KENANGA ANNUAL REPORT 2020

10 2 1 3 4 5 6 7 OUR PERFORMANCE CHAIRMAN’ S MESSAGE DIGITAL GOVERNANCE In view of these events, there is now an even greater need for comprehensive and robust technological and digital governance. In 2019, we laid the framework for this through the establishment of the Group Board Digital Innovation & Technology Committee ( “Committee” ) in line with the requirements of Bank Negara Malaysia’s Policy Document on Risk Management in Technology. In 2020, the Committee served as the foundation of the Group’s overall digital response both to market developments, as well as, to the increased risks and challenges posed by the COVID-19 pandemic. Above all, the Committee continued to drive the Group’s technology agenda and worked hard to ensure that we remained on target with the goals of our three-year Digitalisation Roadmap. To this end, the Committee continued to identify capacities, capabilities and technological infrastructure and services that will be increasingly important to the Group’s agility and responsiveness in the coming years. Supporting this, is a newly established Digital Ventures Team, tasked with executing the Roadmap. They worked persistently throughout the year under challenging circumstances to continue designing and developing new innovative digital products and solutions. In view of this, I am confident that our approach to digital transformation remains absolutely vital to the continued sustainability and success of the Group, and that we have the right people and processes in place to achieve that vision. ETHICS AND GOVERNANCE In the course of 2020, we implemented the second phase of the Group’s Ethics Blueprint and further enhanced our governance and controls which, among other things, brought us in compliance with the newly implemented Section 17A of the Malaysian Anti-Corruption Commission Act 2009. Furthermore, we proceeded with our Fraud Awareness Week ( “FAW” ) by transferring all activities online or on virtual environment. Held annually in conjunction with the Association of Certified Fraud Examiners’ International Fraud Awareness Week, FAW allows us to raise anti-fraud awareness and promote fraud prevention and detection. In 2020, the number of external participants that took part in our FAW activities significantly increased, including those from regulators and enforcement bodies, other listed companies, as well as, professional organisations. The overwhelming response to FAW has been very encouraging in our ongoing mission to combat fraud in the financial services industry and corporate Malaysia generally. In the COVID-19 new normal, it was more important than ever that we put in place and enforce measures to ensure accountability, integrity, and good governance throughout all the Group’s operations. The Board is pleased to note that every member of the Kenanga family has demonstrated an aggressive commitment to the creation of value that is always circumscribed by an equally aggressive commitment to ethical conduct and the best, sustainable practices. Early this year, the Board had expanded the scope of its Group Nomination & Remuneration Committee. It is now the Group Governance, Nomination and Compensation Committee, which will provide increased stewardship, transparency and accountability by uniting previously separate — but critically important —disciplines under a common level of board oversight. A fuller account of our efforts in this respect can be found in the Ethics and Compliance Statement on pages 62 to 69 of this Annual Report. NURTURING SUSTAINABILITY As a leading financial services provider, as well as, business partner, employer, value creator and corporate citizen, we have been committed to sustainable practices for many years. The adoption of our Sustainability Roadmap in 2019 marked the achievement of the first of many milestones on this journey, and we are currently reviewing the sustainability governance framework which will consist of a multidisciplinary membership supported by the Board of Directors, to further reinforce focus on this growing priority. During the year, the Group also conducted its biennial Materiality Assessment to identify key sustainability issues to guide our reporting. In this cycle, we expanded our survey of stakeholder groups to include regulators, and customers, as well as, media, remisiers, vendors, community partners and employees. Please see page 82 for the Sustainability Statement. In the coming year, we hope to expand our work in sustainability in accordance with the Sustainability Roadmap through greater Group-wide acceptance in terms of better integration of sustainability practices in our operations, as well as, through accreditation and benchmarking.