipment have different useful lives, they are accounted
for as separate items (major components) of property, plant and equipment.
Subsequent to initial recognition, property, plant and equipment are stated at cost less accumulated depreciation
and accumulated impairment losses, if any. The policy for the recognition and measurement of impairment
losses is in accordance with Note 3.4(l).
Depreciation are not made on freehold land because it has indefinite useful life and capital work-in-progress
as these assets are not ready for use. Depreciation of other property, plant and equipment is provided for on a
straight-line-basis to write off the cost of each asset to its residual value over the estimated useful life, at the
following annual rates:
Building 2%
Motor vehicles 20% to 25%
Computer equipment 10% to 33.33%
Plant and office equipment 10% to 33.33%
Furniture and fittings 5% to 20%
Renovations 10% to 20%
The residual values, useful life and depreciation method are reviewed at each reporting date to ensure that the
amount, method and period of depreciation are consistent with previous estimates and the expected pattern of
consumption of the future economic benefits embodied in the items of property, plant and equipment.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are
expected from its use or disposal. The difference between the net disposal proceeds, if any, and the net carrying
amount is recognised in profit or loss.
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(p) Leases
The Bank assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
The Bank applies a single recognition and measurement approach for all leases, except for short-term leases and
leases of low-value assets. The Bank recognises lease liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets.
(i) Right-of-use assets
The Bank recognises right-of-use assets at the commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of
right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and
lease payments made at or before the commencement date less any lease incentives received. Right-of-
use assets are depreciated on a straight-line basis over the lease term.
The right-of-use assets are presented in Note 18 and are subject to impairment in line with the Bank’s
policy as described in Note 3.4(l).
(ii) Lease liabilities
At the commencement date of the lease, the Group and the Bank recognise lease liabilities measured at
the present value of lease payments to be made over the lease term. The lease payments include fixed
payments (less any lease incentives receivable), variable lease payments that depend on an index or a
rate, and amounts expected to be paid under residual value guarantees. The lease payments also include
the exercise price of a purchase option reasonably certain to be exercised by the Group and the Bank and
payments of penalties for terminating the lease, if the lease term reflects exercising the option to terminate.
Variable lease payments that do not depend on an index or a rate are recognised as expenses in the period
in which the event or condition that triggers the payment occurs.
(q) (i) Share capital
Ordinary shares are classified as equity. Dividends on ordinary shares are recognised in equity in the period
in which they are declared. The transaction costs of an equity transaction are accounted for as a deduction
from equity, net of tax. Equity transaction costs comprise only those incremental external costs directly
attributable to the equity transaction which would otherwise have been avoided.
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(q) (ii) Treasury shares
When the Bank re-acquires its own equity shares, the amount of the consideration paid, including directly
attributable costs, is recognised in equity. Shares re-acquired are held as treasury shares and presented
as a deduction from equity. No gain or loss is recognised in profit or loss on the sale, re-issuance or
cancellation of the treasury shares. Should such treasury shares be reissued by re-sale in the open market,
the difference between the sales consideration and the carrying amount are shown as a movement in
equity, as appropriate.
(r) Derivative financial instruments
Derivative financial instruments are initially recognised at fair value on the date on which derivative contracts are
entered into and are subsequently remeasured at their fair values. Fair values are obtained from quoted market
prices in active markets, including recent market transactions, and valuation techniques, including discounted
cash flow models and option pricing models, as appropriate. Derivative financial instruments are presented
separately in the statements of financial position as assets (positive changes in fair values) and liabilities (negative
changes in fair values). Any gains or losses arising from changes in the fair value of the derivatives are recognised
immediately in profit or loss.
(s) Income recognition
The Group and the Bank recognise revenue from contracts with customers for the provision of services based
on the five-step model as set out below:
• Identify contract(s) with a customer. A contract is defined as an agreement between two or more parties
that creates enforceable rights and obligations and sets out the criteria that must be met.
• Identify performance obligations in the contract. A performance obligation is a promise in a contract with a
customer to transfer a good or service to the customer.
• Determine the transaction price. The transaction price is the amount of consideration to which the Group
and the Bank expect to be entitled in exchange for transferring promised services to a customer, excluding
amounts collected on behalf of third parties.
• Allocate the transaction price to the performance obligations in the contract. For a contract that has
more than one performance obligation, the Group and the Bank allocate the transaction price to each
performance obligation in an amount that depicts the amount of consideration to which the Group and the
Bank expect to be entitled in exchange for satisfying each performance obligation.
• Recognise revenue when (or as) the Group and the Bank satisfy a performance obligation.
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(s) Income recognition (cont’d.)
The Group and the Bank satisfy a performance obligation and recognise revenue over time if the Group’s and the
Bank’s performance:
• Do not create an asset with an alternative use to the Group and the Bank, and have an enforceable right to
payment for performance completed to-date; or
• Create or enhance an asset that the customer controls as the asset is created or enhanced; or
• Provide benefits that the customer simultaneously receives and consumes as the Group and the Bank
perform.
For performance obligations where any one of the above conditions is not met, revenue is recognised at the point
in time at which the performance obligation is satisfied.
When the Group and the Bank satisfy a performance obligation by delivering the promised goods or services, it
creates a contract based asset on the amount of consideration earned by the performance. Where the amount of
consideration received from a customer exceeds the amount of revenue recognised, this gives rise to a contract
liability.
(i) The effective interest rate method
Interest income is recorded using the effective interest rate method for all financial instruments measured at
amortised cost and financial instruments designated at FVTPL. Interest income on interest bearing financial
assets measured at FVOCI under MFRS 9 is also recorded by using the EIR method. The EIR is the rate
that exactly discounts estimated future cash receipts through the expected life of the financial instrument
or, when appropriate, a shorter period, to the net carrying amount of the financial asset.
The EIR (and therefore, the amortised cost of the asset) is calculated by taking into account any discount
or premium on acquisition, fees and costs that are an integral part of the EIR. The Group and the Bank
recognise interest income using a rate of return that represents the best estimate of a constant rate of
return over the expected life of the loan. Hence, it recognises the effect of potentially different interest
rates charged at various stages, and other characteristics of the product life cycle (including prepayments,
penalty interest and charges).
If expectations regarding the cash flows on the financial asset are revised for reasons other than credit risk,
the adjustment is booked as a positive or negative adjustment to the carrying amount of the asset in the
balance sheet with an increase or reduction in interest income. The adjustment is subsequently amortised
through interest and similar income in the income statement.
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(ii) Interest and similar income
The Group and the Bank calculate interest income by applying the EIR to the gross carrying amount of
financial assets other than credit-impaired assets.
When a financial asset becomes credit-impaired (as set out in Note 3.4(k)(i)) and is, therefore, regarded as
‘Stage 3’, the Group and the Bank calculate interest income by applying the effective interest rate to the
net amortised cost of the financial asset.
For POCI financial assets (as set out in Note 3.4(k)(iv)), the Group and the Bank calculate interest income
by calculating the credit-adjusted EIR and applying that rate to the amortised cost of the asset. The credit-
adjusted EIR is the interest rate that, at original recognition, discounts the estimated future cash flows
(including credit losses) to the amortised cost of the POCI financial assets.
Interest income on all trading assets and financial assets mandatorily required to be measured at FVTPL
is recognised using the contractual interest rate in net trading income and net gains or losses on financial
assets at FVTPL, respectively.
(iii) Fee and other income
Brokerage fees are recognised on contract date upon execution of trade on behalf of clients computed
based on a pre-determined percentage of the contract value.
Loan arrangement fees and commissions, management and participation fees, underwriting fees and
placement fees are recognised as income when all conditions precedent are fulfilled.
Custodian fees, guarantee fees and fund management fees are recognised as income based on time
apportionment basis.
Corporate advisory fees are recognised as income on the completion of each stage of the assignment.
Rollover fee is recognised upon the rollover of specific contracts under share margin financing.
Gain or loss on disposal of investments is recognised upon the transfer of risks and rewards of ownership.
(iv) Islamic banking income
Income from Islamic banking scheme is recognised on an accrual basis in accordance with Shariah
principles.
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(v) Other income
Dividend income is recognised when the right to receive the payment is established.
All other income items are recognised on an accrual basis.
(t) Interest, financing and profit expense
Interest expense on deposits from customers, placements of financial institutions and borrowings is recognised
using EIR.
(u) Foreign currency
(i) Foreign currency transactions
Transactions in foreign currencies are measured in the respective functional currencies of the Group and of
the Bank and recorded on initial recognition in the functional currencies at exchange rates approximating
those ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are
translated at the rate of exchange ruling at the reporting date. Non-monetary items denominated in foreign
currencies that are measured at historical cost are translated using the exchange rates as at the dates of
the initial transactions. Non-monetary items denominated in foreign currencies measured at fair value are
translated using the exchange rates at the date when the fair value was determined.
Exchange differences arising on the settlement of monetary items or on translating monetary items at the
reporting date are recognised in profit or loss except for exchange differences arising on monetary items
that form part of the Group’s net investment in foreign operations, which are recognised initially in other
comprehensive income and accumulated under foreign currency translation reserve in equity. The foreign
currency translation reserve is reclassified from equity to profit or loss of the Group on disposal of the
foreign operation.

Exchange differences arising on the translation of non-monetary items carried at fair value are included in
profit or loss for the period except for the differences arising on the translation of non-monetary items in
respect of which gains and losses are recognised directly in equity. Exchange differences arising from such
non-monetary items are also recognised directly in equity.
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(u) Foreign currency (cont’d.)
(ii) Foreign operations
The assets and liabilities of foreign operations are translated into RM at the rates of exchange ruling at the
reporting date and income and expenses are translated at exchange rates at the dates of the transactions.
The exchange differences arising on the translation are taken directly to other comprehensive income.
On disposal of a foreign operation, the cumulative amount recognised in other comprehensive income and
accumulated in equity under foreign currency translation reserve relating to that particular foreign operation
is recognised in profit or loss.
Goodwill and fair value adjustments arising on the acquisition of foreign operations are treated as assets
and liabilities of the foreign operations and are recorded in the functional currency of the foreign operations
and translated at the closing rate at the reporting date.
(v) Income taxes
(i) Current tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted by the reporting date.
Current taxes are recognised in profit or loss except to the extent that the tax relates to items recognised
outside profit or loss, either in other comprehensive income or directly in equity.
(ii) Zakat
This represents business zakat payable by the Group and the Bank in compliance with Shariah principles
and as approved by the Group’s and the Bank’s Shariah Committee.
(iii) Deferred tax
Deferred tax is provided using the liability method on temporary differences at the reporting date between
the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax liabilities are recognised for all taxable temporary differences:
- where the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss; and
- in respect of taxable temporary differences associated with investments in subsidiaries and associates,
where the timing of the reversal of the temporary differences can be controlled and it is probable that
the temporary differences will not reverse in the foreseeable future.
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(v) Income taxes (cont’d.)
(iii) Deferred tax (cont’d.)
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax
credits and unused tax losses, to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, and the carry forward of unused tax credits and unused tax
losses can be utilised except:
- where the deferred tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the time
of the transaction, affects neither the accounting profit nor taxable profit or loss; and
- in respect of deductible temporary differences associated with investments in subsidiaries and

associates, deferred tax assets are recognised only to the extent that it is probable that the temporary
differences will reverse in the foreseeable future and taxable profit will be available against which the
temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are
recognised to the extent that it has become probable that future taxable profits will allow the deferred tax
assets to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the financial
year when the asset is realised or the liability is settled, based on tax rates and tax laws that have been
enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss.
Deferred tax items are recognised in correlation to the underlying transaction either in other comprehensive
income or directly in equity and deferred tax arising from a business combination is adjusted against
goodwill on acquisition.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and
the same taxation authority.
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(w) Employee benefits
(i) Short-term benefits
Wages, salaries, bonuses and social security contributions are recognised as an expense in the financial
year in which the associated services are rendered by employees of the Group and of the Bank.
Short-term accumulating compensated absences such as paid annual leave are recognised when services
are rendered by employees that increase their entitlement to future compensated absences. Short-term
non-accumulating compensated absences such as sick leave are recognised when the absences occur.
(ii) Defined contribution plans
As required by law, companies in Malaysia make contributions to the Employees Provident Fund (“EPF”).
Such contributions are recognised as an expense in profit or loss as incurred. Once the contributions have
been paid, the Group and the Bank have no further payment obligations.
(iii) Kenanga’s Group Employees’ share scheme (“ESS”)
Employees (including Executive Directors and senior management) of the Group and of the Bank receive a
remuneration in the form of share-based payments, whereby employees render services as consideration
for equity instruments (equity-settled transactions).
Equity-settled transactions
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made
using an appropriate valuation model, further details of which are set out in Note 54. ESS cost is recognised
in staff costs (Note 33), together with a corresponding increase in equity (other capital reserves), over the
period in which the service and, where applicable, the performance conditions are fulfilled (the vesting
period). The cumulative expense recognised for equity-settled transactions at each reporting date until the
vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of
the number of equity instruments that will ultimately vest. The expense or credit in the statement of profit or
loss for a period represents the movement in cumulative expense recognised as at the beginning and end
of that period.
Service performance conditions are not taken into account when determining the grant date fair value of
awards, but the likelihood of the conditions being met is assessed as part of the Group’s best estimate
of the number of equity instruments that will ultimately vest. Service performance conditions are reflected
within the grant date fair value.
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31 DECEMBER 2022
(w) Employee benefits (cont’d.)
(iii) Kenanga’s Group Employees’ share scheme (“ESS”) (cont’d.)
Equity-settled transactions (cont’d.)
Where the terms of equity-settled awards are modified, the minimum expense recognised is the grant date
fair value of the unmodified award, provided the original vesting terms of the award are met. An additional
expense, measured as at the date of modification, is recognised for any modification that increases
the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee.
Where an award is cancelled by the entity or the counterparty, any remaining element of the fair value of the
award is expensed immediately through profit or loss.
(x) Segment information
For management purposes, the Group is organised into operating segments based on their products and services
which are independently managed by the respective segment managers responsible for the performance of
the respective segments under their charge. The segment managers report directly to the management of the
Group and of the Bank who regularly review the segment results in order to allocate resources to the segments
and to assess the segment performance. Additional disclosures on each of these segments are shown in Note
49, including the factors used to identify the reportable segments and the measurement basis of segment
information.
(y) Contingent liabilities and contingent assets
The Group and the Bank do not recognise a contingent liability but disclose its existence in the financial
statements. A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the
Group and of the Bank or a present obligation that is not recognised because it is not probable that an outflow
of resources will be required to settle the obligation. A contingent liability also arises in the extremely rare case
where there is a liability that cannot be recognised because it cannot be measured reliably.
A contingent asset is a possible asset that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Group and of the
Bank. The Group and the Bank do not recognise any contingent asset but disclose its existence where inflows
of economic benefits are probable, but not virtually certain.
(z) Fiduciary assets
The Group provides trust and other fiduciary services that result in the holding or investing of assets on behalf
of its clients. Assets held in fiduciary capacity are not recognised as assets of the Group other than those
recognised in Note 5.
185

31 DECEMBER 2022
4. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of the consolidated financial statements in accordance with MFRS requires management to make
judgements, estimates and assumptions that affect the application of accounting policies and reported amount of revenues,
expenses, assets and liabilities, the accompanying disclosures and the disclosure of contingent liabilities. Judgements,
estimates and assumptions are continually evaluated and are based on past experience, reasonable expectations of future
events and other factors. Uncertainty about these assumptions and estimates could result in outcomes that require a
material adjustment to the carrying amount of assets or liabilities affected in future periods.
In the process of applying the Group’s and the Bank’s accounting policies, management has made the following judgements
and assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year. Existing circumstances and assumptions about future developments may change due to circumstances beyond the
Group’s and the Bank’s control and are reflected in the assumptions if and when they occur. Items with the most significant
effect on the amounts recognised in the financial statements with substantial management judgement and/or estimates are
collated below with respect to judgements/estimates involved.
(i) The Group and the Bank determine whether goodwill and other intangible assets are impaired at least on an annual
basis. This requires an estimation of the value-in-use of the CGU to which goodwill and other intangible assets are
allocated. Estimating a value-in-use amount requires management to make an estimate of the expected future cash
flows from the CGU and also to choose a suitable discount rate in order to calculate the present value of those
cash flows. More detailed disclosures on the assessment of impairment of goodwill and other intangible assets are
disclosed in Note 17.
(ii) The fair value of financial assets at fair value through profit or loss (Note 6), financial investments measured at FVOCI
and at amortised cost (Note 7), derivative financial assets (Note 8) and derivative financial liabilities (Note 23) are
derived from quoted and observable market prices. However, if the financial instruments are not traded in an active
market, fair value may be established by using a valuation technique which includes but is not limited to using recent
arm’s length market transactions between knowledgeable, willing parties, and reference to the current fair value of
another instrument that is substantially the same. The Group and the Bank use acceptable valuation technique which
involves making assumptions based on market conditions and other factors as of the reporting date.
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31 DECEMBER 2022
4. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS (CONT’D.)
(iii) The measurement of impairment losses under MFRS 9 on financial assets subject to impairment assessment requires
judgement, in particular, the estimation of the amount and timing of future cash flows and collateral values when
determining impairment losses and the assessment of a significant increase in credit risk. These estimates are driven
by a number of factors, changes in which can result in different levels of allowances.
Under MFRS 9, the Group’s and the Bank’s ECL calculations are outputs of complex models with a number of
underlying assumptions regarding the choice of variable inputs and their interdependencies. Elements of the ECL
models that are considered accounting judgements and estimates include:
• The Group’s and the Bank’s internal credit rating model, which assigns PDs to the individual grades;
• The Group’s and the Bank’s criteria for assessing if there has been a significant increase in credit risk and so
allowances for financial assets should be measured on a LTECLs basis and the qualitative assessment;
• The segmentation of financial assets when their ECL is assessed on a collective basis;
• Development of ECL models, including the various formulas and the choice of inputs;
• Determination of associations between macroeconomic scenarios and economic inputs, such as unemployment
levels and collateral values, and the effect on PDs, EADs and LGDs; and
• Selection of forward-looking macroeconomic scenarios and their probability weightings, to derive the economic
inputs into the ECL models.
It has been the Group’s and the Bank’s policy to regularly review its models in the context of actual loss experience
and adjust when necessary.
Overlays and adjustments for ECL amidst COVID-19 environment
As the current MFRS 9 models are not expected to generate levels of ECL with sufficient reliability in view of the
unprecedented and on-going COVID-19 pandemic, overlays have been applied to determine a sufficient overall level
of ECL for the year ended and as at 31 December 2022.
These overlay adjustments were taken to reflect the latest macroeconomic outlook not captured in the modelled
outcome and the potential impact to delinquencies and defaults when the various relief and support measures are
expiring in 2022.
The overlays involved significant level of judgement and reflect the management’s views of possible severities of the
pandemic and paths of recovery in the forward looking assessment for ECL estimation purposes.
187

31 DECEMBER 2022
(iii) (cont’d.)
Overlays and adjustments for ECL amidst COVID-19 environment (cont’d.)
The customers who have received repayment supports remain in their existing stages unless they have been
individually identified as not viable or with subsequent indicators of significant increase in credit risk from each of their
pre-COVID-19 status. The overlays were generally made at portfolio level in determining the sufficient level of ECL.
The adjusted downside scenario assumes a continuous restrictive economic environment due to COVID-19.
Total overlays for ECL inclusive of the macro-economic adjustments maintained by the Group as at 31 December 2022
are RM3.2 million (2021: RM3.2 million).
The scenarios applied in management overlay in estimating the reported ECL arising from COVID-19 uncertainties are
set out in the table as follow:
ECL provision
2022 2021
Scenarios RM’000 RM’000
1. Assigned higher LGD for exposures under moratorium - 2,250

2. Drop in counterparty ratings 245 395
3. Stressed security cover 270 557
4. Security cover is below minimum requirement 2,684 -
Total 3,199 3,202
(iv) The Group and the Bank estimate the useful lives of property, plant and equipment and software based on factors such
as the expected level of usage due to physical wear and tear, future technological developments and legal or other
limits on the use of the relevant assets. Future results of operations could be materially affected by changes in these
estimates brought about by changes in the factors mentioned. A reduction in the estimated useful lives of property,
plant and equipment, and software would increase the recorded depreciation and decrease their carrying value.
The total carrying amounts of property, plant and equipment, and software are disclosed in Notes 16 and 17 respectively.
(v) Deferred tax assets are recognised for all unutilised tax losses and unabsorbed capital allowances to the extent that
it is probable that taxable profit will be available against which the tax losses and unabsorbed capital allowances
can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that
can be recognised, based upon the likely timing and level of future taxable profits together with future tax planning
strategies. As at financial year end, the total carrying value of unutilised tax losses and unabsorbed capital allowances
are disclosed in Note 19.
188
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31 DECEMBER 2022
(vi) The Group and the Bank assess whether there is any indication that investments in subsidiaries and investments in
associates may be impaired at each reporting date.
If indicators are present, these assets are subject to impairment review. The impairment review comprises comparison
of the carrying amount of the investment and the investment’s estimated recoverable amount.
Judgements made by management in the process of applying the Group’s and the Bank’s accounting policies in
respect of investments in subsidiaries and investments in an associate are as follows:
- The Bank determines whether its investments are impaired following certain indications of impairment such
as, amongst others, significant changes with adverse effects on the investments and deteriorating financial
performance of the investments due to observed changes and fundamentals.
- Depending on their nature and the industries in which the investments relate to, judgements are made by
management to select suitable methods of valuation such as, amongst others, discounted cash flows and
realisable net asset value.
Once a suitable method of valuation is selected, management makes certain assumptions concerning the future
to estimate the recoverable amount of the investment. These assumptions and other key sources of estimation
uncertainty at the reporting date may have a significant risk of causing material adjustment to the carrying amounts
of the investments within the next financial year. Depending on the specific individual investment, assumptions made
by management may include, amongst others, assumptions on expected future cash flows, revenue growth, discount
rate used for purposes of discounting future cash flows which incorporates the relevant risks, and expected future
outcome of certain past events.
Investments in subsidiaries and associates of the Group are disclosed in Notes 13 and 14 respectively.
189

31 DECEMBER 2022
5. CASH AND BANK BALANCES
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Cash and balances with banks and other financial

institutions 498,690 526,368 113,936 137,757
Money at call and deposit placements 1,234,096 1,371,016 1,148,989 1,321,399
1,732,786 1,897,384 1,262,925 1,459,156
Included in cash and bank balances are:

Cash and cash equivalents 1,230,891 1,469,803 1,174,810 1,337,127
Monies held in trust on behalf of dealer’s
representatives and segregated funds for
customers 501,895 427,581 88,115 122,029
1,732,786 1,897,384 1,262,925 1,459,156
Monies held in trust on behalf of clients of RM1,069,081,000 (2021: RM1,249,679,000) in respect of the stockbroking
business are excluded from the cash and bank balances of the Group and of the Bank in accordance with Financial
Reporting Standards Implementation Committee (“FRSIC”) Consensus 18.
6. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (“FVTPL”)
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
At fair value
Quoted securities:
Shares and funds in Malaysia 127,984 205,052 127,443 204,833
Shares and funds outside Malaysia 16,529 1,889 16,529 1,889
Unquoted securities:
Shares and funds in Malaysia 168,584 156,508 171,612 155,772
Unquoted debt securities in Malaysia:

Islamic Corporate Sukuk 9,042 23,873 9,042 23,873
322,139 387,322 324,626 386,367
190
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31 DECEMBER 2022
7. FINANCIAL INVESTMENTS OTHER THAN THOSE MEASURED AT FVTPL
Group and Bank

2022 2021
RM’000 RM’000
(a) Financial instruments at Fair Value Through Other Comprehensive

Income (“FVOCI”):
Debt instruments:
Malaysian Government Securities 19,373 40,042
Malaysian Government Investment Certificates 59,534 91,934
Islamic Negotiable Instruments of Deposits - 199,724
Islamic Corporate Sukuk 184,377 275,452
Corporate Bonds 54,595 128,962
317,879 736,114
Equity instruments:
Unquoted Shares in Malaysia 1,294 1,460
Total financial instruments at FVOCI 319,173 737,574
Impairment losses on financial instruments subject to impairment assessment
Debt instruments at FVOCI
The table below shows the fair value of the Group’s and of the Bank’s debt instruments measured at FVOCI by credit risk,
based on the Group’s and of the Bank’s internal credit rating system and year-end stage classification. Details of the Group’s
and of the Bank’s internal rating system are explained in Note 50(a).
191

31 DECEMBER 2022
7. FINANCIAL INVESTMENTS OTHER THAN THOSE MEASURED AT FVTPL (CONT’D.)
(a) Financial instruments at FVOCI (cont’d.):
Impairment losses on financial instruments subject to impairment assessment (cont’d.)
Debt instruments at FVOCI (cont’d.)
2022
Group and Bank Stage 1 Stage 2 Stage 3 Total
Internal rating grade RM’000 RM’000 RM’000 RM’000
Investment grade 312,901 4,978 - 317,879
2021
Investment grade 736,114 - - 736,114
An analysis of changes in the fair value and the corresponding ECLs is, as follows:
2022
Stage 1 Stage 2 Stage 3 Total
Group and Bank RM’000 RM’000 RM’000 RM’000
As at 1 January 736,114 - - 736,114

New assets originated or purchased 816,955 - - 816,955
Assets derecognised or matured (excluding write-offs) (1,206,250) - - (1,206,250)
Change in fair value (29,135) 195 - (28,940)
Transfer of stages (4,783) 4,783 - -
As at 31 December 312,901 4,978 - 317,879
2021
Group and Bank RM’000 RM’000 RM’000 RM’000
As at 1 January 769,742 - - 769,742

New assets originated or purchased 1,593,269 - - 1,593,269
Assets derecognised or matured (excluding write-offs) (1,611,235) - - (1,611,235)
Change in fair value (15,662) - - (15,662)
As at 31 December 736,114 - - 736,114
192
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31 DECEMBER 2022
(a) Financial instruments at FVOCI (cont’d.):
Impairment losses on financial instruments subject to impairment assessment (cont’d.)
Debt instruments at FVOCI (cont’d.)
An analysis of changes in the fair value and the corresponding ECLs is as follows (cont’d.):

2022
Group and Bank Stage 1 Stage 2 Stage 3 Total ECL
ECL allowances RM’000 RM’000 RM’000 RM’000
As at 1 January 390 - - 390

Impact of re-measurement of ECL 50 78 - 128
Changes in model assumption and methodology (129) - - (129)
Transfer of stages (50) 50 - -
As at 31 December 261 128 - 389
2021
Group and Bank Stage 1 Stage 2 Stage 3 Total ECL

Impact of re-measurement of ECL 4 - - 4
As at 31 December 390 - - 390
(b) Financial instruments at amortised cost:
Group and Bank

2022 2021
RM’000 RM’000
Debt instruments:
Malaysian Government Securities 49,677 -
Corporate Bonds 20,002 20,012
Islamic Corporate Sukuk 202,119 153,785
449,114 213,709
Less: Allowance for ECL - (49)
Total financial instruments at amortised cost 449,114 213,660
193

31 DECEMBER 2022
(b) Financial instruments at amortised cost (cont’d.):
Debt instruments measured at amortised cost
The table below shows the credit quality and the maximum exposure to credit risk based on the Group’s and the
Bank’s internal credit rating system and year-end stage classification. The amounts presented are gross of impairment
allowances. Details of the Group’s and of the Bank’s internal grading system are explained in Note 50(a).
2022
2021
An analysis of changes in the gross carrying amount and the corresponding ECLs is as follows:
2022
Gross carrying amount RM’000 RM’000 RM’000 RM’000
As at 1 January 213,709 - - 213,709

New assets purchased 485,257 - - 485,257
Assets derecognised or matured (excluding
write-offs) (249,128) - - (249,128)
Change in fair value (724) - - (724)
As at 31 December 449,114 - - 449,114
2021
As at 1 January 193,140 - - 193,140

New assets purchased 81,070 - - 81,070
write-offs) (56,660) - - (56,660)
Change in fair value (3,841) - - (3,841)
As at 31 December 213,709 - - 213,709
194
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31 DECEMBER 2022
(b) Financial instruments at amortised cost (cont’d.):
An analysis of changes in the gross carrying amount and the corresponding ECLs is as follows (cont’d.):

2022
Changes in model assumption or
methodology (49) - - (49)
As at 31 December - - - -
2021

write-offs) (4) - - (4)
Impact of net re-measurement of ECL (52) - - (52)
8. DERIVATIVE FINANCIAL ASSETS
Group and Bank

2022 2021
RM’000 RM’000
At fair value
Dual currency investment - Options 10 3
Equity related contracts - Options 29,449 29,515
Equity related contracts - Swap 3,295 408
Equity related contracts - Forward 52,463 51,527
85,217 81,453
195

31 DECEMBER 2022
8. DERIVATIVE FINANCIAL ASSETS (CONT’D.)
Group and Bank

2022 2021
RM’000 RM’000
Contract/Notional amount
Dual currency investment - Options 2,126 1,361
Equity related contracts - Swap 64,187 24,123
Equity related contracts - Forward 57,354 57,354
152,105 112,330
The contractual or underlying notional amounts of derivative financial assets held at fair value through profit or loss reflect
the value of transactions outstanding as at reporting date, and do not represent amounts at risk.
9. LOANS, ADVANCES AND FINANCING
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
At amortised cost
Term loans/financing 500,905 539,077 525,953 565,616
Share margin financing 1,153,056 1,170,899 1,153,056 1,170,899
Other lending and factoring receivables 58,885 82,742 - -
Advances to group employees 2 97 2 97
Subordinated term loan* - - 45,067 30,039
Gross loans, advances and financing 1,712,848 1,792,815 1,724,078 1,766,651
Less: Allowance for ECL
- Stage 1 - 12-month ECL (170) (2,949) (635) (3,247)
- Stage 2 - Lifetime ECL not credit impaired (2,900) - (2,900) -
- Stage 3 - Lifetime ECL credit impaired (19,303) (14,453) (17,033) (13,789)
Net loans, advances and financing 1,690,475 1,775,413 1,703,510 1,749,615
* Subordinated term loan to a subsidiary
The subordinated loan granted to a subsidiary company, Kenanga Futures Sdn Bhd, is unsecured with effective
interest rate of 4.76% per annum (2021: 4.39%) and is repayable by November 2026.
196
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31 DECEMBER 2022
9. LOANS, ADVANCES AND FINANCING (CONT’D.)
(i) Gross loans, advances and financing analysed by type of customer are as follows:

Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Domestic business enterprises

- Small and medium enterprises 240,319 256,439 200,583 196,055
- Others 492,321 534,052 562,436 590,630
Individuals 979,667 993,814 960,518 971,456
Foreign enterprises 541 8,510 541 8,510
1,712,848 1,792,815 1,724,078 1,766,651
(ii) Gross loans, advances and financing analysed by geographical distribution are as follows:
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
In Malaysia 1,709,313 1,786,437 1,720,543 1,760,273

Outside Malaysia 3,535 6,378 3,535 6,378
1,712,848 1,792,815 1,724,078 1,766,651
(iii) Gross loans, advances and financing analysed by interest rate/profit rate sensitivity are as follows:
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Fixed rate
- Other fixed rate loans 1,211,941 1,253,641 1,153,056 1,170,899
Variable rate
- Other variable rates 497,904 529,826 568,019 586,404
- Base lending rate plus 3,001 9,251 3,001 9,251
Interest free 2 97 2 97
1,712,848 1,792,815 1,724,078 1,766,651
197

31 DECEMBER 2022
(iv) Gross loans, advances and financing analysed by economic purpose are as follows:
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Purchase of securities 1,401,784 1,427,343 1,401,784 1,427,343

Working capital 138,982 169,221 170,161 169,429
Others 172,082 196,251 152,133 169,879
1,712,848 1,792,815 1,724,078 1,766,651
(v) Gross loans, advances and financing analysed by residual contractual maturity are as follows:
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Within one year 1,494,342 1,483,133 1,484,823 1,484,244

More than one year 218,506 309,682 239,255 282,407
1,712,848 1,792,815 1,724,078 1,766,651
9.1 Movements in impaired loans, advances and financing (“Impaired LAF”)
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
At beginning of the financial year 73,141 41,294 64,700 40,630

Impaired during the financial year 9,188 39,958 4,041 31,537
Reclassified as performing (30,505) - (30,505) -
Amount recovered during the financial year (8,645) (8,111) (7,890) (7,467)
At end of the financial year 43,179 73,141 30,346 64,700
Less: Allowance for ECL (19,303) (14,453) (17,033) (13,789)
Net impaired LAF 23,876 58,688 13,313 50,911
Net impaired LAF as a % of net loans,

advances and financing 1.41% 3.31% 0.78% 2.91%
198
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31 DECEMBER 2022
9.1 Movements in impaired loans, advances and financing (“Impaired LAF”) (cont’d.)
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
9.1.1 Impaired LAF by geographical distribution

Outside Malaysia 541 2,556 541 2,556
Malaysia 42,638 70,585 29,805 62,144
Gross impaired LAF 43,179 73,141 30,346 64,700
9.1.2 Impaired LAF by purpose

Working capital 5,630 664 - -
Purchase of securities 30,346 64,700 30,346 64,700
Others 7,203 7,777 - -
43,179 73,141 30,346 64,700
9.2 Impairment allowance for loans, advances and financing are as follows:
(a) Term loans/financing and subordinated term loan
The tables below show the credit quality and the maximum exposure to credit risk based on the Group’s and the
Bank’s internal credit rating system and year-end stage classification. The amounts presented are gross of ECL
allowances. Details of the Group’s and of the Bank’s internal rating system are explained in Note 50(a).
2022
Group Stage 1 Stage 2 Stage 3 Total
Performing:
- Satisfactory 374,906 - - 374,906
- Substandard 62,613 63,386 - 125,999
Total 437,519 63,386 - 500,905
2021
Performing:
- Satisfactory 408,006 - - 408,006
- Substandard 67,998 63,073 - 131,071
Total 476,004 63,073 - 539,077
199

31 DECEMBER 2022
9.2 Impairment allowance for loans, advances and financing are as follows (cont’d.):
(a) Term loans/financing and subordinated term loan (cont’d.)
2022
Bank Stage 1 Stage 2 Stage 3 Total
Performing:
- Satisfactory 445,021 - - 445,021
- Substandard 62,613 63,386 - 125,999
Total 507,634 63,386 - 571,020
2021
Performing:
- Satisfactory 464,584 - - 464,584
- Substandard 67,998 63,073 - 131,071
Total 532,582 63,073 - 595,655
200
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31 DECEMBER 2022
An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to term
loans/financing and subordinated term loan is as follows:
2022
As at 1 January 476,004 63,073 - 539,077

New assets originated or purchased 147,622 4,625 - 152,247
Assets derecognised or repaid
(excluding write-offs) (186,132) (4,318) - (190,450)
Modification of contractual cash flow of
assets 25 6 - 31
As at 31 December 437,519 63,386 - 500,905
2021
As at 1 January 499,884 87,909 - 587,793

Transfers of stages (9,165) 9,165 - -
assets 40 100 - 140
As at 31 December 476,004 63,073 - 539,077
201

31 DECEMBER 2022
loans/financing and subordinated term loan is as follows (cont’d.):
2022
As at 1 January 532,582 63,073 - 595,655

assets 25 6 - 31
As at 31 December 507,634 63,386 - 571,020
2021
As at 1 January 572,878 87,909 - 660,787

Transfers of stages (9,165) 9,165 - -
assets 40 100 - 140
As at 31 December 532,582 63,073 - 595,655
202
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31 DECEMBER 2022
2022
As at 1 January 2,936 - - 2,936

New assets originated or purchased 93 - - 93
(excluding write-offs) (122) - - (122)
Impact of remeasurement (12) - - (12)
methodology (2,725) 2,900 - 175
As at 31 December 170 2,900 - 3,070
2021
As at 1 January 3,059 - - 3,059

Impact of remeasurement 15 - - 15
As at 31 December 2,936 - - 2,936
203

31 DECEMBER 2022
2022
As at 1 January 3,203 - - 3,203

Impact of remeasurement (12) - - (12)
methodology (2,725) 2,900 - 175
As at 31 December 569 2,900 - 3,469
2021
As at 1 January 3,312 - - 3,312

Impact of remeasurement 210 - - 210
As at 31 December 3,203 - - 3,203
204
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31 DECEMBER 2022
(b) Share margin financing

2022
Performing:
- Strong 339,547 - - 339,547
- Satisfactory 752,549 30,438 - 782,987
- Substandard 176 - - 176
Non-performing:
- Default - - 30,346 30,346
Total 1,092,272 30,438 30,346 1,153,056
2021
Performing:
- Strong 439,308 - - 439,308
- Satisfactory 569,959 63 - 570,022
- Substandard 54,316 - - 54,316
- Non-rated 42,553 - - 42,553
Non-performing:
- Default - - 64,700 64,700
Total 1,106,136 63 64,700 1,170,899
An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to share
margin financing is as follows:
2022
As at 1 January 1,106,136 63 64,700 1,170,899

New assets originated or purchased 725,922 282 4,041 730,245
(excluding write-offs) (712,517) (7,361) (7,856) (727,734)
Transfers of stages (3,179) 33,684 (30,505) -
Impact of remeasurement (24,090) 3,770 (34) (20,354)
As at 31 December 1,092,272 30,438 30,346 1,153,056
205

31 DECEMBER 2022
(b) Share margin financing (cont’d.)
An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to share
margin financing is as follows (cont’d.):
2021
As at 1 January 1,139,747 28,647 40,630 1,209,024

New assets originated or purchased 1,035,477 111 2 1,035,590
(excluding write-offs) (1,056,785) (28,548) (7,589) (1,092,922)
Transfers of stages (29,763) (1,772) 31,535 -
Impact of remeasurement 17,460 1,625 122 19,207
As at 31 December 1,106,136 63 64,700 1,170,899
2022
As at 1 January - - 13,789 13,789

(excluding write-offs) - - (1,706) (1,706)
Net remeasurement of allowance - - 4,950 4,950
As at 31 December - - 17,033 17,033
2021
As at 1 January - 2,356 7,253 9,609

New assets originated or purchased - - (5) (5)
Transfer of stages - (2,356) 2,356 -
(excluding write-offs) - - (1,801) (1,801)
Net remeasurement of allowance - - 5,986 5,986
As at 31 December - - 13,789 13,789
206
Annual Report 2022

31 DECEMBER 2022
(c) Other lending and factoring receivables and advances to group employees
Other lending and factoring receivables
2022
Performing:
- Strong 34,009 - - 34,009
- Satisfactory 12,043 - - 12,043
Non-performing:
- Default - - 10,563 10,563
- Individually impaired - - 2,270 2,270
Total 46,052 - 12,833 58,885
2021
Performing:
- Strong 56,676 - - 56,676
- Satisfactory 12,386 5,239 - 17,625
Non-performing:
- Default - - 7,777 7,777
- Individually impaired - - 664 664
Total 69,062 5,239 8,441 82,742
207

31 DECEMBER 2022
(c) Other lending and factoring receivables and advances to group employees (cont’d.)
Other lending and factoring receivables (cont’d.)
Group
An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to other
financing is as follows:
2022
As at 1 January 69,062 5,239 8,441 82,742

New assets originated or purchased 102,748 233 895 103,876
(excluding write-offs) (125,758) (264) (1,711) (127,733)
Transfers of stages - (5,208) 5,208 -
As at 31 December 46,052 - 12,833 58,885
2021
As at 1 January 84,972 - 664 85,636

New assets originated or purchased 99,193 - - 99,193
(excluding write-offs) (99,500) (1,943) (644) (102,087)
Transfers of stages (15,603) 7,182 8,421 -
As at 31 December 69,062 5,239 8,441 82,742
2022
As at 1 January 13 - 664 677

New assets originated or purchased - - 1,786 1,786
(excluding write-offs) (13) - (180) (193)
As at 31 December - - 2,270 2,270
208
Annual Report 2022

31 DECEMBER 2022
(c) Other lending and factoring receivables and advances to group employees (cont’d.)
Other lending and factoring receivables (cont’d.)
Group
An analysis of changes in the gross carrying amount and the corresponding ECL allowances in relation to other
financing is as follows (cont’d.):
2021
As at 1 January 53 - 664 717

As at 31 December 13 - 664 677
Advances to group employees
Group and Bank

2022 2021
RM’000 RM’000
Gross carrying amount 2 97
(d) Undrawn commitment
2022
Performing:
- Satisfactory 80,561 - - 80,561
Total 80,561 - - 80,561
2021
Performing:
- Satisfactory 72,017 - - 72,017
- Non-rated 30,000 - - 30,000
Total 102,017 - - 102,017
209

31 DECEMBER 2022
(d) Undrawn commitment (cont’d.)
2022
Performing:
- Satisfactory 170,561 - - 170,561
Total 170,561 - - 170,561
2021
Performing:
- Satisfactory 155,517 - - 155,517
- Non-rated 30,000 - - 30,000
Total 185,517 - - 185,517
An analysis of changes in the outstanding exposure and the corresponding ECL allowances in relation to undrawn
commitment is as follows:
2022
Outstanding exposure RM’000 RM’000 RM’000 RM’000
As at 1 January 102,017 - - 102,017

New exposures 257,411 - - 257,411
Exposures derecognised or matured/
lapsed (excluding write-offs) (278,867) - - (278,867)
As at 31 December 80,561 - - 80,561
2021
As at 1 January 158,900 - - 158,900

New exposures 112,192 - - 112,192
As at 31 December 102,017 - - 102,017
210
Annual Report 2022

31 DECEMBER 2022
(d) Undrawn commitment (cont’d.)
An analysis of changes in the outstanding exposure and the corresponding ECL allowances in relation to undrawn
commitment is as follows (cont’d.):

2022
As at 1 January 185,517 - - 185,517

New exposures 278,911 - - 278,911
As at 31 December 170,561 - - 170,561
2021
As at 1 January 226,400 - - 226,400

New exposures 138,192 - - 138,192
As at 31 December 185,517 - - 185,517
2022
New exposures 89 - - 89
Exposures derecognised or repaid
2021
Exposures derecognised or repaid
Impact of net remeasurement 7 - - 7
211

31 DECEMBER 2022
9.3 COVID-19 customer relief and support measures
As at 31 December 2022
Individuals Corporates
Stage 1 Total Stage 1 Stage 2 Total
Group and Bank RM’000 RM’000 RM’000 RM’000 RM’000
Total payment moratoriums and

repayment assistances 18,041 18,041 68,328 63,383 131,711
Matured and repaying according to
revised schedules 3,001 3,001 50,296 63,383 113,679
Resume repayment as per original
schedules 15,040 15,040 18,032 - 18,032
As a percentage of total:
revised schedules 17% 17% 74% 100% 86%
Resume repayment as per original
schedules 83% 83% 26% - 14%
100% 100% 100% 100% 100%
As at 31 December 2021
Individuals Corporates
Stage 1 Total Stage 1 Stage 2 Total
Group and Bank RM’000 RM’000 RM’000 RM’000 RM’000
Total payment moratoriums and

repayment assistances 24,797 24,797 109,775 63,073 172,848
revised schedules 15,546 15,546 33,591 - 33,591
Extended 9,251 9,251 76,184 63,073 139,257
As a percentage of total:
revised schedules 63% 63% 31% - 19%
Extended 37% 37% 69% 100% 81%
100% 100% 100% 100% 100%
212
Annual Report 2022

31 DECEMBER 2022
10. BALANCES DUE FROM CLIENTS AND BROKERS
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Balances due from clients and brokers 430,415 337,276 430,254 337,181
Less: Allowance for ECL (2,777) (2,811) (2,777) (2,811)
427,638 334,465 427,477 334,370
10.1 ECL allowance for balance due from clients and brokers are as follows:
An analysis of changes in the ECL allowances in relation to balances due from clients and brokers is as follows:
Non-Credit Credit
Impaired Impaired Total
Group and Bank RM’000 RM’000 RM’000
2022
ECL allowances
As at 1 January 1,535 1,276 2,811
Charged during the financial year 175 609 784
Written back during the financial year (179) (624) (803)
Written off during the financial year - (15) (15)
As at 31 December 1,531 1,246 2,777
Non-Credit Credit
Group and Bank RM’000 RM’000 RM’000
2021
ECL allowances
As at 1 January 1,553 4,670 6,223
Charged during the financial year 290 533 823
Written back during the financial year (308) (446) (754)
Written off during the financial year - (3,481) (3,481)
As at 31 December 1,535 1,276 2,811
213

31 DECEMBER 2022
11. OTHER ASSETS
Group Bank
2022 2021 2022 2021
Note RM’000 RM’000 RM’000 RM’000
Assets segregated for customers (a) 56,596 93,849 - -

Interest/income receivable 9,602 9,556 9,424 9,546
Amounts due from subsidiary companies (b) - - 30,581 29,716
Amounts due from related parties (c) 49 57 49 57
Prepayments and deposits 21,217 20,169 18,496 17,809
Other debtors (d) 107,515 58,521 73,927 36,371
Treasury trade receivables - 49,892 - 49,892
Amounts due from trustees 433 12,000 - -
195,412 244,044 132,477 143,391
Allowance for ECL
- Other debtors 11.1 (11,659) (5,222) (6,804) (5,222)
- Amount due from subsidiary companies 11.2 - - (240) (240)
183,753 238,822 125,433 137,929
11.1 ECL allowance for other debtors are as follows:
2022
Non-Credit Credit
Group Impaired Impaired Total
ECL allowances RM’000 RM’000 RM’000
As at 1 January 223 4,999 5,222

New assets originated or purchased 1,764 5,168 6,932
Assets derecognised or repaid (excluding write-offs) - (1,688) (1,688)
Transfer of stages (1,583) 1,583 -
Impact of net remeasurement - 1,193 1,193
As at 31 December 404 11,255 11,659
2021
Non-Credit Credit
Group Impaired Impaired Total
As at 1 January 145 6,003 6,148

New assets originated or purchased 1,054 251 1,305
Written off - (189) (189)
Transfer of stages (976) 976 -
As at 31 December 223 4,999 5,222
214
Annual Report 2022

31 DECEMBER 2022
11. OTHER ASSETS (CONT’D.)
11.1 ECL allowance for other debtors are as follows (cont’d.):
2022
Non-Credit Credit
Bank Impaired Impaired Total
As at 1 January 223 4,999 5,222

Transfer of stages (1,583) 1,583 -
As at 31 December 404 6,400 6,804
2021
Non-Credit Credit
Bank Impaired Impaired Total
As at 1 January 146 6,004 6,150

Written off - (189) (189)
Transfer of stages (978) 978 -
As at 31 December 223 4,999 5,222
11.2 ECL allowance for amounts due from subsidiary companies are as follows:
2022
As at 1 January / 31 December 240 - - 240
2021

Impact of net remeasurement 14 - - 14
215

31 DECEMBER 2022
11. OTHER ASSETS (CONT’D.)
(a) Assets segregated for customers
These represent margin deposits paid by a subsidiary company to Bursa Malaysia Derivatives Clearing Berhad.
(b) Amounts due from subsidiary companies
Included in the amount due from subsidiary companies is the term loan given to a subsidiary company, Kenanga
Investors Berhad. The loan is unsecured and bears interest of 1.0% per annum above cost of funds. The tenure for the
loan is 6 years from 5 July 2019.
(c) Amounts due from related parties
Amounts due from all related parties comprised of payments of expenses made on behalf of these related parties and
are unsecured, non-interest bearing and repayable on demand.
(d) Other debtors
Included in other debtors are receivables from corporate advisory billings which are non-interest bearing and generally
on 90 day (2021: 90 day) terms. They are recognised at their original invoice amounts which represent their fair values
on initial recognition.
12. STATUTORY DEPOSIT WITH BANK NEGARA MALAYSIA (“BNM”)
The non-interest bearing statutory deposit is maintained with BNM in compliance with Section 26(2)(c) of the Central Bank
of Malaysia Act 2009. The amount is determined as a set percentage of net eligible liabilities.
13. INVESTMENTS IN SUBSIDIARIES
2022 2021
Bank RM’000 RM’000
Unquoted shares:
At cost 73,064 73,064
Less: Accumulated impairment losses (12,252) (12,252)
60,812 60,812
216
Annual Report 2022

31 DECEMBER 2022
13. INVESTMENTS IN SUBSIDIARIES (CONT’D.)
Details of the subsidiary companies are as follows:
Effective equity
interest
2022 2021
Name Principal activities % %
Local subsidiary companies
Kenanga Futures Sdn Bhd Futures broker 100 100
Kenanga Nominees (Asing) Sdn Bhd Provision of nominee services 100 100
Kenanga Nominees (Tempatan) Sdn Bhd Provision of nominee services 100 100
Kenanga Private Equity Sdn Bhd Private equity management 100 100
ECML Berhad Dealings in securities and derivatives, and provision 100 100
of corporate finance and other advisory services
Kenanga Digital Sdn Bhd (f.k.a. ECML Online digital platform or portal business and 100 100
Nominees (Tempatan) Sdn Bhd) provision of information technology services
Avenue Kestrel Sdn Bhd Stock broking business 100 100
K & N Kenanga Holdings Berhad Investment holding 100 100
The subsidiary company of K & N Kenanga Holdings Berhad is:
SSSB Management Services Sdn Bhd Stock broking business 100 100
Kenanga Management & Services Investment in property and provision of 100 100
Sdn Bhd management and maintenance services
Kenanga Investors Berhad Promotion and management of collective 100 100

investment schemes and management of
investment funds
The subsidiary companies of Kenanga Investors Berhad are:
Kenanga Islamic Investors Berhad Management of Islamic collective investment 100 100
schemes and Islamic investment funds
I-VCAP Management Sdn Bhd Provision of Shariah-compliant investment 100 100

(“I-VCAP”) management services
KUT Nominees (Tempatan) Sdn Bhd Provision of nominee services 100 100
KUT Nominees (Asing) Sdn Bhd Provision of nominee services 100 100
Kenanga Funds Berhad Promotion and management of unit trust funds and 100 100
the management of investment funds
217

31 DECEMBER 2022
13. INVESTMENTS IN SUBSIDIARIES (CONT’D.)
Details of the subsidiary companies are as follows (cont’d.):
Effective equity
interest
2022 2021
Name Principal activities % %
Local subsidiary companies (cont’d.)
Kenanga Capital Sdn Bhd Licensed money lender 100 100
The subsidiary company of Kenanga Capital Sdn Bhd is:
Kenanga Capital Islamic Sdn Bhd Islamic factoring and leasing 51 51
Overseas subsidiary company
Rakuten Trade Singapore Pte. Ltd. * Dealing in securities, advising in corporate finance, 50 100
(Formally known as (“f.k.a.”) Kenanga securities financing and providing custodial
Singapore Pte. Ltd.) services for securities
* Audited by an affiliate of Messrs. Ernst & Young PLT

Kenanga Singapore Pte. Ltd. has changed its name to Rakuten Trade Singapore Pte. Ltd. (“RTSPL”) effective from 26 January 2022 and RTSPL became
a joint venture entity arising from the change of the Bank’s shareholding in RTSPL from 100% to 50% while Rakuten Securities, Inc.’s shareholding is
50% (Note 15 (c)).
14. INVESTMENTS IN ASSOCIATES
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Unquoted shares at cost 69,834 88,644 68,435 68,435

Share of post acquisition gain/(loss) 14,926 (6,919) - -
Share of changes in other comprehensive (loss)/
income (4,500) 5,956 - -
Dividends received (102) (102) - -
Foreign exchange differences 24,074 19,202 - -
104,232 106,781 68,435 68,435
Less: Accumulated impairment losses (4,549) (19,610) - -
99,683 87,171 68,435 68,435
Represented by:
Share of net tangible assets 99,683 87,171
218
Annual Report 2022

31 DECEMBER 2022
14. INVESTMENTS IN ASSOCIATES (CONT’D.)
(a) Details of the associates are as follows:
Effective equity
interest
2022 2021
Name Place of incorporation Principal activities % %
Kenanga Investment Sri Lanka Investment banking related 45.0 45.0

Corporation Ltd * activities
Al Wasatah Al Maliah Kingdom of Saudi Arabia Dealing as principal and 29.6 29.6
Company * (“Wasatah provision of underwriting,
Capital”) arranging, managing
investment funds and
custodian services
Kenanga Vietnam Securities Vietnam Securities, brokerage - 49.0

Joint Stock Corporation *^ depository and advisory
business
* Audited by firms other than Messrs. Ernst & Young PLT

^ On 12 May 2022, K & N Kenanga Holdings Berhad (“KNKH”), a wholly-owned subsidiary of the Bank, entered into a Share Purchase Agreement
with Hung An Dien Co. Ltd. (“HADCL”), a company organised and existing under the laws of Vietnam, to dispose 6,615,000 shares in Kenanga
Vietnam Securities Joint Stock Corporation (“KVS”), representing 49% of the entire issued and outstanding capital of KVS to HADCL.
Consequential to the disposal, KVS ceased to be an associate company of KNKH. The Group recorded a net gain on disposal of associate of
RM9.1 million as disclosed in Note 32 (c).
The detail of the disposal of associate is as follows:
RM’000
Unquoted shares at cost 18,810

Share of post acquisition losses (3,532)
Foreign exchange differences (217)
Less: Accumulated impairment losses (15,061)
Net assets disposed -
Sales proceeds from disposal 9,588
Less: Expenses incurred in relation to the disposal (471)
Net gain on disposal 9,117
219

31 DECEMBER 2022
(a) Details of the associates are as follows (cont’d.):
The Group and the Bank carried out an impairment assessment on the associates in accordance with the accounting
policy stated in Note 3.4(l). The recoverable amount is based on the Group’s share of net tangible assets of the
associates. Based on management’s assessment, the Group and the Bank have made adequate provision for
impairment loss on the investments as at the financial year end.
(b) Summarised financial information of the material associate is as follows:
The summarised financial information represents the amounts in the MFRS financial statements of the material
associate and not the Group’s share of those amounts.
(i) Summarised statement of financial position
Wasatah Capital
2022 2021
RM’000 RM’000
Current assets 218,134 90,389

Non-current assets 128,266 196,093
Total assets 346,400 286,482
Current liabilities 25,923 13,704

Non-current liabilities 4,809 3,720
Total liabilities 30,732 17,424
Net assets * 315,668 269,058
* The net assets are net of zakat expenses which are not shared by non-Saudi shareholders in accordance with the regulations of Zakat
department of Zakat & Income Tax as applicable in the Kingdom of Saudi Arabia. Therefore, the net assets will not represent the Group’s
and the Bank’s share of net assets in Wasatah Capital as disclosed in Note 14(b)(iii) below. The difference will be the total zakat expenses
that were fully borne by the Saudi shareholders.
(ii) Summarised statement of profit or loss and other comprehensive income
Wasatah Capital
2022 2021
RM’000 RM’000
Revenue 70,091 40,832

Profit before taxation 38,416 20,811
Tax (expense)/credit (3,577) 177
Other comprehensive income 189 20,617
Total comprehensive income 35,028 41,605
220
Annual Report 2022

31 DECEMBER 2022
(b) Summarised financial information of the material associate is as follows (cont’d.):
(iii) Reconciliation of the summarised financial information presented above to the carrying amount of the
Group’s interest in the material associate
Wasatah Capital
2022 2021
RM’000 RM’000
Net assets at 1 January 312,124 261,598

Profit before taxation 38,416 20,811
Other comprehensive income 189 20,617
Movement of foreign exchange reserve 16,828 9,098
Net assets at 31 December 367,557 312,124
Interest in Wasatah Capital 29.60% 29.60%

Share of net assets at 31 December 108,797 92,389
Accumulated Group’s share of tax expense (5,031) (1,454)
Accumulated impairment losses (4,549) (4,549)
Carrying value of the Group’s interest in Wasatah 99,217 86,386
Carrying value of other associates 466 785
Total carrying value of Group’s interest in associates 99,683 87,171
(c) Aggregate information of associates that are not individually material
2022 2021
RM’000 RM’000
The Group’s share of results in associates, representing share of total

comprehensive loss 8 5
221

31 DECEMBER 2022
15. INVESTMENT IN JOINT VENTURES
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Unquoted shares
Add: Subscription of new shares in a joint venture
company 1,550 - 1,550 -
41,550 40,000 41,550 40,000
Cumulative share of results (14,981) (8,031) - -

At the end of financial year 26,569 31,969 41,550 40,000
(a) The summarised income and expenses of the joint ventures are as follows:
Group
2022 2021
RM’000 RM’000
Revenue 31,645 59,194

(Loss)/profit after taxation (13,900) 14,500
(b) The summarised assets and liabilities of the joint ventures are as follows:
Group
2022 2021
RM’000 RM’000
Total assets 566,646 539,226

(c) Details of the joint ventures held by the Bank are as follows:
Percentage (%)
of equity held
2022 2021
Name % % Principal activities
Rakuten Trade Sdn Bhd 50 50 Dealing in securities restricted to listed securities

and investment advice
Rakuten Trade Singapore Pte. Ltd. 50 100 Dealing in securities, advising in corporate finance,
(Formally known as (“fka”) Kenanga securities financing and providing custodial
Singapore Pte. Ltd.) services for securities
(Note 13)
222
16. PROPERTY, PLANT AND EQUIPMENT
Furniture Capital
Freehold Motor Computer Office and work-in-
land Building vehicles hardware equipment fittings Renovations progress Total
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2022
Cost
At 1 January 2022 81,910 46,830 6,430 33,098 28,159 27,494 35,267 3,638 262,826
Transfer* - - - 900 - - - (909) (9)
Additions - - 199 1,812 658 52 444 2,010 5,175
Reclassification - - - 2,384 98 314 1,096 (3,892) -
Disposals/write-off - - (1,907) (1,057) (829) (1,512) (2,083) - (7,388)
At 31 December 2022 81,910 46,830 4,722 37,137 28,086 26,348 34,724 847 260,604
Accumulated depreciation
At 1 January 2022 - 5,373 5,503 23,514 18,466 21,444 25,051 - 99,351
Transfer* - - - 33 - - - - 33
Depreciation charge for the
financial year (Note 33) - 937 325 4,785 2,152 1,307 1,966 - 11,472
Disposals/write-off - - (1,907) (1,044) (678) (1,428) (1,416) - (6,473)
At 31 December 2022 - 6,310 3,921 27,288 19,940 21,323 25,601 - 104,383
Net carrying amount

At 31 December 2022 81,910 40,520 801 9,849 8,146 5,025 9,123 847 156,221
223
31 DECEMBER 2022
Annual Report 2022
16. PROPERTY, PLANT AND EQUIPMENT (CONT’D.)
224
We Are
Kenanga
Furniture Capital
31 DECEMBER 2022
2021
Cost
Our Leaders
Message From
At 1 January 2021 81,910 46,830 6,808 29,051 27,631 27,860 33,693 1,979 255,762
Transfer - - - - - - - (1,740) (1,740)
Additions - - 76 5,740 455 390 1,678 3,891 12,230
Reclassification - - - 345 114 - 33 (492) -
Disposals/write-off - - (454) (2,038) (41) (756) (137) - (3,426)
At 31 December 2021 81,910 46,830 6,430 33,098 28,159 27,494 35,267 3,638 262,826
Approach
Our Sustainability
At 1 January 2021 - 4,437 5,666 21,048 16,352 20,651 22,678 - 90,832

Governed
Disposals/write-off - - (454) (2,038) (32) (627) (44) - (3,195)

How We Are
At 31 December 2021 - 5,373 5,503 23,514 18,466 21,444 25,051 - 99,351
Net carrying amount

At 31 December 2021 81,910 41,457 927 9,584 9,693 6,050 10,216 3,638 163,475
Financial
Statements
Information
Shareholders’
Additional
Information
Furniture Capital
Bank RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2022
Cost
At 1 January 2022 81,910 46,830 6,174 30,364 26,843 25,531 31,420 3,371 252,443
Transfer* - - - 900 - - - (909) (9)
Additions - - - 1,536 582 47 369 302 2,836
Reclassification - - - 2,266 - - 191 (2,457) -
Disposals/write-off - - (1,738) (966) (826) (1,513) (2,083) - (7,126)
At 31 December 2022 81,910 46,830 4,436 34,100 26,599 24,065 29,897 307 248,144
At 1 January 2022 - 5,374 5,313 21,363 17,571 20,139 23,059 - 92,819
Transfer* - - - 33 - - - - 33
Disposals/write-off - - (1,738) (966) (676) (1,428) (1,416) - (6,224)
At 31 December 2022 - 6,311 3,856 24,862 18,929 19,903 23,254 - 97,115
Net carrying amount

At 31 December 2022 81,910 40,519 580 9,238 7,670 4,162 6,643 307 151,029
225
31 DECEMBER 2022
Annual Report 2022
226
We Are
Kenanga
Furniture Capital
31 DECEMBER 2022
2021
Cost
Our Leaders
Message From
At 1 January 2021 81,910 46,830 6,614 25,732 26,297 25,190 29,717 1,979 244,269
Transfer - - - - - - - (1,740) (1,740)
Additions - - - 5,629 438 351 1,670 3,468 11,556
Reclassification - - - 189 114 - 33 (336) -
Disposals/write-off - - (440) (1,186) (6) (10) - - (1,642)
At 31 December 2021 81,910 46,830 6,174 30,364 26,843 25,531 31,420 3,371 252,443
Approach
Our Sustainability
At 1 January 2021 - 4,437 5,472 18,372 15,536 18,852 20,963 - 83,632

Governed
Disposals/write-off - - (440) (1,186) (6) (10) - - (1,642)

How We Are
At 31 December 2021 - 5,374 5,313 21,363 17,571 20,139 23,059 - 92,819
Net carrying amount

At 31 December 2021 81,910 41,456 861 9,001 9,272 5,392 8,361 3,371 159,624
Financial
Statements
* Transfer to/from computer software of RM909,000 and RM900,000 respectively.

Information
Shareholders’
Additional
Information
Annual Report 2022

31 DECEMBER 2022
17. INTANGIBLE ASSETS
Group Bank
2022 2021 2022 2021
Note RM’000 RM’000 RM’000 RM’000
Total intangible assets

Goodwill (a) 241,027 241,277 252,909 252,909
Merchant banking licence (b) 52,500 52,500 52,500 52,500
Fund management contracts (c) 4,169 4,169 - -
Computer software and work- in-progress (d) 28,273 29,767 25,723 26,577
Trading and clearing rights for derivatives
broking (e) 416 416 - -
Client relationships (f) 2,834 2,932 - -
329,219 331,061 331,132 331,986
(a) Goodwill
Cost
Acquisition of a subsidiary - 495 - -
Reclassified to client relationships (250) - - -
Accumulated impairment loss

At beginning/end of the financial year 35,767 35,767 35,767 35,767
Net carrying amount 241,027 241,277 252,909 252,909
(b) Merchant banking licence

Carrying amount
At beginning/end of the financial year 52,500 52,500 52,500 52,500
(c) Fund management contracts

Carrying amount
At beginning/end of the financial year 4,169 4,169 - -
227

31 DECEMBER 2022
17. INTANGIBLE ASSETS (CONT’D.)
Group Bank
2022 2021 2022 2021
Note RM’000 RM’000 RM’000 RM’000
(d) Computer software and work-in-

progress
(i) Computer software
Cost
Transfer* 9 - 9 -
Additions 5,333 4,584 4,187 4,145
Reclassification 4,855 709 4,855 361
Disposals/write-off (150) (2,732) (150) (75)
Adjustment to expenses (1,259) - - -
Accumulated amortisation
Transfer* (33) - (33) -
Amortisation (Note 33) 6,035 5,092 5,508 4,642
Disposals/write-off (82) (1,975) (82) (75)
Net carrying amount 22,983 20,115 22,357 18,849
(ii) Work-in-progress
Carrying amount
At beginning of the financial year 9,652 1,304 7,728 -
Transfer from property, plant and
equipment - 1,740 - 1,740
Addition 3,459 7,317 3,459 6,349
Reclassification (4,855) (709) (4,855) (361)
Disposals/write-off (1,210) - (1,210) -
Adjustment to expenses (1,756) - (1,756) -
* Transfer from property, plant and equipment work-in-progress of RM909,000 and transfer to computer hardware of RM900,000.
228
Annual Report 2022

31 DECEMBER 2022
Group Bank
2022 2021 2022 2021
Note RM’000 RM’000 RM’000 RM’000
(e) Trading and clearing rights for

derivatives broking
Carrying amount
At beginning/end of the financial year 416 416 - -
(f) Client relationships

Carrying amount
At beginning of the financial year 2,932 2,525 - -
Reclassified from goodwill 250 - - -
Reclassified from deferred tax 79 939 - -
Amortisation (Note 33) (427) (532) - -
At end of the financial year 2,834 2,932 - -
(g) Impairment test on intangible assets
The intangible assets consist of:
Goodwill and client relationships
Goodwill and client relationships have been allocated to the following CGUs:
Group
2022 2021
RM’000 RM’000
Stockbroking 147,459 147,459

Investment banking 55,651 55,651
Investment management 40,751 41,099
243,861 244,209
Merchant banking licence
- Merchant banking licence which is allocated to the Bank’s stockbroking and investment banking CGUs represents
contribution to BNM for a licence to carry on merchant banking business to transform the Bank from a Universal
Broker into an Investment Bank.
Fund management contracts
- Intangible asset relating to fund management contracts arising from the acquisition of one of the Bank’s subsidiary
operations is allocated to the unit trust and asset management (investment management) CGU.
229

31 DECEMBER 2022
(g) Impairment test on intangible assets (cont’d.)
Trading and clearing rights
- The value of trading and clearing rights issued by Bursa Malaysia Derivatives Berhad which is allocated to the
futures broking CGU.

All of the above intangible assets have indefinite useful lives and an annual impairment review has been carried out in
accordance with MFRS 136 Impairment of Assets and MFRS 138 Intangible Assets.
Client relationships which have definite useful lives and amortised over the estimated remaining useful lives.
Key assumptions used in value-in-use calculations
For annual impairment testing purposes, the recoverable amounts of the CGUs, which are reportable business
segments, are determined based on their value-in-use. The value-in-use is computed by discounting the future cash
flows of the unit, which is based on financial budget and projections approved by the Board.
The following describes key assumptions on which management has based its cash flow projections to undertake
impairment testing of intangible assets:
(i) Cash flow projections and growth rates
Cash flow projections for the first to third year are based on the most recent three years financial budget
and business plan approved by the Board, taking into account projected regulatory capital requirements.
Cash flows for the fourth to fifth year are extrapolated using growth rates in revenue and expenses of the
business. Cash flows beyond the fifth year are projected to remain constant and estimated as a terminal value
by discounting future cash flows to present value.
(ii) Discount rate
The discount rate used is based on the business units’ pre-tax weighted average cost of capital plus an
appropriate risk premium at the date of assessment at 8.59% (2021: 9.30%) per annum.
(h) Sensitivity to changes in assumptions
Management believes that a reasonably possible change in any of the above key assumptions would not cause,
in overall basis, the recoverable amounts of the intangible assets to be lower than the carrying values of the CGUs.
230
Annual Report 2022

31 DECEMBER 2022
18. RIGHT-OF-USE ASSETS
Building Equipment Total

Group RM’000 RM’000 RM’000
2022
Cost
At 1 January 2022 33,507 - 33,507
Additions 20,170 - 20,170
Derecognition (19,422) - (19,422)
At 31 December 2022 34,255 - 34,255
At 1 January 2022 15,034 - 15,034
Amortisation for the financial year (Note 33) 8,039 - 8,039
Derecognition (13,782) - (13,782)
At 31 December 2022 9,291 - 9,291
Net carrying amount

At 31 December 2022 24,964 - 24,964
2021
Cost
At 1 January 2021 33,167 290 33,457
Additions 11,540 - 11,540
Derecognition (11,200) (290) (11,490)
At 31 December 2021 33,507 - 33,507
At 1 January 2021 9,985 290 10,275
Amortisation for the financial year (Note 33) 8,465 - 8,465
Derecognition (3,416) (290) (3,706)
At 31 December 2021 15,034 - 15,034
Net carrying amount

At 31 December 2021 18,473 - 18,473
231

31 DECEMBER 2022
18. RIGHT-OF-USE ASSETS (CONT’D.)
Building
2022 2021
Bank RM’000 RM’000
Cost
At 1 January 29,606 30,864
Additions 17,646 9,048
Derecognition (19,195) (10,306)
At 31 December 28,057 29,606
At 1 January 14,402 9,528
Amortisation for the financial year (Note 33) 6,660 7,394
Derecognition (13,545) (2,520)
At 31 December 7,517 14,402
Net carrying amount

At 31 December 20,540 15,204
19. DEFERRED TAXATION
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
At 1 January 30,605 14,127 15,219 8,722

Reclassification * (79) - - -
Recognised in profit or loss (Note 40) (7,759) 11,957 (4,606) 1,976
Recognised in other comprehensive income 2,353 4,521 2,353 4,521
* Arising from Purchase Price Allocation exercise on I-VCAP, the Group had reclassified deferred tax arising from a business combination from cost of
investment in subsidiary amounting to RM79,000.
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Deferred tax assets 25,184 30,605 12,966 15,219

Deferred tax liabilities (64) - - -
25,120 30,605 12,966 15,219
232
Annual Report 2022

31 DECEMBER 2022
19. DEFERRED TAXATION (CONT’D.)
Deferred tax assets and liabilities prior to offsetting are summarised as follows:
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Deferred tax assets 36,691 42,818 24,350 27,301

Deferred tax liabilities (11,571) (12,213) (11,384) (12,082)
25,120 30,605 12,966 15,219
The components and movements of deferred tax assets and liabilities during the financial year prior to offsetting are as
follows:
Deferred tax liabilities of the Group:
Excess of
capital Intangible
allowances assets/
Fair value over Right-of-use
reserve depreciation assets Total
RM’000 RM’000 RM’000 RM’000
At 1 January 2022 (199) (8,449) (3,565) (12,213)

Transfer to intangible assets - - (79) (79)
Recognised in profit or loss - 1,803 (1,281) 522
Recognised in other comprehensive income 199 - - 199
At 31 December 2022 - (6,646) (4,925) (11,571)
At 1 January 2021 (4,720) (6,083) (5,121) (15,924)

Disposal of a subsidiary (Note 13) - 156 - 156
Recognised in profit or loss - (2,522) 1,556 (966)
Recognised in other comprehensive income 4,521 - - 4,521
At 31 December 2021 (199) (8,449) (3,565) (12,213)
233

31 DECEMBER 2022
follows (cont’d.):
Deferred tax assets of the Group:
Unabsorbed
Impairment capital Intangible
allowance allowances assets/
Fair value and and tax Lease
reserve provisions losses liabilities Total
RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2022 152 39,561 - 3,105 42,818

Recognised in profit or loss - (17,043) 7,178 1,584 (8,281)
Recognised in other comprehensive income 2,154 - - - 2,154
At 31 December 2022 2,306 22,518 7,178 4,689 36,691
At 1 January 2021 152 24,607 146 5,146 30,051

Transfer to intangible assets - - - (939) (939)
Recognised in profit or loss - 14,954 (146) (1,102) 13,706
At 31 December 2021 152 39,561 - 3,105 42,818
Deferred tax liabilities of the Bank:
Excess of
capital
allowances
Fair value over Right-of-use
reserve depreciation assets Total
RM’000 RM’000 RM’000 RM’000
At 1 January 2022 (199) (8,234) (3,649) (12,082)

Recognised in profit or loss - 1,780 (1,281) 499
Recognised in other comprehensive income 199 - - 199
At 31 December 2022 - (6,454) (4,930) (11,384)
At 1 January 2021 (4,720) (5,725) (5,121) (15,566)

Recognised in profit or loss - (2,509) 1,472 (1,037)
Recognised in other comprehensive income 4,521 - - 4,521
At 31 December 2021 (199) (8,234) (3,649) (12,082)
234
Annual Report 2022

31 DECEMBER 2022
follows (cont’d.):
Deferred tax assets of the Bank:
Unabsorbed
capital Impairment
allowances allowance
Fair value and tax and Lease
reserve losses provisions liabilities Total
RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2022 - - 23,257 4,044 27,301

Recognised in profit or loss - 7,205 (13,878) 1,568 (5,105)
Recognised in other comprehensive income 2,154 - - - 2,154
At 31 December 2022 2,154 7,205 9,379 5,612 24,350
At 1 January 2021 - - 19,142 5,146 24,288

Recognised in profit or loss - - 4,115 (1,102) 3,013
At 31 December 2021 - - 23,257 4,044 27,301
Deferred tax assets have not been recognised in respect of the following items:
Group
2022 2021
RM’000 RM’000
Unutilised tax losses carried forward 10,793 8,101

Unutilised capital allowances carried forward 2,280 2,180
13,073 10,281
On 27 December 2018, the Finance Act 2018 was gazetted and section 10 of the Finance Act 2018 made amendments
to Section 44 of Income Tax Act 1967 (“ITA”). Effective year of assessment (“YA”) 2019, the ability to carry forward the
unabsorbed losses is restricted to a maximum period of ten (10) consecutive years. The unabsorbed capital allowances for
the Group are not subject to 10 year limitation period and available for offsetting against future taxable profits of the Group.
These utilisation of carried forward tax losses and allowances are also subject to no substantial change in shareholding of
the Group under the Income Tax Act. 1967 and guidelines issued by the tax authority.
235

31 DECEMBER 2022
20. DEPOSITS FROM CUSTOMERS
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Fixed term deposits 2,350,345 2,464,706 2,468,356 2,516,015

Short term money deposits 614,784 563,833 635,000 625,846
Negotiable instruments of deposits 128,684 68,891 128,684 68,891
Call money deposits 67,265 39,848 67,265 39,848
3,161,078 3,137,278 3,299,305 3,250,600
(i) The maturity structure is as follows:

Due within six months 2,692,617 2,268,323 2,830,844 2,381,645
Six months to one year 286,971 747,040 286,971 747,040
More than one year 181,490 121,915 181,490 121,915
3,161,078 3,137,278 3,299,305 3,250,600
(ii) The deposits are sourced from the

following types of customers:
Government and statutory bodies 740,926 671,186 740,926 671,186
Individuals 143,417 98,500 143,417 98,500
Business enterprises 745,665 1,007,435 745,665 1,007,435
Non-bank financial institutions 1,266,173 1,160,157 1,266,173 1,160,157
Subsidiaries and related companies 264,897 200,000 403,124 313,322
3,161,078 3,137,278 3,299,305 3,250,600
21. DEPOSITS AND PLACEMENTS OF BANKS AND OTHER FINANCIAL INSTITUTIONS
Group and Bank

2022 2021
RM’000 RM’000
Licensed investment banks 50,000 -

Other financial institutions 365,359 593,126
Bank Negara Malaysia - 59,736
415,359 652,862
236
Annual Report 2022

31 DECEMBER 2022
22. BALANCES DUE TO CLIENTS AND BROKERS
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Balances due to clients and brokers 732,709 665,968 262,976 265,296
Balances due to clients and brokers represent amounts payable in respect of outstanding contracts entered into on behalf
of these clients where settlements have yet to be made. These balances are generally on 1 to 2 trading days (2021: 1 to 2
trading days) term.
23. DERIVATIVE FINANCIAL LIABILITIES
Group and Bank

2022 2021
RM’000 RM’000
At fair value
Dual currency investment - Options 10 3
Equity related contract - Swaps 798 5,223
16,496 28,760
Contract/notional amount
Dual currency investment - Options 2,126 1,361
Equity related contract - Swaps 11,438 55,251
173,286 236,976
The contractual or underlying notional amounts of derivative financial liabilities held at fair value through profit or loss reflect
the value of transactions outstanding as at reporting date, and do not represent amounts at risk.
237

31 DECEMBER 2022
24. OTHER LIABILITES
Group Bank
2022 2021 2022 2021
Note RM’000 RM’000 RM’000 RM’000
Interest/income payable 16,041 13,301 16,074 13,032

Retention for contra losses 16 17 16 17
Structured products 2,879 3,168 2,879 3,168
Treasury trade payables - 49,892 - 49,892
Accruals and provisions (i) 184,440 285,642 60,859 101,232
Amount held in trust on behalf of:
- Dealer’s representatives 88,115 122,029 88,115 122,029
Securities borrowing and lending 11,635 28,867 11,635 28,867
Deposits and other creditors 63,226 70,783 69,109 65,923
Amount due to trustees 906 - - -
Amount due to subsidiaries - - 40 1
367,258 573,699 248,727 384,161
(i) Included in accruals and provisions, the movements of provisions are as follows:
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
As at 1 January 59,954 51,885 42,533 42,703

Provisions made, net 29,572 56,204 8,805 39,189
Utilisations (55,828) (48,135) (39,500) (39,359)
As at 31 December 33,698 59,954 11,838 42,533
The nature of the provisions made above are for provision for annual leave, bonus, potential liabilities and directors’
fee.
238
Annual Report 2022

31 DECEMBER 2022
25. BORROWINGS
Group Bank
2022 2021 2022 2021
Note RM’000 RM’000 RM’000 RM’000
Secured:
Revolving bank loan (a) 8,000 19,200 8,000 19,200
Unsecured:
Revolving bank loans (b) 17,500 40,000 - -
Subordinated notes (c) 180,500 185,500 180,500 185,500
206,000 244,700 188,500 204,700
(a) The revolving bank loan amounting to RM8.0 million (2021: RM19.2 million) bears interest of 0.5% (2021: 0.5%) per
annum above cost of funds. The loan is secured by a first party legal charge over Kenanga Tower, the corporate office
building of Kenanga Investment Bank Berhad. The tenure for the loan is 7 years from 24 May 2016.
(b) The revolving bank loans bear interest of 1.50% to 2.00% over cost of funds (2021: 1.50% to 2.00% over cost of
funds) plus cost of maintaining statutory reserve and liquidity requirements and are payable on maturity of the loans.
The maximum tenure for the loans is 3 months (2021: 3 months).
(c) On 27 March 2017, the Bank established a RM250 million Tier 2 Subordinated Note Programme in nominal value which
has a tenure of up to thirty (30) years.
The outstanding subordinated notes under this programme as at 31 December 2022 are as follows:
Issue date Tranches RM’000 Rate (p.a.) Tenure
29 January 2018 2 10,000 6.60%

18 September 2018 3 10,000 6.40% 10 years
20 March 2020 4 50,000 5.25% (non-callable
28 August 2020 5 47,000 4.40% 5 years)
28 May 2021 6 63,500 4.48%
180,500
239

31 DECEMBER 2022
26. LEASE LIABILITIES
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
As at 1 January 18,829 23,382 15,473 21,442

Additions 20,170 11,540 17,646 9,048
Accretion of interest 894 1,064 743 1,006
Payments (8,922) (9,325) (7,448) (8,191)
Derecognition (5,647) (7,832) (5,657) (7,832)
As at 31 December 25,324 18,829 20,757 15,473
The maturity analysis of lease liabilities is disclosed as below:
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Within 1 year 7,772 7,121 6,445 6,180

Between one and five years 17,552 11,708 14,312 9,293
25,324 18,829 20,757 15,473
27. SHARE CAPITAL
Group and Bank

Number of Ordinary Shares Amount
2022 2021 2022 2021
‘000 ‘000 RM’000 RM’000
Issued and fully paid:

Ordinary shares
At 1 January 735,762 722,741 253,834 246,249
Issuance of shares pursuant to ESS exercise - 13,021 - 7,585
At 31 December 735,762 735,762 253,834 253,834
Treasury shares
Group and Bank

Number of Ordinary Shares Amount
2022 2021 2022 2021
‘000 ‘000 RM’000 RM’000
At 1 January 10,476 14,807 13,064 10,458

Share buy back 15,682 11,933 16,097 14,923
Transfer to staff pursuant to ESS exercise (12,674) (16,264) (15,623) (12,317)
At 31 December 13,484 10,476 13,538 13,064
240
Annual Report 2022

31 DECEMBER 2022
27. SHARE CAPITAL (CONT’D.)
The shareholders of the Bank, via an ordinary resolution passed at the Annual General Meeting held on 11 June 2020, had
approved its plan to purchase its own shares up to 10% of existing total issued and paid-up share capital.
During the financial year, the Bank bought back 15,681,600 (2021: 11,933,200) ordinary shares at an average price of
RM1.0265 (2021: RM1.2505) from the open market. The share buy-back transactions were financed by internally generated
funds. As at 31 December 2022, the total number of shares held as treasury shares in accordance with the provisions of
Section 127 of the Companies Act 2016 was 13,484,300. Accordingly the adjusted issued and paid-up share capital of the
Company (excluding 13,484,300 treasury shares) as at 31 December 2022 was RM240,296,155 (2021: RM240,769,575)
comprising 722,278,299 (2021: 725,286,399) shares.
28. RESERVES
Group Bank
2022 2021 2022 2021
Note RM’000 RM’000 RM’000 RM’000
Non-distributable:
Capital reserve 88,938 88,938 153,863 153,863
Fair value reserve (a) (10,922) 6,590 (6,422) 634
Exchange reserve (b) 24,075 19,204 - -
Regulatory reserve (c) 17,192 18,921 17,192 18,921
ESS reserve 1,794 2,809 1,794 2,809
121,077 136,462 166,427 176,227
Distributable:
Retained profits 655,907 673,097 597,058 624,353
776,984 809,559 763,485 800,580
The nature and purpose of each category of reserves are as follows:
(a) Fair value reserve is in respect of unrealised fair value gains and losses on financial investments at FVOCI, net of tax
(b) The exchange reserve represents foreign exchange differences arising from the translation of the financial statements
of the associated companies.
(c) Regulatory reserve is maintained in addition to the impairment allowance for non-impaired credit exposures that has
been assessed and recognised in accordance with MFRS in compliance with BNM requirements.
241

31 DECEMBER 2022
29. OPERATING REVENUE
Revenue of the Bank comprises all types of revenue derived from brokerage, lending, treasury, investment, trading and other
banking activities undertaken by the Bank.
Revenue of the Group comprises all types of revenue derived from brokerage, lending, treasury, investment, trading and
investment management and other banking activities undertaken by the Group.
30. INTEREST INCOME
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000

- Interest income other than from recoveries from
impaired loans * 113,000 122,620 111,229 120,431
Money at call and deposit placements with
financial institutions 58,078 43,138 50,680 39,397
Financial investments measured at FVOCI 15,863 19,276 15,863 19,276
Financial investments at amortised cost 8,276 5,394 8,276 5,394
Others 27,322 19,944 27,316 19,946
222,539 210,372 213,364 204,444
* Included reversal of net modification loss relating to COVID-19 relief measures of the Group and of the Bank of RM31,000 (2021: reversal of RM140,000)
in the current financial year.
31. INTEREST EXPENSE
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Deposits from customers 82,572 86,064 86,256 88,274

Deposits and placements from banks and other
financial institutions 830 1,804 830 1,804
Borrowings 10,791 9,277 9,367 8,685
Lease interest expenses 894 965 743 905
Others 17,726 1,451 30,335 10,581
112,813 99,561 127,531 110,249
242
Annual Report 2022

31 DECEMBER 2022
32. OTHER OPERATING INCOME
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
(a) Fee income:

Brokerage fees 166,610 313,354 166,610 313,354
Corporate advisory fees 10,331 6,932 10,468 7,049
Processing fees on loans, advances and
financing 3,057 1,766 1,679 706
Underwriting commissions 891 1,839 891 1,839
Placement fees 19,303 15,230 11,043 12,649
Commissions 12,703 11,861 - -
Management fee income 202,047 152,510 359 1,352
Other fee income 18,269 18,647 6,345 7,029
Other 1,653 1,625 437 353
434,864 523,764 197,832 344,331
The timing of revenue recognition for fee income is as follows:
Fee income from providing financial services

at a point in time:
Brokerage fees 166,610 313,354 166,610 313,354
Corporate advisory fees 19 - 114 -
Processing fees on loans, advances and
financing 3,057 1,766 1,679 706
Underwriting commissions 891 1,839 891 1,839
Placement fees 15,643 12,139 7,383 9,558
Commissions 12,703 11,861 - -
Management fee income 70,471 36,097 359 1,352
Other fee income 18,269 18,647 6,345 7,029
Other 1,653 1,625 437 353
289,316 397,328 183,818 334,191
Fee income from providing financial services

over time:
Corporate advisory fees 10,312 6,932 10,354 7,049
Placement fees 3,660 3,091 3,660 3,091
Management fee income 131,576 116,413 - -
145,548 126,436 14,014 10,140
Total fee income from contracts with

customers 434,864 523,764 197,832 344,331
243

31 DECEMBER 2022
32. OTHER OPERATING INCOME (CONT’D.)
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
(b) Investment and trading income:

Net gain/(loss) from sale of financial assets
at fair value through profit or loss and
derivatives 23,675 (45,678) 23,667 (45,718)
Unrealised (loss)/profit on revaluation of
financial assets at fair value through profit or
loss and derivatives (8,954) 148,011 (10,454) 150,784
Net gain from sale of financial investments at
FVOCI 25 9 25 9
Gross dividend income from:
- Financial assets at fair value through
profit or loss 1,429 3,410 1,394 3,303
- Financial investments at FVOCI 98 244 98 244
- Subsidiaries - - 59,000 15,000
Interest income from financial assets at FVTPL 610 2,176 610 2,176
16,883 108,172 74,340 125,798
(c) Other income:

Foreign exchange gain, net 8,121 10,792 8,241 10,716
Gain on disposal of property, plant and
equipment 111 60 93 57
Other operating income 7,359 2,602 8,963 3,481
Other non-operating income
- Rental income 2,074 1,674 3,897 3,525
- Gain on disposal of a subsidiary - 4,729 - -
- Gain on disposal of an associate 9,117 - - -
- Others 6,819 5,088 4,881 4,746
33,601 24,945 26,075 22,525
Total other operating income 485,348 656,881 298,247 492,654
244
Annual Report 2022

31 DECEMBER 2022
33. OTHER OPERATING EXPENSES
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Personnel costs
- Salaries, allowances and bonuses 175,000 195,241 122,095 149,029
- EPF 20,839 20,066 16,490 16,014
- ESS 408 1,302 326 1,024
- Others 25,588 30,524 11,084 16,444
221,835 247,133 149,995 182,511
Establishment costs
- Depreciation of property, plantand equipment
(Note 16) 11,472 11,714 10,487 10,829
- Amortisation of intangible assets (Note 17(d)
and (f)) 6,462 5,624 5,508 4,642
- Amortisation of right-of-use assets (Note 18) 8,039 8,465 6,660 7,397
- Rental of premise 476 397 370 324
- Rental of equipment 783 640 499 412
- Repairs and maintenance 7,551 5,836 3,784 3,635
- Information technology expenses 17,415 14,792 17,396 14,779
- Others 6,699 6,249 3,249 2,746
58,897 53,717 47,953 44,764
Marketing expenses
- Promotion and advertisement 12,375 18,822 4,452 4,317
- Travel and entertainment 3,829 4,040 1,700 668
- Others 880 448 764 289
17,084 23,310 6,916 5,274
Administration and general expenses

- Communication expenses 4,932 4,680 4,235 4,053
- Regulatory charges 26,965 33,361 24,112 31,224
- Printing and stationery 1,184 1,266 666 781
- Administrative expenses 13,171 15,230 11,368 12,911
- Professional fees and legal fees 4,638 5,285 3,891 4,939
- Fees and brokerage 184,467 264,508 94,525 198,284
235,357 324,330 138,797 252,192
Total other operating expenses 533,173 648,490 343,661 484,741
245

31 DECEMBER 2022
33. OTHER OPERATING EXPENSES (CONT’D.)
Included in the other operating expenses are the following:
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Auditors’ remuneration
- Statutory audit 573 583 365 355
- Assurance related 55 58 55 58
- Other services 67 97 25 30
Directors’ remuneration (Note 39) 3,828 3,930 3,497 3,642
Property, plant and equipment written off 911 231 902 -
Computer software work-in-progress written off 608 - 608 -
34. CREDIT LOSS REVERSAL/(EXPENSES)
The table below shows the ECL charges on financial instruments for the financial year recorded in the income statement:
Group
(a) Movements in ECL on debt instruments and loans, advances and financing:

2022 RM’000 RM’000 RM’000 RM’000
Debts instruments at FVOCI (Note 7(a)) 79 (78) - 1

Debts instruments at amortised cost
(Note 7(b)) 49 - - 49
Loans, advances and financing (Note 9.2) (121) - (5,030) (5,151)
Recoveries from share margin financing - - 7,596 7,596
Credit loss reversal/(expenses) 7 (78) 2,566 2,495

2021 RM’000 RM’000 RM’000 RM’000
Debts instruments at FVOCI (Note 7(a)) (4) - - (4)

(Note 7(b)) 56 - - 56
Loans, advances and financing (Note 9.2) 163 - (2,783) (2,620)
Credit loss reversal/(expenses) 215 - (2,783) (2,568)
246
Annual Report 2022

31 DECEMBER 2022
34. CREDIT LOSS REVERSAL/(EXPENSES) (CONT’D.)
Group (cont’d.)
(b) Movements in ECL on other financial assets:
Non-
Credit Credit-
2022 RM’000 RM’000 RM’000
Balances due from clients and brokers (Note 10.1) 4 15 19

Other debtors (Note 11.1) (1,764) (4,673) (6,437)
Credit loss (expenses)/reversal (1,760) (4,658) (6,418)
Non-
Credit Credit-
2021 RM’000 RM’000 RM’000
Balances due from clients and brokers (Note 10.1) 18 (87) (69)
Other debtors (Note 11.1) (1,054) 1,791 737
Credit loss (expenses)/reversal (1,036) 1,704 668
Bank
(a) Movements in ECL on debt instruments, loan commitments, loans, advances and financing and amount due from
subsidiaries:

2022 RM’000 RM’000 RM’000 RM’000
Debts instruments at FVOCI (Note 7(a)) 79 (78) - 1

(Note 7(b)) 49 - - 49
Loans, advances and financing (Note 9.2) (266) - (3,244) (3,510)
Loan commitments (Note 9.2(d)) (22) - - (22)
Recoveries from share margin financing - - 7,596 7,596
Credit loss (expenses)/reversal (160) (78) 4,352 4,114
247

31 DECEMBER 2022
34. CREDIT LOSS REVERSAL/(EXPENSES) (CONT’D.)
Bank (cont’d.)
(a) Movements in ECL on debt instruments, loan commitments, loans, advances and financing and amount due from
subsidiaries (cont’d.):

2021 RM’000 RM’000 RM’000 RM’000
Debts instruments at FVOCI (Note 7(a)) (4) - - (4)

(Note 7(b)) 56 - - 56
Loans, advances and financing (Note 9.2) 109 - (2,783) (2,674)
Loan commitments (Note 9.2(d)) 31 - - 31
Amount due from subsidiaries (14) - - (14)
Credit loss reversal/(expenses) 178 - (2,783) (2,605)
(b) Movements in ECL on other financial assets:
Non-
Credit Credit-
2022 RM’000 RM’000 RM’000
Balances due from clients and brokers (Note 10.1) 4 15 19

Other debtors (Note 11.1) (1,764) 182 (1,582)
Credit loss (expenses)/reversal (1,760) 197 (1,563)
Non-
Credit Credit-
2021 RM’000 RM’000 RM’000
Balances due from clients and brokers (Note 10.1) 18 (87) (69)
Other debtors (Note 11.1) (1,055) 1,794 739
Credit loss (expenses)/reversal (1,037) 1,707 670
248
Annual Report 2022

31 DECEMBER 2022
35. BAD DEBTS RECOVERED/(WRITTEN OFF)
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Loans, advances and financing 9 506 9 506

Balances due from clients and brokers 110 37 110 37
Other debtors - (30) - -
119 513 119 543
36. SIGNIFICANT RELATED PARTY TRANSACTIONS AND BALANCES
In addition to the transactions detailed elsewhere in the financial statements, the Group and the Bank had the following
transactions with related parties during the financial year.
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Transactions
Income earned:
Brokerage fees:
- Key management personnel 5 1 5 1
- Related company 2,466 6,642 2,466 6,642
Rollover fees:
- Related company 169 151 169 151
Corporate advisory fees:

- Subsidiaries - - 137 117
Processing fees on loans, advances and financing:

Management fee income:

- Subsidiary - - 17 38
Other income:
- Subsidiary - - 1,300 74
Interest on loans, advances and financing:

- Subsidiaries - - 4,639 4,895
- Related company 1,179 1,264 1,179 1,264
249

31 DECEMBER 2022
36. SIGNIFICANT RELATED PARTY TRANSACTIONS AND BALANCES (CONT’D.)
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Transactions (cont’d.)
Income earned (cont’d.):
Interest on others:
Group support services charged:

- Related company - - 119 174
Dividend income:
- Subsidiaries (Note 32) - - 59,000 15,000
Rental of premises:
- Subsidiaries - - 1,545 845
Rental of car park:

Referral and cost sharing fees:

Expenditure incurred:
Interest on deposits and placements:

- Related company 5,436 4,143 5,436 4,143
- Other related party 1,003 227 1,003 227
Interest on debt securities products:

- Subsidiary - - 12,609 9,130
Staff training cost:

Direct placement cost

- Subsidiary - - 8,260 2,581
Other expenses
250
Annual Report 2022

31 DECEMBER 2022
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Transactions (cont’d.)
Expenditure incurred (cont’d.):
Incentive fees- management fees income

- Subsidiary - - 1,920 1,658
Incentive fees- agent

Service charge:
- Subsidiary - - 921 1,017
Balances
Amount due from:

Loans, advances and financing:
- Subsidiaries - - 70,000 56,500
Commitment receivables:
Other receivables:
- Subsidiaries - - 30,581 29,716
Amount due to:

Deposits and placements:
- Subsidiaries (Note 20) - - 138,227 113,322
- Related company (Note 20) 264,897 200,000 264,897 200,000
- Other related party 90,666 75,800 90,666 75,800
- Key management personnel 1,438 232 1,438 232
Balances due to clients and brokers:

Interest receivable on loan, advances and financing:

Interest payable on deposits:

- Related company 1,155 1,187 1,155 1,187
Deposit for Index trading

Other payables:
251

31 DECEMBER 2022
Parties are considered to be related if one party has the ability to control the other party or exercise significant influence
over the other party in making financial or operational decisions, or if one other party controls both. The related parties of
the Bank are:
(i) Subsidiaries
Details of the subsidiaries are shown in Note 13.
(ii) Associates
Details of the associates are as disclosed in Note 14.
(iii) Joint Ventures
Details of the joint ventures are disclosed in Note 15.
(iv) Other related parties
Name Relationship
Cahya Mata Capital Sdn Bhd (Fka CMS Capital Sdn Bhd) Substantial shareholder of the Bank
Cahya Mata Sarawak Berhad Holding company of a substantial shareholder of the Bank
The Directors are of the opinion that the above transactions were entered into in the normal course of business and have
been established under terms that are no less favourable than those obtainable in transactions with unrelated parties.
37. CREDIT TRANSACTIONS AND EXPOSURES WITH CONNECTED PARTIES
Credit transactions and exposures to connected parties as disclosed below include the extension of credit facilities and/or
off-balance sheet credit exposures such as loan commitments:
Group and Bank

2022 2021
RM’000 RM’000
Outstanding credit exposures with connected parties 193,301 173,066
Percentage of outstanding credit exposures to connected parties:

- as a proportion of total credit exposures 6.23% 5.73%
- which is impaired or in default - -
252
Annual Report 2022

31 DECEMBER 2022
37. CREDIT TRANSACTIONS AND EXPOSURES WITH CONNECTED PARTIES (CONT’D.)
The disclosure on Credit Transactions and Exposures with Connected Parties above is presented in accordance with
paragraph 9.1 of BNM’s revised Guidelines on Credit Transactions and Exposures with Connected Parties issued on 16 July
2014, which will be effective from 1 January 2008.
Based on these guidelines, connected parties refer to the following:
(i) Directors of the Bank and their close relatives;
(ii) Controlling shareholder and his close relatives;
(iii) Executive officer, being a member of management having authority and responsibility for planning, directing and/or
controlling the activities of the Bank, and his close relatives;
(iv) Officers who are responsible for or have the authority to appraise and/or approve credit transactions or review the
status of existing credit transactions, either as a member of a committee or individually, and their close relatives;
(v) Firms, partnerships, companies or any legal entities which control, or are controlled by any person listed in (i) to
(iv) above, or in which they have an interest, as a director, partner, executive officer, agent or guarantor, and their
subsidiaries or entities controlled by them;
(vi) Any person for whom the persons listed in (i) to (iv) above is a guarantor; and
(vii) Subsidiary of or an entity controlled by the Bank and its connected parties.
38. COMPENSATION OF KEY MANAGEMENT PERSONNEL
The remuneration of Directors and other members of key management during the financial year was as follows:
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000

- Short term employee benefits 5,420 5,212 5,420 5,212
- Post-employment benefits: EPF 854 733 854 733
Senior Management
- Short term employee benefits 26,946 23,694 19,544 18,031
- Post-employment benefits: EPF 3,485 3,151 2,464 2,365
36,705 32,790 28,282 26,341
Key management personnel are defined as those persons having authority and responsibility for planning, directing and
controlling the activities of the Bank either directly or indirectly including all executive directors and senior management.
253

31 DECEMBER 2022
39. DIRECTORS’ REMUNERATION
Remuneration in aggregate for Directors for the financial year is as follows:
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Directors of the Bank:

Non-executive directors’ remuneration:
- Fees 3,251 3,274 3,010 3,072
- Other remuneration, including meeting
allowance 546 580 456 498
Total directors’ remuneration 3,797 3,854 3,466 3,570
Estimated money value of benefits-in-kind 31 76 31 72
Total for directors of the Bank (Note 33) 3,828 3,930 3,497 3,642
The total remuneration (including benefits-in-kind) of the Directors of the Bank are as follows:
Remuneration received from the Group

Other Benefits-
Fees emolument in-kind Total
RM’000 RM’000 RM’000 RM’000
31 December 2022
Non-Executive Directors:
Tan Sri Dato’ Seri Syed Zainol Anwar Ibni Syed
Putra Jamalullail 520 24 31 575
Luigi Fortunato Ghirardello 193 38 - 231
Ismail Harith Merican 300 40 - 340
Luk Wai Hong, William 487 122 - 609
Jeremy Bin Nasrulhaq 390 70 - 460
Norazian Binti Ahmad Tajuddin 462 108 - 570
Kanagaraj Lorenz 370 66 - 436
Choy Khai Choon 344 56 - 400
Chin Siew Siew 185 22 - 207
Total Directors’ remuneration 3,251 546 31 3,828
254
Annual Report 2022

31 DECEMBER 2022
39. DIRECTORS’ REMUNERATION (CONT’D.)
The total remuneration (including benefits-in-kind) of the Directors of the Bank are as follows (cont’d.):
Remuneration received from the Group

Other Benefits-
Fees emolument in-kind Total
RM’000 RM’000 RM’000 RM’000
31 December 2021
Non-Executive Directors:
Tan Sri Dato’ Seri Syed Zainol Anwar Ibni Syed
Putra Jamalullail 537 36 31 604
Izlan Bin Izhab - - 19 19
Datuk Syed Ahmad Alwee Alsree 225 32 13 270
Dato’ Richard Alexander John Curtis 146 26 13 185
Luigi Fortunato Ghirardello 410 82 - 492
Ismail Harith Merican 300 42 - 342
Luk Wai Hong, William 465 116 - 581
Jeremy Bin Nasrulhaq 390 74 - 464
Norazian Binti Ahmad Tajuddin 417 104 - 521
Kanagaraj Lorenz 370 68 - 438
Choy Khai Choon 14 - - 14
Total Directors’ remuneration 3,274 580 76 3,930
255

31 DECEMBER 2022
40. TAXATION AND ZAKAT
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Current income tax:

Tax expense for the financial year 14,756 40,917 - 26,132
(Over)/under provision in prior years (4,070) 872 (1,526) 1,109
10,686 41,789 (1,526) 27,241
Deferred tax (Note 19):

Relating to origination and reversal of temporary
differences 1,979 (10,168) 1,955 555
Over/(under) provision of deferred tax assets in
prior years 5,780 (2,572) 2,651 (2,531)
7,759 (12,740) 4,606 (1,976)
Zakat 351 372 291 340
Total income tax expense 18,796 29,421 3,371 25,605
Domestic income tax is calculated at the statutory tax rate of 24% (2021: 24%) on the estimated chargeable profit for the
financial year.
A reconciliation of taxation applicable to profit before taxation at the statutory income tax rate to taxation at the effective tax
rate of the Group and of the Bank is as follows:
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Taxation at Malaysian statutory income tax rate of

24% (2021: 24%) 17,796 35,577 13,990 28,901
Effect of income not subject to tax (6,795) (10,219) (14,518) (4,465)
Effect of expenses not deductible for tax purposes 5,064 4,955 2,483 2,251
Deferred tax asset not recognised on unutilised
business losses 646 391 - -
Deferred tax asset not recognised on unabsorbed
capital allowances 24 45 - -
Under/(over) provision of deferred tax assets in
prior years 5,780 (2,572) 2,651 (2,531)
(Over)/under provision of income tax expense in
prior years (4,070) 872 (1,526) 1,109
Tax expense for the year 18,445 29,049 3,080 25,265
Zakat 351 372 291 340
Tax expense and zakat for the financial year 18,796 29,421 3,371 25,605
256
Annual Report 2022

31 DECEMBER 2022
41. BASIC AND DILUTED EARNINGS PER SHARE
Basic and diluted earnings per share amounts are calculated by dividing profit for the financial year attributable to equity
holders of the Bank by the weighted average number of ordinary shares in issue during the financial year.
Group
2022 2021
Profit for the financial year attributable to equity holders of the Bank (RM’000) 54,511 118,390
Weighted average number of ordinary shares in issue excluding treasury shares (‘000) 726,672 726,885
Effects of dilution (‘000) 4,406 15,723
Adjusted weighted average number of ordinary shares in issue (‘000) 731,078 742,608
Earnings per share (sen)

- basic 7.50 16.29
- fully diluted 7.46 15.94
There were no potential dilutive ordinary shares outstanding as at 31 December 2022.
257

31 DECEMBER 2022
42. COMMITMENTS AND CONTINGENCIES
In the normal course of business, the Group and the Bank enter into various commitments and incur certain contingent
liabilities with legal recourse to their customers. No material losses are anticipated as a result of these transactions.
As at reporting date, the commitments and contingencies are as follows:
Group Bank
2022 2021 2022 2021
Principal Principal Principal Principal
amount amount amount amount
RM’000 RM’000 RM’000 RM’000
Commitments to extend credit with maturity of

less than 1 year:
- share margin financing 2,749,435 2,774,310 2,749,435 2,774,310
- foreign exchange related contracts 43,452 8,477 43,452 8,477
Other commitments with an original maturity of
less than 1 year:
- corporate loans 55,561 50,742 130,561 124,242
Other commitments with an original maturity of
more than 1 year:
- corporate loans 25,000 55,275 40,000 61,275
Monies held in trust on behalf of client (Note 5) 1,069,081 1,249,679 1,069,081 1,249,679
Securities borrowing and lending 11,102 27,637 11,102 27,637
Derivative financial assets (Note 8):
- dual currency investment - options 2,126 1,361 2,126 1,361
- equity related contracts - options 29,338 29,492 29,338 29,492
- equity related contracts - swap 64,187 24,123 64,187 24,123
- equity related contracts - forward 57,354 57,354 57,354 57,354
Derivative financial liabilities (Note 23):
- dual currency investment - options 2,126 1,361 2,126 1,361
- equity related contracts - options 159,722 180,364 159,722 180,364
- equity related contracts - swaps 11,438 55,251 11,438 55,251
Capital commitment:
- Authorised and contracted for 18,554 18,859 17,247 17,399
Investment in equity funds - - 24,991 24,991
4,298,476 4,534,285 4,412,160 4,637,316
258
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31 DECEMBER 2022
43. CONTINGENT LIABILITIES
2022 2021
Group and Bank RM’000 RM’000
On 27 November 2019, the Bank was served with a sealed Writ of Summons and
Statement of Claim filed by Lai Sing Foo (“the Plaintiff”). The Plaintiff is alleging that,
inter alia, the second (2nd) Defendant (who is a Dealer’s Representative (“DR”) of KIBB
has arranged for the Plaintiff to purchase shares of a public listed company with a
promise to buy back at a higher price from the third (3rd) Defendant (a third party). The
Plaintiff alleges that the 3rd Defendant has failed to buy back the said shares which
caused the Plaintiff to suffer losses and claims, inter alia, the difference between the
sale proceeds of the said shares and RM3.6 million. The Plaintiff’s claims against KIBB
are on the basis that, inter alia, the 2nd Defendant is a DR with KIBB. In this regard,
KIBB will contest the Plaintiff’s claim in the Court. The Plaintiff, KIBB and the 3rd
Defendant presented their evidence during the trial from 11 to 13 August 2021. On
3 November 2021, the High Court dismissed the Plaintiff’s claim against KIBB and
the 3rd Defendant with costs of RM25,000.00 to be paid to each. The Plaintiff’s claim
against the 2nd Defendant was allowed with costs of RM25,000.00 to be paid to the
Plaintiff. On 25 November 2021, the Plaintiff filed a Notice of Appeal in the Court of
Appeal against the High Court’s decision. The matter was fixed for case management
in the Court of Appeal on 16 March 2022 and the date of case management was
revised to 27 March 2023. 3,600 3,600
Based on legal advice obtained, the Board of Directors are of the opinion that the Bank has good grounds to defend these
claims and that no provisions are necessary as at reporting date.
44. OPERATING LEASE ARRANGEMENTS
A summary of the sub-lease receipts expected to be received under non-cancellable sublease are as follows:
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
Future minimum sub lease receipts:

Subsidiaries - - 2,886 1,484
External parties 442 508 442 508
442 508 3,328 1,992
259

31 DECEMBER 2022
45. DIVIDEND
During the financial year, an interim single tier dividend of 10.50 sen (2021 interim single tier dividend: 8.80 sen) per
ordinary share on 733,906,299 ordinary shares (2021: 729,698,099 ordinary shares) in respect of the financial year ended 31
December 2021, which amounted to RM77,060,192 (2021: RM64,213,435) was paid on 15 April 2022 (2021: 20 April 2021).
Subsequent to the financial year end, on 24 February 2023, the Directors have declared a single tier interim dividend
of 6.00 sen per share in respect of the financial year ended 31 December 2022 amounting to total dividends payable
of approximately RM44,145,756. This is computed based on issued and paid-up capital as at 31 December 2022 of
735,762,599 ordinary shares. The actual amount of dividends to be paid will depend on the number of shares in issue at the
date of entitlement.
The financial statements for the current financial year do not reflect this interim dividend. Such dividends will be accounted
for in equity as an appropriation of retained profits in the financial year ending 31 December 2023.
46. OFFSETTING OF FINANCIAL INSTRUMENTS
Financial assets and financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements
are as follows:
Gross Related accounts not set

amounts of Net off in the statements of
recognised amounts of financial position
financial recognised
asset/ financial
Gross liability assets
amounts of set off in presented
recognised the in the
financial statements statements Cash
asset/ of financial of financial Financial collateral
liability position position instruments received Net amount
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2022
Balances due from clients and
brokers (Note 10) 856,151 (428,513) 427,638 2,919,653 174,399 -
Balances due to clients and brokers
(Note 22) 1,424,199 (691,490) 732,709 - - 732,709
2021
brokers (Note 10) 699,884 (365,419) 334,465 2,332,231 214,647 -
(Note 22) 1,296,683 (630,715) 665,968 - - 665,968
260
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31 DECEMBER 2022
46. OFFSETTING OF FINANCIAL INSTRUMENTS (CONT’D.)
Financial assets and financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements
are as follows (cont’d.):
Gross Related accounts not set

amounts of Net off in the statements of
recognised amounts of financial position
financial recognised
asset/ financial
Gross liability assets
amounts of set off in presented
recognised the in the
financial statements statements Cash
asset/ of financial of financial Financial collateral
liability position position instruments received Net amount
Bank RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2022
brokers (Note 10) 855,990 (428,513) 427,477 2,919,653 174,399 -
(Note 22) 954,464 (691,488) 262,976 - - 262,976
2021
brokers (Note 10) 699,789 (365,419) 334,370 2,332,231 214,647 -
(Note 22) 896,010 (630,714) 265,296 - - 265,296
261

31 DECEMBER 2022
47. CAPITAL MANAGEMENT AND CAPITAL ADEQUACY
Capital management
The Group and the Bank maintain an actively managed capital base to cover risks inherent in the business. The adequacy
of the Group’s and of the Bank’s capital is monitored using, among other measures, the rules and ratios established by the
Basel Committee on Banking Supervision and adopted by BNM in supervising the Bank.
The primary objectives of the Group’s and of the Bank’s capital management are to ensure that the Group and the Bank
comply with regulatory capital requirements and the Group and the Bank maintain strong credit ratings and healthy capital
ratios in order to support its business and to maximise shareholders’ value.
The Group and the Bank manage its capital structure and makes adjustments to it in light of changes in the economic
conditions and the risk characteristics of its activities. In order to maintain or adjust the capital structure, the Group and
the Bank may adjust the amount of dividend payments to its shareholders, return capital to its shareholders or issue capital
securities. Nevertheless, it is under constant scrutiny of the Board.
Capital adequacy
The capital adequacy ratios of the Group and of the Bank are computed in accordance with BNM’s revised Risk-Weighted
Capital Adequacy Framework. The Bank has adopted the Standardised Approach for Credit Risk and Market Risk,
and the Basic Indicator Approach for Operational Risk (Basel II). The minimum regulatory capital adequacy requirements for
Common Equity Tier 1 (“CET 1”), Tier 1 and Total Capital are 4.5%, 6.0% and 8.0% of total risk weighted assets.
(i) Components of Tier 1 and Tier 2 capital:
The capital adequacy ratios of the Group and of the Bank are as follows:
Group Bank
2022 2021 2022 2021
CET 1 capital ratio 20.936% 20.665% 21.626% 21.332%

Tier 1 capital ratio 20.936% 20.665% 21.626% 21.332%
Total capital ratio 28.913% 28.291% 30.682% 29.827%
After deducting interim dividends *

* Refer to interim dividends declared subsequent to the financial year end.
262
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31 DECEMBER 2022
47. CAPITAL MANAGEMENT AND CAPITAL ADEQUACY (CONT’D.)
Capital adequacy (cont’d.)
(i) Components of Tier 1 and Tier 2 capital (cont’d.):
The capital adequacy ratios of the Group and of the Bank are as follows (cont’d.):
Group Bank
2022 2021 2022 2021
RM’000 RM’000 RM’000 RM’000
CET 1 capital/Tier 1 capital

Paid-up share capital 253,834 253,834 253,834 253,834
Retained profits 655,907 673,097 597,058 624,353
Other reserves 121,077 136,462 166,427 176,227
Less: Goodwill (241,027) (241,277) (252,909) (252,909)
55% of cumulative gains on
financial investments at FVOCI - (3,625) - (349)
Deferred tax assets (25,184) (30,605) (12,966) (15,219)
Other intangibles (88,192) (89,784) (78,223) (79,077)
Regulatory reserve (17,192) (18,921) (17,192) (18,921)
Treasury shares (13,538) (13,064) (13,538) (13,064)
Other CET 1 regulatory adjustments
specified by BNM 1,510 1,765 1,020 944
Investment in ordinary shares of
unconsolidated financial entities (126,252) (119,140) (170,596) (169,047)
Total CET 1/Tier 1 capital 520,943 548,742 472,915 506,772
Tier 2 Capital
Subordinated obligations capital 180,500 185,500 180,500 185,500
General provisions ^ 17,972 16,986 17,549 16,321
Total Tier 2 capital 198,472 202,486 198,049 201,821
Total Capital 719,415 751,228 670,964 708,593
^ Refers to loss allowances measured at an amount to 12-month and lifetime expected credit losses and regulatory reserve, to the extent they are
ascribed to non-credit impaired exposures, determined under Standardised Approach for credit risk.
* The portion of regulatory adjustments not deducted from Tier 2 (as the Group and the Bank do not have enough Tier 2 to satisfy the deduction)
is deducted from the next higher level of capital; as per paragraph 31.1 of the BNM’s Capital Adequacy Framework (Capital Components).
263

31 DECEMBER 2022
(i) Components of Tier 1 and Tier 2 capital (cont’d.):
Breakdown of risk weighted assets in the various categories of risks are as follows:
2022 2021
Risk- Risk-
Notional weighted Notional weighted
RM’000 RM’000 RM’000 RM’000
Group
Credit risk 5,031,093 1,437,747 5,567,911 1,358,911
Market risk - 142,514 - 456,072
Operational risk - 894,847 - 828,589
Large exposure risk - 13,108 - 11,794
Total Risk Weighted Assets 5,031,093 2,488,216 5,567,911 2,655,366
Bank
Credit risk 4,450,896 1,403,888 5,061,023 1,305,693
Market risk - 141,026 - 440,663
Large exposure risk - 13,108 - 11,794
Total Risk Weighted Assets 4,450,896 2,186,798 5,061,023 2,375,688
(ii) Transitional arrangements for regulatory capital treatment of accounting provisions
The Bank has elected to apply the transitional arrangements for regulatory capital treatment of accounting provisions
for four financial years beginning on 1 January 2020 and apply the transitional arrangements with 31 December 2020
as the first reporting period.
Under the transitional arrangements, the Bank is allowed to add back the amount of loss allowance measured at an
amount equal to 12-month and lifetime expected credit losses to the extent they are ascribed to non-credit-impaired
exposures (“Stage 1 and Stage 2 provisions”) to CET 1 Capital.
264
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31 DECEMBER 2022
(ii) Transitional arrangements for regulatory capital treatment of accounting provisions (cont’d.)
The capital adequacy ratios of the Group and of the Bank are as follows:
Group Bank
2022 2021 2022 2021
With transitional arrangement

Without transitional arrangement

48. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
The carrying amounts and the fair values of the financial assets and liabilities of the Group and of the Bank are as follows:
2022 2021
Carrying Carrying
amount Fair value amount Fair value
Group RM’000 RM’000 RM’000 RM’000
Financial assets
Cash and bank balances 1,732,786 1,732,786 1,897,384 1,897,384
Financial assets at fair value through profit or loss 322,139 322,139 387,322 387,322
Financial investments at fair value through other
comprehensive income 319,173 319,173 737,574 737,574
Derivative financial assets 85,217 85,217 81,453 81,453
Loans, advances and financing 1,690,475 1,696,451 1,775,413 1,782,095
Other assets, excluding prepayments and deposits 162,536 162,536 219,401 219,401
Statutory deposit with Bank Negara Malaysia 58,403 58,403 50,868 50,868
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48. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (CONT’D.)
The carrying amounts and the fair values of the financial assets and liabilities of the Group and of the Bank are as follows
(cont’d.):
2022 2021
Carrying Carrying
Group RM’000 RM’000 RM’000 RM’000
Financial liabilities
Deposits from customers 3,161,078 3,161,078 3,137,278 3,137,372
Derivative financial liabilities 16,496 16,496 28,760 28,760
Other liabilities, excluding deposits 233,794 233,794 434,169 434,169
Borrowings 206,000 170,255 244,700 204,020
2022 2021
Carrying Carrying
Bank RM’000 RM’000 RM’000 RM’000
Financial assets
Cash and bank balances 1,262,925 1,262,925 1,459,156 1,459,156
Financial assets at fair value through profit or loss 324,626 324,626 386,367 386,367
Financial investments at fair value through other
comprehensive income 319,173 319,173 737,574 737,574
Derivative financial assets 85,217 85,217 81,453 81,453
Loans, advances and financing 1,703,510 1,710,413 1,749,615 1,757,618
Other assets, excluding prepayments and deposits 106,937 106,937 121,777 121,777
Statutory deposit with Bank Negara Malaysia 58,403 58,403 50,868 50,868
Deposits from customers 3,299,305 3,299,305 3,250,600 3,250,694
Derivative financial liabilities 16,496 16,496 28,760 28,760
Other liabilities, excluding deposits 137,123 137,123 245,664 245,664
Borrowings 188,500 125,746 204,700 164,018
266
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31 DECEMBER 2022
48. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (CONT’D.)
The methods and assumptions used in estimating the fair values of financial instruments are as follows:
(i) Financial assets/liabilities for which fair value approximates carrying value
The carrying amounts of financial assets and financial liabilities that have a short-term maturity and deposits/accounts
without a specific maturity, approximate fair values.
(ii) Financial assets at FVTPL, FVOCI and AC
The fair values are estimated based on quoted or observable market prices at the reporting date. Where such quoted
or observable market prices are not available, the fair values are estimated using pricing models or discounted cash
flow techniques. Where discounted cash flow technique is used, the expected future cash flows are discounted using
prevailing market rates for a similar instrument at the reporting date.
(iii) Derivatives
Fair values are estimated based on quoted or observable market prices at the reporting date.
Options are valued using Black-Scholes model and Swaps are valued using discounted cash flows. These valuation
techniques incorporates various market and observable assumptions including market rate volatility.
(iv) Loans, advances and financing
The fair values of fixed rate loans with remaining maturity of less than one year and variable rate loans are estimated to
approximate their carrying values. For fixed rate loans, advances and financing with remaining maturity of more than
one year, the fair values are estimated based on expected future cash flows of contractual instalment payments and
discounted at applicable prevailing rates at the reporting date offered to new borrowers/customers with similar credit
profiles.
(v) Deposits from customers
The fair values of deposit liabilities payable on demand (demand and savings deposits), or deposits with maturity
of less than one year are estimated to approximate their carrying amounts. The fair values of fixed deposits with
remaining maturities of more than one year are estimated based on expected future cash flows discounted at applicable
prevailing rates offered for deposits of similar remaining maturities. The fair values of Islamic deposits are deemed to
approximate their carrying amounts as profit rates are determined at the end of their holding periods based on the
profit generated from the assets invested.
(vi) Deposits and placements of banks and other financial institutions
The carrying values of these financial instruments with remaining maturity of less than one year approximate their
carrying amounts due to the relatively short maturity of the financial instruments. For deposits and placements with
maturities of one year and above, the estimated fair value is based on discounted cash flows using prevailing money
market interest rates at which similar deposits and placements would be made with financial institutions of similar
credit risk and remaining period to maturity.
(vii) Borrowings
The fair values of borrowings are estimated based on expected future cash flows discounted at applicable variable
rates offered for borrowings.
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31 DECEMBER 2022
49. SEGMENTAL REPORTING
The business segment results are prepared based on the Group’s internal management reporting, which reflect the
organisation’s management reporting structure. The Group is organised into six major operating divisions. The division form
the basis of which the Group reports its segment information.
(i) Investment banking - Investment banking business, treasury and related financial services;
(ii) Stockbroking - Dealings in securities and investment related services;
(iii) Listed derivatives - Futures broking;
(iv) Money lending and financing - Money lending, Islamic factoring and leasing;
(v) Investment and wealth management - Management of funds and unit trusts; and
(vi) Corporate and others - Support services comprising all middle and back office functions costs that are not allocated
out to business segments and include business operations conducted by the Group’s associates in the Kingdom of
Saudi Arabia and Sri Lanka and joint ventures, Rakuten Trade Sdn Bhd and Rakuten Trade Singapore Pte Ltd.
Except as indicated above, no operating segments have been aggregated to form the above reportable operating segments.
Management monitors the operating results of its business units separately for the purpose of making decisions about
resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss
which, in certain respects as explained in the table below, is measured differently from operating profit or loss in the
consolidated financial statements. Group income taxes are managed on group basis and are not allocated to operating
segments. Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with
third parties.
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31 DECEMBER 2022
49. SEGMENTAL REPORTING (CONT’D.)
The following table provides an analysis of the Group’s revenue, results, assets, liabilities and other information by operating
segments:
Money Investment Corporate Eliminations/

Investment Stock Listed lending and and wealth and consolidation
banking broking derivatives financing management Others adjustments Total
2022 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Revenue
External sales 161,345 320,294 19,730 8,861 219,582 (6,726) - 723,086
- Interest income 118,149 111,765 7,261 6,475 4,253 52 - 247,955
- Fee income/(expense) 33,119 176,545 12,284 2,386 215,390 (42) - 439,682
- Trading and investment
income/(loss) 4,855 25,882 - - (123) (6,692) - 23,922
- Other operating
income/(loss) 5,222 6,102 185 - 62 (44) - 11,527
Inter segment sales 28,206 (41,843) 1,200 - 21,856 10,985 (20,404) -
Total revenue 189,551 278,451 20,930 8,861 241,438 4,259 (20,404) 723,086
Result
Net income/(loss) 77,480 263,832 18,965 6,223 238,989 67,504 (62,718) 610,275
Other operating
(expenses)/income (59,815) (265,750) (16,886) (4,302) (179,944) (11,395) 4,919 (533,173)
Credit loss (expense)/
reversal (1,920) 4,300 - (1,772) (4,854) 168 155 (3,923)
Impairment of investment
in a subsidiary - - - - - (277) 277 -
Bad debt recovered/
(written off) 32 90 - - - (3) - 119
Share of results in
associates and joint
ventures - - - - - 852 - 852
Profit/(loss) before
taxation and zakat 15,777 2,472 2,079 149 54,191 56,849 (57,367) 74,150
Taxation and zakat (18,796)
Net profit for the
financial year 55,354
269

31 DECEMBER 2022
segments (cont’d.):
Investment
banking Money Investment Corporate Eliminations/
and stock Listed lending and and wealth and consolidation
broking derivatives financing management Others adjustments Total
2022 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Other information
Net interest and finance income 92,743 6,457 3,684 50 1,410 12,656 117,000
Depreciation and amortisation (12,844) (471) (158) (4,527) (9,321) 1,348 (25,973)
Non cash items
- Unrealised (loss)/gain on revaluation
of financial assets at fair value
through profit or loss and
derivatives (3,556) - - (165) (6,759) 1,526 (8,954)
Investment
2022 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Assets
Investments in associates - - - - 99,683 - 99,683
Investment in joint ventures - - - - 26,569 - 26,569
Addition to property, plant and
equipment and intangible assets 10,482 56 8 3,421 - - 13,967
Segment assets 5,456,192 536,765 68,968 247,638 15,635 (362,841) 5,962,357
Liabilities
Segment liabilities 4,452,411 518,823 49,528 171,597 1,834 (254,660) 4,939,533
270
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31 DECEMBER 2022
Money Investment Corporate Eliminations/

Investment Stock Listed lending and and wealth and consolidation
banking broking derivatives financing management Others adjustments Total
Revenue
External sales 138,571 537,581 15,520 9,026 165,864 24,929 - 891,491
- Interest income 108,119 115,823 3,664 7,101 195 397 - 235,299
- Fee income/(expense) 24,250 326,224 11,856 1,925 165,252 (112) - 529,395
- Trading and investment
income 681 87,937 - - 154 24,828 - 113,600
- Other operating income/
(loss) 5,521 7,597 - - 263 (184) - 13,197
Inter segment sales 41,252 (44,606) 761 - 11,321 9,727 (18,455) -
Total revenue 179,823 492,975 16,281 9,026 177,185 34,656 (18,455) 891,491
Result
Net income 76,003 480,591 15,106 6,615 191,123 44,991 (29,909) 784,520
Other operating
(expenses)/income (55,152) (391,604) (16,948) (5,017) (156,225) (35,571) 12,027 (648,490)
Credit loss (expense)/
income (218) (2,852) - 40 - 1,134 (4) (1,900)
Bad debt recovered - 228 - - - 285 - 513
Share of results in
associates and a joint
venture - - - - - 13,593 - 13,593
Profit/(loss) before taxation
and zakat 20,633 86,363 (1,842) 1,638 34,898 24,432 (17,886) 148,236
Taxation and zakat (29,421)
Net profit for the
financial year 118,815
271

31 DECEMBER 2022
Investment
2021 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Other information
Net interest and finance income 98,600 3,154 4,021 416 1,243 9,249 116,683
Depreciation and amortisation (13,063) (472) (156) (3,792) (9,780) 1,460 (25,803)
Non cash items
- Unrealised gain/(loss) on revaluation
of financial assets at fair value
through profit or loss and
derivatives 127,154 - - 6 23,630 (2,779) 148,011
Investment
2021 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Assets
Investments in associates - - - - 87,171 - 87,171
Investment in a joint venture - - - - 31,969 - 31,969
Addition to property, plant and
equipment and intangible assets 22,050 45 55 3,415 - - 25,565
Segment assets 5,869,674 450,123 95,990 310,770 15,510 (323,545) 6,418,522
Liabilities
Segment liabilities 4,828,324 433,725 75,984 231,896 1,561 (207,998) 5,363,492
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31 DECEMBER 2022
Notes
A Additions to non-current assets consist of:
2022 2021
RM’000 RM’000
Property, plant and equipment

- Additions during the financial year (Note 16) 5,175 12,230
Intangible assets
- Additions during the financial year (Note 17) 8,792 13,335
13,967 25,565
B The following items are deducted from segment assets to arrive at total assets reported in the consolidated statement
of financial position:
2022 2021
RM’000 RM’000
Investments in subsidiaries (81,600) (81,110)

Investments in associates and joint ventures 15,801 9,962
Intangible assets (39,584) (40,090)
Inter-segment assets (257,458) (212,307)
(362,841) (323,545)
C The following items are deducted from segment liabilities to arrive at total liabilities reported in the consolidated
statement of financial position:
2022 2021
RM’000 RM’000
Deposits accepted from subsidiaries (138,227) (113,322)

Inter-segment liabilities (116,433) (94,676)
(254,660) (207,998)
273

31 DECEMBER 2022
50. FINANCIAL RISK MANAGEMENT
The Group and the Bank adopt a proactive and continuous approach in managing risks and have established a risk
management framework to ensure that adequate policies and processes are in place to identify and manage the risks within
the defined policies and guidelines as approved by the Board of Directors.
The Group’s and the Bank’s financial risks are centrally managed by the various committees within the delegated authority
by the Board of Directors. These committees formulate, review and approve policies and limits to monitor and manage risk
exposures under their respective supervision. The major policy decisions and proposals approved by these committees are
subject to further review by the Group Board Risk Committee and the Board of Directors.
The Group Risk Management assumes the independent oversight of risks undertaken by the Group and the Bank, and takes
the lead in the formulation of risk policies, controls and processes. This is further enhanced by the periodic risk assessment
audit carried out by the Group’s and the Bank’s Internal Audit.
The main risk areas faced by the Group and the Bank and the guidelines and policies adopted to manage them are as
follows:
(a) Credit risk
Credit risk or the risk of counterparties defaulting, are minimised by the application of credit approvals, limits and
monitoring procedures. Balance due from clients and brokers are monitored on an ongoing basis via periodic
management reporting. The Group and the Bank through its directors and management, review all significant exposures
to customers and counterparties as well as any major concentration of credit risk related to any financial instrument.
The Group and the Bank have risk management procedures in place to manage these risks to ensure that all the
procedures and principles relating to risk management are adhered to.
Credit-related commitments risks
The Group and the Bank enter into various commitments which include commitments to extend credit lines and
obligation under underwriting agreements. Such commitments expose the Group and the Bank to similar risks to loans
and financing and are mitigated by the same processes and policies.
Impairment assessment
For the purpose of determining the risk of default occurring, default is defined based on the credit risk management
practises.
Portfolio Default
Loans, advances and financing Declaration of event of default with rating “D” and below
Share margin financing Margin of financing below 100% or declaration of event of default
Trade receivables- stockbroking More than 30 days past due from contra losses
Other receivables- asset management More than 30 days past due
Other receivables- advisory fees More than 30 days past due
Other receivables- factoring More than 30 days past due
Debt securities at amortised cost or FVOCI Declaration of event of default with rating “D” and below
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31 DECEMBER 2022
50. FINANCIAL RISK MANAGEMENT (CONT’D.)
(a) Credit risk (cont’d.)
Impairment assessment (cont’d.)
In the context of the Group and of the Bank, two approaches as specified in MFRS 9 shall be applied in the measurement
of ECL i.e. general approach and simplified approach.
General approach recognises impairment based on a three-stages approach which is intended to reflect the
deterioration in credit quality of a financial instrument.
General approach
- Stage 1 covers financial instruments that have not deteriorated significantly in credit quality since initial recognition
or (where the optional low credit risk simplification is applied) that have low credit risk.
- Stage 2 covers financial instruments that have deteriorated significantly in credit quality since initial recognition
(unless the low credit risk simplification has been applied and is relevant) but that do not have objective evidence
of a credit loss event.
- Stage 3 covers financial instruments that have objective evidence of impairment at the reporting date.
Low Credit Risk
The Group and the Bank shall adopt practical expedients for its applicable portfolios as detailed in the table below:
Practical Expedient Low Credit Risk
Applicable portfolio Government and quasi-government bonds, commercial paper, interbank deposit
placement/lending.
Criteria • the financial instrument has a low risk of default;
• the borrower has a strong capacity to meet its contractual cash flow obligations in the
near term; and
• adverse changes in economic and business conditions in the longer term may, but
will not necessarily, reduce the ability of the borrower to fulfill its contractual cash flow
obligations.
Measurement 12-month ECL
Methodology PD x LGD x EAD formula
Definition of 12-month ECL
12-month ECL are a portion of the lifetime ECLs that represent the ECLs that result from probable default events on a
financial instrument occurring in the next 12 months. They are weighted by the probability of such a default occurring.
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31 DECEMBER 2022
Measurement of ECL by General Approach:
Stage 1
- For financial instruments in stage 1, the Group and the Bank are required to recognise 12 month ECL.
For financial instruments that are deemed as low credit risk, 12 month ECL is recognised.
Stage 2
- When a financial instrument transfers to stage 2, the Group and the Bank are required to recognise lifetime ECL.
Stage 3
- For financial instruments in stage 3, the Group and the Bank will continue to recognise lifetime ECL but based
on specific provision approach.
The ECL under general approach can be written in the formula below:
ECL = PD x LGD x EAD
Key Components of ECL Measurement
Probability of Default (“PD”)
PD is an estimate of the likelihood of default over a given time horizon. It is estimated as at a point in time.
The calculation is based on the internal credit risk rating model, comprising both quantitative and qualitative factors.
The estimation is based on current conditions, adjusted to take into account estimates of future conditions that will
impact PD.
The Bank adopted external PD published by local rating agency i.e. Malaysia Rating Corporate Berhad (“MARC”) as
proxy, following adequate assessment and analysis on the suitability of data application i.e. rating mapping exercise
due to lack of sufficient size and history.
Loss Given Default (“LGD”)
The rating mapping exercise involves the process whereby the Group’s and the Bank’s existing Internal Credit Risk
Rating (“ICRR”) is being mapped against MARC rating for the same counterparty. The Group and the Bank assess the
definition of each ICRR rating band and makes reference to the definition of MARC rating band. Overall, both the rating
models have the same rating band i.e. AAA, AA, A, BBB, BB, B, C & D with BBB as the lowest investment grade and
BB and below as non-investment grade. The detailed rating characteristic for each rating band is similar in which AAA
indicates superior or extremely high repayment capability and will be rated ‘D’ upon default. For unrated corporate
loans, a default rating of ‘BBB2’ is applied (as per existing computation).
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31 DECEMBER 2022
Key Components of ECL Measurement (cont’d.)
Loss Given Default (“LGD”) (cont’d.)
Details on mapping of the Group’s and of the Bank’s ICRR to the external ratings are presented in Note 50(a)(i).
LGD is an estimate of the loss arising on default. It is based on the difference between the contractual cash flows due
and those that the Group and the Bank would expect to receive, taking into account cash flows from any collateral.
Exposure at Default (“EAD”)
EAD is an estimate of the exposure at a future default date, taking into account expected changes in the exposure after
the reporting date, including repayments of principal and interest, and expected drawdowns on committed facilities.
Simplified approach
The Group and the Bank shall adopt two practical expedients for their applicable portfolios as detailed in the table
below:
Practical Expedient Provision Matrix
Applicable portfolio Trade receivables, contract assets and lease receivables, balances due to clients and
brokers.
Criteria • Contract assets without significant financing component
• Trade receivables without a significant financing component
Measurement Lifetime ECL
Methodology Based on the ‘age’ of receivables i.e. ageing bucket
Definition of Lifetime ECL
Lifetime ECL are the losses that result from all possible events of default at any point during the expected life of the
financial instrument.
Measurement of ECL by Simplified Approach
For financial instruments that apply the provision matrix, ageing bucket based on definition of default is established
and incorporates the forward-looking element.
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31 DECEMBER 2022
Period over which ECL is measured
The Group and the Bank measure ECL considering the risk of default over the maximum contractual period (including
extension options) over which the entity is exposed to credit risk and not a longer period, even if contract extension or
renewal is common business practice. However, for financial instruments such as revolving credit facilities that include
both a loan and an undrawn commitment component, the Group’s and the Bank’s contractual ability to demand
repayment and cancel the undrawn commitment does not limit the Group’s and the Bank’s exposure to credit losses
to the contractual notice period. For such financial instruments, the Bank measures ECL over the period that it is
exposed to credit risk and ECL would not be mitigated by credit risk management actions, even if that period extends
beyond the maximum contractual period. These financial instruments do not have a fixed term or repayment structure
and have a short contractual cancellation period.
Significant increase in credit risk (“SICR”)
SICR is defined as a significant change in the estimated default risk over the remaining expected life of the financial
instrument. A SICR event triggers the measurement of loss allowance at an amount equal to lifetime ECL instead of
the 12-month ECL estimate.
The indicators for SICR are established to facilitate the staging assessment (from stage 1 to 2) for portfolios that apply
the general approach in the measurement of ECL. An asset moves from 12-month ECL (stage 1) to lifetime ECL (stage
2) when there is a significant deterioration in credit quality after initial recognition. In assessing whether the credit
risk of an asset has significantly increased, the Group and the Bank take into account qualitative and quantitative
reasonable and supportable forward looking information.
An asset classified under stage 2 can potentially be transferred to stage 3 if the credit quality deteriorates further. It is
also possible that an asset classified under stage 1 experiences drastic credit deterioration and requires to be directly
transferred to stage 3. Accordingly, different stage transfer criteria/triggers are established to satisfy the mentioned
staging assessment.
The assessment of SICR incorporates forward-looking information and is performed on a quarterly basis at a portfolio
level for all the above portfolios. The criteria used to identify SICR are monitored and reviewed periodically for
appropriateness by the Group Risk Management.
Grouping financial assets measured on a collective basis
Asset classes where the Bank calculates ECL on a collective basis include:
- Debt instruments at fair value through other comprehensive income

- Debt instruments at amortised cost
- Loans, advances and financing
- Balances due from clients and brokers
- Other receivables
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31 DECEMBER 2022
Grouping financial assets measured on a collective basis (cont’d.)
The Group and the Bank classify these exposures into smaller homogeneous portfolios, based on a combination of
internal and external characteristics of the financial assets, as described below:
For debt instruments these are:

• Internal grade
• Exposure value
For loan and financing these are:

• Product type (corporate loan, factoring and share margin)
• Internal credit rating
• Exposure value
• Collateral type
• Borrower’s industry
For balance due from clients and broker and other receivables these are:
• Exposure value
• Collateral type
Forward-looking and probability-weighted
To determine unbiased probability-weighted amount of ECL which considers range of possible outcomes and use of
information about economic conditions, the Group and the Bank use external and internal information to generate a ‘base
case’ scenario of future forecast of relevant economic variables along with a representative range of other possible forecast
scenarios. The external information used includes economic data and forecasts published by governmental bodies and
monetary authorities.
The Group and the Bank apply probabilities to the forecast scenarios. The Group and the Bank have identified and
documented key drivers of credit risk and credit losses for each portfolio of financial instruments and, using a statistical
analysis of historical data to estimate the relationships between macro-economic variables and credit risk and credit losses.
These are being reviewed and monitored for appropriateness on a quarterly basis.
Pearson’s Correlation Test
Pearson’s Correlation model is used to test the linkage between each possible macroeconomic indicators and credit risk.
The Group and the Bank will then select the relevant macroeconomic indicator(s) that show significant correlation (P-value)
to default rate and has the most dynamic impact to credit risk.
Multiple-scenario Analysis
The Group and the Bank generate a ‘base case’ scenario of the future direction of relevant economic variables as well as
a representative range of other possible forecast scenarios. The Group and the Bank then use these forecasts, which are
probability-weighted, to adjust their estimates of PDs.
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31 DECEMBER 2022
Forward-looking and probability-weighted (cont’d.)
Multiple-scenario Analysis (cont’d.)
The scenarios by state of economy namely, “Booming”, “Normal” and “Downside” were used as defined in below table:
State of Economy GDP Growth Rate (annual) KLCI Index (point)
Downturn (D) <4.0% <1,700

Normal (N) 4.0%-6.0% -1,700 - 1,900
Booming (B) >6.0% >1,900
The assumptions used for the ECL estimates as at 31 December 2022 are set out below.
Economic Factor Scenario 2022 2023 2024
GDP Growth Rate 1 B N B

2 B N N
3 D D D
KLCI Index 1 D N N
2 D D N
3 D D D
The assumptions used for the ECL estimates as at 31 December 2021 are set out below.
Economic Factor Scenario 2021 2022 2023
GDP Growth Rate 1 N B N

2 D N N
3 D D D
KLCI Index 1 N B B
2 D D N
3 D D D
The weightings assigned to each state of economy as at 31 December 2022 were as follows:
State of Economy Weighting
B 15%
All portfolios N 80%
D 5%
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31 DECEMBER 2022
Forward-looking and probability-weighted (cont’d.)
Multiple-scenario Analysis (cont’d.)
The weightings assigned to each state of economy as at 31 December 2021 were as follows:
State of Economy Weighting
B 10%
All portfolios N 60%
D 30%
Expert judgement
Expert credit judgement is used to complement the assumptions made in the absence of sufficient data during the
model development process and incorporation of forward-looking element over a range of possible scenarios into the
ECL. The exercise of such judgement, together with any separately-calculated adjustments to the results to address
limitations in the core modelling approach - will require particular attention in the governance process.
Therefore, the use of expert judgement shall be applied as and when necessary and shall be governed by the following:
I. All expert judgements need to be properly documented and backed by reasonable and supportable information
that is available without undue cost or effort.
II. Any expert judgement including new proposal, changes or updates, is required to be endorsed in accordance
with the governance process as stipulated in this Framework.
III. The Group and the Bank intend to apply expert judgement including but not limited to below areas:
a. Definition of macroeconomic scenario and its probability for ECL measurement;

b. Assumptions made during modelling process in relation to ECL due to data limitations; and
c. Others as decided by relevant committee.
IV. Any management adjustment made shall be tabled to Group Credit Committee for concurrence.
Risk concentration: maximum exposure to credit risk without taking account of any collateral and other credit
enhancement
The Group’s and the Bank’s concentration risk is managed by counterparty and by industry sector. The Group and the Bank
apply single counterparty exposure limits to protect against unacceptably large exposures to single counterparty risk.
The following table shows the maximum exposure to credit risk for the components of the statement of financial
position, including derivatives, by industry before the effect of mitigation through the use of master netting and
collateral agreements. Where financial instruments are recorded at fair value, the amounts shown represent the current
credit risk exposure but not the maximum risk exposure that could arise in the future as a result of changes in values.
The maximum exposure to credit risk for the components of the statement of financial position, including derivatives,
by geography before the effect of mitigation through the use of master netting and collateral agreements is not
presented as the Group’s and the Bank’s activities are principally conducted in Malaysia.
281
282
We Are

Kenanga
Industry analysis as at 31 December 2022

31 DECEMBER 2022
Wholesale &
Manufacturing Electricity, retail trade, Transport,
(incl. agri- gas & water and hotel & Real storage and Finance and
Our Leaders
based) supply restaurant estate communications insurance Household Others Total

Message From
Financial assets
Cash and bank balances - - - - - 1,732,786 - - 1,732,786
Statutory deposit with Bank
Negara Malaysia - - - - - 58,403 - - 58,403
Approach
brokers 5,660 - - 227 922 166,464 234,208 20,157 427,638

Financial assets at FVTPL
Our Sustainability
Islamic Corporate Sukuk - 9,042 - - - - - - 9,042

Unquoted shares and unit trust
funds in Malaysia - 26,662 - - - 44,950 - 96,972 168,584

Derivative financial assets - - - 27,465 15 - 5,274 52,463 85,217
Net loans, advances and financing
Term loans - - 57,110 - 5,989 - 22,137 328,532 413,768
Governed
Islamic term loans - - - 2,513 - - 41,689 39,865 84,067

How We Are
Share margin financing - - 24,756 30,423 - - 866,346 201,187 1,122,712

Islamic share margin financing - - - - - - 13,311 - 13,311
Others - - 12,464 - - - 20,424 23,729 56,617
Financial investments at FVOCI
Malaysian Government
Securities - - - - - 19,373 - - 19,373
Financial
Statements
Investment Certificates - - - - - 59,534 - - 59,534

Corporate Bonds - 14,889 - - - 25,151 - 14,555 54,595
Islamic Corporate Sukuk - 23,214 - - 19,997 120,938 - 20,228 184,377
Unquoted equities - - - - - - - 1,294 1,294
Financial investments at AC
Corporate Bonds - - - - - 20,002 - - 20,002
Information
Shareholders’
Securities - - - - - 49,677 - - 49,677

Islamic Corporate Sukuk - - - - - 202,119 - - 202,119
Other assets, excluding
prepayments and deposits - - - - - - - 162,536 162,536
Additional
Information
5,660 73,807 94,330 60,628 26,923 2,676,713 1,203,389 961,518 5,102,968

Wholesale &
Financial assets
Negara Malaysia - - - - - 50,868 - - 50,868
brokers 620 - 395 - - 118,107 206,397 8,946 334,465
funds in Malaysia - - - - - - - 156,508 156,508
Term loans - - 63,711 15,732 - - 24,534 342,579 446,556
Share margin financing 5,845 - - 25,025 - - 885,600 227,169 1,143,639
Others - - 14,345 - - - 17,640 50,177 82,162
Securities - - - - - 40,042 - - 40,042
Islamic Negotiable Instruments
of Deposits - - - - - 199,724 - - 199,724
Corporate Bonds - 15,055 - 42,982 - 30,848 - 40,077 128,962
Islamic Corporate Sukuk - 54,337 - 5,047 30,551 164,594 - 20,923 275,452
Corporate Bonds - - - - - 20,012 - - 20,012
Islamic Corporate Sukuk - - 6,451 - - 147,285 - - 153,736
6,465 93,265 84,902 131,154 30,566 2,800,710 1,186,111 1,156,678 5,489,851
283
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284
We Are

Kenanga

31 DECEMBER 2022
Wholesale &
Our Leaders

Message From
Financial assets
Negara Malaysia - - - - - 58,403 - - 58,403
Approach
brokers 5,660 - - 227 922 166,464 234,208 19,996 427,477

Our Sustainability

funds in Malaysia - 26,662 - - - 44,950 - 100,000 171,612

Term loans - - 57,110 - 5,989 29,952 22,137 368,230 483,418
Governed

How We Are
Share margin financing - - 24,756 30,423 - - 866,346 201,187 1,122,712

Others - - - - - - 2 - 2
Securities - - - - - 19,373 - - 19,373
Financial
Statements

Corporate Bonds - 14,889 - - - 25,151 - 14,555 54,595
Islamic Corporate Sukuk - 23,214 - - 19,997 120,938 - 20,228 184,377
Corporate Bonds - - - - - 20,002 - - 20,002
Information
Shareholders’
Securities - - - - - 49,677 - - 49,677

Islamic Corporate Sukuk - - - - - 202,119 - - 202,119
Additional
Information
5,660 73,807 81,866 60,628 26,923 2,236,804 1,182,967 924,755 4,593,410

Wholesale &
Financial assets
Negara Malaysia - - - - - 50,868 - - 50,868
brokers 620 - 395 - - 118,107 206,397 8,851 334,370
funds in Malaysia - - - - - - - 155,772 155,772
Term loans - - 63,711 15,732 - 26,538 24,534 372,308 502,823
Share margin financing 5,845 - - 25,025 - - 885,600 227,169 1,143,639
Others - - - - - - 97 - 97
Securities - - - - - 40,042 - - 40,042
Islamic Negotiable Instruments
of Deposits - - - - - 199,724 - - 199,724
Corporate Bonds - 15,055 - 42,982 - 30,848 - 40,077 128,962
Islamic Corporate Sukuk - 54,337 - 5,047 30,551 164,594 - 20,923 275,452
Corporate Bonds - - - - - 20,012 - - 20,012
Islamic Corporate Sukuk - - 6,451 - - 147,285 - - 153,736
6,465 93,265 70,557 131,154 30,566 2,389,020 1,168,568 1,036,866 4,926,461
285
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31 DECEMBER 2022
Collateral and other credit enhancements
The amount and type of collateral required depend on an assessment of the credit risk of the counterparty. Guidelines
are implemented regarding the acceptability of types of collateral and valuation parameters.
The main types of collateral obtained are as follows:

(i) Cash;
(ii) Charges over financial instruments;
(iii) Securities;
(iv) Charges over real estate properties, inventory and trade receivables;
(v) Mortgages over properties; or
(vi) Financial guarantees.
Management monitors the market value of collateral, requests additional collateral in accordance with the underlying
agreement, and monitors the market value of collateral obtained during its review of the adequacy of the allowance for
impairment losses.
(i) Internal Credit Risk Ratings
The table below provides a mapping of the Group’s and of the Bank’s internal credit risk grades to external
ratings:
Classification
KIBB Obligor External of Credit Risk
Notches Rating Rating Grade Description
1 AAA AAA Superior capacity to meet its financial obligation.

Strong capacity to meet its financial obligations.
2 AA1
The entity is resilient against adverse changes
3 AA2 AA
in circumstances, economic conditions and/or
4 AA3
operating environments.
Adequate capacity to meet its financial
5 A1
Investment obligations. The entity is more susceptible to
6 A2 A
Grade adverse changes in circumstances, economic
7 A3
and/or operating environments.
Moderate capacity to meet its financial obligations.
8 BBB1 The entity is more likely to be weakened by
9 BBB2 BBB adverse changes in circumstances, economic
10 BBB3 conditions and/or operating environments than
those in higher-rated categories.
286
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31 DECEMBER 2022
(i) Internal Credit Risk Ratings (cont’d.)
The table below provides a mapping of the Group’s and of the Bank’s internal credit risk grades to external
ratings (cont’d.):
Classification
KIBB Obligor External of Credit Risk
Notches Rating Rating Grade Description
Weak capacity to meet its financial obligations.

11 BB1
The entity is highly vulnerable to adverse changes
12 BB2 BB
in circumstances, economic conditions and/or
13 BB3
operating environments.
Very weak capacity to meet its financial obligations.
14 B1
The entity has a limited ability to withstand
15 B2 B Non-
adverse changes in circumstances, economic
16 B3 Investment
conditions and/or operating environments.
Grade
High likelihood of defaulting on its financial
obligations. The entity is highly dependent on
17 C1
favourable changes in circumstances, economic
18 C2 C
conditions and/or operating environments, the
19 C3
lack of which would likely result in it defaulting on
its financial obligations.
Currently in default on either all or a substantial
portion of its financial obligations, whether or not
formally declared. The D rating may also reflect
20 D D Default
the filing of bankruptcy and/or other actions
pertaining to the entity that could jeopardise the
payment of financial obligations.
287

31 DECEMBER 2022
(ii) Credit quality by class of financial assets
The credit quality of financial assets is managed by the Group and the Bank using internal credit ratings. The
table below shows the credit quality by class of asset for all financial assets exposed to credit risk, based on the
Group’s and the Bank’s internal credit rating system.
Credit quality of financial assets neither past due nor impaired
The credit quality of financial assets is managed by the Group and the Bank using internal ratings which aim to
reflect the relative ability of counterparties to fulfill, on time, their credit-related obligations, and is based on their
current probability of default.
Internal rating
Strong credit profile Customers that have demonstrated superior stability in their operating and financial
performance over the long-term, and whose debt servicing capacity is not significantly
vulnerable to foreseeable events. This rating broadly corresponds to ratings “AAA” to
“AA” of RAM Rating Services Berhad (“RAM”) and Malaysian Rating Corporation Berhad
(“MARC”) respectively.
Satisfactory risk Customers that have consistently demonstrated sound operational and financial stability
over the medium to long term, even though some may be susceptible to cyclical trends
or variability in earnings. This rating broadly corresponds to ratings “A” to “BBB” of RAM
and MARC respectively.
Substandard Customers that have demonstrated some operational and financial instability, with
variability and uncertainty in profitability and liquidity projected to continue over the
short and possibly medium term. This rating broadly corresponds to ratings “BB” to “C”
of RAM and MARC respectively.
288
(ii) Credit quality by class of financial assets (cont’d.)
Neither past due nor impaired

Strong
credit Satisfactory Sub- Non Default/ ECL on ECL on
profile risk standard rated impaired individually collectively
Stage 1 Stage 1 Stage 1 Stage 1 Stage 2 Stage 3 impaired impaired Total
31 December 2022
Cash and bank balances 1,732,786 - - - - - - - 1,732,786
Statutory deposit with Bank Negara
Malaysia 58,403 - - - - - - - 58,403
Islamic Corporate Sukuk 9,042 - - - - - - - 9,042
Unquoted shares and unit trust funds in
Malaysia 168,584 - - - - - - - 168,584
Term loans - 313,978 39,305 - 63,385 - - (2,900) 413,768
Islamic term loans - 60,929 23,308 - - - - (170) 84,067
Share margin financing 328,509 750,276 176 - 30,438 30,346 (17,033) - 1,122,712
Islamic share margin financing 11,038 2,273 - - - - - - 13,311
Others 34,009 12,043 - 2 - 12,833 (2,270) - 56,617
Debt instruments:
Malaysian Government Securities 19,373 - - - - - - - 19,373
Malaysian Government Investment
Certificates 59,534 - - - - - - - 59,534
Islamic Corporate Sukuk 179,399 - - - 4,978 - - - 184,377
Corporate Bonds 54,595 - - - - - - - 54,595
Equity instrument:
Unquoted equities - - - 1,294 - - - - 1,294
Corporate Bonds 20,002 - - - - - - - 20,002
Certificates 177,316 - - - - - - - 177,316
Derivative financial assets - - - 85,217 - - - - 85,217
Balances due from clients and brokers 397,657 - - - 13,156 19,602 (1,246) (1,531) 427,638
Other assets, excluding prepayments and
deposits 147,741 - - 80 4,447 21,927 (11,327) (332) 162,536
Total 3,649,784 1,139,499 62,789 86,593 116,404 84,708 (31,876) (4,933) 5,102,968
289
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290
We Are

Kenanga

31 DECEMBER 2022
Strong
Our Leaders

Message From

31 December 2021
Malaysia 50,868 - - - - - - - 50,868
Approach

Our Sustainability

Malaysia 156,508 - - - - - - - 156,508
Term loans - 342,698 43,190 - 63,073 - - (2,405) 446,556

Share margin financing 439,292 556,908 53,912 42,553 63 64,700 (13,789) - 1,143,639
Islamic share margin financing 16 13,051 404 - - - - - 13,471
Governed
How We Are
Others 56,675 12,387 - 97 5,239 8,441 (664) (13) 82,162

Debt instruments:
Certificates 91,934 - - - - - - - 91,934
Financial
Statements
Corporate Bonds 128,962 - - - - - - - 128,962

Islamic Negotiable Instruments of
Deposits 199,724 - - - - - - - 199,724
Equity instrument:
Corporate Bonds 20,012 - - - - - - - 20,012
Information

Shareholders’
Certificates 39,912 - - - - - - - 39,912

Islamic Corporate Sukuk 147,285 6,451 - - - - - - 153,736
deposits 214,654 - - - 1,872 7,349 (4,999) (223) 218,653
Additional
Information
Total 4,087,828 996,804 122,313 125,563 84,580 98,198 (20,728) (4,707) 5,489,851

Strong
31 December 2022
Malaysia 58,403 - - - - - - - 58,403
Malaysia 171,612 - - - - - - - 171,612
Term loans - 384,092 39,305 - 63,386 - - (3,365) 483,418
Share margin financing 328,509 750,276 176 - 30,438 30,346 (17,033) - 1,122,712
Islamic share margin financing 11,038 2,273 - - - - - - 13,311
Others - - - 2 - - - - 2
Debt instruments:
Certificates 59,534 - - - - - - - 59,534
Islamic Corporate Sukuk 179,399 - - - 4,978 - - - 184,377
Corporate Bonds 54,595 - - - - - - - 54,595
Equity instrument:
Corporate Bonds 20,002 - - - - - - - 20,002
Certificates 177,316 - - - - - - - 177,316
deposits 88,693 - - - 7,571 17,717 (6,472) (572) 106,937
Total 3,089,733 1,197,570 62,789 86,513 119,529 67,665 (24,751) (5,638) 4,593,410
291
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292
We Are

Kenanga

31 DECEMBER 2022
Strong
Our Leaders

Message From

31 December 2021
Malaysia 50,868 - - - - - - - 50,868
Approach

Our Sustainability

Malaysia 155,772 - - - - - - - 155,772

Term loans - 399,276 43,190 - 63,073 - - (2,716) 502,823
Share margin financing 439,292 556,908 53,912 42,553 63 64,700 (13,789) - 1,143,639
Islamic share margin financing 16 13,051 404 - - - - - 13,471
Governed
How We Are
Others - - - 97 - - - - 97
Debt instruments:
Certificates 91,934 - - - - - - - 91,934
Financial
Statements
Corporate Bonds 128,962 - - - - - - - 128,962

Islamic Negotiable Instruments of
Deposits 199,724 - - - - - - - 199,724
Equity instrument:
Corporate Bonds 20,012 - - - - - - - 20,012
Information
Shareholders’

Certificates 39,912 - - - - - - - 39,912
Islamic Corporate Sukuk 147,285 6,451 - - - - - - 153,736
deposits 116,359 - - - 1,872 7,350 (4,999) (462) 120,120
Additional
Information
Total 3,493,799 1,040,995 122,313 125,563 79,341 89,758 (20,064) (5,244) 4,926,461
Annual Report 2022

31 DECEMBER 2022
(iii) Credit risk exposure for each internal credit risk rating
Group Bank
Total Total
2022 2022
Internal credit rating RM’000 RM’000
Strong
AAA 3,155,409 2,624,044
AA 494,376 465,690
Satisfactory
A 849,543 882,102
BBB 320,208 345,256
Substandard
BB 123,275 123,275
B 15 15
C 4,978 4,978
Default
D 52,832 42,914
Non-rated 102,332 105,136
5,102,968 4,593,410
Group Bank
Total Total
2021 2021
Internal credit rating RM’000 RM’000
Strong
AAA 3,406,419 2,858,974
AA 694,207 649,033
Satisfactory
A 729,493 739,960
BBB 272,841 299,379
Substandard
BB 126,249 126,249
B 57,201 57,201
C 408 408
Default
D 77,470 69,694
Non-rated 125,563 125,563
5,489,851 4,926,461
293

31 DECEMBER 2022
(iv) Ageing analysis of financial assets which are past due but not impaired
Less than 1 to 12 >12

1 month months months Total
RM’000 RM’000 RM’000 RM’000
Group
2022
Share margin financing - - 34,273 34,273
Corporate loans 63,386 - - 63,386
Other loans - - 7,203 7,203
Other assets - - 80 80
Total 63,386 - 41,556 104,942
2021
Share margin financing - 64 9,983 10,047
Total 63,101 64 10,063 73,228
Bank
2022
Share margin financing - - 34,273 34,273
Total 63,386 - 34,353 97,739
2021
Share margin financing - 64 9,983 10,047
Total 63,101 64 10,063 73,228
294
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31 DECEMBER 2022
(v) Estimated value of collateral and other charges related to financial assets that are past due and individually
impaired
Unsecured
portion of
Cash and Real Total value Credit credit
securities estate Other of collateral exposure exposure
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Group
2022
Loans, advances
and financing
Share margin
financing 3,982 5,496 - 9,478 26,511 17,033
Others 3,360 - - 3,360 5,630 2,270
Balances due from
clients and
brokers - - - - 1,246 1,246
Other assets - - 10,600 10,600 21,927 11,327
7,342 5,496 10,600 23,438 55,314 31,876
2021
Loans, advances
and financing
Share margin
financing 35,134 6,891 - 42,025 55,814 13,789
Others - - - - 664 664
Balances due from
clients and
brokers - - - - 1,276 1,276
Other assets - - 2,350 2,350 7,349 4,999
35,134 6,891 2,350 44,375 65,103 20,728
295

31 DECEMBER 2022
(v) Estimated value of collateral and other charges related to financial assets that are past due and individually
impaired (cont’d.)
Unsecured
portion of
Cash and Real Total value Credit credit
securities estate Other of collateral exposure exposure
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Bank
2022
Loans, advances
and financing
Share margin
financing 3,982 5,496 - 9,478 26,511 17,033
Balances due from
clients and
brokers - - - - 1,246 1,246
Other assets - - 11,245 11,245 17,717 6,472
3,982 5,496 11,245 20,723 45,474 24,751
2021
Loans, advances
and financing
Share margin
financing 35,134 6,891 - 42,025 55,814 13,789
Balances due from
clients and
brokers - - - - 1,276 1,276
Other assets - - 2,351 2,351 7,350 4,999
35,134 6,891 2,351 44,376 64,440 20,064
296
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31 DECEMBER 2022
(b) Market risk
Market risk is the risk of loss arising from changes in prices of equity instruments and other financial instruments in the
markets in which the Group and the Bank operate. The Group and the Bank also engage in bond proprietary trading
to generate revenue in anticipation of changes in prices that may occur in the debt capital market.
The Group and the Bank manage the risk of unfavourable price changes by cautious reviews of investments and
collaterals held with continuous monitoring of their performance and risk profiles by qualified personnel.
(i) Interest rate risk
In macro terms, interest rate risk refers to the overall sensitivity of the Group’s and of the Bank’s earnings and/
or economic values of the Group’s and of the Bank’s portfolio to changes in interest rates. Interest rate risk is
managed through various risk management techniques including re-pricing gap, net interest income simulation
and stress testing.
The Group and the Bank are exposed to various risks associated with the effects of fluctuations in the prevailing
levels of market interest rates on its financial position and cash flows. The effect of changes in the levels of interest
rates on the market value of securities is monitored regularly and the outcome of mark-to-market valuations is
escalated to management regularly. The table below summarises the effective interest rates at the reporting date
and the periods in which the financial instruments will reprice or mature, whichever is the earlier.
Interest rate sensitivity analysis
The Board has established limits on the trading and non-trading interest rate gaps activities. In accordance with
the Group’s and the Bank’s policy, positions are monitored on a daily basis and hedging strategies are used to
ensure positions are maintained within the established limits.
The sensitivity of interest rate to the statements of profit and loss and other comprehensive income and equity
is the effect of the assumed changes in interest rates level on the profit and loss for the financial year, based on
the financial assets and financial liabilities held as at the reporting date.
297
298
We Are
(b) Market risk (cont’d.)

Kenanga
(i) Interest rate risk (cont’d.)

31 DECEMBER 2022
Non Effective
Up to 1 >1-3 >3-12 Over interest Trading interest
Group month months months >1-5 years 5 years sensitive book Total rate
Our Leaders
Message From
2022 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 %
Assets
Cash and bank
balances 1,202,089 32,007 - - - 498,690 - 1,732,786 2.19
Financial assets at
Approach
FVTPL - - - - - - 322,139 322,139 3.76

Our Sustainability
Financial instruments at
FVOCI 9,978 45,017 10,078 105,393 147,413 1,294 - 319,173 3.91
Financial instruments
at AC - 45,029 60,067 80,528 263,490 - - 449,114 4.29
Derivative financial
Governed
assets - - - - - 85,217 - 85,217

How We Are
Loans, advances and

financing 1,634,219 8,638 23,301 24,315 - 2 - 1,690,475 7.02
Balances due from
clients and brokers - - - - - 427,638 - 427,638
Other assets 56,596 - - - - 127,157 - 183,753
Financial
Statements
Other non interest

sensitive balances - - - - - 752,062 - 752,062
Total assets 2,902,882 130,691 93,446 210,236 410,903 1,892,060 322,139 5,962,357
Information
Shareholders’
Additional
Information
Non Effective
Group (cont’d.) month months months >1-5 years 5 years sensitive book Total rate
2022 (cont’d.) RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 %
Liabilities
Deposits from
customers 1,856,701 851,371 453,006 - - - - 3,161,078 2.35
Deposits and placement
of banks and other
financial institutions 378,359 37,000 - - - - - 415,359 2.35
Borrowings 25,500 - - - 180,500 - - 206,000 4.76
liabilities - - - - - 16,496 - 16,496
Balances due to clients
and brokers - - - - - 732,709 - 732,709
Other liabilities-
structured product 2,879 - - - - - - 2,879 29.86
Other non interest
Total liabilities 2,263,439 888,371 453,006 - 180,500 1,154,217 - 4,939,533
Equity - - - - - 1,017,280 - 1,017,280
Non-controlling interest - - - - - 5,544 - 5,544
Total liabilities and
shareholders’ equity 2,263,439 888,371 453,006 - 180,500 2,177,041 - 5,962,357
On-balance sheet
interest sensitivity gap 639,443 (757,680) (359,560) 210,236 230,403 (284,981) 322,139 -
Cumulative interest
sensitivity gap 639,443 (118,237) (477,797) (267,561) (37,158) (322,139) - -
299
31 DECEMBER 2022
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300
We Are

Kenanga

31 DECEMBER 2022
Non Effective
Our Leaders
Message From
Assets
Cash and bank
balances 1,360,597 10,419 - - - 526,368 - 1,897,384 1.71
Financial assets at
Approach
FVTPL - - - - - - 387,322 387,322 4.35

Our Sustainability
FVOCI 169,864 49,881 169,272 159,037 188,060 1,460 - 737,574 3.70
at AC - 6,452 - 166,346 40,862 - - 213,660 4.37
Governed
assets - - - - - 81,453 - 81,453

How We Are
Loans, advances and

financing 1,684,831 14,513 18,657 57,315 - 97 - 1,775,413 6.91
Balances due from
Other assets 93,849 - - - - 144,973 - 238,822
Financial
Statements
Other non interest

Total assets 3,309,141 81,265 187,929 382,698 228,922 1,841,245 387,322 6,418,522
Information
Shareholders’
Additional
Information
Non Effective
Liabilities
Deposits from
customers 1,638,170 666,478 732,630 100,000 - - - 3,137,278 1.89
of banks and other
financial institutions 369,958 242,904 40,000 - - - - 652,862 1.89
Borrowings 56,200 3,000 - - 185,500 - - 244,700 4.54
liabilities - - - - - 28,760 - 28,760
and brokers - - - - - 665,968 - 665,968
Other liabilities-
Other non interest
Total liabilities 2,067,496 912,382 772,630 100,000 185,500 1,325,484 - 5,363,492
Equity - - - - - 1,050,329 - 1,050,329
Non-controlling interest - - - - - 4,701 - 4,701
shareholders’ equity 2,067,496 912,382 772,630 100,000 185,500 2,380,514 - 6,418,522
On-balance sheet
interest sensitivity gap 1,241,645 (831,117) (584,701) 282,698 43,422 (539,269) 387,322 -
Cumulative interest
sensitivity gap 1,241,645 410,528 (174,173) 108,525 151,947 (387,322) - -
301
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We Are

Kenanga

31 DECEMBER 2022
Non Effective
Bank month months months >1-5 years 5 years sensitive book Total rate
Our Leaders
Message From
Assets
Cash and bank
balances 1,127,034 21,955 - - - 113,936 - 1,262,925 2.19
Financial assets at
Approach
FVTPL - - - - - - 324,626 324,626 3.76

Our Sustainability
FVOCI 9,978 45,017 10,078 105,393 147,413 1,294 - 319,173 3.91
at AC - 45,029 60,067 80,528 263,490 - - 449,114 4.29
Governed
assets - - - - - 85,217 - 85,217

How We Are
Loans, advances and

financing 1,700,507 3,001 - - - 2 - 1,703,510 7.02
Balances due from
Other assets - - - 30,341 - 95,092 - 125,433
Financial
Statements
Other non interest

Total assets 2,837,519 115,002 70,145 216,262 410,903 1,481,735 324,626 5,456,192
Information
Shareholders’
Additional
Information
Non Effective
Bank (cont’d.) month months months >1-5 years 5 years sensitive book Total rate
Liabilities
Deposits from
customers 1,963,144 881,767 454,394 - - - - 3,299,305 2.35
of banks and other
financial institutions 378,359 37,000 - - - - - 415,359 2.35
Borrowings 8,000 - - - 180,500 - - 188,500 4.74
liabilities - - - - - 16,496 - 16,496
and brokers - - - - - 262,976 - 262,976
Other liabilities-
Other non interest
Total liabilities 2,352,382 918,767 454,394 - 180,500 546,368 - 4,452,411
Equity - - - - - 1,003,781 - 1,003,781
shareholders’ equity 2,352,382 918,767 454,394 - 180,500 1,550,149 - 5,456,192
On-balance sheet
interest sensitivity gap 485,137 (803,765) (384,249) 216,262 230,403 (68,414) 324,626 -
Cumulative interest
sensitivity gap 485,137 (318,628) (702,877) (486,615) (256,212) (324,626) - -
303
31 DECEMBER 2022
Annual Report 2022
304
We Are

Kenanga

31 DECEMBER 2022
Non Effective
Bank month months months >1-5 years 5 years sensitive book Total rate
Our Leaders
Message From
Assets
Cash and bank
balances 1,321,399 - - - - 137,757 - 1,459,156 1.71
Financial assets at
Approach
FVTPL - - - - - - 386,367 386,367 4.35

Our Sustainability
FVOCI 169,864 49,881 169,272 159,037 188,060 1,460 - 737,574 3.70
at AC - 6,452 - 166,346 40,862 - - 213,660 4.37
Governed
assets - - - - - 81,453 - 81,453

How We Are
Loans, advances and

financing 1,738,367 11,151 - - - 97 - 1,749,615 6.91
Balances due from
Other assets - - - 29,761 - 108,168 - 137,929
Financial
Statements
Other non interest

Total assets 3,229,630 67,484 169,272 355,144 228,922 1,432,855 386,367 5,869,674
Information
Shareholders’
Additional
Information
Non Effective
Bank (cont’d.) month months months >1-5 years 5 years sensitive book Total rate
Liabilities
Deposits from
customers 1,715,418 701,132 734,050 100,000 - - - 3,250,600 1.89
of banks and other
financial institutions 369,958 242,904 40,000 - - - - 652,862 1.89
Borrowings 19,200 - - - 185,500 - - 204,700 4.54
liabilities - - - - - 28,760 - 28,760
and brokers - - - - - 265,296 - 265,296
Other liabilities-
Other non interest
Total liabilities 2,107,744 944,036 774,050 100,000 185,500 716,994 - 4,828,324
Equity - - - - - 1,041,350 - 1,041,350
shareholders’ equity 2,107,744 944,036 774,050 100,000 185,500 1,758,344 - 5,869,674
On-balance sheet
interest sensitivity gap 1,121,886 (876,552) (604,778) 255,144 43,422 (325,489) 386,367 -
Cumulative interest
sensitivity gap 1,121,886 245,334 (359,444) (104,300) (60,878) (386,367) - -
305
31 DECEMBER 2022
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31 DECEMBER 2022
Interest rate sensitivity analysis
The following table demonstrates the impact of a +/- 150 basis points change in interest rates, ceteris paribus,
on the Group’s profit or loss and equity.
Change in Impact on Impact Change in Impact on Impact

interest profit or on interest profit or on
rates loss equity* rates loss equity*
2022 2022 2022 2021 2021 2021
RM’000 RM’000 RM’000 RM’000
+150 (3,500) (33,302) +150 (2,874) (14,413)

-150 3,500 33,302 -150 2,874 14,413
* exclude tax impact
(ii) Foreign currency exchange risk
Foreign currency risk is the risk of financial loss due to adverse movements in foreign exchange rates.
The Group and the Bank are exposed to currency risk primarily through trading activities that are governed by
the Foreign Exchange Proprietary Trading Policy.
Currency rate sensitivity analysis
The following table shows the impact of a 5% movement of MYR, ceteris paribus, on the Group’s profit/loss:
Foreign currency is denoted in the table below:
Currency Abbreviation Currency Abbreviation Currency Abbreviation
AUD Australian Dollar EUR Euro IDR Indonesian Rupiah

CHF Swiss Franc GBP British Pound JPY Japanese Yen
CNY Chinese Yuan HKD Hong Kong Dollar NZD New Zealand Dollar
PHP Philippine Peso THB Thai Baht SAR Saudi Riyal
SGD Singapore Dollar USD US Dollar
306
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31 DECEMBER 2022
(ii) Foreign currency exchange risk (cont’d.)
Currency rate sensitivity analysis (cont’d.)
Changes Impact on Impact Changes Impact on Impact

in foreign profit or on in foreign profit or on
exchange loss equity exchange loss equity
Rates 2022 2022 Rates 2021 2021
Currency RM’000 RM’000 RM’000 RM’000
AUD 5% (11) - 5% 75 -
CHF 5% 0 - 5% 1 -
CNY 5% 3 - 5% 18 -
EUR 5% (10) - 5% (2) -
GBP 5% (3) - 5% (38) -
HKD 5% (12) - 5% 71 -
IDR 5% 5 - 5% 3 -
JPY 5% (43) - 5% (0) -
NZD 5% (1) - 5% 1 -
PHP 5% 2 - 5% 2 -
SGD 5% 108 - 5% (6) -
THB 5% 4 - 5% 6 -
USD 5% (98) - 5% 249 -
Arising from the Group’s investment in the associate company in Saudi Arabia, there is a natural position held
in foreign currency exposure in Saudi Riyal. The following shows the impact of a 5% price movement on this
position:
Changes Impact on Impact Changes Impact on Impact

in foreign profit or on in foreign profit or on
exchange loss equity exchange loss equity
Rates 2022 2022 Rates 2021 2021
SAR 5% - (4,961) 5% - (4,319)
307

31 DECEMBER 2022
(iii) Equity price sensitivity analysis
Equity price risk is the risk of financial loss arising from adverse changes in prices of equities and equity
derivatives.
The following table demonstrates the impact of a +/- 30% change in equity prices across the board on the
Group’s profit or loss and equity.
Change Impact on Impact Change Impact on Impact

in equity profit or on in equity profit or on
price loss equity price loss equity
2022 2022 2022 2021 2021 2021
Equity- +30% 31,812 - +30% 17,179 -

investments -30% (56,362) - -30% (49,939) -
From risk management perspective, a risk limits framework governing the activities of equity and equity
derivatives trading has been established, primarily intended to:
1) Prevent excessive exposures to a single risk factor or a group of risk factors; and
2) Constrain the general level of risk taking for a business.
Additionally, other components of limit framework including stop-loss trigger, issuance size, permitted products,
management oversights etc. were put in place for better governance as well as to embrace best practices of
market risk management. The risk framework was designed in accordance to the Group’s and the Bank’s risk
appetite and a closely controlled risk parameter, e.g. stop-loss trigger, will ensure losses arising from the course
of trading are limited.
In addition, the Group’s associate company has made some equity investments in Saudi Arabia. The impact of a
+/- 30% change in equity prices on the Group arising from these investments are shown as follows:
Change Impact on Impact Change Impact on Impact

in equity profit or on in equity profit or on
price loss equity price loss equity
2022 2022 2022 2021 2021 2021
Equity- +30% - 11,323 +30% - 17,403

investments -30% - (11,323) -30% - (17,403)
308
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31 DECEMBER 2022
(c) Liquidity risk
Liquidity risk is the risk of loss as a result of the Group’s or of the Bank’s inability to meet cash flow obligations on a
timely and cost effective manner. Liquidity risk is managed through the Liquidity Coverage Ratio Framework issued by
BNM, internal policies and management oversight by Group Risk Committee. A Contingency Funding Plan has been
formulated covering across the policies, procedures, roles and responsibilities, funding strategies and notwithstanding,
the deployment of such in a liquidity event.
The Group and the Bank actively manage their operating cash flows and the availability of funding so as to ensure
that all funding needs are being met. As part of its overall prudent liquidity management, the Group and the Bank
maintain sufficient levels of cash or cash convertible investments to meet its working capital requirements in addition
to maintaining available banking facilities, to meet any immediate operating cash flow requirements.
In accordance with BNM’s Liquidity Coverage Ratio guideline, the Group and the Bank maintain a portfolio of highly
marketable and diverse assets which are assumed to be easily liquidated in the event of an unforeseen interruption
of cash flow. In addition, the Group and the Bank maintain a statutory deposit with BNM equal to 2.0% of net eligible
liabilities.
(i) Analysis of assets and liabilities by remaining contractual maturities
The table below summarises the contractual maturity profile of the Group’s assets and liabilities as at
31 December 2022. The contractual maturity profile often may not reflect the actual behavioural patterns.
Non
On Up to 1 >1 to 3 >3 to 6 >6 to 12 >1 specific
demand month months months months year maturity Total
Group 2022 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Assets
Cash and bank
balances 498,690 1,202,089 32,007 - - - - 1,732,786
Financial assets at
FVTPL - - - - - 9,042 313,097 322,139
FVOCI - 9,978 45,017 - 10,078 252,806 1,294 319,173
at AC - - 45,029 50,002 10,065 344,018 - 449,114
assets - 27,479 - - 4,530 53,208 - 85,217
Loans, advances and
financing 228,608 1,139,384 5,639 79,749 18,595 218,500 - 1,690,475
Balances due from
clients and brokers - 427,638 - - - - - 427,638
Other assets 4,991 65,255 3,415 2,304 - - 107,788 183,753
Others - 1,697 1,288 1,922 3,839 16,218 727,098 752,062
Total assets 732,289 2,873,520 132,395 133,977 47,107 893,792 1,149,277 5,962,357
309

31 DECEMBER 2022
(c) Liquidity risk (cont’d.)
(i) Analysis of assets and liabilities by remaining contractual maturities (cont’d.)
Non
Liabilities
Deposits from
customers 67,265 1,789,437 851,371 390,922 62,083 - - 3,161,078
Deposits and
placements of banks
and other financial
institutions - 378,359 37,000 - - - - 415,359
liabilities - 286 991 1,833 13,386 - - 16,496
and brokers - 732,709 - - - - - 732,709
Borrowings - 17,500 2,800 2,800 2,400 180,500 - 206,000
Other liabilities balances 1,707 104,539 7,929 3,703 4,102 17,843 268,068 407,891
Total liabilities 68,972 3,022,830 900,091 399,258 81,971 198,343 268,068 4,939,533
Net maturity mismatch 663,317 (149,310) (767,696) (265,281) (34,864) 695,449 881,209 1,022,824
The table below shows the contractual expiry by maturity of the Group’s contingent liabilities and commitments.
Non
Commitments to extend
credit:
- share margin
financing 2,749,435 - - - - - - 2,749,435
- foreign exchange
related contracts - 24,684 21,500 - - - - 46,184
Miscellaneous
commitments-
monies held in trust
on behalf of client 1,069,081 - - - - - - 1,069,081
Other commitments-
corporate loan 70,561 10,000 - - - - - 80,561
Securities borrowing
and lending 11,102 - - - - - - 11,102
Total commitments
and guarantees 3,900,179 34,684 21,500 - - - - 3,956,363
310
Annual Report 2022

31 DECEMBER 2022
The table below summarises the contractual maturity profile of the Group’s assets and liabilities as at
Non
Assets
Cash and bank
balances 526,368 1,360,597 10,419 - - - - 1,897,384
Financial assets at
FVTPL - - - - - 23,873 363,449 387,322
FVOCI - 169,864 49,881 70,530 98,742 347,097 1,460 737,574
at AC - - 1,489 - - 212,171 - 213,660
assets - 38 - 29,465 51,950 - - 81,453
Loans, advances and
financing 229,505 1,159,841 56,391 18,657 2,943 307,979 97 1,775,413
Balances due from
Other assets 6,740 150,491 3,134 1,754 - - 76,703 238,822
Others - 1,479 1,156 1,734 3,437 10,668 733,955 752,429
Total assets 762,613 3,176,775 122,470 122,140 157,072 901,788 1,175,664 6,418,522
311

31 DECEMBER 2022
Non
Liabilities
Deposits from
customers 39,848 1,598,322 666,478 492,875 239,755 100,000 - 3,137,278
Deposits and
placements of banks
and other financial
institutions - 369,958 242,904 40,000 - - - 652,862
liabilities - - 4,712 4,031 20,017 - - 28,760
and brokers - 665,968 - - - - - 665,968
Borrowings - 37,000 5,800 2,800 5,600 193,500 - 244,700
Other liabilities balances 630 181,851 5,610 3,220 4,287 40,092 398,234 633,924
Net maturity mismatch 722,138 323,845 (803,008) (420,729) (112,482) 567,836 777,430 1,055,030
The table below shows the contractual expiry by maturity of the Group’s contingent liabilities and commitments.
Non
credit:
- share margin
financing 2,774,310 - - - - - - 2,774,310
- foreign exchange
related contracts - 7,930 - 2,292 - - - 10,222
Miscellaneous
commitments-
Other commitments-
corporate loan 50,742 - - - - 14,000 41,275 106,017
and lending 27,637 - - - - - - 27,637
Total commitments
and guarantees 4,102,368 7,930 - 2,292 - 14,000 41,275 4,167,865
312
Annual Report 2022

31 DECEMBER 2022
The table below summarises the contractual maturity profile of the Bank’s assets and liabilities as at
Non
Bank 2022 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Assets
Cash and bank
balances 113,936 1,127,034 21,955 - - - - 1,262,925
Financial assets at
FVTPL - - - - - 9,042 315,584 324,626
FVOCI - 9,978 45,017 - 10,078 252,806 1,294 319,173
at AC - - 45,029 50,002 10,065 344,018 - 449,114
assets - 27,479 - - 4,530 53,208 - 85,217
Loans, advances and
financing 253,656 1,136,023 2 72,530 2,513 238,786 - 1,703,510
Balances due from
Other assets 5,572 8,048 3,415 2,304 - 29,761 76,333 125,433
Others - 1,582 1,058 1,587 3,174 13,139 738,177 758,717
Total assets 373,164 2,737,621 116,476 126,423 30,360 940,760 1,131,388 5,456,192
313

31 DECEMBER 2022
Non
Liabilities
Deposits from
customers 67,265 1,895,880 881,767 392,310 62,083 - - 3,299,305
Deposits and
placements of banks
and other financial
institutions - 378,359 37,000 - - - - 415,359
liabilities - 286 991 1,833 13,386 - - 16,496
and brokers - 262,976 - - - - - 262,976
Borrowings - - 2,800 2,800 2,400 180,500 - 188,500
Other liabilities balances 1,707 104,460 7,705 3,374 3,439 14,603 134,487 269,775
The table below shows the contractual expiry by maturity of the Bank’s contingent liabilities and commitments.
Non
credit:
- share margin
financing 2,749,435 - - - - - - 2,749,435
- foreign exchange
related contracts - 24,684 21,500 - - - - 46,184
Miscellaneous
commitments-
Other commitments-
corporate loan 100,561 10,000 - - 45,000 15,000 - 170,561
and lending 11,102 - - - - - - 11,102
Total commitments
and guarantees 3,930,179 34,684 21,500 - 45,000 15,000 - 4,046,363
314
Annual Report 2022

31 DECEMBER 2022
The table below summarises the contractual maturity profile of the Bank’s assets and liabilities as at
Non
Assets
Cash and bank
balances 137,757 1,321,399 - - - - - 1,459,156
Financial assets at
FVTPL - - - - - 23,873 362,494 386,367
FVOCI - 169,864 49,881 70,530 98,742 347,097 1,460 737,574
at AC - - 1,489 - - 212,171 - 213,660
assets - 38 - 29,465 51,950 - - 81,453
Loans, advances and
financing 256,044 1,157,109 53,029 - 2,943 280,393 97 1,749,615
Balances due from
Other assets 6,456 56,632 3,134 1,754 - 29,761 40,192 137,929
Others - 1,396 991 1,486 2,972 8,359 754,346 769,550
Total assets 400,257 3,040,808 108,524 103,235 156,607 901,654 1,158,589 5,869,674
315

31 DECEMBER 2022
Non
Liabilities
Deposits from
customers 39,848 1,675,570 701,132 494,295 239,755 100,000 - 3,250,600
Deposits and
placements of banks
and other financial
institutions - 369,958 242,904 40,000 - - - 652,862
liabilities - - 4,712 4,031 20,017 - - 28,760
and brokers - 265,296 - - - - - 265,296
Borrowings - - 2,800 2,800 5,600 193,500 - 204,700
Other liabilities balances 630 181,503 5,450 2,978 3,828 37,676 194,041 426,106
The table below shows the contractual expiry by maturity of the Bank’s contingent liabilities and commitments.
Non
credit:
- share margin
financing 2,774,310 - - - - - - 2,774,310
- foreign exchange
related contracts - 7,930 - 2,292 - - - 10,222
Miscellaneous
commitments-
Other commitments-
corporate loan 124,242 - - - - 20,000 41,275 185,517
and lending 27,637 - - - - - - 27,637
Total commitments
and guarantees 4,175,868 7,930 - 2,292 - 20,000 41,275 4,247,365
316
Annual Report 2022

31 DECEMBER 2022
(ii) Maturity analysis of financial liabilities on an undiscounted basis
The following tables show the contractual undiscounted cash flows payable for financial liabilities by remaining
contractual maturities. The financial liabilities in the tables below will not agree to the balances reported in the
statements of financial position as the tables incorporate all contractual cash flows, on an undiscounted basis,
relating to both principal and interest payments. The contractual maturity profile does not necessarily reflect the
behavioural cash flows.
Non
Up to 1 >1 to 3 >3 to 6 >6 to 12 >1 specific
month months months months year maturity Total
Group 2022 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Deposits from customers 1,862,375 882,553 397,455 64,377 - - 3,206,760
Deposits and placements
of banks and other
financial institutions 380,124 37,376 - - - - 417,500
liabilities 286 991 1,833 13,386 - - 16,496
and brokers 732,709 - - - - - 732,709
Borrowings 17,586 2,826 2,826 2,423 268,951 - 294,612
Other liabilities balances 106,246 7,929 3,703 4,102 17,843 268,068 407,891
Total undiscounted
financial liabilities 3,099,326 931,675 405,817 84,288 286,794 268,068 5,075,968
Non
Group 2021 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Deposits from customers 1,643,651 672,971 499,094 244,109 123,025 - 3,182,850
of banks and other
financial institutions 370,666 243,910 40,454 - - - 655,030
liabilities - 4,712 4,031 20,017 - - 28,760
and brokers 665,968 - - - - - 665,968
Borrowings 37,162 5,853 2,818 5,637 193,159 - 244,629
Total undiscounted
317

31 DECEMBER 2022
(ii) Maturity analysis of financial liabilities on an undiscounted basis (cont’d.)
Non
Bank 2022 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Deposits from customers 1,969,437 913,107 398,864 64,377 - - 3,345,785
of banks and other
financial institutions 380,124 37,376 - - - - 417,500
liabilities 286 991 1,833 13,386 - - 16,496
and brokers 262,976 - - - - - 262,976
Borrowings - 2,826 2,826 2,423 268,951 - 277,026
Total undiscounted
Non
Bank 2021 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Deposits from customers 1,721,198 707,751 500,546 244,109 123,025 - 3,296,629
of banks and other
financial institutions 370,666 243,910 40,454 - - - 655,030
liabilities - 4,712 4,031 20,017 - - 28,760
and brokers 265,296 - - - - - 265,296
Borrowings - 2,818 2,818 5,637 193,159 - 204,433
Total undiscounted
318
Annual Report 2022

31 DECEMBER 2022
(d) Operational risk
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or
resulting from external events.
Operational risk is managed through an effective operational risk management framework which include development
of policies, processes and procedures for managing operational risk in the Group, independent review of the risk
management function by internal audit and oversight by the management and Board of Directors.
The operational risk management processes include identifying and assessing operational risks of the Group and
operational risk loss data collection to track the factual information which can assist the organisation and business
and support units to effectively understand where their real risks exist, identify control weaknesses, underlying causes
and introduce controls to strengthen the weaknesses.
Any actual, near-miss or potential losses from any operational risk loss events are to be reported to Management.
51. FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value measurement
The Group and the Bank use the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:
Level 1 - quoted (unadjusted) market prices in active for identical assets or liabilities.
Level 2 - other techniques for which all inputs which have a significant effect on the recorded fair value are observable,
either directly or indirectly.
Level 3 - techniques which use inputs that have a significant effect on the recorded fair value that are not based on
observable market data.
319

31 DECEMBER 2022
51. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONT’D.)
Fair value measurement (cont’d.)
Group
Level 1 Level 2 Level 3 Total

2022 RM’000 RM’000 RM’000 RM’000
Financial assets measured at fair value

- Debt securities - 106,014 - 106,014
- Equity securities 144,513 - 71,612 216,125
- Debt securities - 317,879 - 317,879
- Equity securities - - 1,294 1,294
Derivative financial assets - 85,217 - 85,217
Financial assets for which fair values are

disclosed
Financial investments at AC - 458,563 - 458,563
Loans, advances and financing - - 1,696,451 1,696,451
144,513 967,673 1,769,357 2,881,543
Financial liability measured at fair value

Derivative financial liabilities 3,979 12,517 - 16,496
Financial liabilities for which fair values are

disclosed
Borrowings - 170,255 - 170,255
3,979 182,772 - 186,751
320
Annual Report 2022

31 DECEMBER 2022
Group

2021 RM’000 RM’000 RM’000 RM’000

- Debt securities - 119,318 - 119,318
- Equity securities 206,941 5,291 55,772 268,004
- Debt securities - 736,114 - 736,114

disclosed
206,941 1,161,331 1,839,327 3,207,599


disclosed
Borrowings - 204,020 - 204,020
23,499 209,281 - 232,780
321

31 DECEMBER 2022
Bank

2022 RM’000 RM’000 RM’000 RM’000

- Debt securities - 109,042 - 109,042
- Debt securities - 317,879 - 317,879

disclosed
143,972 970,701 1,783,319 2,897,992


disclosed
Borrowings - 152,746 - 152,746
3,979 165,263 - 169,242
322
Annual Report 2022

31 DECEMBER 2022
Bank

2021 RM’000 RM’000 RM’000 RM’000

- Debt securities - 123,873 - 123,873
- Debt securities - 736,114 - 736,114

disclosed
206,722 1,160,595 1,814,850 3,182,167


disclosed
Borrowings - 164,018 - 164,018
23,499 169,279 - 192,778
323

31 DECEMBER 2022
There have been no transfers between Level 1 and Level 2 during the financial years.
The methods and assumptions used to estimate the fair value of the financial instruments not measured at fair value are as
disclosed in Note 48.
Movements in Level 3 financial instruments measured at fair value
The level of the fair value hierarchy of financial instruments is determined at the beginning of each reporting period.
The following table shows a reconciliation of the opening and closing amounts of Level 3 financial assets which are recorded
at fair value:
Group and Bank

Equity Equity
securities securities
at FVTPL at FVOCI
RM’000 RM’000
2022
Balance at the beginning of the financial year 55,772 1,460
Acquisition of investments during the financial year 10,000 -
Revaluation gain/(loss) during the financial year 5,840 (166)
Balance at the end of the financial year 71,612 1,294
2021
Balance at the beginning of the financial year 48,453 1,990
Acquisition of investments during the financial year 10,990 -
Changes in level of fair value during the financial year (25,068) -
Revaluation gain/(loss) during the financial year 21,397 (530)
Balance at the end of the financial year 55,772 1,460
324
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31 DECEMBER 2022
52. OPERATIONS OF ISLAMIC BANKING
The Islamic banking operations of the Bank are as follows:
(a) Statements of financial position as at 31 December 2022
Group and Bank

2022 2021
Note RM’000 RM’000
Assets
Cash and bank balances (e) 438,476 424,712
Financial assets at FVTPL (f) 100,000 100,000
Financial investments at FVOCI (g)(i) 65,618 242,521
Financial investments at AC (g)(ii) 116,829 68,044
Financing and advances (h) 97,492 103,491
Balances due from clients and brokers 1,477 2,124
Other assets (i) 2,474 3,246
Property, plant and equipment 13 18
Intangible assets 2 3
Deferred tax assets 115 -
Total assets 822,496 944,159
Liabilities
Deposits from customers (j) 472,902 555,137
Balances due to clients and brokers 4,606 7,493
Other liabilities (k) 150,968 193,784
Deferred tax liabilities - 308
Provision for taxation and zakat 3,024 3,472
Islamic banking capital funds

Islamic banking funds 120,000 120,000
Reserves 70,996 63,965
Total Islamic banking capital funds 190,996 183,965
Total liabilities and Islamic banking capital funds 822,496 944,159
325

31 DECEMBER 2022
52. OPERATIONS OF ISLAMIC BANKING (CONT’D.)
(b) Statements of profit or loss and other comprehensive income

For the financial year ended 31 December 2022
Group and Bank

2022 2021
Note RM’000 RM’000
Income derived from investment of depositors’ funds (l) 26,727 29,229

Income derived from investment of shareholders’ funds (m) 6,616 6,725
Credit loss (expense)/reversal (87) 181
Total attributable income 33,256 36,135
Profit distributed to depositors (n) (17,704) (18,262)
Net Income 15,552 17,873
Finance cost (438) (864)
Personnel expenses (o)(i) (805) (768)
Other overhead expenses (o)(ii) (3,013) (3,065)
Profit before taxation and zakat 11,296 13,176
Taxation and zakat (3,024) (3,472)
Profit for the financial year 8,272 9,704
Other comprehensive income

Items that will be reclassified subsequently to profit or loss:
Fair value loss on debt instruments at FVOCI (1,630) (5,435)
Income tax relating to fair value loss on debt instruments 423 1,305
Total other comprehensive income for the financial year, net of tax 7,065 5,574
For consolidation with the conventional banking operations, income from Islamic Banking Window as shown on the
face of the statements of profit or loss of the Group and of the Bank comprise of the following items:
Group and Bank

2022 2021
RM’000 RM’000
Income derived from investment of depositors’ funds 26,727 29,229

Income derived from investment of shareholders’ funds 6,616 6,725
Total income before impairment allowances and overhead expenses 33,343 35,954
Profit distributed to depositors (17,704) (18,262)
Finance cost (438) (864)
Income from Islamic Banking Window operations reported in the

statements of profit or loss of the Group and of the Bank 15,201 16,828
326
Annual Report 2022

31 DECEMBER 2022
(c) Statements of cash flows

Group and Bank

2022 2021
RM’000 RM’000
Cash flows from operating activities

Profit before taxation and zakat 11,296 13,176
Adjustments for:
Depreciation of plant and equipment (Note 52(o)(ii)) 6 8
Amortisation of intangible assets (Note 52(o)(ii)) 1 1
Credit loss expense/(reversal) 87 (181)
Realised loss from sale of financial assets at FVTPL (Note 52(l)) - 1,014
Realised gain from sale of financial investments at FVOCI (Note 52(l)) - (1,571)
Operating profit before working capital changes 11,390 12,447
Changes in operating assets:
Financing and advances 6,040 10,560
Balances due from clients and brokers 647 (665)
Other assets 771 697
Changes in operating liabilities:
Deposits from customers (82,235) (110,356)
Balances due to clients and brokers (2,887) 3,084
Other liabilities (45,982) 76,918
Cash used in operating activities (112,256) (7,315)
Taxation and zakat paid (340) (430)
Net cash used in operating activities (112,596) (7,745)
Cash flows from investing activities

Purchase of property, plant and equipment - (2)
Net sale/(purchase) of securities 126,360 (19,864)
Net cash flows generated from/(used in) investing activities 126,360 (19,866)
Net change in cash and cash equivalents 13,764 (27,611)

Cash and cash equivalents at beginning of the financial year 424,712 452,323
Cash and cash equivalents at end of the financial year 438,476 424,712
327

31 DECEMBER 2022
(d) Statements of changes in Islamic banking funds

Non- distributable Distributable

Islamic
banking Fair value Regulatory ESS Capital Retained
fund reserve reserve reserve reserve* profits Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2022 120,000 906 2,314 13 5,248 55,484 183,965

Profit for the financial year - - - - - 8,272 8,272
Other comprehensive loss for the
financial year - (1,207) - - - - (1,207)
Share based payment under ESS - - - 1 - (35) (34)
Transfer to retained profits - - - (6) - 6 -
Transfer from regulatory reserve - - (53) - - 53 -
At 31 December 2022 120,000 (301) 2,261 8 5,248 63,780 190,996
At 1 January 2021 120,000 5,036 2,442 19 5,248 45,649 178,394

Profit for the financial year - - - - - 9,704 9,704
Other comprehensive loss for the
financial year - (4,130) - - - - (4,130)
Share based payment under ESS - - - 3 - (6) (3)
Transfer to retained profits - - - (9) - 9 -
Transfer from regulatory reserve - - (128) - - 128 -
At 31 December 2021 120,000 906 2,314 13 5,248 55,484 183,965
* Capital reserve arose from the merger adjustment to reflect the capital restructuring as a result of the group internal reorganisation exercise.
328
Annual Report 2022

31 DECEMBER 2022
(e) Cash and bank balances
Group and Bank

2022 2021
RM’000 RM’000
Current account with BNM and banks 19,476 35,712

Money at call and deposit placements with:
Licensed banks 149,000 30,000
Domestic non-bank financial institutions 270,000 -
Bank Negara Malaysia - 359,000
438,476 424,712
(f) Financial assets at FVTPL
Group and Bank

2022 2021
RM’000 RM’000
At fair value
Unquoted securities in Malaysia:
Funds 100,000 100,000
(g) Financial investments other than those measured at FVTPL
Group and Bank

2022 2021
RM’000 RM’000
(i) Financial investments at Fair Value through Other Comprehensive

Income (“FVOCI”):
Money market instruments:

Malaysian Government Investment Certificates - 20,116
Negotiable Instruments of Deposits - 149,844
- 169,960
Debt instruments:
Corporate Sukuk 65,618 72,561
Total financial investments at FVOCI 65,618 242,521
329

31 DECEMBER 2022
(g) Financial investments other than those measured at FVTPL (cont’d.)
Group and Bank

2022 2021
RM’000 RM’000
(ii) Financial investments at AC:

Money market instruments:
Debt instruments:
Corporate Sukuk 77,593 58,049
Total financial investments at AC 116,829 68,044
Total financial investments other than those measured at FVTPL 182,447 310,565
(iii) Impairment losses on financial investments subject to impairment assessment
AC
An analysis of changes in the ECL is, as follows:
Group and Bank

2021
RM’000 RM’000
Stage 1 Total
Movement in ECL
As at 1 January 56 56
New assets originated or purchased (4) (4)
Impact of net re-measurement of ECL (52) (52)
As at 31 December - -
330
Annual Report 2022

31 DECEMBER 2022
(h) Financing and advances
Group and Bank

2022 2021
RM’000 RM’000
Commodity Murabahah term financing

- Shariah contract - others 26,323 20,011
Commodity Murabahah revolving credit
Commodity Murabahah share margin financing
Gross financing and advances 97,547 103,587
Less: Allowance for ECL (55) (96)
Net financing and advances 97,492 103,491
(i) Gross financing and advances analysed by type of customer are as follows:
Domestic business enterprises 42,548 54,058
Individuals 54,999 49,529
97,547 103,587
(ii) Gross financing and advances analysed by geographical distribution are as

follows:
In Malaysia 97,547 103,587
(iii) Gross financing and advances analysed by profit rate sensitivity are as
follows:
Fixed rate 13,311 13,471
Variable rate- Cost plus 84,236 90,116
97,547 103,587
(iv) Gross financing and advances analysed by economic purpose are as

follows:
Purchase of securities 36,618 38,278
Working capital 57,914 48,905
Others 3,015 16,404
97,547 103,587
(v) Gross financing and advances analysed by residual contractual maturity

are as follows:
Within one year 73,737 65,236
More than one year 23,810 38,351
97,547 103,587
331

31 DECEMBER 2022
(h) Financing and advances (cont’d.)
(vi) Impairment allowance for financing and advances are as follows:
2022
Group & Bank Stage 1 Total
ECL allowances RM’000 RM’000
New assets originated 93 93
Assets derecognised or repaid (excluding write-offs) (122) (122)
Net remeasurement of allowance (12) (12)
As at 31 December 55 55
2021
Group & Bank Stage 1 Total
ECL allowances RM’000 RM’000

New assets originated 47 47
Assets derecognised or repaid (excluding write-offs) (185) (185)
Net remeasurement of allowance 15 15
As at 31 December 96 96
(i) Other assets
Group and Bank

2022 2021
RM’000 RM’000
Income receivables 2,433 3,238

Prepayment 6 6
Other receivables 89 55
Less: ECL (54) (53)
2,474 3,246
332
Annual Report 2022

31 DECEMBER 2022
(i) Other assets (cont’d.)
(i) Impairment allowance for other receivables:
2022
Non-credit Credit
As at 1 January 15 38 53
New assets originated 11 - 11
Assets derecognised or repaid (excluding write-offs) - (12) (12)
Transfer of stages during the year (25) 25 -
Net remeasurement of allowance - 2 2
As at 31 December 1 53 54
2021
Non-credit Credit
As at 1 January 17 38 55
New assets originated 9 - 9
Assets derecognised or repaid (excluding write-offs) - (11) (11)
Transfer of stages during the year (11) 11 -
As at 31 December 15 38 53
(j) Deposits from customers
Group and Bank

2022 2021
RM’000 RM’000
(i) By type of deposit:

Tawarruq (Commodity Murabahah deposits) 472,902 555,137
(ii) By type of customers:

Government and statutory bodies 100,000 141,918
Domestic non-bank institutions 264,126 226,211
Business enterprises 93,560 176,319
Individuals 670 583
Subsidiary companies 14,546 10,106
472,902 555,137
(iii) By maturity:
Due within six months 372,902 450,137
Due more than six months 100,000 105,000
472,902 555,137
333

31 DECEMBER 2022
(k) Other liabilities
Group and Bank

2022 2021
RM’000 RM’000
Mudarabah Specific Investment Account 12,237 12,630

Profit payables 2,123 2,277
Other payables 136,608 178,877
150,968 193,784
Included in other payables is fund pending distribution to charitable organisations:
Group and Bank

2022 2021
RM’000 RM’000
Balance as at 1 January - 7
Distribution during the year - (7)
Balance as at 31 December - -
(l) Income derived from investment of depositors’ funds
Group and Bank

2022 2021
RM’000 RM’000
Finance income and hibah

Deposits and placements with financial institutions 8,966 6,864
Financial investments other than those measured at FVTPL 8,290 9,982
Accretion of discount (349) (496)
Others 4 2
18,800 18,273
Other operating income

Net loss on sale of financial assets at FVTPL - (1,014)
Net gain on sale of financial investments other than those measured at FVTPL - 1,571
Fees on financing and advances 1,083 461
Brokerage fee 3,395 4,952
Profit income 3,192 4,871
Advisory fee 340 218
Direct trading expenses (106) (121)
Other non-operating income 23 18
7,927 10,956
26,727 29,229
334
Annual Report 2022

31 DECEMBER 2022
(m) Income derived from investment of shareholders’ funds
Group and Bank

2022 2021
RM’000 RM’000
Finance income and hibah

Financial investments other than those measured at FVTPL 2,291 2,547
Accretion of premium (210) (254)
6,616 6,725
(n) Profit distributed to depositors
Group and Bank

2022 2021
RM’000 RM’000
Deposits from customers and financial institutions

- Murabahah Fund 14,841 15,975
Others 2,863 2,287
17,704 18,262
(o) Other operating expenses
Group and Bank

2022 2021
RM’000 RM’000
(i) Personnel expenses

- salaries, wages, allowances and bonus 637 617
- EPF 100 96
- other staff related expense 68 55
805 768
(ii) Other overhead expenses

Establishment costs
- depreciation 6 8
- amortisation 1 1
- office rental 58 58
- others 16 13
81 80
335

31 DECEMBER 2022
(o) Other operating expenses (cont’d.)
(ii) Other overhead expenses (cont’d.)
Group and Bank

2022 2021
RM’000 RM’000
Marketing and trading expenses

- advertisement and promotions 1 8
1 8
Administration and general expenses

- Fees and brokerage 543 824
- Support service charges 1,936 1,715
- Shariah committee expenses 185 155
- Others 267 283
2,931 2,977
Total other overhead expenses 3,013 3,065
(p) Shariah Committees’ remuneration
Remuneration in aggregate for Shariah Committees for the financial year is as follows:
Remuneration received
Other
Group & Bank Fees emolument Total
Committees members:
31 December 2022
Dr. Ghazali Jaapar 73,000 7,200 80,200
Dr. Mohammad Firdaus Mohammad Hatta 49,000 6,000 55,000
Dr. Fadillah Mansor 43,000 6,000 49,000
165,000 19,200 184,200
31 December 2021
Dr. Ghazali Jaapar 67,000 7,700 74,700
Dr. Mohammad Firdaus Mohammad Hatta 38,000 7,000 45,000
Dr. Fadillah Mansor 30,567 4,000 34,567
135,567 18,700 154,267
336
Annual Report 2022

31 DECEMBER 2022
(q) Capital adequacy
Group and Bank

2022 2021
RM’000 RM’000
CET 1/Tier 1 capital

Islamic banking funds 120,000 120,000
Retained profits 63,780 55,484
Reserves 7,216 8,481
Less:
Intangible assets (2) (3)
Deferred tax (115) -
55% of cumulative gains on financial investments at FVOCI - (499)
Regulatory reserve (2,261) (2,314)
Total CET 1/Tier 1 capital 188,618 181,149
Tier 2 capital
General provision 2,446 2,411
Total Tier 2 capital 2,446 2,411
Total capital 191,064 183,560
CET 1 capital ratio 71.578% 77.917%

Tier 1 capital ratio 71.578% 77.917%
Total capital ratio 72.506% 78.954%
The breakdown of risk-weighted assets (excluding any deferred tax assets) in the various categories of risk-weights
are as follows:
2022 2021
Risk- Risk-
Principal weighted Principal weighted
RM’000 RM’000 RM’000 RM’000
Group and Bank

Credit risk 756,603 234,543 883,247 202,433
Total risk weighted assets 756,603 263,514 883,247 232,491
337

31 DECEMBER 2022
(r) Commitments and contingencies
In the normal course of business, the Group and the Bank enter into various commitments and incur certain contingent
liabilities with legal recourse to their customers. No material losses are anticipated as a result of these transactions.
As at reporting date, the commitments and contingencies are as follows:
Group & Bank

2022 2021
Principal Principal
amount amount
RM’000 RM’000
Commitments to extend credit with maturity of less than 1 year:

- share margin financing 9,439 9,269
- corporate financing 68,350 52,000
Commitments to extend credit with maturity of more than 1 year:
- corporate financing - 11,275
77,789 72,544
(s) Recognition and measurement by main class of Shariah contracts
The recognition and measurement of each main class of Shariah contracts is dependent on the nature of the products,
either financing or deposit product.
338
Annual Report 2022

31 DECEMBER 2022
(t) Liquidity risk
Analysis of assets and liabilities by remaining contractual maturities
The table below summarises the contractual maturity profile of the Islamic banking operation’s assets and liabilities as
at 31 December 2022. The contractual maturity profile often may not reflect the actual behavioural patterns.
Non
Group and Bank demand month months months months year maturity Total
Assets
Cash and bank
balances 19,476 419,000 - - - - - 438,476
Financial assets at
FVTPL - - - - - - 100,000 100,000
at FVOCI - 4,978 5,003 - - 55,637 - 65,618
at AC - - - 10,000 - 106,829 - 116,829
Financing and
advances 57,913 13,256 - - 2,513 23,810 - 97,492
Balances due from
Other assets 5 1,535 407 519 - - 8 2,474
Others - - - - - - 130 130
Total assets 77,394 440,246 5,410 10,519 2,513 186,276 100,138 822,496
Liabilities
Deposits from
customers - 358,984 113,268 650 - - - 472,902
Balances due to
Other liabilities
balances - 170 1,950 3 - 3,024 148,845 153,992
Total liabilities - 363,760 115,218 653 - 3,024 148,845 631,500
Net maturity
mismatch 77,394 76,486 (109,808) 9,866 2,513 183,252 (48,707) 190,996
339

31 DECEMBER 2022
(t) Liquidity risk (cont’d.)
Analysis of assets and liabilities by remaining contractual maturities (cont’d.)
Non
Group and Bank demand month months months months year maturity Total
Assets
Cash and bank
balances 35,712 389,000 - - - - - 424,712
Financial assets at
FVTPL - - - - - - 100,000 100,000
at FVOCI - 149,844 - 25,152 - 67,525 - 242,521
at AC - - 1,500 - - 66,544 - 68,044
Financing and
advances 48,809 13,471 2,860 - - 38,351 - 103,491
Balances due from
Other assets - 2,177 551 511 - - 7 3,246
Others - - - - - - 21 21
Total assets 84,521 556,616 4,911 25,663 - 172,420 100,028 944,159
Liabilities
Deposits from
customers - 384,043 66,586 4,508 - 100,000 - 555,137
Balances due to
Other liabilities
balances - 287 74 - - 5,387 191,816 197,564
Total liabilities - 391,823 66,660 4,508 - 105,387 191,816 760,194
Net maturity
mismatch 84,521 164,793 (61,749) 21,155 - 67,033 (91,788) 183,965
340
Annual Report 2022

31 DECEMBER 2022
53. DIRECTORS OF SUBSIDIARIES OF THE GROUP
The following is the list of Directors who served on the Boards of the subsidiaries of the Group since the beginning of the
financial year to the date of the Directors’ report:
No Name of subsidiaries Name of Directors
1 Kenanga Futures Sdn Bhd Luigi Fortunato Ghirardello

Emmanuel, Dominique, Martial, Georges, Faure
Sree Kumar A/L C K Nayar
Azila Binti Abdul Aziz
Vaithiyanathan A/L Madavan
Lem Siow Hui (appointed on 15 September 2022)
2 Kenanga Nominees (Asing) Sdn Bhd Lee Kok Khee

Ng Yoke Mun
Nuryasmin Lee Binti Abdullah
Cheong Boon Kak
Ruslan Bin Md Nor
3 Kenanga Nominees (Tempatan) Sdn Bhd Lee Kok Khee

Ng Yoke Mun
Nuryasmin Lee Binti Abdullah
Cheong Boon Kak
Ruslan Bin Md Nor
4 Kenanga Private Equity Sdn Bhd Datuk Chay Wai Leong

Cheong Boon Kak
Megat Mizan Nicholas Denney (resigned on 2 November 2022)
5 ECML Berhad Lee Kok Khee

6 Kenanga Digital Sdn Bhd (fka ECML Lee Kok Khee

Nominees (Tempatan) Sdn Bhd) Cheong Boon Kak (appointed on 1 January 2023)
Ian Wyatt Lloyd (appointed on 1 January 2023)
Ng Yoke Mun (resigned on 1 January 2023)
Tan Tong Nam (resigned on 31 March 2022)
Chan Tuck Kiong (resigned on 1 January 2023)
Nuryasmin Lee Binti Abdullah (resigned on 1 January 2023)
Vaithiyanathan A/L Madavan (resigned on 1 January 2023)
341

31 DECEMBER 2022
53. DIRECTORS OF SUBSIDIARIES OF THE GROUP (CONT’D.)
7 Avenue Kestrel Sdn Bhd Lee Kok Khee

8 K & N Kenanga Holdings Berhad Datuk Chay Wai Leong

Datuk Roslan Bin Hj Tik
Cheong Boon Kak
9 SSSB Management Lem Siow Hui

Services Sdn Bhd Vaithiyanathan A/L Madavan (appointed on 1 November 2022)
10 Kenanga Management Vaithiyanathan A/L Madavan

& Services Sdn Bhd Lem Siow Hui (appointed on 1 November 2022)
11 Kenanga Investors Berhad Norazian Binti Ahmad Tajuddin

Imran Devindran Bin Abdullah
Datuk Wira Ismitz Matthew De Alwis
Luk Wai Hong, William
Syed Zafilen Bin Syed Alwee (retired on 1 January 2022)
12 Kenanga Islamic Investors Berhad YM Tan Sri Dato’ Paduka Tengku Noor Zakiah Binti Tengku Ismail
Megat Mizan Nicholas Denney (alternate to YM Tan Sri Dato’ Paduka
Tengku Noor Zakiah Binti Tengku Ismail)
Zulkifli Bin Ishak
Norazian Binti Ahmad Tajuddin (appointed on 9 February 2022)
Dato’ Zuraidah Binti Atan (retired on 1 January 2022)
13 KUT Nominees (Tempatan) Sdn Bhd Lee Kok Khee

14 KUT Nominees (Asing) Sdn Bhd Lee Kok Khee

342
Annual Report 2022

31 DECEMBER 2022
53. DIRECTORS OF SUBSIDIARIES OF THE GROUP (CONT’D.)
15 Kenanga Funds Berhad Cheong Boon Kak

Tan Ping Ying (appointed on 8 November 2022)
16 Kenanga Capital Sdn Bhd Datuk Roslan Bin Hj Tik

Lee Kok Khee
Dato’ Azlan Bin Abu Rais @ A Rais Al Noah (retired on 13 July 2022)
17 Kenanga Capital Islamic Sdn Bhd Cheong Boon Kak

Ang Xing Xian
Edwin Tan Sze Chied (appointed on 1 March 2023)
Datuk Roslan Bin Hj Tik (appointed on 2 November 2022 and resigned
on 1 March 2023)
18 I-VCAP Management Sdn Bhd Luk Wai Hong, William

Imran Devindran Bin Abdullah
Syed Umar Bin Abdul Rahman Alhadad
Norazian Binti Ahmad Tajuddin (Appointed on 1 November 2022)
Syed Zafilen Bin Syed Alwee (retired on 1 January 2022)
343

31 DECEMBER 2022
54. EQUITY COMPENSATION BENEFITS
Kenanga’s Group Employees’ Share Scheme (“ESS”)
The Bank has established and implemented an ESS for the employees of the Bank and its non-dormant subsidiary
companies. The ESS consists of two types of awards in the form of ESOS and ESGP.
(1) ESOS
Under the ESOS award, the ESS Committee may, within the period of the Scheme and at its discretion, offer to the
eligible employees a certain number of ESOS options to subscribe for the Bank’s shares at the exercise prices subject
to the applicable terms and conditions of the by-laws.
Subject to acceptance, the participants will be vested the options which can then be exercised within a period of three
years, provided that all the vesting conditions are fulfilled.
Key features of the ESOS awards since the beginning of the scheme until the end of the current financial year are as follow:
First offer
Offer date Vesting date Number of options (‘000) Exercise price (RM)
2.1.2018 1.3.2018 2,218 0.575

2.1.2018 2.5.2019 13,320 0.575
2.1.2018 1.7.2020 12,231 0.575
2.1.2018 1.12.2020 224 0.575
2.1.2018 2.8.2021 16,560 0.575
2.1.2018 28.10.2021 300 0.575
Second offer
31.5.2018 2.5.2019 3,000 0.630

31.5.2018 1.7.2020 3,000 0.630
31.5.2018 2.8.2021 4,000 0.630
Third offer
2.5.2019 1.6.2019 386 0.605

2.5.2019 1.7.2020 1,404 0.605
2.5.2019 2.8.2021 1,325 0.605
2.5.2019 1.9.2022 1,272 0.605
Fourth offer
17.6.2019 1.7.2020 225 0.595

17.6.2019 2.8.2021 225 0.595
The remaining options were forfeited due to resignation.
344
Annual Report 2022

31 DECEMBER 2022
54. EQUITY COMPENSATION BENEFITS (CONT’D.)
Kenanga’s Group Employees’ Share Scheme (“ESS”) (cont’d.)
(1) ESOS (cont’d.)
Fifth offer
1.7.2020 1.8.2020 356 0.580

1.7.2020 2.8.2021 792 0.580
1.7.2020 1.9.2021 17 0.580
1.7.2020 1.9.2022 623 0.580
Sixth offer
2.8.2021 1.9.2021 308 1.370

2.8.2021 1.9.2022 818 1.370
Details of share options granted under ESOS:
Number of Number of
Vesting options Exercise exercisable
Offer date date (‘000) price options (‘000) Exercise period
02.01.2018 01.03.2018 2,218,000 0.575 - 01.03.2018-28.02.2021

02.01.2018 02.05.2019 14,161,500 0.575 - 02.05.2019-01.05.2022
02.01.2018 01.07.2020 14,161,500 0.575 68,500 01.07.2020-30.06.2023
02.01.2018 01.12.2020 224,000 0.575 - 01.12.2020-31.05.2021
02.01.2018 02.08.2021 18,358,000 0.575 3,535,000 02.08.2021-01.08.2024
02.01.2018 28.10.2021 300,000 0.575 - 02.08.2021-01.08.2024
31.05.2018 02.05.2019 3,000,000 0.630 - 02.05.2019-01.05.2022
31.05.2018 01.07.2020 3,000,000 0.630 3,000,000 01.07.2020-30.06.2023
31.05.2018 02.08.2021 4,000,000 0.630 4,000,000 02.08.2021-01.08.2024
02.05.2019 01.06.2019 386,000 0.605 - 01.06.2019-31.05.2022
02.05.2019 01.07.2020 1,588,500 0.605 - 01.07.2020-30.06.2023
02.05.2019 02.08.2021 1,588,500 0.605 94,500 02.08.2021-01.08.2024
02.05.2019 01.09.2022 2,118,000 0.605 1,164,000 01.09.2022-31.08.2025
17.06.2019 01.07.2020 225,000 0.595 - 01.07.2020-30.06.2023
17.06.2019 02.08.2021 225,000 0.595 - 02.08.2021-01.08.2024
17.06.2019 N/A * 300,000 0.595 - N/A
345

31 DECEMBER 2022
Details of share options granted under ESOS: (cont’d.)
Number of Number of
Vesting options Exercise exercisable
Offer date date (‘000) price options (‘000) Exercise period
01.07.2020 01.08.2020 356,000 0.580 66,000 01.08.2020-31.07.2023

01.07.2020 02.08.2021 870,000 0.580 236,500 02.08.2021-01.08.2024
01.07.2020 01.09.2021 16,500 0.580 - 01.09.2021-31.08.2024
01.07.2020 01.09.2022 886,500 0.580 573,000 01.09.2022-31.08.2025
01.07.2020 N/A* 1,182,000 0.580 N/A N/A
02.08.2021 01.09.2021 308,000 1.370 234,000 01.09.2021-31.08.2024
02.08.2021 01.09.2022 1,281,000 1.370 777,000 01.09.2022-31.08.2025
02.08.2021 N/A* 1,281,000 1.370 N/A N/A
02.08.2021 N/A* 1,708,000 1.370 N/A N/A
* Unvested.
The following table illustrates the number and weighted average exercise price (“WAEP”) of, and movement in, share
options during the financial year:
ESOS First Offer
2022
Opening Movement during the financial year Outstanding
As at Forfeited / As at
Offer date 1.1.2022 Granted Exercised Cancelled 31.12.2022
02.01.2018 15,053,500 - 11,386,500 63,500 3,603,500

WAEP (RM) 0.575 - 0.575 0.575 0.575
2021
02.01.2018 35,913,000 450,000 20,852,500 457,000 15,053,500

WAEP (RM) 0.575 0.575 0.575 0.575 0.575
346
Annual Report 2022

31 DECEMBER 2022
ESOS Second Offer
2022
31.05.2018 7,000,000 - - - 7,000,000

WAEP (RM) 0.630 - - - 0.630
2021
31.5.2018 10,000,000 - 3,000,000 - 7,000,000

WAEP (RM) 0.630 - 0.630 - 0.630
ESOS Third Offer
2022
02.05.2019 2,298,000 - 853,500 186,000 1,258,500

WAEP (RM) 0.605 - 0.605 0.605 0.605
2021
02.05.2019 4,285,500 - 1,342,000 645,500 2,298,000

WAEP (RM) 0.605 - 0.605 0.605 0.605
347

31 DECEMBER 2022
ESOS Fourth Offer
2022
17.06.2019 - - - - -
WAEP (RM) - - - - -
2021
17.06.2019 525,000 - 225,000 300,000 -

WAEP (RM) 0.595 - 0.595 0.595 -
ESOS Fifth Offer
2022
01.07.2020 2,579,500 - 429,500 304,500 1,845,500

WAEP (RM) 0.580 - 0.580 0.580 0.580
2021
01.07.2020 3,044,000 - 255,500 209,000 2,579,500

WAEP (RM) 0.580 - 0.580 0.580 0.580
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31 DECEMBER 2022
ESOS Sixth Offer
2022
02.08.2021 3,718,000 - 4,000 711,500 3,002,500

WAEP (RM) 1.370 - 1.370 1.370 1.370
2021
02.08.2021 - 4,578,000 - 860,000 3,718,000

WAEP (RM) N/A 1.370 - 1.370 1.370
The fair values of share options granted were estimated using the Binomial Option Pricing Model, taking into account
the terms and conditions upon which the options are granted. The fair values of share options and the key inputs for
share options valuation are as follows:
ESOS First Offer

Tranches of vesting:
First Second Third Fourth
tranche tranche tranche tranche
Fair value of share options (RM) 0.0856 0.0963 0.1047 0.1111

Share price at offer date (RM) 0.550 0.550 0.550 0.550
Exercise price (RM) 0.575 0.575 0.575 0.575
Expected volatility (%) 26.92% 26.92% 26.92% 26.92%
Risk free rate (%) 3.688% 3.688% 3.688% 3.688%
Expected dividend yield (%) 4.00% 4.00% 4.00% 4.00%
The exercise period is 3 years from vesting date.
349

31 DECEMBER 2022
ESOS Second Offer

First Second Third
tranche tranche tranche
Fair value of share options (RM) 0.1030 0.1140 0.1220

Share price at offer date (RM) 0.595 0.595 0.595
Exercise price (RM) 0.630 0.630 0.630
Expected volatility (%) 28.07% 28.07% 28.07%
Risk free rate (%) 3.883% 3.883% 3.883%
Expected dividend yield (%) 4.00% 4.00% 4.00%
ESOS Third Offer


Risk free rate (%) 3.610% 3.610% 3.610% 3.610%
ESOS Fourth Offer

First Second Third
tranche tranche tranche
Fair value of share options (RM) 0.1188 0.1338 0.1467

Share price at offer date (RM) 0.570 0.570 0.570
Exercise price (RM) 0.595 0.595 0.595
Expected volatility (%) 27.90% 27.90% 27.90%
Risk free rate (%) 3.460% 3.460% 3.460%
Expected dividend yield (%) 1.80% 1.80% 1.80%
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31 DECEMBER 2022
ESOS Fifth Offer


Risk free rate (%) 2.480% 2.480% 2.480% 2.480%
ESOS Sixth Offer


Risk free rate (%) 2.500% 2.500% 2.500% 2.500%
(2) ESGP
Under the ESGP award, the ESS Committee may, within the period of the Scheme and at its discretion, grant to the
eligible employees an ESGP awards, in the form of Restricted Share Plan (“RSP”) and/or Performance Share Plan
(“PSP”).
Subject to acceptance, the awards will be vested to the grantees at no consideration, provided all the vesting conditions
as determined by the ESS Committee are fulfilled, in accordance with the terms of the by-laws and taking into account
the objectives of the RSP and the PSP as stipulated.
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31 DECEMBER 2022
(2) ESGP (cont’d.)
Key features of the RSP and PSP awards are as follow:
(a) RSP
The RSP is a restricted share incentive plan, in recognition of the loyalty and individual contributions of the
eligible employees towards the development, growth and success of the Group.
The vesting conditions are stipulated and determined by the ESS Committee, which may include, amongst others,
the achievement of individual performance as measured by both qualitative and quantitative key performance
indicators (“KPIs”), during such period as stipulated in the ESGP award.
(b) PSP
The PSP is a performance share plan in recognition of the contribution of the eligible employees as drivers of the
growth and performance of the Group.
The PSP is intended to promote the alignment in the strategic achievements of the Group with that of the eligible
employees to drive the creation of shareholders’ value and the growth of long term financial performance of the
Group.
The vesting conditions are stipulated and determined by the ESS Committee, which may include, amongst
others, the achievement of relevant service objectives and specific performance targets as measured by both
qualitative and quantitative KPIs, during such period as stipulated in the ESGP award.
On 2 January 2018, 3,612,735 units of share grant were allocated under PSP and on 3 May 2021, 3,610,000 units
of shares were awarded to eligible Senior Management of the Group and of the Bank.
Details of share options awarded under PSP:
Award date Number of PSP share awarded Vesting date
03.05.2021 3,610,000 02.06.2021
PSP Grantee is restricted from selling or transferring the shares issued to him or her for a period of one year from
the award date.
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Annual Report 2022

31 DECEMBER 2022
55. SIGNIFICANT AND SUBSEQUENT EVENTS
(a) There was no significant event during the financial year ended 31 December 2022 other than the following:
Changes in composition of the Group
(i) On 12 May 2022, K & N Kenanga Holdings Berhad (“KNKH”), a wholly-owned subsidiary of the Bank, entered
into a Share Purchase Agreement with Hung An Dien Co. Ltd. (“HADCL), a company organised and existing
under the laws of Vietnam, to dispose 6,615,000 shares in Kenanga Vietnam Securities Joint Stock Corporation
(“KVS”), representing 49% of the entire issued and outstanding capital of KVS to HADCL. Consequential to the
disposal, KVS ceased to be an associate company of KNKH.
(ii) On 26 October 2021, KIBB entered into a conditional Joint Venture Agreement with Rakuten Securities, Inc. and
KSPL to jointly collaborate in providing online brokerage services through KSPL in Singapore.
KSPL has changed its name to Rakuten Trade Singapore Pte. Ltd. (“RTSPL”) effective from 26 January 2022 and
RTSPL became a joint venture entity arising from the change of the Bank’s shareholding in RTSPL from 100% to
50% while Rakuten Securities, Inc.’s shareholding is 50%.
(b) There was no significant event subsequent to the financial year ended 31 December 2022 other than the following:
Changes in composition of the Group
Pursuant to the call and put option agreement between Kenanga Capital Sdn Bhd (“KCSB”) and Bay Amarantite Sdn
Bhd (“BASB”) dated 30 June 2020, BASB had on 17 February 2023 exercised its call option to purchase additional
31% of Kenanga Capital Islamic Sdn Bhd’s (“KCISB”) ordinary shares. Upon completion of the option exercise, KCSB’s
shareholdings in KCISB will be reduced to 20% and KCISB will cease to be a subsidiary of KCSB.
353
ANALYSIS OF SHAREHOLDINGS
AS AT 31 MARCH 2023
SHARE CAPITAL
Total Number of Issued Shares : 735,762,599 Ordinary Shares (Including 9,308,300 Treasury Shares)
Class of Shares : Ordinary Shares
Voting Rights : One (1) Vote per Ordinary Share
No. of % of No. of % of
Size of Holding Shareholders Shareholders Shares Held Shareholdings
Less than 100 7,009 29.16 180,640 0.02

100 to 1,000 5,251 21.85 2,431,738 0.34
1,001 to 10,000 9,513 39.58 32,981,227 4.54
10,001 to 100,000 1,945 8.09 56,861,954 7.83
100,001 to Less Than 5% of Issued Shares 315 1.31 396,205,970 54.54
5% and Above of Issued Shares 2 0.01 237,792,770 32.73
TOTAL 24,035 100.00 726,454,299 (1)
100.00
(1) Excluding 9,308,300 Treasury Shares retained by the Company as at 31 March 2023.
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Annual Report 2022
LIST OF THIRTY (30)

LARGEST SHAREHOLDERS
No. Name Shareholdings %
1 CMS Capital Sdn Bhd 136,823,000 18.83

2 Tan Sri Dato’ Paduka Tengku Noor Zakiah Tengku Ismail 100,969,770 13.90
3 HSBC Nominees (Asing) Sdn Bhd 34,514,799 4.75
Exempt AN for Tokai Tokyo Securities Co., Ltd.
4 Chua Sim Neo @ Diana Chua 34,080,300 4.69
5 Abdul Aziz Bin Hashim 29,753,712 4.10
6 Aiza Binti Abdul Aziz 24,798,856 3.41
7 Infotech Mark Sdn Bhd 22,106,340 3.04
8 Kenanga Nominees (Tempatan) Sdn Bhd 12,673,900 1.74
Rakuten Trade Sdn Bhd for Pui Cheng Wui
9 Lim Kuan Gin 12,350,816 1.70
10 Cartaban Nominees (Tempatan) Sdn Bhd 9,903,600 1.36
PAMB for Prulink Equity Fund
Exempt AN for Bank Julius Baer & Co. Ltd.
12 Koon Poh Keong 9,195,000 1.27
13 DB (Malaysia) Nominee (Tempatan) Sendirian Berhad 6,888,200 0.95
Deutsche Trustees Malaysia Berhad for Eastspring Investmentssmall-Cap Fund
14 Affin Hwang Nominees (Tempatan) Sdn Bhd 6,800,000 0.94
Southern Corporation (Nibong Tebal) Sdn Bhd for Tan Lee Sim
15 Citigroup Nominees (Tempatan) Sdn Bhd 6,401,000 0.88
Employees Provident Fund Board
16 Song Kim Lee 6,300,000 0.87
17 Datuk Chay Wai Leong 5,820,000 0.80
18 Hwang Enterprises Sdn Bhd 5,550,000 0.76
Exempt AN for The Hongkong And Shanghai Banking Corporation Limited
20 HSBC Nominees (Tempatan) Sdn Bhd 4,320,200 0.59
HSBC (M) Trustee Bhd for Manulife Investment Progress Fund
PAMB for Prulink Equity Income Fund
22 Vibrant Model Sdn Bhd 4,000,000 0.55
23 RHB Trustees Berhad 3,627,000 0.50
Exempt AN for Kenanga Investment Bank Berhad
PAMB for Participating Fund
25 CIMB Group Nominees (Tempatan) Sdn Bhd 3,400,000 0.47
CIMB Bank Berhad
26 Pui Cheng Wui 3,274,600 0.45
27 Lim Gaik Bway @ Lim Chiew Ah 2,660,400 0.37
28 CIMSEC Nominees (Asing) Sdn Bhd 2,400,099 0.33
CIMB for Ng Koh Lip
29 Pui Boon Keng 2,147,000 0.30
Societe Generale Paris
TOTAL 515,196,017 70.91
355
SUBSTANTIAL SHAREHOLDERS’, DIRECTORS’ & GROUP

MANAGING DIRECTOR’S INTERESTS IN SECURITIES
Substantial Shareholders’ Interest in Shares
No. of Ordinary Shares

Direct Percentage Indirect Percentage
Name of Substantial Shareholders Interest (%) Interest (%)
Cahya Mata Capital Sdn Bhd (formerly known as CMS

Capital Sdn Bhd) 136,823,000 18.83 - -
Cahya Mata Sarawak Berhad - - 136,823,000 (1)
18.83
Tan Sri Dato’ Paduka Tengku Noor Zakiah Tengku Ismail 100,969,770 13.90 198,100 (2)
0.03
(1) Deemed interest pursuant to Section 8(4) of the Companies Act 2016 by virtue of shares held by Cahya Mata Capital Sdn Bhd (formerly known as CMS Capital
Sdn Bhd).
(2) Deemed interest by virtue of shares held by person connected.
DIRECTORS’ SHAREHOLDINGS
No. of Ordinary Shares

Direct Percentage Indirect Percentage
Name of Directors Interest (%) Interest (%)
Jeremy Nasrulhaq 187,900 0.03 - -

Norazian Ahmad Tajuddin 10,000 * - -
Kanagaraj Lorenz 388,000 0.05 - -
* Negligible
GROUP MANAGING DIRECTOR’S INTEREST IN SECURITIES(1)
No. of Ordinary Shares No. of Options

Held under the
Direct Percentage Indirect Percentage Employees’ Share
Name of Directors Interest (%) Interest (%) Option Scheme
Datuk Chay Wai Leong(2) 5,820,000 0.80 - - 7,000,000
(1) Securities cover shares and options

(2) Datuk Chay Wai Leong is not a Director of the Company
356
Annual Report 2022
NOTICE OF FORTY-NINTH (49TH)

NOTICE IS HEREBY GIVEN THAT the Forty-Ninth (49th) Annual General Meeting (“49th AGM”) of Kenanga Investment Bank
Berhad (“the Company” or “KIBB”) will be held fully virtual at Level 19, Kenanga Tower, 237, Jalan Tun Razak, 50400 Kuala
Lumpur, Wilayah Persekutuan, Malaysia (“Broadcast Venue”) on Thursday, 25 May 2023 at 11.00 a.m. through live streaming
and online remote voting via the Remote Participation and Electronic Voting Facilities (“RPEV Facilities”) which are available
at Boardroom Share Registrars Sdn Bhd (“Boardroom”)’s online platform at https://meeting.boardroomlimited.my (Domain
Registration No. with MYNIC – D6A357657) to transact the following businesses:
AS ORDINARY BUSINESS
1. To receive the Audited Financial Statements for the Financial Year Ended 31 December 2022
together with the Reports of the Directors and Auditors thereon.
2. To elect Madam Chin Siew Siew who retires in accordance with Clause 84 of the Company’s Ordinary Resolution 1
Constitution and who, being eligible, offers herself for election.
3. To re-elect the following Directors who retire by rotation in accordance with Clause 78 of the
Company’s Constitution and who, being eligible, offer themselves for re-election:
3.1 Encik Jeremy Nasrulhaq; Ordinary Resolution 2

3.2 Puan Norazian Ahmad Tajuddin; and Ordinary Resolution 3
3.3 Mr. Kanagaraj Lorenz. Ordinary Resolution 4
4. To approve the payment of the Non-Executive Directors’ fees totalling RM3,009,917.82 in Ordinary Resolution 5
respect of the Financial Year Ended 31 December 2022.
5. To approve the payment of benefits payable to Non-Executive Directors of up to an amount Ordinary Resolution 6
of RM1,300,000.00 from 26 May 2023 until the next AGM of the Company.
6. To re-appoint Ernst & Young PLT as Auditors of the Company for the Financial Year Ending Ordinary Resolution 7
31 December 2023 and to authorise the Board of Directors to determine their remuneration.
AS SPECIAL BUSINESS
7. Authority to Directors to Issue Shares Ordinary Resolution 8
To consider, and if thought fit, to pass the following Ordinary Resolution:
“THAT subject always to the Companies Act 2016, the Company’s Constitution and approvals
of the relevant governmental/ regulatory authorities, the Board of Directors be and is hereby
authorised pursuant to Section 75 and Section 76 of the Companies Act 2016, to issue
shares in the Company at any time to such persons and upon such terms and conditions
and for such purposes as the Board of Directors may, in its absolute discretion, deem fit,
provided that the aggregate number of shares to be issued does not exceed ten percent
(10%) of the total number of issued shares of the Company for the time being and the Board
of Directors be and is also empowered to obtain the approval from Bursa Malaysia Securities
Berhad for the listing of and quotation for the additional shares so issued AND THAT such
authority shall commence immediately upon the passing of this Resolution and continue to
be in force until the conclusion of the next Annual General Meeting of the Company.”
357

8. Proposed Renewal of Share Buy-Back Authority Ordinary Resolution 9
To consider, and if thought fit, to pass the following Ordinary Resolution:
“THAT subject to the provisions of the Companies Act 2016, the Company’s Constitution,
Bursa Malaysia Securities Berhad’s Main Market Listing Requirements and the approvals
of all relevant governmental and/ or regulatory authorities, the Company be and is hereby
authorised to purchase such number of ordinary shares of the Company (“Proposed
Renewal of Share Buy-Back Authority”) as may be determined by the Board of Directors
of the Company from time to time through Bursa Malaysia Securities Berhad, upon such
terms and conditions as the Board of Directors may deem fit in the interest of the Company,
provided that -
a. the aggregate number of shares to be purchased pursuant to this Resolution does

not exceed ten percent (10%) of the total number of issued shares for the time being
of the Company and in compliance with the public shareholding spread requirements
as stipulated in Paragraph 8.02(1) of Bursa Malaysia Securities Berhad’s Main Market
Listing Requirements or other requirements as may be determined by Bursa Malaysia
Securities Berhad from time to time;
b. the maximum funds to be allocated by the Company for the Proposed Renewal of
Share Buy-Back Authority shall not exceed the Company’s latest audited retained
profits of RM597,057,532.16 as at 31 December 2022;
c. the authority conferred by this Resolution shall commence immediately upon the
passing of this Ordinary Resolution and shall continue to be in force until:
i. the conclusion of the next AGM of the Company at which time it will lapse,
unless by Ordinary Resolution passed at the AGM, the authority is renewed either
unconditionally or subject to conditions; or
ii. the expiration of the period within which the next AGM after that date is required
by law to be held; or
iii. revoked or varied by Ordinary Resolution passed by the Shareholders of the
Company in a general meeting,
whichever occurs first; but not so as to prejudice the completion of the purchase of
its own shares by the Company before the aforesaid expiry date and, in any event, in
accordance with the provisions of Bursa Malaysia Securities Berhad’s Main Market
Listing Requirements or any other relevant authorities;
d. upon the purchase by the Company of its own shares, the Board of Directors be and is
hereby authorised to -
i. cancel the shares so purchased;

ii. retain part of the shares so purchased as Treasury Shares and cancel the
remainder;
iii. retain the shares so purchased as Treasury Shares;
iv. distribute the Treasury Shares as share dividends to Shareholders;
v. resell the Treasury Shares or any of the said shares in accordance with Bursa
Malaysia Securities Berhad’s Main Market Listing Requirements;
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Annual Report 2022

vi. transfer the Treasury Shares, or any of the said shares for the purposes of or
under an employees’ share scheme;
vii. transfer the Treasury Shares, or any of the said shares as purchase consideration;
viii. cancel the Treasury Shares or any of the said shares; or
ix. sell, transfer or otherwise use the Treasury Shares for such other purposes as the
Minister of Domestic Trade and Consumer Affairs may by order prescribe;
AND THAT the Board of Directors of the Company be and is hereby authorised to take
all steps as are necessary or expedient to implement or to effect the Proposed Renewal
of Share Buy-Back Authority with full power to assent to any condition, modification,
variation and/ or amendment as may be imposed by the relevant authorities and to
take all such steps as may deem necessary or expedient in order to implement, finalise
and give full effect in relation thereto.”
9. To transact any other business of the Company for which due notice shall have been received
in accordance with the Companies Act 2016.
BY ORDER OF THE BOARD
NORLIZA ABD SAMAD

CCM PC No.: 201908002139
MAICSA 7011089
Group Company Secretary
Kuala Lumpur
26 April 2023
Notes:
1. Registration for RPEV Facilities
1.1 The Company’s fully virtual 49th AGM will be conducted online, without a physical meeting venue. Members can attend, participate and
vote in the meeting remotely or online via Boardroom’s online platform at https://meeting.boardroomlimited.my (Domain Registration
No. with MYNIC – D6A357657) by using the RPEV Facilities. The only venue involved is the Broadcast Venue where only the essential
individuals are physically present to organise the fully virtual 49th AGM.
1.2 Registration for RPEV is opened from the date of the Notice of the 49th AGM on Wednesday, 26 April 2023 until such time before the
voting session ends at the 49th AGM on Thursday, 25 May 2023.
1.3 Member(s), proxy(ies), corporate representative(s) or attorney(s) are required to register as a user with Boardroom’s Online website
first and then pre-register their attendance for the 49th AGM for verification of their eligibility to attend the 49th AGM using the RPEV
Facilities based on the General Meeting Record of Depositors as at 18 May 2023.
2. Proxy
2.1 For the purpose of determining a member who shall be entitled to attend this 49th AGM, the Company shall be requesting Bursa
Malaysia Depository Sdn Bhd, in accordance with Clause 60 of the Company’s Constitution and Section 34(1) of the Securities
Industry (Central Depositories) Act 1991, to issue a General Meeting Record of Depositors as at 18 May 2023. Only a member whose
name appears in the Record of Depositors as at 18 May 2023 shall be entitled to attend, speak and vote at the said meeting or appoint
proxies to attend and/ or vote on his/ her behalf.
359

2.2 A member of the Company entitled to attend, participate, speak and vote at this AGM is entitled to appoint up to two (2) proxies
to attend, participate, speak and vote in his/ her place. There shall be no restriction as to the qualification of the proxy. Since the
49th AGM will be conducted via a virtual meeting, a member who is unable to attend and vote at the Meeting may appoint the Chairman
of the Meeting as his/ her proxy and indicate the voting instruction in the Proxy Form. For Corporate Shareholder, Authorised Nominee
and Exempt Authorised Nominee, other than the Chairman of the Meeting, you may appoint a Proxy who is not the Chairman of the
Meeting.
2.3 A member who is an Authorised Nominee as defined under the Securities Industry (Central Depositories) Act 1991 may appoint not
more than two (2) proxies in respect of each securities account it holds with ordinary shares of the Company standing to the credit of
the said securities account.
2.4 Where a member is an Exempt Authorised Nominee as defined under the Securities Industry (Central Depositories) Act 1991 which
holds ordinary shares in the Company for multiple beneficial owners in one (1) securities account (“Omnibus Account”), there is no
limit to the number of proxies which the Exempt Authorised Nominee may appoint in respect of each Omnibus Account it holds.
2.5 Where a member appoints more than one (1) proxy, the appointments shall be invalid unless he specifies the proportion of his/ her
shareholdings to be represented by each proxy.
2.6 The instrument appointing a proxy shall be in writing under the hand of the appointor or of his/ her attorney duly authorised in
writing, or if the appointor is a corporation, either under its common seal or under the hand of an officer or attorney duly authorised.
Any alteration to the instrument appointing a proxy must be initialled.
2.7 Duly completed Proxy Form must be deposited at the office of the Company’s share registrar, Boardroom at 11th Floor, Menara
Symphony, No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, Selangor Darul Ehsan, Malaysia, not later than
Wednesday, 24 May 2023 at 11.00 a.m. Alternatively, you may choose to submit the proxy appointment electronically via Boardroom’s
Smart Investor Portal Online website at https://investor.boardroomlimited.com before the Proxy Form submission cut-off time as
mentioned above. For further information on the electronic submission of Proxy Form, kindly refer to the procedures provided in the
Administrative Guide.
2.8 Pursuant to Paragraph 8.29A(1) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, all resolutions set out
in the Notice of 49th AGM will be put to vote on a poll.
3. Audited Financial Statements for the Financial Year Ended 31 December 2022
The Audited Financial Statements are laid in accordance with Section 340(1)(a) of the Companies Act 2016 for discussion only under
Agenda 1. They do not require Shareholders’ approval and hence, will not be put for voting.
4. Ordinary Resolution 1 - Election of Director Who Retires in Accordance with Clause 84 of the Company’s Constitution
Clause 84 of the Constitution provides amongst others, that the Board of Directors shall have power at any time, and from time to time,
to appoint any person to be a Director, either to fill a casual vacancy or as an additional Director to the existing Board of Directors and any
Director so appointed shall hold office only until the next AGM and shall then be eligible for election.
Accordingly, Madam Chin Siew Siew who was appointed as an Independent Non-Executive Director of the Company on 1 June 2022,
shall hold office until the 49th AGM and shall then be eligible for election pursuant to Clause 84 of the Company’s Constitution.
The profile of Madam Chin Siew Siew can be found in the 2022 Annual Report of the Company.
5. Ordinary Resolutions 2 to 4 - Re-Elections of Directors Who Retire in Accordance with Clause 78 of the Company’s Constitution
Clause 78 of the Constitution provides that one-third (1/3) of the Directors of the Company for the time being shall retire by rotation at an
AGM of the Company. Pursuant thereto, three (3) Independent Non-Executive Directors of the Company, namely Encik Jeremy Nasrulhaq,
Puan Norazian Ahmad Tajuddin and Mr. Kanagaraj Lorenz, shall retire in accordance with Clause 78 of the Company’s Constitution.
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Annual Report 2022

For the purpose of determining the eligibility of the Directors to stand for re-election at the 49th AGM, the Board of Directors through its Group
Governance, Nomination & Compensation Committee (“GNC”) had assessed each of the retiring Directors, and considered the following:
a. The Director’s performance and contribution based on the outcome of the performance evaluation conducted on the Board of
Directors, Board Committees and Individual Directors;
b. The Director’s level of contribution to the Board of Directors’ deliberations through his/ her skills, experience and strength in qualities;
c. The level of independence demonstrated by the Director, and his/ her ability to act in the best interests of the Company in decision-
making; and
d. The Director’s fitness and proprietary in line with the fit and proper criteria as stated under Clause 6.1.5 of the Board Succession
Planning Framework for Kenanga Group.
Based on its assessment, the GNC had, at its meeting on 28 February 2023, recommended the election/ re-elections of the aforementioned
Directors to be put forth to the Shareholders for approval at the forthcoming AGM. The GNC’s recommendation was approved by the
Board of Directors at its meeting on 6 March 2023.
The profiles of Encik Jeremy Nasrulhaq, Puan Norazian Ahmad Tajuddin and Mr. Kanagaraj Lorenz can be found in the 2022 Annual Report
of the Company.
6. Directors’ Remuneration
Section 230(1) of the Companies Act 2016 provides amongst others, that “the fees” of the directors and “any benefits” payable to the
directors of a listed company and its subsidiaries shall be approved at a general meeting.
In this respect, the Board of Directors has agreed that the Shareholders’ approval shall be sought at the 49th AGM on the Directors’
remuneration in two (2) separate resolutions as follows:
a. Ordinary Resolution 5 on payment of Directors’ fees in respect of the Financial Year Ended 31 December 2022; and
b. Ordinary Resolution 6 on payment of Directors’ benefits from 26 May 2023 to the next AGM in 2024 (“Current Period”).
7. Directors’ Fees
The payment of the fees to the Non-Executive Chairman and Non-Executive Directors (“NEDs”) in respect of the Financial Year Ended
31 December 2022 will only be paid if the proposed Ordinary Resolution 5 is passed at the 49th AGM pursuant to Section 230(1)(b) of the
Companies Act 2016.
8. Benefits Payable to the NEDs
a. The benefits payable to the NEDs comprise the allowances and other emoluments payable to the Chairman and members of the
Board of Directors of the Company and its subsidiaries, as well as the Board Committees.
b. The current Directors’ remuneration framework of the Company is as set out below.

Description Chairman Board Members
Benefits (applicable to the Company Leave passage, driver, car, medical Medical benefits
only) benefits and other claimable benefits
Chairman NED/ Member

Type of Meeting (per meeting) (per meeting)
Board of Directors’ Meeting RM2,000 RM2,000

General Meeting RM2,000 RM2,000
Board Committee Meeting RM2,000 RM2,000
361

c. Payment of the benefits to the NEDs of the Company and its subsidiaries is made on a monthly basis and/ or as and when incurred
if the proposed Ordinary Resolution 6 is passed at the 49th AGM. The Board of Directors is of the view that it is just and equitable
for the NEDs to be paid the Directors’ Remuneration (excluding Directors’ fees) on a monthly basis and/ or as and when incurred,
particularly after discharging their responsibilities and rendering their services to the Company and its subsidiaries throughout the
Current Period.
9. Ordinary Resolution 7 - Re-Appointment of Auditors
The Audit Committee of the Company (“AC”), at its meeting held on 30 January 2023, had undertaken an annual assessment of the
performance and independence of the External Auditors, Ernst & Young PLT in accordance with Section 67(1) of the Financial Services Act
2013 and Section 76(1) of the Islamic Financial Services Act 2013.
Based on the assessment, the AC had recommended to the Board of Directors for approval, the re-appointment of Ernst & Young PLT as
the Company’s External Auditors, given that Ernst & Young PLT had fulfilled all the qualifications set out in Bank Negara Malaysia’s Policy
Document on External Auditor in terms of its performance, as well as independence.
The assessment conducted had taken into consideration the following factors:
a. Level of knowledge, capabilities, experience and quality of previous work;
b. Level of engagement with the AC/ Board of Directors;
c. Ability to provide constructive observations, implications and recommendations in areas which require improvements;
d. Appropriateness of audit approach and the effectiveness of audit planning;
e. Ability to perform the audit work within the agreed duration given;
f. Non-audit services rendered by the External Auditors to KIBB Group did not impede independence; and
g. Ability of the External Auditors to demonstrate unbiased stance when interpreting the standards/ policy adopted by the Company.
The Board of Directors had also noted that the AC when assessing the proposal on Ernst & Young PLT’s re-appointment, had also taken
into consideration the 2022 Transparency Report tabled by Ernst & Young PLT, outlining the audit firm’s legal and governance structures,
measures to uphold audit quality and manage risks, as well as measurements of audit quality indicators.
In terms of its independence, Ernst & Young PLT had confirmed that it was independent of KIBB Group and KIBB in accordance with the
By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants and the International Code of Ethics for
Professional Accountants (including International Independence Standards).
Based on the assessment, the Board of Directors had concurred with the AC’s recommendation and concluded that Ernst & Young PLT had
fulfilled all the qualification criteria set out in Bank Negara Malaysia’s Policy Document on External Auditor in terms of its performance and
independence and further recommended the same to the Shareholders for approval at the 49th AGM, subject to the approval from Bank
Negara Malaysia.
Subsequent to the above, Bank Negara Malaysia had on 6 April 2023 granted its approval for the re-appointment of Ernst & Young PLT as
KIBB Group’s External Auditors and Ms. Ng Sue Ean as the Engagement Partner and the appointment of Mr. Brandon Bruce Sta Maria as
the Concurring Partner for the Financial Year Ending 31 December 2023.
10. Special Business
10.1 Ordinary Resolution 8 - Authority to Directors to Issue Shares
The proposed Ordinary Resolution 8 is a renewal of the general mandate pursuant to Section 75 and Section 76 of the Companies
Act 2016 obtained from Shareholders of the Company at the previous AGM held on 26 May 2022 and, if passed, will give powers to
the Board of Directors to issue ordinary shares in the share capital of the Company up to an aggregate amount not exceeding ten
percent (10%) of the total number of issued shares of the Company for the time being. This general mandate, unless revoked or varied
at a general meeting, will expire at the next AGM.
362
Annual Report 2022

The general mandate from Shareholders is to provide the Company the flexibility to undertake any share issuance during the financial
year without having to convene a general meeting. The rationale for this proposed mandate is to allow for possible share issue
and/ or fund raising exercises including placement of shares for the purpose of funding current and/ or future investment project,
working capital and/ or acquisitions, as well as in the event of any strategic opportunities involving equity deals which may require the
Company to allot and issue new shares on urgent basis and thereby reducing the administrative time and costs associated with the
convening of additional Shareholders’ meeting(s). In any event, the exercise of the mandate is only to be undertaken if the Board of
Directors considers it to be in the best interest of the Company.
The general mandate obtained from the Shareholders of the Company at the previous AGM held on 26 May 2022 had not been utilised
and hence, no proceed was raised therefrom.
10.2 Ordinary Resolution 9 - Proposed Renewal of Share Buy-Back Authority
The proposed Ordinary Resolution 9, if passed, will empower the Board of Directors to allocate an amount not exceeding the
retained profits of the Company for the purpose of and to purchase such amount of ordinary shares in the Company from time to time
on the market of Bursa Malaysia Securities Berhad upon such terms and conditions as the Board of Directors may deem fit in the
interest of the Company provided that the aggregate number of shares purchased pursuant to this Resolution does not exceed ten
percent (10%) of the total number of issued shares of the Company for the time being.
The Shareholders’ mandate for the Proposed Renewal of Share Buy-Back Authority is subject to renewal on an annual basis.
Further information on the Proposed Renewal of Share Buy-Back Authority is set out in the Share Buy-Back Statement dated 26 April
2023 which is dispatched together with the Notice of 49th AGM.
11. Abstention from Voting
11.1 The NEDs referred to in Ordinary Resolutions 2, 3 and 4, namely Encik Jeremy Nasrulhaq, Puan Norazian Ahmad Tajuddin and
Mr. Kanagaraj Lorenz, who are Shareholders of the Company, will abstain from voting on the resolution in respect of their respective
re-elections at the 49th AGM.
11.2 The NEDs of the Company who are the Shareholders of the Company will abstain from voting on Ordinary Resolution 5 and Ordinary
Resolution 6 concerning the Directors’ fees and Directors’ benefits at the 49th AGM, respectively.
In this respect, Encik Jeremy Nasrulhaq, Puan Norazian Ahmad Tajuddin and Mr. Kanagaraj Lorenz, who are Shareholders of the
Company, will abstain from voting on Ordinary Resolution 5 and Ordinary Resolution 6.
12. Poll Voting
Pursuant to Paragraph 8.29A(1) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, all the resolutions set out in
this Notice will be put to vote by poll.
13. Publication of AGM Notice on the Company’s Website
Pursuant to Section 320 of the Companies Act 2016, the Notice of the Company’s 49th AGM is also available on the Company’s website at
https://www.kenanga.com.my/investor-relations/AGM2023 throughout the period beginning from the date of the Notice until the conclusion
of the 49th AGM.
363
STATEMENT ACCOMPANYING NOTICE OF FORTY-NINTH (49TH)

ANNUAL GENERAL MEETING (“49TH AGM”)
(PURSUANT TO PARAGRAPH 8.27(2) OF THE MAIN MARKET LISTING REQUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD)
1. Details of Individual Who is Standing for Election as Director (Excluding Directors Standing for Re-Election)
The profile of Madam Chin Siew Siew who is standing for election as Director at the 49th AGM of the Company as per
Agenda 2 of the Notice of 49th AGM can be found in the 2022 Annual Report of the Company.
2. Ordinary Resolution on Authority to Issue and Allot New Ordinary Shares in the Company
The proposed Ordinary Resolution 8 on the general mandate for issuance of shares is a renewal mandate. As at the date of
the Notice of the 49th AGM, no new shares were issued pursuant to the general mandate granted to the Directors at the last
AGM held on 26 May 2022.
Details on the authority to issue shares pursuant to Section 75 and Section 76 of the Companies Act 2016 are provided
under the Explanatory Notes on Special Business in this Notice.
364
Annual Report 2022
CORPORATE DIRECTORY
EQUITY BROKING BRANCHES
KUALA LUMPUR PENANG
Kenanga Investment Bank Berhad (“KIBB Main”) KIBB Penang – Menara Boustead
Kuala Lumpur 7th, 8th & 16th Floor,
Level 15, Kenanga Tower, Menara Boustead Penang,
237, Jalan Tun Razak, 39, Jalan Sultan Ahmad Shah,
50400 Kuala Lumpur, Wilayah Persekutuan 10050 Penang
T : +603-2172 2888 T : +604-228 3355
F : +603-2172 2999 F : +604-227 9634
KIBB Damansara Heights

1st Floor, West Wing, Bangunan ECM Libra, PERAK
8, Jalan Damansara Endah,
Damansara Heights, KIBB Ipoh
50490 Kuala Lumpur, Wilayah Persekutuan 63, Persiaran Greenhill,
T : +603-2089 2888 30450 Ipoh, Perak
F : +603-2089 2801 T : +605-242 2828
F : +605-242 2323
SELANGOR
MELAKA
KIBB Bandar Baru Klang
35, Ground Floor & 1st Floor, KIBB Bandar Melaka
Jalan Tiara 3, Bandar Baru Klang, 71 (A & B) and 73 (A & B), Jalan Merdeka,
41150 Klang, Selangor Taman Melaka Raya,
T : +603-3348 8080 75000 Melaka
F : +603-3348 8880 T : +606-288 1700
F : +606-288 1710
KIBB The Curve
Lot 240, 2nd Floor,
No. 6, Jalan PJU 7/3, NEGERI SEMBILAN
The Curve, Mutiara Damansara,
47800 Petaling Jaya, Selangor KIBB Seremban
T : +603-7725 9095 1C & 1D, Ground Floor & 1st Floor,
F : +603-7725 9079 Jalan Tuanku Munawir,
70000 Seremban, Negeri Sembilan
KIBB Subang Jaya T : +606-765 5998
Level 1, East Wing, Wisma Consplant 2, F : +606-765 5739
No. 7, Jalan SS16/1,
47500 Subang Jaya, Selangor
T : +603-5621 2118
F : +603-5621 1748
KIBB USJ
55C (2nd Floor), Jalan USJ 10/1F,
47610 UEP Subang Jaya, Selangor
T : +603-8081 8028
F : +603-8081 7863
365
CORPORATE DIRECTORY
EQUITY BROKING BRANCHES
JOHOR PAHANG
KIBB Johor Bahru – Menara Pelangi KIBB Kuantan

Level 2, Menara Pelangi, A15, A17 & A19, Ground Floor,
Jalan Kuning, Taman Pelangi, Jalan Tun Ismail 2, Sri Dagangan 2,
80400 Johor Bahru, Johor 25000 Kuantan, Pahang
T : +607-333 3600 T : +609-517 1698
F : +607-334 3770 F : +609-513 8996
KIBB Muar – Jalan Ali KIBB Triang Electronic Access Facility

57, 59 & 61, 1, Ground Floor,
Jalan Ali, Jalan Dagangan 6,
84000 Muar, Johor Pusat Dagangan Triang,
T : +606-953 1222 28300 Triang, Pahang
F : +606-951 6660 T : +609-250 1282
F : +609-250 1086
KIBB Skudai
117 (Ground Floor),
Jalan Sutera Tanjung 8/2, SARAWAK
Taman Sutera Utama,
81300 Skudai Johor KIBB Kuching
T : +607-562 5117 Level 2-4, Wisma Mahmud,
F : +607-562 5117 Jalan Sungai Sarawak,
93100 Kuching, Sarawak
KIBB Batu Pahat T : +6082-338 000
24, 24A & 24B, Jalan Penjaja 3, F : +6082-338 222
Kim Park Centre,
83000 Batu Pahat, Johor KIBB Sibu
T : +607-432 8188 11-12, Ground Floor & First Floor,
F : +607-432 3388 Lorong Kampung Datu 3,
96000 Sibu, Sarawak
KIBB Yong Peng T : +6084-313 855
234, Jalan Besar, F : +6084-329 735
Taman Semberong Baru,
83700 Yong Peng, Johor
T : +607-467 8885 SABAH
F : +607-467 8884
KIBB Kota Kinabalu
Level 8, Wisma Great Eastern,
68 Jalan Gaya,
88000 Kota Kinabalu, Sabah
T : +6088-236 188
F : +6088-235 700
366
Annual Report 2022
CORPORATE DIRECTORY
ASSET & WEALTH MANAGEMENT BRANCHES
Kenanga Investors Berhad (“KIB”) Kuala Lumpur KIB Kota Kinabalu

Level 13, Kenanga Tower, Level 8, Wisma Great Eastern,
237, Jalan Tun Razak, No.68, Jalan Gaya,
50400 Kuala Lumpur, Wilayah Persekutuan 88000 Kota Kinabalu, Sabah
T : 1 800 88 3737 (Toll Free) T : +088-203 063
T : +603-2172 3123 F : +088-203 062
F : +603-2172 3133
KIB Seremban
KIB Penang 2nd Floor, No. 1D-2,
5.04, 5th Floor, Menara Boustead Penang, Jalan Tuanku Munawir,
39, Jalan Sultan Ahmad Shah, 70000 Seremban, Negeri Sembilan
10050 Penang T : +606-761 5678
T : +604-210 6628 F : +606-761 2242
F : +604-210 6644
KIB Miri
KIB Ipoh 2nd Floor, Lot 1264,
No. 1, Jalan Leong Sin Nam Centre Point Commercial Centre,
30300 Ipoh, Perak Jalan Melayu,
98000 Miri, Sarawak
T : +605-254 7573 / 7570
T : +6085-416 866
F : +605-254 7606
F : +6085-322 340
KIB Melaka
KIB Kuantan
No. 43, Jalan KSB 11,
Ground Floor Shop,
Taman Kota Syahbandar,
No. B8, Jalan Tun Ismail 1,
75200 Melaka
25000 Kuantan, Pahang
T : +606-240 2310
T : +609-514 3688
F : +606-240 2287
F : +609-514 3838
KIB Klang
KIB Damansara Uptown
No.12 Jalan Batai Laut 3,
44B, Jalan SS21/35,
Taman Intan, Damansara Utama,
41300, Klang, Selangor 47400 Petaling Jaya,
T : +603-3341 8818 / +603 3348 7889 Selangor
F : +603-3341 8816 T : +603-7710 8828
F : +603-7710 8830
KIB Johor Bahru
No. 63, Jalan Molek 3/1, KIB Kota Damansara
Taman Molek, C26-1 Dataran Sunway,
81100 Johor Bahru, Johor Jalan PJU 5/17, Kota Damansara,
T : +607-288 1683 47810 Petaling Jaya, Selangor
F : +607-288 1693 T : +603-6150 3612
F : +603-6150 3906
KIB Kuching
1st Floor, No. 71, KIB KLUANG
Lot 10900, Jalan Tun Jugah, No. 1, Aras 1, Jalan Haji Manan,
93350 Kuching, Sarawak Pusat Perniagaan Komersial Haji Manan,
T : +6082-572 228 86000 Kluang, Johor
F : +6082-572 229 T : +607-710 2700
F : +607-710 2150
367
This page is intentionally left blank.
PROXY FORM
CDS Account No.: KENANGA INVESTMENT BANK BERHAD
Company Registration No. 197301002193 (15678-H)
(Incorporated in Malaysia)
I/ We NRIC No./ Passport No./ Company No.

(FULL NAME AS PER NRIC/ PASSPORT/ CERTIFICATE OF INCORPORATION IN BLOCK LETTERS)
of
(FULL ADDRESS)
being a member of Kenanga Investment Bank Berhad hereby appoint

(FULL NAME AS PER NRIC/ PASSPORT IN BLOCK LETTERS)
NRIC No./ Passport No. of

(FULL ADDRESS)
and/ or falling him NRIC No./ Passport No.

(FULL NAME AS PER NRIC/ PASSPORT IN BLOCK LETTERS)
of
(FULL ADDRESS)
or failing him, THE CHAIRMAN OF THE MEETING as my/ our proxy to vote for me/ us and on my/ our behalf at the Forty-Ninth (49th) Annual General Meeting
(“49th AGM”) of the Company to be held fully virtual at Level 19, Kenanga Tower, 237, Jalan Tun Razak, 50400 Kuala Lumpur, Wilayah Persekutuan, Malaysia
through live streaming and online remote voting via the Remote Participation and Electronic Voting Facilities (“RPEV Facilities”) which are available at
Boardroom Share Registrars Sdn Bhd (“Boardroom”)’s online platform at https://meeting.boardroomlimited.my (Domain Registration No. with MYNIC –
D6A357657) on Thursday, 25 May 2023 at 11.00 a.m. and at any adjournment thereof.
My/ Our proxy is to vote as indicated below.
NO. RESOLUTIONS FOR AGAINST

ORDINARY RESOLUTION
1. Election of Madam Chin Siew Siew pursuant to Clause 84 of the Company’s Constitution RESOLUTION 1
2. Re-election of the following Directors pursuant to Clause 78 of the Company’s Constitution:
2.1 Encik Jeremy Nasrulhaq RESOLUTION 2

2.2 Puan Norazian Ahmad Tajuddin RESOLUTION 3
2.3 Mr. Kanagaraj Lorenz RESOLUTION 4
3. Payment of Directors’ fees totaling RM3,009,917.82 RESOLUTION 5
4. Payment of benefits to the Non-Executive Directors of up to an amount of RM1,300,000.00 RESOLUTION 6
from 26 May 2023 until the next AGM of the Company
5. Re-Appointment of Ernst & Young PLT as Auditors RESOLUTION 7
AS SPECIAL BUSINESS
6. Authority to Directors to Issue Shares RESOLUTION 8
7. Proposed Renewal of Share Buy-Back Authority RESOLUTION 9
Please indicate with an “X” in the appropriate spaces provided to indicate how you wish your vote to be cast. If you do not indicate how you wish your proxy
to vote on any Resolution, the proxy may vote as he/ she thinks fit, or at his/ her discretion, abstain from voting.
Date this……………day of ……………………………2023
FOR APPOINTMENT OF TWO (2) PROXIES, PLEASE INDICATE

THE PERCENTAGE OF SHAREHOLDINGS TO BE REPRESENTED
BY THE PROXIES
No. of Shares Percentage
Proxy 1
NUMBER OF SHARES HELD Proxy 2
Total 100%
Signature/ Common Seal of Member
Notes:
1. Registration for RPEV Facilities
1.1 The Company’s fully virtual 49th AGM will be conducted online, without a physical meeting venue. 2.3 A member who is an Authorised Nominee as defined under the Securities Industry (Central
Members can attend, participate and vote in the meeting remotely or online via Boardroom’s Depositories) Act 1991 may appoint not more than two (2) proxies in respect of each
online platform at https://meeting.boardroomlimited.my (Domain Registration No. with MYNIC – securities account it holds with ordinary shares of the Company standing to the credit of
D6A357657) by using the RPEV Facilities. The only venue involved is the Broadcast Venue where the said securities account.
only the essential individuals are physically present to organise the fully virtual 49th AGM. 2.4 Where a member is an Exempt Authorised Nominee as defined under the Securities
1.2 Registration for RPEV Facilities is opened from the date of the Notice of 49th AGM on Wednesday, Industry (Central Depositories) Act 1991 which holds ordinary shares in the Company for
26 April 2023 until such time before the voting session ends at the 49th AGM on Thursday, 25 May multiple beneficial owners in one (1) securities account (“Omnibus Account”), there is
2023. no limit to the number of proxies which the Exempt Authorised Nominee may appoint in
1.3 Member(s), proxy(ies), corporate representative(s) or attorney(s) are required to register as a user respect of each Omnibus Account it holds.
with Boardroom’s online website first and then pre-register their attendance for the 49th AGM for 2.5 Where a member appoints more than one (1) proxy, the appointments shall be invalid
verification of their eligibility to attend the 49th AGM using the RPEV Facilities based on the General unless he/ she specifies the proportion of his/ her shareholdings to be represented by each
Meeting Record of Depositors as at 18 May 2023. proxy.
2.6 The instrument appointing a proxy shall be in writing under the hand of the appointor or of
2. Proxy his/ her attorney duly authorised in writing, or if the appointor is a corporation, either under
2.1 For the purpose of determining a member who shall be entitled to attend this 49th AGM, the its common seal or under the hand of an officer or attorney duly authorised. Any alteration
Company shall be requesting Bursa Malaysia Depository Sdn Bhd, in accordance with Clause 60 of to the instrument appointing a proxy must be initialled.
the Company’s Constitution and Section 34(1) of the Securities Industry (Central Depositories) Act 2.7 Duly completed Proxy Form must be deposited at the office of the Company’s Share
1991, to issue a General Meeting Record of Depositors as at 18 May 2023. Only a member whose Registrar, Boardroom at 11th Floor, Menara Symphony, No. 5, Jalan Prof. Khoo Kay
name appears in the Record of Depositors as at 18 May 2023 shall be entitled to attend, speak and Kim, Seksyen 13, 46200 Petaling Jaya, Selangor Darul Ehsan, Malaysia, not later than
vote at the said meeting or appoint proxies to attend and/ or vote on his/ her behalf. Wednesday, 24 May 2023 at 11.00 a.m. Alternatively, you may choose to submit the
2.2 A member of the Company entitled to attend, participate, speak and vote at this AGM is entitled to proxy appointment electronically via Boardroom’s Smart Investor Portal Online website
appoint up to two (2) proxies to attend, participate, speak and vote in his/ her place. There shall be at https://investor.boardroomlimited.com before the Proxy Form submission cut-off time
no restriction as to the qualification of the proxy. Since the 49th AGM will be conducted via a virtual as mentioned above. For further information on the electronic submission of Proxy Form,
meeting, a member who is unable to attend and vote at the Meeting may appoint the Chairman of kindly refer to the procedures provided in the Administrative Guide.
the Meeting as his/ her proxy and indicate the voting instruction in the Proxy Form. For Corporate 2.8 Pursuant to Paragraph 8.29A(1) of the Main Market Listing Requirements of Bursa Malaysia
Shareholder, Authorised Nominee and Exempt Authorised Nominee, other than the Chairman of the Securities Berhad, all resolutions set out in the Notice of 49th AGM will be put to vote on a
Meeting, you may appoint a Proxy who is not the Chairman of the Meeting. poll.
Fold Here
Stamp
Boardroom Share Registrars Sdn Bhd

Company Registration No. 199601006647 (378993-D)
11th Floor, Menara Symphony

No. 5, Jalan Prof. Khoo Kay Kim
Seksyen 13
46200 Petaling Jaya
Selangor Darul Ehsan
Malaysia
Fold Here
www.kenanga.com.my

197301002193 (15678-H)
Level 17, Kenanga Tower, 237, Jalan Tun Razak,

50400 Kuala Lumpur, Wilayah Persekutuan, Malaysia.
Tel: (603) 2172 2888 | Fax: (603) 2172 2999

E-mail: kenanga@kenanga.com.my

Kenanga Annual Report 2022

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ANNUAL REPORT

Supplementary information are available on our website: https://www.kenanga.com.my

Annual Report Corporate Governance Report Sustainability Report

WE ARE KENANGA FINANCIAL STATEMENTS

Kenanga At A Glance 2 Five (5)-Year Group Financial Summary 125

Our Sustainability Statement 22 SECTION 6

SECTION 4 Analysis of Shareholdings 354

Corporate Governance Overview Statement ADDITIONAL INFORMATION

Kenanga’s Digital Journey

Rakuten Joint Back Office Launch of Launch of

2016 2017 2017 2019

E-Wallet Launch with

Launch of a Robo-Advisory Signed Memorandum of

Future Facing Trustworthiness

OUR NOTABLE RECOGNITIONS

KENANGA INVESTMENT BANK BERHAD

Bursa Retail Investor Campaign 2022

OUR NOTABLE RECOGNITIONS

KENANGA INVESTORS BERHAD

FSMOne Recommended Unit Trust Awards 2022/2023

Asia Asset Management’s 2023 Best of the Best Awards

Malaysia Best Equity Manager Malaysia Best Impact Investing Manager

Refinitiv Lipper Fund Awards Malaysia 2023

Equity Malaysia Diversified – Mixed MYR Flexible –

Mixed Asset MYR Flexible – Mixed Asset MYR Flexible –

The Asset Benchmark Research, Asian Local Currency Bond

KENANGA FUTURES SDN BHD

Bursa Excellence Awards 2022

• Best Institutional Derivatives Trading Participant (Champion)

Kenanga Investment Bank Berhad

KUT Nominees (Asing) Sdn Bhd

ISMAIL HARITH MERICAN KANAGARAJ LORENZ

LUK WAI HONG, WILLIAM CHOY KHAI CHOON

JEREMY NASRULHAQ CHIN SIEW SIEW

NORAZIAN AHMAD TAJUDDIN

AUDIT COMMITTEE (“AC”) EMPLOYEES’ SHARE SCHEME COMMITTEE (“ESSC”)

Members - Kanagaraj Lorenz Members - Norazian Ahmad Tajuddin

GROUP GOVERNANCE, NOMINATION & GROUP BOARD DIGITAL INNOVATION &

Members - Jeremy Nasrulhaq Members - Luk Wai Hong, William

GROUP BOARD RISK COMMITTEE (“GBRC”) SHARIAH COMMITTEE

GROUP EXECUTIVE COMMITTEE

LEE KOK KHEE CHEONG BOON KAK WOO KING HUAT

DATUK ROSLAN HJ TIK MAHESWARI KANNIAH VAITHIYANATHAN MADAVAN

DATUK WIRA ISMITZ MATTHEW DE ALWIS

SENIOR INDEPENDENT SHARE REGISTRAR PRINCIPAL BANKERS

However, I am proud to say that through these challenges, Kenanga Investment

our people, communities and environment.

EMPOWERING PEOPLE AND COMMUNITIES

THE COMING YEAR

GROUP MANAGING DIRECTOR’S MANAGEMENT

GROUP MANAGING DIRECTOR’S MANAGEMENT

Please refer to page 17.

Profit Before Tax

RM74.2 Investment Banking

Please refer to page 18.

Asset and Wealth Management

RM55.4 REVIEW growth in FY2022 with a PBT of 54.2 million.

Please refer to page 20.

6.0 sen Money Lending and Financing

Please refer to page 20.

Earnings Per Share

GROUP MANAGING DIRECTOR’S MANAGEMENT