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