KENANGA ANNUAL REPORT 2017

Innovation and Technology The financial services industry is undergoing an extremely exciting time, led by the disruption from financial technology. We are cognisant of this changing landscape and are constantly challenging ourselves to capitalise on technology to stay ahead of the curve, deliver better customer solutions and facilitate more efficient operational excellence. In May 2017, we saw the launch of Rakuten Trade Sdn Bhd (Rakuten Trade), KIBB’s joint venture company with Rakuten Securities, Inc., a subsidiary of Japan-based Rakuten, Inc., one of the largest e-commerce and FinTech companies in the world. The introduction of Rakuten Trade, the first (1 st ) fully online trading platform in Malaysia, has met with remarkable success. Since it started operations in May 2017, it has attracted over ten thousand (10,000) new account registrations within its first (1 st ) ten (10) months in operations. It was recently awarded the FinTech Company of the Year, a recognition endorsed by the Malaysian Communications and Multimedia Commission. Within the Group, we continue to promote Invesk, a mobile application designed to provide our clients with helpful market trading ideas and insights, investing tools, research reports and market indices. In 2017, an upgrade was launched boasting new features such as ‘Pairing and Portfolio’. Users can now link their Kenanga trading account with this application, streamlining their experience by allowing for real-time execution of trades within the application. Leveraging technology, the annual KenTrade Trading Challenge, a virtual trading competition aimed at providing novice traders an avenue to sharpen their trading skills, was augmented to the next level. Shortlisted participants were given the opportunity to trade with real cash, extending their virtual trading experience to a live one, and allowing them to become more adept at trading online. More details on the Challenge are set out on page 15 of this annual report. As one of the leading stockbrokers in the country, we will continue to find new, innovative means to reach out to and educate, the next generation traders. As mentioned by our Chairman, we are humbled by the number of industry accolades received every year. This year, we were awarded the coveted Most Innovative Participating Organisation (Special Award) by Bursa Malaysia, recognising our efforts in bringing new ideas and innovation to the marketplace. We aspire to continue seeking out new perspectives and opportunities to help shape the future of capital markets in Malaysia. Promoting Ethics and Corporate Governance We subscribe to a philosophy of integrating strong ethics and a compliance culture in the day-to-day management of our business. Continual assessments are conducted on the Group’s policies, procedures and control measures to ensure high standards of ethics, compliance and business conduct. During the year, we invested above and beyond the routine compliance education and awareness programmes to include a highly interactive six (6)-week campaign which was designed to engage our employees in the appreciation of good business conduct. Coinciding with the International Fraud Awareness Week, the programme which was brought to life through games, quizzes and contests, served to embed the values of good corporate governance throughout the Group, reinforcing our commitment to fraud prevention. A dedicated internal workshop for our Heads of Branches, Heads of Departments and Directors was conducted to keep them abreast of the latest regulatory developments and trends. Attended by over one hundred (100) senior staff, the workshop, Embracing the Regulatory Landscape, was accredited by the Securities Industry Development Corporation, entitling attendees to Continuing Professional Education (CPE) points. More information on Compliance and Governance are set out on pages 36 to 55 of this annual report. group managing director’s overview Kenanga Investment Bank Berhad 14