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Agrobank: Annual Report 2018

IM Insights
By IM Insights
5 days ago
Agrobank: Annual Report 2018

Amanah, Fatwa, Fiqh, Halal, Haram, Hibah, Islam, Islamic banking, Maqasid, Mufti, Murabahah, Salah, Shariah, Shariah compliant, Sukuk, Takaful, Tawarruq, Zakat, Ta’widh, Credit Risk, Daya, Masih, Participation, Provision, Receivables, Reserves, Sales

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  1. IMPAK KAMI MERENTASI RANTAIAN NILAI OUR IMPACT ACROSS THE VALUE CHAINMENGENAI IMPACT BANKING LAPORAN INI ALONG THE VALUE CHAIN ABOUT THIS REPORT Lebih Banyak Sumber Pertanian More Input Resources AGROBANK Lebih Ramai We recognise the interconnectedness and impact of each aspect Pekerja productivity , of the value chain towards achieving agriculture Moredevelopment Workers and ultimately, elevate socio-economic of the community. To do this effectively, we focus on how we can make a positive impact via three core areas which are economic development, social empowerment and environmental sustainability. These become our guiding objectives towards building greater sustainability along the entire value chain of this sector. Keprihatinan Terhadap We Mempertingkatkan look to drive the sector’s economic development by Kualiti Alam Sekitar supporting viableHidup agri-businesses and the interlinked processes Uplift along the valueQuality chain. Initiatives such asEnvironmentally the paddy and chilli Conscious Life programmes seek to establish fertigation Of financing beneficial alliances between farmers and buyers and support the integrated tasks in between. We have also seen the positive impact of such initiatives in creating new employment opportunities through large scale agriculture projects. Consequently, this can have a multiplier effect on social empowerment. We recognise our responsibility to support our communities and we strive to empower them through capacity building and financial inclusion initiatives. We do this through investing in entrepreneur developmentPelanggan programmes to give them a better standing in society as Customer agropreneurs, while strengthening our presence within the unbanked and underserved communities. Perniagaan Recognising that we Mikro play an important role in influencing social Microbusiness change and creating values, we strive to embed environmental sustainability along the value chain. We do this through influencing greater appreciation for environmentally-friendly processes that are validated by certifications, as well as steering Pemborongan/Peruncitan the sector players towards more environmental viable agriculture Retailing/Wholesaling practices and trends such as aquaculture and hydroponics. As we progress forward in our drive towards greater growth and sustainability within the agriculture sector and its eco-system, PELANGGAN remains firmly entrenched in strengthening our commitment our role to positively benefit our people, customers, community, environment and our nation. Industri Asas Tani Agro-based Industry Pelanggan Customer Laporan Korporat/Corporate Report Menyediakan gambaran menyeluruh berhubung prestasi korporat kami, keutamaan strategik kami dan bagaimana kami menyokong sektor sasaran untuk mencipta nilai pada tahun 2018, serta prospek tahun 2019. Produktiviti Provides a comprehensive overview of our corporate Dipertingkatkan performance, our strategic priorities, and how we support Enhanced our target sector to create value for 2018, as well as our Productivity outlook for 2019. Laporan Kewangan/Financial Report Laporan terperinci prestasi kewangan kami yang telah diaudit berikutan tahun pertama mengadaptasi Standard Laporan Kewangan Keprihatinan Terhadap Malaysia (MFRS) 9. Alam Sekitar Detailed reporting of our audited financial performance Environmentally following our first year of adoption of Malaysian Financial Conscious Reporting Standards (MFRS) 9. Laporan Tadbir Urus/Governance Report Butir-butir Lembaga Pengarah dan Pengurusan Kanan, dan pendekatan kami untuk tadbir urus korporat yang merangkumi tadbir urus Syariah kami. Details of our Board of Directors and senior management, and our approach to corporate governance which includes our Pelanggan Shariah governance. Customer Pematuhan dengan/In Compliance with • Dasar Tadbir Urus Korporat Bank Negara Malaysia Kualiti Hidup Lebih Baik Bank Negara Malaysia Corporate Governance Policy Better Quality • Garis Panduan Laporan Kewangan bagi Institusi Aktiviti Ekonomi Of Life Kewangan Pembangunan (IKP) Economic Activity Guidelines on Financial Reporting for Development Pemprosesan Financial Institutions (DFI) Agro-makanan Agro-food Production • Dokumen, Polisi dan Garis Panduan Bank Negara Malaysia Bank Negara Malaysia Policy Documents and Guidelines PNK TINGGI • Akta Institusi Kewangan Pembangunan 2002 Lebih Banyak HIGH GNI KOMUNITI Act 2002 Development Financial Institutions Sumber Pertanian More Input • Akta Syarikat 2016 Resources Companies Act 2016 • Piawaian Pelaporan Kewangan Malaysia (MFRS) Malaysian Financial Reporting Standards (MFRS) PERBANKAN BERIMPAK Aktiviti Ekonomi Economic Activity Pertumbuhan Eksport Export Growth PERTUMBUHAN KDNK GDP GROWTH SEPANJANG Tahun Asas KDNK/GDP Base Year Angka-angka berkaitan KDNK dalam laporan tahunan ini dinilai pada harga pasaran tahun 2010 sebagai tahun asas. Ekonomi Aktiviti Economic Activity This annual report GDP related figures are evaluated at the market prices of 2010 as the base year. RANTAIAN NILAI Laporan Dalam Talian/Online Report Versi dalam talian disediakan di https://www. agrobank.com.my/home/corporate-info/annualreports/ IMPACT BANKING ALONG THE VALUE CHAIN Online Version Available at https://www.agrobank.com. my/home/corporate-info/annual-reports/ LAPORAN TAHUNAN 2018 ANNUAL REPORT Mengenai Laporan Ini  |  About This Report Impact Banking Along the Value Chain reflects the core of what we do at Agrobank, which is to empower and support the entire aspect of the agriculture value chain so that the sector can continue to thrive and have a positive impact on the real economy, in line with the principles of value-based financial intermediation (VBI). This includes designing agriculture financing products, enhancing access to financing, developing beneficial collaborations, as well as providing education and advisory to the many players within the eco-system. Impak Kami Merentasi Rantaian Nilai  |  Our Impact Across the Value Chain
  2. IMPAK KAMI MERENTASI RANTAIAN NILAI OUR IMPACT ACROSS THE VALUE CHAINMENGENAI IMPACT BANKING LAPORAN INI ALONG THE VALUE CHAIN ABOUT THIS REPORT Impact Banking Along the Value Chain reflects the core of what we do at Agrobank , which is to empower and support the entire aspect of the agriculture value chain so that the sector can continue to thrive and have a positive impact on the real economy, in line with the principles of value-based financial intermediation (VBI). This includes designing agriculture financing products, enhancing access to financing, developing beneficial collaborations, as well as providing education and advisory to the many players within the eco-system. Keprihatinan Terhadap We Mempertingkatkan look to drive the sector’s economic development by Kualiti Alam Sekitar supporting viableHidup agri-businesses and the interlinked processes Uplift along the valueQuality chain. Initiatives such asEnvironmentally the paddy and chilli Conscious Life programmes seek to establish fertigation Of financing beneficial alliances between farmers and buyers and support the integrated tasks in between. We have also seen the positive impact of such initiatives in creating new employment opportunities through large scale agriculture projects. Consequently, this can have a multiplier effect on social empowerment. We recognise our responsibility to support our communities and we strive to empower them through capacity building and financial inclusion initiatives. We do this through investing in entrepreneur developmentPelanggan programmes to give them a better standing in society as Customer agropreneurs, while strengthening our presence within the unbanked and underserved communities. Perniagaan Recognising that we Mikro play an important role in influencing social Microbusiness change and creating values, we strive to embed environmental sustainability along the value chain. We do this through influencing greater appreciation for environmentally-friendly processes that are validated by certifications, as well as steering Pemborongan/Peruncitan the sector players towards more environmental viable agriculture Retailing/Wholesaling practices and trends such as aquaculture and hydroponics. As we progress forward in our drive towards greater growth and sustainability within the agriculture sector and its eco-system, our commitment remains firmly entrenched in strengthening our role to positively benefit our people, customers, community, environment and our nation. Aktiviti Ekonomi Economic Activity Pertumbuhan Eksport Export Growth Industri Asas Tani Agro-based Industry Pelanggan Customer Laporan Korporat/Corporate Report Menyediakan gambaran menyeluruh berhubung prestasi korporat kami, keutamaan strategik kami dan bagaimana kami menyokong sektor sasaran untuk mencipta nilai pada tahun 2018, serta prospek tahun 2019. Produktiviti Provides a comprehensive overview of our corporate Dipertingkatkan performance, our strategic priorities, and how we support Enhanced our target sector to create value for 2018, as well as our Productivity outlook for 2019. Laporan Kewangan/Financial Report Laporan terperinci prestasi kewangan kami yang telah diaudit berikutan tahun pertama mengadaptasi Standard Laporan Kewangan Keprihatinan Terhadap Malaysia (MFRS) 9. Alam Sekitar Detailed reporting of our audited financial performance Environmentally following our first year of adoption of Malaysian Financial Conscious Reporting Standards (MFRS) 9. Laporan Tadbir Urus/Governance Report Butir-butir Lembaga Pengarah dan Pengurusan Kanan, dan pendekatan kami untuk tadbir urus korporat yang merangkumi tadbir urus Syariah kami. Details of our Board of Directors and senior management, and our approach to corporate governance which includes our Pelanggan Shariah governance. Customer Pematuhan dengan/In Compliance with • Dasar Tadbir Urus Korporat Bank Negara Malaysia Kualiti Hidup Lebih Baik Bank Negara Malaysia Corporate Governance Policy Better Quality Garis Panduan Laporan • Kewangan bagi Institusi Aktiviti Ekonomi Of Life Kewangan Pembangunan (IKP) Economic Activity Guidelines on Financial Reporting for Development Pemprosesan Financial Institutions (DFI) Agro-makanan Agro-food Production Polisi dan Garis Panduan Bank Negara • Dokumen, Malaysia Bank Negara Malaysia Policy Documents and Guidelines PNK TINGGI Akta Institusi Kewangan Pembangunan 2002 • Lebih Banyak HIGH GNI Financial Institutions Act 2002 Development Sumber Pertanian More Input • Akta Syarikat 2016 Resources Companies Act 2016 • Piawaian Pelaporan Kewangan Malaysia (MFRS) Malaysian Financial Reporting Standards (MFRS) PERTUMBUHAN KDNK GDP GROWTH Tahun Asas KDNK/GDP Base Year Angka-angka berkaitan KDNK dalam laporan tahunan ini dinilai pada harga pasaran tahun 2010 sebagai tahun asas. Ekonomi Aktiviti Economic Activity This annual report GDP related figures are evaluated at the market prices of 2010 as the base year. Laporan Dalam Talian/Online Report Versi dalam talian disediakan di https://www. agrobank.com.my/home/corporate-info/annualreports/ Online Version Available at https://www.agrobank.com. my/home/corporate-info/annual-reports/ Mengenai Laporan Ini  |  About This Report Lebih Ramai We recognise the interconnectedness and impact of each aspect Pekerja productivity, of the value chain towards achieving agriculture Moredevelopment Workers and ultimately, elevate socio-economic of the community. To do this effectively, we focus on how we can make a positive impact via three core areas which are economic development, social empowerment and environmental sustainability. These become our guiding objectives towards building greater sustainability along the entire value chain of this sector. Lebih Banyak Sumber Pertanian More Input Resources Impak Kami Merentasi Rantaian Nilai  |  Our Impact Across the Value Chain
  3. Untuk mendorong pertumbuhan ekonomi , kami membekalkan sokongan kepada perniagaan asas tani yang berdaya maju dan proses-proses yang saling bersambung sepanjang rantaian nilai. Inisiatif-inisiatif seperti program pembiayaan penanaman padi dan fertigasi cili berfungsi untuk menghubungkan para petani dan pembeli secara bermanfaat, dan melancarkan kerja-kerja bersepadu antara mereka. Inisiatif seperti ini didapati berkesan untuk mendatangkan impak-impak positif seperti penciptaan peluang pekerjaan baharu melalui projek-projek pertanian berskala besar. Perbankan Berimpak Sepanjang Rantaian Nilai mencerminkan teras usaha di Agrobank, iaitu memperkasakan dan mendukung seluruh aspek dalam rantaian nilai pertanian supaya sektor ini terus berkembang dan memberikan impak yang positif kepada ekonomi sebenar, selari dengan prinsip-prinsip perantaraan berasaskan nilai (VBI). Ini termasuk menyediakan produk pembiayaan pertanian, mempertingkatkan akses kepada pembiayaan, membangunkan usaha sama yang bermanfaat, di samping menyediakan khidmat pendidikan dan nasihat kepada berbilang pemain di dalam ekosistem ini. Dalam usaha kami untuk mencapai produktiviti pertanian, dan seterusnya meningkatkan pembangunan sosioekonomi komuniti, kami mengutamakan kesalingterkaitan dan impak pada setiap aspek rantaian nilai. Untuk melaksanakan usaha ini secara berkesan, fokus ditumpukan pada penghasilan impak yang positif dalam tiga bidang utama iaitu pertumbuhan ekonomi, pemerkasaan sosial dan kelestarian alam sekitar. Ini turut membentuk objektif-objektif yang memandu kami untuk meningkatkan kemampanan sepanjang seluruh rantaian nilai bagi sektor ini. Demikian, ini boleh mendatangkan impak berganda kepada pemerkasaan sosial. Sejajar dengan tanggungjawab kami untuk menyokong komuniti kami, usaha sentiasa dijalankan untuk memperkasakan mereka melalui inisiatif-inisiatif membina keupayaan dan rangkuman kewangan. Ini kami lakukan melalui pelaburan dalam program pembangunan usahawan untuk meningkatkan kedudukan mereka dalam masyarakat sebagai usahawan tani, sambil mengukuhkan kehadiran kami dalam komuniti tanpa perkhidmatan bank dan komuniti yang kurang mendapat perkhidmatan bank. Memandangkan kami memegang peranan penting dalam mempengaruhi perubahan sosial dan penciptaan nilai, kami bertekad untuk mengekalkan kelestarian alam sekitar sepanjang rantaian nilai. Ini kami lakukan dengan menggalakkan proses mesra alam yang diiktirafkan, di samping memandu pemain sektor untuk beralih kepada amalan dan trend pertanian yang berdaya maju seperti akuakultur dan hidroponik. Dalam usaha kami bagi mempertingkatkan pertumbuhan dan kemampanan sektor pertanian dan ekosistemnya, kami kekal komited untuk terus mengukuhkan peranan kami dalam membawakan manfaat yang positif kepada warga kerja, pelanggan, komuniti, persekitaran dan negara kami. PERBANKAN BERIMPAK SEPANJANG RANTAIAN NILAI
  4. ALONG THE VALUE CHAIN Impact Banking Along the Value Chain reflects the core of what we do at Agrobank , which is to empower and support the entire aspect of the agriculture value chain so that the sector can continue to thrive and have a positive impact on the real economy, in line with the principles of value-based financial intermediation (VBI). This includes designing agriculture financing products, enhancing access to financing, developing beneficial collaborations, as well as providing education and advisory to the many players within the eco-system. We recognise the interconnectedness and impact of each aspect of the value chain towards achieving agriculture productivity, and ultimately, elevate socio-economic development of the community. To do this effectively, we focus on how we can make a positive impact via three core areas which are economic development, social empowerment and environmental sustainability. These become our guiding objectives towards building greater sustainability along the entire value chain of this sector. We look to drive the sector’s economic development by supporting viable agri-businesses and the interlinked processes along the value chain. Initiatives such as the paddy and chilli fertigation financing programmes seek to establish beneficial alliances between farmers and buyers and support the integrated tasks in between. We have also seen the positive impact of such initiatives in creating new employment opportunities through large scale agriculture projects. Consequently, this can have a multiplier effect on social empowerment. We recognise our responsibility to support our communities and we strive to empower them through capacity building and financial inclusion initiatives. We do this through investing in entrepreneur development programmes to give them a better standing in society as agropreneurs, while strengthening our presence within the unbanked and underserved communities. Recognising that we play an important role in influencing social change and creating values, we strive to embed environmental sustainability along the value chain. We do this through influencing greater appreciation for environmentally-friendly processes that are validated by certifications, as well as steering the sector players towards more environmental viable agriculture practices and trends such as aquaculture and hydroponics. As we progress forward in our drive towards greater growth and sustainability within the agriculture sector and its eco-system, our commitment remains firmly entrenched in strengthening our role to positively benefit our people, customers, community, environment and our nation. MENGENAI LAPORAN INI ABOUT THIS REPORT Laporan Korporat/Corporate Report Menyediakan gambaran menyeluruh berhubung prestasi korporat kami, keutamaan strategik kami dan bagaimana kami menyokong sektor sasaran untuk mencipta nilai pada tahun 2018, serta prospek tahun 2019. Provides a comprehensive overview of our corporate performance, our strategic priorities, and how we support our target sector to create value for 2018, as well as our outlook for 2019. Laporan Kewangan/Financial Report Laporan terperinci prestasi kewangan kami yang telah diaudit berikutan tahun pertama mengadaptasi Standard Laporan Kewangan Malaysia (MFRS) 9. Detailed reporting of our audited financial performance following our first year of adoption of Malaysian Financial Reporting Standards (MFRS) 9. Laporan Tadbir Urus/Governance Report Butir-butir Lembaga Pengarah dan Pengurusan Kanan, dan pendekatan kami untuk tadbir urus korporat yang merangkumi tadbir urus Syariah kami. Details of our Board of Directors and senior management, and our approach to corporate governance which includes our Shariah governance. Pematuhan dengan/In Compliance with • Dasar Tadbir Urus Korporat Bank Negara Malaysia Bank Negara Malaysia Corporate Governance Policy • Garis Panduan Laporan Kewangan bagi Institusi Kewangan Pembangunan (IKP) Guidelines on Financial Reporting for Development Financial Institutions (DFI) • Dokumen, Polisi dan Garis Panduan Bank Negara Malaysia Bank Negara Malaysia Policy Documents and Guidelines • Akta Institusi Kewangan Pembangunan 2002 Development Financial Institutions Act 2002 • Akta Syarikat 2016 Companies Act 2016 • Piawaian Pelaporan Kewangan Malaysia (MFRS) Malaysian Financial Reporting Standards (MFRS) Tahun Asas KDNK/GDP Base Year Angka-angka berkaitan KDNK dalam laporan tahunan ini dinilai pada harga pasaran tahun 2010 sebagai tahun asas. This annual report GDP related figures are evaluated at the market prices of 2010 as the base year. Laporan Dalam Talian/Online Report Versi dalam talian disediakan di https://www. agrobank.com.my/home/corporate-info/annualreports/ Online Version Available at https://www.agrobank.com. my/home/corporate-info/annual-reports/ Mengenai Laporan Ini  |  About This Report IMPACT BANKING
  5. Inovasi tercetus apabila kepentingan nilai tanah mula mendapat perhatian sejagat . Pertanian pula membentuk asas dalam pembangunan masyarakat dan kestabilan ekonomi. Jikalau sektor ini dipupuk, pembangunan masyarakat turut meningkat. Jikalau sektor ini diabaikan, pembangunan masyarakat akan kekal terbiar. Innovation began when mankind realised the value of land. Agriculture is the foundation of civilisation and of stable economies. Where it is nurtured, society thrives. Where it fails, civilisations lie abandoned. TAN SRI MOHAMAD ZABIDI ZAINAL Pengerusi, Ahli Lembaga Pengarah Chairman, Board of Directors Agrobank berbangga dapat berkhidmat untuk industri yang memainkan peranan penting dalam pengukuhan dan kemampanan negara, biarpun kita sedang memasuki era pertumbuhan ekonomi yang baharu. Peranan Agrobank dalam menggalakkan pertanian sebagai enjin pertumbuhan dapat disaksikan melalui pembangunan sektor pertanian negara, di samping pertumbuhan pelbagai komoditi agromakanan sepanjang tahun-tahun yang lepas. Hasilnya, Malaysia telah berjaya mengurangkan pengimportan beberapa hasil pertanian dan sedang berusaha untuk mencapai kemampanan dalam segmen-segmen asas yang disasarkan. Perjalanan kami masih penuh dengan pancaroba dan pelbagai cabaran. Bagi mencapai objektif kami untuk memastikan pengeluaran bekalan makanan yang mencukupi bagi kegunaan tempatan dan pengeluaran produk bernilai tinggi untuk pasaran eksport, sektor ini perlu melabur dalam strategi-strategi inovatif bagi menangani cabaran-cabaran dalam ekonomi global, harga bekalan dan produk pertanian tidak seimbang, pembaharuan teknologi, serta perubahan iklim dan penyakit tumbuh-tumbuhan dan ternakan yang boleh membahayakan. Di samping itu, usaha meningkatkan taraf hidup para petani dan komuniti perladangan adalah kritikal untuk menarik dan memastikan generasi baharu Malaysia memanfaatkan peluang kerjaya dalam sektor ini. Agrobank is honoured to serve this vital industry which anchors the nation’s resiliency and sustainability, even as we advance into new eras of economic growth. Over the years, the Bank has supported the development of our nation’s agriculture sector and ushered in the growth of diverse agro-food commodities with our developmental role in promoting agriculture as an engine of growth. As a result, Malaysia has reduced its importation of several agriculture produce and is on track towards achieving self-sustainability in targeted core segments. The journey ahead continues to be challenging. In order to achieve the objective of producing sufficient food for local consumption and high-value products for export markets, the sector needs to invest in new innovative strategies to respond to changes in global economy, volatile price of inputs and produce, and technological advancements in addition to severe climate changes and lethal plants and livestock diseases. Beyond this, the socio-economic upliftment of farmers and farming communities is critical to ensure interest and take-up by the new generation of Malaysians, as new career opportunities emerge.
  6. THE AGRICULTURE VALUE CHAIN Sektor pertanian menyumbang The agriculture sector contributed Imbas Kod QR untuk maklumat lanjut mengenai Hala Tuju Strategik MOA 2019-2020 . Scan the QR code to find out more about MOA’s Strategic Priorities 2019-2020. The agriculture value chain in Malaysia depicts the impact the sector has on the real economy in terms of providing socio-economic upliftment by contributing to the national GDP, creating employment opportunities for marginalised and rural communities, and generating earnings from export products. The value chain comprises a full range of activities and stakeholders involved in moving agricultural produce from input suppliers to farmers’ fields, and ultimately, to consumers’ tables. We term this simply as farm to table. Strong links forged from between each stakeholder or process in the chain fortifies synergies to form a viable chain. Functions Input Supply Production Actors Seed & Fertiliser Suppliers Farmers Activities Refer to the table below for an example of the paddy value chain. Seed & Fertiliser Supply Growing, Harvesting, Drying, Threshing Processing Millers Wholesaling/ Retailing Wholesalers/ Retailers 7.8% kepada Keluaran Dalam Negara Kasar (KDNK) 2018 to Malaysia’s Gross Domestic Product (GDP) 2018 Menggaji lebih dari Employed more than Domestic Consumption 11.3% Consumers daripada jumlah pekerjaan pada 2017. [Pekerjaan negara: 14.45 juta] of the total employment in 2017. [National employment: 14.45 million) Drying, Storage, Milling, Grading Wholesaling/ Retailing Consumption Value chain is often defined as the sequence of value-adding activities of raw Kementerian Pertanian dan Industri Asas Tani (MOA) telah melancarkan Hala Tuju materials from production phase to consumption, through processing and commercialisation. Strategik 2019-2020 bagi sektor pertanian yang menggariskan lima objektif tertumpu It recognises the set of industry players involved in business activities where at each phase; kepada tiga dimensi. Bagi menyokong tersebut, Agrobank memainkan value is added to the product. Value chain usaha conceptMOA allows integration of the various players in peranan penting untukprocessing menghubungkan sektorand kewangan kepada agriculture production, and marketing defines the role ofekonomi players. Itsebenar also defines melalui pertanian. the scopesektor and purpose of partnerships that can be established. Memandang ke hadapan, Agrobank komited untuk memanfaatkan potensi Hala Tuju Strategik MOA 2019-2020 bagi terus membangunkan sektor pertanian dan When every part of the agriculture value chain is nurtured, industry players are menyokong kemampanan pertumbuhan komuniti pertanian di Malaysia. well-positioned to reduce cost and risk in financing, and reach out to smallholder farmers. It ensures a win-win collaborative model of adequate supply of products and guaranteed purchase by identified buyers, thereby assuring farmers of steady income streams. As a development bank that is established primarily to meet the financial needs and well-being of the the sector, agriculture community (fromand food-base crop farmers, Laying a blueprint for the Ministry of Agriculture Agro-based Industry commodity base farmers, livestockfive breeders to entrepreneurs involved (MOA)’s Strategic Priorities fishermen, 2019-2020 outlines objectives, focusing on three dimensions of agrofood. Agrobank’s pivotal role in connecting sector in agro-related industries), Agrobank essentially supportsthe thefinancial whole agriculture to the real economy via the agriculture sector, is key towards supporting the within MOA’s the value chain. We will continue to look at ways to facilitate support Strategic Priorities integrated links of2019-2020. the agriculture sector to ensure that all players along the value chain benefit from our commitment towards making a positive impact to the real Moving forward, Agrobank is committed to unlock the potential of MOA’s Strategic economy. Menyumbang lebih dari Contributed more than 13.5% daripada jumlah pendapatan eksport pada 2017. [Jumlah eksport negara: RM934.9 juta] of the total export earnings in 2017. [National total export: RM934.9 million] Priorities 2019-2020 to further develop the agriculture sector and support the sustainable growth of the agriculture community in Malaysia. Sumber: Jabatan Statistik Malaysia Source: Department of Statistics Malaysia
  7. RANTAIAN NILAI PERTANIAN Inovasi tercetus apabila kepentingan nilai tanah mula mendapat perhatian sejagat . Pertanian pula membentuk asas dalam pembangunan masyarakat dan kestabilan ekonomi. Jikalau sektor ini dipupuk, pembangunan masyarakat turut meningkat. Jikalau sektor ini diabaikan, pembangunan masyarakat akan kekal terbiar. Innovation began when mankind realised the value of land. Agriculture is the foundation of civilisation and of stable economies. Where it is nurtured, society thrives. Where it fails, civilisations lie abandoned. Rantaian nilai pertanian di Malaysia menggambarkan kepentingan sektor pertanian dalam meningkatkan sosioekonomi, untuk memberi impak kepada ekonomi sebenar melalui sumbangan kepada KDNK negara, mewujudkan peluang pekerjaan bagi komuniti terpinggir dan komuniti luar bandar, dan penjanaan pendapatan daripada produk eksport. Rantaian nilai merangkumi rangkaian penuh aktiviti dan pihak berkepentingan yang menggerakkan hasil pertanian daripada pembekal input kepada ladang, dan seterusnya, kepada meja pengguna. Proses ini dikenali sebagai proses ladang ke meja. Perhubungan kukuh dibina antara setiap pihak berkepentingan atau proses dalam rantaian bagi memperkukuhkan sinergi dalam pembentukan rantaian yang berdaya maju. Rujuk kepada jadual di bawah untuk contoh rantaian nilai padi. TAN SRI MOHAMAD ZABIDI ZAINAL Fungsi Pemain Pembekal Benih & Baja Petani Pengilang Pemborong/ Peruncit Pengguna Aktiviti Pengerusi, Ahli Lembaga Pengarah Chairman, Board of Directors Bekalan Input Bekalan Benih & Baja Penanaman, Penuaian, Pengeringan, Pembantingan Pengeringan, Penyimpanan, Pengilangan, Penggredan Pemborong/ Peruncitan Penggunaan Pengeluaran Pemprosesan Pemborongan/ Peruncitan Penggunaan Domestik Rantaian nilai sering ditakrifkan sebagai urutan aktiviti menambah nilai bahan mentah, daripada Perjalanan kami masih penuh dengan pancaroba dan pelbagai cabaran. Agrobank berbangga dapat berkhidmat untuk industri yang memainkan fasa pengeluaran kepada fasa penggunaan, melalui pemprosesan dan pemerdagangan. Ia Bagi mencapai objektif kami untuk memastikan pengeluaran bekalan peranan penting dalam pengukuhan dan kemampanan negara, biarpun merangkumi pemain industri yang terlibat dalam aktiviti perniagaan di mana, pada setiap fasa; makanan mencukupi kegunaan tempatan dan pengeluaran produk kita sedang memasuki era pertumbuhan ekonomi yang baharu. nilai Peranan akan ditambah kepadayang produk. Konsepbagi rantaian nilai ini menyepadukan pelbagai pemain bernilai tinggi untuk pasaran eksport, pertanian, sektor inidiperlu melabur dalam Agrobank dalam menggalakkan pertanian sebagai enjin pertumbuhan dapat dalam aktiviti pengeluaran, pemprosesan dan pemasaran samping menetapkan strategi-strategi inovatif bagi cabaran-cabaran dalam ekonomi disaksikan melalui pembangunan sektor pertanian negara, di peranan sampingpara pemain. Ia turut menentukan skopmenangani dan tujuan bagi penubuhan kolaborasi. global, harga bekalan dan produk pertanian tidak seimbang, pembaharuan pertumbuhan pelbagai komoditi agromakanan sepanjang tahun-tahun teknologi, serta perubahan iklim dan penyakit tumbuh-tumbuhan dan yang lepas. Hasilnya, Malaysia telah berjaya mengurangkan pengimportan ternakan boleh nilai membahayakan. Di samping itu, usaha meningkatkan beberapa hasil pertanian dan sedang berusaha untuk mencapai Pemajuan setiap aspekyang rantaian pertanian akan membantu pemain industri taraf hidup para petani dan komuniti perladangan adalah untuk kemampanan dalam segmen-segmen asas yang disasarkan. mengurangkan kos dan risiko dalam pembiayaan, dan meluaskankritikal jangkauan menarik dan memastikan generasi baharu Malaysia memanfaatkan kepada pekebun kecil. Usaha ini adalah bermanfaat bagi kedua-dua pihak, di peluang kerjaya dalam sektor ini. mana bekalan produk yang mencukupi disediakan dan pembelian oleh pembeli yang dikenal pasti adalah dijamin, seterusnya memastikan aliran pendapatan yang stabil bagi petani. Sebagai pembangunan ditubuhkan untuk memenuhi keperluan journey ahead yang continues to be challenging. In order to achieve the Agrobank is honoured to serve this vital industry which anchors the bankThe dan kesejahteraan pertanian petani tanaman objective of producingkomuniti sufficient food for local(daripada consumption and high-value nation’s resiliency and sustainability, even as we advance into new erasmemastikan of products forpetani export berasaskan markets, the sector needsnelayan to invest in newpenternak innovative berasaskan makanan, komoditi, dan economic growth. Over the years, the Bank has supported the development strategies to respond to changes in global economy, volatile price of of our nation’s agriculture sector and ushered in the growth ofternakan diverse kepada usahawan yang terlibat dalam industri asas tani), Agrobank inputs and produce, and technological advancements addition to severe agro-food commodities with our developmental role in promoting berperanan untuk menyokong seluruh rantaian nilai pertanian.inKami akan terus climate changes and lethal plants and livestock Beyond this, the agriculture as an engine of growth. As a result, Malaysia has reduced its menyalurkan sokongan bersepadu kepada seluruh aspek diseases. dalam sektor pertanian socio-economic upliftment of farmers and farming is critical importation of several agriculture produce and is on track towards achieving bagi memastikan semua pemain sepanjang rantaian nilai communities ini akan menerima to ensure take-up the new kepada generation of Malaysians, as new self-sustainability in targeted core segments. manfaat daripada impakinterest positifand yang kami by bawakan ekonomi sebenar. career opportunities emerge.
  8. THE AGRICULTURE VALUE CHAIN Sektor pertanian menyumbang The agriculture sector contributed The agriculture value chain in Malaysia depicts the impact the sector has on the real economy in terms of providing socio-economic upliftment by contributing to the national GDP , creating employment opportunities for marginalised and rural communities, and generating earnings from export products. The value chain comprises a full range of activities and stakeholders involved in moving agricultural produce from input suppliers to farmers’ fields, and ultimately, to consumers’ tables. We term this simply as farm to table. Strong links forged from between each stakeholder or process in the chain fortifies synergies to form a viable chain. Functions Input Supply Production Actors Seed & Fertiliser Suppliers Farmers Activities Refer to the table below for an example of the paddy value chain. Seed & Fertiliser Supply Growing, Harvesting, Drying, Threshing Processing Millers Wholesaling/ Retailing Wholesalers/ Retailers 7.8% kepada Keluaran Dalam Negara Kasar (KDNK) 2018 to Malaysia’s Gross Domestic Product (GDP) 2018 Menggaji lebih dari Employed more than Domestic Consumption 11.3% Consumers daripada jumlah pekerjaan pada 2017. [Pekerjaan negara: 14.45 juta] of the total employment in 2017. [National employment: 14.45 million) Drying, Storage, Milling, Grading Wholesaling/ Retailing Consumption Value chain is often defined as the sequence of value-adding activities of raw materials from production phase to consumption, through processing and commercialisation. It recognises the set of industry players involved in business activities where at each phase; value is added to the product. Value chain concept allows integration of the various players in agriculture production, processing and marketing and defines the role of players. It also defines the scope and purpose of partnerships that can be established. When every part of the agriculture value chain is nurtured, industry players are well-positioned to reduce cost and risk in financing, and reach out to smallholder farmers. It ensures a win-win collaborative model of adequate supply of products and guaranteed purchase by identified buyers, thereby assuring farmers of steady income streams. As a development bank that is established primarily to meet the financial needs and well-being of the agriculture community (from food-base crop farmers, commodity base farmers, fishermen, livestock breeders to entrepreneurs involved in agro-related industries), Agrobank essentially supports the whole agriculture value chain. We will continue to look at ways to facilitate support within the integrated links of the agriculture sector to ensure that all players along the value chain benefit from our commitment towards making a positive impact to the real economy. Menyumbang lebih dari Contributed more than 13.5% daripada jumlah pendapatan eksport pada 2017. [Jumlah eksport negara: RM934.9 juta] of the total export earnings in 2017. [National total export: RM934.9 million] Sumber: Jabatan Statistik Malaysia Source: Department of Statistics Malaysia
  9. DALAM LAPORAN INI INSIDE THIS REPORT 01 Impak Kami Merentasi Rantaian Nilai Our Impact Across The Value Chain 02 Perbankan Berimpak Sepanjang Rantaian Nilai Impact Banking Along the Value Chain 03 Mengenai Laporan Ini About This Report 01 02 Prestasi Strategik 2018 2018 Strategic Performance 22 Perutusan Pengerusi Chairman ’s Statement 30 Perbincangan dan Analisis Pengurusan Management Discussion and Analysis 54 Penyata Perantaraan Berasaskan Nilai (VBI): Menurut Cara Agrobank Value-Based Intermediation (VBI) Statement: The Agrobank Way Mengenai Kami About Us 08 Seimbas Lalu Agrobank at a Glance 10 Latar Belakang Our Background 12 Pelan Kerja Strategik Kami Our Strategic Framework 13 Nilai Teras dan Matlamat Kami Our Core Values and Goals 14 Pencapaian Peranan Pembangunan/ Dimandatkan Developmental and Mandated Achievements 16 Ringkasan Kewangan Lima Tahun Five-Year Financial Summary 17 Sorotan Kewangan Financial Highlights 18 Struktur Organisasi Kami Our Organisational Structure 22 80 03 30 Aktiviti 2018 2018 Activities 80 Aktiviti Korporat Corporate Activities 88 Sorotan Media 2018 2018 Media Highlights
  10. 04 Bagaimana Kami Ditadbir Urus How We Are Governed 92 Ahli Lembaga Pengarah Board of Directors 94 Profil Ahli Lembaga Pengarah Board of Directors ’ Profiles 105 Penyata Tadbir Urus Korporat Statement on Corporate Governance 130 Profil Jawatankuasa Syariah Shariah Committee’s Profiles 136 Penyata Tadbir Urus Syariah Statement on Shariah Governance 146 Profil Jawatankuasa Pengurusan Management Committee’s Profiles Imbas Kod QR dengan mengikuti langkah-langkah berikut: Scan the QR Code by following these simple steps: Muat Turun/Get it Muat turun Aplikasi Kod QR Reader daripada Google Play (Android Market), Blackberry AppWorld, App Store (iOS/iPhone) atau Windows Phone Store Download the “QR Code Reader” app from Google Play (Android Market), BlackBerry AppWorld, App Store (iOS/iPhone) or Windows Phone Store 157 Penyata Pengurusan Risiko Statement on Risk Management 167 Penyata Pematuhan Statement on Compliance 173 Penyata Kawalan Dalaman Statement on Internal Control Imbas/Run it Imbas Aplikasi Kod QR Reader dan halakan kamera di Kod QR 05 Run the QR Code Reader app and point your camera at the QR Code Penyata Kewangan 2018 2018 Financial Statements 178 Penyata Kewangan 2018 2018 Financial Statements Akses/Access it 06 Dapatkan akses Laporan Tahunan Agrobank 2018 secara atas talian Maklumat Tambahan Additional Information Get access to Agrobank Annual Report 2018 online 278 Maklumat Korporat Corporate Information 279 Status Korporat Corporate Status Soft copy version of AGROBANK Annual Report 2018
  11. SEIMBAS LALU AGROBANK AT A GLANCE 1969 2008 Ditubuhkan sebagai Bank Pertanian Malaysia (BPM) >> Established as Bank Pertanian Malaysia (BPM) • Dikorporatkan dan dikenali secara komersial sebagai Agrobank • Milik penuh Kementerian Kewangan (MOF) 2015 >> Menjadi Perbankan Islam sepenuhnya Became a Full-fledged Islamic Bank • Corporatised and commercially known as Agrobank • Wholly owned by Ministry of Finance (MOF) 08 AGROBANK MALAYSIA 182 10 990 Cawangan Branches/Kiosks Pusat Komersial Commercial Centres Ejen Perbankan AGROAgents 6 4 3 5 WILAYAH/REGION 6 Penang/Kedah/Perlis 24 Cawangan/Branches 1 Pusat Komersial/Commercial Centre 146 Ejen Perbankan/AGROAgents Mengenai Kami WILAYAH/REGION 3 Perak 01 About Us 26 Cawangan/Branches/Kiosks Prestasi Strategik Kami 02 Our Strategic Performance 3 Pusat Komersial/Commercial Centre Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information 2 114 Ejen Perbankan/AGROAgents WILAYAH/REGION 2 KL/Selangor/Negeri Sembilan WILAYAH/REGION 4 Kelantan/Terengganu 29 Cawangan/Branches/Kiosks 22 Cawangan/Branches 1 Pusat Komersial/Commercial Centre 1 Pusat Komersial/Commercial Centre 80 Ejen Perbankan/AGROAgents 189 Ejen Perbankan/AGROAgents WILAYAH/REGION 1 Melaka/Johor WILAYAH/REGION 5 Pahang 21 Cawangan/Branches/Kiosks 20 Cawangan/Branches 1 Pusat Komersial/Commercial Centre 1 Pusat Komersial/Commercial Centre 132 Ejen Perbankan/AGROAgents 91 Ejen Perbankan/AGROAgents 1
  12. Prinsip VBI Agrobank Prinsip bersepadu sebagai panduan kepada Agrobank bagi menghasilkan nilai yang positif dan kesan lestari untuk sektor dan komuniti pertanian Agrobank ’s VBI Principles Overarching principle on how Agrobank drives positive value and sustainable impact for the agriculture sector and its communities PEMBANGUNAN EKONOMI ECONOMIC DEVELOPMENT Mendorong pertumbuhan industri pertanian yang berdaya maju dengan memanfaatkan peranan Bank sebagai pengantara kredit dan pelaburan, untuk menyediakan penyelesaian kewangan yang disesuaikan kepada kumpulan pelanggan yang disasarkan termasuk peladang kecil-kecilan, orang asli dan usahawan wanita Supports viable growth of the agriculture industry through its role as a credit and investment intermediary by offering financial solutions tailored to its target group of customers including smallholder farmers, indigenous people and women agropreneurs PEMERKASAAN SOSIAL SOCIAL EMPOWERMENT Mempertingkatkan taraf sosial dengan memenuhi keperluan sosioekonomi bagi komuniti pertanian, dan mempertingkatkan taraf kehidupan golongan terbiar terutamanya komuniti luar bandar dan terpinggir, dengan menjalankan aktiviti tanggungjawab sosial korporat dan aktiviti sosioekonomi lain yang berkaitan Enrich social well-being by addressing the socio-economic needs of the agriculture community and uplift the lives of the marginalised community especially in rural communities through our brand of corporate social responsibility activities and socio-economic related activities KELESTARIAN ALAM SEKITAR ENVIRONMENTAL SUSTAINABILITY Menggalakkan penerapan amalan-amalan terbaik dalam aktiviti pertanian, yang bertujuan mencapai sasaran jaminan makanan, sambil memastikan keseimbangan dalam amalan-amalan pertanian mampan untuk menghasilkan makanan menerusi sistem pengeluaran yang selamat, bersih, dan cekap Promote best-practice agriculture activities that is geared towards achieving food security targets while balancing against sustainable agriculture practices to produce food in a safe, clean and efficient production system LAPORAN TAHUNAN 2018 ANNUAL REPORT 8 Agrobank di Seluruh Negara Komitmen berterusan bagi mengukuhkan kehadiran kami 71% cawangan Agrobank terletak di kawasan luar bandar demi memastikan komuniti pertanian dan golongan yang kurang mendapat liputan mempunyai akses perkhidmatan kewangan yang meluas. Our Nationwide Footprint Continuous commitment to strengthen geographical presence 7 71% of Agrobank’s branches are located in rural areas for marginalised and agriculture communities’ convenient accessibility. WILAYAH/REGION 7 Sarawak 21 Cawangan/Branches 1 Pusat Komersial/Commercial Centre 104 Ejen Perbankan/AGROAgents WILAYAH/REGION 8 Sabah 19 Cawangan/Branches 1 Pusat Komersial/Commercial Centre 134 Ejen Perbankan/AGROAgents 09
  13. 10 AGROBANK Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information LATAR BELAKANG OUR BACKGROUND
  14. Bank Pertanian Malaysia (BPM) ditubuhkan pada 1969 bagi membiayai projek pengairan untuk menampung penanaman padi dwimusim di Kedah dan Perlis, yang dikenali sebagai kawasan Lembaga Kemajuan Pertanian Muda (MADA). Dengan penubuhannya, BPM telah membuka dua buah cawangan, pertama di Alor Setar, Kedah pada April 1970 dan yang kedua di Kota Bharu, Kelantan. Menjelang 1980, BPM berjaya tampil sebagai penyedia perkhidmatan kredit yang terbesar kepada sektor pertanian luar bandar. Semenjak itu, Agrobank terlibat secara aktif mencatatkan pertumbuhan dan pembangunan industri pertanian di Malaysia dengan menawarkan produk dan solusi kewangan yang patuh syariah merentasi pelbagai segmen pelanggan termasuk pelanggan korporat, komersial, konsumer, pembiayaan perdagangan dan pembiayaan mikro. Hari ini, Agrobank merupakan sebuah institusi perbankan Islam sepenuhnya sejak 1 Julai 2015 dan juga peneraju utama dalam pembiayaan pertanian dan perbankan berasaskan nilai (VBI) di Malaysia. Sebagai sebuah Institusi Kewangan Pembangunan (IKP) yang berorientasikan pelanggan, fokus utama Agrobank adalah untuk mengukuhkan sektor pertanian. Justeru itu, Agrobank beriltizam untuk bergerak seimbang dalam melaksanakan peranan pembangunan dan komersialnya bagi memanfaatkan sektor pertanian. Agrobank menyediakan solusi pembiayaan yang menyeluruh untuk komuniti pertanian; merangkumi aktiviti huluan seperti bekalan input pengeluaran pertanian dan untuk aktiviti hiliran seperti pemprosesan, pemasaran dan jualan produk pertanian kepada pengguna. Agrobank juga menawarkan penyelesaian pembiayaan perbankan pengguna untuk meningkatkan taraf kehidupan komuniti pertanian. Ini dapat dilaksanakan menerusi kesemua 192 buah rangkaian untuk pelanggan Bank merangkumi 138 cawangan, 1 perbankan agro, 1 perbankan maya, 10 pusat pembiayaan komersial, 34 kiosk, 8 sudut & pusat agro. Bank Pertanian Malaysia (BPM) was established in 1969 to finance irrigation projects to accommodate double cropping for paddy planting in Kedah and Perlis, known as the Muda Agricultural Development Authority (MADA) area. Subsequent to its establishment, BPM opened two branches, the first in Alor Setar, Kedah in April 1970 and the second in Kota Bharu, Kelantan. By 1980, BPM had emerged as the largest credit service provider to the rural agriculture sector. Since then, Agrobank is actively involved in charting the growth and development of Malaysia’s agriculture industry by offering shariah compliant products and solutions across various customer segments including corporate, commercial, consumer, trade finance and micro financing customers. Today, Agrobank is a fullfledged Islamic bank since 1st July 2015 and the market leader in agriculture financing and valuebased intermediation banking (VBI) in Malaysia. As a market driven, customer-centric Development Financial institute (DFI) with a primary focus on strengthening the agriculture sector in Malaysia, Agrobank strikes an equal balance to its developmental and commercial roles to benefit the agriculture sector. Agrobank provides a comprehensive repertoire of financing solutions for the agriculture community; that includes upstream activities related to primary food and commoditiesbased agriculture activities to downstream activities such as processing, marketing and distribution of agricultural products. Agrobank also offers consumer banking and financing solutions to improve the well-being of the agriculture community. This is done through its network of 192 customer touch points including 138 branches, 1 agro banking, 1 virtual banking, 10 commercial financing centres, 34 kiosk, 8 agro corners & agro point. LAPORAN TAHUNAN 2018 ANNUAL REPORT 11
  15. PELAN KERJA STRATEGIK KAMI OUR STRATEGIC FRAMEWORK VISI VISION MISI MISSION 12 Untuk menjadi sebuah Bank yang menerajui bidang perbankan dengan fokus kepada pertanian To be a leading bank with a focus on agriculture Menyediakan perkhidmatan kewangan yang lengkap mengikut kehendak pasaran dan pelanggan , dengan kewangan yang mampan untuk kumpulan sasar tertentu: • Usahawan tani • Usahawan mikro, kecil dan sederhana • Individu persendirian To provide complete financial services according to market and consumer demand, in a financially sustainable way for specific target groups, such as: • Agropreneurs • Micro, small and medium entrepreneurs • Private individuals AGROBANK •Menggalakkan pembangunan pertanian Malaysia yang kukuh; To promote Malaysia’s sound agricultural development; OBJEKTIF OBJECTIVES Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information •Menyelaras dan menyelia penyaluran kredit daripada dana awam oleh individu ataupun syarikat, sama ada diperbadankan mahupun tidak, bagi tujuan pertanian; To co-ordinate and supervise the granting of credit from public funds for agricultural purposes by individuals or companies whether incorporated or unincorporated; •Menyediakan pembiayaan, pendahuluan dan kemudahan kredit demi pembangunan sektor pertanian dan perniagaan berkaitan pertanian; To provide financing, advances, and other credit facilities for the development of the agriculture sector and agriculturerelated businesses; •Menggembleng simpanan dengan tumpuan khusus pada sektor pertanian, serta menerima simpanan dan deposit berjangka bagi mencapai objektif ini; To mobilise savings with particular regard to the agricultural sector and, in furtherance of this objective, to accept savings and time deposits; •Meningkatkan kesejahteraan komuniti pertanian; dan To uplift the well-being of the agricultural community; and •Menjalankan perniagaan am institusi perkhidmatan kewangan yang moden dan progresif yang memenuhi keperluan kewangan pelanggan secara menyeluruh. To carry on the general business of a modern and progressive financial services institution catering for the total financial needs of its customers.
  16. NILAI TERAS DAN MATLAMAT KAMI OUR CORE VALUES AND GOALS NILAI TERAS CORE VALUES Profesionalisme Professionalism Sikap Positif Positive Attitude Kerja Berpasukan Teamwork • Perkhidmatan Berkualiti Quality Service • Berhemah   Prudent • Berorientasikan Perniagaan yang Mampan Oriented Towards Sustainable Business • Berfikiran Terbuka Open-Minded • Optimis Optimistic • Berdisiplin Disciplined • Bertanggungjawab Responsible • Bersatu United • Kerjasama Cooperative • Komited Committed HormatMenghormati Respect Integriti Integrity Komunikasi Terbuka Open Communication • Hormat Honour • Kesamarataan Equality • Kejujuran Honest • Amanah Trustworthy • Telus Transparent • Membina Constructive Menepati Masa Timeliness P A T R I O T LAPORAN TAHUNAN 2018 ANNUAL REPORT Fungsi perantara yang efektif Effective intermediary function Model operasi yang kukuh lagi mampan Sound and sustainable operating model PELAN PERNIAGAAN STRATEGIK (SBP) 5 TAHUN 2016-2020 5-YEARS STRATEGIC BUSINESS PLAN (SBP) 2016-2020 • Pelaksanaan yang Menepati Masa Timely Execution Organisasi berprestasi tinggi lagi mampan High performing and sustainable organisation Pengurusan dan keupayaan kewangan yang kukuh dan berhemah Sound and prudent financial management and capacity Pusat kecemerlangan dalam sektor pertanian Centre of excellence in agriculture sector Pembabitan berkesan bersama pihak berkepentingan Effective stakeholder management Memperluaskan fungsi perantaraan bagi memudahkan proses pemadanan dalam penyaluran dana Expanding the breadth and depth of the intermediary function to facilitate better matching of fund disbursement Membangunkan dan meningkatkan model operasi untuk penyampaian strategi secara berkesan dan cekap Build and scale up the operating model for effective and efficient strategy delivery Mewujudkan impak yang positif dan hasil perniagaan yang dapat diukur di peringkat individu, kumpulan dan oganisasi Create positive impact and measurable business results at the individual, team and organisational levels Ekosistem yang rancak bagi mencapai keseimbangan dalam aktiviti pengambilan risiko Vibrant ecosystem to achieve greater balance in risk-taking activities Memperkukuhkan kapasiti melalui kepimpinan, amalan terbaik dan sokongan penyelidikan dalam pertanian Strengthening capacity through leadership, best practices and research support in agriculture Mengurus jangkaan pihak-pihak yang mempunyai kepentingan dalam kejayaan Bank Managing expectations of parties that have an interest in the Bank’s success 13
  17. PENCAPAIAN PERANAN PEMBANGUNAN /DIMANDATKAN DEVELOPMENTAL AND MANDATED ACHIEVEMENTS Hasil Pembangunan | Development Outcomes Sumbangan pembiayaan kepada Usahawan Bumiputra Financing contribution to Bumiputera Entrepreneurs 14 AGROBANK Sumbangan pembiayaan kepada Perusahaan Mikro, Kecil & Sederhana (MSME) Financing contribution to Micro, Small & Medium Enterprises (MSMEs) Objektif Menyediakan penyelesaian pembiayaan yang bersesuaian untuk mengukuhkan kedudukan ekonomi Bumiputera Objective Provide suitable financing solutions to strengthen the Bumiputera’s economic position Tindakan Strategik • Meningkatkan jumlah program pembiayaan bagi menyokong inisiatif kerajaan untuk usahawan Bumiputera. • Mempertingkatkan usaha sama strategik dengan kementerian, agensi kerajaan dan organisasi berkaitan pertanian yang lain. Strategic Actions • Increase utilisation of financing Programme in support of government initiatives for Bumiputera entrepreneurs. • Intensify strategic collaboration with other ministries, government agencies and agriculture-related associations. Objektif Menyokong usahawan dan pertumbuhan perniagaan SME Objective Support SMEs entrepreneurs and businesses’ growth Tindakan Strategik • Mengembangkan rangkaian produk yang bersesuaian dengan keperluan perniagaan bagi pelanggan berpotensi dan pelanggan semasa. Strategic Actions • E xpand range of products made available to potential and current customers that suits their business needs. Pembiayaan Bumiputera Bumiputera Financing SASARAN TARGET PENCAPAIAN ACHIEVED 88.8% 89.3% Baki Pembiayaan Financing Balance SASARAN TARGET PENCAPAIAN ACHIEVED 3.9 bil RM4.1 bil RM Output Sektor yang Dimandatkan | Mandated Output Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Sumbangan kepada pembiayaan agromakanan dalam sistem perbankan Financing contribution to primary agrofood financing in banking system Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Sumbangan kepada pembiayaan bermandat Contribution to mandated financing Objektif Mempertingkatkan pembiayaan baharu bagi subsektor agromakanan utama, sejajar dengan inisiatif negara (Dasar Agromakanan Negara) Objective Intensify new financing to primary agro-food sub-sectors in-line with national initiatives (National Agrofood Policy) Tindakan Strategik • Memperoleh peluang perniagaan baharu dalam subsektor agromakanan terpilih seperti ternakan, buah-buahan dan sayur-sayuran, ikan, dan padi. • Mempertingkatkan kerjasama strategik dengan kementerian, agensi kerajaan dan organisasi berkaitan pertanian yang lain. Strategic Actions •A  cquire new business opportunities in selected agrofood sub-sectors such as livestock, fruits and vegetables, fisheries, and paddy. • Intensify strategic cooperation with other ministries, government agencies and agriculture-related associations. Objektif Mengekalkan fokus dalam peranan yang dimandatkan dan menubuhkan peluang perniagaan baharu yang mengoptimumkan skop aktiviti di bawah mandat kami Objective Sustain focus in mandated role and establish new business opportunities that optimises area under mandate Tindakan Strategik • Meningkatkan kehadiran kami di dalam subsektor asas tani yang merangkumi aktiviti makanan dan aktiviti bukan makanan. • Menyediakan rangkaian penyelesaian pembiayaan yang meluas sepanjang rantaian nilai pertanian. Strategic Actions • E nhance presence in agro-based sub-sector encompassing food and non-food activities. •P  rovide wide range of financing solutions throughout the agriculture value chain. Peratusan Pasaran Minimum Minimum Market Share SASARAN TARGET PENCAPAIAN ACHIEVED 25.4% 33.5% Peratusan Pasaran Minimum Minimum Market Share SASARAN TARGET PENCAPAIAN ACHIEVED 85.0% 89.7%
  18. Rangkuman kewangan financial accessibility Perkhidmatan nilai tambah value-added service Objektif Menyediakan perkhidmatan kewangan yang berpatutan di kawasan yang kurang mendapat perkhidmatan bank Objective Serve the underserved areas with affordable financial services Tindakan Strategik • Mengembangkan rangkaian Ejen Perbankan dan nilai perniagaan. Strategic Actions • Expansion of AGROAgent network and business value. Objektif Membantu usahawan tani mencapai matlamat keusahawanan mereka, dan mendukung mereka untuk membina perniagaan yang kukuh sehingga berjaya Objective Develop agropreneurs to achieve their entrepreneurial ideals and provide support to build strong and successful businesses Strategic Actions Tindakan Strategik •O  ffer advisory services to equip • Menawarkan khidmat nasihat untuk agroprenuers with the right membekalkan para usahawan knowledge, capacity building and tani dengan ilmu, keupayaan dan technical know-how to manage kemahiran teknikal yang berfaedah dan their business with confidence. tepat agar mereka dapat menguruskan perniagaan mereka dengan yakin. Objektif Memupuk ketersediaan kewangan usahawan tani Objective Foster the agropreneurs’ financial readiness Tindakan Strategik • Menyediakan pembiayaan kepada usahawan tani berpotensi dan telah dikenal pasti setelah tamat latihan Agropreneur Development Programme (ADP). Strategic Actions •P  rovide access for financing to potential agropreneurs following from the completion of ADP trainings. 300 SASARAN TARGET Ejen Perbankan baharu new AGROAgents 226 PENCAPAIAN ACHIEVED Ejen Perbankan baharu new AGROAgents 500 SASARAN TARGET peserta participants 610 PENCAPAIAN ACHIEVED peserta participants 30% SASARAN TARGET daripada jumlah peserta of the total participants 32.3% PENCAPAIAN ACHIEVED daripada jumlah peserta of the total participants Kekukuhan Organisasi | Organisational Soundness Nisbah Kewangan Financial Ratio Objektif Mencapai kemampanan kewangan Objective Achieve financial sustainability Tindakan Strategik • Mengekalkan kemantapan dan kemampanan model operasi bagi memastikan keberkesanan dan kecekapan penyampaian strategi. Strategic Actions • T o maintain sound and sustainable operating model for effective and efficient strategy delivery. SASARAN TARGET MOP : PBTZ : PENCAPAIAN ACHIEVED MOP : PBTZ : 3.7% RM199.8 GIFR : juta/million 250.0 RM juta/million 4.1% RM207.1 GIFR : juta/million 190.3 RM juta/million LAPORAN TAHUNAN 2018 ANNUAL REPORT 15
  19. RINGKASAN KEWANGAN LIMA TAHUN FIVE-YEAR FINANCIAL SUMMARY 2018 2017 2016 2015 2014 Keuntungan operasi /Operating profit 208.7 157.7 177.8 201.9 190.6 Keuntungan sebelum cukai dan zakat/Profit before tax and zakat 190.3 230.6 197.9 165.0 192.6 Tahun berakhir 31 Disember/Year ended 31 December KEUNTUNGAN (RM juta)/PROFITABILITY (RM million) DATA PENTING KEDUDUKAN KEWANGAN (RM juta)/ KEY FINANCIAL POSITION DATA (RM million) Jumlah aset/Total assets 16,244.9 15,208.4 13,937.6 12,292.7 12,007.8 Pembiayaan dan pendahuluan (bersih)/Financing and advances (net) 10,431.2 9,173.9 8,270.9 6,986.7 6,129.7 Jumlah liabiliti/Total liabilities 13,322.5 12,411.5 11,315.5 9,808.3 9,557.6 Deposit dan simpanan pelanggan/Deposits from customers 7,620.3 7,589.4 7,044.9 5,905.0 6,169.0 Deposit dan simpanan bank dan institusi kewangan lain/Deposit and placement of banks and other financial institutions 2,990.2 2,180.1 1,623.3 1,135.7 685.2 Modal berbayar/Paid-up capital 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 Ekuiti/Equity 2,922.4 2,796.9 2,622.0 2,484.4 2,450.2 Komitmen dan luar jangka/Commitments and contingencies 1,059.5 6,712.1 6,732.5 6,646.9 572.7 Pulangan atas ekuiti (sebelum cukai)/Return on equity (before tax) 6.5 8.2 7.5 6.6 7.9 Pulangan atas aset purata (sebelum cukai)/Return on average assets (before tax) 1.2 1.5 1.4 1.3 1.6 64.4 69.6 58.3 62.2 58.4 81.9 78.5 78.8 78.9 72.0 4.1 4.5 5.2 6.6 7.2 78.4 100.2 100.6 100.8 98.8   Nisbah modal teras/Core capital ratio 23.1 24.9 24.9 27.3 28.9   Nisbah modal berwajaran risiko/Risk-weighted capital ratio 26.5 29.0 29.4 32.5 34.3 NISBAH KEWANGAN (%)/FINANCIAL RATIOS (%) Nisbah Keuntungan/Profitability Ratios 16 AGROBANK Nisbah kos pendapatan/Cost to income ratio Nisbah Kualiti Aset/Asset Quality Ratios Nisbah pembiayaan kepada deposit/Financing to deposit ratio Nisbah pembiayaan terjejas kasar/Gross impaired financing ratio Perlindungan kerugian pembiayaan/Financing loss coverage Nisbah Kecukupan Modal/Capital Adequacy Ratios Sebelum menolak dividen yang dicadangkan/Before deducting proposed dividends Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Asas modal (RM juta)/Capital base (RM million) 3,294.2 3,265.8 3,104.7 2,964.8 2,873.6   Modal kumpulan 1 (RM juta)/Tier 1 capital (RM million) 2,880.1 2,810.2 2,630.4 2,486.8 2,417.7   Modal kumpulan 2 (RM juta)/Tier 2 capital (RM million) 414.1 455.6 474.3 478.0 455.9 3,430 3,454 3,381 3,102 3,347 Pembiayaan kasar bagi setiap kakitangan (RM juta)/Gross financing per employee (RM million) 3.1 2.8 2.6 2.4 2.0 Deposit bagi setiap kakitangan (RM juta)/Deposits per employee (RM million) 3.1 2.8 2.6 2.3 2.0 Keuntungan sebelum cukai bagi setiap kakitangan (RM juta)/ Profit before tax per employee (RM million) 0.1 0.1 0.1 0.1 0.1 NISBAH PRODUKTIVITI/PRODUCTIVITY RATIOS Bilangan kakitangan/No. of employees
  20. SOROTAN KEWANGAN FINANCIAL HIGHLIGHTS PEMBIAYAAN DAN PENDAHULUAN (BERSIH) FINANCING AND ADVANCES (NET) (RM JUTA/MILLION) 13.7% KEUNTUNGAN SEBELUM CUKAI DAN ZAKAT PROFIT BEFORE TAX AND ZAKAT (RM JUTA/MILLION) 230.6 10,431.2 8,270.9 6,129.7 ‘14 197.9 192.6 9,173.9 6,986.7 ‘15 ‘16 ‘17 ‘18 ‘14 4.5% 2,450.2 2,484.4 2,622.0 2,796.9 ‘15 ‘15 ‘16 ‘16 ‘18 NISBAH MODAL BERWAJARAN RISIKO RISK-WEIGHTED CAPITAL RATIO (%) ‘14 2.5% 29.0 ‘15 1.4 1.5 1.2 ‘16 ‘17 ‘18 PULANGAN ATAS EKUITI (SEBELUM CUKAI) RETURN ON EQUITY (BEFORE TAX) (%) 26.5 1.7% 8.2 7.9 7.5 6.6 ‘15 ‘16 ‘17 0.3% LAPORAN TAHUNAN 2018 ANNUAL REPORT 32.5 29.4 ‘14 ‘18 2,922.4 1.6 ‘17 ‘17 PULANGAN ATAS ASET PURATA (SEBELUM CUKAI) RETURN ON AVERAGE ASSETS (BEFORE TAX) (%) 1.3 34.3 190.3 165.0 EKUITI EQUITY (RM JUTA/MILLION) ‘14 17.5% ‘18 ‘14 ‘15 6.5 ‘16 ‘17 ‘18 17
  21. STRUKTUR ORGANISASI KAMI OUR ORGANISATIONAL STRUCTURE Lembaga Pengarah Board of Directors Presiden /Ketua Pegawai Eksekutif President/Chief Executive Officer Strategi Strategy Perniagaan Business Timbalan Ketua Pegawai Perniagaan (Perbankan Perniagaan) Deputy Chief Business Officer (Business Banking) 18 Pengurusan Operasi Operations Management Timbalan Ketua Pegawai Perniagaan (Perbankan Pengguna) Deputy Chief Business Officer (Consumer Banking) Timbalan Ketua Pegawai Operasi Deputy Chief Operations Officer AGROBANK Pemulihan & Perolehan Kredit Remedial & Recovery Perancangan Perniagaan & Pemantauan Prestasi Business Planning & Performance Monitoring Korporat Corporate Jualan Perbankan Pengguna Consumer Banking Sales Strategi Organisasi Organisational Strategy Pejabat Presiden/ Ketua Pegawai Eksekutif President/Chief Executive Officer Office Sokongan Produk & Operasi Products Support & Operations Pembayaran Payment Komersial Commercial Perbankan Transaksi & Perkhidmatan e-Pembayaran Transactional Banking & e-Payment Services Perancangan Korporat & Strategik Corporate & Strategic Planning Komunikasi Strategik Strategic Communications Teknologi Maklumat Information Technology Pengurusan Harta & Logistik Berpusat Central Property & Logistics Pembiayaan Perdagangan Trade Finance Sokongan Pejabat Tengah Middle Office Support Projek Khas FOS Special Project FOS Undangundang Legal Perbankan Digital Digital Banking Pengurusan Cawangan Branch Management Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Pembangunan Komuniti & Usahawan Agrobank dalam Pertanian Agrobank Community & Entrepreneur Development in Agriculture Penyelidikan & Pembangunan Produk Product Research & Development Pentadbiran Kredit Credit Administration
  22. Lembaga Jawatankuasa Pengurusan Risiko Board Risk Management Committee Kewangan Finance Sumber Manusia Human Resource Pengurusan Kredit Credit Management Pengurusan Risiko Risk Management Timbalan Ketua Pegawai Kewangan Deputy Chief Finance Officer Jawatankuasa Audit Lembaga Pengarah Board Audit Committee Pematuhan Compliance Jawatankuasa Syariah Shariah Committee Setiausaha Syarikat Company Secretary Audit Dalaman Internal Audit Timbalan Ketua Pegawai Pematuhan Deputy Chief Compliance Officer Perakaunan Accounting Teknologi & Perkhidmatan Sumber Manusia HR Technology & Services Kelulusan Kredit Credit Approval Pengurusan Risiko Kredit Credit Risk Management Pematuhan Kawal Selia Regulatory Compliance Audit Strategik Strategic Audit Pelaporan & Penelitian Reporting & Insights Keupayaan Sumber Manusia HR Capability Pembangunan Kredit Credit Development Pengurusan Risiko Operasi Operational Risk Management AML/CFT AML/CFT Audit Operasi Operations Audit Perolehan & Pengurusan Aset Procurement & Asset Management Pembelajaran & Pengurusan Modal Insan Learning & Talent Management Pengurusan Risiko Modal & Pasaran Capital & Market Risk Management Penyeliaan Kredit Credit Supervision Perbendaharaan Treasury Perhubungan Industri & Kakitangan Industrial & Employee Relations Pengurusan Penyelidikan Ekonomi & Industri Economic & Industry Research Management Pengurusan Kedudukan Kewangan Balance Sheet Management Rakan Kongsi Perniagaan Sumber Manusia HR Business Partner Penilaian & Semakan Kredit Credit Evaluation & Review Syariah Shariah Perkhidmatan Korporat Corporate Services Bahagian Division Jabatan Department LAPORAN TAHUNAN 2018 ANNUAL REPORT 19
  23. Fakta-fakta tentang Padi di Malaysia Beras adalah makanan ruji nombor 1 bagi negara . Dari segi jaminan makanan negara, padi adalah salah satu tanaman strategik negara. MADA adalah kawasan jelapang padi paling luas di Malaysia dan menghasilkan 1.246 juta mt padi, merangkumi 33.7% hasil pengeluaran padi nasional pada tahun 2017. Ciri-ciri suhu dan taburan hujan di Malaysia adalah sesuai untuk penanaman padi sepanjang tahun. Pada 2018, Malaysia mengimport 740,000 tan beras pada kos lebih kurang RM1.18 bilion. MOA sedang menumpukan fokus khusus pada pertumbuhan padi beras untuk mencapai 80% SSL menjelang 2020. Bendang-bendang padi di Kedah, Perlis dan Pulau Pinang mewakili punca rezeki bagi Malaysia. Dahulunya dianggap pekerjaan sara hidup tradisional yang intensif bagi buruh, ia telah berkembang sebagai operasi berjentera penuh untuk tujuan komersial, termasuk perusahaan berorientasikan eksport bagi produk-produk beras dan berasaskan beras. Pelaksanaan teknologi baharu dan amalan pertanian yang baik, seperti penanaman berganda, telah menggiatkan semula industri padi
  24. Pengeluaran Padi (tan) Paddy Production (tonnes) 2017 2016 2,739.6 3,692.0 Agrobank menawarkan skim pembiayaan tanpa cagaran kepada penanam padi untuk membiayai modal kerja bagi aktiviti penanaman padi, dan pembiayaan berjangka untuk mendapatkan peralatan moden bagi meningkatkan hasil sehektar dan memendekkan tempoh penuaian. Kawasan bertanam (000 hektar) Planted areas (000 hectares) The scenic paddy fields of Kedah, Perlis and Penang represent 2017 2016 the rice bowl of Malaysia. Once a traditional labour-intensive occupation for subsistence, it has transformed as fully mechanised operations for commercial purposes, including export oriented enterprise for rice and rice-based products. 688.8 730.1 The implementation of advanced technology and good agricultural practices, such as double cropping, has revitalised Malaysia’s paddy rice industry with higher planting intensity and improved yield. Increased income for rice farmers is Tahap Sara Diri (SSL) SELF-SUFFICIENCY Level (SSL) also being addressed with the introduction of the new crop management concept and development of high yielding varieties with good grain quality. 2017 2016 beras di Malaysia, melalui penanaman yang lebih intensif, dan pemerolehan hasil yang lebih baik. Pengenalan konsep pengurusan tanaman baharu dan pembangunan jenis beras berhasil tinggi dengan kualiti bijian yang tinggi turut membantu meningkatkan pendapatan penanam padi. 72.3% 70.3% Agrobank supports paddy farmers with uncollateralised financing schemes to finance working capital for paddy planting activities and term financing for acquisition of modern equipment to improve yield per hectare and reduce the harvesting period. Sumber: Jabatan Pertanian Source: Department of Agriculture
  25. FACTS IN Fakta-fakta tentang PadiON di PADDY Malaysia MALAYSIA Beras adalah makanan ruji nombor 1 bagi negara . • Rice is the number 1 staple food for the country. Dari segi jaminan makanan negara, padi adalah salah satu tanaman strategik negara. • Paddy is one the national strategic crops with regards to national food security. MADA adalah kawasan jelapang padi paling luas di Malaysia dan menghasilkan 1.246 juta mt padi, merangkumi 33.7% hasil pengeluaran padi nasional pada tahun 2017. • MADA is the largest paddy granary area, located in Perlis and diproduces 1.246 mil mt of paddy, Ciri-ciri suhu& danKedah taburan hujan Malaysia adalah sesuai untuk penanaman padi sepanjang tahun. which is 33.7% of national paddy production in 2017. Pada 2018, Malaysia mengimport 740,000 tan beras pada kos lebih • The temperature kurang RM1.18 bilion. regime and the rainfall distribution in Malaysia are suitable for year round cultivation of MOA sedang menumpukanrice. fokus khusus pada pertumbuhan padi beras untuk mencapai 80% SSL menjelang 2020. • Malaysia imported 740,000 tonnes of rice in 2018, which cost about RM1.18 billion. • The MOA is actively focused on growing the paddy rice to attain SSL of 80% by 2020. Bendang-bendang padi di Kedah, Perlis dan Pulau Pinang mewakili punca rezeki bagi Malaysia. Dahulunya dianggap pekerjaan sara hidup tradisional yang intensif bagi buruh, ia telah berkembang sebagai operasi berjentera penuh untuk tujuan komersial, termasuk perusahaan berorientasikan eksport bagi produk-produk beras dan berasaskan beras. Pelaksanaan teknologi baharu dan amalan pertanian yang baik, seperti penanaman berganda, telah menggiatkan semula industri padi
  26. Pengeluaran Padi (tan) Paddy Production (tonnes) 2017 2016 2,739.6 3,692.0 Kawasan bertanam (000 hektar) Planted areas (000 hectares) The scenic paddy fields of Kedah, Perlis and Penang represent 2017 2016 the rice bowl of Malaysia. Once a traditional labour-intensive occupation for subsistence, it has transformed as fully mechanised operations for commercial purposes, including export oriented enterprise for rice and rice-based products. 688.8 730.1 The implementation of advanced technology and good agricultural practices, such as double cropping, has revitalised Malaysia’s paddy rice industry with higher planting intensity and improved yield. Increased income for rice farmers is Tahap Sara Diri (SSL) SELF-SUFFICIENCY Level (SSL) also being addressed with the introduction of the new crop management concept and development of high yielding varieties with good grain quality. 2017 2016 72.3% 70.3% Agrobank supports paddy farmers with uncollateralised financing schemes to finance working capital for paddy planting activities and term financing for acquisition of modern equipment to improve yield per hectare and reduce the harvesting period. Sumber: Jabatan Pertanian Source: Department of Agriculture
  27. PERUTUSAN PENGERUSI CHAIRMAN ’S STATEMENT Dengan nama Allah, yang Maha Pemurah, lagi Maha Mengasihani In the name of Allah, the Most Beneficient, the Most Merciful Dear Stakeholders, Pihak Berkepentingan yang Dihormati, Bagi pihak Lembaga Pengarah, saya dengan sukacitanya ingin berkongsi prestasi kewangan dan perniagaan Agrobank bagi tahun kewangan berakhir 31 Disember 2018. 22 AGROBANK Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Sebagai institusi kewangan pembangunan (IKP) terkemuka di Malaysia yang menyediakan khidmat kewangan dan nasihat yang mematuhi Syariah, kami telah mempelopori pertumbuhan sektor pertanian selama hampir separuh abad lamanya. Status Agrobank sebagai institusi perbankan Islam sepenuhnya yang beroperasi berpandukan prinsip berasaskan nilai, memerlukan Bank menjalani transformasi yang berterusan untuk menghasilkan impak yang positif kepada kehidupan semua pihak yang berkaitan dengan kami. Usaha kami ini sejajar dengan konsep perantaraan berasaskan nilai (VBI) yang dikeluarkan oleh Bank Negara Malaysia (BNM). Prinsip VBI ini menjelaskan strategi-strategi yang boleh digunakan untuk mencapai matlamat Syariah yang disasarkan, melalui amalan, tatalaku dan penawaran yang membawa kepada impak yang positif dan berkekalan untuk ekonomi, komuniti dan alam sekitar. 4.7% PERTUMBUHAN KDNK MALAYSIA PADA TAHUN 2018 MALAYSIA’S GDP GROWTH IN 2018 7.8% SUMBANGAN KDNK PERTANIAN agriculture GDP contribution On behalf of the Board of Directors, it is my privilege to share the financial and business performance of Agrobank (the Bank) for the financial year ended 31 December 2018. We are Malaysia’s leading development financial institution (DFI) for agriculture with a strong history of close to half a century in catalysing the agriculture sector through shariah-compliant financial and business advisory support. As a renowned full-fledged Islamic bank operating on a value-based banking approach, Agrobank has been on a continuous journey of transformation with the objective of making a positive impact on the lives of those we touch. What we do mirrors the value-based intermediation (VBI) concept advocated by Bank Negara Malaysia (BNM). The VBI articulates strategies to deliver the intended outcomes of Shariah through practices, conduct and offerings that generate positive and sustainable impact to the economy, community and environment. GROW OUR IMPACT ACROSS THE VALUE CHAIN
  28. Bagi tahun ini , kami telah mempertingkatkan usaha untuk memajukan dan memantapkan para pemain dalam ekosistem pertanian, sekaligus memastikan harapan pihak berkepentingan kami dipenuhi. For the year in review, we continued to make great strides in guiding and supporting the agriculture eco-system players while delivering on our stakeholders’ expectations. LAPORAN TAHUNAN 2018 ANNUAL REPORT TAN SRI MOHAMAD ZABIDI ZAINAL Pengerusi, Ahli Lembaga Pengarah Chairman, Board of Directors ING 23
  29. PERUTUSAN PENGERUSI CHAIRMAN ’S STATEMENT 24 AGROBANK Bagi tahun ini, kami telah mempertingkatkan usaha untuk memajukan dan memantapkan para pemain dalam ekosistem pertanian, sekaligus memastikan harapan pihak berkepentingan kami dipenuhi. Tema laporan tahunan kami bagi tahun 2018 iaitu ‘Perbankan Berimpak Sepanjang Rantaian Nilai’ menggambarkan impak yang dibawa oleh Agrobank dalam pelbagai aspek ekosistem pertanian dan komunitinya. MENGIMBAS KEMBALI TAHUN 2018: LANDSKAP EKONOMI DAN SEKTOR PERTANIAN Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Tahun 2018 merupakan tahun yang mencabar dengan keadaan ekonomi yang merudum disebabkan ketegangan perdagangan antara China dan Amerika Syarikat, pengetatan dasar kewangan, harga komoditi yang tidak menentu, di samping ketidaktentuan geopolitik sekeliling. Ketegangan perdagangan antara China dan Amerika Syarikat menyaksikan pertumbuhan ekonomi China menurun kepada 6.6% pada tahun 2018, iaitu tahap terendah sepanjang 28 tahun lepas. Akibatnya, prestasi eksport bagi negara-negara Asia yang bergantung pada perdagangan tersebut turut terjejas. Berlatarbelakangkan senario ini, pertumbuhan ekonomi Malaysia pada tahun 2018 menyusut kepada 4.7%, berbanding 5.9% pada tahun 2017. Pertumbuhan keseluruhan bagi keluaran dalam negara kasar (KDNK) turut menyusut berikutan penurunan dalam pertumbuhan eksport, terutamanya disebabkan oleh pengetatan perbelanjaan awam. Pertumbuhan KDNK pada tahun ini dicatatkan pada 8.1%, didorong oleh pengembangan sektor penggunaan swasta. RM190.3 juta/million KEUNTUNGAN SEBELUM CUKAI DAN ZAKAT (PBZT) PROFIT BEFORE TAX AND ZAKAT (PBZT) 5.6% PERTUMBUHAN SEKTOR PERBANKAN Banking Sector growth For the year in review, we continued to make great strides in guiding and supporting the agriculture eco-system players while delivering on our stakeholders’ expectations. Our theme for the 2018 annual report, which is ‘Impact Banking Along the Value Chain’, reflects the influence of Agrobank’s support within the various aspects of the agriculture eco-system and its community. LOOKING BACK AT 2018: ECONOMIC LANDSCAPE AND AGRICULTURE SECTOR The year 2018 proved to be challenging as global economic growth decelerated amid increasing China-US trade tensions, tightening monetary policies, volatile commodity prices and geopolitical uncertainties. As China’s growth eased to the lowest in 28 years to 6.6% in 2018 due to the impact of trade disputes, trade-dependent Asian countries saw their export performances deteriorate as well. Against this environment, Malaysia’s economy moderated to 4.7% in 2018, from 5.9% in 2017. Subdued export growth amid tight public expenditure weighed on overall gross domestic product (GDP) growth. GDP growth in 2018 was driven by private consumption which grew at 8.1% while public investment declined by 5.2% due to reprioritisation of public projects as well as managing escalated government debt.
  30. Sementara itu , pelaburan awam menurun sebanyak 5.2% berikutan penyusunan semula projek-projek awam, dan pengurusan hutang kerajaan yang meningkat. Pada tahun 2018, sektor perbankan menunjukkan prestasi yang baik, dengan pertumbuhan tahun ke tahun sebanyak 5.6%. Kualiti aset kekal teguh, dengan nisbah kemerosotan kasar yang lebih rendah pada tahun 2018, iaitu 1.45% berbanding 1.55% pada tahun 2017. Kesemua ini menggambarkan keberkesanan dalam usaha berterusan oleh sektor perbankan untuk mempertingkatkan inisiatif pematuhan dan pengurusan risikonya. Walaubagaimanapun, persaingan antara semua bank kekal sengit dalam usaha mereka untuk mendapatkan lebih banyak deposit dan margin yang lebih besar. Tahun 2018 menyaksikan pertumbuhan sektor pertanian menurun sebanyak 0.4% berbanding pertumbuhan kukuh sebanyak 7.2% pada tahun sebelumnya. Penurunan ini sebahagiannya disebabkan oleh pengeluaran kelapa sawit yang menurun, eksport minyak kelapa sawit mentah (CPO) yang lebih rendah, harga komoditi yang tidak menentu, dan pertumbuhan sederhana dalam subsektor agromakanan. Sumbangan sektor pertanian kepada KDNK turut menurun kepada 7.8% pada tahun 2018, berbanding 8.2% pada tahun 2017. Meskipun sumbangan sektor pertanian kepada KDNK adalah agak kecil, sektor ini tetap penting untuk membantu mencapai kadar jaminan makanan negara di Malaysia, di samping mempertingkatkan taraf hidup komuniti luar bandar dan terpinggir. MEMBAWAKAN IMPAK POSITIF DALAM EKOSISTEM DEMI PERTUMBUHAN YANG MAMPAN Di sebalik situasi yang mencabar ini, saya dengan ini ingin melaporkan bahawa Bank telah mencatatkan prestasi kewangan yang menggalakkan bagi tahun 2018. Kami telah mencatatkan keuntungan sebelum cukai dan zakat (PBTZ) sebanyak RM190.3 juta, didorong oleh pertumbuhan dalam segmen perniagaan utama kami yang merangkumi perbankan perniagaan dan konsumer. Pelaksanaan strategistrategi untuk mengembangkan perniagaan kami di bawah Pelan Perniagaan Strategik (SBP) 2016-2020 juga berjalan dengan lancar, dan menepati jangkaan yang telah ditetapkan. Pengawasan dan bimbingan mantap oleh Lembaga Pengarah merupakan asbab pencapaian prestasi kami pada tahun ini, terutamanya dalam menyampaikan nilai mampan kepada pihak berkepentingan, sambil terus memastikan kemantapan pematuhan dan pengurusan risiko yang berkesan. Di Agrobank, kami bertekad untuk mengukuhkan kebolehcapaian dan keterangkuman kewangan bagi komuniti pertanian, yang kebanyakannya terdapat di kawasan luar bandar. At Agrobank, we are strongly committed to building financial accessibility and inclusivity within the agriculture community which is predominantly in the rural areas. The banking sector performed well in 2018, charting a 5.6% year-on-year growth. Asset quality remained strong with a lower gross impairment ratio at 1.45% in 2018, compared to 1.55% in 2017. These point to the continuous enhancement efforts by the banking sector to improve its compliance and risk management initiatives. Having said that, competition continue to remain robust as all banks fight for higher deposits and increased margins. The agriculture sector contracted marginally by 0.4% in 2018, after a strong growth of 7.2% in the previous year. This contraction was partly due to lower palm oil production, weaker crude palm oil (CPO) exports, as well as turbulent commodity prices against moderated growth in the agro-food subsector. The agriculture sector’s contribution to GDP decreased to 7.8% in 2018, from 8.2% in 2017. While this sector’s contribution to GDP may be relatively small, the sector remains crucial to Malaysia in achieving national food security and uplifting the well-being of the rural community. MAKING A POSITIVE IMPACT ON ECO-SYSTEM FOR SUSTAINABLE GROWTH THE Given this challenging background, the Bank charted a commendable financial performance for the year in review. We posted profit before tax and zakat (PBTZ) of RM190.3 million, driven by growth in our top line business segments comprising Business and Consumer banking. We are on track to grow our business as outlined in our Strategic Business Plan 20162020, executing our strategies as expected. LAPORAN TAHUNAN 2018 ANNUAL REPORT 25
  31. PERUTUSAN PENGERUSI CHAIRMAN ’S STATEMENT Underscoring our performance for the year is the sound oversight and guidance given by the Board to ensure that we delivered sustainable value to our stakeholders, while upholding the tenets of sound compliance and risk management. At Agrobank, we are strongly committed to building financial accessibility and inclusivity within the agriculture community which is predominantly in the rural areas. We believe this will be a powerful catalyst for economic growth while empowering individuals and the community to better their lives. 26 In discharging our mandated role in developing the agriculture sector as an engine of growth and in ensuring its sustainability, we looked to strengthen our presence and support in the value chain of the agriculture eco-system. We worked to ensure that our financing solutions encompass the broad spectrum of the requirements of the agriculture value chain. This includes upstream and downstream activities from input supply chain, agriculture production, trading and logistics, wholesale, processing and manufacturing, right up to marketing and distribution. Di Agrobank, kami bertekad untuk mengukuhkan kebolehcapaian dan keterangkuman kewangan bagi komuniti pertanian, yang kebanyakannya terdapat di kawasan luar bandar. Kami yakin bahawa usaha ini akan mendorong pertumbuhan ekonomi sambil mempertingkatkan kehidupan individu dan komuniti. AGROBANK Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Dalam melaksanakan tanggungjawab kami untuk membangunkan sektor pertanian sebagai enjin pertumbuhan yang mantap serta memastikan kemampanannya, usaha telah dijalankan untuk terus memperkukuhkan kehadiran dan sokongan kami di sepanjang rantaian nilai ekosistem pertanian. Kami berusaha untuk memastikan penyelesaian pembiayaan yang kami sediakan merangkumi spektrum yang meluas bagi memenuhi keperluan seluruh rantaian nilai pertanian. Ini termasuklah semua aktiviti huluan dan aktiviti hiliran yang terdiri daripada pembekalan input, pengeluaran pertanian, perdagangan dan logistik, pemborongan, pemprosesan dan pengilangan, serta pemasaran dan pengagihan. Pada tahun ini, kami telah memperkenalkan beberapa program pembiayaan baharu sambil memperkukuhkan program yang sedia ada, bagi memenuhi keperluan pelanggan kami yang dinamik. Untuk menggalakkan lagi pertumbuhan dalam sektor pertanian, kami telah meluaskan capaian perantaraan kami menerusi lima program baharu pada tahun 2018. Ini merangkumi program pembiayaan berkelompok untuk penanam cili di Kuching, Sarawak; pembiayaan bagi industri menanam dan menoreh pokok getah; pembiayaan untuk inisiatif gestasi ternakan tempoh pendek ke tempoh sederhana; pembiayaan mikro bagi usahawan wanita; di samping program pembiayaan rumah untuk golongan berpendapatan rendah. Untuk menggalakkan lagi pertumbuhan dalam sektor pertanian, kami telah meluaskan capaian perantaraan kami menerusi lima program baharu pada tahun 2018. We expanded our intermediary reach in 2018 with five new programmes that facilitated the growth of the agriculture sector further. For the year in review, we introduced new financing programmes and strengthened existing ones to better cater to the alwaysevolving requirements of our customers. We expanded our intermediary reach in 2018 with five new programmes that facilitated the growth of the agriculture sector further. They include group financing programmes for chilli farmers in Kuching, Sarawak; extension of financing for the rubber planting and harvesting industry; financing for short-tomedium gestation livestock initiatives; microfinancing for groups of women entrepreneurs; as well as home financing programme for low income earners. We also continued our strong support for the agropreneur community to facilitate their development in this industry, as they represent the pipeline of young market participants who will be poised to take the country’s agriculture and food industry further. Under our Centre of Excellence (COE) framework, we offer end-to-end business and financial advisory programmes such as the Agropreneur Development Programme (ADP). Through the ADP, we work closely with the agropreneurs to equip them with knowledge and skills to run their agri-related businesses more productively and efficiently.
  32. Usaha turut diteruskan bagi menyokong pembangunan usahawan tani dalam industri ini , memandangkan mereka membentuk generasi masa hadapan yang diharapkan untuk mempertingkatkan lagi industri pertanian dan makanan di negara ini. Di bawah rangka kerja Pusat Kecemerlangan (COE) kami, kami menawarkan program khidmat nasihat perniagaan dan kewangan yang lengkap seperti Program Pembangunan Agropreneur (ADP). Program ini bertujuan untuk melengkapkan mereka dengan pengetahuan dan kemahiran teknikal yang diperlukan agar mereka boleh menjalankan perniagaan mereka secara lebih produktif, dan lebih cekap. Dengan itu, kami berbangga untuk mengiktiraf pencapaian lapan individu yang telah memanfaatkan pembelajaran mereka dalam menjayakan perniagaan mereka, di Anugerah Agroprenuer Agrobank (3A) 2018. Para pemenang dipilih atas ciriciri kepimpinan, kepintaran merancang perniagaan, kemampuan membangunkan dan melaksanakan proses perniagaan yang mantap, di samping menunjukkan pengurusan dan pertumbuhan pelanggan yang baik. Anugerah Agropreneur Cemerlang Agrobank bagi tahun 2018 telah dimenangi oleh Jaffri Ahmad dan Mazlina Kamarudin dari Bismi Cergas Sdn. Bhd., atas kejayaan mengembangkan perniagaan daging ayam kecil-kecilan mereka sehingga menjadi pembekal daging ayam terbesar di Utara Malaysia. Bagi mendorong pertumbuhan dalam segmen-segmen sektor pertanian yang berlainan, usaha sama telah dijalankan dengan agensi-agensi di bawah Kementerian Pertanian dan Industri Asas Tani (MOA) Malaysia, dan Kementerian Pembangunan Usahawan (MED), Agensi Kaunseling dan Pengurusan Kredit (AKPK), Institut Penyelidikan dan Kemajuan Pertanian Malaysia (MARDI), Lembaga Pemasaran Pertanian Persekutuan (FAMA), serta institusi-institusi pendidikan lain. Bank juga telah bekerjasama dengan Lembaga Pembangunan Koridor Wilayah (RECODA) untuk menyokong agenda kerajaan negeri Sarawak dalam transformasi pembangunan luar bandar melalui kegiatan pertanian secara dinamik dan komersial. Semasa acara Sarawak Agrofest 2018, kami telah menandatangani Memorandum Persefahaman (MoU) bersama RECODA untuk menyediakan pembiayaan bagi para pelabur dan petani di bawah kawasan Koridor Tenaga Boleh Diperbaharui Sarawak (SCORE). Selain memastikan kami menyediakan penyelesaian kewangan yang sesuai bagi memenuhi keperluan perniagaan komuniti pertanian, kami komited untuk terus memperkasakan individu-individu ini dengan mempertingkatkan taraf hidup mereka menerusi produk kewangan dan khidmat nasihat kami yang meliputi aspek pembiayaan, ar-rahnu dan takaful. Melalui hubungan yang terbina bersama pelanggan individu yang berpuas hati dengan kemudahan dan khidmat perbankan kami, mereka dengan sendirinya akan menjadi pelanggan perbankan perniagaan kami. It is therefore with pride that we recognised eight outstanding achievers who embraced learnings to reach success in their agrobased businesses at our annual Agrobank Agropreneur Award (3A). The winners are acknowledged for their leadership skills, business planning acuity, ability to develop and implement sound business processes, as well as demonstrate good customer management and growth. Jaffri Ahmad and Mazlina Kamarudin of Bismi Cergas Sdn. Bhd. were named as Agrobank’s Excellent Agropreneur of the Year 2018, for growing their poultry business from humble beginnings to become the largest poultry supplier in northern Malaysia. To support growth in the different segments of the agriculture sector, we collaborated with partners such as agencies under the Ministry of Agriculture and Agro-based Industry (MOA) Malaysia and the Ministry of Entrepreneur Development (MED), Agensi Kaunseling dan Pengurusan Kredit (AKPK), Malaysia Agriculture Research and Development Institute (MARDI), Federal Agricultural Marketing Authority (FAMA), as well as education institutions. The Bank collaborated with the Regional Corridor Development Authority (RECODA) to support Sarawak state government’s agenda to transform rural development through dynamic and commercial agricultural activities. We signed a Memorandum of Understanding (MoU) during the Sarawak’s Agrofest 2018 to provide financing for investors and farmers in the Sarawak Corridor of Renewable Energy (SCORE) area. While we seek to equip our agriculture community with the right financial solutions for their businesses, we also empower individuals to uplift themselves through our financial and advisory services which include financing, ar-rahnu and takaful. As individual customers find satisfaction through our financing facilities and banking solutions, they inevitably grow the relationship organically to becoming our business banking customers. We also strengthened our reach and penetration to the unserved and underserved community through agent banking, and electronic banking centre which include Automated Teller Machines (ATM) and Cash Deposit Machines (CDM). For the year in review, we expanded reach to extremely rural locations such as Pulau Jambongan and Pulau Sebatik in Tawau, and Pulau Banggi in Kudat, Sabah through our agent banking outreach model; and set up ATMs and CDMs in Pekan Baru Botition near Beluran, Sabah to serve the local community. We also engaged with Usahawan Orang Asli under Jabatan Kemajuan Orang Asli (JAKOA) to provide greater access to basic financial solutions to these underserved communities. LAPORAN TAHUNAN 2018 ANNUAL REPORT 27
  33. PERUTUSAN PENGERUSI CHAIRMAN ’S STATEMENT Kami juga telah mengukuhkan lagi capaian dan jangkauan kami kepada komuniti yang tidak dan kurang mendapat perhatian, menerusi penempatan strategik ejen perbankan dan pusat perbankan elektronik seperti Mesin Juruwang Automatik (ATM) dan Mesin Deposit Tunai (CDM). Bagi tahun ini, kami telah menggunakan model capaian ejen perbankan kami untuk meluaskan jangkauan kami ke lokasi luar bandar seperti Pulau Jambongan dan Pulau Sebatik di Tawau, serta Pulau Banggi di Kudat, Sabah. Kami turut menyediakan ATM dan CDM di Pekan Baru Botition berhampiran Beluran, Sabah untuk menyediakan akses perkhidmatan kewangan kepada masyarakat tempatan di kawasan tersebut. Kami menjalankan kolaborasi bersama Usahawan Orang Asli di bawah Jabatan Kemajuan Orang Asli (JAKOA), bagi memastikan akses kewangan yang lebih menyeluruh untuk komuniti yang terpinggir. MELANGKAH KE TAHUN 2019 28 AGROBANK Pada tahun 2019, kami akan sentiasa berwaspada terhadap keadaan luaran yang kurang stabil seperti ketegangan perdagangan antara Amerika Syarikat dan China, pertumbuhan ekonomi China yang perlahan, ketidakpastian hasil daripada impak Brexit, harga minyak yang tidak menentu, selain faktor-faktor geopolitik yang boleh merencatkan pertumbuhan ekonomi global. Sebagai ekonomi terbuka, Malaysia pastinya akan terkesan daripada ketegangan perdagangan dan kelembapan pertumbuhan global ini. Walaubagaimanapun, kemungkinan besar terdapat manfaat hasil daripada ketegangan perdagangan ini, sekiranya ada pengalihan dan penempatan semula Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information THE PATH AHEAD FOR 2019 Melalui hubungan yang terbina bersama pelanggan individu yang berpuas hati dengan kemudahan dan khidmat perbankan kami, mereka dengan sendirinya akan menjadi pelanggan perbankan perniagaan kami. As individual customers find satisfaction through our financing facilities and banking solutions, they inevitably grow the relationship organically to becoming our business banking customers. We remain cautious on the uncertainties that will continue to underline the external environment in 2019. The United States of America (USA) and China trade tensions, slowdown in China’s economy, the uncertain impact of Brexit, volatile oil prices as well as geopolitical factors could dampen global growth. As an open economy, Malaysia will no doubt feel the sting of trade tensions and easing of global growth. Nevertheless, there could be silver linings to the trade war arising from trade diversion and investment relocation to Malaysia. Our country is expected to grow at a fairly stable pace of 4.5% to 4.9% in 2019, with private consumption as the main driver of growth, underpinned by stable labour market conditions and higher minimum wages. The agriculture sector is expected to expand by 2.0% to 3.0% in 2019, supported by growth in both commodities and agrofood subsectors. The agro-food subsector is expected to sustain growth at 3.0% to 4.0% in 2019 against a backdrop of a growing trend in food consumption. Food crops and livestock subsectors are expected to grow by 4.0% to 5.0% amid a modest gain in fishery output. The commodities segment is projected to recover with 2.0% to 3.0% growth in 2019 as palm oil production normalises.
  34. pelaburan di Malaysia . Pertumbuhan negara juga dijangka stabil pada 4.5% hingga 4.9% pada tahun 2019, dengan penggunaan swasta sebagai pemacu utama pertumbuhan, disokong oleh kestabilan dalam pasaran buruh, serta kenaikan dalam gaji minimum negara. Peningkatan pertumbuhan dalam sektor pertanian dijangkakan sebanyak 2.0% hingga 3.0% pada tahun 2019, didorong oleh pertumbuhan dalam subsektor komoditi dan agromakanan. Subsektor agromakanan dijangkakan meningkat sebanyak 3.0% hingga 4.0% memandangkan terdapatnya peningkatan dalam penggunaan makanan. Subsektor tanaman dan ternakan turut dijangka meningkat sebanyak 4.0% hingga 5.0%, di samping pertumbuhan sederhana dalam pengeluaran perikanan. Dalam pada itu, segmen komoditi dijangka pulih dengan pertumbuhan sebanyak 2.0% sehingga 3.0%, seiring dengan kestabilan pengeluaran kelapa sawit pada tahun hadapan. Kami didorong oleh pertumbuhan positif sektor pertanian yang dijangkakan pada tahun 2019. Peruntukan tambahan dalam bajet kerajaan bagi program pertanian dan pembangunan luar bandar, di samping penetapan hala tuju dasar yang lebih jelas bagi sektor pertanian, meyakinkan kami bahawa sentimen perniagaan akan bertambah baik, dan akan menjana lebih banyak permintaan untuk pembiayaan pertanian. PERUBAHAN DALAM LEMBAGA PENGARAH Saya ingin merakamkan penghargaan serta rasa terima kasih saya kepada ahliahli Lembaga Pengarah dan ahli Jawatankuasa Syariah Bank, atas sokongan dan khidmat nasihat mereka. Saya juga ingin mengambil kesempatan ini untuk menyampaikan penghargaan khas kepada YBhg. Datuk Seri Dr. Ismail Hj. Bakar, yang telah meletak jawatan sebagai Pengarah pada tahun ini, atas perkhidmatan berharga beliau sepanjang tahun-tahun yang lepas. Dalam pada itu, saya ingin mengalu-alukan kedatangan Encik Abdul Rahim Abd Hadi dan En. Jit Singh Santok Singh yang telah dilantik untuk menganggotai Lembaga Pengarah. Kami berharap untuk memanfaatkan pengalaman dan khidmat nasihat mereka dalam tahun-tahun yang akan datang. PENGHARGAAN Saya, bersama dengan Lembaga Pengarah juga ingin mengalu-alukan kemasukan Tuan Syed Alwi Mohamed Sultan sebagai Presiden dan Ketua Pegawai Eksekutif baharu bagi Agrobank, yang bersedia untuk memacu aspirasi Bank lebih jauh lagi. Penghargaan khas turut diberikan kepada Puan Masaat Awadz atas perkhidmatan dan sokongan yang beliau berikan sepanjang masa beliau menjawat jawatan Penanggung Tugas bagi jawatan Presiden dan Ketua Pegawai Eksekutif. Saya, dan seluruh Lembaga Pengarah turut berterima kasih kepada kakitangan Agrobank yang telah menjalankan peranan mereka dengan penuh dedikasi dan komitmen untuk memastikan perkhidmatan yang cemerlang bagi pelanggan kami. InsyaAllah, di bawah bimbingan pasukan pengurusan yang kukuh dan dedikasi seluruh kakitangan kami, saya percaya bahawa kami berada dalam kedudukan yang teguh untuk menghadapi apa jua cabaran yang akan datang, dan kami mampu menyampaikan hasil yang membanggakan kepada pihak berkepentingan kami. Lembaga Pengarah dan saya turut ingin merakamkan setinggi-tinggi penghargaan kepada semua pelanggan dan pihak berkepentingan kami. Terima kasih juga diucapkan kepada Kementerian Pertanian dan Industri Asas Tani (MOA), Kementerian Kewangan (MOF) dan Bank Negara Malaysia (BNM) atas sokongan, bimbingan dan keyakinan berterusan yang diberikan kepada kami. Terima kasih. Wasalam. Tan Sri Mohamad Zabidi Zainal Pengerusi Ahli Lembaga Pengarah Chairman, Board of Directors We are encouraged by the anticipated positive growth in the agriculture sector for the year ahead. Coupled with increased government budget commitment for agriculture and rural development programmes as well as greater clarity in policy direction for the sector, we are confident that business sentiments will improve and foster greater demand for agriculture financing. BOARD CHANGES I would like to express my gratitude to my fellow Board Directors for their strong support and strategic counsel. A special note of appreciation goes to YBhg. Datuk Seri Dr. Ismail Hj. Bakar, who stepped down from the Board, for his valuable service over the years. I also wish to extend a warm welcome to Encik Abdul Rahim Abd Hadi and Mr. Jit Singh Santok Singh who have been appointed to the Board. We look forward to leveraging from their wealth of experience and counsel in the years ahead. APPRECIATION The Board and I would also like to welcome Tuan Syed Alwi Mohamed Sultan as the new President and Chief Executive Officer of Agrobank who is set to take up the mantle to drive the aspirations of the Bank further. My heartfelt appreciation goes to Puan Masaat Awadz for the support given throughout her stint as the Covering President and Chief Executive Officer. The Board joins me in thanking the employees of Agrobank who performed their roles with dedication and commitment to uphold service excellence to our customers. With the guidance of a strong management team and the dedication of our employees, InsyaAllah, I believe that we are in a position of strength to face whatever challenges that may come our way and deliver admirable results to our stakeholders. The Board and I would also like to express our sincerest gratitude to all our customers and stakeholders. Our appreciation goes to the Ministry of Agriculture and Agro-based Industry (MOA), Minister of Finance (MOF) and Bank Negara Malaysia (BNM) for their on-going support, guidance and belief in us. Thank you. Wasalam. LAPORAN TAHUNAN 2018 ANNUAL REPORT 29
  35. PERBINCANGAN DAN ANALISIS PENGURUSAN MANAGEMENT DISCUSSION AND ANALYSIS 30 AGROBANK Dengan nama Allah , yang Maha Pemurah, yang Maha Mengasihani In the name of Allah, the Most Beneficient, the Most Merciful Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Pihak Berkepentingan yang Dihormati, Dear Stakeholders, Saya, dengan berbesar hati menyampaikan prestasi perniagaan dan kedudukan kewangan untuk Agrobank bagi tahun berakhir 31 Disember 2018. Bank terus menumpukan fokus pada keutamaan-keutamaan penting seperti yang digariskan dalam Pelan Perniagaan Strategik (SBP) 2016-2020. Kami kini berada dipertengahan tempoh pelaksanaan pelan lima tahun SBP kami, dan saya bersuka cita untuk mengatakan bahawa kami telah mencapai pelbagai kemajuan yang signifikan bagi mengukuhkan lagi prestasi perniagaan dan kedudukan kewangan kami. I am honoured to present to you the business and financial performance for Agrobank (the Bank) for the year ended 31 December 2018. The Bank continued its focus on the key priorities as outlined in our Strategic Business Plan (SBP) 2016-2020. We are currently in the middle of the five-year plan and I am heartened to note that we have achieved significant milestones towards strengthening our business and financial position.
  36. Sebagai Institusi Kewangan Pembangunan (IKP) Islam sepenuhnya, kami bertanggungjawab untuk mendorong pertumbuhan dan pembangunan bagi sektor pertanian Malaysia. Sehubungan dengan itu, kami bertekad untuk dimartabatkan sebagai pilihan utama pengguna dalam penyediaan produk kewangan dan perniagaan yang patuh Syariah, bagi komuniti pertanian. Bagi tahun ini, kami yakin bahawa kami telah mencapai lebih banyak kemajuan dan telah mengukuhkan penawaran kami kepada segmen ini melalui rangkaian produk dan servis kami yang pelbagai, di samping meluaskan jangkauan perkhidmatan Bank kepada pelanggan kami. Persekitaran industri di mana kami beroperasi sentiasa berubah dengan pantas. Untuk menepati jangkaan pelanggan yang sering berubah, sektor perbankan perlu menangani perubahan kawal selia serta evolusi era digital berikutan kemajuan dalam perkhidmatan perbankan alternatif. Kos pengurusan perniagaan yang lebih tinggi, serta persaingan sengit dalam pembiayaan juga harus ditangani. Faktor-faktor seperti ini perlu diperhatikan secara proaktif untuk memastikan kami bersedia menguruskan perubahan-perubahan yang akan datang. Bersandarkan pematuhan kukuh kepada SBP, Bank kini berada dalam kedudukan teguh untuk mencapai pertumbuhan yang positif dan mampan. Memandangkan sektor pertanian merupakan komponen utama dalam memastikan kemampanan makanan dan jaminan makanan bagi Malaysia, usaha perlu diambil untuk memantapkan generasi semasa dan masa depan yang terlibat dalam rantaian nilai industri pertanian, bagi memastikan pertumbuhan yang mampan dalam jangka masa panjang. Ini sejajar dengan konsep Perantaraan Berasaskan Nilai (VBI) yang diperkenalkan oleh Bank Negara Malaysia (BNM) untuk menjana impak yang positif dan berkekalan bagi ekonomi, komuniti dan alam sekitar. Di Agrobank, kami menerapkan pendekatan tersebut bagi industri pertanian dengan harapan untuk memacunya lebih jauh melalui penciptaan nilai. Semenjak penubuhannya 49 tahun yang lalu, nilai-nilai murni hubungan pelbagai generasi telah diterapkan dalam Bank bagi memastikan kemampanan berterusan dalam menyediakan perkhidmatan masa kini kepada pelanggan kami demi kebaikan mereka pada masa depan. Inilah yang menjadi fokus dalam penilaian operasi dan perniagaan kami, untuk memastikan kami terus menyokong dan memenuhi keperluan pelanggan yang dinamik serta mendorong pembangunan sektor pertanian. Kami bertanggungjawab untuk mendorong pertumbuhan dan pembangunan bagi sektor pertanian Malaysia. We have a clear mandate to chart the growth and development of Malaysia’s agriculture sector. Bersandarkan pematuhan kukuh kepada SBP, Bank kini berada dalam kedudukan teguh untuk mencapai pertumbuhan yang positif dan mampan. Through the sound adherence to the SBP, the Bank is in a strong position today to deliver positive and sustainable growth. As a full-fledged Islamic development financial institution (DFI), we have a clear mandate to chart the growth and development of Malaysia’s agriculture sector. To this end, we are resolute in our aim to be the foremost choice in providing relevant shariah-compliant financial and business solutions to the agriculture community. For the year in review, we believe that we have made further inroads towards strengthening our offerings to this segment as we expanded our breadth and depth of our products and offerings, as well as our reach to our customers. The environment in which we operate continues to evolve at a rapid pace. The banking sector is facing changes in the regulatory landscape with the advancements of alternative banking services and digitalisation to respond to customers’ expectations while contending with higher costs of doing business and heightened competition for funds. These are factors that we look at proactively to ensure that we equip ourselves to manage the changes on the horizon. Through the sound adherence to the SBP, the Bank is in a strong position today to deliver positive and sustainable growth. As the agriculture sector is a key component of Malaysia’s food sustainability and food security, it is even more imperative that we enable current and future generations who participate in the value chain of the agriculture industry to be well equipped for long-term sustainable growth. This is reflective of the Value-based Intermediation (VBI) concept that is advocated by Bank Negara Malaysia (BNM) towards generating a positive and sustainable impact to the economy, community and the environment. At Agrobank, we welcome this move for the industry to inculcate value-driven approach in driving the industry further as it lends weight to value creation. We have already adopted the values of intergenerational growth for on-going sustainability since our inception 49 years ago, serving our customers of today for the needs of tomorrow. This will continue to be the lens with which we assess our operations and business, to always be supportive and facilitative of their evolving needs and the development of the agriculture sector. LAPORAN TAHUNAN 2018 ANNUAL REPORT 31
  37. PERBINCANGAN DAN ANALISIS PENGURUSAN MANAGEMENT DISCUSSION AND ANALYSIS ULASAN EKONOMI , PERBANKAN DAN SEKTOR PERTANIAN BAGI TAHUN 2018 Prestasi perniagaan kami berkait rapat dengan keadaan pasaran sekeliling. Pada tahun 2018, pertumbuhan global telah menurun disebabkan ketegangan perdagangan antara Amerika Syarikat (AS) dan China, pengetatan dasar kewangan di AS dan ketegangan geopolitik, di samping pasaran mata wang yang tidak stabil serta harga minyak mentah yang tidak menentu. Ketegangan perdagangan ini telah menjejaskan sedikit sebanyak ekonomi dunia serta keyakinan pengguna, dan menyebabkan kejatuhan nilai eksport bagi negara-negara Asia yang bergantung pada perdagangan tersebut. 32 AGROBANK Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Dalam pada pasaran kewangan dilanda ketidaktentuan dan mata wang pasaran baharu yang menurun, dolar AS pula terus teguh kerana disokong oleh pelaburan dalam dolar yang dianggap lebih selamat. Pada tahun 2018, Malaysia mencatatkan aliran keluar dana asing berjumlah RM33.6 bilion, di mana RM21.9 bilion berpunca daripada pasaran bon, dan RM11.7 bilion berpunca daripada pasaran ekuiti. Faktor-faktor seperti lebihan akaun semasa Malaysia, rizab asing yang mencukupi, lebih fleksibiliti dalam dasar dan pasaran kewangan, kesemuanya menjadi asbab yang melindungi ekonomi Malaysia sepanjang tempoh yang tidak menentu ini. Kesan daripada persekitaran ekonomi global yang tidak stabil, keluaran dalam negara kasar (KDNK) bagi Malaysia menurun kepada 4.7% pada tahun 2018, berbanding 5.9% pada tahun lepas. Pertumbuhan ekonomi negara pada 2018 menjadi lebih sederhana disebabkan oleh faktor-faktor luaran yang telah menjejaskan prestasi eksport. Namun begitu, permintaan domestik kekal kukuh disokong oleh pertumbuhan sektor swasta sebanyak 7.1%. Sektor awan berbelanja dengan berhemat selaras dengan langkah-langkah untuk mengurangkan defisit fiskal. Harga purata minyak sebanyak AS$71.2 setiap tong pada tahun 2018 berbanding AS$54.0 setiap tong pada tahun 2017 memberi sedikit keuntungan dalam hasil pendapatan minyak mentah. Tahun 2018 menyaksikan pertumbuhan sektor pertanian menurun sebanyak 0.4% berbanding pertumbuhan kukuh sebanyak 7.2% pada tahun 2017. Penurunan ini sebahagiannya disebabkan oleh pengeluaran kelapa sawit yang menurun, eksport minyak kelapa sawit mentah (CPO) yang lebih rendah, harga komoditi yang tidak menentu, dan pertumbuhan sederhana dalam subsektor agromakanan. Dengan nilai pengeluaran berjumlah RM95.5 bilion pada tahun ini, sektor pertanian menyumbang sebanyak 7.8% kepada KDNK negara, berbanding 8.2% pada tahun 2017. Pada tahun 2018, segmen komoditi merangkumi 57.3% daripada KDNK pertanian, 2018 ECONOMIC, BANKING AND AGRICULTURE SECTOR REVIEW Kesan daripada persekitaran ekonomi global yang tidak stabil, keluaran dalam negara kasar (KDNK) bagi Malaysia menurun kepada 4.7% pada tahun 2018, berbanding 5.9% pada tahun lepas. Impacted by the global economic environment, Malaysia’s gross domestic product (GDP) moderated to 4.7% in 2018 from 5.9% in the previous year. Our business performance is intricately linked to how the markets around us fare. Global growth in 2018 slowed amid escalating United States of America (USA) and China trade tensions, the monetary tightening cycle in US and geopolitical tensions, as well as fluctuating currencies and volatile commodity crude oil prices. With USA-China trade dispute hurting consumer confidence and global economy, trade-dependent Asian countries saw their export performance deteriorate amid the on-going trade friction. Amid the global uncertainties, financial markets were volatile and emerging market currencies depreciated while the US dollar strengthened as investors sought safe haven in the dollar. In 2018, Malaysia recorded foreign fund outflows amounting to RM33.6 billion, where RM21.9 billion were from the bond market and RM11.7 billion from the equities market. Malaysia’s current account surplus, adequate foreign reserves, deep financial markets and policy flexibility have cushioned the economy during the outflows. Impacted by the global economic environment, Malaysia’s gross domestic product (GDP) moderated to 4.7% in 2018 from 5.9% in the previous year. The nation’s growth moderated in 2018 primarily due to external factors which dampened exports while domestic demand had remained resilient with support from private sector growth of 7.1%. Public expenditure has been prudent in line with measures to reduce the fiscal deficit. The higher oil price averaging at US$71.2 per barrel in 2018 compared to US$54.0 per barrel in 2017 provided some relief with additional oil-related revenue.
  38. sementara segmen agromakanan merangkumi sebanyak 42 .7%. Prestasi subsektor kelapa sawit menurun sebanyak 1.8% pada tahun 2018, dan menyumbang 45.9% kepada KDNK pertanian. Sektor agromakanan dalam KDNK telah meningkat, dengan pertumbuhan sebanyak 4.9% pada tahun 2018 berbanding 1.8% pada tahun sebelumnya. Pencapaian ini disokong oleh peningkatan menyeluruh dalam subsektor hasil tanaman (5.8%) dan ternakan (7.6%). Peningkatan dalam penggunaan makanan berikutan populasi yang semakin besar dan kenaikan sederhana dalam pendapatan, serta cuaca yang memadai, kesemuanya menyumbang kepada pertumbuhan stabil dalam sektor agromakanan. Seiring dengan peningkatan subsektor agromakanan pada kadar purata 4.1% setahun sepanjang lima tahun lepas, sumbangan subsektor ini kepada KDNK pertanian meningkat daripada 33.9% pada tahun 2010, kepada 42.7% pada tahun 2018. Kini, pertumbuhan subsektor agromakanan mengatasi pertumbuhan dalam subsektor komoditi yang lebih matang. Peratusan pasaran Agrobank dalam pembiayaan subsektor ini meningkat kepada 33.5% pada tahun 2018 berbanding 29.8% pada tahun 2017. Pada tahun 2018, pertumbuhan dalam pembiayaan pertanian mencatatkan penurunan tahun ke tahun yang lebih ketara, iaitu sebanyak 3.2%, berbanding penurunan tahun ke tahun sebanyak 0.2% pada tahun 2017. Bagaimanapun, peratusan pasaran Agrobank dalam pembiayaan pertanian meningkat kepada 15.1% pada tahun 2018, berbanding 13.7% pada tahun 2017. Di bawah segmen komoditi, pembiayaan tahun ke tahun bagi kelapa sawit menurun sebanyak 1.1% pada tahun 2018, berbanding pertumbuhan sebanyak 0.7% pada tahun sebelumnya. Pertumbuhan pembiayaan tahun ke tahun bagi hasil tanaman turut jatuh sebanyak 17.4% berbanding pertumbuhan sebanyak 3.3% pada tahun 2017. Pada tahun 2018, Agrobank berjaya meningkatkan peratusan pasaran dalam pembiayaan komoditi kepada 7.7% berbanding 7.3% pada tahun lepas. Sentimen di pasaran pula kekal suram disebabkan kejatuhan harga minyak kelapa sawit, permintaan eksport yang lemah, serta pertikaian perdagangan antara AS dan China yang masih berterusan. Pada tahun 2018, pertumbuhan tahun ke tahun bagi pembiayaan industri asas tani menurun sedikit kepada 9.4%, berbanding 9.5% pada tahun sebelumnya. Walaubagaimanapun, peratusan pasaran Agrobank dalam pembiayaan industri asas tani meningkat sebanyak 2.1% pada tahun 2018, berbanding 2.0% pada tahun 2017. The agriculture sector in Malaysia declined by 0.4% in 2018 compared to the strong growth charted in 2017 at 7.2%. The decline was partly attributed to lower palm oil production, weak crude palm oil (CPO) exports and volatile commodity prices amid moderate growth in agro-food sub-sector. With an output value worth RM95.5 billion, the agriculture sector’s contribution to GDP was 7.8% in 2018 compared to 8.2% in 2017. In Malaysia, the commodities segment represented 57.3% of primary agriculture while agro-food made up the balance 42.7% share in 2018 agriculture GDP. Performance of palm oil sub-sector, which declined by 1.8% in 2018, contributed 45.9% to agriculture GDP. The agro-food sector in GDP improved with a 4.9% growth in 2018 as compared to 1.8% in the previous year. This was supported by broad-based increases in food crops (5.8%) and livestock (7.6%) sub-sectors. The rise in food consumption driven by a growing population and modest increment in income amid moderate weather contributed to the steady growth in agro-food. The agro-food sub-sector had grown at an average of 4.1% per annum in the past five years, with its share to GDP rising from 33.9% in 2010 to 42.7% in 2018 as agro-food growth outpaced the maturing commodities sub-sector. Agrobank’s market share in the agro-food sub-sector financing increased to 33.5% in 2018 compared to 29.8% in 2017. On the financing front for primary agriculture, financing growth in the banking system recorded a larger decline of 3.2% year-on-year in 2018, from a slight decrease of 0.2% year-on-year in 2017. However, Agrobank’s market share for primary agriculture financing grew to 15.1% in 2018 compared to 13.7% in 2017. Under commodities, oil palm financing in the banking system dropped by 1.1% year-on-year in 2018 when compared to 0.7% growth in 2017, along with food crops which fell by 17.4% year-on-year compared to the 3.3% growth in 2017. Agrobank increased its market share slightly for commodities financing in 2018 at 7.7% compared to 7.3% in 2017. The decline in palm oil prices and weak export demand amid US-China trade war led to the decline in sentiments. Growth in agro-based financing in the banking system eased slightly from 9.5% year-on-year in 2017 to 9.4% year-on-year in 2018. Agrobank’s market share for agro-based financing which stood at 2.1% in 2018 compared to 2.0% in 2017. LAPORAN TAHUNAN 2018 ANNUAL REPORT 33
  39. PERBINCANGAN DAN ANALISIS PENGURUSAN MANAGEMENT DISCUSSION AND ANALYSIS 2018 FINANCIAL REVIEW Given the headwinds that marked the year in review , I am proud to say that Agrobank continues to demonstrate its resilience based on our solid fundamentals, sound strategy for sustainable growth, and good execution of our initiatives. The Bank recorded a solid performance on the back of its strong business operations for the year. ULASAN KEWANGAN TAHUN 2018 Di sebalik ketidakstabilan persekitaran dalam tahun 2018, saya dengan ini, ingin mengatakan bahawa Agrobank masih berdiri teguh bersandarkan pada asas-asas organisasi yang kukuh dan strategi kemampanan yang mantap, serta pelaksanaan inisiatif secara berkesan. Dengan itu, operasi perniagaan Agrobank berjaya mencatatkan prestasi yang menggalakkan pada tahun ini. 34 AGROBANK Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Saya dengan ini menyampaikan bahawa kami telah mengatasi nilai ambang RM1.0 bilion yang disasarkan dalam pertumbuhan pembiayaan Agrobank buat pertama kalinya dalam sejarah. Portfolio pembiayaan kami mencapai RM1.16 bilion, dengan baki sebanyak RM10.6 bilion bagi tahun 2018, iaitu peningkatan sebanyak 11.6% daripada tahun 2017. Jumlah pendapatan yang merangkumi pendapatan daripada pembiayaan, perkhidmatan berasaskan fi dan pendapatan pelaburan telah meningkat sebanyak 10.1% kepada RM936.6 juta, berbanding RM850.5 juta pada tahun 2017. Demikian, Keuntungan Operasi Boleh Tanggung (MOP) meningkat dengan ketara sebanyak 29.2% bagi tahun ini, selaras dengan prestasi operasi kami. Bagaimanapun, tahun ini menyaksikan prestasi keuntungan Agrobank telah terkesan oleh pelarasan yang telah dibuat berikutan penerapan Standard Laporan Kewangan Malaysia 9 (MFRS 9). Bank telah mencatatkan Keuntungan sebelum Cukai dan Zakat (PBTZ) sebanyak RM190.3 juta, berbanding RM230.6 juta pada tahun 2017. PBTZ yang lebih tinggi bagi tahun 2017 merangkumi item luar biasa seperti tuntutan pampasan yang telah dimasukkan semula berjumlah RM38.8 juta, dan pembayaran balik jurang pendapatan sebanyak RM30.1 juta, yang dijangka tidak akan berulang. Pada asas perbandingan tanpa pencatatan item luar biasa dari tahun 2017, PBTZ bagi tahun 2018 meningkat sebanyak 17.1% berbanding RM161.7 juta PBZT yang dicatatkan pada tahun 2017. Pada tahun ini, jumlah aset meningkat sebanyak 6.6% kepada RM16.2 bilion, daripada RM15.2 bilion pada tahun 2017, didorong terutamanya oleh peningkatan sebanyak 13.7% dalam pembiayaan dan pendahuluan bersih. Kekukuhan aset Agrobank mencerminkan usaha berterusan kami untuk memastikan penilaian yang berkesan, standard penajajaminan yang berhemat, dan pematuhan kepada rangka kerja pengurusan risiko bagi menguruskan portfolio pembiayaan kami yang semakin besar. Pada tahun 2018, nisbah pembiayaan terjejas kasar Bank menyusut kepada 4.1%, daripada 4.5% pada tahun lepas. Perbelanjaan overhed kekal stabil pada RM441.2 juta, berbanding RM439.9 juta pada tahun 2017. Meskipun kami mengekalkan pengurusan kos secara berhemat, pelaburan yang bersesuaian masih dijalankan bagi memastikan pertumbuhan yang mampan. Pada tahun 2018, nisbah kos ke pendapatan (CIR) Bank pada asas biasa tanpa pencatatan item luar biasa, menurun kepada 64.6% daripada 69.6% pada tahun 2017, didorong oleh kenaikan dalam hasil serta pengurusan kos secara berhemat. Bagi tahun ini, pulangan atas ekuiti (ROE) mencatatkan penurunan kecil sebanyak 6.5%. I am pleased to note that we exceeded the RM1.0 billion threshold mark in financing growth for the first time in our Bank’s history. Our financing portfolio reached RM1.16 billion, with a financing outstanding balance of RM10.6 billion for the year in review, which was an increase of 11.6% from 2017. Total income, which includes income from financing, fee-based services and investment income, grew by 10.1% to RM936.6 million in 2018 as compared to RM850.5 million in 2017. As a result, our Maintainable Operating Profit (MOP) which reflects our operational performance, grew by an impressive 29.2% for the year in review. However, our profitability performance for 2018 was impacted downwards due to adjustments arising from the adoption of the Malaysian Financial Reporting Standards 9 (MFRS 9). For the year in review, the Bank charted a Profit before Tax and Zakat (PBTZ) of RM190.3 million, compared to RM230.6 million in 2017. The higher PBTZ for 2017 included one-off extraordinary items which were write back of compensation claim amounting to RM38.8 million and reimbursement of gapping income of RM30.1 million which are not expected to be recurring items. On a normalised basis for comparison without the extraordinary items from 2017, our PBTZ for 2018 increased by 17.7% compared to RM161.7 million PBTZ recorded in 2017. Total assets for the year in review increased by 6.6% to RM16.2 billion from RM15.2 billion in 2017, primarily due to 13.7% increase in financing and net advances. Our asset quality remains healthy, and is a reflection of our vigilance towards sound assessment, prudent underwriting standards and adherence to our robust risk management framework despite the increase in our financing portfolio. The Bank’s gross impaired financing ratio reduced to 4.1% in 2018 from 4.5% in the previous year.
  40. Kesan daripada penerapan MFRS 9 pada tahun ini , ditambah dengan kenaikan kadar semalaman (OPR) pada Januari 2018, menjadi asbab kami menanggung kos kredit lebih tinggi yang memerlukan kami menguruskan peruntukan kerugian pembiayaan secara berhemat. Apa-apa pun, bersandarkan kualiti aset kami yang kukuh dan keuntungan yang berterusan, nisbah modal teras kami sebanyak 23.1% telah membantu memantapkan kedudukan modal kami agar kami dapat meneruskan pelaksanaan strategi kami. ULASAN PRESTASI MENURUT SEGMEN BAGI TAHUN 2018 Sepanjang tahun-tahun lepas, prestasi Bank telah membantu kami menjana pendanaan dalaman yang mencukupi. Nisbah portfolio pendanaan kami dikekalkan pada 87:13 antara dana-dana komersial janaan Bank, dan danadana konsesi daripada kerajaan. Bagi tahun ini, kami telah meningkatkan dana komersial janaan Bank kepada RM9.3 bilion daripada RM8.3 bilion pada tahun 2017. Meskipun terdapat persaingan hebat untuk mendapatkan deposit bagi menampung keperluan pertumbuhan dan pengetatan pematuhan kawal selia, kami telah mencatatkan pertumbuhan deposit yang baik dengan peningkatan sebanyak 8.2% kepada RM10.6 bilion, berbanding RM9.8 bilion pada tahun 2017. Pembiayaan dan pendahuluan kasar mencatatkan pertumbuhan kukuh sebanyak 11.6%, dan meningkat kepada RM10.6 bilion pada tahun 2018, daripada RM9.5 bilion pada tahun sebelumnya. Kami turut mengatasi sasaran kad skor kami untuk pembiayaan bagi tahun 2018, yang telah ditetapkan pada RM10.5 bilion . Peningkatan ini terutamanya didorong oleh perbankan komersial di bawah Perbankan Perniagaan, dan juga daripada Perbankan Pengguna. Sasaran kami diselaraskan dengan matlamat kerajaan untuk meningkatkan Tahap Sara Diri (SSL) bagi produk pertanian dan industri asas tani, di mana susu, padi, agromakanan, perikanan dan daging lembu membentuk fokus utama kami. Kami juga telah meluaskan jangkauan kami kepada pelanggan baharu melalui program pemerolehan, peluasan rangkaian, di samping program-program yang bertujuan untuk memenuhi keperluan pelanggan usahawan tani kami. Bank akan terus menumpukan fokus pada keutamaan strategik, berpandukan pelan SBP lima-tahun kami. Menerusi pelan ini, kami bermatlamat untuk memperkukuhkan kedudukan kami dengan meningkatkan sokongan kepada pihak berkepentingan dan pelanggan dalam sektor pertanian, di samping mempertingkatkan taraf hidup komuniti pertanian. Sasaran kami diselaraskan dengan matlamat kerajaan untuk meningkatkan Tahap Sara Diri (SSL) bagi produk pertanian dan industri asas tani, di mana susu, padi, agromakanan, perikanan dan daging lembu membentuk fokus utama kami. We set our target to be reflective of the government’s intention to increase the self-sufficiency levels of agriculture and agro-based products, with dairy milk, paddy, agrofood, fisheries and meat as the main focus. Overhead expenses remained relatively flat at RM441.2 million compared to RM439.9 million in 2017. As we strive to be prudent in our cost management, we are cognisant of the need to invest where necessary for sustainable growth. The Bank’s cost-to-income ratio (CIR) on a normalised basis without the extraordinary items recorded in 2017 reduced from 69.6% to 64.6% in 2018 due to increased revenue coupled with our disciplined approach to cost management. We recorded a slight decline on return on equity (ROE) of 6.5% for the year in review. Following from the first year adoption of the MFRS 9, and together with the hike in overnight policy rate (OPR) in January 2018, we contended with higher credit cost which required prudent treatment of financing loss provision. Nevertheless, coupled with our robust asset quality and sustained profits, our core capital ratio at 23.1% allowed us to maintain a resilient capital position to support the execution of our strategies. 2018 SEGMENTAL PERFORMANCE REVIEW Over the years, the Bank’s good performance has helped us to internally generate funding adequately. We maintained a funding portfolio ratio of 87:13 between our internally generated commercial funds and concessionary funds from the government. For the year in review, we increased our internally generated commercial funds to RM9.3 billion compared to RM8.3 billion in 2017. Market competition for deposits to support financing growth remained intense amid tighter compliance to regulatory requirements. Nevertheless, we charted good deposit growth with an increase of 8.2% to RM10.6 billion compared to RM9.8 billion in 2017. Across the Bank, total gross financing and advances expanded to RM10.6 billion in 2018 from RM9.5 billion in the previous year, registering a strong growth rate of 11.6%. We surpassed our internal scorecard target for financing in 2018 which was set for RM10.5 billion . The increase came mainly from commercial banking under the Business Banking arm and from Consumer Banking. We set our target to be reflective of the government’s intention to increase the selfsufficiency levels of agriculture and agro-based products, with dairy milk, paddy, agro-food, fisheries and meat as the main focus . We expanded our reach to new customers through acquisition programmes, network expansion as well as programmes directed to the needs of our agropreneur customers. LAPORAN TAHUNAN 2018 ANNUAL REPORT 35
  41. PERBINCANGAN DAN ANALISIS PENGURUSAN MANAGEMENT DISCUSSION AND ANALYSIS Perbankan Perniagaan Pada tahun 2018 , Perbankan Perniagaan yang merangkumi pembiayaan Korporat, Komersial dan Mikro telah diperkukuhkan lagi untuk memenuhi keperluan Perusahaan Kecil dan Sederhana (SME) berskala besar dan sederhana. Kami telah menyediakan platform yang berkesan untuk pembangunan dan inovasi produk dan perkhidmatan yang disediakan dan disesuaikan dengan tahap keusahawanan para pelanggan kami. 36 AGROBANK Kami mengukuhkan hubungan dengan pelanggan sedia ada melalui sokongan yang berterusan untuk memastikan pertumbuhan perniagaan mereka, sambil meluaskan jangkauan kami kepada pelanggan baharu. Tumpuan terhadap pelanggan telah dipertingkatkan untuk memastikan kami memenuhi jangkaan mereka dengan menyediakan pengalaman pelanggan yang baik, termasuk meningkatkan penggunaan perkhidmatan digital. Inisiatif dan kempen yang dijalankan bagi mempertingkatkan Perbankan Perniagaan kami telah mendapat sambutan yang baik. Usaha berterusan turut dijalankan untuk menangani cabaran-cabaran industri seiring dengan perteumbuhan sektor pertanian yang agak perlahan. Pada tahun ini, segmen Perbankan Perniagaan mencapai prestasi yang memberangsangkan, dan menyumbang 51.3% kepada jumlah portfolio pembiayaan keseluruhan Bank. Perbankan Perniagaan berjaya meningkatkan portfolio mereka kepada RM5.5 bilion, iaitu peningkatan sebanyak 7.7% daripada tahun 2017, didorong terutamanya oleh penumpuan lebih khusus pada pelanggan perniagaan SME. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information The Bank remained steadfast in its focus on the strategic priorities as outlined in the five-year SBP. Through this plan, we aim to strengthen our position further to provide facilitative support to our stakeholders and customers in the agriculture sector as well as to uplift the agriculture community. Business Banking Bank akan terus menumpukan fokus pada keutamaan strategik, berpandukan pelan SBP lima-tahun kami. The Bank remained steadfast in its focus on the strategic priorities as outlined in the five-year SBP. For the year in review, we strengthened the offerings under our Business Banking – which encompasses Corporate, Commercial and Microfinancing - to serve the large and medium-scale Small and Medium-sized Enterprises (SMEs). We achieved significant success in providing a sound platform for innovation in product and service offerings that is tailored towards facilitating agropreneurship. We focused on strengthening our relationship with existing customers and to support their business growth organically, while reaching out to new-to-bank customers. We worked diligently to be more customer-focused in order to deliver on their expectations for good customer experience, which included intensifying the use of digitalised services. We are encouraged by the good response to the initiatives and campaigns that we put in place to grow our Business Banking further, being mindful of the challenges faced in the industry, against a subdued agriculture sector growth.
  42. Business Banking delivered a commendable performance for the year . This segment contributed 51.3% to the Bank’s overall total portfolio. For the year in review, Business Banking grew its total portfolio to RM5.5 billion, an increase of 7.7% as compared to 2017, mainly because of its stronger focus towards the SME business customers. The Corporate Banking unit remains the key contributing driver to the Business Banking segment, increasing its financing income portfolio by 3.6% totalling RM2.7 billion. The Commercial Banking unit charted a portfolio growth of 12.6% amounting to RM2.5 billion, while the micro-financing grew 7.1% to RM 288.9 million for the year in review. Unit Perbankan Korporat kekal sebagai penyumbang utama dalam segmen Perbankan Perniagaan, dengan peningkatan portfolio sebanyak 3.6% yang berjumlah RM2.7 bilion. Sementara itu, unit Perbankan Pengguna mencatatkan pertumbuhan portfolio sebanyak 12.6% yang berjumlah RM2.5 bilion, dan pembiayaan mikro meningkat sebanyak 7.1% kepada RM288.9 juta pada tahun ini. Pada tahun 2018, unit-unit Perbankan Korporat dan Komersial di bawah Perbankan Perniagaan Agrobank telah memperluaskan jangkauan pembiayaan kami kepada para pemain dalam sektor pertanian yang menjalankan projek–projek inisiatif di bawah Rancangan Malaysia ke-11 (RM-11), Projek Penggerak Ekonomi (EPP), serta Dasar Agromakanan Negara (DAN), yang tertumpu pada subsektor pertanian yang mempunyai potensi pertumbuhan yang tinggi. Pembiayaan Mikro Sebagai perantaraan pembiayaan mikro terkemuka bagi sektor pertanian, Agrobank kekal komited untuk menerajui pembangunan produk baharu dan inovatif, untuk memenuhi pelbagai keperluan kewangan oleh perusahaan mikro yang terlibat dalam sektor pertanian dan industri asas tani. Segmen pembiayaan mikro Bank yang dikhususkan untuk SME, menawarkan kemudahan pembiayaan antara RM5,000 hingga RM50,000, yang telah dimanfaatkan oleh lebih daripada 31,836 perniagaan mikro dan kecil setakat ini. Pada tahun 2018, portfolio pembiayaan mikro mencatatkan pertumbuhan sebanyak RM19.0 juta, dengan baki pembiayaan sebanyak RM288.9 juta. Antara peristiwa penting pada tahun 2018 termasuk kerjasama dengan Kementerian Pertanian dan Industri Asas Tani (MOA), di mana Agrobank menyokong agenda pemerkasaan wanita yang dibawa oleh MOA, sejajar dengan pengiktirafan tahun 2018 sebagai Tahun Pemerkasaan Wanita. Usaha memperkasakan wanita disokong oleh kami sepenuhnya dengan menggalakkan lebih ramai wanita menjadi usahawan tani. Untuk meluaskan jangkauan kami kepada segmen ini, kami telah melancarkan Program Pembiayaan Mikro Agro Nisaa’-i, khusus untuk usahawan tani wanita pada November 2018. Produk ini disasarkan untuk golongan 40% terbawah dalam kumpulan pendapatan (B40), bagi menambah baik punca pencarian mereka, sejajar dengan objektif kami untuk mempertingkatkan taraf hidup komuniti luar bandar. Program Pembiayaan Mikro Agro Nisaa’-i Of note in 2018, the Corporate and Commercial Banking units under Business Banking intensified and expanded the financing reach to players in the sector that are aligned to initiative projects envisaged under the Malaysia 11th Plan (RMK-11), Entry Point Projects (EPP) and Dasar Agromakanan Negara (DAN) which focuses on potential high growth agriculture sub-sectors. Micro-financing Agrobank remained at the forefront in providing micro-finance for the agriculture sector, leading the way forward with new innovative products that exemplify our commitment to meet the diverse financial needs of micro enterprises involved in the agriculture and agro-based sector. The Bank’s micro-financing segment, which caters to SMEs, has a range of finances between RM5,000 to RM50,000 and has supported over 31,836 micro and small businesses. The micro-financing portfolio sustained growth in 2018 of RM19.0 million with financing balance of RM288.9 million. A special highlight for 2018 is our collaboration with the Ministry of Agriculture and Agro-based Industry’s (MOA) initiative to focus on women empowerment agenda for the year, in line with 2018 being recognised as Women Empowerment Year. As a firm supporter of women empowerment for socio-economic growth, we want to encourage more women to become agropreneurs. In reaching out to the strong potential yet unserved and underserved segment, we launched Agro Nisaa’-i Micro-Financing Programme specifically for women agropreneurs in November 2018. This product is targeted to those in the bottom 40% income group (B40) to help improve their livelihood, which is in line with one of our objective to elevate the rural community. Agro Nisaa’-i is a micro-financing facility dedicated to women entrepreneurs to help them venture into agriculture and agro-based businesses. Since its launch, the Bank has approved RM1.5 million worth of micro-financing to 250 women agropreneurs, signalling good interest in this programme. Apart from funding, this micro-financing facility also provides the women participating in the programme with a one-year personal accident Takaful protection plan, as well as guidance and advisory support to these entrepreneurs on financial management and expenditure. We are committed to ensure that our entrepreneurs are not just equipped with the adequate financing needed for their business but also the right knowledge to manage the business well. LAPORAN TAHUNAN 2018 ANNUAL REPORT 37
  43. PERBINCANGAN DAN ANALISIS PENGURUSAN MANAGEMENT DISCUSSION AND ANALYSIS disediakan khas untuk membantu usahawan tani wanita memulakan perniagaan pertanian dan industri asas tani mereka . Semenjak dilancarkan, program ini telah menerima sambutan yang baik dan Bank telah meluluskan RM1.5 juta dalam pembiayaan mikro kepada 250 usahawan tani wanita setakat tahun 2018. Selain menyediakan kemudahan pembiayaan, program ini turut menyediakan pelan perlindungan Takaful untuk kemalangan diri selama satu tahun bagi setiap peserta program, di samping khidmat bimbingan dan nasihat tentang pengurusan kewangan dan perbelanjaan. Kami bertekad untuk memastikan para usahawan dibekalkan dengan keperluan pembiayaan yang diperlukan untuk perniagaan mereka, selain pemahaman yang betul dalam menguruskan perniagaan mereka dengan baik. 38 AGROBANK Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Untuk terus mendorong pertumbuhan ekonomi segmen B40, program pembiayaan mikro AgroTERAS diwujudkan bagi menyediakan pembiayaan menurut fasa, bermula dengan pembiayaan sebanyak RM1,000 yang dinaikkan secara berperingkat sehingga RM30,000 mengikut kemampuan dan rekod pemohon. Semenjak dilancarkan di negeri Sarawak pada tahun 2017, program pembiayaan mikro AgroTERAS ini telah diperluaskan ke Sabah, Kedah, Kelantan dan Negeri Sembilan. Program ini terus menerima sambutan yang baik pada tahun 2018, dan Agrobank telah mencatatkan pendaftaran sebanyak 1,735 usahawan tani, yang mana 91.4% terdiri daripada golongan Perbankan Pengguna terus mencapai kemajuan dalam mengukuhkan dan meluaskan jangkauan penawaran kami kepada segmen pengguna. We continued to make inroads with our Consumer Banking division, strengthening our focus on expanding the reach of our offerings to the retail segment. To support the B40 segment, our Agro Teras micro-financing programme provides funding in phases starting with financing of RM1,000 and gradually increases up to RM30,000 based on the applicant’s affordability and records. Sarawak was the first state where we introduced Agro Teras in 2017, and today, this micro-financing facility has been expanded to Sabah, Kedah, Kelantan and Negeri Sembilan. For 2018, we have seen the continuing support for this programme, with a total of 1,735 agropreneurs registered, of which 91.4% are women from rural areas including Sabah and Sarawak. The Bank has approved financing of Agro Teras amounting to RM8.6 million for 2018. With targeted financing such as this, Agrobank not only supports new and expanding micro businesses but also encourages further involvement of women in agriculture and agro-based industry. Consumer Banking We continued to make inroads with our Consumer Banking division, strengthening our focus on expanding the reach of our offerings to the consumer segment. For the year in review, our core retail offerings which include AgroCash-i (personal financing), Hartani-i (land purchase financing), Ar-Rahnu (gold pawning) and Agro Home Financing-i (home financing) all grew encouragingly, as the products found good demand from customers. AgroCash-i is one of our most competitive personal financing products in the market which we grew further for the year in review. We also initiated awareness and promotional campaigns for AgroCash-i, ending the year in review with a portfolio of RM4.3 billion, an increase of 17.9% from the previous year. In 2017, we reclassified the Bank’s savings and GIRO accounts products under the previous concept of Wadiah Yad Dhamanah (Guaranteed Savings) with Qard based savings and GIRO accounts to comply with the BNM’s Qard framework. We introduced four new Qard Savings products in 2018 for individual and non-individual customers. They are the Agro Basic Savings Account-i, AgroTani-i, Agro Muda-i and the Agro Perdana-i. Hartani-i, an agriculture land financing product, offers attractive financing facility for agriculture land ownership. As a way to grow our products organically, we offered Hartani-i financing schemes to our existing customers with active land financing accounts with Agrobank and other financial institutions. We saw good take up rate with growth of 12.2% increase in Hartani-i financing in 2018 at RM571.1 million, compared to RM508.9 million in 2017.
  44. wanita dari kawasan luar bandar termasuk Sabah dan Sarawak . Melalui AgroTERAS, Bank telah meluluskan pembiayaan sebanyak RM8.6 juta pada tahun 2018. Melalui pembiayaan mikro yang khusus seperti ini, Agrobank dapat memberikan sokongan kepada perniagaan mikro baharu dan yang sedang berkembang, di samping menggalakkan penglibatan lebih ramai wanita dalam sektor pertanian dan industri asas tani. Perbankan Pengguna Perbankan Pengguna terus mencapai kemajuan dalam mengukuhkan dan meluaskan jangkauan penawaran kami kepada segmen pengguna. Bagi tahun ini, kesemua produk utama kami iaitu AgroCash-i (pembiayaan peribadi), Hartani-i (pembiayaan pembelian tanah), Ar-Rahnu (pajak gadai emas), dan Agro Home Financing-i (pembiayaan perumahan) meningkat berikutan permintaan yang stabil oleh para pelanggan. Pada tahun ini, pembiayaan AgroCash-i iaitu salah satu produk pembiayaan peribadi kami yang paling kompetitif di pasaran telah mencatat pertumbuhan yang baik. Kempen kesedaran dan promosi bagi produk pembiayaan ini turut dijalankan sepanjang tahun, dan kami mengakhiri tahun 2018 dengan portfolio bernilai RM4.3 bilion, iaitu kenaikan sebanyak 17.9% berbanding tahun lepas. Pada tahun 2017, akaun simpanan dan GIRO Bank yang sebelum ini berkonsepkan Wadiah Yad Dhamanah (Simpanan Terjamin) telah diklasifikasi semula di bawah konsep Qard, bagi mematuhi keperluan rangka kerja Qard oleh BNM. Empat produk Simpanan Qard baharu telah diperkenalkan kepada pelanggan individu dan pelanggan bukan individu pada tahun 2018, iaitu Agro Basic Savings Account-i, Agro Tani-i, Agro Muda-i, dan Agro Perdana-i. Produk pembiayaan Hartani-i disediakan bagi memudahkan pelanggan untuk memiliki tanah pertanian mereka sendiri. Sejajar dengan usaha meningkatkan pertumbuhan produk kami, skim pembiayaan Hartani-i ditawarkan kepada pelanggan sedia ada yang memiliki akaun pembiayaan tanah yang aktif bersama Agrobank dan institusi kewangan lain. Kadar pengambilan pembiayaan Hartani-i adalah menggalakkan, dengan pertumbuhan sebanyak 12.2% pada tahun 2018 yang berjumlah RM571.1 juta, berbanding RM508.9 juta pada tahun 2017. Pada tahun 2017, Agrobank telah melancarkan skim Agro Home Financing-i untuk membantu komuniti pertanian memiliki rumah mereka sendiri, khususnya buat golongan dalam kategori B40. Kerjasama strategik dengan Pihak Berkuasa Kemajuan Pekebun Kecil Perusahaan Getah (RISDA), Institut Penyelidikan dan Kemajuan Pertanian Malaysia (MARDI), serta agensi-agensi kerajaan yang lain adalah untuk memudahkan ahli-ahlinya mendapat pembiayaan perumahan. Di bawah skim ini, kami telah memperkenalkan pakej pembiayaan Rumah Bina Negara (RBN) bersama RISDA. Setakat ini, 56 pelanggan yang berkelayakan telah berjaya mendapat pembiayaan perumahan tersebut. Kerjasama turut dijalinkan bersama Syarikat Perumahan Negara Berhad (SPNB) untuk memperkenalkan program pembiayaan rumah bersubsidi di bawah skim yang sama, pada Disember 2018. Penawaran skim Ar-Rahnu telah diperluaskan lagi, di mana ramai pelanggan yang telah memperolehi manfaat daripada pembiayaan skim Ar-Rahnu sebelum ini telah melanjutkan tarikh matang pembiayaan masing-masing. Pada tahun 2018, program Ar-Rahnu mencatatkan pertumbuhan positif sebanyak 12.3%. We launched the Agro Home Financing-i scheme in 2017 which facilitates home ownership for the agricultural community, especially those within the B40 category. We work with selected partners such as the Rubber Industry Smallholders Development Authority (RISDA), Malaysian Agricultural Research and Development Institute (MARDI) and government agencies to provide home financing support to their members. Under this scheme, we introduced the financing package Rumah Bina Negara (RBN) in collaboration with RISDA and are pleased to note that the scheme has benefited 56 eligible customers. We worked with Syarikat Perumahan Negara Berhad (SPNB) to introduce a subsidised home financing programme under the same scheme in December 2018. We also expanded the base for our Ar-Rahnu scheme with many customers who benefited from the financing, extending the maturity date and continuing with the product. Ar-Rahnu recorded positive growth of 12.3% in 2018. Trade Finance We make available various trade finance facilities to support trade related activities such as short term revolving facility for working capital, among them Letter of Credit-i, Murabahah Trust Receipt, and Bank Guarantee-i, as well as competitively priced short-term financing facilities. With the increased growth from Business Banking for the year in review, trade finance grew accordingly. For the first time, we surpassed the RM1.0 billion target in outstanding balance at RM1.02 billion as at end 2018, an increase of RM161.0 million against the same corresponding period of 2017. Revenue for this segment closed at RM41.2 million for 2018. LAPORAN TAHUNAN 2018 ANNUAL REPORT 39
  45. PERBINCANGAN DAN ANALISIS PENGURUSAN MANAGEMENT DISCUSSION AND ANALYSIS The good performance of trade finance is an encouraging indication of the ready-acceptance of our customers to utilise trade finance facilities for their working capital requirements . Electronic and Transaction Banking Over 70% of our banking channels which comprise branches, kiosks, AGROAgents, online and electronic banking centres, are located in the rural agriculture areas of Malaysia. As internet penetration in Malaysia widens, the demand for modern banking and online facilities as well as e-payment services from this customer segment in the rural areas increases as well. With our expanded range of channels, Agrobank is well-placed to meet the requirements of the underserved segment given our strong presence in these rural areas. 40 For the year in review, we intensified efforts for greater adoption of digital and online internet banking channels. Total fee-based income earned for electronic banking and card services was RM13.7 million as at end of December 2018 on the back of significant growth from debit card usage which increased by 51.0%. AGROBANK We saw good results from our campaigns to drive corporate and business customers to utilise AGRONetBIZ internet banking services for business functions such as vendor payment and payroll management. We intensified the utilisation of AGRONetBIZ cash management services and grew customer base by a strong 72.0% which saw an increase in online transactions. Consequently, total fee income increased by 21.0% year-on-year. Pembiayaan Perdagangan Untuk mendorong aktiviti berkaitan perdagangan, kami menawarkan kemudahan pembiayaan perdagangan seperti kemudahan modal kerja jangka pendek yang antaranya, merangkumi Surat Kredit-i, Resit Murabahah, dan Jaminan Bank-i, di samping pembiayaan jangka pendek ditawarkan pada harga-harga yang kompetitif. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information pelbagai pusingan Amanah lain yang Sejajar dengan peningkatan pertumbuhan dalam Perbankan Perniagaan pada tahun ini, pembiayaan perdagangan turut meningkat sewajarnya. Buat pertama kali, kami telah mengatasi baki pembiayaan yang disasarkan pada RM1.0 bilion, dengan pencapaian baki sebanyak RM1.02 bilion pada penghujung tahun 2018. Ini merupakan peningkatan sebanyak RM161.0 juta berbanding tempoh yang sama pada tahun 2017. Pendapatan sebanyak RM41.2 juta berjaya diperolehi pada tahun 2018. Prestasi menggalakkan ini menandakan kesediaan pelanggan kami untuk menggunakan kemudahan pembiayaan perdagangan Agrobank bagi memenuhi keperluan modal kerja perniagaan mereka. Perbankan Elektronik dan Transaksi Lebih 70% daripada rangkaian perbankan kami seperti cawangan, kios, Ejen Perbankan dan pusat perbankan dalam talian dan elektronik, terletak di kawasan pertanian luar bandar di Malaysia. Seiring dengan perkembangan Internet di Malaysia, permintaan bagi perkhidmatan perbankan dan kemudahan dalam talian yang moden oleh segmen kawasan luar bandar ini akan turut meningkat. Penggunaan perkhidmatan pembayaran elektronik juga semakin meningkat. Dengan For the retail segment, we intensified migration to e-payment platform through our enhanced Agrobank e-payment infrastructure, which is in line with the national agenda towards becoming a cashless society. Our AGRONet retail customer base grew 28% by end 2018 while total number of transactions grew by 51.0% year-on-year. As part of the Bank’s efforts to extend and expand its reach to customers nationwide and encourage greater financial inclusion especially in the rural areas, we expanded our AGROAgent network with an addition of 226 new agents during the year in review. For the year in review, Agrobank reached out to the most rural areas in Sabah, offering customers in Pulau Jambongan and Pulau Sebatik in Tawau and Pulau Banggi in Kudat access to basic banking and financial services. We also appointed two agents through the Usahawan Orang Asli through the Jabatan Kemajuan Orang Asli (JAKOA) to offer the community access to banking services.
  46. memanfaatkan rangkaian perbankan Agrobank yang meluas dan memperkukuhkan kehadiran kami di kawasan luar bandar , Agrobank akan terus memenuhi keperluan segmen yang kurang mendapat perhatian dan terpinggir. Bagi tahun 2018, penggunaan saluran perbankan digital dan Internet dalam talian telah dipertingkatkan lagi. Jumlah pendapatan berasaskan fi bagi perbankan elektronik dan perkhidmatan kad meningkat sebanyak RM13.7 juta, didorong oleh pertumbuhan ketara sebanyak 51.0% dalam penggunaan kad debit. Sambutan baik diterima berikutan kempenkempen yang dijalankan untuk menggalakkan pelanggan korporat Agrobank untuk menggunakan khidmat perbankan Internet AGRONetBiz bagi menjalankan transaksi perniagaan mereka seperti pembayaran kepada pembekal dan pengurusan gaji. Seiring dengan usaha menggalakkan pelanggan menggunakan khidmat pengurusan tunai dibawah AGRONetBiz, kami berjaya meluaskan asas pelanggan kami sebanyak 72.0%, disamping menambahkan urus niaga dalam talian. Dengan ini, jumlah pendapatan fi dari tahun ke tahun telah meningkat sebanyak 21.0%. Sejajar dengan agenda negara untuk membentuk masyarakat tanpa tunai, kami telah menggunakan infrastruktur pembayaran elektronik Agrobank yang telah dipertingkatkan untuk meneruskan pemindahan segmen pengguna ke platform pembayaran elektronik. Dengan itu, kami telah berjaya meluaskan asas pelanggan pengguna AGRONet sebanyak 28%, sementara jumlah transaksi tahun ke tahun, meningkat sebanyak 51.0% pada penghujung tahun 2018. Untuk meningkatkan dan memperluaskan lagi jangkauan Bank kepada pelanggan di seluruh negara, dan mendorong rangkuman kewangan khususnya di kawasan luar bandar, kami telah meluaskan rangkaian Ejen Perbankan kami dengan penambahan sebanyak 226 ejen baharu sepanjang tahun 2018. Pada tahun ini juga, Agrobank telah meluaskan jangkauan kami ke kawasan luar bandar dan terpinggir di Sabah dengan menawarkan akses kepada perkhidmatan perbankan dan kewangan asas kepada pelanggan di Pulau Jambongan dan Pulau Sebatik di Tawau, serta Pulau Banggi di Kudat. Menerusi kerjasama bersama Usahawan Orang Asli di bawah Jabatan Kemajuan Orang Asli (JAKOA), dua orang ejen telah dilantik bagi menyediakan akses kepada perkhidmatan perbankan dan kewangan asas kepada komuniti di sini. Kami bangga untuk menyatakan bahawa Agrobank merupakan satu-satunya bank yang menyediakan perkhidmatan perbankan dan kewangan asas kepada penduduk di kawasankawasan terpencil di serata Malaysia. We are proud to say that Agrobank is the only bank to service the financial needs of the people in these remote areas of Malaysia. Moving forward, we will continue with our efforts to advance the adoption of technology in line with the SBP to meet changing customer expectations and adapt to new digital channels. STRENGTHENING COLLABORATIVE INITIATIVES Sejajar dengan strategi SBP, kami akan terus menerapkan penggunaan teknologi baharu dalam menjalankan operasi dan perniagaan kami bagi memenuhi jangkaan pelanggan yang dinamik, sambil memanfaatkan saluran digital yang baharu. Moving forward, we will continue with our efforts to advance the adoption of technology in line with the SBP to meet changing customer expectations and adapt to new digital delivery channels. As a DFI that values the importance of embedding sustainability features in line with VBI, we place significant focus not only on developing innovative financing facilities but working with the right partners and agencies to ensure that we effectively reach our targeted segments within the agriculture sector. We want to leverage on the expertise and reach of other agencies to offer more substantial and comprehensive financing solutions throughout the value chain encompassing upstream and downstream activities. For the year in review, we strengthened our strategic collaborations with agencies under the Ministry of Agricultural and Agro-based Industry (MOA). In January 2018, we expanded our Chilli Fertigation Group Financing programme for chilli farmers in selected regions of Kuching, Sarawak through the local branch of the National Farmers’ Association (NAFAS), also known as the Pertubuhan Peladang Kawasan (PPK). The local PPK office acts as Agrobank’s agent to efficiently roll out and speed up the application process by individual farmers and initiate the requisite background check on the viability of the project. They are also on hand to provide technical assistance to the farmers. We also worked with BERNAS for the BERNAS’ Projek Rakan Ladang (PRL) scheme under the BERNAS Paddy-i financing facility which has contributed significantly to improving the state of national food security and livelihood of paddy farmers in the country. We also collaborated with the Department of Agriculture (DOA), Malaysian Agricultural Research and Development Institute (MARDI), and Federal Agricultural Marketing Authority (FAMA) to drive various agricultural funding programmes such as the Dana Pertanian Komersial (DPK) and Fund for Food (3F). These funding programmes continue to spur the good work done towards ensuring food self-sufficiency levels (SSL) and achieve stable food security. LAPORAN TAHUNAN 2018 ANNUAL REPORT 41
  47. PERBINCANGAN DAN ANALISIS PENGURUSAN MANAGEMENT DISCUSSION AND ANALYSIS Sejajar dengan strategi SBP , kami akan terus menerapkan penggunaan teknologi baharu dalam menjalankan operasi dan perniagaan kami bagi memenuhi jangkaan pelanggan yang dinamik, sambil memanfaatkan saluran digital yang baharu. MENGUKUHKAN INSIATIF-INISIATIF KERJASAMA Sebagai sebuah IKP yang mengutamakan ciri-ciri kemampanan yang mematuhi prinsip VBI, kami meletakkan penumpuan tinggi pada penyediaan kemudahan pembiayaan yang inovatif, di samping kerjasama dengan rakan-rakan dan agensi-agensi yang sesuai, dalam meluaskan jangkauan kami secara berkesan kepada segmen sektor pertanian yang disasarkan. Kami berharap untuk memanfaatkan kepakaran dan jangkauan agensi-agensi lain untuk menawarkan lebih banyak penyelesaian pembiayaan yang mantap dan menyeluruh di sepanjang rantaian nilai sektor pertanian, termasuklah aktiviti huluan dan aktiviti hiliran. Pada tahun ini, kami telah menjalankan kerjasama strategik bersama agensi-agensi di bawah Kementerian Pertanian dan Industri Asas Tani (MOA). 42 AGROBANK Pada Januari 2018, kami telah bekerjasama dengan NAFAS yang turut dikenali sebagai Pertubuhan Peladang Kebangsaan (PPK), untuk meluaskan lagi program Pembiayaan Berkelompok Fertigasi Cili bagi penanam cili di wilayah tertentu di Kuching, Sarawak. Pejabat tempatan PPK bertindak sebagai ejen Agrobank untuk melaksanakan dan mencepatkan proses permohonan oleh peladang individu, serta memulakan pemeriksaan latar tentang kelangsungan projek tersebut. Mereka juga bersedia untuk memberikan bantuan teknikal kepada peladang. Kami juga telah menjalinkan kerjasama strategik dengan BERNAS untuk menyediakan kemudahan pembiayaan BERNAS Padi-i di bawah Projek Rakan Ladang (PRL) Bernas. Skim ini telah membantu meningkatkan kadar jaminan makanan dengan ketara, di samping meningkatkan punca pencarian penanam padi di negara kita. Usaha sama turut dijalankan dengan Jabatan Pertanian (DOA), Institut Penyelidikan dan Kemajuan Pertanian Malaysia (MARDI), dan Lembaga Pemasaran Pertanian Persekutuan (FAMA) untuk menjalankan pelbagai program pembiayaan pertanian seperti Dana Pertanian Komersial (DPK) dan Tabung Untuk Makanan (3F). Program pendanaan seperti ini terus mendorong usaha yang dijalankan untuk memastikan Tahap Sara Diri (SSL) dan menstabilkan kadar jaminan makanan negara. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Bank juga telah menandatangani Memorandum Persefahaman (MoU) bersama Lembaga Pembangunan Koridor Wilayah (RECODA) untuk menyediakan pembiayaan bagi para pelabur dan petani di bawah kawasan Koridor Tenaga Boleh Diperbaharui Sarawak (SCORE). Melalui MoU ini, kami berharap untuk menggalakkan penyertaan usahawan tani tempatan dalam kegiatan pertanian komersial, di samping menggalakkan penyertaan usahawan dalam pembangunan rantaian bekalan pertanian di Sarawak. Kami turut menjalankan kerjasama dengan agensi-agensi bersekutu antarabangsa seperti Persatuan Institusi Kewangan dan Pembangunan di Asia serta Pasifik (ADFIAP), dan Persatuan Kredit Luar Bandar dan Pertanian di Asia Pasifik (APRACA) untuk menyelaraskan kerjasama antara agensi dan institusi kewangan bagi menggalakkan usaha rasionalisasi dan pengantarabangsaan bagi produk pertanian Malaysia. We signed a Memorandum of Understanding (MoU) during the year’s Agrofest 2018 with the Regional Corridor Development Authority (RECODA) for cooperation and provision of financing programmes for investors and farmers in the Sarawak Corridor of Renewable Energy (SCORE) area. Through this MoU, we hope to be a catalyst supporter for the development of local agropreneurs to participate in commercial agriculture as well as encourage entrepreneurs to take part in the development of the agriculture supply chain in Sarawak. We have strengthened our collaborations with internationally affiliated agencies such as Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) and the Asia-Pacific Rural and Agricultural Credit Association (APRACA) as part of our efforts to foster greater coordination among agencies and financial institutions towards supporting rationalisation and internationalisation of Malaysian agriculture products. Through these strategic alliances, the Bank hopes to achieve the national objective of developing the agriculture sector as well as achieving greater financial inclusion objectives. EDUCATION AND ENGAGEMENT TO EQUIP OUR ENTREPRENEURS FOR OPPORTUNITIES To ensure that the agriculture industry remains sustainable and competitive, new breeds of farmers who are equipped with knowledge of future trends and the opportunity to capitalise on them are imperative for the sector’s growth. We play our part in helping support this aspiration through the Agropreneur Development Programme (ADP) which was initiated by the Bank under its Centre of Excellence framework. The ADP aims to assist businesses in the unserved and underserved markets, such as in rural areas, with financing assistance and provide training on better financial management and cash flow analysis. Through the ADP, agropreneurs are given the right tools and access to sharpen their financial acumen and entrepreneurial skills needed to scale up in the agriculture sector. The programme offers two core capacity building support, which includes training and business advisory services.
  48. Menerusi kerjasama strategik seperti ini , Bank berharap untuk membantu pencapaian matlamat negara dalam membangunkan sektor pertanian, sambil meningkatkan rangkuman kewangan. MENDIDIK DAN MENINGKATKAN PENGLIBATAN USAHAWAN KAMI AGAR BERSEDIA MENGAMBIL PELUANG Untuk memastikan industri pertanian kekal mampan dan kompetitif, golongan petani baharu perlu dilengkapkan dengan pemahaman mengenai trend masa depan, dan perlu diberikan peluang untuk memanfaatkannya demi pertumbuhan sektor ini. Aspirasi ini disokong oleh kami melalui Program Pembangunan Agropreneur (ADP) yang telah dimulakan oleh Bank di bawah rangka kerja Pusat Kecemerlangan Bank. ADP bermatlamat untuk membantu perniagaan oleh segmen yang tidak dan kurang mendapat perhatian dan terpinggir di kawasan luar bandar dengan menyediakan bantuan pembiayaan dan latihan dalam pengurusan kewangan dan analisis aliran tunai. Di bawah ADP, usahawan dibekalkan dengan ilmu pengetahuan dan akses untuk memantapkan kepintaran kewangan dan kemahiran keusahawanan yang diperlukan untuk memperhebatkan perniagaan mereka dalam sektor pertanian. Program ini menawarkan dua sokongan membina keupayaan yang utama iaitu latihan dan khidmat nasihat perniagaan. Dari segi latihan, usahawan tani daripada perusahaan mikro, kecil dan sederhana akan diberikan latihan membina kemahiran dan keupayaan yang merangkumi keusahawanan asas, motivasi, perancangan perniagaan dan strategi, perancangan kewangan dan pemasaran. Modul-modul ini dirangka bersama-sama dengan jabatan-jabatan dan agensi-agensi di bawah MOA. Menerusi Khidmat Nasihat Perniagaan ADP, Bank dapat menyediakan sokongan dan khidmat nasihat perniagaan kepada pelanggan yang sedia ada. Kami membantu pelanggan kami memahami dan mengamalkan disiplin yang diperlukan untuk menjalankan perniagaan dengan baik, cara untuk menangani cabaran, serta cara untuk memanfaatkan peluang dan trend masa kini. Melalui perkhidmatan tersebut yang meliputi kunjungan ke tapak dan kelas perniagaan, kami berusaha untuk memantapkan usahawan tani dengan aspek-aspek kewangan dan bukan kewangan yang sesuai dalam menjalankan perniagaan mereka. Kerjasama dengan agensi-agensi relevan turut dijalankan untuk memberi usahawan tani peluang mengenali dan memahami cara-cara menjalankan perniagaan menurut dasar dan rangka kerja yang ditetapkan oleh institusi-institusi relevan di Malaysia. Antara agensi-agensi yang telah bekerjasama dengan kami termasuk Agensi Kaunseling dan Pengurusan Kredit (AKPK), Institut Penyelidikan dan Kemajuan Pertanian Malaysia (MARDI), dan Lembaga Pemasaran Pertanian Persekutuan (FAMA). Pada tahun 2018, Agrobank telah menganjurkan 25 sesi latihan ADP yang melibatkan 610 peserta daripada pelbagai subsektor pertanian. Kami juga telah menganjurkan program perkongsian pengetahuan iaitu ‘Agenda Agro’ sebagai platform untuk menjalankan sesi penglibatan yang disasarkan, bersama pelanggan kami di mana mereka akan diberikan gambaran keseluruhan secara berperingkat tentang aktiviti dan trend pertanian yang boleh dimanfaatkan. Pelancaran ‘Agenda Agro’ tahun ini bermula di Kota Kinabalu, Sabah telah dimulakan dengan topik ‘Prospek dan Peluang dalam Sektor Pertanian’. Kami berpuas hati dengan sambutan menggalakkan bagi program ini, yang telah menarik penyertaan lebih daripada 100 pelanggan Agrobank di Sabah. Para peserta telah dibekalkan dengan maklumat terkini tentang prospek dan peluang yang wujud dalam sektor pertanian, di samping maklumat tentang dasar dan inisiatif kerajaan yang boleh membantu mereka meningkatkan status sosioekonomi dan perniagaan mereka. Under the training scope, agropreneurs who come from the micro, small and medium enterprises will receive skills and capacity building training which includes basic entrepreneurship, motivation, business and strategic planning, financial planning and marketing. These modules are worked on together with the departments and agencies under the MOA. Through the ADP Business Advisory Services, the Bank provides its existing customers support and advisory in the business process aspect. We work together with our customers to help them understand and address the disciplines needed to run a business well, how to address challenges and how to capitalise on opportunities and trends. Through the advisory services which include site visits and business clinics, we look to equip the agropreneurs on both the financial and non-financial aspects of running their business. We also bring in relevant agencies to collaborate with us so as to give our agropreneurs the opportunity to network as well as to understand directly how to operate within the policies and frameworks set up by the relevant institutions in Malaysia. Some of the agencies that we collaborate with are the Agensi Kaunseling dan Pengurusan Kredit (AKPK), Malaysian Agriculture Research and Development Institute (MARDI) and Federal Agricultural Marketing Authority (FAMA). In 2018, Agrobank successfully organised a total of 25 ADP training sessions involving 610 participants from various agriculture sub-sectors. We also organised a knowledge sharing programme known as ‘Agenda Agro’ which is aimed to be a platform for targeted engagement with our clients to be given a progressive overview of the agricultural activities and trends that they can capitalise on. We kicked off the ‘Agenda Agro’ programme this year in Kota Kinabalu, Sabah on the topic of ‘Prospects and Opportunities in Agricultural Sector’. We were pleased with the good response for the programme, which attracted the participation of more than 100 Agrobank customers based in Sabah. Participants were exposed to the latest information and updates on the prospects and opportunities in agriculture sector, as well as information on government policies and initiatives that could help them to grow their socio-economic status and business. LAPORAN TAHUNAN 2018 ANNUAL REPORT 43
  49. PERBINCANGAN DAN ANALISIS PENGURUSAN MANAGEMENT DISCUSSION AND ANALYSIS 44 AGROBANK MEMBAWA IMPAK KEPADA KESEJAHTERAAN HIDUP KOMUNITI MAKING AN IMPACT ON COMMUNITY WELLBEING Sebagai sebuah IKP , kami menjalankan inisiatifinisiatif untuk memberdayakan golongan yang terlibat dalam sektor pertanian bagi memastikan seluruh komuniti mencapai kemakmuran. Sehubungan dengan itu, kami berusaha untuk membangunkan sistem kewangan yang mampu menyampaikan nilai-nilai kepada masyarakat dengan mengatasi isu-isu keterangkuman dan kemampuan. As a DFI, the initiatives that we put in place to elevate those working within the agriculture sector are a means of ensuring that ultimately the community as a whole prospers. We look to support the development of a financial system which delivers real value to the society by addressing the barriers of inclusiveness and affordability. Sempena Pameran Pertanian, Hortikultur dan Pelancongan Agro 2018 (MAHA 2018), Agrobank melancarkan kad perlindungan takaful MAHA 2018 edisi istimewa yang dikenali sebagai Kad Takaful Agro Mabrur-i edisi MAHA 2018, yang disasarkan untuk komuniti yang tidak dan kurang mendapat perhatian. Menerusi pembayaran minimum sebanyak RM75 setahun, pelanggan boleh mendapatkan perlindungan takaful yang komprehensif, dan manfaat haji badal berjumlah RM3,500 yang mana akan dibayar kepada wakil haji badal, untuk mengerjakan ibadah haji bagi pihak peserta tersebut jika berlakunya kematian atau ketidakupayaan menyeluruh kekal pada peserta, semasa tempoh perlindungan. Bagi peserta bukan Islam, manfaat Haji Badal dan Waqaf Tunai boleh ditukarkan kepada manfaat tunai. Semenjak pelancarannya, produk Takaful Agro Mabrur-i telah dilanggani oleh lebih daripada 3,274 peserta, dengan jumlah perlindungan bernilai lebih daripada RM343,995. Agrobank merupakan institusi perbankan pertama yang melancarkan skim perlindungan takaful untuk golongan orang kurang upaya (OKU), iaitu program Agro Nurani. Program ini sudah memasuki tahun kedua semenjak pelancarannya, dan terus menerima permintaan yang tinggi di kalangan pelanggan. Bagi tahun ini, kami telah mengeluarkan sebanyak 1,563 polisi yang berjumlah RM249,560. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information PENUMPUAN PADA KAKITANGAN DAN FOKUS BERPANDUKAN PRESTASI Di Agrobank, kami bertekad untuk membangunkan dan memperkasakan modal insan kami supaya mereka mampu memenuhi keperluan dan aspirasi pelanggan serta pihak berkepentingan dengan baik, dan menyokong usaha kami dalam menghasilkan impak yang ketara di sepanjang rantaian nilai ekosistem pertanian. Kakitangan Bank yang lebih dikenali sebagai Agrobankers, adalah asbab utama di sebalik pencapaian penting kami sebagai IKP yang bertanggungjawab untuk membangunkan sektor pertanian dan industri asas tani di Malaysia. Agrobank merupakan institusi perbankan pertama yang melancarkan skim perlindungan takaful untuk golongan orang kurang upaya (OKU), iaitu program Agro Nurani. We were the first bank in Malaysia to launch a takaful scheme coverage for persons with disabilities (PWD) called Agro Nurani. In conjunction with Malaysia Agriculture, Horticulture and Agrotourism (MAHA 2018), we launched a special edition MAHA 2018 takaful protection card known as Takaful Agro Mabrur-i - MAHA 2018 edition that is aimed at the unserved and underserved community. With a minimum affordable payment of RM75 a year, customers can benefit from a comprehensive takaful protection plan that offers badal hajj benefit amounting RM3,500 of which, upon the death or permanent total disability of the participant during the coverage period, will be paid to the badal hajj nominee to perform hajj on behalf of the participant. For Non-Muslims, Badal Hajj and Cash Waqaf benefits can be converted into cash benefits. Since the launch of Takaful Agro Mabrur-i , it has been subscribed by more than 3,274 participants with total coverage amounting over RM343,995. We were the first bank in Malaysia to launch a takaful scheme coverage for persons with disabilities (PWD) called Agro Nurani. Now in its second year, this takaful continues to find good demand among customers, with added benefits of ambulance service. For the year in review, we issued 1,563 policies amounting to RM249,560.
  50. Demikian , kami berusaha untuk mencipta nilai bagi pihak berkepentingan dalam sektor pertanian, bersandarkan prinsipprinsip yang berikut; Memperkasakan (“Empowering”), Melibatkan (“Engaging”) dan Memperkayakan (“Enriching”). Prinsip ini turut diterapkan di kalangan Agrobankers supaya mereka dapat mencapai potensi penuh mereka. Kakitangan yang diberdayakan melalui kaedah ini semestinya akan dapat memberi sumbangan yang lebih bermakna para pelanggan, komuniti dan pihak berkepentingan. Pada tahun ini, kami telah meningkatkan pelaburan dalam program latihan pembangunan bagi 3,430 kakitangan Bank sebanyak 7.9%, berbanding tahun 2017. Bajet yang dibelanjakan untuk latihan dan pembangunan di Agrobank mengatasi keperluan perbelanjaan latihan yang ditetapkan oleh BNM. Rangka kerja pembangunan kakitangan kami adalah menurut nisbah 70:20:10 untuk memastikan proses pembelajaran yang berkesan. Ini bermakna 70% daripada proses pembelajaran merangkumi tugasan dan latihan semasa kerja; 20% pembelajaran merangkumi bimbingan dan pementoran; dan baki 10% meliputi kurikulum pembelajaran yang berstruktur. Pendekatan bersepadu ini menggabungkan pembelajaran melalui pengalaman dengan pembelajaran secara formal, yang didapati berkesan untuk memperhebatkan lagi kemahiran Agrobankers kami. Pengurusan Kompetensi Industri perbankan yang dinamik megikut arus perubahan teknologi, pengeluaran instrumen kewangan yang baharu dan keperluan pelanggan yang berubah-ubah, memerlukan kami untuk sentiasa memastikan organisasi kami mampu memperolehi, memperbaiki, dan mengekalkan kemahiran dan pengetahuan yang diperlukan untuk menjamin kecekapan dalam melaksanakan kerja kami. Kami juga memastikan kakitangan kami diberikan pensijilan profesional yang relevan untuk membantu mempertingkatkan kemahiran yang khusus dalam pekerjaan mereka. Sehubungan dengan itu, Bank telah membentuk program latihan dan program membina kemahiran yang dibahagikan kepada tiga kategori: Kepimpinan, Kemahiran Insani dan Kemahiran Teknikal. PEOPLE-CENTRED AND PERFORMANCE DRIVEN FOCUS At Agrobank, we are committed to investing in human capital and empowering them to serve the needs and aspirations of our customers and stakeholders, so that we can make a significant impact along the value-chain of the agriculture eco-system. Our people, fondly known as Agrobankers, are the very reason that we have been able to achieve significant milestones along our journey as a DFI tasked with developing the agriculture and agri-food sector in Malaysia. As we create value for our stakeholders in the agriculture sector through principles of empowering, engaging and enriching them, we apply the same lens to our Agrobankers as well so that they are well-equipped to reach their full potential. Only when our people are effectively engaged, equipped and empowered, can they return their contribution to shareholders, customers, and the community. For the year in review, we increased our investment in the training the development needs of the 3,430 employees of the Bank by 7.9% compared to 2017. The budget spent on training and development at Agrobank is above the staff training expenditure required by BNM. Our people development framework is distilled through a 70:20:10 blended approach for effective learning. This means that 70% of learning comes from stretch assignments and learning on-the-job; 20% learning is done through coaching and mentoring; and the balance 10% is through a structured learning curriculum. We feel that this blended approach offer the right mix of experience learning and formal training that best supports our people to be better Agrobankers. Competency Management As the banking industry changes rapidly with the advent of technology, new financial instruments, and changing customer requirements, we need to ensure that we as an organisation are able to obtain, improve and retain skills and knowledge required to do our jobs competently. We also want to ensure that our employees have the relevant professional certifications that are necessary to help them further in their particular job skills. To this end, the Bank invests in relevant training and skills enhancement programmes which are distilled into three categories: Leadership, Soft Skills and Technical. Bilangan latihan yang dijalankan dan kehadiran peserta bagi tahun 2018/Number of trainings conducted and participant attendance 2018 Kategori Category Bil. Latihan yang Dijalankan No. of Trainings Conducted Bil. Peserta yang Menghadiri No. of Participants Attended Kepimpinan Leadership 30 798 Kemahiran Insani Soft skills 67 3,340 Kemahiran Teknikal Technical 367 4,125 Jumlah Total 464 8,263 LAPORAN TAHUNAN 2018 ANNUAL REPORT 45
  51. PERBINCANGAN DAN ANALISIS PENGURUSAN MANAGEMENT DISCUSSION AND ANALYSIS Program Bakat Muda atau “Young Talent Program (YTP)” telah diperkenalkan untuk mengenal pasti pelatih yang serba berpengetahuan dan berkeupayaan, yang akan dimantapkan dengan kemahiran tertentu atau kepakaran yang relevan, bagi meningkatkan kecekapan kepimpinan mereka. Siswazah yang terpilih perlu menjalani program pembangunan formal dan berstruktur yang merangkumi latihan semasa bekerja, rotasi unit kerja dalam bank, serta keterlibatan dalam aktiviti korporat dan tanggungjawab sosial. Sepanjang program ini, seorang pengurus kanan akan bertindak sebagai mentor kepada para pelatih, sementara pengurus bawahan masing-masing akan menyediakan bimbingan yang diperlukan. Semenjak diperkenalkan pada tahun 2013, program YTP sentiasa dijalankan sebagai program satu-tahun. Bagaimanapun, pada tahun ini kami telah melanjutkannya sebagai program dua-tahun untuk meningkatkan pendedahan terhadap persekitaran bank secara berstruktur kepada para pelatih. Bagi tahun ini, program YTP kami telah merekrut 15 siswazah dari universiti-universiti dan kolej-kolej di serata Malaysia. Untuk memantapkan kemahiran kepimpinan kakitangan Agrobank, kami menggunakan “scorecard matrix” yang menilaikan tahap kesediaan kakitangan untuk menggalas peranan kepimpinan dalam organisasi. Pemimpin yang berpotensi akan menjalani program kepimpinan dan latihan yang relevan, sebelum dinilaikan oleh pihak pengurusan kanan pada sesi Penilaian Bakat. Berdasarkan pemarkahan kad skor yang dipersetujui bersama, pihak pengurusan akan menentukan kesediaan mereka untuk memikul jawatan atau peranan yang telah dikenal pasti bagi mereka. 46 AGROBANK Pada tahun 2018, program-program latihan yang dijalani oleh kakitangan kami untuk mempertingkatkan kemahiran dan keupayaan kepimpinan mereka termasuk Program Kepimpinan Lanjutan (ALP) dan Program Pensijilan Cawangan yang bertujuan untuk memantapkan gaya kepimpinan dan mencepatkan transformasi kakitangan daripada pakar yang hanya fokus kepada satu fungsi kerja kepada pemimpin yang cekap merentasi pelbagai fungsi. Pengurusan Prestasi Agrobank menggunakan kaedah kad skor untuk memandu prestasi kakitangan ke arah pencapaian inisiatif strategik jangka panjang Bank, menurut penunjuk prestasi utama korporat (CKPI) tahunan. Pada tahun 2018, Bank telah menerapkan penggunaan model baharu untuk mempertingkatkan dan menstandardkan ukuran prestasi dan pelaporan di kalangan syarikat-syarikat dibawah Kementerian Kewangan Diperbadankan (MOF Inc). Di bawah model ini, dua perspektif prestasi tambahan telah dimasukkan iaitu Kepuasan Kakitangan, serta Penilaian Alam Sekitar dan Komuniti. We introduced a Young Talent Programme (YTP) that is aimed at identifying well-rounded and capable employees who will be equipped with the relevant functional or specialist skills, while strengthening leadership competencies. Identified graduates will undergo formal and structured development programme which includes on-the-job training, job rotations within the bank, and involvement in corporate and social responsibility activities. Throughout the programme, trainees will be mentored by a senior manager and their respective line managers will provide essential coaching. The YTP has always been a one-year programme since it was introduced in 2013. In 2018, we extended it to be a two-year programme as we wanted to give the trainees more extensive exposure to a structured development environment. For the year in review, we recruited 15 graduates from Malaysian universities and colleges under the YTP. To develop our people as leaders, we have in place a scorecard matrix which assesses their levels of readiness for leadership roles within the organisation. The potential leaders, after having gone through leadership programmes and relevant trainings, will be evaluated by senior management during a Talent Review session. Based on the agreed scorecard, management determines their readiness against the position or role that they have been identified for. For 2018, some of the training programmes that were undertaken by our people to expand their leadership skills and capacity were the Advance Leadership Programme (ALP) which aims to sharpen leadership style and accelerate transition from functional specialists to effective cross-functional leaders, as well as the Branch Certification Programme. Performance Management Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information We adopt a balanced scorecard methodology towards steering employee performance to achieve the Bank’s long-term strategic initiatives as identified in the annual corporate key performance indicators (CKPIs). In 2018, the Bank adopted a new model based on the Ministry of Finance Incorporated’s (MOF Inc.) drive to improve and standardise performance measurement and reporting among MOF Inc. companies. In this model, two additional performance matrix perspectives were added which were the Staff Satisfaction, and Environment and Community measurements. The Bank places high emphasis on good corporate governance and compliance as fundamental to the protection and enhancement of the Bank’s value in achieving
  52. sustainable growth . This is in line with BNM’s requirement for financial institutions to continue building a compliance culture within the organisation. In alignment to that, the KPI setting for critical jobs directly impacting business and operations are tightened up and reflected as a KPI criterion. To this end, staff learning hours on risk management and compliance were increased for the year in review to support their development in those areas. In the coming year, we will be looking at launching the Flexi benefits programme which is a new introduction for Agrobank. This flexi benefits scheme is part of our strategy to address the diverse needs of our different groups of employees who will be in a good position to elect benefits that they desire. Untuk melindungi dan mempertingkatkan kemampanan dalam pertumbuhan nilai Bank, kami mengutamakan pengurusan tadbir urus korporat yang mantap dan pematuhan yang kukuh. Ini sejajar dengan keperluan BNM yang menggalakkan institusi kewangan untuk terus membina budaya pematuhan dalam organisasi. Selaras dengan itu, tetapan telah diketatkan bagi jawatan kritikal yang membawa impak kepada perniagaan dan operasi Agrobank secara langsung, sebagai kriteria KPI baharu. Sehubungan itu, waktu pembelajaran kakitangan tentang pengurusan risiko dan pematuhan telah dinaikkan lagi bagi tahun ini, untuk membantu meluaskan pemahaman mereka dalam bidang tersebut. Pada tahun yang akan datang, Agrobank akan melancarkan program manfaat “Flexi” yang baharu. Skim manfaat fleksibel ini adalah sebahagian daripada strategi kami bagi memenuhi pelbagai keperluan kumpulan kakitangan kami yang berlainan, melalui penyediaan manfaat fleksibel yang boleh disesuaikan menurut keperluan masing-masing. Bagi memastikan kami kekal kompetitif dalam usaha menarik, mengekal, dan memotivasi kakitangan, Kajian Jumlah Ganjaran akan dimulakan pada tahun depan. Latihan ini bertujuan untuk memastikan kakitangan kami menerima ganjaran yang setara dengan ganjaran di pasaran, ataupun yang lebih baik. Pengurusan Perintis Untuk menjamin kemampanan dalam organisasi, kami menjalankan beberapa program yang memastikan kecemerlangan barisan tenaga kerja kami. Fokus ditumpukan pada penyediaan barisan kakitangan perbankan yang profesional, serba berpengetahuan, cekap dalam berinteraksi dan berkhidmat kepada komuniti, serta berkeupayaan dan berkemahiran untuk memastikan kecemerlangan barisan tenaga kerja pada masa depan. Matriks penggantian khusus turut ditetapkan bagi jawatan-jawatan penting untuk memastikan kesinambungan dalam pengurusan dan kepimpinan Bank. Pada tahun 2018, kami telah menganalisis kelemahan dalam ciri-ciri kemahiran yang diperlukan untuk menjamin pertumbuhan pada masa depan. Beberapa inisiatif telah dijalankan untuk memastikan ketersediaan maklumat relevan serta barisan tenaga kerja yang mampu mendukung matlamat strategik Bank. Kami juga telah menganjurkan dan menyertai beberapa pesta kerjaya untuk memperkenalkan Agrobank kepada calon-calon yang berpotensi, dan menerangkan peranan kami sebagai sebuah IKP yang mendorong pertumbuhan sektor pertanian. Penyertaan kami dalam pesta-pesta ini membolehkan kami mencapai dua objektif, iaitu berkongsi kerja baik yang dijalankan oleh Bank selaras dengan prinsip VBI bagi mencipta nilai dan menyokong sektor pertanian, selain peluang untuk menilai calon-calon yang berpotensi untuk menyertai barisan tenaga kerja kami di Agrobank. To ensure that we remain competitive in the industry in attracting, retaining and motivating talents, we will be embarking on a Total Remuneration Review in the year ahead. This exercise is aimed to ensure that our people are remunerated at par with the market or better. Succession Management We are committed to creating sustainability within our organisation and have put in place programmes to ensure that we keep the talent pipeline robust for future success. We place focus on building a ready pool of wellrounded banking professionals who are able to connect with and serve the community, with skill sets and competency requirements that will enhance our talent pool for the future. We have in place a succession matrix for critical job positions to ensure continuity in management and leadership in the Bank. In 2018, we conducted a gap analysis on the skill sets required for future growth and identified initiatives to ensure that relevant knowledge and a pipeline of talents are available to support the Bank’s strategic goals. We also conducted and participated in career fairs to introduce the role Agrobank plays as a DFI in supporting the agriculture sector growth to potential candidates. Through the career fairs, we achieve the dual objective of sharing the good work the Bank does in line with VBI to create value and support the agricultural sector, as well as assess potential candidates who may be a good addition to the Bank’s talent pool. Participating in fairs, conferences and events is key to position our brand to win the talent war and become employer of choice. For the third consecutive years, we have been listed in Malaysia’s 100 Leading Graduate Employers by Grad Malaysia’. LAPORAN TAHUNAN 2018 ANNUAL REPORT 47
  53. PERBINCANGAN DAN ANALISIS PENGURUSAN MANAGEMENT DISCUSSION AND ANALYSIS Kerjasama dengan Universiti dan Pusat Latihan Terpilih Collaborations with Universities and Training Partners Landskap perbankan dan keperluan pelanggan yang sering berubah menyedarkan kami tentang keperluan mentransformasikan Bank , dengan memanfaatkan teknologi baharu untuk memastikan pertumbuhan pada masa depan. Permintaan bagi bakat-bakat yang memiliki keupayaan baharu dijangka meningkat pada masa depan. Demikian, kami berusaha untuk mendapatkan nasihat pakar tentang cara-cara untuk membantu kami menjadi berbilang disiplin, meningkatkan usaha sama dan ketangkasan dalam bertindak balas terhadap persekitaran yang semakin pantas berkembang. Sehubungan dengan itu, kami telah bekerjasama dengan institusi pengajian tinggi dan pusat latihan terpilih di Malaysia untuk merangka program latihan yang dapat disesuaikan untuk kakitangan kami. As the banking landscape and customer demands rapidly evolve, we are aware that we need to transform ourselves to take advantage of emerging technologies for future growth. We expect that demand for talents with new competencies will increase in the future, and so we look to work with experts to learn ways to be multidisciplinary, collaborative and agile to respond to the fast-changing environments ahead of us. To that end, we worked very closely with institutions of higher learning and business consultancies in Malaysia to collaborate in structuring customised training programmes for our people. Latihan dan Pensijilan melalui Kerjasama dengan Rakan Industri dan Pusat Akademik pada tahun 2018/Training and Certification Collaboration with Industry and Academic Partners in 2018 48 AGROBANK Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Program Pensijilan Pengurusan Cawangan Branch Management Certification Programme Sekolah Perbankan Asia dalam Pengurusan Cawangan Asian Banking School on Branch Management Program Pensijilan Pengurusan Cawangan Branch Management Certification Programme LHI Consultant dalam Modul Kepimpinan LHI Consultant on Leadership Module Program Pensijilan Pertanian Agrobank-UPM (AUACP) Agrobank – UPM Agriculture Certification Programme (AUACP) Universiti Pertanian Malaysia (UPM) Universiti Pertanian Malaysia (UPM) Program Penjualan Berimpak dan Penjualan Bersilang Selling with Impact and Cross Selling Programme Maslow Trainers and Consultants Maslow Trainers and Consultants Sijil Profesional dalam Pengurusan Perniagaan Professional Certificate in Business Coaching Pusat Pembangunan Usahawan dan Penyelidikan Sdn. Bhd. Centre for Entrepreneur Development and Research Sdn. Bhd. Tugas-tugas Pengurus Besar Job of the General Managers Institut Pengurusan Malaysia (MIM) The Malaysian Institute of Management (MIM) Sijil dalam Perbankan Islam dan Undang-undang Kewangan Certificate in Islamic Banking and Finance Law Universiti Islam Antarabangsa Malaysia (UIAM) International Islamic University Malaysia (IIUM) Pelaporan Berstruktur dalam Program Inggeris Structured Reporting in English Programmes Atheneum Communications Atheneum Communications Program Kelayakan Pertengahan dalam Kewangan Islam (IQIF) Intermediate Qualification in Islamic Finance Programme (IQIF) Institut Perbankan & Kewangan Islam Malaysia (IBFIM) Islamic Banking & Finance Institute Malaysia (IBFIM) Program Kelayakan Asas dalam Kewangan Islam (AQIF) Associate Qualification in Islamic Finance (AQIF) Institut Perbankan & Kewangan Islam Malaysia (IBFIM) Islamic Banking & Finance Institute Malaysia (IBFIM) Program Latihan untuk Jurulatih Train the Trainer Programme Agensi Akreditasi Kewangan (FAA) Finance Accreditation Agency (FAA) Eksekutif Kredit Bertauliah (CCE) Certified Credit Executive (CCE) Institut Bank-bank Bertauliah Asia (AICB) Asian Institute of Chartered Bankers (AICB) Pakar Kredit Perniagaan (BCP) Business Credit Professional (BCP) Institut Bank-bank Bertauliah Asia (AICB) Asian Institute of Chartered Bankers (AICB) Etika dalam Perbankan Ethics in Banking Institut Bank-bank Bertauliah Asia (AICB) Asian Institute of Chartered Bankers (AICB) Pendedahan Praktikal kepada Pertanian 1.0 (APEX) Agriculture Practical Exposure 1.0 (APEX) Universiti Putra Malaysia (UPM) Universiti Putra Malaysia (UPM) Pendedahan Praktikal kepada Pertanian 2.0 (APEX) Agriculture Practical Exposure 2.0 (APEX) Pelbagai agensi kerajaan, Lembaga Minyak Sawit Malaysia (MPOB), Jabatan Perikanan Malaysia (DOF), Jabatan Perkhidmatan Veterinar (DVS) Various government agencies, Malaysian Palm Oil Board (MPOB), Department of Fisheries Malaysia (DOF), Department of Veterinary Services (DVS)
  54. Penglibatan Kakitangan Agrobankers memahami kepentingan bekerja berpandukan matlamat seperti yang telah digariskan dalam pelan SBP lima-tahun kami . Penjajaran dalam seluruh organisasi akan meningkatkan pemahaman dan kesejahteraan sesama Agrobankers, dalam usaha kami untuk bersama-sama mencapai matlamat yang sama. Sepanjang tahun ini, pelbagai sesi penglibatan telah dianjurkan untuk merapatkan hubungan dengan 3,430 kakitangan di Agrobank. Kaji Selidik Pembabitan Kakitangan (EES) telah dijalankan untuk mendapatkan maklum balas kakitangan dan mengenal pasti kekurangan yang perlu diatasi, sementara kekuatan yang ada akan dikekalkan dan dimantapkan lagi. Bagi tahun 2018, kami telah mencapai markah penglibatan sebanyak 80.0%, iaitu lebih tinggi berbanding tahun lepas. Keputusan ini menunjukkan peningkatan dalam usaha memantapkan dan meningkatkan pembabitan kakitangan dalam membawa nama baik Agrobank, dan membina hubungan yang baik bersama pihak pengurusan. Kami turut menjalankan forum dan sesi penglibatan sepanjang tahun untuk menyerlahkan hala tuju perniagaan, pencapaian, nilai-nilai, kepercayaan, dan pendekatan kesihatan dan keselamatan kami. Sesi penglibatan ini dijalankan dalam format “Townhall”, di mana saya selaku Presiden/Ketua Pegawai Eksekutif serta anggota-anggota pihak pengurusan kanan yang lain, akan turun ke pentas dan berinteraksi dengan semua kakitangan kami. Kami mengalu-alukan maklum balas yang membina daripada kakitangan kami, dan kami menggalakkan mereka mengemukakan pertanyaan supaya apa-apa kebimbangan boleh ditangani, dan perjalanan ke arah kejayaan dapat diteruskan bersama-sama. Untuk menggalakkan aktiviti sosial diantara Agrobankers, penubuhan kelab rumah sukan menyediakan platform untuk para Agrobankers berinteraksi sesama sendiri sambil menggalakkan gaya hidup sihat. Sepanjang tahun ini, pelbagai aktiviti sukan termasuk sesi futsal dan bola jaring telah diadakan. Kami turut menyumbang kepada masyarakat melalui inisiatif-inisiatif lain seperti kempen menderma darah, selain saringan kesihatan dan hari kecergasan Agrobank. MENYUMBANG SEMULA KEPADA MASYARAKAT DAN KAKITANGAN KAMI Kami berusaha untuk mengukuhkan sektor pertanian dan komunitinya melalui produk dan perkhidmatan kewangan kami. Sebagai warga korporat yang bertanggungjawab, kami turut menerapkan ciri-ciri mulia dalam usaha Kami mengalualukan maklum balas yang membina daripada kakitangan kami, dan kami menggalakkan mereka mengemukakan pertanyaan supaya apa-apa kebimbangan boleh ditangani, dan perjalanan ke arah kejayaan dapat diteruskan bersamasama. We are also open to constructive feedback and encourage our employees to voice out their questions so that concerns can be readily addressed and we can all continue on the same path towards success. Employee Engagement With the guidance of our five-year SBP, it is very important that all Agrobankers are aware and work towards achieving the goals outlined. We believe that when we are all aligned, it will foster greater understanding and a better sense of well-being as we all work together for the common goal. Over the course of the year, we organised many engagement sessions to get in touch with our 3,430 employees within Agrobank. We conduct an annual Employee Engagement Survey (EES) to gauge employees’ feedback to determine gaps that need to be addressed as well as build and sustain areas of our strength. For 2018, we achieved 80.0% engagement score, slightly higher than the previous year’s scores. The results point towards a good sense of connection and engagement with the brand, the management and the organisation. We have also led forums and engagements session throughout the year to highlight our business direction, our achievements, values, beliefs, and approach to health and safety. These engagements are done in Townhall formats where I, as the President/Chief Executive Officer (P/CEO) and my fellow senior management members personally take to the floor to engage with our people. We are also open to constructive feedback and encourage our employees to voice out their questions so that concerns can be readily addressed and we can all continue on the same path towards success. LAPORAN TAHUNAN 2018 ANNUAL REPORT 49
  55. PERBINCANGAN DAN ANALISIS PENGURUSAN MANAGEMENT DISCUSSION AND ANALYSIS memberi semula kepada komuniti yang kami berkhidmat . Ini merangkumi kedua-dua segmen iaitu yang mendapat perhatian dan segmen yang terpinggir dalam kalangan masyarakat kita, di samping kakitangan Agrobank sendiri. Pada tahun 2018, Bank telah mengagihkan zakat bernilai RM2.6 juta, yang merangkumi zakat dari tahun 2016 dan tahun 2017. Zakat tersebut disampaikan kepada kumpulan penerima yang berkelayakan termasuk pelajar, penghuni dan rumah pengurusan anak yatim, keluarga di bawah Program Perumahan Rakyat (PPR) di Lembah Klang, badan-badan amal, masjid, dan pihak berkuasa zakat. 50 AGROBANK Sejajar dengan objektif kami untuk menggalakkan rangkuman kewangan, kami telah mengadakan bengkel tentang pendidikan kewangan iaitu Program Nasihat Kewangan Patuh Syariah (NasiK-i) untuk golongan pelajar asnaf yang miskin. Bengkel ini telah dianjurkan bersama dengan Akademi Pengajian Islam Universiti Malaya (APIUM) dan MyTijaroh Resources, iaitu syarikat latihan dan rundingan yang mempunyai kepakaran dalam perancangan kewangan Islam. Sebanyak RM100,000 telah disumbangkan kepada para pelajar. Kami turut menyampaikan sumbangan sebanyak RM100,000 kepada Yayasan Nelayan Malaysia (YANEM) untuk membantu pembelajaran pelajar asnaf yang sedang menjalani pengajian tinggi. Sebagai organisasi yang mengutamakan kesejahteraan komunitinya, Bank akan terus menyumbang kepada organisasi dan individu berkelayakan yang rajin dan bersungguhsungguh dalam usaha memperbaiki diri mereka, meskipun dibebani kesusahan hidup. Pada tahun ini, kami turut menyampaikan zakat berjumlah RM580,300 kepada kakitangan Bank dan ahli keluarga mereka yang memerlukan bantuan. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information PROSPEK DAN HALA TUJU KAMI SETERUSNYA Pada tahun 2019, ketidakstabilan ekonomi dijangka berterusan, disebabkan faktor-faktor luaran yang turut membawa bersamanya cabaran kepada ekonomi Malaysia. Faktorfaktor seperti kesengitan perdagangan antara Amerika Syarikat dan China yang masih berlanjutan, pertumbuhan ekonomi China yang lembap, ketidakpastian hasil daripada impak Brexit, harga minyak yang tidak menentu, di samping persekitaran geopolitik yang tidak stabil, dijangkakan mampu merencatkan pertumbuhan global. Peningkatan dalam risiko kerugian turut melihat “International Monetary Fund (IMF)” menurunkan ramalan pertumbuhan dunia kepada 3.5% pada tahun 2019, berbanding 3.7% pada tahun 2018. To foster greater social rapport, we have a sports club that allows us to bond as well as promote health awareness. During the course of the year, we played games like futsal and netball, among others but we also contributed to the community through initiatives such as blood donation drives, as well as health screening and Agrobank wellness day. CONTRIBUTING BACK TO OUR SOCIETY AND OUR PEOPLE We seek to strengthen the agriculture sector and its community through our financial products and services. As a responsible corporate citizen, we too emulate the noble values of giving back to the community in which we operate in. This includes both the deserving and marginalised segments of society as well as our own people within the Bank. In 2018, the Bank had successfully distributed RM2.6 million of zakat, consisting zakat from 2016 and 2017. Our zakat was distributed to a broad range of worthy recipients including students, residents and orphanage centres, families from Program Perumahan Rakyat (PPR) in the Klang Valley, charitable bodies, mosque, and zakat authorities, among others. In line with our objective of fostering greater financial inclusion, we initiated a workshop on financial education called Program Nasihat Kewangan Patuh Syariah (NasiK-i) for poor asnaf students. The workshop was organised in collaboration with Akademi Pengajian Islam Universiti Malaya (APIUM) and MyTijaroh Resouces which is a training and consultancy company specialising in Islamic financial planning. We distributed RM100,000 to the students. We also reached out to Yayasan Nelayan Malaysia (YANEM) where we extended RM100,000 to the foundation to support the asnaf students who are undergoing their higher level education. As a community-centric organisation, we will continue to contribute to help the worthy organisations and individuals who have dedicated their time and their aspirations to bettering themselves despite their circumstances. Within the Bank, we extended RM580,300 zakat to the deserving staff and their families who are in need of aid.
  56. PROSPECTS AND OUR DIRECTION AHEAD On the economic front , 2019 looks set to continue with the line of uncertainties from the external environment which will pose challenges to the Malaysian economy. The unresolved US-China trade conflict, slowdown in China’s economy, the impact of Brexit, volatile oil prices and geopolitics are among factors that could dampen global growth in 2019. Amid increasing downside risks, the International Monetary Fund has lowered the world growth forecast to 3.5% in 2019, from 3.7% in 2018. Sebagai ekonomi terbuka, pertumbuhan Malaysia pastinya akan terkesan daripada kelembapan pertumbuhan ekonomi global dan ketegangan perdagangan antara Amerika Syarikat dan China ini. Walaubagaimanapun, kemungkinan terdapat manfaat hasil daripada ketegangan perdagangan ini, sekiranya ada pengalihan dan penempatan semula pelaburan di Malaysia. Pertumbuhan negara juga dijangka meningkat sebanyak 4.5% hingga 4.9% pada tahun 2019, didorong oleh peningkatan penggunaan swasta, kestabilan pasaran buruh, serta kenaikan gaji minimum negara. Sektor-sektor perkhidmatan dan pengilangan dijangka mencatatkan pertumbuhan sederhana, sementara kadar pemulihan yang dianggarkan bagi sektor-sektor perlombongan dan pertanian akan membantu meningkatkan pertumbuhan negara pada tahun 2019. Kepelbagaian dalam pasaran eksport, struktur ekonomi bercampur dan fleksibiliti dasar turut diharapkan mampu melindungi ekonomi negara daripada ketidaktentuan global. Berikutan penyusutan sebanyak 0.4% pada tahun 2018, pertumbuhan sektor pertanian dijangka meningkat sebanyak 2.0% hingga 3.0% pada tahun 2019, didorong oleh pertumbuhan dalam komoditi dan subsektor agromakanan. Memandangkan terdapatnya peningkatan dalam penggunaan makanan, subsektor agromakanan dijangka meningkat juga sebanyak 3.0% hingga 4.0% pada tahun 2019, berbanding 4.9% pada tahun 2018. Subsektor tanaman dan ternakan turut dijangka meningkat sebanyak 4.0% hingga 5.0%, di samping pertumbuhan sederhana dalam pengeluaran perikanan. Ramalan positif bagi sektor pertanian pada tahun 2019, serta penetapan hala tuju dasar yang lebih jelas bagi sektor pertanian meyakinkan kami bahawa sentimen perniagaan akan bertambah baik, dan akan menjana lebih banyak permintaan untuk pembiayaan pertanian. With the anticipated positive recovery in the agriculture sector in 2019 and greater clarity in policy direction for the sector, business sentiment is likely to improve and foster the demand for agriculture financing. As an open economy, Malaysia’s growth will be affected by spill-over effects from the easing in global growth and the US-China trade tensions. However, there could be positive effects from the trade war arising from trade diversion and investment relocation to Malaysia. Malaysia’s economic growth is projected to grow at a fairly stable pace of 4.5% to 4.9% in 2019, with private consumption to remain resilient, underpinned by stable labour market conditions and higher minimum wage. With the services and manufacturing sectors expected to register moderate growth, the projected recovery in the mining and agriculture sector will provide additional support to growth in 2019. Malaysia’s diversified export markets, its mixed economic structure and policy flexibility would cushion the economy against global uncertainties. After a 0.4% contraction in 2018, the agriculture sector is projected to grow 2.0% to 3.0% in 2019, underpinned by growth in both commodities and agro-food sub-sectors. Agrofood sub-sector is expected to sustain growth at 3.0% to 4.0% in 2019, compared to 4.9% in 2018 against the backdrop of a growing trend in food consumption. This will be supported by 4.0% to 5.0% growth in food crops and livestock sub-sectors amid modest gain in fishery output. The commodities segment is projected to recover with 2.0% to 3.0% growth in 2019 from 4.1% in 2018 as palm oil production normalises. Having said that, the rubber subsector could decline amid volatile prices and forestry due to conservation policy. With the anticipated positive recovery in the agriculture sector in 2019 and greater clarity in policy direction for the sector, business sentiment is likely to improve and foster the demand for agriculture financing. LAPORAN TAHUNAN 2018 ANNUAL REPORT 51
  57. PERBINCANGAN DAN ANALISIS PENGURUSAN MANAGEMENT DISCUSSION AND ANALYSIS Seiring dengan kestabilan pengeluaran kelapa sawit pada tahun 2019 , pertumbuhan segmen komoditi dijangka meningkat sebanyak 2.0% hingga 3.0%, berbanding 4.1% pada tahun 2018. Bagaimanapun, subsektor getah mungkin menyusut disebabkan ketidakstabilan harga dan aktiviti pemeliharaan hutan. Ramalan positif bagi sektor pertanian pada tahun 2019, serta penetapan hala tuju dasar yang lebih jelas bagi sektor pertanian meyakinkan kami bahawa sentimen perniagaan akan bertambah baik, dan akan menjana lebih banyak permintaan untuk pembiayaan pertanian. Kerajaan baharu bertekad untuk memacu pertumbuhan sektor pertanian dan meningkatkan taraf sosioekonomi bagi komuniti pertanian. Agrobank didorong oleh langkah-langkah yang diumumkan dalam Bajet 2019 untuk mempertingkatkan sektor pertanian melalui kenaikan perbelanjaan bagi pembangunan sektor pertanian dan luar bandar sebanyak 3.9% kepada RM2.28 bilion pada tahun 2019, berbanding RM2.10 bilion pada tahun 2018. Kami juga berharap untuk memanfaatkan bajet RM52 juta yang disasarkan untuk pelaksanaan latihan dalam sektor pertanian dan industri asas tani, di samping latihan keusahawanan untuk golongan belia. 52 AGROBANK Pemulihan yang dijangka dalam sektor pertanian akan membuka ruang untuk Agrobank meningkatkan permintaan bagi pembiayaan pertanian, seterusnya mengukuhkan kedudukan Bank. Kami akan meneruskan penerapan prinsip VBI dan langkah-langkah kemampanan dalam penyediaan produk kami, agar dapat memberi impak yang bermakna kepada seluruh rantaian nilai sektor pertanian yang telah dipertanggungjawabkan kepada kami. Pada tahun yang akan datang, kami akan memperkukuhkan kedua-dua portfolio pembiayaan korporat dan komersial kami, selain meningkatkan deposit kos rendah. Kami juga akan menggalakkan pertumbuhan dalam Tahap Sara Diri (SSL) subsektor pertanian, dan mengkaji penggunaan model perniagaan yang lebih efisien bagi rantaian nilai pertanian untuk meningkatkan SSL, dan seterusnya menstabilkan kadar jaminan makanan negara. Ini termasuk menyediakan pembiayaan bagi pembaharuan teknologi dan penggunaan tenaga boleh diperbaharui untuk memantapkan lagi rantaian nilai pertanian dalam sektor pertanian. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Sejajar dengan usaha kerajaan untuk memantapkan industri berorientasikan eksport, Agrobank akan terus menyokong projek-projek komersial berimpak tinggi bagi program ‘Sumber Rezeki Baru’, yang bertujuan menjana punca pendapatan baharu daripada sumber makanan seperti durian, nanas dan kelapa yang berpotensi untuk menjana permintaan yang tinggi. Pembiayaan mikro terbukti berkesan dalam membantu pelanggan kami memenuhi keperluan awal perniagaan mereka. Segmen ini akan terus diperkukuhkan dengan meluaskan jangkauan kami kepada segmen yang tidak dan kurang mendapat perhatian dalam komuniti pertanian. Ini termasuk menjalankan kerjasama dengan rakan-rakan strategik kami, serta agensi-agensi kerajaan untuk menggalakkan inisiatif yang boleh meningkatkan pendapatan komuniti luar bandar. Kami komited untuk menambah baik taraf kehidupan seluruh komuniti pertanian dengan meneruskan usaha menyediakan penyelesaian kewangan yang relevan dan bersesuaian untuk membantu mereka meningkatkan taraf kehidupan dan pendapatan mereka. Antara kempen-kempen yang akan diteruskan adalah program Kita-Kita Aje, selain rombakan semula Kelab Kanak-kanak Agro untuk memantapkan segmen pendeposit kanak-kanak kami. The mandate by the new ruling government is resolute towards spurring growth in the agriculture sector and uplifting the socioeconomic standing of the community. We are encouraged by the measures announced in Budget 2019 to uplift the agriculture sector which includes among others, an increase in development expenditure for agriculture and rural development by 3.9% to RM2.28 billion in 2019, from RM2.19 billion in 2018. We also look forward to the RM52 million budget aimed at implementing training in agricultural and agro-food industry, as well as entrepreneurship training for youths, among others. With the return of a more favourable environment in the agricultural sector, we at Agrobank see it as an avenue to uplift the demand for agriculture financing, which will bode well for the Bank. The key imperative for us is to continue in the vein of embedding the VBI and sustainability measures into our products and make an impact on the entire value chain of the sector that we are mandated to help develop. For the year ahead of us, we will be looking to strengthen our financing portfolio on both corporate and commercial financing while raising more low-cost deposits. We will also be promoting growth in targeted self-sufficiency agriculture sub-sectors, while helping the value chain in agriculture to look into more efficient business models to increase self-sufficiency levels and achieve a stable food security. Part of bolstering the agriculture value chain would include supporting the financing needs for technology advancements and renewable energy related initiatives for the agriculture sector. As part of the government’s efforts to solidify the export-oriented industries, Agrobank will be looking to further our support to high-impact commercial-sized projects related to ‘Sumber Rezeki Baru’ which is looking at new sources of income from high demand food sources such as durians, pineapples and coconut. Micro-financing has proved to be instrumental in giving our customers an initial boost towards investing in their business needs. We will continue to strengthen this through expanding our reach into the unserved and underserved segments related to agriculture business and the community. This would also entail further collaborative alliances from strategic partners to government agencies to promote initiatives that would help elevate income levels of our rural communities.
  58. Memastikan kecemerlangan dalam perkhidmatan pelanggan dan penawaran produk tetap mendasari segala usaha kami . Inisiatif-inisiatif yang sesuai untuk meningkatkan kecemerlangan perkhidmatan pelanggan akan terus dilaksanakan memandangkan ia membentuk sebahagian penting daripada strategi pengekalan pelanggan kami. Kami juga akan memastikan penerapan nilai-nilai PATRIOT dalam segala usaha yang dibuat oleh Bank, untuk memperkukuhkan imej Agrobank sebagai IKP Islam terkemuka di Malaysia. Pada waktu yang sama, kami akan terus mengambil pendekatan yang berhemat dan berhati-hati dalam menjalankan perniagaan kami melalui pemantauan portfolio pembiayaan secara berterusan untuk memastikan kemantapannya. Kami bertekad untuk mengukuhkan kedudukan kami sebagai IKP terkemuka dan terpilih yang mampu memenuhi keperluan komuniti dan industri pertanian bagi mempertingkatkan lagi sektor pertanian. Mulai tahun 2019, Agrobank akan menerapkan Rangka Kerja Pengukuran Prestasi atau “Performance Measurement Framework (PMF)” untuk memantapkan daya maju kami sebagai sebuah IKP, selaras dengan keperluan BNM. PMF menggariskan objektif pembangunan yang akan dijajarkan dengan strategi perniagaan kami bagi menyampaikan nilai kepada komuniti pertanian. Ia berfungsi untuk mengukur Impak Pembangunan daripada empat sumbangan tambahan yang disasarkan iaitu Kewangan, Pembentukan, Demonstrasi dan Dasar. PENGHARGAAN Saya berbangga dapat menyertai organisasi terkemuka ini, dan berharap untuk bersama-sama berusaha mencapai aspirasi Agrobank, dan matlamat negara. Saya juga ingin mengucapkan terima kasih kepada tuan Pengerusi dan Lembaga Pengarah atas sokongan dan bimbingan mereka, dan terima kasih kepada pihak pengurusan kanan dan seluruh kakitangan di Agrobank atas dedikasi dan usaha keras mereka. Kepada para pelanggan dan pihak berkepentingan kami, saya ingin mengatakan di sini bahawa Agrobank bertekad untuk terus berkhidmat untuk anda dalam merealisasikan aspirasi negara untuk mempertingkatkan sektor pertanian. Saya percaya bahawa Agrobank berada dalam kedudukan yang mantap untuk mencipta impak yang bermakna buat anda semua. Akhir kata, saya ingin merakamkan setinggi-tinggi penghargaan kepada pihak pengawal selia kami, Bank Negara Malaysia, juga terima kasih kepada Kementerian Kewangan dan Kementerian Pertanian dan Industri Asas Tani atas sokongan dan keyakinan yang diberikan kepada kami. SYED ALWI MOHAMED SULTAN Presiden/Ketua Pegawai Eksekutif President/Chief Executive Officer We are committed to improving the lives of our agriculture community at large and will continue in our efforts to provide them with relevant and accommodative financial solutions that will help them better their lives and income. Some of the campaigns that we will continue into the year are the “Kita-Kita Aje” which will stand as our brand-bearer for the year, as well as a revamp of the Agro Kids Club to cater to the junior segment of our depositors. Customer service and product excellence will remain at the core of everything that we do. We will continue with initiatives to elevate service excellence to our customers as it plays an important role in our customer retention strategy. Internally, we will ensure that we embed the PATRIOT values in everything that we do so that we continue to strengthen the image of Agrobank as a leading Islamic DFI in Malaysia. At the same time, we will continue to be prudent and vigilant in our business dealings, being mindful of closely monitoring our financing portfolios to ensure it remains sound. We remain committed to building ourselves as a leading and choice DFI that is facilitative of the needs of the agricultural communities and industries to help build up the sector. To ensure enduring viability of our role as a DFI, Agrobank will be adopting the Performance Measurement Framework (PMF) from 2019, as required by BNM. The PMF is anchored on development objectives which will be aligned to our business strategies to deliver value to our agriculture community. It will measure the Development Impact of four desired additionalities which are Financial, Design, Demonstration and Policy. ACKNOWLEDGEMENTS I am proud to join this leading organisation and look forward to working together to realise the aspirations of Agrobank and the country. I would like to thank the Chairman and the Board for their support and guidance, as well as to the senior management team and employees at Agrobank for their dedication and hard work. To our customers and our stakeholders, we reaffirm our commitment to serving you and helping to realise the nation’s aspirations for a strengthened agriculture sector. I believe that we are on a strong path to success as we look at making a resounding impact in our work together. Finally, I would like to accord my sincere gratitude to our stakeholders; Bank Negara Malaysia, Ministry of Finance and Ministry of Agriculture and Agro-based Industry for your support and confidence in us. LAPORAN TAHUNAN 2018 ANNUAL REPORT 53
  59. PENYATA PERANTARAAN BERASASKAN NILAI (VBI): MENURUT CARA AGROBANK VALUE-BASED INTERMEDIATION (VBI) STATEMENT: THE AGROBANK WAY 54 AGROBANK Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information
  60. Penyata Perantaraan Berasaskan Nilai (Penyata VBI): Menurut Cara Agrobank, menjelaskan amalan-amalan, penyelesaian kewangan, perkhidmatan yang ditawarkan dan prinsip-prinsip yang didukung oleh Bank bagi mewujudkan impak kemampanan terbaik dalam usaha pembangunan ekonomi, pemerkasaan sosial dan kelestarian alam sekitar. Penyata ini turut disediakan berpandukan Matlamat Pembangunan Mampan (SDG) Negara-Negara Bersatu sebagai rangka tindakan asas yang digunakan untuk mencapai masa depan yang lebih baik, dan lebih mampan bagi semua individu. Muka surat 56 dan 57 merangkumi maklumat mengenai kesemua 17 SDGs dan matlamat sasaran yang berkaitan dengan peranan Agrobank dalam mencipta dan menyampaikan nilai kepada pihak berkepentingan. Penyata VBI meliputi aktiviti-aktiviti dalam segmen perniagaan utama Bank, termasuk Perbankan Perniagaan, Perbankan Konsumer, Pembiayaan Perdaganan, Pembiayaan Mikro dan lain-lain. Prinsip Perantaraan Berasaskan Nilai (VBI) menurut “Cara Agrobank” diterapkan menerusi penyediaan perkhidmatan kewangan yang mematuhi Syariah dan disesuaikan dengan keperluan pelanggan sasaran kami, selain menyampaikan akses kepada maklumat dan pasaran kepada mereka. Dalam melaksanakan peranan tradisional kami sebagai pengantara kredit untuk memastikan keberkesanan peruntukan modal dalam ekonomi, kami turut menjalankan usaha perantaraan berlandaskan unsur-unsur Maqasid Syariah. Nilai-nilai ini mengambil berat terhadap komuniti di mana kami berkhidmat, memelihara alam sekitar, dan membangunkan ekonomi demi kebaikan pada hari ini dan pada masa depan. Usaha ini dijalankan seiring dengan usaha mewujudkan punca pendapatan baharu dan usaha menggalakkan pertumbuhan ekonomi. Keseimbangan antara kedua-duanya adalah penting untuk menjamin kemampanan masa depan Agrobank. Pendekatan ini diperkukuhkan menerusi penerapan prinsip VBI yang ditetapkan oleh Bank Negara Malaysia (BNM) bersama Komuniti Pengamal VBI (CoP), dengan Agrobank sebagai salah satu ahli pengasasnya. Kami memanfaatkan prinsip VBI untuk memacu kewangan Islam ke peringkat pertumbuhan seterusnya, sambil memastikan pencapaian matlamat Syariah yang disasarkan melalui tindakan yang menjanakan impak yang positif dan berkekalan bagi ekonomi, komuniti dan alam sekitar. Secara progresif, Bank juga akan terus memperkukuhkan proses pelaporan dan penjelasan tentang prinsip VBI, serta cara-cara untuk melaksanakan dan mengukur keberkesanannya dalam strategi perniagaan kami. The Value-based Intermediation Statement (VBI Statement): Agrobank Way gives an account of the practices, financial solutions, service offerings and conduct of the Bank that is focused on creating the greatest impact to sustainability in the areas of economic development, social empowerment and environmental sustainability. The statement also draws guidance, where relevant to Agrobank’s role, from the United Nations’ Sustainable Development Goals (SDGs) which is a blueprint to achieve a better and more sustainable future for all. Page 56 and 57 consist of information on all 17 SDGs and the targeted goals related to Agrobank’s role in creating and delivering values to stakeholders. This VBI Statement will cover the activities within the Bank’s main business drivers consisting of Business Banking, Consumer Banking, Trade Finance, Microfinancing and other initiatives. The “Agrobank Way” towards encapsulating tenets of Valuebased Intermediation (VBI) is by providing tailored Shariahcompliant financial services to our target customer segments, as well as providing them with access to knowledge and markets. As we undertake our traditional role of credit intermediation towards efficient capital allocation in the economy, we also make sure such intermediation is underscored by values within the paradigm of Maqasid Shariah. These values include caring for the communities that we serve, preserving the climate and developing the economy, for today and tomorrow. These efforts often go hand-in-hand with the creation of new income opportunities and spurring of economic growth. Attaining this equilibrium is key to the future sustainability of Agrobank. This approach is validated through the principles of VBI which is advocated by Bank Negara Malaysia (BNM) in collaboration with the VBI Community of Practitioners (CoP), of which Agrobank is one of the founding members. We look at the VBI as a means to drive Islamic finance to its next level of growth, while delivering the intended outcomes of Shariah through actions that generate positive sustainable impact and value creation to the economy, community and the environment. On a progressive basis, the Bank will continue to strengthen its reporting and articulation on VBI, and the ways of implementing and measuring them as part of its business approach. LAPORAN TAHUNAN 2018 ANNUAL REPORT 55
  61. PENYATA PERANTARAAN BERASASKAN NILAI (VBI): MENURUT CARA AGROBANK VALUE-BASED INTERMEDIATION (VBI) STATEMENT: THE AGROBANK WAY Menamatkan segala bentuk kemiskinan di serata tempat End poverty in all its forms everywhere 56 Matlamat 1.3 Melaksanakan sistem perlindungan sosial dan mengambil semua langkah bersesuaian termasuk memastikan keseimbangan kadar, selain meluaskan capaian kepada golongan luar bandar dan terpinggir menjelang tahun 2030 Matlamat 1.4 Memastikan semua individu lelaki mahupun wanita khususnya golongan luar bandar dan terpinggir, menikmati hak yang saksama dalam mendapat sumber ekonomi, akses kepada perkhidmatan asas, hak milik dan kawalan atas tanah dan lain-lain bentuk harta, harta warisan, sumber asli, teknologi baharu dan perkhidmatan kewangan yang sesuai termasuk pembiayaan mikro, menjelang tahun 2030 Goal 1.3 Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable Goal 1.4 By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance AGROBANK Mengurangkan ketidaksamaan di dalam dan di antara negara-negara Reduce inequality within and among countries Matlamat 10.1 Mencapai purata pertumbuhan dan pengekalan pendapatan yang melebihi purata negara bagi golongan berpendapatan 40% terbawah menjelang tahun 2030 Goal 10.1 By 2030, progressively achieve and sustain income growth of the bottom 40% of the population at a rate higher than the national average Matlamat 10.2 Memperkasakan dan menggalakkan rangkuman sosial, ekonomi dan politik bagi semua individu menjelang tahun 2030 merentasi umur, jantina, ketidakupayaan, bangsa, kerakyatan, asal-usul, agama atau status ekonomi dan status lain. Goal 10.2 By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Memastikan kemampanan dalam corak penggunaan dan pengeluaran Ensure sustainable consumption and production patterns Matlamat 12.6 Menggalakkan syarikat-syarikat khususnya syarikat besar dan syarikat antarabangsa, untuk menerapkan amalan kemampanan dan menyepadukan maklumat tentang kemampanan dalam laporan mereka Goal 12.6 Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle
  62. Membasmi kelaparan , mencapai kadar jaminan makanan dan mempertingkatkan pemakanan serta menggalakkan pertanian mampan End hunger, achieve food security and improved nutrition and promote sustainable agriculture Matlamat 2.3 Menggandakan produktiviti dan pendapatan pengeluar makanan kecilkecilan menjelang tahun 2030, khususnya bagi wanita, orang asli, komuniti peladang, penternak dan nelayan dengan memastikan mereka mendapat akses saksama kepada tanah, sumber dan input produktif yang lain, pengetahuan, perkhidmatan kewangan, pasaran, serta peluang untuk menambahkan nilai dan pekerjaan dalam bidang bukan perladangan Matlamat 2.4 Memastikan kemampanan sistem pengeluaran makanan dan pelaksanaan amalan pertanian yang kukuh menjelang tahun 2030 untuk meningkatkan produktiviti dan pengeluaran, memelihara ekosistem, mengukuhkan keupayaan menangani perubahan iklim, cuaca buruk, kemarau, banjir dan bencana lain, selain meneruskan usaha memperbaiki tanah dan kualiti tanah secara berperingkat Goal 2.3 By 2030, double the agricultural productivity and incomes of smallscale food producers, in particular women, indigenous peoples, family farmers, pastoralists and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets and opportunities for value addition and non-farm employment Goal 2.4 By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters and that progressively improve land and soil quality LAPORAN TAHUNAN 2018 ANNUAL REPORT Mendorong keterangkuman dan kemampanan dalam pertumbuhan ekonomi, pekerjaan dan penyediaan kerja yang bersesuaian untuk semua individu Promote inclusive and sustainable economic growth, employment and decent work for all Matlamat 8.2 Mempertingkatkan tahap produktiviti ekonomi melalui aktiviti pempelbagaian, peningkatan teknologi dan inovasi termasuk menumpukan fokus pada sektor-sektor tambah nilai tinggi dan intensif buruh Matlamat 8.3 Merangka dasar berorientasikan pembangunan yang mendorong produktiviti aktiviti, penciptaan pekerjaan yang bersesuaian, keusahawanan, kreativiti dan inovasi di samping menggalakkan pembentukan dan pertumbuhan perusahaan-perusahaan mikro, kecil dan sederhana, melalui penyediaan akses kepada perkhidmatan kewangan Goal 8.2 Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labourintensive sectors Goal 8.3 Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalisation and growth of micro-, small- and medium-sized enterprises, including through access to financial services Memelihara dan memanfaatkan sumber-sumber lautan, pantai dan air secara mampan Conserve and sustainably use the oceans, seas and marine resources Matlamat 14.2 Memastikan kemampanan dalam pengurusan dan perlindungan ekosistem lautan dan pantai untuk menjauhkan impak-impak buruk ke atasnya, dengan mengukuhkan ekosistem dan mengambil langkah-langkah untuk memulihkannya, bagi memastikan lautan yang sihat dan produktif menjelang tahun 2020 Goal 14.2 By 2020, sustainably manage and protect marine and coastal ecosystems to avoid significant adverse impacts, including by strengthening their resilience, and take action for their restoration in order to achieve healthy and productive oceans 57
  63. PENYATA PERANTARAAN BERASASKAN NILAI (VBI): MENURUT CARA AGROBANK VALUE-BASED INTERMEDIATION (VBI) STATEMENT: THE AGROBANK WAY 58 AGROBANK VBI: MENURUT CARA AGROBANK VBI: THE AGROBANK WAY Selaku institusi kewangan pembangunan dengan fokus terhadap ekonomi sebenar, kami dipertanggungjawabkan untuk membangunkan sektor pertanian dengan berusaha untuk mencipta dan menyampaikan nilai melalui aktiviti perniagaan kami yang tertumpu pada pembangunan ekonomi, pemerkasaan sosial dan kelestarian alam sekitar. As a DFI with a strong focus on the real economy with a mandate to support development of the agriculture sector, we look to create and deliver value through business activities that are centred on economic development, social empowerment and environmental sustainability. Pembangunan Ekonomi Pemerkasaan Sosial Kelestarian Alam Sekitar Mendorong pertumbuhan industri pertanian yang berdaya maju dengan memanfaatkan peranan Bank sebagai pengantara kredit dan pelaburan untuk menyediakan penyelesaian kewangan yang disesuaikan kepada kumpulan pelanggan sasaran termasuk pekebun kecil, orang asli, dan usahawan wanita. Mempertingkatkan taraf sosial dengan memenuhi keperluan sosioekonomi bagi komuniti pertanian, dan mempertingkatkan taraf kehidupan komuniti yang kurang mendapat perhatian terutamanya komuniti luar bandar dan terpinggir, dengan menjalankan aktiviti tanggungjawab sosial korporat dan aktiviti sosioekonomi lain yang berkaitan. Menggalakkan penerapan amalanamalan terbaik dalam aktiviti pertanian, yang bertujuan untuk mencapai sasaran jaminan makanan sambil memastikan keseimbangan dalam amalan-amalan pertanian mampan untuk menghasilkan makanan menerusi sistem pengeluaran yang selamat, bersih dan cekap. Social Empowerment Promote best-practice agriculture activities that are geared towards achieving food security targets while balancing against sustainable agriculture practices to produce food in a safe, clean and efficient production system. Economic Development Support viable growth of the agriculture industry through its role as a credit and investment intermediary by offering financial solutions tailored to its target group of customers including smallholder farmers, indigenous people, and women agropreneurs. Enrich social well-being by addressing the socio-economic needs of the agriculture community and uplift the lives of the marginalised community especially in rural communities through our brand of corporate social responsibility activities and socioeconomic related activities. Environmental Sustainability Mengenai Kami 01 About Us PEMBANGUNAN EKONOMI/ECONOMIC DEVELOPMENT Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Keadaan Semasa Current State Pada tahun 2018, sumbangan sektor pertanian kepada Keluaran Dalam Negara Kasar (KDNK) Malaysia menurun kepada 7.8%, berbanding 8.2% yang dicatatkan pada tahun 2017. Segmen komoditi mewakili 57.3% daripada pertanian utama sementara agromakanan membentuk baki 42.7% dalam KDNK 2018. Meskipun sumbangan sektor pertanian kepada KDNK adalah agak kecil, sektor ini tetap penting untuk membantu mencapai kadar jaminan makanan negara, di samping mempertingkatkan taraf hidup komuniti luar bandar dan terpinggir. The agriculture sector’s contribution to Malaysia’s Gross Domestic Product (GDP) was at 7.8% in 2018, a decrease from 8.2% in 2017. The commodities segment represented 57.3% of primary agriculture while agro-food made up the balance 42.7% share in 2018 GDP. While its contribution to GDP is relatively small, the agriculture sector remains significant towards achieving national food security and uplifting the well-being of the rural community.
  64. Memastikan jaminan makanan merupakan masalah bagi Malaysia , dan negara-negara lain di seluruh dunia. Populasi dunia yang dianggarkan meningkat kepada 9.8 bilion menjelang tahun 2050 bermakna pengeluaran makanan perlu dipertingkatkan sekurangkurangnya sebanyak 60%, untuk menyediakan makanan yang mencukupi bagi seluruh dunia. Disebabkan itu, kerajaan-kerajaan sedunia berusaha untuk memastikan pengeluaran makanan dipertingkatkan sejajar dengan pertumbuhan penduduk. Ini bermakna kami perlu mengutamakan penggunaan sumber secara mampan dalam keadaan sekarang ini di mana tanah pertanian semakin berkurangan, sumber pengairan semakin menyusut, sementara kos-kos tenaga dan buruh pula kian meningkat. Menjelang tahun 2050, pertumbuhan penduduk di Malaysia dianggarkan melebihi 44 juta orang, dan ini bermakna lebih banyak makanan perlu dihasilkan. Salah satu cara untuk menangani isu ini adalah melalui peningkatan produktiviti, khususnya di kalangan pengeluar kecil-kecilan dengan memastikan mereka mendapat akses kepada kredit, pasaran, dan pendidikan dalam amalan pertanian yang terbaik. Sektor pertanian perlu digiatkan agar lebih produktif dan mampu menangani cabarancabaran kemiskinan, kelaparan, dan perubahan iklim yang saling berkaitan. Keperluan bantuan kewangan oleh para petani dan cara sektor pertanian beroperasi juga perlu didalami secara khusus. Jika tidak, pembiayaan tradisional yang lain akan turut terjejas disebabkan kekurangan pemahaman tentang risiko kredit, dan penyediaan produk kewangan yang tidak serasi. Antara peranan Agrobank dalam mencipta dan menyampaikan nilai melalui aktiviti perniagaan kami yang tertumpu pada pembangunan ekonomi: 1)Mempertingkatkan Rangkuman Kewangan dan Kesejahteraan Komuniti 2) Meningkatkan Tahap Sara Diri (SSL) 3)Menyediakan Akses kepada Pembiayaan merentasi Rantaian Nilai Pertanian 4) Mendorong Pertumbuhan SME dalam bidang Pertanian 5) Mencipta Rantaian Nilai dan Menghubungkan Pasaran 6) Meningkatkan Nilai Selepas Tuai Food security is a concern in Malaysia as it is elsewhere in the world. World population is expected to rise to 9.8 billion by 2050 and needs to increase its food production by at least 60% to ensure food availability for everyone in 2050. It has become a high priority with governments of the world to ensure that food production is increased in tandem with population growth. That means actively looking at how resources are used sustainably given the dwindling agricultural land, lesser water for irrigation, rising energy and labour costs. In Malaysia, population growth is expected to exceed 44 million people by 2050, which simply means more food needs to be produced. One of the ways to tackle this problem is to increase agricultural productivity, especially from small-scale producers by giving them access to credit, markets and education on best farming practices. The agriculture sector needs to become more productive and resilient to address the interconnected challenges of poverty, hunger and climate change. There is also a need for niche understanding of what financial support these farmers need and how the agriculture sector operates; otherwise traditional forms of funding may be withheld due to perceived high credit risk and incompatible financial products. Agrobank’s role in creating and delivering values through business activities centered on economic development includes: 1)Ensure Financial Inclusivity and Improve Community Wellbeing 2) Increase the Self-Sufficiency Levels (SSL) 3) Provide Access to Financing across Agriculture Value Chain 4) Support Growth of SMEs in Agriculture 5) Create Value Chain and Market Linkages 6) Increase Post-Harvest Value Mempertingkatkan Rangkuman Kewangan dan Kesejahteraan Komuniti Ensure Financial Inclusivity and Improve Community Well-being Matlamat 2.3 Menyediakan pembiayaan mikro bagi pelanggan berpendapatan rendah yang disasarkan, termasuk komuniti orang asli dan kumpulan berpendapatan rendah B40 • Agro TERAS (pembiayaan pihak ke pihak) • Pembiayaan Mikro Agro Nisaa’-i • Paddy-i • Mikro ESP-i • Program Agropreneur Muda Untuk menggalakkan usaha rangkuman kewangan, Agrobank memanfaatkan peranannya sebagai pengantara kredit dan pelaburan bagi mendorong pertumbuhan yang berdaya maju dalam industri pertanian. Produk kewangan Bank disesuaikan dengan kumpulan pelanggan sasaran yang merangkumi pekebun kecil, orang asli dan usahawan tani wanita. Selain daripada menawarkan penyelesaian kewangan, Agrobank turut berusaha untuk membangunkan usahawan dengan membina keupayaan mereka, sambil memastikan pertumbuhan industri pertanian terus menyumbang kepada KDNK negara. Goal 2.3 Provide micro-financing to targeted lower-income customer segments including indigenous and lower income B40 communities • Agro TERAS (peer-to-peer financing) • Agro Nisaa’-i Micro-Financing • Paddy-i • Micro ESP-i • Young Agropreneur Programme To spur greater financial inclusion, Agrobank supports viable growth of the agriculture industry through its role as a credit and investment intermediary. The Bank tailors financial solutions to its target group of customers which include smallholder farmers, indigenous people and women agropreneurs. Apart from offering financial solutions, Agrobank also facilitates entrepreneur development through capacity building while ensuring the growth of the agriculture industry as a sustainable contributor to the country’s GDP. LAPORAN TAHUNAN 2018 ANNUAL REPORT 59
  65. PENYATA PERANTARAAN BERASASKAN NILAI (VBI): MENURUT CARA AGROBANK VALUE-BASED INTERMEDIATION (VBI) STATEMENT: THE AGROBANK WAY Salah satu isu yang memberi kesan kepada peladang pertanian adalah hubungan pasaran yang lemah kerana mereka merupakan komuniti yang kurang mendapat perhatian. Ini memberi impak kepada pendapatan mereka serta meletakkan mereka dalam kitaran pelaburan yang rendah dan kemiskinan. Di sinilah Agrobank berperanan dengan memberi nilai dan sumbangan ke arah kesejahteraan pekebun kecil. Agrobank menyediakan akses kredit kepada pekebun kecil menerusi program pembiayaan mikro yang khusus. Ini secara tidak langsung memerangi orang tengah daripada rantaian pengedaran dan platform pihak berkepentingan yang pelbagai bagi membolehkan pekebun kecil ini mendapat akses terus kepada pasaran. 60 AGROBANK Di samping itu, Bank terus berusaha untuk mengukuhkan rangkuman kewangan dengan memfokuskan sokongan mereka kepada golongan 40% terbawah dalam kumpulan pendapatan isi rumah (B40). Sebagai salah satu penyedia pembiayaan mikro utama, kami menawarkan pembiayaan sehingga RM30,000 kepada mereka yang terlibat dalam perniagaan pertanian dan asas tani melalui skim-skim pembiayaan AgroTERAS, Paddy-i dan Micro ESP-i. Pada tahun 2018, kami telah mencatatkan peningkatan sebanyak 33.0% dalam pembiayaan B40, berbanding tahun lepas. Kadar keutamaan turut ditawarkan kepada mereka yang menjalankan kegiatan pengeluaran makanan. Pembiayaan bagi segmen ini adalah kritikal untuk membantu komunitinya menghapuskan kemiskinan, sambil mempertingkatkan kualiti kehidupan mereka. One of the most pressing issues impacting agriculture farmers is poor connections to markets as they are the unserved and underserved segments of society. This has an impact on their direct income and keeps them in a cycle of low investment and poverty. This is where Agrobank serves its value proposition and contributes directly towards uplifting the well-being of the smallholder farmers. Agrobank provides access to credit to smallholder farmers through targeted programme-based microfinancing solutions. This invariably removes the middlemen from the distribution chain and multi-stakeholder platforms and allows these smallholders direct access to the market. Additionally, in support of the financial inclusion agenda, the Bank focuses on supporting the bottom 40% of household income group (B40). We are one of the foremost providers of affordable micro-financing products, providing financing of up to RM30,000 through the Agro Teras, Paddy-i and Micro ESP-i financing schemes, among others to those who are involved in agriculture and agro-based businesses. For 2018, we recorded an increase of 33.0% in B40 financing accounts compared to the previous year. Preferential rates are also offered to those in food production ventures. Financing to this segment is critical to help the community eradicate poverty and increase quality of life. Semenjak dimulakan pada tahun 2005, Nat Mega Enterprise telah berjaya meningkatkan kedudukan mereka sebagai pembekal produk soya seperti tempe, dan minuman berasaskan buah laici, longan dan cincau yang terkemuka di Melaka. Syarikat ini telah memanfaatkan pembiayaan oleh Agrobank semenjak tahun 2008, dan kini telah berjaya mengembangkan produk mereka ke New Zealand. Buat masa ini, produk Nat Mega Enterprise boleh didapati di Mydin, Family Store, di samping kedai-kedai runcit dan restoran-restoran, terutamanya di Melaka. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Nur Aisyah Tey Abdullah Nat Mega Enterprise Pemenang Anugerah Agropreneur Mikro 2018 Winner of Micro Agropreneur Award 2018 Nat Mega Enterprise started its business in 2005 and has since forged a strong path ahead to be a foremost supplier of soy products such as tempe, and fruit based drinks such as laici, longan and cincau in Malacca. Through the financing support extended by Agrobank since 2008, the company has been able to expand its product reach to New Zealand. Nat Mega Enterprise currently has its products gracing the shelves of Mydin, Family Store, as well as provision stores and restaurants predominantly in Malacca.
  66. Kamaruzzaman Abdul Jalil mula menerokai industri penternakan lembu pada usia yang muda . Dari mulanya, beliau telah memilih Agrobank sebagai rakan syarikat untuk membantu membiayai dan memberikan nasihat melalui ADP. Semenjak ditubuhkan pada tahun 2013, perniagaan Kamaruzzaman telah berkembang kepada 1,500 ekor lembu yang meletaknya sebagai salah satu pembekal daging lembu terkemuka di Malaysia. Hari ini, kejayaan Kamaruzzaman digunakan oleh usahawan ternakan yang lain sebagai inspirasi untuk mendorong kejayaan mereka sendiri. Kamaruzzaman turut meluangkan masa untuk berkongsi pengetahuan beliau dengan para pelajar bagi menyokong usaha Agrobank dalam menyediakan pendidikan pengurusan perniagaan pertanian untuk pelanggan. Kamaruzzaman Abd Jalil Desa Selatan Beef Sdn. Bhd. Anugerah Agropreneur Muda Winner of Young Agropreneur Award 2018 Kamaruzzaman Abdul Jalil entered the cattle breeding industry at a very young age, choosing Agrobank from the onset to be the company’s partner in financing and in business advisory through the ADP. Since the business was established in 2013, Kamaruzzaman has today grown his livestock to over 1,500 cattle, and is one of the leading beef suppliers in Malaysia. Today, Kamaruzzaman takes inspiration from Agrobank’s efforts to educate its customers on agriculture business management by being a benchmark reference to other feedlot entrepreneurs as well as lending his time to share his knowledge with students. LAPORAN TAHUNAN 2018 ANNUAL REPORT Meningkatkan Tahap Sara Diri Increase the Self-Sufficiency Levels (SSL) Matlamat 2.3 Meningkatkan tahap sara diri bagi produk pertanian dan asas tani, untuk menstabilkan kadar jaminan makanan, khususnya susu segar, padi, daging lembu, daging kambing, cili dan agromakanan. Goal 2.3 Increase the self-sufficiency level of agriculture and agro-based products to achieve stable food security, focusing on dairy milk, paddy, beef, mutton, chillies and agro-food Mandat Agrobank turut diselaraskan dengan 5 Hala Tuju Strategik yang ditetapkan oleh Kementerian Pertanian dan Industri Asas Tani (MOA). Salah satu strategi yang digariskan adalah pemodenan dan penambahbaikan pengeluaran makanan untuk menjamin kemampanan bekalan makanan dan harga makanan, dengan tumpuan khusus pada padi, ruminan, perikanan, susu segar dan produk makanan lain. Sehubungan dengan itu, Agrobank menggalakkan kemampanan dalam pengeluaran makanan, khususnya bagi subsektor perusahaan padi, ruminan dan perikanan, dengan menyediakan pembiayaan merentasi rantaian nilai industri pertanian. Usaha ini dijalankan seiring dengan matlamat kerajaan untuk meningkatkan tahap sara diri bagi produk pertanian dan asas tani. Agrobank’s mandate is also aligned to the 5 Strategic Directions (5 Halatuju) of the Ministry of Agriculture and Agro-based Industries (MOA). In particular, one of the areas outlined in the strategy is to modernise and improve food production to ensure the sustainability of food supply and food prices, with a particular focus on paddy, ruminant, fisheries, dairy milk and other food items. In this regard, Agrobank supports the sustainability of food production, in particular, the sub-sectors of paddy, ruminant and fisheries through the provision of financing across the value chain of the agriculture industry. This is to support the government’s aim to increase the self-sufficiency levels of agriculture and agrobased products. Pada tahun kajian, pembiayaan Bank telah meningkat sebanyak 21% bagi subsektor yang disasarkan. The Bank increased its financing to the targeted sub-sectors by 21% for the year in review. Daging Lembu/Beef 25.5% Susu Segar/Dairy Milk 58.25% Padi/Paddy 70.3% Daging Kambing/Mutton 10.7% Cili/Chillies 38.8% 61
  67. PENYATA PERANTARAAN BERASASKAN NILAI (VBI): MENURUT CARA AGROBANK VALUE-BASED INTERMEDIATION (VBI) STATEMENT: THE AGROBANK WAY Menyediakan Akses kepada Pembiayaan merentasi Rantaian Nilai Pertanian Provide Access to Financing across Agriculture Value Chain Matlamat 2.3 Merangka program pembiayaan untuk menyokong model perniagaan merentasi rantaian nilai pertanian • Model Perladangan Kontrak - Ladang Rakyat - BERNAS Paddy-i - Program Berkelompok Fertigasi Cili •Skim Kredit bagi Pengeluaran Makanan • Tabung Untuk Makanan (3F) •Hartani-i (pembiayaan pembelian tanah) Sepanjang tahun-tahun lepas, Agrobank telah meluaskan portfolio pembiayaan mereka untuk memenuhi keperluan seluruh rantaian nilai pertanian, termasuklah aktiviti huluan dan aktiviti hiliran dalam seluruh kitaran keusahawanan. Ini terdiri daripada pengeluaran, pemprosesan, penyimpanan, pemasaran serta perkhidmatan lain. 62 AGROBANK Goal 2.3 Design financing programmes to support business model across the agriculture value chain • Contract Farming Model - Ladang Rakyat - BERNAS Paddy-i -Group Chilli Fertigation Programme •Food Production Credit Scheme • Fund for Food (3F) •Hartani-i (land purchase financing) Over the years, Agrobank has expanded its portfolio of financing solutions to encompass the entire agriculture value chain that meets their needs, including upstream and downstream activities and the entire life cycle of entrepreneurship. These would range from production, processing, storage, marketing and other services. Agrobank menyediakan rangkaian produk kewangan yang luas bagi memenuhi keperluan seluruh rantaian nilai pertanian Agrobank provides a wide range of financial solutions to cater to the entire agriculture value chain Pengeluaran/ Production Pemprosesan/ Processing Pemasaran/ Marketing Perkhidmatan/ Services Pembiayaan berjangka/ Term financing Pembiayaan berjangka/ Term financing Pembiayaan berjangka/ Term financing Pembiayaan berjangka/ Term financing Pembiayaan modal kerja/ Working capital financing Pembiayaan modal kerja/ Working capital financing Pembiayaan modal kerja/ Working capital financing Pembiayaan modal kerja/ Working capital financing Pembiayaan mesin & peralatan/ Machinery & equipment financing Pembiayaan mesin & peralatan/ Machinery & equipment financing Pembiayaan mesin & peralatan/ Machinery & equipment financing Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Pembiayaan modal kerja perdagangan/Trade working capital financing
  68. Bank menyediakan penyelesaian pembiayaan yang inovatif seperti Skim Kredit bagi Pengeluaran Makanan , Tabung Untuk Makanan (3F), dan Hartani-i (pembiayaan pembelian tanah). The Bank has developed innovative financing solutions such as the Food Production Credit Scheme, Fund for Food (3F) and Hartani-i (land purchase financing). Dalam memikul mandat ini, Agrobank menjalankan programprogram kerjasama dengan rakan-rakan strategik untuk meluaskan pembiayaan kepada komuniti pertanian. Agrobank telah membentuk kerjasama dengan Pertubuhan Peladang Kebangsaan (NAFAS) di Kelantan dan Selangor, untuk menyediakan skim Pembiayaan Berkelompok Fertigasi Cili, di mana penanam cili di bawah NAFAS boleh memohon kemudahan kredit di bawah skim ini, tanpa sebarang cagaran. In carrying out this mandate, Agrobank conducts partnership programmes with strategic partners to extend financing facilities to agricultural communities. Agrobank has formed collaborations with the National Farmers’ Association (NAFAS) in Kelantan and Selangor to provide the Chilli Fertigation Group Financing scheme. Chilli farmers in NAFAS may apply for credit facility under this scheme without the need to provide any collateral. Agrobank turut menandatangani Memorandum Persefahaman (MoU) dengan Lembaga Kemajuan Pertanian Muda (MADA), untuk menyediakan bantuan pembiayaan kepada penanam padi. Program ini merangkumi pembiayaan daripada RM1,000 sehingga RM50,000, yang ditetapkan menurut keluasan ekar bendang padi. Program pembiayaan ini bertujuan untuk mempertingkatkan produktiviti dan memperbaiki taraf kehidupan bagi lebih daripada 50,000 peladang. Melalui kerjasama strategik dengan BERNAS, Agrobank telah menubuhkan program pembiayaan yang inovatif bagi penanaman semula padi, di mana Bank merupakan pembiaya utama bagi kemudahan pembiayaan BERNAS Paddy-i di bawah Projek Rakan Ladang (PRL) Bernas. Skim ini telah membantu meningkatkan kadar jaminan makanan dengan ketara, di samping menaikkan taraf kehidupan penanam padi negara kita, yang memperolehi pendapatan antara yang terendah dalam komuniti pertanian. Bank turut menjalinkan usaha sama dengan Perbadanan Pembangunan Pertanian Negeri Perak (PPPNP) untuk menjayakan Program Ladang Rakyat yang menawarkan pembiayaan untuk perusahaan kelapa sawit dan getah. Agrobank also signed a Memorandum of Understanding (MoU) with Muda Agricultural Development Authority (MADA) to provide financing to paddy farmers. The financing programme ranges from RM1,000 to RM50,000 proportionate towards the paddy field acreage size. The financing programme is aimed to foster better productivity and improve the well-being of more than 50,000 farmers. Agrobank designed an innovative paddy replantation financing programme through a strategic alliance with BERNAS. It acted as the main financier for the BERNAS’ Projek Rakan Ladang (PRL) scheme under the BERNAS Paddy-i financing facility. The scheme has contributed significantly to improving the state of national food security and livelihood of paddy farmers in the country, whose income are among the lowest in the agricultural community. The Bank has also worked with Perbadanan Pembangunan Pertanian Negeri Perak (PPPNP) for the Ladang Rakyat Programme to offer financing of palm oil and rubber. Mendorong Pertumbuhan SME dalam bidang Pertanian Support Growth of SMEs in Agriculture Matlamat 8.3 Menyediakan pembiayaan SME yang menggalakkan kesan berganda dalam mencipta peluang pekerjaan bagi komuniti di sekitar premis perniagaan Perusahaan industri kecil dan sederhana (SME) dalam rantaian nilai pertanian perlu diberikan akses kepada pembiayaan supaya mereka boleh mendapatkan peralatan kredit dan kewangan yang diperlukan untuk meluaskan perniagaan mereka. Kami menawarkan rangkaian program pembiayaan yang bersesuaian dengan setiap profil risiko SME. Goal 8.3 Provide SME financing that allows multiplier effect in creating job opportunities to the community around the business area Small and medium-sized enterprises (SMEs) involved in the agricultural value chain need access to financing so that they can access the credit and financial tools they need to grow their businesses. We offer a wide range of specialised financing programmes that suit each of the SMEs risk profiles. LAPORAN TAHUNAN 2018 ANNUAL REPORT 63
  69. PENYATA PERANTARAAN BERASASKAN NILAI (VBI): MENURUT CARA AGROBANK VALUE-BASED INTERMEDIATION (VBI) STATEMENT: THE AGROBANK WAY Rangkaian Program Pembiayaan Khusus yang menepati Profil Risiko SME Wide Range of Specialised Financing Programmes that suit SME’s Risk Profile 64 SME Baharu dan Tidak Berpengalaman •Program Agropreneur Muda (PAM) •MYAGROSIS •Skim Usahawan Tani Komersial Siswazah (SUTKS) AGROBANK New and Inexperienced SMEs •Young Agropreneur Programme (Program Agropreneur Muda (PAM)) •MYAGROSIS •Graduate Agropreneur Scheme (Skim Usahawan Tani Komersial Siswazah (SUTKS)) Kelemahan dalam Aliran Tunai •Agro Cash Line-i (CashLine-i) •Kredit pusingan jangka pendek (MK-i) •Pembiayaan Modal Kerja Perdagangan-i (TWCF-i) Cash Flow Difficulties •Agro Cash Line-i • Working Capital Financing (Modal Kerja-i) • Trade Working Capital Financing-i (TWCF-i) Pada tahun ini, kami telah menyaksikan peningkatan dalam pembiayaan SME dengan baki pembiayaan berjumlah RM4.1 bilion pada penghujung tahun 2018, iaitu lebih tinggi daripada baki pembiayaan sebanyak RM3.7 juta yang dicapai pada tahun 2017. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Selain memanfaatkan pembiayaan yang diterima untuk mengukuhkan perniagaan dan pengetahuan mereka dalam sektor pertanian, syarikat-syarikat ini turut menyumbang kepada penyediaan kerja baharu, yang diharapkan akan membawakan kesan berganda dalam ekonomi mereka. Usaha peladang untuk meningkatkan produktiviti dan hasil akan melihat keperluan mereka turut berubah, seperti keperluan untuk membeli lebih banyak traktor. Ini seterusnya akan menyokong perniagaan yang baru seperti kedai mekanik dan bengkel kereta. Contohnya, apabila kami menempatkan Ejen Perbankan di Bario, Sarawak, perkhidmatan Internet dan logistik (jalan dan kenderaan) juga perlu ditambah baik untuk membangunkan perniagaan pelanggan kami di sana. Perkembangan di kawasan ini turut melihat peningkatan dalam pembiayaan mikro bagi usahawan yang ingin meluaskan aktiviti agropelancongan seperti penyediaan inap desa yang menawarkan pelancong peluang untuk melawat bendang padi dan perusahaan garam di Bario. Pembiayaan Projek •Tabung Untuk Makanan (3F) •Pembiayaan Berjangka-i •Modal Usahawan 1 Malaysia (MUS1M-i) Project Financing •Fund For Food (3F) •Term financing-i (Pembiayaan Berjangka-i) •1 Malaysia Entrepreneur Capital-i (Modal Usahawan 1 Malaysia-i (MUS1M-i)) Asset Acquisition •Hartani-i •Skim Pembiayaan Bot Perikanan-i •Machinery and Equipment Financing-i (MAEF-i) Asset Acquisition •Hartani-i •Fishery Boat Financing Scheme-i (Skim Pembiayaan Bot Perikanan-i) •Machinery and Equipment Financing-i (MAEF-i) For the year in review, we saw increased receptiveness for SME financing with a total of RM4.1 billion financing balance as at end 2018, higher than the financing balance of RM3.7 billion for 2017, that we achieved. As these companies leverage on the financing given to elevate their business and knowledge in the agriculture sector, we also see them contributing to new job creations and acting as economic multipliers within their economy. As the farmers raise their productivity and yields, they then forge new requirements such as the needs for more vehicles like tractors, which in turn results in supporting businesses springing up such as mechanics and workshops. For instance, when we introduced the AGROAgent in Bario, Sarawak, the development of the businesses of our customers there resulted in a boost for internet connections and logistics (roads and vehicles). Additionally, as the area became more developed, enterprising home businesses sought microfinancing from us to expand agro-tourism businesses such as homestays who offer tourists the opportunity to tour Bario rice farms and salt mines.
  70. Mencipta Rantaian Nilai dan Menghubungkan Pasaran Create Value Chain and Market Linkages Untuk memastikan terdapatnya pembeli yang sedia membeli hasil pertanian daripada peladang , kami menghubungkan pengedar dan peladang melalui model perladangan kontrak kami bagi mewujudkan ekosistem rantaian nilai dalam subsektor masingmasing dalam industri pertanian. Menerusi model ini, kami bekerjasama dengan syarikat-syarikat terkemuka seperti Farm Fresh atau Perbadanan Johor, yang telah menandatangani perjanjian dengan kami untuk membeli hasil pertanian dalam kuantiti yang dipersetujui pada harga yang telah ditentukan. Usaha ini adalah penting, khususnya untuk melindungi pekebun kecil daripada ketidakstabilan harga pasaran dan ketiadaan pembeli. Situasi ini adalah saling bermanfaat bagi semua pihak di mana pembeli sedia ada akan membeli daripada pembeli, sementara pembeli pula akan sentiasa dibekalkan dengan bekalan yang berterusan. To ensure that there are ready buyers for agriculture produce, we work with distributors and farmers to connect them through our contract farming model thereby creating the ecosystem of value chain within the respective sub-sectors of the agriculture industry. Through this model, we work with strong anchor companies such as Farm Fresh and Johor Corp who have agreements in place to purchase agreed quantities of agricultural produces at prices that are established in advance. This is especially important to smallholders as they will not be susceptible to the vagaries of fluctuating market prices in the event of non-ready buyers. It is a win-win situation for all parties as the farmers have ready buyers and the buyers are assured of sustained supply. Di bawah program pembiayaan mikro mereka, Agrobank mengenal pasti syarikat-syarikat utama yang sesuai sebagai pembeli tetap produk pertanian peladang seperti ayam pedaging, sayur-sayuran, susu segar dan buah-buahan. Menerusi kaedah ini, peladang boleh meningkatkan punca pencarian mereka dengan adanya pembeli yang bersedia untuk membeli hasil pertanian mereka. Sementara itu, syarikat yang bertindak sebagai pembeli tetap berpeluang untuk mengawal harga dan rantaian bekalan mereka. Program ini sudah pun berjalan, dan akan diterapkan merentasi pelbagai kumpulan produk subsektor seperti cili, susu segar, nanas, ayam pedaging dan padi. Under the Bank’s programme-based micro-financing solutions, Agrobank will identify suitable anchor companies which shall perform the role of an off taker of the agricultural products of the farmers such as chicken broilers, vegetables, dairy milk and fruits. Through this approach, the farmers will be able to improve their livelihood as they are assured of a ready-buyer for their produce, while the anchor company acting as the off taker will also be able to control prices and their supply chain. This approach is now already in place and is replicated across various sub-sector product groups such as chillies, dairy milk, pineapple, chicken broilers and paddy. Meningkatkan Nilai Selepas Tuai Increasing Post-Harvest Value Matlamat 8.2 Menyediakan penyelesaian pembiayaan yang menggalakkan pengeluaran dan hasil, sambil memastikan pemerolehan nilai selepas tuai, dan pematuhan amalan perniagaan yang mampan •Pembiayaan CAPEX untuk membiayai peralatan yang mengekalkan nilai selepas tuai •Menyokong usaha pemodenan dan penerapan teknologi baharu untuk meningkatkan hasil dan kecekapan Goal 8.2 Provide financing solutions that address advancement of production and yield, while securing post-harvest value and contributing to sustainable business practices •CAPEX financing for equipment to maintain postharvest value •Support modernisation and adoption of new technologies to increase yield and efficiency Bagi peladang kecil-kecilan, isu-isu seperti hayat simpan yang pendek, risiko kerosakan, serangan perosak, dan penyusutan kualiti adalah amat membebankan kerana ia boleh membawa kepada penurunan jualan dan kejatuhan harga. Agrobank menawarkan pembiayaan bagi pembelian mesin, peralatan, teknologi dan kemudahan penyimpanan yang mampu memanjangkan hayat simpan serta kemudahan penyimpanan umum atau yang khusus sektor bagi berbagai jenis hasil pertanian. The short shelf life of some agricultural produce combined with the risk of spoilage, pest attacks, and quality deterioration is a heavy burden on smallholder agropreneurs as it leads to distress sales and lower prices. Agrobank offers financial solutions that increases the shelf life, and general or sector-specific storage solutions that target different types of agricultural produce in agricultural machinery, equipment, technology and storage facilities. Penyimpanan selepas menuai adalah amat berguna bagi peladang kecil-kecilan yang tidak mempunyai pilihan selain menjual hasil pertanian mereka serta-merta selepas dituai, pada harga pasaran semasa disebabkan ketakutan hasil menjadi rosak. Menawarkan penyelesaian ruang simpanan kepada usahawan tani akan membantu mereka bertindak sebagai “penetap harga” dan bukannya “penerima harga”. Contohnya, pembiayaan capex disediakan bagi usahawan tani supaya mereka boleh membeli kemudahan penyimpanan seperti pendingin, peti sejuk, dan penyejuk beku bagi melanjutkan tempoh penyimpanan hasil yang mudah rosak dan mempertingkatkan nilai selepas tuai mereka. Post-harvest storage solutions are very useful to smallholder farmers, who have no option but to sell their agricultural produce immediately after harvest at prevailing local market prices, for fear of spoilage. By offering storage solutions, we have helped agropreneurs become “price makers” instead of “price takers.” For example, we provide capex financing for agropreneurs to purchase storage facilities such as chillers, cold rooms and freezers so that they can store their perishable produce for much longer and improve its post-harvest value. LAPORAN TAHUNAN 2018 ANNUAL REPORT 65
  71. PENYATA PERANTARAAN BERASASKAN NILAI (VBI): MENURUT CARA AGROBANK VALUE-BASED INTERMEDIATION (VBI) STATEMENT: THE AGROBANK WAY Kami turut membekalkan sokongan kepada para peladang yang ingin beralih kepada kaedah perladangan yang lebih moden seperti sistem ladang tertutup untuk perusahaan daging ayam, yang menyediakan keadaan optimum untuk mendapatkan hasil yang lebih baik dan mengurangkan risiko penyakit. Kami juga sedang merangka sistem penandaan dan pembungkusan produk buahbuahan seperti durian. Jika terdapat tuaian yang berpenyakit, punca penyakit boleh dikesan balik kepada ladang dan pohonnya untuk menangani isu pembekalan produk berkualiti rendah di pasaran secara proaktif. We also support farmers who are moving towards more modern methods of farming such as using close system farming houses for poultry which provides optimal conditions for better yields and mitigating risks such as diseases. We are also looking into the tagging and netting system for fruit products such as durians. Should there be a diseased harvest, the source of the fruit can be traced right back to the farm and the tree efficiently to manage the issue of poor products in the market proactively. PEMERKASAAN SOSIAL/SOCIAL EMPOWERMENT 66 AGROBANK Keadaan Semasa Current State Komuniti pertanian kekal sebagai salah satu segmen berpendapatan rendah di Malaysia. Pada tahun 2017, para peladang di Malaysia, termasuk mereka yang terlibat dalam penanaman padi, kegiatan perikanan dan penternakan lembu memperolehi pendapatan sebanyak kira-kira RM1,032 sebulan. The agriculture community remains one of the lower income segments in Malaysia. In 2017, farmers in Malaysia, including those involved in paddy, fishing and cattle breeding, earn approximately RM1,032 a month. Bank bermatlamat untuk meningkatkan status sosial komuniti pertanian sambil menambah baik taraf kehidupan komuniti terpinggir di kawasan luar bandar dan separa bandar, dengan memenuhi keperluan sosioekonomi mereka. Bank turut berpegang teguh pada tanggungjawab IKP dan prinsip VBI yang menggalakkan kesaksamaan dan keterangkuman dalam pertumbuhan komuniti. Agrobank berperanan untuk menggalakkan perkembangan berterusan dalam sektor pertanian, dan meningkatkan taraf hidup para petani dan komunitinya seiring dengan perkembangan tersebut. The Bank aims to elevate the social well-being of the agriculture community and uplift the lives of the marginalised community in rural and semi-urban areas by addressing the socio-economic needs. The Bank stands by its DFI mandate and the VBI principles that promote equitable and inclusive growth of the community. Agrobank’s role is to ensure that as it spurs the agriculture sector to thrive; its participants – the farmers and the community – thrive as well. Matlamat 10.1 & Matlamat 10.2 Menyediakan pembiayaan mikro bagi pelanggan berpendapatan rendah yang disasarkan termasuk komuniti orang asli dan kumpulan berpendapatan rendah B40, wanita, dan golongan kurang upaya • Agro TERAS (pembiayaan pihak ke pihak) • Pembiayaan Mikro Agro Nisaa’-i •Pembiayaan Agro Bakti bagi orang kurang upaya (OKU) Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Sebagai sebuah IKP, kami ingin memastikan sokongan diberikan kepada komuniti terbiar supaya mereka berpeluang untuk merapatkan jurang pendapatan antara kawasan luar bandar dan kawasan separa bandar. Program pembiayaan dan perlindungan kami ditawarkan kepada rangkaian komuniti yang luas termasuk golongan orang asli, kumpulan berpendapatan rendah B40, wanita, individu bawah 40 tahun dan OKU. Kesemua usaha ini dijalankan sejajar dengan SDG2: Matlamat 2.3. Antara peranan Agrobank dalam mencipta dan menyampaikan nilai melalui aktiviti perniagaan kami yang tertumpu pada pemerkasaan sosial: 1)Melindungi Semua Segmen Pendapatan di Mana Perlu 2) Mempertingkatkan Rangkuman Kewangan 3)Menyediakan Peluang untuk Menjana Pendapatan bagi Orang Kurang Upaya (OKU) 4)Menyokong Perkembangan Agropreneur Wanita 5)Meluaskan Jangkauan melalui Perkongsian Pengetahuan 6)Mengiktiraf Pencapaian Melalui Anugerah Agropreneur Agrobank (3A) Goal 10.1 & Goal 10.2 Provide micro-financing to targeted lower-income and typically marginalised customer segments including indigenous community, lower income B40, women and disabled • Agro TERAS (peer-to-peer financing) • Agro Nisaa’-i (for women entrepreneurs) •Agro Bakti (for persons with disabilities (PWD)) As a DFI, we want to ensure that we extend the right support to uplift the marginalised community and give them the opportunity to bridge the income divide in rural and semi-urban areas. Our financing and protection facilities are catered to a broad community including the indigenous, lower income B40 community, women, youth under 40, and PWDs. These efforts are also in line with SDG2: Goal 2.3. Agrobank’s role in creating and delivering values through business activities centered on social empowerment includes: 1)Provide Affordable Protection for All Income Segments where it Counts 2) Greater Financial Inclusion 3) Provide Earning Opportunities for People with Disabilities (PWDs) 4) Support Women to Thrive as Agropreneurs 5) Outreach on Knowledge Sharing 6) Recognise Contributions Through Agrobank Agropreneur Award (3A)
  72. Melindungi Semua Segmen Pendapatan di Mana Perlu Provide Affordable Protection for All Income Segments Where it Counts Matlamat 1 .3 Goal 1.3 Menyediakan perlindungan takaful yang mampu dimiliki bagi segmen berpendapatan rendah • Takaful keluarga Agro Mabrur-i • Agro Nurani bagi golongan kurang upaya Providing affordable takaful protection for the lower-income segment • Agro Mabrur-i family takaful • Agro Nurani for the disabled Di Malaysia, kumpulan yang paling terdedah kepada kejutan ekonomi adalah golongan berpendapatan rendah dan sederhana terutamanya golongan B40. Ini disebabkan mereka tidak memiliki perlindungan yang mencukupi untuk bertahan daripada ketidaktentuan seperti ini. Untuk memantapkan usaha rangkuman kewangan kami, Agrobank telah melancarkan program perlindungan takaful yang bukan sahaja mampu dimiliki, tetapi turut memberikan perlindungan yang diperlukan. Takaful keluarga Agro Mabrur-i adalah produk takaful yang mampu dimiliki dengan memberikan perlindungan takaful premium serendah RM75 setahun sahaja. Produk ini telah dipilih oleh Bank Negara Malaysia untuk menyertai skim Perlindungan Tenang kerana ia memiliki kriteria-kriteria seperti mampu dimiliki, senang difahami dan kemudahan dalam proses tuntutannya. Agrobank juga merupakan institusi perbankan pertama yang merangka pelan perlindungan bagi individu kurang upaya. Pelan Agro Nurani menawarkan perlindungan kepada golongan kurang upaya dengan pelbagai manfaat yang merangkumi perlindungan kemalangan diri, kematian disebabkan oleh kemalangan, kematian biasa, dan rawatan perubatan yang disebabkan oleh kemalangan serta elaun hospital untuk kecederaan yang disebabkan oleh kemalangan. Pada tahun 2018, produk ini telah memperkenalkan manfaat perkhidmatan ambulans. The low and middle-income groups in Malaysia, especially the B40 households, tend to be the ones that are most vulnerable to economic shocks, as they do not have the adequate protection to shield them from such uncertainties. As part of Agrobank’s aim to ensure financial inclusion, the Bank introduced takaful protection programmes which are affordable yet provide the necessary coverage needed. The Agro Mabrur-i family takaful is an affordable takaful product with premiums as low as RM75 a year for takaful protection. This product was chosen by Bank Negara Malaysia to be in the Perlindungan Tenang scheme for its affordability, ease of understanding, and convenience of claiming when needed. Agrobank was also the first in the market to design a protection product for individuals with disabilities. The Agro Nurani is a protection plan for those who may be disabled and provides a range of benefits including personal accident, accidental death, natural death, and medical treatment due to an accident and hospital allowance for injuries caused by accidents. In 2018, ambulance benefits were introduced for this product. Mempertingkatkan Rangkuman Kewangan Greater Financial Inclusion Matlamat 1.3 Goal 1.3 •Memastikan komuniti yang tidak dan yang kurang mendapat perhatian diberikan akses kepada perkhidmatan pembiayaan untuk mempertingkatkan taraf ekonomi mereka • Ejen Perbankan •Ensuring unserved and underserved communities have access to financing services to better their economic situations •AGROAgents •Memperkasakan segmen berpendapatan rendah melalui penyediaan pembiayaan mikro untuk membantu mereka menjana pendapatan daripada perniagaan pertanian mereka, seterusnya meningkatkan status sosioekonomi mereka Sejajar dengan dasar Bank Negara Malaysia untuk mendorong rangkuman kewangan, Agrobank memainkan peranan penting dalam memantapkan, meluaskan, dan menggalakkan penglibatan komuniti, terutamanya komuniti yang kurang dan yang tidak mendapat perhatian di Malaysia. Dengan itu, Bank telah meluaskan jangkauan mereka kepada komuniti luar bandar, selain memanfaatkan platform perbankan elektronik untuk meningkatkan akses kepada perkhidmatan kewangan dan perkhidmatan berkaitan perbankan. •Empowering the lower income segments with micro-financing opportunities so that they can generate income from their agriculture-business, thereby improving their socio-economic status In line with Bank Negara Malaysia’s call for financial inclusion, Agrobank has played an important part in extending, expanding and engaging the community, especially the underserved and the unserved communities in Malaysia. The Bank has expanded its reach to rural communities as well as leveraged on electronic banking platforms to provide customers greater access to financial and banking related services. LAPORAN TAHUNAN 2018 ANNUAL REPORT 67
  73. PENYATA PERANTARAAN BERASASKAN NILAI (VBI): MENURUT CARA AGROBANK VALUE-BASED INTERMEDIATION (VBI) STATEMENT: THE AGROBANK WAY To reach rural communities, the Bank embarked on an AGROAgent banking platform. Agents were appointed in various locations to act on the Bank’s behalf and promote Agrobank services such as micro-financing, savings and remittance services. Untuk meluaskan capaian kepada komuniti luar bandar ini, Bank telah melancarkan platform ejen perbankan atau AGROAgent, di mana ejen-ejen ditempatkan di berbilang lokasi untuk bertindak sebagai wakil Bank, dan mempromosikan perkhidmatan Agrobank dalam pembiayaan mikro, simpanan dan pengiriman wang. As at end 2018, the AGROAgent network expanded by 226 new agents during the year in review. As we remain committed to grow the network, we continuously monitor the agent activity to ensure that the community derives value. For the year in review, we had 606 active agents, while agents that did not conduct any transactions for the year numbered 384. We will review the factors that contributed to the inactive agents and take mitigating steps such as reallocating or closing down the network in those particular locations. Pada penghujung tahun 2018, rangkaian Ejen Perbankan telah diluaskan dengan kemasukan 226 ejen baharu sepanjang tahun ini. Sejajar dengan komitmen kami untuk mengembangkan rangkaian kami, kegiatan ejen perbankan terus dipantau untuk memastikan komuniti memperolehi nilai yang sewajarnya. Bagi tahun ini, rangkaian kami merangkumi 606 ejen aktif, sementara bilangan yang tidak menjalankan sebarang urus niaga adalah seramai 384 ejen. Kami akan terus mengkaji semula faktor-faktor yang menyumbang kepada ketidakaktifan ejen-ejen dan akan mengambil langkah pengurangan seperti menempatkan semula atau menutup rangkaian di lokasi-lokasi tersebut. Peningkatan dalam Kehadiran Ejen Perbankan semenjak Ditubuhkan AGROAgent Growing Presence since Inception 6 4 3 68 8 5 AGROBANK 2 1 7 Wilayah/Region Bilangan Ejen/No of Agents Dis 2014/Dec 2014 Dis 2015/Dec 2015 Dis 2016/Dec 2016 Dis 2017/Dec 2017 Dis 2018/Dec 2018 WILAYAH/REGION 1 Melaka/Johor 2 19 33 100 132 Mengenai Kami WILAYAH/REGION 2 KL/Selangor/Negeri Sembilan 0 10 30 71 80 Prestasi Strategik Kami WILAYAH/REGION 3 Perak 0 13 47 119 114 WILAYAH/REGION 4 Kelantan/Terengganu 1 28 84 129 189 WILAYAH/REGION 5 Pahang 2 15 40 77 91 WILAYAH/REGION 6 Penang/Kedah/Perlis 2 15 38 97 146 WILAYAH/REGION 7 Sarawak 0 5 23 74 104 WILAYAH/REGION 8 Sabah 0 25 49 97 134 7 130 344 764 990 01 About Us 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information JUMLAH/TOTAL
  74. Usaha kami untuk meluaskan jangkauan kepada komuniti ini disokong oleh platform perbankan yang mantap , dengan penubuhan 192 cawangan dan penempatan 381 terminal layan diri di seluruh negara. Agrobank memanfaatkan saluran ini untuk meningkatkan rangkuman kewangan komuniti melalui penyediaan kemudahan perbankan asas kepada segmen yang kurang mendapat perhatian di kawasan luar bandar dengan memastikan keberkesanan kos. This reach to the community is supplemented with other banking platforms which include a nationwide presence of 192 branches, and 381 self-service terminals nationwide. Through these channels, Agrobank has been able to contribute to the community’s financial inclusion agenda by providing basic banking facilities to the underserved segments of the population in rural areas in a cost-effective manner. Menyediakan Peluang untuk Menjana Pendapatan bagi Orang Kurang Upaya (OKU) Provide Earning Opportunities for People with Disabilities (PWDs) Matlamat 1.4 Goal 1.4 Menyediakan peluang kepada golongan kurang upaya untuk menjalankan perniagaan pertanian •Program pembiayaan Agro Bakti bagi orang kurang upaya (OKU) • Takaful Agro Nurani bagi golongan kurang upaya Providing disabled community with opportunities to participate in agriculture business •Agro Bakti financing programme for persons with disabilities (PWD) • Agro Nurani takaful for the disabled Program Agro Bakti adalah program pembiayaan khusus buat orang kurang upaya (OKU), bagi memberi mereka peluang untuk berdikari dan menjana pendapatan sendiri. Agro Bakti menyediakan pembiayaan untuk perniagaan baharu dan sedia ada dalam sektor pertanian dengan pembiayaan dari RM3,000 sehingga RM50,000, tanpa cagaran dan pada kadar pulangan tetap. Dilancarkan pada tahun 2016, program ini adalah program pertama sepertinya di Malaysia. Pada tahun 2018, terdapat baki pembiayaan sebanyak RM1.05 juta merangkumi 123 akaun. Selaras dengan usaha berterusan kami untuk menyokong OKU, Agro Nurani turut ditawarkan dengan pelbagai manfaat perlindungan disediakan buat kebaikan mereka. We introduced Agro Bakti which is a financing programme for persons with disabilities (PWD) so that they have the opportunity to be independent and earn an income. Agro Bakti provides financing to new and existing businesses within the agriculture sector from RM3,000 to RM50,000 without the need for collaterals and at a fixed rate of returns. This is the first of its kind financing programme in the country launched in 2016. For the year in review, we saw RM1.05 million in financing balance from 123 accounts. In line with continuing our support of PWDs, we also offer Agro Nurani takaful which provides a range of protection benefits for the PWDs. Penyakit glaukoma yang mengganggu penglihatan Zarida tidak pernah menghalang beliau daripada memajukan perniagaan penjualan snek tradisional yang dijalankannya. Sejak ditubuhkan pada tahun 2008, syarikat beliau diuruskan berpandukan pelan perniagaan serta visi dan misi yang kukuh, untuk terus mendorong kejayaannya. Pembiayaan yang diterima daripada Agrobank pada tahun 2009 telah dimanfaatkan oleh Zarida untuk mendalami cara menguruskan perniagaan dengan baik. Zarida bertegas untuk tidak membenarkan kekurangannya menghalang beliau daripada mengecapi kejayaan sama yang boleh dicapai oleh mana-mana orang lain. Zarida Zakaria Sinar ZZ Enterprise Anugerah Agropreneur bagi Orang Kurang Upaya (OKU) Winner of People with Disabilities (PWD) Agropreneur Award 2018 Despite the challenges of being visually impaired due to glaucoma, Zarida did not let any of it stand in her way as she forged ahead with her business of selling traditional snacks. Since the inception of her company in 2008, she has a clear business plan and a sound vision and mission statement that she uses as a guide to drive her to succeed. With the help of financing from Agrobank in 2009, she pushed herself to learn as much as she could about running a successful business. She doesn’t believe that one should have excuses not to succeed like any other people. LAPORAN TAHUNAN 2018 ANNUAL REPORT 69
  75. PENYATA PERANTARAAN BERASASKAN NILAI (VBI): MENURUT CARA AGROBANK VALUE-BASED INTERMEDIATION (VBI) STATEMENT: THE AGROBANK WAY Menyokong Perkembangan Agropreneur Wanita Support Women to Thrive as Agropreneurs Matlamat 1.4 Goal 1.4 Menyediakan pembiayaan mikro untuk usahawan wanita • Pembiayaan Mikro Agro Nisaa’-i Provide micro-financing for women entrepreneurs • Agro Nisaa’-i Micro-Financing Hari ini, wanita memainkan peranan yang lebih besar dalam pembangunan sektor pertanian. Agrobank ingin memperkasakan segmen ini supaya mereka sedar akan kemampuan mereka untuk mengawal sendiri masa depan kewangan mereka, dan mengambil peluang yang ada untuk meningkatkan pendapatan serta mengembangkan perniagaan mereka dalam sektor perniagaan. 70 AGROBANK Program Pembiayaan Mikro Agro Nisaa’-i telah dilancarkan oleh Bank, khusus buat usahawan wanita, terutamanya mereka yang berada dalam kumpulan B40. Kemudahan pembiayaan mikro ini membolehkan usahawan wanita memulakan perniagaan pertanian dan industri asas tani, sambil menikmati perlindungan kemalangan diri selama setahun, melalui insurans takaful yang ditawarkan. In developing the agriculture sector, women are playing a bigger role today. Agrobank wants to empower this segment to be in control of their financial destiny and see it as a means of increasing their income and expand their businesses in the agriculture sector. The Bank launched the Agro Nisaa’-i Micro-Financing Programme specifically for women agropreneurs, especially those in the B40 group. This micro-financing facility helps women entrepreneurs to venture into agriculture and agro-based businesses, while providing personal accident takaful insurance coverage for a year. Puan Yap Di Bee bermotivasi tinggi untuk menjayakan perniagaan pengeluaran jagung beliau. Sebagai pelanggan Agrobank semenjak tahun 2006, Marine Gold Marketing telah mencapai pelbagai peningkatan yang bukan sahaja meliputi produk jagung, tetapi turut merangkumi sayur-sayuran segar dan beku, serta makanan yang diproses. Puan Yap bertekad untuk meletakkan Marine Gold Marketing sebagai pengeluar jagung manis terkemuka di Asia. Syarikat ini turut diperkukuhkan melalui pensijilan MyGAP dan MyORGANIC. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Yap Di Bee Marine Gold Marketing Sdn. Bhd. Anugerah Agropreneur Wanita Winner of Woman Agropreneur Award 2018 Madam Yap Di Bee is a woman of high motivation who is driven to succeed in her corn producing business. Marine Gold Marketing has been a customer of Agrobank since 2006 and has made great inroads not just in corn production, but also in fresh and frozen vegetables and processed food. Madam Yap has ambitions for Marine Gold Marketing to be the foremost sweet corn producer in Asia. The company is certified by MyGAP and MyORGANIC.
  76. Meluaskan Jangkauan melalui Perkongsian Pengetahuan Outreach on Knowledge Sharing Goal 8 .3 Goal 8.3 Membekalkan pengetahuan dan memantapkan kemahiran pengurusan untuk membina ekosistem yang berpengetahuan luas: • Program Pembangunan Agropreneur Provide knowledge and management know-how support to create knowledgeable eco-system: • Agropreneur Development Programme Agrobank membangunkan program pembangunan usahawan yang berkesan untuk melengkapkan usahawan tani dengan pengetahuan yang relevan, selain program membina keupayaan untuk membantu mereka menjadi usahawan yang berjaya. Salah satu kelemahan dalam industri ini adalah kekurangan kesedaran terhadap amalan perladangan yang terbaik, dan ini menyebabkan produktiviti hasil berkurangan. Matlamat Bank untuk membangunkan kemahiran dan kecekapan usahawan tani telah membawa kepada penubuhan jabatan khusus dalam Bank, yang bertujuan untuk memacu objektif ini lebih jauh. Bahagian Pembangunan Usahawan diletakkan di bawah Pusat Kecemerlangan di Agrobank, dan bertanggungjawab untuk merangka, membangun, dan menyediakan aktiviti khidmat nasihat, melalui Program Pembangunan Agropreneur (ADP). ADP menyediakan usahawan tani dengan program pembangunan yang relevan dalam empat bidang strategik utama - Operasi, Pengurusan, Pengurusan Kewangan, dan Pemasaran. Agrobank invests significantly in entrepreneurial development programmes that help to equip agropreneurs with relevant knowledge and capacity building programmes to be successful entrepreneurs. This is because we realise one of the key pain points in the industry is the low awareness about farming best practices which leads to low productivity yields. Given the importance the Bank places on the development skills and acumen of its agropreneurs, a dedicated department was set up within the Bank to drive this objective further. The Entrepreneur Development Section which sits within the Centre of Excellence at Agrobank is responsible for designing, development and advisory services activities through the Agropreneur Development Programme (ADP). The ADP provides agropreneurs relevant development programmes that centre around four key strategic areas – Operational, Management, Financial Management, and Marketing. Ke Arah Kecemerlangan Perniagaan di Sektor Pertanian Towards Business Excellence in Agriculture Sector Motivasi Asas Keusahawanan & Asas Pengurusan Keusahawanan Basic Entrepreneurship and Entrepreneurship Management Pengurusan Strategik Perniagaan Strategic Business Management Bilangan Program No. of Programmes Bilangan Program No. of Programmes Bilangan Program No. of Programmes 2017 8 2018 11 Jumlah Peserta Total Participants 2017 207 2018 110 2017 7 2018 13 Jumlah Peserta Total Participants 2017 210 2018 471 2017 7 2018 1 Jumlah Peserta Total Participants 2017 201 2018 29 LAPORAN TAHUNAN 2018 ANNUAL REPORT 71
  77. PENYATA PERANTARAAN BERASASKAN NILAI (VBI): MENURUT CARA AGROBANK VALUE-BASED INTERMEDIATION (VBI) STATEMENT: THE AGROBANK WAY Program ADP dilaksanakan melalui dua platform utama iaitu cabang latihan, dan khidmat nasihat perniagaan. Di bawah cabang latihan, modul-modul dirangka dan dibentuk menurut topik-topik seperti kecemerlangan perniagaan dalam aktiviti pertanian, asas-asas dalam pengurusan kewangan, dan pengurusan strategik dalam perniagaan. Perancangan program kami pada setiap tahun dilaksanakan berdasarkan penilaian dan keperluan. Bagi tahun ini, kami telah menumpukan lebih fokus pada program Motivasi Asas Keusahawanan & Asas Pengurusan Keusahawanan. Dari sudut perkhidmatan nasihat, Bank atau agensi-agensi relevan menganjurkan sesi bersemuka melalui seminar, persidangan dan kunjungan ke tapak perniagaan. Kelas perniagaan turut diadakan untuk menyediakan pengajaran secara individu, dan mendalami cabaran-cabaran spesifik yang dihadapi oleh usahawan tani supaya mereka boleh mendapatkan kaunseling yang relevan dan memantapkan kemahiran yang diperlukan untuk menangani masalah mereka, sambil mempertingkatkan pengetahuan mereka ke arah kecemerlangan perniagaan. Mengiktiraf Pencapaian Melalui Anugerah Agropreneur Agrobank (3A) 72 AGROBANK Bank berusaha untuk membangunkan usahawan tani dan mengganjari pencapaian mereka, bagi menggalakkan mereka mencapai kejayaan dan menyampaikan nilai yang lebih bermakna. Bagi Bank, usahawan yang berjaya mampu memacu pertumbuhan dan kemakmuran, seterusnya menginspirasikan perubahan positif yang bukan sahaja memberi impak berkesan untuk diri mereka, tetapi turut memotivasikan individu lain untuk menjalankan usaha yang sama demi meningkatkan taraf hidup mereka. Sehubungan dengan itu, Anugerah Agropreneur Agrobank (3A) dianjurkan untuk mengiktiraf kecemerlangan dalam lapan kategori yang dinilai menurut prestasi, amalan terbaik dan rekod pembiayaan pelanggan. Bagi tahun 2018, para pemenang telah menerima hadiah trofi, sijil dan wang tunai. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information The ADP is executed through two main platforms which are training and business advisory services. Under the training arm, modules are created and curated on topics such as business excellence in agricultural activities, basics in financial management, and strategic management in business. We organise our programmes for the year based on assessment and needs basis. For the year in review, we placed higher focus on the Motivasi Asas Keusahawanan & Asas Pengurusan Keusahawanan programme. For the business advisory services, face-to-face sessions are conducted through seminars, conventions and site visits that are organised by the Bank or through relevant agencies. Business clinics are also organised to provide more individualised attention and delve into specific challenges faced by the agropreneurs so that they can receive the relevant counselling and development skills necessary to address their concerns and scale up on their knowledge towards business excellence. Recognise Contributions through Agrobank Agropreneur Award (3A) Part of developing the agropreneurs is to recognise and reward them so that they can be inspired to move on to greater heights and deliver value. The Bank believes that successful entrepreneurs are able to drive growth and prosperity, and inspire positive change that impacts not only themselves, but also motivate others to embark on a similar journey towards better prosperity. To that end, we organise the Agrobank Agropreneur Awards (3A) that recognises the Bank’s customers in eight categories for their excellent performance, best practices and good financing records. For 2018, the 3A winners received trophies, certificates and cash prizes. Senarai Pemenang Anugerah Agropreneur Agrobank 2018 Winners of 2018 Agrobank Agropreneur Awards •Anugerah Agropreneur Cemerlang Excellent Agroporeneur Award –Jaffri Ahmad and Mazlina Kamarudin, Bismi Cergas Sdn. Bhd. •Anugerah Agropreneur Muda Young Agropreneur Award –Kamaruzaman Abd Jalil, Desa Selatan Beed Sdn. Bhd. •Anugerah Agropreneur Mikro Micro Agropreneur Award –Nur Aisyah Tey Abdullah, Nat Mega Entreprise •Anugerah Agropreneur bagi Orang Kurang Upaya (OKU) People with Disabilities (PWD) Agropreneur Award – Zarida Zakaria, Sinar ZZ Enterprise •Anugerah Agropreneur Wanita Woman Agropreneur Award –Yap Di Bee, Marine Gold Marketing Sdn. Bhd. •Anugerah Agropreneur Inovatif Innovative Agropreneur Award – Dato’ Lau Hai Po, Lai Hin Trading Sdn. Bhd. •Anugerah Pelanggan Setia (Individu) Loyal Customer Award (Individual) – Nazri Mohammad •Anugerah Pelanggan Setia (Syarikat) Loyal Customer Award (Company) – Medan Juara Sdn. Bhd.
  78. Selaku pemilik Bismi Cergas Sdn . Bhd., Jaffri Ahmad dan Mazlina Kamarudin memulakan perniagaan daging ayam mereka pada tahun 1994. Daripada permulaan kecil-kecilan, pasangan ini kini merupakan pembekal daging ayam terbesar di Utara Malaysia, di bawah jenama Ayam Bismi. Pencapaian dan kejayaan syarikat ini telah diperolehi bersandarkan dedikasi dan kepimpinan mereka yang cemerlang. Pembiayaan Agrobank turut membantu perniagaan ini mempertingkatkan keberkesanan ladang penternakan ayam mereka, sekaligus meningkatkan kualiti produk mereka. Jaffri Ahmad and Mazlina Kamarudin Bismi Cergas Sdn. Bhd. Pemenang Agropreneur Agrobank bagi Tahun 2018, Usahawan Cemerlang Winner of Excellent Agropreneur Award 2018 Operasi syarikat diketuai oleh Jaffri Ahmad, sementara Mazlina Kamaruddin menjalankan pengurusan dan mentadbir syarikat. Gandingan ini terbukti berjaya sebagai pendorong utama yang memastikan kecemerlangan prestasi syarikat. Pelanggan korporat syarikat mereka turut merangkumi Ayamas Food Corporation Sdn. Bhd. Jaffri Ahmad and Mazlina Kamarudin, owners of Bismi Cergas Sdn. Bhd. started their poultry business in 1994. From humble beginnings, the couple persevered to become the largest poultry supplier in northern Malaysia with the brand Ayam Bismi. The achievement and success of the company is a result of their dedication and exemplary leadership. Agrobank’s financing helped the business to upgrade its farm to be more conducive to better rearing of chickens, thereby increasing quality of their products. Jaffri Ahmad leads the operations matters while Mazlina Kamarudin focuses on management and administration matters. This combination proves to be the key success for the company’s excellent performance. Among their corporate clienteles are Ayamas Food Corporation Sdn. Bhd. KELESTARIAN ALAM SEKITAR/ENVIRONMENTAL SUSTAINABILITY Keadaan Semasa Current State Industri pertanian adalah satu-satunya sektor terbesar di dunia yang menyediakan punca pencarian bagi 40% populasi global pada hari ini. Ia membentuk sumber pendapatan dan pekerjaan terbesar bagi golongan terpinggir di kawasan luar bandar. Di serata dunia, 500 juta ladang kecil yang masih bergantung kepada pengairan air hujan, menyediakan sehingga 80% daripada kegunaan makanan bagi sebahagian besar ekonomi maju. The agriculture industry is the single largest employer in the world, providing livelihoods for 40% of today’s global population. It is the largest source of income and jobs for poor rural households. 500 million small farms worldwide, most still rainfed, provide up to 80% of food consumed in a large part of the developing world. Bank menggalakkan aktiviti-aktiviti pertanian yang dapat mengukuhkan kemampanan bekalan makanan negara melalui penerapan amalan pertanian yang baik, dengan penekanan terhadap aspek-aspek alam sekitar, ekonomi dan sosial bagi memastikan hasil pengeluaran yang selamat, dan berkualiti tinggi. Antara peranan Agrobank dalam mencipta dan menyampaikan nilai melalui aktiviti perniagaan kami yang tertumpu pada kelestarian alam sekitar: 1) 2) Menggalakkan Amalan-Amalan Pertanian yang Baik Mendorong Pemodenan demi Kelestarian Alam Sekitar The Bank looks at promoting agricultural activities that strengthen the country’s national food sustainability, while helping encourage the application of good agriculture best practices that emphasises on environment, economy and social aspects to ensure the produce is safe and of good quality. Agrobank’s role role in creating and delivering values through business activities centered on environmental sustainability includes: 1) 2) Promote Good Agricultural Practices Support Modernisation for Environmental Sustainability LAPORAN TAHUNAN 2018 ANNUAL REPORT 73
  79. PENYATA PERANTARAAN BERASASKAN NILAI (VBI): MENURUT CARA AGROBANK VALUE-BASED INTERMEDIATION (VBI) STATEMENT: THE AGROBANK WAY Menggalakkan Amalan-amalan Pertanian yang Baik Promote Good Agricultural Practices 74 AGROBANK Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Matlamat 12.6 Goal 12.6 •Mendorong amalan-amalan pertanian dan alam sekitar yang baik •Menggalakkan pelanggan Agrobank untuk memperolehi pensijilan Amalan Pertanian Baik Malaysia (MyGAP) •Menggalakkan peladang kelapa sawit untuk memperolehi sijil Kemampanan Minyak Sawit Malaysia (MSPO) •Menggunakan Penilaian Impak Alam Sekitar (EIA) untuk menilai permohonan pembiayaan oleh perniagaan yang menerapkan amalan persekitaran yang baik •Advocating good agriculture and environmental best practices •Encouraging Malaysian Good Agricultural Practice (MyGAP) certification to Agrobank customers •Encourage its palm oil customers to obtain the Malaysian Sustainable Palm Oil (MSPO) certification •Use the Environment Impact Assessment (EIA) as a guide in reviewing financing applications that include aspects of good environmental practices Bank menggalakkan pelanggan untuk memperolehi pensijilan Amalan Pertanian Baik Malaysia (MyGAP), khususnya mereka yang terlibat dalam perladangan tanaman makanan, ternakan dan akuakultur. Skim pensijilan komprehensif MyGAP diberikan kepada petani yang mengamalkan perladangan yang mesra alam untuk menghasilkan produk yang selamat dan berkualiti, menerusi proses yang menjaga kebajikan dan keselamatan pekerja. Sistem ini turut menyumbang kepada peningkatan produktiviti dan pemasaran produk di pasaran-pasaran baharu yang menetapkan standard pengimportan yang tinggi. The Bank promotes the Malaysian Good Agricultural Practices (MyGAP) certification and encourages customers, especially those who are involved in agricultural farming, especially food crops, livestock and aquaculture, to attain the certification. The MyGAP is a comprehensive certification scheme given to farmers who practice environmentally friendly farming, by taking care of the welfare and the safety of workers in producing a safe and quality product. This system also helps to increase the productivity and marketing of the products to new markets that have high standards of importation. Meskipun MyGAP tidak menjamin keselamatan makanan, ia boleh mengurangkan risiko wabak penyakit bawaan makanan yang berpunca daripada ladang. Pelanggan Agrobank digalakkan mendapatkan pensijilan ini untuk memastikan langkah sesuai diambil bagi mengurangkan risiko kerugian ekonomi yang teruk seperti kejatuhan dalam jualan, kejatuhan dalam pengeluaran, kerosakan pada reputasi ladang dan kemungkinan disaman. Memandangkan MyGAP diiktiraf di seluruh dunia, pensijilan ini turut membuka peluang kepada usahawan tani untuk mengembangkan perniagaan mereka di pasaran baharu. Although MyGAP does not guarantee food safety, they do reduce the risk of a foodborne disease outbreak should it originate on the farm. What this means to a financier like Agrobank is that the customer has taken the necessary steps to mitigate risks of large economic losses which may include drop in sales, drop in production, damage to the farm’s reputation and potential lawsuits. The MyGAP certification also opens markets for agropreneurs to expand sales since it is recognised worldwide. Sehubungan dengan itu, kelapa sawit yang membentuk sumber penting dalam industri makanan dan bukan makanan, mula menekankan pemerolehan bekalan daripada sumber yang telah mendapat pensijilan, dan menggunakan amalan alam sekitar yang baik dalam perniagaan mereka. Agrobank menggalakkan peladang kelapa sawit untuk mendapatkan pensijilan Kemampanan Minyak Sawit Malaysia (MSPO), bagi menangani isu-isu kelestarian dan cabaran berkaitan berbilang pihak berkepentingan yang terlibat dalam industri, memandangkan standard MSPO ini memerlukan kemampanan pengeluaran diterapkan sepanjang rantaian bekalan, dari bahan mentah sehingga ke pengangkutan dan seterusnya kepada pengguna. By the same token, palm oil, while being used globally as raw material for both food and non-food industries, have moved in the direction of using supply that is certified and derived through environmentally sound practices. Agrobank supports and encourages its palm oil customers to obtain the Malaysian Sustainable Palm Oil (MSPO) certification. The certification addresses sustainability issues in relation to the multistakeholders involved in the industry as the MSPO standard describes the sustainability requirements for the production throughout the supply chain, from the raw materials until the transport to consumers.
  80. Bank turut menggunakan Penilaian Impak Alam Sekitar (EIA) untuk menilai permohonan pembiayaan. Di bawah EIA, kriteria alam sekitar yang relevan dan mempunyai impak pada rantaian nilai pengeluaran, perlu dipenuhi. Ini termasuk penerapan sijilsijil seperti MyGAP dan MSPO di mana sesuai, memandangkan ianya penting untuk menjamin kesinambungan dan kemampanan pelan perniagaan yang bertujuan untuk mengurangkan risiko ekonomi dan menambah baik akses ke pasaran. Kami turut mengkaji kaedah perladangan yang digunakan dalam perniagaan pelanggan bagi memastikan faktor-faktor alam sekitar memenuhi standard tinggi yang ditetapkan oleh MARDI seperti penyediaan sistem pengairan air yang sesuai. EIA dijalankan sejajar dengan prinsip VBI bagi memastikan Bank menyampaikan pembiayaan yang membawa impak yang positif kepada masyarakat dan alam sekitar. Agrobank menggunakan pelbagai cara untuk menggalakkan pensijilan seperti ini oleh pelanggan Bank. Selain menggalakkan pengambilannya kepada pelanggan yang pemohon pembiayaan, Bank turut menyarankan perkara yang sama di kursus-kursus ADP untuk meningkatkan kesedaran tentang amalan pertanian yang baik, selain menerangkan manfaat pensijilan dalam penilaian pasaran baharu. Kami juga akan mendapatkan perkhidmatan ahli agronomi untuk menyediakan laporan yang lebih mendalam tentang amalan terbaik yang harus dipatuhi bagi memperkukuhkan impak kami dalam pemeliharaan alam sekitar. Usaha ini dijalankan seiring dengan SDG 2: Matlamat 2.4. The Bank also looks at aspects of the Environment Impact Assessment (EIA) when reviewing financing applications. The EIA looks at relevant environmental criteria that will have an impact on the value chain of production. This includes the adoption of certifications such as MyGAP and MSPO where relevant as they have a bearing on the longevity and sustainability of the business plan which includes economic risk reduction and improved market access opportunities. We also analyse the farming parameters of the customers’ business to ensure environmental factors such as the availability of appropriate water irrigation to meet benchmark standards such as that set by MARDI. The EIA is aligned to the VBI framework where the Bank takes into account the positive impact of financing on society and the environment. Agrobank promotes these types of certifications by the Bank’s customers through various means. Apart from encouraging customers who apply for financing facilities, the Bank also advocates the same at the ADP courses to raise awareness of the merits of not just practicing good agricultural practices, but also the benefits of the certification in accessing new markets. To strengthen our impact on the environment, we will have in place an agronomist who will provide more in-depth reports on best practices to be adhered to. These efforts are also aligned to SDG 2: Goal 2.4. LAPORAN TAHUNAN 2018 ANNUAL REPORT Mendorong Pemodenan demi Kelestarian Alam Sekitar Support Modernisation for Environmental Sustainability Matlamat 14.2 •Menyediakan pembiayaan untuk menaik taraf/ memodenkan kaedah penangkapan ikan bagi mendorong kemampanan dalam ekosistem ekologi lautan • Memodenkan kapal-kapal menangkap ikan • Menyokong kaedah perikanan laut dalam Goal 14.2 •Providing financing for upgrading/modernising fishing methods for sustainability of ecosystem of marine ecology • Modernisation of fishing vessels • Supporting deep ocean fishing methods Bagi meningkatkan perniagaan perikanan dalam jangka panjang, kami menggalakkan pelanggan untuk menjalankan aktiviti penangkapan ikan secara mampan. Ini dilakukan dengan menyediakan pembiayaan untuk pembelian peralatan menangkap ikan yang lebih baik, dan menggalakkan penggunaan kapal menangkap ikan yang lebih moden dan yang kurang memudaratkan alam sekitar. Kami turut menyokong dan menyediakan pembiayaan untuk pelanggan yang ingin beralih kepada perikanan laut dalam, yang mana adalah lebih berkesan untuk mengurangkan pencemaran dan penangkapan ikan berlebihan di kawasan-kawasan pantai. To ensure that our fishermen have a long-term business model for greater sustainability, we encourage efforts of customers who conduct fishing activities sustainably. These include providing financing for better fishing equipment and modernisation of fishing vessels that are less onerous on the environment. We also encourage and provide financing programmes for customers to move into deep ocean fishing that is more friendly in reducing pollution and over-fishing in coastal areas. RISIKO-RISIKO UTAMA DAN PENGAWALANNYA The Bank continuously assesses, evaluates and addresses potential risks associated with the long-term growth of its business through its risk management framework and robust Board and management discussions. To that end, the Bank will continue to place high priority on managing sustainability risks and opportunities to support the long-term interests of the Bank as well as its stakeholders. Bank akan terus meneliti, menilai, dan menangani risiko-risiko berkaitan dengan pertumbuhan jangka panjang perniagaan Agrobank menerusi rangka kerja pengendalian risiko yang mantap dan pengurusan yang berkesan oleh Lembaga Pengarah dan pihak pengurusan Bank. Sehubungan dengan itu, Bank akan terus menguruskan risiko kemampanan dan peluang-peluang yang wujud untuk menyokong kepentingan jangka panjang Agrobank dan pihak berkepentingan mereka. KEY RISKS AND MITIGATION 75
  81. PENYATA PERANTARAAN BERASASKAN NILAI (VBI): MENURUT CARA AGROBANK VALUE-BASED INTERMEDIATION (VBI) STATEMENT: THE AGROBANK WAY Teknologi Technology Perkembangan pesat dalam landskap perbankan dan kawal selia memerlukan Bank memanfaatkan teknologi secara lebih tertumpu, bagi menyampaikan perkhidmatan yang lebih cepat dan cekap kepada segmen pasaran yang lebih luas. Penggunaan teknologi akan membantu mengoptimumkan sumber, mengurangkan kos, meningkatkan produktiviti, dan memperbaiki penawaran Bank demi kemudahan pelanggan. As the banking and regulatory landscape evolves, technology is fast becoming a key enabler to helping the Bank deliver faster, efficiently, and to a broader market segment that are connected. It will allow the Bank to optimise resources, reduce costs, increase productivity and improve its offerings for better customer outcomes. Bank juga telah melancarkan Program Transformasi IT 2017-2020 (ITTP) yang menggariskan perancangan digital Agrobank untuk memanfaatkan perkhidmatan yang menawarkan lebih mobiliti, saluran omni, analisis data, media sosial dan Internet Pelbagai Benda (IoT). ITTP bertujuan untuk membantu Bank mengekalkan kerelevanan Agrobank kepada pelanggan, sambil memantapkan pengurusan perniagaan, di samping memudahkan proses menyesuaikan dan melaksanakan inovasi baharu. The Bank already has in place an IT Transformation Programme 2017-2020 (ITTP) which is a digital implementation roadmap to embrace and leverage on mobility, omni-channels, data analytics, social media and Internet of Things (IoT). The aim of the ITTP is to allow the Bank to remain relevant to its customers, be more agile in its business executions, as well as to be facilitative to adapting and implementing new innovations. Pelan Transformasi IT (2017-2020) IT Transformation Plan ROAD MAP (2017-2020) FASA 1 Transformasi Jabatan IT (ITD) WAVE1 IT Department (ITD) 76 FASA 2 Transformasi Digital WAVE 2 Digital Transformation AGROBANK KEEFISIENAN OPERASI IT IT OPERATION EFFICIENCY •Mempertingkatkan dan Meringkaskan Kerumitan Aplikasi & Infrastruktur Enhance and Simplify Application & Infrastructure Complexity •Transformasi Pengalaman & Keutamaan Pelanggan Transform Customer Experience & Centricity •Penambahbaikan Penyampaian Perkhidmatan dan Proses IT IT Service Delivery and Process Improvement •Pendekatan Berpandukan Data untuk Fleksibiliti & Keupayaan Menganalisis Data Data Driven Approach for Flexibility & Data Analytics Capability •Peralihan ke Budaya Inovasi & Kecekapan Transition to Innovation & Agile Culture •Transformasi Digital Fleksibel & Asas Teknologi Kewangan Flexible Digital Transformation & Fintech Foundation Mengenai Kami Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information INOVASI PERBANKAN BANKING INNOVATION •Penjajaran semula dan Rasionalisasi Jabatan IT IT Department Realignment and Rationalization 01 About Us 03 2018 Events KECEKAPAN APLIKASI & INFRASTRUKTUR APPS & INFRA AGILITY Model Operasi IT yang Betul Right IT Operation Model Berpandukan Matriks & KPI Matrix & KPI Driven Fokus pada Inisiatif Strategik Agrobank Agrobank Strategic Initiatives Focus Transformasi Penyampaian Perkhidmatan IT IT Service Delivery Transformation •Peningkatan Pantas dalam Hasil Digital Rapidly Expand of Digital Revenue •Pelaburan & Pembentukan Kerjasama untuk Mendorong Inovasi Digital & Teknologi Kewangan Invest & Create Partnerships to Drive Digital & Fintech innovation Transformasi Pengurusan ITMO, IT GRC & Pengujian Transformation of ITMO, IT GRC & Testing Management Pengoptimuman & Transformasi Aplikasi Application Optimisation & Transformation Transformasi Infrastruktur Infrastructure Transformation Transformasi Aplikasi & Infrastruktur Application & Infrastructure Transformation Pencetusan Inovasi menerusi pembentukan idea Spark Innovation through Ideation Pengurusan & Penjajaran Inovasi Digital Manage & Align Digital Innovation Pemanduan & Pelaksanaan Inovasi Digital Lebih Pantas Pilot & Implement Digital Innovation Faster Membolehkan Inovasi Digital Digital Innovation Enablement
  82. Persekitaran ekonomi dan industri Economy and industry environment Keadaan ekonomi negara boleh memberi kesan kepada perniagaan Bank . Pada masa ini, pertumbuhan sektor pertanian dan keperluan pembiayaan kekal membimbangkan memandangkan keadaan pasaran yang mencabar sepanjang beberapa tahun lepas. Bank akan terus mengawasi reaksi pasaran dan impak jangka panjang daripada perubahan dalam peraturan dan dasar dalam negara. The economic conditions of the country can have an impact on the Bank’s business. Currently, with market conditions being challenging for the past couple of years, the growth of the agriculture sector and consequently the need for financing remains a key concern. The Bank keeps in tune with market reactions and long-term impact following regulation and policy changes made at the national level. Untuk mengurangkan risiko-risiko seperti pembiayaan tidak berbayar dan pembiayaan merosot, Agrobank menjalankan penilaian kredit dan proses penguderaitan yang ketat. Persekitaran pasaran sentiasa diteliti untuk memastikan langkah-langkah yang mencukupi diambil secara proaktif bagi mengurangkan penyusutan kredit disebabkan faktor-faktor luar. Sila rujuk Penyata Pengurusan Risiko di muka surat 157 untuk mendapatkan maklumat lanjut. Kerelevanan Pelanggan Sebagai sebuah IKP, Agrobank menerima sokongan daripada Kementerian Pertanian dan Industri Asas Tani serta agensi-agensi yang berkaitan. Bagaimanapun, Bank masih beroperasi sebagai institusi kewangan yang terus bersaing sejajar dengan bankbank lain, untuk mendapatkan bahagian pasaran masing-masing. Demikian, Bank seringkali berhadapan dengan risiko kerelevanan pelanggan memandangkan terdapat banyak lagi penyelesaian kewangan lain yang kompetitif dan menarik di dalam pasaran. Risiko ini dikurangkan dengan meluaskan dan mendalamkan pengetahuan kami dalam sektor pertanian supaya kami boleh menyerlahkan kekhususan dan kepakaran Bank dalam bidang ini, dan memastikan penyediaan penyelesaian yang relevan kepada pelanggan. Sehubungan dengan itu, kakitangan Agrobank disediakan dengan latihan, seminar dan program tertentu untuk meluaskan pemahaman mereka dalam perkara berkaitan pertanian. Contohnya, para pegawai kredit Bank perlu menghadiri program Pendedahan Praktikal kepada Pertanian (APEX), untuk mempelajari aspek-aspek pertanian termasuk cara mengendalikan peralatan dan kelengkapan asas, cara menguruskan ladang, selain memperolehi pemahaman dalam industri tanaman, perikanan serta ternakan. Menerusi pendedahan dan latihan seperti ini, Bank mengharapkan para pegawainya akan mampu menyediakan produk pembiayaan dan penyelesaian perniagaan yang tepat bagi pelanggan mereka. Agrobank akan terus menilaikan keperluan pasaran untuk menyediakan penyelesaian pembiayaan dengan struktur yang betul serta perkhidmatan yang boleh mendorong trend pasaran. Setakat ini, Bank telah mengenal pasti potensi pertumbuhan dalam sektor usahawan tani wanita dan pengetahuan itu telah digunakan untuk menstruktur pembiayaan mikro Agro Nisaa’-i, di samping potensi peningkatan permintaan di Barat yang telah dimanfaatkan untuk merangka skim pembiayaan yang relevan bagi memenuhi permintaan untuk buah durian, nanas dan kelapa yang semakin meningkat. Agrobank looks at mitigating such risks of non-performing financing and impairment to financing through a stringent credit evaluation and underwriting process. It also constantly assesses the market environment to ensure there are adequate measures implemented proactively to mitigate credit compression arising from external factors. Please refer to Statement on Risk Management on page 157 for more information. Customer relevance Although Agrobank is a DFI with support from the Ministry of Agricultural and Agro-based Industry and its relevant agencies, the Bank operates as a financial institution competing on par with other banks for a respective market share. The Bank constantly faces the risk of customer relevance as there are many other competitive and attractive financial solutions in the market. We mitigate this potential risk by broadening our indepth knowledge of the agriculture sector so that the Bank can claim the niche and expertise in this area to provide customers relevant solutions. To this end, Agrobank employees are exposed to training, seminars and on-site programmes to help them deepen their knowledge of agricultural related matters. For instance, the Bank’s credit officers are required to attend the Agricultural Practical Exposure (APEX) programme where they learn many aspects on agriculture including how to handle basic tools and equipment, knowledge on farm management, and insights into crop, fishery and livestock industry. Through on-going exposure and training such as this, the Bank ensures that its officers are able to provide customers the right financing and business management solutions. Agrobank assesses market requirements to provide the right structured financing solutions and services that can support market trends. The Bank has been able to assess growth potential in areas such as rising capabilities in women agropreneurs to structure the Agro Nisaa’-i micro-financing facility, as well as rising demand from Western markets for fruits such as durian, pineapple and coconut to structure relevant financing schemes. LAPORAN TAHUNAN 2018 ANNUAL REPORT 77
  83. Fakta-fakta tentang Susu Segar Malaysia ! Pengeluaran susu segar dianggarkan meningkat kepada 39.74 juta liter. Sebanyak 510 ekor lembu tenusu tambahan bernilai RM5.1 juta diperlukan untuk meningkatkan pengeluaran susu tempatan sebanyak 4.0%. Penggunaan susu di Malaysia pada tahun lepas merangkumi 63 juta liter, di mana 24.5 juta liter telah dikeluarkan khususnya di Australia dan New Zealand. Penggunaan susu dan produk susu bagi Malaysia dijangka meningkat kepada 1.382 bilion liter. Kerajaan dijangka akan memperkenalkan insentif cukai untuk syarikat-syarikat perladangan dan pertanian bagi meningkatkan SSL Malaysia bagi produk berasaskan tenusu. MOA sedang merancangkan penubuhan “Lembaga Tenusu Negara” untuk mengetuai pembangunan industri tenusu negara. Memandangkan pengeluaran susu segar semasa tidak dapat menampung unjuran Dasar Pertanian Negara Malaysia (NAP) 2011-2020, lebih banyak susu diperlukan di Malaysia. Kerajaan komited untuk meningkatkan tahap sara diri (SSL) dalam pengeluaran susu segar sehingga 100 peratus, sepanjang lima tahun yang akan datang, dengan menggalakkan pengeluar tempatan meningkatkan keupayaan pengilangan mereka dan menjadikan kos perladangan ternakan yang lebih berpatutan.
  84. Output Susu (juta/liter) Milk Output (million/litres) 2018 2017 36.6 40.4 Agrobank, bersama dengan Majlis Pembangunan Wilayah Ekonomi Pantai Timur (ECERDC) dan Syarikat Holstein Milk (HMC) telah membentuk perikatan strategik bagi meningkatkan pengeluaran susu untuk penggunaan tempatan, melalui program tabung bersepadu yang disediakan untuk peladang tenusu di Pahang. Penggunaan (juta/liter) Consumption (million/litres) More milk is needed in Malaysia as the current production 2018 2017 of fresh milk is unable to meet the projections of Malaysia’s National Agriculture Policy (NAP) 2011-2020. The government is committed to encouraging increased self-sufficiency levels (SSL) for the production of fresh milk up to 100 per cent over 62.8 65.7 the next five years by getting local producers to increase their manufacturing capacity level and make the cost of livestock farming more affordable. One of the identified measures is to cultivating grain corn used solely for livestock feed to reduce Tahap Sara Diri (SSL) SELF-SUFFICIENCY Level (SSL) the dependence on imported feed. To this end, several local companies have embarked on the cultivation of grain corn via plantations in Sarawak, Johor, Pahang and Kedah. 2018 2017 Salah satu langkah yang dikenal pasti adalah penanaman jagung bijian yang digunakan khususnya sebagai makanan ternakan, bagi mengurangkan pergantungan pada makanan ternakan import. Dari sudut ini, beberapa syarikat tempatan telah memulakan penanaman jagung bijian di Sarawak, Johor, Pahang dan Kedah. 58.25% 61.44% Agrobank together with the East Coast Economic Region Development Council (ECERDC) and Holstein Milk Company (HMC) [Anchor Company] has formed a strategic alliance to increase milk production for local consumption through an integrated funding programme provided to satellite dairy farmers in Pahang. Sumber: Jabatan Perkhidmatan Veterinar Source: Department of Veterinary Services
  85. FACTS Fakta-fakta tentang SusuON MALAYSIA ’S Segar Malaysia! DAIRY • Fresh milk production to increase to 39.74 million Pengeluaran susu segar dianggarkan meningkat litres. kepada 39.74 juta liter. Sebanyak 510 ekor lembu tenusu bernilai RM5.1 juta diperlukan untuk • tambahan Additional 510 heads of dairy meningkatkan pengeluaran susu tempatan sebanyak 4.0%. cows worth RM5.1 million is required to increase local milk production by 4.0%. Penggunaan susu di Malaysia pada tahun lepas merangkumi 63 juta liter, di mana 24.5 juta liter telah dikeluarkan khususnya di Australia dan New Zealand. • Last year, Malaysia’s milk consumption was 63 litres, of which, 24.5 million litres were Penggunaan susu danmillion produk susu bagi Malaysia dijangka meningkat kepada 1.382 bilion liter. produced mostly in Australia and New Zealand. Kerajaan dijangka akan memperkenalkan insentif cukai untuk • Malaysia’s milk and milk products consumption syarikat-syarikat perladangan dan pertanian bagi meningkatkan SSL Malaysia bagi produk berasaskan tenusu. expected to grow to 1.382 billion litres. is MOA sedang merancangkan penubuhan “Lembaga Tenusu • The government isNegara” expected untuk mengetuai pembangunan industri tenusu negara. to introduce tax incentives for farming and agricultural companies to increase Malaysia’s SSL for dairy-based products. • The MOA is currently planning to establish the “National Dairy Board” to overhead the nation’s dairy industry development. Memandangkan pengeluaran susu segar semasa tidak dapat menampung unjuran Dasar Pertanian Negara Malaysia (NAP) 2011-2020, lebih banyak susu diperlukan di Malaysia. Kerajaan komited untuk meningkatkan tahap sara diri (SSL) dalam pengeluaran susu segar sehingga 100 peratus, sepanjang lima tahun yang akan datang, dengan menggalakkan pengeluar tempatan meningkatkan keupayaan pengilangan mereka dan menjadikan kos perladangan ternakan yang lebih berpatutan.
  86. Output Susu (juta/liter) Milk Output (million/litres) 2018 2017 36.6 40.4 Penggunaan (juta/liter) Consumption (million/litres) More milk is needed in Malaysia as the current production 2018 2017 of fresh milk is unable to meet the projections of Malaysia’s National Agriculture Policy (NAP) 2011-2020. The government is committed to encouraging increased self-sufficiency levels (SSL) for the production of fresh milk up to 100 per cent over 62.8 65.7 the next five years by getting local producers to increase their manufacturing capacity level and make the cost of livestock farming more affordable. One of the identified measures is to cultivating grain corn used solely for livestock feed to reduce Tahap Sara Diri (SSL) SELF-SUFFICIENCY Level (SSL) the dependence on imported feed. To this end, several local companies have embarked on the cultivation of grain corn via plantations in Sarawak, Johor, Pahang and Kedah. 2018 2017 58.25% 61.44% Agrobank together with the East Coast Economic Region Development Council (ECERDC) and Holstein Milk Company (HMC) [Anchor Company] has formed a strategic alliance to increase milk production for local consumption through an integrated funding programme provided to satellite dairy farmers in Pahang. Sumber: Jabatan Perkhidmatan Veterinar Source: Department of Veterinary Services
  87. AKTIVITI KORPORAT CORPORATE ACTIVITIES JANUARI /JANUARY FEBRUARI/FEBRUARY 9 - 11 FEBRUARI/FEBRUARY 18 - 21 JANUARI/JANUARY 80 Agrobank menyertai Karnival Kewangan yang dianjurkan oleh Bank Negara Malaysia (BNM) di Alor Setar, Kedah. AGROBANK Agrobank participated in Karnival Kewangan organised by Bank Negara Malaysia (BNM) held in Alor Setar, Kedah. Agrobank Managers Convention (AMC) 2018 telah diadakan di Kuantan, Pahang dengan tema, Mencipta Nilai Merentasi Perbankan. Agrobank Managers Convention (AMC) 2018 was held at Kuantan, Pahang with the theme, Creating Values Beyond Banking. MAC/MARCH Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 1 MAC/MARCH 3 MAC/MARCH Penyata Kewangan 2018 Lawatan ke premis para pelanggan Agrobank di sekitar Lembah Bernam, Selangor. Agrobank telah dijemput untuk menyampaikan taklimat tentang pembiayaan di Seminar Penternakan Burung Walet, anjuran bersama oleh Takad Nabalu Dan Sedcovest Holding Sdn. Bhd. dan Borneo Walet (Latihan & Perundingan). Kursus ini telah diadakan di Pekan Baru Botition, Beluran, Sabah, dan dihadiri oleh lebih daripada 3,000 peserta. 04 How We Are Governed 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Visit to Agrobank’s clients premises around the vicinity of Lembah Bernam, Selangor. Agrobank was invited to give a talk on financing during the Swiftlet Farming Seminar co-organised by Takad Nabalu Dan Sedcovest Holding Sdn. Bhd. and Borneo Walet (Training & Consultancy). The seminar was held at Pekan Baru Botition, Beluran, Sabah and was attended by more than 3,000 participants.
  88. MAC /MARCH 17 MAC/MARCH Sebagai sebahagian daripada inisiatif rangkuman kewangan Bank, Agrobank telah menyediakan mesin ATM dan CDM di Pekan Baru Botition yang terletak 200km daripada bandar terdekatnya iaitu Sandakan. As part of financial inclusion, Agrobank placed an ATM and CDM machine at Pekan Baru Botition where the nearest town is Sandakan, which is 200km away. 24 MAC/MARCH Agrobank telah menganjurkan program komuniti di Jerlun, Kedah. Antara aktiviti yang diadakan adalah taklimat tentang pembiayaan, pemeriksaan kesihatan percuma, penyampaian zakat, peraduan mewarna dan lain-lain. Program ini telah dihadiri oleh lebih daripada 1,000 orang tetamu. Agrobank organised a community programme at Jerlun, Kedah. Among the activities were a financing talk, a free health checkup, presentation of zakat, a colouring contest and many more. More than 1,000 guests attended the programme. APRIL/APRIL 21 APRIL/APRIL 7 APRIL/APRIL Agrobank di Karnival Usahawanita dan Road to MAHA 2018 di Kemaman, Terengganu. Agrobank at Karnival Usahawanita and Road to MAHA 2018 at Kemaman, Terengganu. Agrobank menyertai AIBIM Islamic Finance 5KM Fun Run 2018, di mana seramai 100 orang peserta telah mengambil bahagian dalam aktiviti CSR ini. Agrobank participated in the AIBIM Islamic Finance 5KM Fun Run 2018 with 100 runners in support of good CSR. LAPORAN TAHUNAN 2018 ANNUAL REPORT 81
  89. AKTIVITI KORPORAT CORPORATE ACTIVITIES MEI /MAY 12 MEI/MAY 18 orang siswazah daripada Agrobank meraikan pencapaian mereka di Majlis Graduasi Asian Institute of Chartered Bankers yang ke-21. 18 graduates from Agrobank celebrated their achievements at the 21st Graduation Ceremony of the Asian Institute of Chartered Bankers. 82 AGROBANK 25 MEI/MAY Seramai lima (5) orang kakitangan telah ditaja oleh Agrobank bagi Program Tajaan Umrah dalam usahanya untuk memupuk kerohanian kepada kakitangan bank. An Umrah Sponsorship Programme was organised. As part of the Bank’s efforts to nurture spiritual development of its employees, Agrobank sponsored five (5) employees to perform their umrah. 31 MEI/MAY Sukarelawan Agrobank meluangkan masa menyambut Ramadan bersama 77 orang asnaf dari rumah anak yatim di sekitar Selangor. Pada program tahunan ‘Kasih Ramadan’ ini, asnaf bersama sukarelawan Agrobank telah mengunjungi Skybridge, Menara Berkembar PETRONAS dan membeli-belah sebagai persiapan menyambut Syawal dengan sumbangan zakat berjumlah RM43,000. Volunteers of Agrobank shared their time to celebrate Ramadan with 77 asnaf from orphanages around Selangor. The annual event, ‘Kasih Ramadan’ saw volunteers visiting Skybridge, PETRONAS Twin Tower and shopping with asnaf in preparation for the Syawal celebration with contribution of zakat amounting to RM43,000. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information JUN/JUNE 8 JUN/JUNE Agrobank telah menganjurkan program Tadarus Al-Quran dan Iftar Perdana di Menara Agrobank pada bulan Ramadan. Agrobank organised Tadarus Al-Quran and Iftar Perdana at Menara Agrobank during Ramadhan.
  90. JULAI /JULY 10 JULAI/JULY Sambutan Hari Raya Korporat Agrobank 2018. Agrobank’s Corporate Hari Raya Celebration 2018. 10 JULAI/JULY Agrobank menganjurkan majlis penyampaian hadiah bagi Kempen Agro Wonders 2017. Pemenang hadiah utama, Mohd Fauzie Abdullah, 19, dari Sandakan telah membawa pulang sebuah Ford Ranger baharu. Agrobank organised a prize giving ceremony for its Agro Wonders 2017 campaign. The grand prize winner, Mohd Fauzie Abdullah, 19, from Sandakan brought home a brand new Ford Ranger. 10 JULAI/JULY Agrobank menyampaikan sumbangan zakat berjumlah RM147,750 kepada tujuh (7) buah organisasi di bulan Syawal sebagai salah satu inisiatif Bank memberi balik kepada golongan yang memerlukan. Agrobank presented zakat contribution to seven (7) organisations amounting to RM147,750 during the month of Syawal. OGOS/AUGUST 4 OGOS/AUGUST Agrobank menerima pengiktirafan Anugerah Bancatakaful Partner 2017/2018 menerusi kategori Pelan Takaful Gadai Janji (MRTT) oleh Takaful Ikhlas. Agrobank received recognition at the Bancatakaful Partner Awards 2017/2018 by Takaful Ikhlas under the category Mortgage Reducing Term Takaful (MRTT). LAPORAN TAHUNAN 2018 ANNUAL REPORT 83
  91. AKTIVITI KORPORAT CORPORATE ACTIVITIES SEPTEMBER /SEPTEMBER 84 AGROBANK 4 SEPTEMBER/SEPTEMBER 20 SEPTEMBER/SEPTEMBER YB Dato’ Salahuddin Ayub, Menteri Pertanian & Industri Asas Tani serta YB Sim Tze Tzin, Timbalan Menteri Pertanian & Industri Asas Tani, melawat Ibu Pejabat Agrobank sempena lawatan kerja rasmi ke Agrobank. Lapan (8) orang usahawan tani telah dinobatkan sebagai pemenang Anugerah Agropreneur Agrobank (3A) 2018. 3A merupakan sebahagian daripada inisiatif Agrobank bertujuan untuk memberi pengiktirafan kepada usahawan tani yang berjaya di seluruh negara. YB Dato’ Salahuddin Ayub, Minister of Agriculture & Agro-based Industry and YB Sim Tze Tzin, Deputy Minister of Agriculture & Agro-based Industry visited Agrobank HQ as part of a working visit to Agrobank. Eight (8) agropreneurs were named as winners of the Agrobank Agropreneur Awards (3A) 2018. 3A is part of Agrobank’s initiatives with an objective to recognise successful agropreneurs in the country. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 27 SEPTEMBER/SEPTEMBER 28 - 30 SEPTEMBER/SEPTEMBER Penyata Kewangan 2018 Pasukan Agrobank menyahut cabaran ‘Run for Others’ dengan menyertai larian Bursa Bull Charge 2018. Agrobank menyertai Hari Peladang, Penternak dan Nelayan Kebangsaan peringkat negeri (HPPNS) yang telah diadakan di Tawau, Sabah. 04 How We Are Governed 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Agrobank’s team accepted the challenge of ‘Run for Others’ by participating in the Bursa Bull Charge 2018 race. Agrobank supported the National Farmers, Livestock Breeders and Fishermen Day – state level (HPPNS) held in Tawau, Sabah.
  92. OKTOBER /OCTOBER 2 OKTOBER/OCTOBER Agrobank di upacara pelepasan menandakan 50 hari sebelum MAHA 2018. Agrobank at the flag-off ceremony of 50 days countdown of MAHA 2018. LAPORAN TAHUNAN 2018 ANNUAL REPORT 3 - 4 OKTOBER/OCTOBER 9 OKTOBER/OCTOBER Agrobank menyertai Forum Kewangan Islam Global 2018 yang dianjurkan oleh Persatuan Institusi Perbankan Islam Malaysia (AIBIM). Agenda Agro yang dijalankan di Sabah dilaksanakan untuk menyampaikan maklumat terkini industri pertanian kepada pelanggan Bank. Agrobank participated in the Global Islamic Finance Forum 2018 organised by The Association of Islamic Banking Institutions Malaysia (AIBIM). Agenda Agro held in Sabah is an initiative to provide clients in the locality with latest information on the agriculture industry. NOVEMBER/NOVEMBER 21 NOVEMBER/NOVEMBER Agrobank melancarkan kad perlindungan takaful edisi MAHA 2018 yang dikenali sebagai Kad Takaful Agro Mabrur-i - edisi MAHA 2018. Kad ini telah dilancarkan oleh YB Dato’ Salahuddin Ayub, Menteri Pertanian & Industri Asas Tani. Agrobank launched a special edition MAHA 2018 takaful protection card known as Takaful Agro Mabrur-i - MAHA 2018. The card was launched by YB Dato’ Haji Salahuddin Ayub, Minister of Agriculture & Agro-based Industry. 85
  93. AKTIVITI KORPORAT CORPORATE ACTIVITIES NOVEMBER /NOVEMBER 22 NOVEMBER/NOVEMBER 2 DISEMBER/DECEMBER Agrobank menyertai Pameran Pertanian, Hortikultur dan Agro Pelancongan Malaysia 2018 (MAHA 2018) yang telah diadakan di MAEPS, Serdang. Ianya merupakan pameran industri asas tani dan pemeran perdagangan pertanian yang terbesar di Malaysia. Agrobank participated in the Malaysia Agriculture, Horticulture and Agrotourism Show 2018 (MAHA 2018), the largest agro-based and agriculturerelated trade fair held in MAEPS, Serdang. 86 AGROBANK 28 NOVEMBER/NOVEMBER Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information 25 NOVEMBER/NOVEMBER Agrobank melancarkan program pembiayaan mikro Agro Nisaa-i khusus untuk agropreneur wanita. Majlis pelancaran ini telah dirasmikan oleh YB Dato’ Salahuddin Ayub, Menteri Pertanian & Industri Asas Tani. Agrobank launched the Agro Nisaa-i, a micro financing programme for women agropreneurs. The launching ceremony was officiated by YB Dato’ Salahuddin Ayub, Minister of Agriculture & Agro-based Industry. Agrobank menandatangani memorandum persefahaman (MoU) dengan Jabatan Perikanan bertujuan untuk menyediakan pembiayaan yang sesuai kepada pemegang permit vesel yang berkelayakan, di bawah Program Pemodenan Vesel Penangkapan Ikan Jabatan Perikanan Malaysia. YB Tuan Sim Tze Tzin, Timbalan Menteri Pertanian & Industri Asas Tani menyampaikan perjanjian tersebut kepada Agrobank. Agrobank signed a memorandum of understanding (MoU) with the Department of Fishery with aims to provide suitable financing facilities to qualified vessel permit holders under the ‘Program Pemodenan Vesel Penangkapan Ikan Jabatan Perikanan Malaysia’. YB Tuan Sim Tze Tzin, Deputy Minister of Agriculture & Agro-based Industry presented the agreement to Agrobank.
  94. NOVEMBER /NOVEMBER 30 NOVEMBER/NOVEMBER Agrobank menandatangani Perjanjian Kerjasama Strategik dengan MYDIN dan PPK Kuala Langat, sambil disaksikan oleh YB Dato’ Salahuddin Ayub, Menteri Pertanian & Industri Asas Tani. Objektif kerjasama dengan MYDIN ini bertujuan menyediakan kemudahan pembiayaan dan perkhidmatan perbankan kepada Mydin dan pembekalnya dalam rantaian pembekal mereka. Di bawah kerjasama dengan PPK Kuala Langat, Agrobank akan membantu peserta yang tergolong di bawah kumpulan B40 dan M40 dengan menyediakan pembiayaan modal kerja untuk membeli ruminan daripada pembekal yang berdaftar di bawah PPK Kuala Langat. Agrobank signed a Strategic Partnership Agreement with MYDIN and PPK Kuala Langat witnessed by YB Dato’ Salahuddin Ayub, Minister of Agriculture & Agro-based Industry. The objective of the partnership with MYDIN is to provide Mydin and its suppliers of financing and banking services within their supplier chain. Through the partnership with PPK Kuala Langat, Agrobank will assist participants belonging to the B40 and M40 groups by providing working capital financing to buy ruminants from suppliers registered under PPK Kuala Langat. DISEMBER/DECEMBER 27 DISEMBER/DECEMBER 18 DISEMBER/DECEMBER Agrobank menyampaikan sumbangan zakat berjumlah RM103,000 kepada Majlis Ugama Islam dan Adat Resam Melayu Pahang (MUIP). Agrobank presented zakat contribution amounting to RM103,000 to the Majlis Ugama Islam dan Adat Resam Melayu Pahang (MUIP). Pengerusi Lembaga Pengarah Agrobank, Tan Sri Mohamad Zabidi Zainal menyampaikan sumbangan zakat berjumlah RM103,000 kepada Mufti Perak, Tan Sri Harussani Zakaria yang mewakili Majlis Agama Islam dan Adat Melayu Perak (MAIPk) pada satu majlis yang berlangsung di Ipoh. The Chairman of Agrobank’s Board of Directors, Tan Sri Mohamad Zabidi Zainal handing over RM103,000 zakat to Perak Mufti Tan Sri Harussani Zakaria on behalf of Majlis Agama Islam dan Adat Melayu Perak (MAIPk) at a ceremony in Ipoh. LAPORAN TAHUNAN 2018 ANNUAL REPORT 87
  95. SOROTAN MEDIA 2018 2018 MEDIA HIGHLIGHTS 88 AGROBANK Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information
  96. LAPORAN TAHUNAN 2018 ANNUAL REPORT 89
  97. Fakta-fakta tentang Daging Ayam Malaysia Pada 2016 , daging ayam menyumbang 96% daripada jumlah sumbangan industri ternakan bernilai RM10.38 bilion kepada KDNK Malaysia. Pengeluaran daging ayam dianggarkan meningkat 4.41% kepada 1.839 juta mt pada 2019. Penggunaan daging ayam dianggarkan meningkat 4.56% kepada 1.741 juta mt pada 2019. Purata harga ladang tahunan bagi ayam pedaging dianggarkan meningkat 1.3% kepada RM5.50/kg berat hidup pada 2019. Jabatan Perkhidmatan Veterinar menggalakkan pengusaha daging ayam untuk menggunakan teknologi perladangan sistem tertutup yang moden bagi mengurangkan isu-isu pencemaran dan meningkatkan keefisienan perusahaan. Industri perusahaan daging ayam membentuk sektor ternakan paling maju di Malaysia, dengan sistem pengeluaran yang paling dikomersialkan dan bersepadu. Penggunaan teknologi pengeluaran dan pemberian makanan yang moden memastikan transformasi yang berterusan bagi industri ini. Sebagai sumber protein paling murah bagi penduduk, pengeluaran daging ayam akan dipertingkatkan bagi mengukuhkan jaminan makanan negara, dan menyediakan industri untuk menangani kenaikan
  98. Pengeluaran daging ayam (000 tan) Poultry meat production (000 tonnes) 2017 2016 1,755.2 1,724,4 Agrobank menawarkan rangkaian produk pembiayaan yang memenuhi keperluan dan tujuan perusahaan daging ayam. Ini merangkumi pembiayaan mikro (MUS1M-i), Pembiayaan Berjangka, Kemudahan Pembiayaan Modal Kerja-i (Tawarruq), Tabung Untuk Makanan (3F) dan Machinery & Equipment Financing-i (MAEF-i). Pengeluaran daging ayam (Eksport) (tan) Poultry meat production (Export) (tonnes) The poultry industry is the most advanced livestock sector in 2017 2016 Malaysia, possessing the most commercialised and integrated production system. The industry has been in a continuous transformation mode towards adopting state of the art production and feeding technologies. As the cheapest source 37,128.8 36,576.1 of protein for the people, poultry production is expected to be ramped up to strengthen national food security and become future-ready in expectation for increased demand for free range and organic variants. Moving forward the nation intends Tahap Sara Diri (SSL) SELF-SUFFICIENCY Level (SSL) to grow export opportunities, capitalising on the recognition of Malaysia’s halal certification. It is estimated that an additional investment of over RM216 million in infrastructures will be required by the industry. 2017 2016 dalam permintaan bagi daging jenis ternakan lepas dan organik. Melangkah ke hadapan, peluang eksport bagi negara akan terus dikembangkan dengan memanfaatkan pengiktirafan halal oleh Malaysia. Industri ini memerlukan pelaburan tambahan dalam infrastruktur yang dianggarkan bernilai lebih daripada RM216 juta. 96.0% 98.2% Agrobank offers a range of financing products suitable for poultry farming, depending on needs and purpose. These range from micro financing (MUS1M-i), Term Financing, Working-capital-i (Tawarruq), Fund for Food (3F) and even Machinery & Equipment Financing-i (MAEF-i). Sumber: Jabatan Statistik Malaysia Source: Department of Statistics Malaysia
  99. FACTS ON MALAYSIA ’S Fakta-fakta tentang POULTRY Daging Ayam Malaysia • Poultry contributed to 96% of the total livestock industries contribution of RM10.38 billion to Pada 2016, daging ayam menyumbang 96% daripada jumlah sumbangan Malaysia’s in 2016. industri ternakan bernilai RM10.38 bilion kepada KDNKGDP Malaysia. • Poultry meat production is estimated to increase by 4.41% to 1.839 million mt in 2019. Pengeluaran daging ayam dianggarkan meningkat 4.41% kepada 1.839 juta mt pada 2019. Penggunaan daging ayam dianggarkan meningkat 4.56% kepada 1.741 juta mt pada 2019. • Poultry meat consumption is estimated to increase by 4.56% to 1.741 million mt in 2019. Purata harga ladang tahunan bagi ayam pedaging dianggarkan meningkat 1.3% kepada RM5.50/kg berat hidup pada 2019. • Broiler chicken average annual ex-farm price estimated to increase by 1.3% to RM5.50/kg live Jabatan Perkhidmatan Veterinar menggalakkan pengusaha daging ayam untuk menggunakan teknologi perladangan sistem tertutup yang moden bagi weight in 2019. mengurangkan isu-isu pencemaran dan meningkatkan keefisienan perusahaan. • Poultry farmers urged by the Department of Veterinary Services to adopt modern close system farming technologies to reduce environmental pollution issues and to increase farming efficiency. Industri perusahaan daging ayam membentuk sektor ternakan paling maju di Malaysia, dengan sistem pengeluaran yang paling dikomersialkan dan bersepadu. Penggunaan teknologi pengeluaran dan pemberian makanan yang moden memastikan transformasi yang berterusan bagi industri ini. Sebagai sumber protein paling murah bagi penduduk, pengeluaran daging ayam akan dipertingkatkan bagi mengukuhkan jaminan makanan negara, dan menyediakan industri untuk menangani kenaikan
  100. Pengeluaran daging ayam (000 tan) Poultry meat production (000 tonnes) 2017 2016 1,755.2 1,724,4 Pengeluaran daging ayam (Eksport) (tan) Poultry meat production (Export) (tonnes) The poultry industry is the most advanced livestock sector in 2017 2016 Malaysia, possessing the most commercialised and integrated production system. The industry has been in a continuous transformation mode towards adopting state of the art production and feeding technologies. As the cheapest source 37,128.8 36,576.1 of protein for the people, poultry production is expected to be ramped up to strengthen national food security and become future-ready in expectation for increased demand for free range and organic variants. Moving forward the nation intends Tahap Sara Diri (SSL) SELF-SUFFICIENCY Level (SSL) to grow export opportunities, capitalising on the recognition of Malaysia’s halal certification. It is estimated that an additional investment of over RM216 million in infrastructures will be required by the industry. 2017 2016 96.0% 98.2% Agrobank offers a range of financing products suitable for poultry farming, depending on needs and purpose. These range from micro financing (MUS1M-i), Term Financing, Working-capital-i (Tawarruq), Fund for Food (3F) and even Machinery & Equipment Financing-i (MAEF-i). Sumber: Jabatan Statistik Malaysia Source: Department of Statistics Malaysia
  101. AHLI LEMBAGA PENGARAH BOARD OF DIRECTORS 92 AGROBANK Mengenai Kami 01 About Us Datin Setia Shahariah Hashim Tan Sri Mohamad Zabidi Zainal DATUK SERI DR . ISMAIL HAJI BAKAR Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information DATO’ DR. YUSOF ISMAIL IBRAHIM HASSAN
  102. LAPORAN TAHUNAN 2018 ANNUAL REPORT Abdul Rahim Abd Hadi Dato ’ Dr.Mohamad Hashim Ahmad Tajudin FAIZAH ABDULLAH Jit Singh A/L Santok Singh AZIZAH ABDUL RAHMAN 93
  103. PROFIL AHLI LEMBAGA PENGARAH BOARD OF DIRECTORS ’ PROFILES Tan Sri Mohamad Zabidi Zainal Pengerusi (Pengarah Bebas Bukan Eksekutif) Chairman (Independent Non-Executive Director) Warganegara/Nationality: Malaysia/Malaysian Umur/Age: 62 Tarikh lahir/Date of birth: 28 Jun/June 1956 Kelayakan/Qualifications: 94 AGROBANK • Program Pengurusan Lanjutan, Harvard University, Amerika Syarikat Advanced Management Programme, Harvard University, United States of America • Ijazah Sarjana Pentadbiran Awam, Universiti Malaya Master in Public Administration, University of Malaya • Ijazah Sarjana Muda Sastera Pengajian Asia Tenggara (Kepujian), Universiti Malaya Bachelor in Arts (Hons) Southeast Asia Studies, University of Malaya • Diploma Pentadbiran Awam, Institut Tadbiran Awam Negara (INTAN) Diploma in Public Administration, National Institute of Public Administration (INTAN) Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 Jawatan pengarah dalam syarikat awam lain/Directorship in other public companies: Bagaimana Kami Ditadbir Urus - 03 2018 Events 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Pengalaman/Experiences: Tarikh dilantik/ Date appointed: 29 Julai/July 2016 •Mantan Ketua Pengarah Perkhidmatan Awam Malaysia, dengan lebih 37 tahun pengalaman dalam sektor awam Former Director-General of Public Service of Malaysia, with more than 37 years of experience in the public sector • Mantan Timbalan Ketua Setiausaha (Kewangan) Kementerian Kesihatan Former Deputy Secretary-General (Finance) of Ministry of Health • Mantan Setiausaha Kerajaan Negeri Perlis Former State Secretary of Perlis • Mantan Ketua Pengarah MAMPU, Jabatan Perdana Menteri Former Director-General of MAMPU, Prime Minister Department Tan Sri Mohamad Zabidi Zainal merupakan salah seorang peneraju transformasi sektor awam dengan pengalaman yang meluas dalam bidang ini. Tan Sri Mohamad Zabidi is one of the key drivers of public sector’s transformation and has spoken and written widely in that area. Keahlian dalam Jawatankuasa Lembaga/Membership in Board Committee: - Beliau tidak mempunyai percanggahan kepentingan atau sebarang hubungan kekeluargaan dengan mana-mana pengarah/pemegang saham. He does not have any conflict of interest or any family relationship with any other director and/or major shareholders. Beliau tidak pernah disabitkan dengan apa-apa kesalahan dalam tempoh lima (5) tahun yang lalu dan tidak dikenakan sebarang sekatan oleh mana-mana badan pengawalseliaan yang relevan pada tahun 2018. He has not been convicted of offences within the past 5 years nor has he been imposed of any public sanctions by any relevant regulatory bodies in 2018.
  104. LAPORAN TAHUNAN 2018 ANNUAL REPORT 95
  105. PROFIL AHLI LEMBAGA PENGARAH BOARD OF DIRECTORS ’ PROFILES Dato’ Dr. Mohamad Hashim Ahmad Tajudin Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Warganegara/Nationality: Malaysia/Malaysian Umur/Age: 64 Tarikh lahir/Date of birth: 18 Jun/June 1954 Pengalaman/Experiences: Kelayakan/Qualifications: 96 AGROBANK •Ijazah Kedoktoran dalam Kesuburan dan Pengurusan Tanah, Universiti Putra Malaysia (UPM) PhD in Soil Fertility and Management, Universiti Putra Malaysia (UPM) •Ijazah Sarjana Sains Pertanian (Kimia dan Kesuburan Tanah), Universiti Putra Malaysia (UPM) MSc. Agriculture (Soil Chemistry and Fertility), Universiti Putra Malaysia (UPM) •Ijazah Sarjana Muda Sains Pertanian, Universiti Putra Malaysia (UPM) BSc. Agriculture, Universiti Putra Malaysia (UPM) •Program Pengurusan Perniagaan Perdana Harvard, Malaysia Harvard Premier Business Management Programme, Malaysia Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 •Program Pengurusan Lanjutan (AMP), INSEAD, Perancis Advanced Management Programme (AMP) at INSEAD, France 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Jawatan pengarah dalam syarikat awam lain/Directorship in other public companies: - Tarikh dilantik/ Date appointed: 3 Julai/July 2014 •Pengerusi, PKEINPk Sdn. Bhd. Chairman, PKEINPk Sdn. Bhd. •Ahli Majlis, Majlis Agama Islam dan ‘Adat Melayu Perak’ (MAIPk) Council Member, Majlis Agama Islam dan ‘Adat Melayu Perak’ (MAIPk) • Naib Presiden, Outward Bound Trust of Malaysia (OBM) Vice President, Outward Bound Trust of Malaysia (OBM) • Ahli Majlis, Institut Pengurusan Perladangan Antarabangsa Malaysia (IIPM) Council Member of International Institute of Malaysia (IIPM) • Ahli Lembaga Pengarah, Incorporated Society of Planters (ISP) Board Member of the Incorporated Society of Planters (ISP) •Mantan Pengarah Urusan Kumpulan, Chemical Company of Malaysia Berhad (CCM) Former Group Managing Director, Chemical Company of Malaysia Berhad (CCM) •Mantan Pengarah Kanan, Bahagian Minyak dan Lelemak, Golden Hope Plantations Berhad Former Senior Director, Oils and Fats Division, Golden Hope Plantations Berhad •Mantan Pengarah Penyelidikan, Golden Hope Plantations Berhad Former Director of Research, Golden Hope Plantations Berhad •Mantan Pengarah Eksekutif, Golden Hope Research Sdn. Bhd. Former Executive Director, Golden Hope Research Sdn. Bhd. •Mantan Ketua Pegawai Eksekutif, Tradewinds Plantation Berhad Former Chief Executive Officer, Tradewinds Plantation Berhad • Mantan Ketua Pegawai Eksekutif, Padiberas Nasional Berhad (BERNAS) Former Chief Executive Officer, Padiberas Nasional Berhad (BERNAS) Keahlian dalam Jawatankuasa Lembaga/Membership in Board Committee: • • • • • Jawatankuasa Lembaga Kredit & Pelaburan Board Credit & Investment Committee Jawatankuasa Lembaga Pengurusan Risiko Board Risk Management Committee Jawatankuasa Lembaga Audit Board Audit Committee Jawatankuasa Lembaga Imbuhan (Pengerusi) Board Remuneration Committee (Chairman) Jawatankuasa Lembaga Teknologi Maklumat Board Information Technology Committee Beliau tidak mempunyai percanggahan kepentingan atau sebarang hubungan kekeluargaan dengan mana-mana pengarah/pemegang saham. He does not have any conflict of interest or any family relationship with any other director and/or major shareholders. Beliau tidak pernah disabitkan dengan apa-apa kesalahan dalam tempoh lima (5) tahun yang lalu dan tidak dikenakan sebarang sekatan oleh mana-mana badan pengawalseliaan yang relevan pada tahun 2018. He has not been convicted of offences within the past 5 years nor has he been imposed of any public sanctions by any relevant regulatory bodies in 2018.
  106. Datin Setia Shahariah Hashim Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Warganegara /Nationality: Malaysia/Malaysian Umur/Age: 62 Tarikh lahir/Date of birth: 25 November/November 1956 Pengalaman/Experiences: Kelayakan/Qualifications: •Ijazah Sarjana Pentadbiran Perniagaan (MBA), University of Stirling, United Kingdom Master in Business Administration (MBA) from University of Stirling, United Kingdom •Ijazah Sarjana Muda Ekonomi (Kepujian), Universiti Malaya (UM) Bachelor of Economics (Hons) from University of Malaya (UM) Jawatan pengarah dalam syarikat awam lain/Directorship in other public companies: - Tarikh dilantik/ Date appointed: 1 Julai/July 2016 •Mantan Timbalan Pengarah, Jabatan Kewangan Pembangunan dan Enterpris, Bank Negara Malaysia Former Deputy Director, Development Finance Enterprise Department, Bank Negara Malaysia •Bertugas di pelbagai jabatan di Bank Negara Malaysia termasuk di Jabatan Pengawalan Bank dan Jabatan Kawalan Pertukaran Wang Attached to various departments in Bank Negara Malaysia including the Bank Regulation Department and Exchange Control Department Datin Setia Shahariah berpengalaman lebih 30 tahun dalam bidang penggubalan dasar bagi pembangunan dan pengawalseliaan institusi kewangan terutama Institusi Kewangan Pembangunan (IKP). Beliau juga banyak terlibat dalam penggubalan dasar bagi pembangunan Perusahaan Kecil dan Sederhana (PKS). Beliau turut memainkan peranan penting dalam pelaksanaan Akta Institusi Kewangan Pembangunan 2002 (AIKP) dan penggubalan dasar-dasar pengawalseliaan dan penyeliaan bagi institusi kewangan pembangunan (IKP) di Malaysia. Ini merangkumi pembentukan pelan induk untuk mempertingkatkan keberkesanan dan keefisienan IKP. Beliau memainkan peranan yang aktif dalam pembangunan SME, di mana beliau terlibat dalam penggubalan dasar-dasar untuk mendorong pembangunan SME, termasuk penubuhan Majlis Pembangunan PKS Kebangsaan dan SME Corp. Datin Setia Shahariah has more than 30 years of experience in the area of policy formulation for the development, regulation and supervision of financial institutions, particularly the Development Financial Institutions (DFIs). She has also been extensively involved in policy formulation for the development of Small and Medium Enterprises (SMEs). She played an instrumental role in the enactment of the Development Financial Institution Act 2002 (DFIA) and the formulation of the regulatory and supervisory policies for the development financial institutions (DFIs) in Malaysia. This includes formulating the strategic masterplan to strengthen the effectiveness and efficiency of the DFIs. In the area of SME development, she was actively involved in formulating policies to promote the development of SMEs, including the setting up of the National SME Development Council and SME Corp. Keahlian dalam Jawatankuasa Lembaga/Membership in Board Committee: • • • Jawatankuasa Lembaga Kredit & Pelaburan Board Credit & Investment Committee Jawatankuasa Lembaga Pengurusan Risiko Board Risk Management Committee Jawatankuasa Lembaga Audit Board Audit Committee • Jawatankuasa Pencalonan (Pengerusi) Nomination Committee (Chairman) •Jawatankuasa Lembaga Teknologi Maklumat Board Information Technology Committee Beliau tidak mempunyai percanggahan kepentingan atau sebarang hubungan kekeluargaan dengan mana-mana pengarah/pemegang saham. She does not have any conflict of interest or any family relationship with any other director and/or major shareholders. Beliau tidak pernah disabitkan dengan apa-apa kesalahan dalam tempoh lima (5) tahun yang lalu dan tidak dikenakan sebarang sekatan oleh mana-mana badan pengawalseliaan yang relevan pada tahun 2018. She has not been convicted of offences within the past 5 years nor has she been imposed of any public sanctions by any relevant regulatory bodies in 2018. LAPORAN TAHUNAN 2018 ANNUAL REPORT 97
  107. PROFIL AHLI LEMBAGA PENGARAH BOARD OF DIRECTORS ’ PROFILES Azizah Abdul Rahman Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Warganegara/Nationality: Malaysia/Malaysian Umur/Age: 63 Tarikh lahir/Date of birth: 24 Ogos/August 1955 Pengalaman/Experiences: Kelayakan/Qualifications: 98 AGROBANK •Akauntan Pengurusan Global Berkanun (GCMA), Chartered Institute of Management Accountants, United Kingdom Chartered Global Management Accountant (CGMA), Chartered Institute of Management Accountants, United Kingdom Tarikh dilantik/ Date appointed: 1 Julai/July 2016 •Mantan Pengarah, Ternakan Bersepadu dan Pembuatan Makanan, QSR Brands/KFC Holdings Malaysia Berhad Former Director, Integrated Poultry and Food Manufacturing, QSR Brands/KFC Holdings Malaysia Berhad • Mantan Ketua Pegawai Kewangan, Johor Corporation Former Chief Financial Officer, Johor Corporation •Mantan Pengurus Besar, Kewangan, Johor Corporation Former General Manager, Finance, Johor Corporation •Mantan Pengurus Besar, Bahagian Kewangan Korporat, Antara Steel Mills Sdn. Bhd. Former General Manager, Finance and Corporate Division, Antara Steel Mills Sdn. Bhd. •Ahli, Institut Akauntan Malaysia (MIA), Malaysia Member of Malaysia Institute of Accountants (MIA), Malaysia •Pengarah Risiko Berkelayakan, Institute of Enterprise Risk Practitioners (IERP) Qualified Risk Director, Institute of Enterprise Risk Practitioners (IERP) •Ahli Felo, Chartered Institute of Management Accountants (FCMA), United Kingdom Fellow Member of the Chartered Institute of Management Accountants (FCMA), United Kingdom Keahlian dalam Jawatankuasa Lembaga/Membership in Board Committee • Jawatankuasa Lembaga Pengurusan Risiko Board Risk Management Committee • Jawatankuasa Lembaga Audit (Pengerusi) Board Audit Committee (Chairman) • Jawatankuasa Imbuhan Remuneration Committee • Jawatankuasa Pencalonan Nomination Committee Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Jawatan pengarah dalam syarikat awam lain/Directorship in other public companies: • Jawatankuasa Lembaga Teknologi Maklumat Board Information Technology Committee •Pengarah Bebas Bukan Eksekutif di AWQAF Holdings Berhad Independent Non-Executive Director at AWQAF Holdings Berhad •Pengarah Bebas Bukan Eksekutif di Nationwide Express Courier Services Berhad Independent Non-Executive Director at Nationwide Express Courier Services Berhad Beliau tidak mempunyai percanggahan kepentingan atau sebarang hubungan kekeluargaan dengan mana-mana pengarah/pemegang saham. She does not have any conflict of interest or any family relationship with any other director and/or major shareholders. Beliau tidak pernah disabitkan dengan apa-apa kesalahan dalam tempoh lima (5) tahun yang lalu dan tidak dikenakan sebarang sekatan oleh mana-mana badan pengawalseliaan yang relevan pada tahun 2018. She has not been convicted of offences within the past 5 years nor has she been imposed of any public sanctions by any relevant regulatory bodies in 2018.
  108. Dato ’ Dr. Yusof Ismail Pengarah Bukan Bebas Bukan Eksekutif Non-Independent Non-Executive Director Warganegara/Nationality: Malaysia/Malaysian Umur/Age: 56 Tarikh lahir/Date of birth: 14 Mei/May 1962 Pengalaman/Experiences: Kelayakan/Qualifications: •Ijazah Kedoktoran dalam Pembangunan Ekonomi Komuniti, Universiti Putra Malaysia (UPM) PhD in Community Economic Development, Universiti Putra Malaysia (UPM) •Ijazah Sarjana Ekonomi Pembangunan, Williams College Massaachusetts, United States of America Master in Development Economics, Williams College Massachusetts,United States of America •Ijazah Sarjana Muda Ekonomi (Kepujian), Universiti Malaya (UM) Bachelor of Economics (Hons), University of Malaya (UM) •Diploma Pentadbiran Awam, Institut Tadbiran Awam Negara (INTAN) Diploma in Public Administration, National Institute of Public Administration (INTAN) Tarikh dilantik/ Date appointed: 14 Disember/ December 2016 •Setiausaha Rendah, Bahagian Pelaburan Strategik, Kementerian Kewangan Under Secretary, Strategic Investment Division, Ministry of Finance • Mantan Timbalan Setiausaha Rendah, Syarikat Pelaburan Kerajaan, Kementerian Kewangan Former Deputy Under Secretary, Government Investment Companies, Ministry of Finance •Mantan Timbalan Ketua Pegawai Eksekutif, Pihak Berkuasa Lembaga Pembangunan Langkawi (LADA) Former Deputy Chief Executive Officer, Langkawi Development Authority (LADA) •Mantan Ketua Penolong Setiausaha, Kementerian Kemajuan Luar Bandar dan Wilayah Former Principal Assistant Secretary, Ministry of Rural and Regional Development •Mantan Timbalan Pengarah, Unit Perancang Ekonomi, Jabatan Perdana Menteri Former Deputy Director, Economic Planning Unit, Prime Minister’s Department •Mantan Pegawai Khas kepada Ketua Setiausaha, Kementerian Kewangan Former Special Officer to the Chief Secretary, Ministry of Finance •Mantan Penolong Setiausaha, Bahagian Kewangan, Seksyen Pelaburan, Kementerian Kewangan Former Assistant Secretary, Finance Division, Investment Section, Ministry of Finance •Mantan Penolong Setiausaha, Bahagian Ekonomi, Kementerian Kewangan Former Assistant Secretary, Economic Division, Ministry of Finance Keahlian dalam Jawatankuasa Lembaga/Membership in Board Committee: Jawatan pengarah dalam syarikat awam lain/Directorship in other public companies: •Lembaga Kemajuan Tanah Persekutuan (FELDA) Federal Land Development Authority (FELDA) •Panel Pelaburan Kumpulan Wang Persaraan (KWAP) Investment Panel of Retirement Fund (KWAP) •Malaysia Rail Link Sdn. Bhd. Malaysia Rail Link Sdn. Bhd. •Universiti Pendidikan Sultan Idris (UPSI) Sultan Idris Education University (UPSI) •Felda Investment Corporation Sdn. Bhd. Felda Investment Corporation Sdn. Bhd. •Mulia Property Development Sdn. Bhd. Mulia Property Development Sdn. Bhd. •Suria Strategic Energy Resources Sdn. Bhd. Suria Strategic Energy Resources Sdn. Bhd. • Jawatankuasa Lembaga Audit Board Audit Committee Beliau tidak mempunyai percanggahan kepentingan atau sebarang hubungan kekeluargaan dengan mana-mana pengarah/pemegang saham. He does not have any conflict of interest or any family relationship with any other director and/or major shareholders. Beliau tidak pernah disabitkan dengan apa-apa kesalahan dalam tempoh lima (5) tahun yang lalu dan tidak dikenakan sebarang sekatan oleh mana-mana badan pengawalseliaan yang relevan pada tahun 2018. He has not been convicted of offences within the past 5 years nor has he been imposed of any public sanctions by any relevant regulatory bodies in 2018. LAPORAN TAHUNAN 2018 ANNUAL REPORT 99
  109. PROFIL AHLI LEMBAGA PENGARAH BOARD OF DIRECTORS ’ PROFILES Ibrahim Hassan Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Warganegara/Nationality: Malaysia/Malaysian Umur/Age: 62 Tarikh lahir/Date of birth: 17 Januari/January 1956 Pengalaman/Experiences: Kelayakan/Qualifications: 100 AGROBANK •Iiazah Sarjana Muda Ekonomi (Kepujian), Universiti Malaya (UM) Bachelor of Economics (Hons), University of Malaya (UM) Tarikh dilantik/ Date appointed: 1 Mac/March 2017 • Mantan Pengarah Urusan, RHB Islamic Bank Berhad Former Managing Director, RHB Islamic Bank Berhad • Mantan Presiden Direktor, Maybank Shariah Indonesia, Jakarta Former President Director, Maybank Shariah Indonesia, Jakarta •Mantan Ketua Pegawai Eksekutif, Maybank Islamic Berhad Former Chief Executive Officer, Maybank Islamic Berhad •Mantan Ketua Bahagian Perbankan Antarabangsa, Maybank Former Head International Banking, Maybank • Mantan Ketua Pengurusan Risiko Pasaran, Maybank Former Head Market Risk Management, Maybank Jawatan pengarah dalam syarikat awam lain/Directorship in other public companies: •Pengarah Bebas Bukan Eksekutif Alliance Islamic Bank Malaysia Berhad Independent Non-Executive Director of Alliance Islamic Bank Malaysia Berhad •Mantan Ketua Urusan Perbendaharaan bagi Cawangan Maybank di Hong Kong, New York dan London Former Head of Treasury for Hong Kong, New York and London Branch of Maybank Keahlian dalam Jawatankuasa Lembaga/Membership in Board Committee: • Jawatankuasa Lembaga Kredit & Pelaburan Board Credit & Investment Committee • Jawatankuasa Lembaga Pengurusan Risiko (Pengerusi) Board Risk Management Committee (Chairman) • Jawatankuasa Lembaga Audit Board Audit Committee Mengenai Kami 01 About Us Prestasi Strategik Kami • Jawatankuasa Imbuhan Remuneration Committee • Jawatankuasa Pencalonan Nomination Committee 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Beliau tidak mempunyai percanggahan kepentingan atau sebarang hubungan kekeluargaan dengan mana-mana pengarah/pemegang saham. He does not have any conflict of interest or any family relationship with any other director and/or major shareholders. Beliau tidak pernah disabitkan dengan apa-apa kesalahan dalam tempoh lima (5) tahun yang lalu dan tidak dikenakan sebarang sekatan oleh mana-mana badan pengawalseliaan yang relevan pada tahun 2018. He has not been convicted of offences within the past 5 years nor has he been imposed of any public sanctions by any relevant regulatory bodies in 2018.
  110. Faizah Abdullah Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Warganegara /Nationality: Malaysia/Malaysian Umur/Age: 62 Tarikh lahir/Date of birth: 20 Julai/July 1956 Pengalaman/Experiences: Kelayakan/Qualifications: •Pengarah Risiko Bertauliah, Institute of Enterprise Risk Practitioners (IERP) Qualified Risk Director, Institute of Enterprise Risk Practitioners (IERP) •Ijazah Sarjana Muda Sains Kewangan, Indiana University, Bloomington, Indiana, United States of America BSc in Finance, Indiana University, Bloomington, Indiana, United States of America •Diploma Pengajian Perniagaan, Institut Teknologi MARA Diploma in Business Studies, Institut Teknologi MARA Tarikh dilantik/ Date appointed: 18 April/April 2017 •Ahli Panel Agensi Akreditasi Kewangan (FAA) Panel Member for Financial Accreditation Agency (FAA) •Ahli Panel Jawatankuasa Teknikal Penilaian Standard (JPTS) Panel Member for Jawatankuasa Teknikal Penilaian Standard (JPTS) •Bekas Tenaga Pengajar di Akademi Maybank Bertanggungjawab melatih pegawai dan pengurus pada tahap asas, pertengahan dan lanjutan dalam bidang kredit, operasi kredit dan pembangunan perniagaan. Former Trainer at Maybank Academy Responsible to train officers and managers at basic, intermediate and advance level in areas of credit, credit operation and business development. •Mantan Ketua, Perusahaan Kecil dan Sederhana, Perkhidmatan Kewangan Pengguna, Maybank Former Head, Small Medium Enterprise, Consumer Financial Services, Maybank •Mantan Ketua, Pembangunan Produk, Perbankan Perniagaan, Maybank Former Head, Product Development, Business Banking, Maybank • Mantan Ketua, Perniagaan Serantau, Maybank Former Head, Regional Business, Maybank • Mantan Ketua, Unit Perbankan Komersial, Wilayah Selangor/Negeri Sembilan Former Head, Commercial Banking Unit, Region Selangor/Negeri Sembilan Keahlian dalam Jawatankuasa Lembaga/Membership in Board Committee: Jawatan pengarah dalam syarikat awam lain/Directorship in other public companies: - • Jawatankuasa Lembaga Kredit & Pelaburan (Pengerusi) Board Credit & Investment Committee (Chairman) • Jawatankuasa Lembaga Pengurusan Risiko Board Risk Management Committee • Jawatankuasa Pencalonan Nomination Committee • Jawatankuasa Lembaga Teknologi Maklumat Board Information Technology Committee Beliau tidak mempunyai percanggahan kepentingan atau sebarang hubungan kekeluargaan dengan mana-mana pengarah/pemegang saham. She does not have any conflict of interest or any family relationship with any other director and/or major shareholders. Beliau tidak pernah disabitkan dengan apa-apa kesalahan dalam tempoh lima (5) tahun yang lalu dan tidak dikenakan sebarang sekatan oleh mana-mana badan pengawalseliaan yang relevan pada tahun 2018. She has not been convicted of offences within the past 5 years nor has she been imposed of any public sanctions by any relevant regulatory bodies in 2018. LAPORAN TAHUNAN 2018 ANNUAL REPORT 101
  111. PROFIL AHLI LEMBAGA PENGARAH BOARD OF DIRECTORS ’ PROFILES Abdul Rahim Abd Hadi Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Warganegara/Nationality: Malaysia/Malaysian Umur/Age: 50 Tarikh lahir/Date of birth: 17 Februari/February 1968 Pengalaman/Experiences: Kelayakan/Qualifications: 102 AGROBANK •Ijazah Sarjana Muda Undangundang (Kepujian), Universiti Islam Antarabangsa Malaysia (IIUM) Bachelor of Laws (Hons), International Islamic University Malaysia (IIUM) Tarikh dilantik/ Date appointed: 9 Januari/January 2018 • Rakan Kongsi, Rajes Hisham Rahim & Gopal Partner, Rajes Hisham Rahim & Gopal • Mantan Rakan Kongsi, Rahim Hadi & Soraya Yong Former Partner, Rahim Hadi & Soraya Yong •Mantan Rakan Kongsi, Edlin Ghazaly Raghavji Former Partner, Edlin Ghazaly Raghavji • Mantan Rakan Kongsi Rendah, Abdul Razak Kassim & Zawawi Former Junior Partner, Abdul Razak Kassim & Zawawi • Mantan Pembantu Peguam, Paul Chong & Kraal Former Legal Assistant, Paul Chong & Kraal Jawatan pengarah dalam syarikat awam lain/Directorship in other public companies: - Keahlian dalam Jawatankuasa Lembaga/Membership in Board Committee: • Jawatankuasa Lembaga Kredit & Pelaburan Board Credit & Investment Committee • Jawatankuasa Imbuhan Remuneration Committee • Jawatankuasa Pencalonan Nomination Committee • Jawatankuasa Lembaga Teknologi Maklumat (Pengerusi) Board Information Technology Committee (Chairman) Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Beliau tidak mempunyai percanggahan kepentingan atau sebarang hubungan kekeluargaan dengan mana-mana pengarah/pemegang saham. He does not have any conflict of interest or any family relationship with any other director and/or major shareholders. Beliau tidak pernah disabitkan dengan apa-apa kesalahan dalam tempoh lima (5) tahun yang lalu dan tidak dikenakan sebarang sekatan oleh mana-mana badan pengawalseliaan yang relevan pada tahun 2018. He has not been convicted of offences within the past 5 years nor has he been imposed of any public sanctions by any relevant regulatory bodies in 2018.
  112. Jit Singh A /L Santok Singh Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Warganegara/Nationality: Malaysia/Malaysian Umur/Age: 65 Tarikh lahir/Date of birth: 9 Mac/March 1953 Pengalaman/Experiences: Kelayakan/Qualifications: •Ijazah Sarjana Muda Sains Komputer, University of London, United Kingdom Bachelor of Computer Science from University of London, United Kingdom Tarikh dilantik Date appointed 12 Oktober/ October 2018 • Pengasas/Ketua Perunding, Ironhorse Asia Sdn. Bhd. Founder/Principal Consultant, Ironhorse Asia Sdn. Bhd. • Mantan Pengarah Urusan, Wincor Nixdorf Retail Malaysia, Thailand Former Managing Director, Wincor Nixdorf Retail Malaysia, Thailand •Mantan Pengurus Besar, Naib Presiden & Naib Presiden Kanan – Perkhidmatan IT Kumpulan, Kumpulan MUI Former General Manager, Vice President & Senior Vice President – Group IT Services, The MUI Group •Perunding Perniagaan Runcit, Fujitsu Systems Business Malaysia Retail Business Consultant, Fujitsu Systems Business Malaysia • Perunding Perniagaan, ICL-International Computer Limited-United Kingdom Business Consultant, ICL-International Computer Limited-United Kingdom Jawatan pengarah dalam syarikat awam lain/Directorship in other public companies: - Encik Jit Singh berpengalaman 43 tahun dalam Pengurusan IT dan 29 tahun dalam Pengurusan Perniagaan di peringkat transaksi, operasi dan pengurusan korporat. Pengalaman perniagaan beliau merangkumi pelbagai industri termasuk Hotel dan Harta, Runcit dan Rantaian Bekalan, Pembrokeran Saham, Harta, Kewangan dan Sistem Pengurusan Lapangan Terbang. Encik Singh turut menimba pengalaman yang berharga sebagai pengurus perniagaan global, semasa bertugas di berbilang negara termasuk di United Kingdom, Amerika Syarikat, Australia, China, Hong Kong, Singapura, Indonesia, Thailand, India, dan Malaysia. Encik Jit Singh has 43 years’ experience in IT Management and 29 years in Business Management at the transaction, operations and corporate management levels. His business exposure and experience spans in variety of industries including Hotel and Properties, Retail and Supply Chain Management, Stock Broking, Properties, Finance and Airport Management System. Mr. Singh also has valuable experience as a global business manager, having worked in many countries including the United Kingdom, United States of America, Australia, China, Hong Kong, Singapore, Indonesia, Thailand, India, and Malaysia. Keahlian dalam Jawatankuasa Lembaga/Membership in Board Committee: - Beliau tidak mempunyai percanggahan kepentingan atau sebarang hubungan kekeluargaan dengan mana-mana pengarah/pemegang saham. He does not have any conflict of interest or any family relationship with any other director and/or major shareholders. Beliau tidak pernah disabitkan dengan apa-apa kesalahan dalam tempoh lima (5) tahun yang lalu dan tidak dikenakan sebarang sekatan oleh mana-mana badan pengawalseliaan yang relevan pada tahun 2018. He has not been convicted of offences within the past 5 years nor has he been imposed of any public sanctions by any relevant regulatory bodies in 2018. LAPORAN TAHUNAN 2018 ANNUAL REPORT 103
  113. PROFIL AHLI LEMBAGA PENGARAH BOARD OF DIRECTORS ’ PROFILES Datuk Seri Dr. Ismail HAJI Bakar Pengarah Bukan Bebas Bukan Eksekutif Non-Independent Non-Executive Director Warganegara/Nationality: Malaysia/Malaysian Umur/Age: 58 Tarikh lahir/Date of birth: 19 Januari/January 1960 Pengalaman/Experiences: Kelayakan/Qualifications: 104 AGROBANK •Ijazah Kedoktoran dari University of Hull, United Kingdom PhD from University of Hull, United Kingdom •Ijazah Sarjana Pentadbiran Perniagaan (MBA), University of Hull, United Kingdom Master of Business Administration (MBA), University of Hull, United Kingdom •Ahli Chartered Institute of Purchasing and Supply (CIPS), United Kingdom Member of the Chartered Institute of Purchasing and Supply (CIPS), United Kingdom Mengenai Kami 01 About Us •Profesor Adjung, Sekolah Kejuruteraan dan Keusahawanan, Universiti Malaysia Perlis (UNIMAP) Adjunct Professor at the School of Engineering and Entrepreneurship in Universiti Malaysia Perlis (UNIMAP) Tarikh dilantik/ Date appointed: 1 Julai/July 2016 • Ketua Setiausaha kepada Kerajaan Malaysia Chief Secretary to the Government of Malaysia • Mantan Ketua Setiausaha Perbendaharaan, Kementerian Kewangan Former Secretary General of Treasury, Ministry Of Finance •Mantan Ketua Setiausaha, Kementerian Pertanian dan Industri Asas Tani Former Secretary General, Ministry of Agriculture and Agro-based Industry • Mantan Ketua Setiausaha, Kementerian Pengangkutan Former Secretary General, Ministry of Transport •Mantan Pengarah, Belanjawan Negara, Pejabat Belanjawan Negara, Perbendaharaan, Kementerian Kewangan Former Director, National Budget, National Budget Office, Treasury, Ministry of Finance • Mantan Pengarah, Unit Strategi Nasional, Kementerian Kewangan Former Director, National Strategic Unit, Ministry of Finance • Mantan Timbalan Ketua Setiausaha (Dasar), Kementerian Pertahanan Former Deputy Secretary General (Policy), Ministry of Defence • Mantan Penasihat Kanan, Pengarah Eksekutif (Kumpulan Asia Tenggara), Bank Dunia Former Senior Advisor, Executive Director (SEA Group), World Bank • Mantan Ketua Bahagian, Perolehan Kerajaan, Kementerian Kewangan Former Head of Section, Government Procurement, Ministry of Finance •Mantan Ketua Perancangan, Penyelidikan dan Dasar, Perolehan Kerajaan, Kementerian Kewangan Former Head of Planning, Research and Policy, Government Procurement, Ministry of Finance • Mantan Penolong Pengarah, Pasukan Petugas Anti Narkotik Malaysia Former Assistant Director, Anti Narcotic Task Force Malaysia • Mantan Penolong Setiausaha, Bahagian Kontrak dan Bekalan, Kementerian Kewangan Former Assistant Secretary, Contract and Supply Division, Ministry of Finance Prestasi Strategik Kami 02 Our Strategic Performance Keahlian dalam Jawatankuasa Lembaga/Membership in Board Committee: Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Jawatan pengarah dalam syarikat awam lain/Directorship in other public companies: •Padiberas Nasional Berhad (BERNAS) Padiberas Nasional Berhad (BERNAS) •Perbadanan Insurans Deposit Malaysia Perbadanan Insurans Deposit Malaysia • • Jawatankuasa Pencalonan Nomination Committee Jawatankuasa Imbuhan Remuneration Committee Beliau tidak mempunyai percanggahan kepentingan atau sebarang hubungan kekeluargaan dengan mana-mana pengarah/pemegang saham. He does not have any conflict of interest or any family relationship with any other director and/or major shareholders. Beliau tidak pernah disabitkan dengan apa-apa kesalahan dalam tempoh lima (5) tahun yang lalu dan tidak dikenakan sebarang sekatan oleh mana-mana badan pengawalseliaan yang relevan pada tahun 2018. He has not been convicted of offences within the past 5 years nor has he been imposed of any public sanctions by any relevant regulatory bodies in 2018.
  114. PENYATA TADBIR URUS KORPORAT STATEMENT ON CORPORATE GOVERNANCE Agrobank komited untuk mengekalkan rangka kerja tadbir urus korporat yang terbaik , sejajar dengan piawaian antarabangsa dan keperluan undang-undang. Lembaga Pengarah (Lembaga Pengarah) memperakui kepentingan tadbir urus korporat yang mantap dalam melaksanakan tugas dan tanggungjawab fidusiarinya demi mencapai misi korporat Agrobank dan mempertingkatkan nilai para pemegang saham berdasarkan prinsip Perantaraan Berasaskan Nilai (VBI) yang diterapkan oleh Agrobank. Sebagai Institusi Kewangan Pembangunan (IKP), Lembaga Pengarah menjalankan tanggungjawabnya berpandukan prinsipprinsip dalam Garis Panduan Tadbir Urus Korporat Bank Negara Malaysia (BNM), di bawah Akta Institusi Kewangan Pembangunan (Pindaan) 2015. Garis panduan BNM mentakrifkan tadbir urus korporat sebagai suatu proses dan struktur yang digunakan bagi menentukan hala tuju dan menguruskan perniagaan serta hal-ehwal sesuatu institusi untuk memajukan perniagaan dan meningkatkan kebertanggungjawaban korporat, dengan objektif muktamad untuk merealisasikan nilai pemegang saham dalam jangka masa panjang sambil mengekalkan kepentingan pihak berkepentingan yang lain. Garis panduan ini memastikan keselamatan dan kemantapan pengurusan Agrobank dengan mengimbangkan perniagaan berhemat dengan pengambilan risiko dan melindungi bank daripada salah urus atau aktiviti penipuan bagi membantu pihak pengurusan mencapai objektif sosioekonomi selain menjamin kemampanan kewangan Bank. Berdasarkan garis panduan ini, Lembaga Pengarah telah merangka Piagam yang menggariskan komposisi, peranan dan tanggungjawabnya dengan jelas. Sejak diluluskan oleh Lembaga Pengarah pada 28 November 2008, Piagam ini telah disemak semula sebanyak enam kali. Struktur Tadbir Urus Korporat Di Agrobank, rangka kerja tadbir urus korporat yang menyeluruh memainkan peranan penting dalam budaya, amalan perniagaan dan pematuhan terhadap kawal selia. Khususnya, amalan tadbir urus korporat Agrobank dibina untuk memberi impak yang positif dan membawa kemampanan dalam kehidupan para pelanggan, pembekal, kakitangan, komuniti dan persekitaran Agrobank beroperasi; yang menggambarkan teras utama bagi VBI. Bagi memenuhi kepentingan para pemegang saham dan pihak berkepentingan yang lain, model dan rangka kerja tadbir urus korporat Agrobank disemak, dinilai dan ditambah baik secara berterusan. Lembaga Pengarah bersikap proaktif dalam menerima pakai dasar dan amalan tadbir urus yang menjajarkan kepentingan Lembaga Pengarah dan pihak Pengurusan dengan kepentingan para pemegang saham serta pihak berkepentingan yang lain. Ini dilakukan untuk menggalakkan tahap tatalaku beretika serta pengurusan risiko yang tertinggi, di setiap peringkat organisasi. Rajah di bawah menunjukkan model dan rangka kerja tadbir urus Agrobank, termasuk Jawatankuasa Lembaga Pengarah dan Pengurusan yang sedia ada. Lembaga Pengarah boleh membentuk Jawatankuasa lain, atau meminta para Pengarah menggalas tugas tambahan tertentu dari semasa ke semasa. Agrobank is committed to maintain the best-in-class corporate governance framework which is aligned with international standards and legal requirements. In support of this objective, the Board of Directors (the Board) of Agrobank recognises the importance of sound corporate governance in discharging its fiduciary duties and responsibilities towards achieving Agrobank’s corporate mission and enhancing its shareholder value based on the Value-based Intermediation (VBI) principles adopted by Agrobank. As a development financial institution (DFI), the Board is guided by the principles set out in Bank Negara Malaysia’s (BNM) Guidelines on Corporate Governance under the Development Financial Institutions (Amended) Act 2015. Corporate governance is defined by BNM’s guidelines as being a process and structure used to direct and manage the business and affairs of an institution towards enhancing business prosperity and corporate accountability with the ultimate objective of realising long-term shareholder value, while taking into account the interest of other stakeholders. These guidelines serve to ensure that Agrobank is being managed in a safe and sound manner, balancing the business prudence with risk-taking, and guarding against management or fraudulent activity to help the Bank meet its socio-economic objectives while assuring its financial sustainability. Based on these guidelines, the Board has developed a Charter which outlines its composition, roles and responsibilities. The Charter has been reviewed six times since it was first approved by the Board on 28 November 2008. Corporate Governance Structure A comprehensive corporate governance framework plays a key role in Agrobank’s culture, business practices and regulatory compliance. Intrinsically, Agrobank’s corporate governance practices are built on making a positive and sustainable impact in the lives of Agrobank’s customers, suppliers, employees, communities and on the environment in which Agrobank operates; which represents the underpinning thrusts of VBI. In order to serve the interest of shareholders and other stakeholders, Agrobank’s corporate governance model and framework are subject to on-going review, assessment and improvement. The Board proactively adopts governance policies and practices which are designed to align with the interests of the Board and the Management with those of shareholders and other stakeholders. It is also formulated to promote the highest standards of ethical behaviour and risk management at every level of the organisation. The diagram below shows Agrobank’s governance model and framework, including the current Committees of the Board and the Management. The Board may from time to time, form other relevant committee or request directors to undertake specific extra duties. LAPORAN TAHUNAN 2018 ANNUAL REPORT 105
  115. PENYATA TADBIR URUS KORPORAT STATEMENT ON CORPORATE GOVERNANCE PEMEGANG SAHAM SHAREHOLDERS LEMBAGA PENGARAH BOARD OF DIRECTORS JAWATANKUASA LEMBAGA PENGARAH BOARD COMMITTEES PRESIDEN /KETUA PEGAWAI EKSEKUTIF/ EKSEKUTIF PENGURUSAN KUMPULAN PRESIDENT/CHIEF EXECUTIVE OFFICER/ GROUP MANAGEMENT EXECUTIVE PIHAK BERKEPENTINGAN STAKEHOLDERS 106 Model tadbir urus korporat Agrobank dimantapkan oleh peraturan dan prosedur dalaman yang teguh, yang mengawal selia cara Agrobank beroperasi sebagai sebuah organisasi, dan tatalaku kakitangan profesional di Agrobank. Model tadbir urus ini menunjukkan pembahagian tanggungjawab dalam Agrobank dengan peranan dibutirkan bagi mengukuhkan dan memastikan keberkesanan proses. Selaras dengan model ini, Lembaga Pengarah juga beroperasi menerusi beberapa jawatankuasa yang mengawasi urusan spesifik yang tertentu. Mengenai Kami Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information •Jawatankuasa Lembaga Kredit dan Pelaburan Board Credit & Investment Committee •Jawatankuasa Lembaga Audit Board Audit Committee •Jawatankuasa Ganjaran Remuneration Committee •Jawatankuasa Lembaga Teknologi Maklumat Board Information Technology Committee • Jawatankuasa Pengurusan Management Committee •Jawatankuasa Pengurusan Kredit Management Credit Committee •Jawatankuasa Pengurusan Audit Management Audit Committee •Jawatankuasa Aset dan Liabiliti Asset and Liability Committee •Jawatankuasa Pengurusan Teknologi Maklumat Management Information Technology Committee •Jawatankuasa Pengurusan Risiko Management Risk Committee AGROBANK 01 About Us •Jawatankuasa Lembaga Pengurusan Risiko Board Risk Management Committee Struktur tadbir urus korporat Agrobank diterajui oleh Lembaga Pengarah yang bertanggungjawab atas penyeliaan dan pemantauan strategi keseluruhan selain strategi risiko. Seperti ditunjukkan dalam rajah, Lembaga Pengarah menjalankan tugasnya dengan sokongan Jawatankuasa Kredit dan Pelaburan, Jawatankuasa Lembaga Pengurusan Risiko, Jawatankuasa Lembaga Audit, Jawatankuasa Lembaga Teknologi Maklumat, Jawatankuasa Ganjaran dan Jawatankuasa Pencalonan. Objektif jawatankuasa-jawatankuasa ini adalah untuk meningkatkan kecekapan dan keberkesanan Lembaga Pengarah supaya mereka dapat memanfaatkan masa sebaik mungkin untuk mengukuhkan peranan setiap pengarah dalam menguruskan konflik kepentingan, memastikan pelaksanaan dasar dan amalan secara mantap dan berhemat serta memaksimumkan nilai bagi pemegang saham dan seterusnya memelihara kepentingan pihak berkepentingan. Fungsi utama Lembaga Pengarah dan setiap Jawatankuasa Lembaga Pengarah digariskan pada halaman berikutnya. •Jawatankuasa Pencalonan Nomination Committee •Jawatankuasa Pengurusan Risiko Operasi Operational Risk Management Committee •Jawatankuasa Pendedahan Maklumat Whistleblower Committee •Jawatankuasa Pengurusan Pemerolehan Management Procurement Committee •Jawatankuasa Bahagian Pemerolehan Division Procurement Committee •Jawatankuasa Pelaksanaan Projek SBP SBP Project Implementation Committee Agrobank’s corporate governance model is articulated through a robust internal rules and procedures that regulate the way Agrobank operates as an organisation and the way its professionals behave. The governance model describes the delegation of responsibilities within Agrobank, with role descriptions designed to create strong and efficient processes. In accordance with the model, the Board also operates through a number of committees covering certain specific matters. Agrobank’s governance structure is headed by the Board, which has the overall responsibility for guiding and monitoring the overall strategy as well as the risk strategy. As illustrated in the diagram, the Board is supported in carrying out its duties by the Board Credit and Investment Committee, Board Risk Management Committee, Board Audit Committee, Board Information Technology Committee, Remuneration Committee and Nomination Committee. The objectives of these committees are to increase the efficiency and effectiveness of the Board and also to allow the Board to make better use of their limited time and reinforce the role of independent directors in managing conflicts of interest, to ensure sound and prudent policies and practices are being implemented and also to ensure the maximisation of shareholders’ values and subsequently safeguarding the stakeholders’ interest. The key functions of the Board and each of the Board Committees are deliberated in the subsequent paragraphs.
  116. Rangka kerja tadbir urus menggariskan dengan jelas , peranan dan tanggungjawab antara Lembaga Pengarah dan Eksekutif Pengurusan bagi memupuk persekitaran yang telus, diyakini dan saling mempercayai untuk memudahkan Lembaga Pengarah menyampaikan kritikan yang membina sambil memberi panduan kepada pihak Pengurusan. Eksekutif Pengurusan Kanan merangkumi Presiden/Ketua Pegawai Eksekutif, Ketua Pegawai Kewangan, Ketua Pegawai Risiko, Ketua Pegawai Pematuhan, Ketua Pegawai Strategi, Ketua Pegawai Kredit, Ketua Pegawai Sumber Manusia, Ketua Pegawai Operasi, Ketua Pegawai Perniagaan dan Ketua Audit Dalaman. Eksekutif Pengurusan Kanan bertanggungjawab untuk menentukan hala tuju strategik bagi Agrobank dan juga memastikan pelaksanaan arahan serta keputusan oleh Lembaga Pengarah. Presiden/Ketua Pegawai Eksekutif dan Ahli Eksekutif Pengurusan Kanan mempunyai mandat bertulis yang menggariskan peranan, tanggungjawab dan keupayaan yang diperlukan bagi jawatan mereka. The governance framework provides a clear demarcation of roles and responsibilities between the Board and the Management Executive that fosters an environment of transparency, confidence and mutual trust in which the Board is able to constructively challenge and provide guidance to the Management. The Senior Management Executive comprised the President/Chief Executive Officer, the Chief Finance Officer, the Chief Risk Officer, the Chief Compliance Officer, the Chief Strategy Officer, the Chief Credit Officer, the Chief Human Resource Officer, the Chief Operations Officer, the Chief Business Officer and also the Chief Internal Auditor. The Senior Management Executive members are accountable in developing the strategic direction of Agrobank and also responsible in ensuring that the Board’s decisions and directions are implemented and responded to. The President/ Chief Executive Officer and the Senior Management Executive members have a written mandate which outlined their roles, responsibilities and the required capabilities of their positions. Skop dan kecanggihan rangka kerja tadbir urus korporat adalah berpadanan dengan sifat, saiz serta kerumitan Agrobank. Lembaga Pengarah turut menyedari bahawa Agrobank beroperasi dalam persekitaran global yang semakin maju dan ditemani pelbagai jangkaan, pengawalseliaan yang sentiasa berubah serta tumpuan yang kian meningkat terhadap penglibatan dan kebertanggungjawaban pihak berkepentingan. Dengan itu, Agrobank sentiasa berusaha untuk membangunkan dan memperbaiki rangka kerja tadbir urus korporatnya agar seiring dengan perubahan dalam perniagaan Agrobank, amalan terbaik dan faktor luaran yang lain. The scope and sophistication of the corporate governance framework is proportionate to Agrobank’s nature, size and complexity. The Board also recognises that Agrobank is operating in an evolving global environment of diverse expectations, constant regulatory change, and increasing focus on stakeholder engagement and accountability. Towards this end, Agrobank continually seeks to develop and improve its corporate governance framework in light of changes in Agrobank’s businesses, best practices and the external environment. Komposisi dan Keseimbangan dalam Lembaga Pengarah Agrobank refreshed the composition of the Board with the appointment of two new Directors and the resignation of one Director. The year under review also saw the new appointment of the President/Chief Executive Officer. Komposisi Lembaga Pengarah Agrobank dapat dimantapkan dengan pelantikan dua Pengarah baharu susulan peletakan jawatan seorang Pengarah. Tahun 2018 turut menyaksikan pelantikan Presiden/Ketua Pegawai Eksekutif yang baharu. Pengarah Bukan Eksekutif mengimbangkan Lembaga Pengarah dengan mengurangkan percanggahan kepentingan antara proses pembuatan dasar dan pengurusan seharian bagi Agrobank; manakala Pengarah Bebas pula memastikan semakan dan imbangan supaya Agrobank dapat beroperasi secara terjamin dan mantap, selain membawa masuk perspektif baharu untuk mempertingkatkan keberkesanan Lembaga Pengarah. 
 Komposisi Lembaga Pengarah menepati keperluan BNM yang mempunyai sekurang-kurangnya tujuh orang ahli Lembaga Pengarah yang mana majoritinya terdiri daripada pengarah bebas dan sekurang-kurangnya tiga pengarah yang wajib berpengalaman dalam bidang yang merangkumi pelbagai kepakaran perbankan/perakaunan. Sehubungan itu, seluruh Lembaga Pengarah merangkumi kecekapan teras dalam bidang kewangan, perakaunan, perundangan, pengurusan perniagaan, teknologi maklumat, pengurusan pelaburan dan pertanian di samping pengetahuan dalam pasaran dan sektor sasaran Bank. Di bawah Prinsip 2, Garis Panduan Tadbir Urus Korporat BNM bagi IKP, komposisi Lembaga Pengarah yang sedia ada mampu menyediakan hala tuju dan panduan yang berkesan bagi pihak pengurusan. Board Composition and Balance The Non-Executive Directors provide a balance to the Board, mitigating any possible conflict of interest between the policymaking process and the day-to-day management of Agrobank; while the Independent Directors provide the necessary checks and balances to ensure Agrobank operates in a safe and sound manner and bring in new perspective to further elevate the effectiveness of the Board. The Board’s composition meets BNM’s requirement of which a minimum of seven Board members of whom a majority should be independent directors and at least three directors must have banking/accounting experience. Accordingly, the Board as a whole comprises a mix of core competencies in finance, accounting, legal, business management, information technology, investment management and agriculture as well as knowledge of bank’s target markets and sectors. The Board’s current composition is effective in providing direction and guidance to the Management as stipulated under Principle 2 of BNM’s Guidelines on Corporate Governance for DFIs. LAPORAN TAHUNAN 2018 ANNUAL REPORT 107
  117. PENYATA TADBIR URUS KORPORAT STATEMENT ON CORPORATE GOVERNANCE Peranan dan Tanggungjawab Lembaga Pengarah Roles and Responsibilities of the Board Lembaga Pengarah bertanggungjawab untuk mengawal selia strategi perniagaan dan kedudukan kewangan , keputusan penting berkenaan kakitangan, penyusunan dalaman dan struktur tadbir urus serta pengurusan risiko dan tanggungjawab pematuhan bagi Agrobank. Berikutan perubahan status Agrobank kepada institusi perbankan Islam sepenuhnya pada Julai 2015, tanggungjawab Lembaga Pengarah telah diluaskan bagi merangkumi keseluruhan rangka kerja tadbir urus Syariah dan pematuhan Syariah oleh Agrobank. The Board has the ultimate responsibility to oversee Agrobank’s business strategies and financial soundness, key personnel decisions, internal organisation and governance structure, as well as risk management and compliance obligations. With the conversion into an Islamic bank in July 2015, the Board has played greater role in being ultimately accountable and responsible for the overall Shariah governance framework and Shariah compliance of Agrobank. Peranan dan tanggungjawab Lembaga Pengarah merangkumi perkara berikut: •Menyelia hal-ehwal Agrobank dengan cekap bagi memastikan kemantapan pengurusan Agrobank dalam melindungi kepentingan pendeposit dan pihak berkepentingan. •Menyelia perkembangan dan meluluskan objektif perniagaan Agrobank serta strategi jangka pendek dan jangka panjangnya, di samping memastikan keberkesanan pelaksanaan strategi. 
 108 AGROBANK •Memastikan keberkesanan pelaksanaan rangka kerja tadbir urus Agrobank dan kebolehgunaannya untuk menangani perubahan dinamik dalam persekitaran dan kawal selia kewangan yang boleh menjejaskan strategi perniagaan dan operasi Agrobank dengan ketara. •Menetapkan kesanggupan menanggung risiko bagi Agrobank, berdasarkan saranan pihak Pengurusan Kanan dan Ketua Pegawai Risiko, yang dibuat berdasarkan keadaan kewangan dan kawal selia yang kompetitif di samping kekukuhan kewangan, pendedahan kepada risiko dan keupayaan Agrobank untuk menguruskan risiko dengan berkesan. •Memastikan Agrobank ditadbir berpandukan dasar yang kukuh, terutamanya berkaitan pengurusan berhemat dalam menilaikan kecukupan modal, perancangan modal dan kecairan, mematuhi dasar dan tanggungjawab, serta sistem kawalan dalaman. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Peranan Pengerusi dan Presiden/Ketua Pegawai Eksekutif di Agrobank dipisahkan dengan Pembahagian tanggungjawab yang jelas untuk memastikan keseimbangan kuasa dan autoriti. Pengerusi berperanan sebagai pemimpin kepada Lembaga Pengarah, dan bertanggungjawab atas keberkesanan fungsi keseluruhannya termasuk mengekalkan hubungan saling mempercayai dengan ahli Lembaga Pengarah. Pengerusi memastikan keputusan Lembaga Pengarah dibuat berdasarkan maklumat yang kukuh, dan dicapai secara sepakat, atau mencerminkan kehendak majoriti. Perbincangan yang kritis digalakkan untuk memastikan pandangan yang berbeza boleh disuarakan dan dibincangkan dengan bebas dalam proses membuat keputusan. Pengerusi bekerja rapat dengan semua Pengarah untuk memastikan aktiviti perniagaan di bawah pimpinan pihak Pengurusan Kanan adalah sejajar dengan objektif dan aspirasi Agrobank. Sehubungan itu, Pengerusi turut memberikan sokongan dan nasihat yang sesuai kepada Presiden/ Ketua Pegawai Eksekutif. The roles and responsibilities of the Board include the following: •Effectively supervise Agrobank’s affairs to ensure sound management of the bank in order to protect depositors and stakeholders’ interest. •Oversee the development of and approve Agrobank’s business objectives and its short-term and long-term strategies as well as ensuring effective implementation of the strategies. •Ensure effective implementation of Agrobank’s governance framework and its applicability taking into consideration the dynamic changes in the financial landscape and regulations that may have material impact on Agrobank’s business strategies and operations. •Establish, upon recommendation by Senior Management and the Chief Risk Officer, Agrobank’s risk appetite, taking into account the competitive financial and regulatory landscape as well as financial soundness, risk exposure and ability to manage risk effectively. •Ensure Agrobank is governed by solid policies particularly pertaining to the prudent management encompassing capital adequacy assessment process, capital and liquidity plans, compliance policies and obligations, and internal control system. The roles of the Chairman and President/Chief Executive Officer of Agrobank are separated with a clear division of responsibilities to ensure balance of power and authority. The Chairman provides leadership to the Board and is responsible for its effective overall functioning, including maintaining a relationship of trust with Board members. The Chairman ensures that Board’s decisions are reached by consensus, or reflected by the will of the majority, based on sound information. He encourages critical discussions and ensures that dissenting views can be freely expressed and discussed within the decision-making process. Working with all the Directors, the Chairman ensures that the business activities driven by the Senior Management are aligned with Agrobank’s objectives and aspirations. In this regard, the Chairman provides the President/Chief Executive Officer with necessary support and advice as appropriate.
  118. Peranan utama Presiden /Ketua Pegawai Eksekutif adalah memastikan keberkesanan dalam pengurusan hal-ehwal perniagaan seharian di Agrobank. Ini merangkumi penetapan hala tuju strategik bagi Agrobank, memastikan strategi, pelan perniagaan dan dasar korporat dilaksanakan dengan berkesan dan memastikan keputusan dan arahan Lembaga Pengarah dipatuhi. Presiden/Ketua Pegawai Eksekutif bertanggungjawab untuk menyampaikan visi, falsafah pengurusan dan strategi perniagaan kepada kakitangan sambil memastikan Lembaga Pengarah dimaklumkan sepenuhnya tentang semua aspek penting operasi. Presiden/Ketua Pegawai Operasi juga perlu menunjukkan tatalaku dan ketelusan tertinggi dalam menguruskan kewangan Agrobank dengan memastikan semua aktiviti dijalankan secara beretika dan mematuhi undang-undang dan peraturan yang berkenaan. Presiden/Ketua Pegawai Eksekutif memastikan kesinambungan perniagaan dengan membentuk pelan penggantian yang mantap bagi jawatan-jawatan penting di Agrobank. The key role of the President/Chief Executive Officer is to ensure the day-to-day business affairs of Agrobank are effectively managed. This includes developing the strategic direction of Agrobank, ensuring that the strategies, business plans and corporate policies are effectively implemented, and that decisions and directions by the Board are responded to. The President/Chief Executive Officer also provides strong leadership in communicating the vision, management philosophy and business strategies to the employees while keeping the Board fully informed of all important aspects of operations. The President/Chief Executive Officer is also expected to demonstrate the highest level of integrity and transparency in the financial management of Agrobank, ensuring all business activities are carried out in an ethical manner and in full compliance with the relevant laws and regulations. In ensuring business continuity, the President/Chief Executive Officer is also responsible for developing sound succession planning for critical positions in Agrobank. Kepelbagaian dalam Lembaga Pengarah Perbezaan jantina, umur, budaya dan pendidikan serta latar belakang profesional di Agrobank memberi impak yang positif kepada Lembaga Pengarah dengan membawa perspektif yang berlainan kepada Lembaga Pengarah. Sehubungan itu, Lembaga Pengarah komited untuk memastikan kepelbagaian dalam komposisinya seperti yang digambarkan menerusi pelbagai kemahiran dan pengetahuan ahli-ahlinya. Jawatankuasa Pencalonan bertanggungjawab untuk memastikan ahli-ahli Lembaga Pengarah memiliki gabungan kemahiran dan pengalaman yang diperlukan oleh Lembaga Pengarah. Jawatankuasa Pencalonan menetapkan keperluan minimum bagi kemahiran dan kecekapan teras pengarah. Gabungan kemahiran, pengalaman dan kecekapan teras yang diperlukan dalam Lembaga Pengarah turut disemak setiap tahun untuk memastikan kriteria ‘Layak dan Sesuai’ dipenuhi oleh setiap pengarah. Board Diversity Agrobank believes that diversity in terms of gender, age, cultural and educational as well as professional background would have a positive impact on the Board’s deliberations, bringing varying perspectives to the table. The Board is, therefore, committed to ensure diversity in its composition, as reflected by the wide ranging skills and knowledge represented by its members. It is the responsibility of the Nomination Committee to ensure the Board members bring the required mix of skills and experience to the Board. The Nomination Committee establishes the minimum requirements on the skills set and core competencies of a director and undertakes an annual review of the required mix of skills, experience and core competencies within the Board as well as to ascertain the ‘Fit and Proper’ criteria of each directors. Supply of Information Penyediaan Maklumat Pihak Pengurusan dan Setiausaha Syarikat bertanggungjawab untuk memastikan Lembaga Pengarah sentiasa memiliki maklumat yang lengkap, tepat dan mencukupi, dalam bentuk dan kualiti yang sesuai, supaya Lembaga Pengarah dapat menjalankan tugasnya dengan berkesan. Akses kepada maklumat yang diterima tepat pada waktunyaadalah penting untuk memastikan perbincangan yang bernas, pertimbangan yang termaklum, dan pembuatan keputusan yang berkesan. Pihak Pengurusan perlu menyediakan para pengarah dengan pek mesyuarat yang mengandungi semua maklumat penting dan relevan dengan mesyuarat, sekurang-kurangnya lima hari sebelum setiap Mesyuarat Lembaga Pengarah. Maklumat tambahan lain yang mungkin memberi kesan ketara kepada Agrobank, sama ada secara langsung ataupun tidak, akan diberikan tepat pada masanya apabila diperlukan atau diminta oleh Lembaga Pengarah. Semua isu, perbincangan, pertimbangan, keputusan dan kesimpulan termasuk perbezaan pandangan yang timbul berserta tindakan jelas yang perlu diambil oleh pihak yang bertanggungjawab, akan dicatatkan semasa mesyuarat Lembaga Pengarah. The Management and Company Secretary are responsible for ensuring the Board is continuously presented with a complete, accurate and adequate time bound information in a form and of quality appropriate to enable the Board to discharge its duties effectively. Access to timely information is important to ensure robust discussion, informed deliberation and effective decision making. The Management provides Board members a meeting pack containing all pertinent and relevant information pertaining to the agenda of meetings at least five days prior to every Board Meeting. Other additional information that may have material impact on Agrobank, either directly or indirectly is provided in a timely manner as and when necessary or when requested by the Board. All arising issues, discussions, deliberations, decisions and conclusions including dissenting views made at Board meetings with clear actions to be taken by responsible parties are recorded in the meetings. LAPORAN TAHUNAN 2018 ANNUAL REPORT 109
  119. PENYATA TADBIR URUS KORPORAT STATEMENT ON CORPORATE GOVERNANCE Setiap pengarah diberikan akses penuh kepada semua maklumat dan rekod Agrobank , serta khidmat nasihat Setiausaha Syarikat yang turut bertindak sebagai setiausaha bagi Jawatankuasa Lembaga Pengarah, dan bertanggungjawab untuk memastikan prosedur mesyuarat Lembaga Pengarah diikuti, dan semua peraturan yang relevan dipatuhi. Untuk melaksanakan tugas mereka, dan jika diperlukan, ahli Lembaga Pengarah boleh mendapatkan khidmat nasihat profesional yang berasingan, secara individu mahupun secara berkumpulan. Each director has unrestricted access to all information and records of Agrobank as well as the advice and services of the Company Secretary, who also serves as secretary to the Board Committees and is responsible for ensuring that the procedures for Board meetings are followed and that all applicable rules and regulations are complied with. In addition, the Directors, collectively or individually may seek independent professional advice in furtherance of their duties in the event such services are required. Jawatankuasa Lembaga Pengarah Board Committees Lembaga Pengarah dibantu oleh enam Jawatankuasa Lembaga Pengarah untuk memastikan keteguhan fungsi pengawasan dan penelitian menyeluruh fungsi-fungsi penting dalam kawalan dalaman, pengurusan risiko, prestasi, dan pencalonan jawatan penting. Lembaga Pengarah memegang tanggungjawab muktamad bagi keputusan yang dibuat oleh semua Jawatankuasa ini. In ensuring strong oversight function and in-depth deliberation of critical functions of internal controls, risk management, performance and nomination of key positions; the Board is assisted by six Board Committees. Despite delegating its functions to these Committees, the Board remains ultimately responsible for the decisions of the Committees. Enam Jawatankuasa Lembaga Pengarah tersebut adalah: 110 AGROBANK • Jawatankuasa Lembaga Kredit dan Pelaburan • Jawatankuasa Lembaga Pengurusan Risiko • Jawatankuasa Lembaga Audit • Jawatankuasa Pencalonan • Jawatankuasa Ganjaran • Jawatankuasa Lembaga Teknologi Maklumat Setiap jawatankuasa beroperasi menurut Terma Rujukan Tugas (ToR) yang ditakrifkan dengan jelas, dan membantu Lembaga Pengarah menyempurnakan tugas dan tanggungjawabnya. Selepas setiap mesyuarat, Pengerusi setiap jawatankuasa akan melaporkan kepada Lembaga Pengarah tentang aktiviti jawatankuasa masing-masing, dan memberi saranan yang sesuai mengikut keadaan. Pengerusi setiap jawatankuasa akan membincangkan keputusan penting yang dibuat oleh jawatankuasa masing-masing, dalam mesyuarat bulanan Lembaga Pengarah. Minit mesyuarat Jawatankuasa Lembaga Pengarah turut dibentangkan kepada Lembaga Pengarah sebagai makluman. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Mesyuarat Lembaga Pengarah Lembaga Pengarah bermesyuarat setiap bulan dan membincangkan urusan kewangan, strategi dan dasarselain memantau prestasi Agrobank secara keseluruhan. Mesyuarat tambahan diadakan jika terdapat isu penting dan/atau keputusan yang perlu dipertimbangkan sebelum mesyuarat yang berikutnya. Pada tahun kewangan berakhir 31 Disember 2018, Lembaga Pengarah telah mengadakan 14 mesyuarat termasuk dua mesyuarat khas. The six Board Committees are: • Board Credit and Investment Committee • Board Risk Management Committee • Board Audit Committee • Nomination Committee • Remuneration Committee • Board Information Technology Committee Each committee operates within a clearly defined Terms of Reference (ToR) to assist the Board in carrying out its duties and responsibilities. Following each meeting, the Chairman of the committees reports to the Board on the committees’ activities, and makes such recommendations that are deemed appropriate in the circumstances. The Chairman of the committees will escalate pertinent discussions and decisions of the committee during the monthly Board meetings. The Minutes of Board Committees meeting are also be tabled to the Board for notation. Board Meetings The Board meets on a monthly basis, to consider financial matters, strategy and policies as well as to monitor the overall performance of Agrobank. Additional meetings are also convened as and when there are imminent issues and/or decisions to be deliberated in between the monthly meetings. During the financial year ended 31 December 2018, 14 meetings including two Special Board meetings were held.
  120. Lembaga Pengarah perlu bersedia menjalankan tugas dengan mengambil bahagian secara proaktif dalam mesyuarat Lembaga Pengarah . Profil ringkas setiap pengarah disertakan dalam Laporan Tahunan ini. Maklumat kehadiran ahli Lembaga Pengarah adalah seperti berikut: The directors are expected to discharge their duties by participating actively in the Board meetings. The profile of each of the directors is briefly described in this Annual report. The attendances of Board members are as follows: Ahli Lembaga Pengarah Board Members Jawatan Designation Kehadiran* Attendance* % % Pengerusi/ Chairman 14/14 100 Datuk Seri Dr. Ismail Hj. Bakar (Peletakan jawatan berkuat kuasa 31 Julai 2018/Resigned w.e.f. 31 July 2018) Ahli/Member 2/9 22 Dato’ Dr. Yusof Ismail Ahli/Member 14/14 100 Dato’ Dr. Mohamad Hashim Ahmad Tajudin Ahli/Member 14/14 100 Datin Setia Shahariah Hashim Ahli/Member 14/14 100 Ibrahim Hassan Ahli/Member 14/14 100 Azizah Abdul Rahman Ahli/Member 14/14 100 Faizah Abdullah Ahli/Member 14/14 100 Abdul Rahim Abd Hadi (Pelantikan berkuat kuasa 9 Januari 2018/Appointed w.e.f. 9 January 2018) Ahli/Member 12/13 92 Jit Singh A/L Santok Singh (Pelantikan berkuat kuasa 12 Oktober 2018/Appointed w.e.f. 12 October 2018) Ahli/Member 3/3 100 Tan Sri Mohamad Zabidi Zainal * * Menunjukkan bilangan mesyuarat yang diadakan semasa Pengarah memegang jawatan Reflects the number of meetings held during the period when the Directors held office Jawatankuasa Lembaga Kredit dan Pelaburan Board Credit and Investment Committee Jawatankuasa Lembaga Kredit dan Pelaburan (BCIVC) membuat keputusan bagi pihak Lembaga Pengarah dalam isu berkaitan urus niaga yang melangkaui kuasa melulus yang diberikan kepada Jawatankuasa Pengurusan Kredit (MCC). Jawatankuasa ini juga bertanggungjawab untuk memastikan kawalan kualiti dalam laporan kewangan dan proses pematuhan Agrobank. Peranan dan tanggungjawab jawatankuasa ini merangkumi: The Board Credit and Investment Committee (BCIVC) take decisions on behalf of the Board on issues pertaining to transactions that exceeds the delegated authority given to the Management Credit Committee (MCC). The Committee is also responsible for ensuring quality control in Agrobank’s financial reporting and compliance process. Other roles and responsibilities of the Committee include: •Mengkaji semula cadangan pembiayaan yang melebihi kuasa kelulusan MCC dan mengemukakan cadangan kepada Lembaga Pengarah. 
 •Membincangkan hal yang melibatkan pembiayaan dan pelaburan, termasuk tetapi tidak terhad kepada pemantauan dan isu lain berkaitan kredit yang akan dilaksanakan oleh Agrobank, yang mana perlu disahkan oleh Lembaga Pengarah. 
 •Mengkaji dan menyemak semula cadangan pembiayaan strategik dan langkah kemampanan keuntungan untuk disahkan oleh Lembaga Pengarah. 
 •Menilaikan pelaburan dalam ekuiti yang memerlukan kelulusan Lembaga Pengarah dan mengemukakan cadangan kepada Lembaga Pengarah. 
 •Mengenal pasti, menilai, memantau dan mengkaji semula prestasi portfolio pelaburan Agrobank secara berkala, dan mencadangkan tindakan yang perlu diambil oleh Agrobank. 
 •Menilaikan prestasi pengurus dana Agrobank, di samping melantik dan menamatkan perkhidmatan pengurus dana, broker dan lain-lain wakil. 
 •Review all financing proposals that exceed the MCC’s approving authority and make recommendations to the Board. •Deliberate matters concerning financing and investment, including but not restricted to monitoring and other credit related issues to be implemented by Agrobank, which may require endorsement by the Board. •Review and revise strategic financing proposals and measures for sustained profitability for endorsement by the Board. •Evaluate investments in equity that require the Board’s approval and make recommendations to the Board. •Identify, evaluate, monitor and review the performance of Agrobank’s investment portfolio on a periodic basis and propose necessary actions to be taken by Agrobank. •Assess the performance of Agrobank’s fund managers, as well as appoint and terminate fund managers, brokers and other representatives. LAPORAN TAHUNAN 2018 ANNUAL REPORT 111
  121. PENYATA TADBIR URUS KORPORAT STATEMENT ON CORPORATE GOVERNANCE BCIVC terdiri daripada empat Pengarah Bukan Eksekutif dan dipengerusikan oleh seorang Pengarah Bebas yang dilantik oleh Lembaga Pengarah . Jawatankuasa ini bermesyuarat sekurangkurangnya sebulan sekali, atau pada bila-bila masa difikirkan perlu oleh Pengerusi. Mesyuarat dihadiri oleh ahli Jawatankuasa, Presiden/Ketua Pegawai Eksekutif dan ahli Pengurusan Kanan yang berkaitan. Jawatankuasa boleh mendapatkan nasihat profesional bebas mengenai perkara teknikal, daripada pakar yang memiliki pengalaman dan kepakaran yang relevan, serta memastikan kehadiran mereka, jika perlu. Pada tahun 2018, BCVIC telah mengadakan sebanyak 12 mesyuarat. Ahli-ahli BCIVC dan rekod kehadiran masing-masing bagi tahun 2018 adalah seperti berikut: The BCIVC comprised five Non-Executive Directors and is chaired by an Independent Director appointed by the Board. The Committee meets at least once a month or whenever the Chairman deems it is necessary to do so. The meetings are attended by the Committee members as well as the President/ Chief Executive Officer and other relevant Senior Management. The Committee may obtain independent professional advice on technical matters from experts with relevant experience and expertise and secure their attendance as and when required. The BCIVC had held 12 meetings during the year in review. The members of the BCIVC and their respective attendance record for the year in review are as follows: Ahli Members Kehadiran* Attendance* % % Faizah Abdullah (Pengerusi/Chairman) 12/12 100 Dato’ Dr. Mohamad Hashim Ahmad Tajudin 12/12 100 Datin Setia Shahariah Hashim 12/12 100 2/2 100 Ibrahim Hassan 12/12 100 Abdul Rahim Abd Hadi (Pelantikan berkuat kuasa 1 Mac 2018/Appointed w.e.f. 1 March 2018) 10/10 100 Azizah Abdul Rahman (Penamatan keahlian berkuat kuasa 28 Februari 2018/Ceased as a member w.e.f. 28 February 2018) 112 AGROBANK Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information * * Menunjukkan bilangan mesyuarat yang diadakan semasa Pengarah memegang jawatan Reflects the number of meetings held during the period when the Directors held office Jawatankuasa Lembaga Pengurusan Risiko Board Risk Management Committee Jawatankuasa Lembaga Pengurusan Risiko (BRMC) bertanggungjawab untuk meluluskan strategi risiko keseluruhan bagi Agrobank, termasuk kesanggupan menanggung risiko dan mengawal selia pelaksanaannya. Di bawah kuasa Lembaga Pengarah, jawatankuasa BRMC bertanggungjawab untuk mewujudkan rangka kerja pengurusan risiko yang mantap dan menyeluruh, di samping mengawasi aktiviti pengambilan risiko dalam Agrobank. Dari semasa ke semasa, BRMC mengkaji semula dan memantau pematuhan kesanggupan menanggung risiko bagi Agrobank, dan membuat saranan mengenainya, kepada Lembaga Pengarah. The Board Risk Management Committee (BRMC) is responsible to approve Agrobank’s overall risk strategy, including the risk appetite and oversee its implementation. Acting within an authority delegated by the Board, the BRMC has the overall responsibility for establishing a robust enterprise-wide risk management framework as well as guiding the risk-taking activities within Agrobank. The BRMC periodically reviews and monitors compliance with Agrobank’s overall risk appetite and makes recommendations thereon to the Board. Jawatankuasa ini turut bertanggungjawab untuk menyemak kesesuaian dan keberkesanan semua aspek pengurusan risiko, termasuk tetapi tidak terbatas kepada risiko strategik, risiko kredit, risiko pasaran, risiko pematuhan dan risiko operasi. BRMC juga mengawasi dan mengkaji semula dasar berkaitan semua isu risiko. Sehubungan dengan ini, skop tanggungjawab BRMC meliputi: •Menyarankan visi dan objektif pengurusan risiko, strategi dan toleransi risiko untuk kelulusan Lembaga Pengarah; dan mengkaji semula rangka kerja risiko, dasar, prosedur dan proses pengurusan risiko Agrobank. 
 •Meluluskan strategi pengurusan risiko yang dicadangkan oleh Jawatankuasa Pengurusan Risiko (MRC), termasuk toleransi risiko dan had kesanggupan menanggung risiko dan dasar yang berkaitan dengan autoriti serta tanggungjawab atas pengurusan risiko. Its responsibilities also include reviewing the appropriateness and effectiveness of all aspects of enterprise risk management including, but not restricted to strategic risk, credit risk, market risk, compliance risk and operational risk. The BRMC also reviews the policy on all risk issues and maintains oversight of all risks. In this regard, the BRMC’s scope of responsibilities includes: •Recommend risk management vision and objectives, strategies and risk tolerance for the Board’s approval; and review Agrobank’s risk frameworks, risk management policies, procedures and processes. •Approve risk management strategies recommended by the Management Risk Committee (MRC), including risk tolerance and risk appetite limits as well as policies pertaining to authority and responsibility for the management of risks.
  122. •Mengkaji semula dan membincangkan laporan risiko berkala oleh pihak Pengurusan berkaitan dengan kedudukan risiko dan portfolio, aktiviti pengurusan risiko dan tindakan yang diambil oleh pihak Pengurusan bagi mengenal pasti, mengukur, memantau dan mengawal risiko tersebut. •Review and deliberate on periodic risk reports escalated by the Management pertaining to risk and portfolio positions, risk management activities and actions undertaken by the Management to identify, measure, monitor and control the risks. •Mengkaji semula kecukupan tahap modal dan kawal selia Agrobank, serta faktor risiko utama yang boleh menjejaskan kecukupan modal. •Review the adequacy of Agrobank’s internal and regulatory capital level as well as key risk factors that may impact its capital adequacy. •Meluluskan pelantikan perunding dan penasihat luar bagi memberi nasihat mengenai infrastruktur sistem pengurusan risiko dan perkara teknikal, jika perlu. •Approve the appointment of external consultants and advisors to advice on risk management system infrastructure and technical matter as and when required. •Mengkaji semula dan menyarankan tindakan strategik dalam mematuhi keperluan yang ditetapkan oleh BNM dan badan kawal selia yang lain. •Reviewing and recommending strategic actions in order to comply with the requirements set by BNM and other regulatory bodies. •Meluluskan semua urusan berkaitan risiko Syariah, termasuk tindakan pembetulan bagi sebarang ketidakpatuhan Syariah yang telah disahkan oleh Jawatankuasa Syariah sebelum dikemukakan kepada BNM, selain memaklumkan Lembaga Pengarah tentang pembetulan yang diluluskan. •Approving all Shariah risk-related matters, including actions to rectify any Shariah non-compliance upon confirmation by the Shariah Committee prior to submission to BNM, as well as notify the Board of the approved rectification plans. Jawatankuasa ini bermesyuarat sekurang-kurangnya sebulan sekali, dan pada bila-bila masa difikirkan perlu oleh Pengerusi. Selain mesyuarat yang dijadualkan, Pengerusi atau mana-mana ahli Jawatankuasa boleh mengadakan mesyuarat khas. Pada tahun 2018, Jawatankuasa telah mengadakan 12 mesyuarat. BRMC merangkumi sekurang-kurangnya tiga orang Pengarah Bukan Eksekutif, dan dipengerusikan oleh seorang Pengarah Bebas Bukan Eksekutif yang dilantik oleh Lembaga Pengarah. Jika Pengerusi tidak hadir, jawatankuasa akan melantik salah seorang yang hadir untuk mempengerusikan mesyuarat. 
 The Committee meets at least once a month and whenever the Chairman deems necessary. In addition to the regular meetings, the Chairman or any other Committee member may call for a special meeting. During the year under review, the Committee held 12 meetings. The BRMC comprised at least three NonExecutive Directors and is chaired by an Independent NonExecutive Director appointed by the Board. In the absence of the Chairman, the members elect the chair of the meeting among those present. Members of the BRMC and their attendance record for the year are as follows: Ahli-ahli BRMC dan rekod kehadiran masing-masing bagi tahun 2018 adalah seperti berikut: Ahli Members Kehadiran* Attendance* % % Ibrahim Hassan (Pengerusi/Chairman) (Pelantikan sebagai Pengerusi berkuat kuasa 1 Mac 2018/Appointed w.e.f. 1 March 2018) 12/12 100 Datin Setia Shahariah Hashim 12/12 100 Dato’ Dr. Mohd Hashim Ahmad Tajudin 12/12 100 Azizah Abdul Rahman 12/12 100 Faizah Abdullah 11/12 92 * * Menunjukkan bilangan mesyuarat yang diadakan semasa Pengarah memegang jawatan Reflects the number of meetings held during the period when the Directors held office LAPORAN TAHUNAN 2018 ANNUAL REPORT 113
  123. PENYATA TADBIR URUS KORPORAT STATEMENT ON CORPORATE GOVERNANCE 114 AGROBANK Jawatankuasa Lembaga Audit Board Audit Committee Jawatankuasa Lembaga Audit (BAC) membantu Lembaga Pengarah menjalankan pengawasan, terutamanya dari segi menilai kecukupan dan kecekapan dasar perakaunan, kawalan dalaman, pengurusan risiko dan laporan kewangan di Agrobank. Jawatankuasa ini bertanggungjawab untuk memastikan integriti dan ketepatan masa dalam menyediakan penyata kewangan Agrobank, termasuk laporan tahunan dan interim, siaran keputusan kewangan awal, dan sebarang siaran rasmi lain berkaitan prestasi kewangannya. Kedudukan dan prestasi kewangan Agrobank, khususnya kecukupan dalam peruntukan rosot nilai, kunci kira-kira dan keberuntungan turut dinilaikan sebelum dikemukakan kepada Lembaga Pengarah. The Board Audit Committee (BAC) assists the Board in fulfilling its oversight responsibilities, in particular with regard to the evaluation of the adequacy and efficiency of accounting policies, internal controls, risk management and financial reporting processes at Agrobank. The Committee is responsible to ensure the integrity and timeliness of the financial statements of Agrobank, including its annual and interim reports, preliminary results release and any other formal release relating to its financial performance. This is done through in-depth deliberations of Agrobank’s financial position and performance, particularly on the adequacy of impairment provisions, balance sheet and profitability prior to escalation to the Board. Jawatankuasa ini turut memastikan keberkesanan dasar dan prosedur pendedahan maklumat, yang mana semua aduan (sama ada ditandatangani atau tidak bernama) tentang kemungkinan salah laku dalam pengumpulan, pemprosesan dan pendedahan maklumat kewangan, boleh diajukan. The Committee also ensures the effectiveness of Agrobank’s whistleblowing policies and procedures on the basis of which complaints, whether signed or anonymous, may be reported about the possible misconduct in the collection, processing and disclosure of financial information. Selain itu, BAC juga mengkaji semula keberkesanan fungsi audit dalaman Agrobank dalam memastikan jaminan korporat bebas berhubung pematuhan kepada keperluan dalaman dan luaran. Ini termasuk meluluskan pelantikan dan seterusnya menilai prestasi Ketua Juruaudit Dalaman. Sehubungan itu, Jawatankuasa memastikan audit dalaman memiliki sumber yang mencukupi dan akses kepada maklumat yang sewajarnya, bagi membolehkannya menjalankan fungsinya dengan berkesan, menurut piawaian profesional yang relevan. BAC juga mengkaji semula aktiviti, penemuan dan saranan audit dalaman, di samping memastikan tindakan yang sewajarnya diambil oleh Agrobank bagi menangani penemuan dan saranan audit tersebut. In addition, the BAC reviews the effectiveness of Agrobank’s internal audit function in providing independent corporate assurance with regard to compliance with internal and external requirements. This includes approving the appointment and subsequently evaluating the performance of the Chief Internal Auditor. In this respect, the Committee ensures that the internal audit has adequate resources and appropriate access to information to enable them to perform their functions effectively and in accordance with the relevant professional standards. The BAC also reviews the internal audit activities, findings and recommendations, as well as ascertains appropriate actions are taken by Agrobank in addressing the audit findings and recommendations. Skop peranan dan tanggungjawab Jawatankuasa adalah selaras dengan perkara berikut: •Menyemak semua urus niaga pihak ketiga/pihak yang berkaitan dan memaklumkan Lembaga Pengarah tentang urus niaga tersebut. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information •Menyemak prosedur Agrobank dalam menyediakan saluran untuk kakitangan mengetengahkan kemusykilan secara sulit, tentang kemungkinan berlakunya kesalahan dalam laporan kewangan atau hal lain, di samping memastikan hal tersebut disiasat secara dan sewajarnya, diikuti pengambilan tindakan susulan yang bersesuaian. •Mengemukakan cadangan berhubung pelantikan, pelantikan semula dan penamatan perkhidmatan juruaudit luar bagi Agrobank . •Menyelia hubungan dengan juruaudit luar – meluluskan bayaran, syarat pelantikan, dan memastikan tiada pertalian (seperti kekeluargaan, pekerjaan, pelaburan, kewangan atau perniagaan) antara juruaudit tersebut dan Agrobank (selain urusan perniagaan biasa). •Meluluskan sebarang perkhidmatan bukan audit oleh juruaudit luar. •Meluluskan pelan audit tahunan, dan mengkaji penemuan juruaudit luar. The Committee’s scope of roles and responsibilities is consistent with the following: •Review all third/related party transactions and keep the Board informed of such transactions. •Review Agrobank’s procedures for employees to raise concerns, in confidence, about possible wrongdoing in financial reporting or other matters, as well as ensure proportionate and independent investigation of such matters and the appropriate follow-up actions. •Make recommendations in relation to the appointment, reappointment and removal of Agrobank’s external auditor. •Oversee the relationship with external auditors – approve their remunerations, terms of engagement, and ensure there are no relationship (such as family, employment, investment, financial or business) between the auditor and Agrobank (other than in the ordinary course of business). •Approve the provision of any non-audit service by external auditors. •Approve the annual audit plan and review the findings of external auditors.
  124. BAC merangkumi sekurang-kurangnya tiga Pengarah Bukan Eksekutif , yang mana majoritinya harus terdiri daripada Pengarah Bebas, dan dipengerusikan oleh seorang Pengarah Bebas yang dilantik oleh Lembaga Pengarah. Sekurang-kurangnya seorang ahli Jawatankuasa harus memiliki latar belakang dan pengalaman yang luas dalam bidang perakaunan. Jawatankuasa bermesyuarat sekurang-kurangnya sekali sebulan, untuk melaporkan dan membincangkan risiko perniagaan utama bagi Agrobank dan tindakan pembetulan baginya, sebelum diringkaskan, dan dibentangkan kepada Lembaga Pengarah. Mesyuarat BAC turut dihadiri oleh Presiden/Ketua Pegawai Eksekutif, Ketua Juruaudit Dalaman dan Ketua Pegawai Operasi, serta mana-mana pihak lain yang diundang oleh Pengerusi bagi mendapatkan khidmat nasihat dan input profesional mereka. Pada tahun kewangan ini, sebanyak empat belas mesyuarat, serta satu mesyuarat khas telah diadakan. Komposisi dan rekod kehadiran ahli BAC adalah seperti berikut: The BAC comprises at least three Non-Executive Directors of which the majority should be Independent Directors and is chaired by an Independent Director appointed by the Board. At least one member of the Committee possesses extensive accounting background and experience. The Committee meets at least once a month where Agrobank’s major business risks and remedial actions would be reported and deliberated, a summary of which would be escalated to the Board. The meeting of the BAC is also attended by the President/Chief Executive Officer, the Chief Internal Auditor and the Chief Operations Officer and any other party invited by the Chairman, for their professional advice and input. Fourteen meetings were held during the financial year with one special meeting. The composition and the attendance record of BAC members are listed below: Ahli Members Kehadiran* Attendance* % % Azizah Abdul Rahman (Pengerusi/Chairman) 14/14 100 Dato’ Dr. Mohamad Hashim Ahmad Tajudin 14/14 100 Datin Setia Shahariah Hashim 14/14 100 Dato’ Dr. Yusof Ismail 10/14 71 Ibrahim Hassan 14/14 100 * * Menunjukkan bilangan mesyuarat yang diadakan semasa Pengarah memegang jawatan Reflects the number of meetings held during the period when the Directors held office Jawatankuasa Pencalonan Nomination Committee Jawatankuasa Pencalonan bertanggungjawab untuk mengenal pasti calon, menilai dan mencadangkan calon kepada Lembaga Pengarah untuk dilantik sebagai ahli Lembaga Pengarah, Jawatankuasanya dan Pengurusan Eksekutif, di samping menilai keberkesanan setiap pengarah, keseluruhan Lembaga Pengarah dan prestasi Presiden/Ketua Pegawai Eksekutif serta ahli pengurusan kanan yang utama. Semasa mencadangkan pelantikan Pengarah Eksekutif atau Pengarah Bukan Eksekutif, Jawatankuasa Pencalonan berusaha untuk memastikan para Pengarah ini mampu menguruskan pelbagai fungsi perniagaan dan sokongan, dengan melantik para pengarah bebas bukan eksekutif daripada pelbagai industri, untuk melengkapkan Lembaga Pengarah dengan pandangan dan pengalaman yang berlainan. The Nomination Committee is responsible in identifying candidates, reviewing and recommending individuals to the Board for nominations as members of the Board, its Committees and Executive Management as well as assessment of the effectiveness of individual directors, the Board as a whole and the performance of the President/Chief Executive Officer and key senior management personnel. In recommending the appointment of Executive and Non-Executive Directors, the Committee seeks to ensure that these Directors represent a broad range of business and support functions where independent non-executive directors are drawn from a range of industries to facilitate a diversity of views and experience on the Board. Untuk mencapai tujuan ini, Jawatankuasa dipertanggungjawabkan dengan tugas berikut: Pencalonan •Menetapkan dan mencadangkan kepada Lembaga Pengarah, ciri-ciri kemahiran, pengalaman, kelayakan dan kecekapan teras lain yang diperlukan sebagai ahli Lembaga Pengarah dan Presiden/Ketua Pegawai Eksekutif. •Menilai dan mencadangkan kepada Lembaga Pengarah, calon-calon bagi jawatan pengarah, ahli Jawatankuasa Lembaga Pengarah, ahli Jawatankuasa Syariah dan Presiden/ Ketua Pegawai Eksekutif. •Menyelia seluruh komposisi Lembaga Pengarah dengan menjalankan semakan tahunan untuk menilaikan kesesuaian saiz dan kemahiran, serta keseimbangan antara pengarah eksekutif, pengarah bukan eksekutif dan pengarah bebas. In furtherance of this purpose, the Committee has the following roles and responsibilities: •Establish and recommend to the Board the skills set, experience, qualifications and other core competencies required for Board members and the President/Chief Executive Officer. •Assess and recommend to the Board nominees for directorship, Board Committee members, Shariah Committee members and the President/Chief Executive Officer. •Oversee the overall composition of the Board, in terms of the appropriate size and skills, and the balance between executive directors, non-executive directors and independent directors through annual reviews. LAPORAN TAHUNAN 2018 ANNUAL REPORT 115
  125. PENYATA TADBIR URUS KORPORAT STATEMENT ON CORPORATE GOVERNANCE •Mencadangkan kepada Lembaga Pengarah, penyingkiran mana-mana pengarah, Presiden/Ketua Pegawai Eksekutif, atau ahli pengurusan kanan utama sekiranya mereka didapati lemah, menyeleweng atau cuai dalam melaksanakan tanggungjawab mereka. •Menetapkan dan mencadangkan kepada Lembaga Pengarah, suatu mekanisme untuk menilaikan kriteria prestasi dalam keberkesanan seluruh Lembaga Pengarah, dan sumbangan setiap pengarah kepada keberkesanan Lembaga Pengarah, sumbangan pelbagai jawatankuasa Lembaga Pengarah, serta prestasi Presiden/Ketua Pegawai Eksekutif serta pegawai kanan utama yang lain. •Memastikan semua pengarah menjalani latihan berterusan agar mereka sentiasa maklum tentang perkembangan terkini dalam industri. 
 •Menyelia pelantikan, pengurusan, pelan penggantian dan penilaian prestasi bagi pegawai kanan utama. 
 •Memastikan pengarah dan Presiden/Ketua Pegawai Eksekutif tidak kehilangan kelayakan jawatan mereka, di bawah Seksyen 7 Akta IKP 2002, pada setiap tahun. 
 116 AGROBANK •Recommend to the Board the removal of any director, the President/Chief Executive Officer or key senior management personnel if they are found to be ineffective, errant or negligent in discharging their responsibilities. •Establish and recommend to the Board a mechanism for the formal assessment and performance criteria on the effectiveness of the Board as a whole and the contribution of each director to the effectiveness of the Board, the contribution of the Board’s various committees and the performance of the President/Chief Executive Officer and other key senior officers. •Ensure all directors receive continuous training to keep abreast with the latest development in the industry. •Oversee the appointment, management, succession planning and performance evaluation of key senior officers. •Ensure on an annual basis that the directors and President/ Chief Executive Officer are not disqualified under Section 7 of the DFIA 2002. •Oversee the Agrobank’s key human resource initiatives. •Menyelia inisiatif-inisiatif sumber manusia utama bagi Agrobank. •Engage independent experts to advise the management or committee on technical matters as and when required. •Mendapatkan khidmat pakar bebas untuk menasihati pihak pengurusan atau jawatankuasa tentang perkara teknikal, jika perlu. 
 The Nomination Committee consists of five Non-Executive Directors and is chaired by an Independent Director appointed by the Board. In the absence of the Chairman, the members elect the chair of the meeting among those present. Other than the members, meetings are also attended by Management representatives. The Chairman has the discretion to invite any relevant party as and when required. The Committee meets at least once every two months. During the year, the Committee met eleven times. Details of the members and their attendance record are as follows: Jawatankuasa Pencalonan terdiri daripada lima Pengarah Bukan Eksekutif dan dipengerusikan oleh seorang Pengarah Bebas yang dilantik oleh Lembaga Pengarah. Jika Pengerusi tidak hadir, ahli Jawatankuasa akan melantik salah seorang yang hadir untuk mempengerusikan mesyuarat. Selain ahli Jawatankuasa, mesyuarat juga dihadiri oleh wakil Pengurusan. Pengerusi boleh menggunakan budi bicaranya untuk menjemput mana-mana pihak yang relevan, jika perlu. Jawatankuasa bermesyuarat sekurang-kurangnya sekali dalam dua bulan. Pada tahun ini, Jawatankuasa telah bermesyuarat sebanyak sebelas kali. Butiran ahli dan rekod kehadiran mereka adalah seperti berikut: Ahli Members Kehadiran* Attendance* % % 11/11 100 Mengenai Kami Datin Setia Shahariah Hashim (Pengerusi/Chairman) Prestasi Strategik Kami Dato’ Dr. Mohamad Hashim Ahmad Tajudin (Penamatan keahlian berkuat kuasa 28 Februari 2018/Ceased as a member w.e.f. 28 February 2018) 3/3 100 Datuk Seri Dr. Ismail Hj. Bakar (Penamatan keahlian berkuat kuasa 28 Februari 2018/Ceased as a member w.e.f. 28 February 2018) 0/3 0 01 About Us 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Azizah Abdul Rahman 11/11 100 Penyata Kewangan 2018 05 2018 Financial Statement Faizah Abdullah 11/11 100 Maklumat Tambahan Ibrahim Hassan 11/11 100 8/8 100 06 Additional Information Abdul Rahim Abd Hadi (Pelantikan sebagai ahli berkuat kuasa 1 Mac 2018/Appointed w.e.f. 1 March 2018) * * Menunjukkan bilangan mesyuarat yang diadakan semasa Pengarah memegang jawatan Reflects the number of meetings held during the period when the Directors held office
  126. Jawatankuasa Ganjaran Remuneration Committee Peranan dan fungsi utama bagi Jawatankuasa Ganjaran adalah membantu Lembaga Pengarah membangunkan dan memastikan keadilan dan ketelusan dalam prosedur menetapkan dasar dan strategi keseluruhan sumber manusia bagi Agrobank , serta dasar ganjaran untuk ahli Lembaga Pengarah, Presiden/Ketua Pegawai Eksekutif dan pegawai pengurusan kanan yang utama. Jawatankuasa juga memastikan pakej ganjaran Agrobank ditentukan menurut merit, kelayakan dan kecekapan, dan turut mempertimbangkan keputusan operasi Agrobank, prestasi individu dan perbandingan statistik pasaran. Peranan dan tanggungjawab Jawatankuasa Ganjaran merangkumi: The main role and function of the Remuneration Committee is to assist the Board in developing and administering a fair and transparent procedure for setting policy on the overall human resources strategy of Agrobank and the remuneration policy for Directors, President/Chief Executive Officer and key senior management officers. The Committee also ensures that these remuneration packages are determined on the basis of their merit, qualifications, and competence, and having regard to the Company’s operating results, individual performance, and comparable market statistics. The roles and responsibilities of the Remuneration Committee include: •Mencadangkan kepada Lembaga Pengarah, rangka kerja ganjaran bagi para Pengarah, Presiden/Ketua Pegawai Eksekutif dan pegawai kanan utama, seperti berikut: •Recommend to the Board the remuneration framework for the Directors, President/Chief Executive Officer and key senior officers as follows: •Rangka kerja ganjaran Agrobank harus mencerminkan tahap tanggungjawab yang digalas, dan komitmen yang diperlukan dalam kepakaran, pengetahuan dan pengalaman. •Tahap ganjaran perlu diseimbangkan untuk menarik dan mengekalkan tenaga kerja yang diperlukan tanpa menjejaskan daya maju, kemampuan bayar dan reputasi IKP. •Mendapatkan khidmat pakar bebas bagi menasihati pihak pengurusan atau jawatankuasa mengenai perkara teknikal, jika perlu. Jawatankuasa Ganjaran terdiri daripada sekurang-kurangnya tiga Pengarah Bukan Eksekutif, dan dipengerusikan oleh seorang Pengarah Bebas yang dilantik oleh Lembaga Pengarah. Jika Pengerusi tidak hadir, ahli Jawatankuasa akan melantik salah seorang yang hadir untuk mempengerusikan mesyuarat. Sepanjang tahun ini, Jawatankuasa telah bermesyuarat sebanyak sembilan kali. Selain ahli yang dilantik, mesyuarat turut dihadiri oleh wakil Pengurusan dan lain-lain individu yang difikirkan perlu oleh Pengerusi. Butiran ahli Jawatankuasa Ganjaran dan rekod kehadiran mereka bagi tahun ini adalah seperti berikut: •Agrobank’s remuneration framework reflects the level of responsibility undertaken and commitment required based on expertise, knowledge and experience. •The levels of remuneration should be balanced to attract and sustain the required talent but not to compromise the viability, solvency and reputation of the DFI. •Engage independent experts to advise management or the committee on technical matters as and when required. The Remuneration Committee comprised at least three NonExecutive Directors and is chaired by an Independent Director appointed by the Board. In the absence of the Chairman, the members elect the chair of the meeting among those present. The Committee met nine times during the year. Besides the appointed members, Management representatives and other individuals are also invited to attend the meeting as and when deemed necessary by the Chairman. Details of members of the Remuneration Committee and their attendance for the year is as follows: Ahli Members Kehadiran* Attendance* % % Dato’ Dr. Mohamad Hashim Ahmad Tajudin (Pengerusi/Chairman) 9/9 100 Datin Setia Shahariah (Penamatan keahlian berkuat kuasa 28 Februari 2018/Ceased as a member w.e.f. 28 February 2018) 2/2 100 Dato’ Dr. Yusof Ismail (Penamatan keahlian berkuat kuasa 28 Februari 2018/Ceased as a member w.e.f. 28 February 2018) 2/2 100 Datuk Seri Dr. Ismail Hj. Bakar (Peletakan jawatan berkuat kuasa 31 Julai 2018/Resigned w.e.f. 31 July 2018) 0/4 0 Ibrahim Hassan 9/9 100 Azizah Abdul Rahman 9/9 100 Abdul Rahim Abd Hadi (Pelantikan berkuat kuasa 1 Mac 2018/Appointed w.e.f. 1 March 2018) 6/7 86 * * Menunjukkan bilangan mesyuarat yang diadakan semasa Pengarah memegang jawatan Reflects the number of meetings held during the period when the Directors held office LAPORAN TAHUNAN 2018 ANNUAL REPORT 117
  127. PENYATA TADBIR URUS KORPORAT STATEMENT ON CORPORATE GOVERNANCE Jawatankuasa Lembaga Teknologi Maklumat Board Information Technology Committee Jawatankuasa Lembaga Teknologi Maklumat (BITC) ditubuhkan pada Oktober 2016 dan berperanan mengawasi dan menetapkan hala tuju Agrobank berkenaan pendekatan Teknologi Maklumat (IT) secara holistik. Jawatankuasa menasihati Agrobank tentang perkara penting berkenaan IT, membuat keputusan strategik dan menggalakkan pematuhan pada tindakan yang dipersetujui. Berikut adalah peranan dan tanggungjawab utama bagi Jawatankuasa: The Board Information Technology Committee (BITC) was established in October 2016 and provides oversight and direction for Agrobank’s holistic approach to Information Technology (IT). The Committee advises Agrobank on IT priorities, makes decisions on strategic issues and drives compliance with agreed actions. The roles and principal responsibilities of the Committee are as follows: •Menetapkan hala tuju strategik berhubung Pengurusan IT dan memastikan pelan strategik IT menyokong pelan strategik perniagaan bagi Agrobank; •Provide strategic direction with regard to IT Management and ensure the IT strategic plan supports Agrobank’s strategic business plan; •Mengkaji semula dan meluluskan hala tuju serta dasar Agrobank bagi pelaburan strategik utama dalam IT demi memastikan keberkesanan sistem kawalan dalaman dan keandalan sistem pengurusan maklumat; •Review and approve Agrobank’s key IT strategic investment direction and policies to ensure the effectiveness of internal control systems and the reliability of the management information system; •Memastikan pihak Pengurusan Agrobank mengamalkan dasar dan prosedur yang berhemat serta berkesan untuk mengenal pasti, mengukur, memantau dan mengawal atau mengurangkan risiko IT; •Ensure Agrobank’s Management adopts prudent and effective policies and procedures to identify, measure, monitor and control or mitigate IT risks; •Menjalankan tugas-tugas lain di bawah arahan Lembaga Pengarah, dari semasa ke semasa; dan 118 AGROBANK •Meluluskan pelantikan perunding luar dan penasihat yang menasihati Jawatankuasa tentang infrastruktur sistem pengurusan risiko dan perkara teknikal, jika perlu. BITC merangkumi sekurang-kurangnya empat Pengarah Bukan Eksekutif, dan dipengerusikan oleh seorang Pengarah Bebas yang dilantik oleh Lembaga Pengarah. Individu yang bukan ahli Lembaga Pengarah yang turut menghadiri mesyuarat ini adalah wakil pihak pengurusan, Ketua Pegawai Operasi, Timbalan Ketua Pegawai Operasi, serta individu lain, jika diperlukan oleh Pengerusi. Jika Pengerusi tidak hadir, ahli Jawatankuasa akan melantik salah seorang yang hadir untuk mempengerusikan mesyuarat. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Jawatankuasa ini bermesyuarat sekurang-kurangnya sekali setiap suku tahun atau pada bila-bila masa yang difikirkan perlu oleh Pengerusi. Selain mesyuarat yang dijadualkan, Pengerusi atau mana-mana ahli Jawatankuasa boleh memanggil sidang mesyuarat khas, jika perlu. Sepanjang tahun kewangan ini, BITC telah mengadakan sebanyak lima mesyuarat. Butiran ahli dan rekod kehadiran mereka adalah seperti berikut: •Undertake other duties as directed by the Board of Directors from time to time; and •Approve the appointment of external consultants and advisors to advise the Committee on risk management system infrastructure and technical matters as and when required. The composition of BITC comprises of at least four Non-Executive Directors and is chaired by an Independent Director appointed by the Board. Non-board members in attendance are management representatives, the Chief Operations Officer, the Deputy Chief Operations Officer and other individuals as and when required by the Chairman. In the absence of the Chairman, the remaining members present during the meeting shall elect one of the members to act as the chair of the meeting. The Committee shall meet at least once in every quarter or at such other times as deemed necessary by the Chairman. In addition to the scheduled regular meetings, the Chairman or any of the Committee members may call for special meetings as and when required. During the financial year, five meeting were held by the BITC. Details of members and their attendance record is as follows: Ahli Members Kehadiran* Attendance* % % Abdul Rahim Abd Hadi (Pengerusi/Chairman) 5/5 100 04 How We Are Governed Dato’ Dr. Mohamad Hashim Ahmad Tajudin 5/5 100 Penyata Kewangan 2018 05 2018 Financial Statement Datin Setia Shahariah Hashim 5/5 100 Azizah Abdul Rahman 5/5 100 Faizah Abdullah 5/5 100 Bagaimana Kami Ditadbir Urus Maklumat Tambahan 06 Additional Information * * Menunjukkan bilangan mesyuarat yang diadakan semasa Pengarah memegang jawatan Reflects the number of meetings held during the period when the Directors held office
  128. Pelantikan Ahli Lembaga Pengarah Board Appointment Proses pelantikan bagi pengarah eksekutif dan bukan eksekutif ke Lembaga Pengarah Agrobank disempurnakan setelus mungkin dan sejajar dengan undang-undang serta peraturan Agrobank . Dalam hal ini, pelantikan setiap pengarah adalah tertakluk pada Memorandum Bank dan Undang-undang Tubuh Syarikat, di samping pengesahan oleh BNM dan kelulusan oleh Menteri Kewangan (MOF), seperti yang ditetapkan di bawah subseksyen 6(1) Akta IKP 2015 yang dipinda. The process for appointing executive and non-executive directors to the Board of Agrobank is transparent and in accordance with local laws and regulations governing Agrobank. Hence, the appointment of each director is subject to the Bank’s Memorandum and Articles of Association as well as verification by BNM and approval by the Minister of Finance (MOF) as prescribed under subsection 6(1) of the amended DFIA 2015. The Nomination Committee has the overall responsibility for the appointment process. As depicted in the diagram below, the appointment process includes the identification of potential candidates, including the evaluation of the candidates’ ability to discharge their duties effectively and efficiently. The screening process is in accordance with the BNM’s Guidelines and guided by the criteria outlined in Agrobank’s Policy on ‘Fit and Proper’ Criteria and Policy on the Appointment/Reappointment of Chairman, Directors and President/Chief Executive Officer. This is subsequently followed by a submission to the Nomination Committee for deliberation to be followed by the final recommendation to the Board for endorsement. The Nomination Committee also ensures candidates possess the appropriate skills, core competencies, experience, integrity and time to be able to discharge their roles as directors effectively. Jawatankuasa Pencalonan bertanggungjawab secara menyeluruh ke atas proses pelantikan. Seperti yang digambarkan dalam rajah di bawah, proses pelantikan merangkumi pengenalpastian calon yang berpotensi, termasuk penilaian keupayaan calon untuk menjalankan tugas dengan cekap dan berkesan. Proses saringan dijalankan selaras dengan Garis Panduan BNM, dan peraturan yang digariskan dalam Dasar Agrobank bagi Kriteria ‘Layak dan Sesuai’ dan Dasar Pelantikan/Pelantikan Semula Pengerusi, Pengarah dan Presiden/Ketua Pegawai Eksekutif. Ini diikuti dengan pembentangan kepada Jawatankuasa Pencalonan untuk pertimbangan, dan seterusnya saranan akhir dibuat kepada Lembaga Pengarah untuk pengesahan. Jawatankuasa Pencalonan turut memastikan calon memiliki kemahiran, kecekapan teras dan pengalaman, integriti dan masa untuk menjalankan tugas mereka sebagai pengarah dengan berkesan. Subject to the approval and endorsement of the Board, the application for the appointment or reappointment of the candidate is submitted to BNM for verification on the ‘Fit and Proper’ criteria as set out in the First Schedule of DFIA 2002. Once the verification is obtained, Agrobank submits its application for the appointment of the candidate to MOF. New appointments are generally for a two-year term, for extension of up to sixyears, based on the Nomination Committee’s recommendation and approval of MOF. Tertakluk pada kelulusan dan pengesahan Lembaga Pengarah, permohonan untuk pelantikan ataupun pelantikan semula calon akan diajukan kepada BNM untuk memastikan calon memenuhi kriteria ‘Layak dan Sesuai’, seperti yang dinyatakan dalam Jadual Pertama Akta IKP 2002. Setelah pengesahan diperolehi, Agrobank akan mengemukakan permohonan pelantikan calon kepada MOF. Pelantikan baharu umumnya merangkumi tempoh dua tahun, dengan lanjutan tempoh sehingga enam tahun, menurut saranan Jawatankuasa Pencalonan dan kelulusan oleh MOF. Proses Pelantikan Ahli Lembaga Pengarah/Board Appointment Process 1 Pengenalpastian Calon Identification of Candidate 2 3 Penilaian kriteria ‘Layak & Sesuai’ oleh Jawatankuasa Pencalonan Dicadangkan kepada Lembaga Pengarah untuk diluluskan Assessment of ‘fit & proper’ criteria by NC Recommended to the Board for approval 4 Pengesahan kriteria ‘Layak & Sesuai’ oleh Bank Negara Malaysia (BNM) Verification of ‘fit & proper’ criteria by Bank Negara Malaysia (BNM) 5 Pelantikan calon tertakluk pada kelulusan akhir oleh Menteri Kewangan (MOF) Appointment of candidate is subject to final approval from Minister of Finance (MOF) LAPORAN TAHUNAN 2018 ANNUAL REPORT 119
  129. PENYATA TADBIR URUS KORPORAT STATEMENT ON CORPORATE GOVERNANCE Kriteria ‘Layak dan Sesuai’ ‘Fit and Proper’ Criteria Kriteria ‘layak dan sesuai’ menetapkan bahawa para pengarah dan Presiden/Ketua Pegawai Eksekutif yang dilantik mestilah berkaliber tinggi kerana mereka diamanahkan oleh pemegang saham Agrobank dan pihak berkepentingan yang lain untuk menguruskan bank sebaik mungkin dan memastikan keteguhan operasinya. Standard ‘Layak dan Sesuai’ bagi Lembaga Pengarah ditetapkan selaras dengan Garis Panduan Tadbir Urus Korporat bagi IKP oleh BNM. The ‘Fit and Proper’ criteria stipulates that directors and the President/Chief Executive Officer have to be persons of high calibre as they are entrusted by Agrobank’s shareholders and other stakeholders with managing the bank and ensuring its sound operations. The Board follows the Guidelines on Corporate Governance for DFIs by BNM on its ‘Fit and Proper’ standards for Board of Directors. Bagi menentukan jika seseorang itu ‘Layak dan Sesuai’ untuk memegang jawatan pengarah atau Presiden/Ketua Pegawai Eksekutif, faktor-faktor berikut diambil kira: •Kejujuran yang tidak diragui, kecekapan, dan kebijaksanaan dalam membuat pertimbangan. 
 •Reputasi, sahsiah, integriti (termasuk integriti kewangan) dan kejujuran. 
 •Rekod kesalahan yang melibatkan penipuan, ketidakjujuran dan keganasan. 
 •Sama ada beliau pernah terlibat dalam apa-apa perniagaan yang menipu, menindas atau tidak wajar atau amalan lain yang boleh mencemarkan nama baiknya. 
 120 AGROBANK Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Probity, diligence, competence and soundness of judgement. •Reputation, character, integrity (including financial integrity) and honesty. •History of offence(s) involving fraud, dishonesty and violence. •Whether he/she has been engaged in any deceitful, oppressive or improper business or other practice, which would discredit him/her. •Whether he/she has behaved in any manner which may cast doubt on his/her competence and soundness of judgement. •Sama ada beliau pernah melanggar mana-mana peruntukan yang dibuat oleh atau di bawah mana-mana undang-undang bertulis yang bermatlamat untuk melindungi orang awam daripada kerugian kewangan disebabkan oleh ketidakjujuran, ketidakcekapan atau penyelewengan. 
 •Whether he/she has contravened any provision made by or under any written law designed to protect members of the public against financial loss due to dishonesty, incompetence or malpractice. Penilaian Lembaga Pengarah Mengenai Kami • •Sama ada beliau pernah terlibat dalam apa-apa perkara yang boleh menimbulkan keraguan terhadap kecekapan dan kebijaksanaannya dalam membuat pertimbangan. 
 •Sama ada beliau telah diisytiharkan muflis. 01 About Us In determining if an individual is ‘Fit and Proper’ to hold positions as director or President/Chief Executive Officer, the following factors are taken into considerations: Untuk memastikan struktur tadbir urus Agrobank disejajarkan dengan amalan terbaik, usaha penambahbaikan dan pembangunan yang berterusan dalam membangunkan proses dan prosedur Lembaga Pengarah serta jawatankuasanya adalah penting. Ini dicapai menerusi penilaian oleh Lembaga Pengarah yang menyediakan maklum balas yang berkesan dan berharga untuk meningkatkan keberkesanan Lembaga Pengarah, memaksimumkan kekukuhannya, dan mengenal pasti bidang yang perlu diperbaiki selanjutnya. Penilaian oleh Lembaga Pengarah ini didapati berkesan untuk membantu Lembaga Pengarah, jawatankuasanya dan para pengarah mengoptimumkan pelaksanaan tugas mereka di Agrobank. 
 Di Agrobank, Jawatankuasa Pencalonan bertanggungjawab untuk memastikan para pengarah sentiasa memenuhi kriteria ‘Layak dan Sesuai’ sepanjang tempoh pelantikan. Pada penghujung tahun, semua pengarah akan menjalani penilaian tahunan yang merangkumi soal selidik terperinci, yang memerlukan para pengarah menilai diri mereka sendiri, dan ahli-ahli yang lain. Setiausaha Syarikat akan menganalisis penilaian ini dan keputusannya akan disampaikan kepada Pengerusi, yang kemudiannya akan memaklumkan kepada setiap pengarah tentang markah peribadinya, manakala markah pengarah lain dikekalkan sulit. Setiausaha Syarikat akan menyarankan langkah untuk diambil bagi menangani sebarang kekurangan yang didapati dalam Lembaga Pengarah, untuk mengukuhkannya. •Whether he/she has been declared a bankrupt. Board Evaluation Continuous improvement and development of the Board and its Committees’ processes and procedures is the key to ensure that Agrobank’s governance structure remains in line with the best practices. This is achieved through the Board’s evaluation, which provides a powerful and valuable feedback mechanism to improve the Board’s effectiveness, maximising strengths and highlighting areas for further development. Agrobank is mindful that an effective board evaluation exercise helps the Board, committees and individual directors perform to their optimum capabilities. At Agrobank, the Nomination Committee is responsible for ensuring that the directors continue to satisfy the ‘Fit and Proper’ criteria once they have been appointed. This is achieved via an annual evaluation of all directors, which is conducted towards year end. The evaluation comprises an elaborate questionnaire that requires the directors to assess themselves as well as their peers. These assessments are analysed by the Company Secretary and the results are presented to the Chairman, who also provides each director with his own personal rating, while ratings of the others are kept confidential. Based on the results of the evaluation, the Company Secretary recommends actions to be taken to fill in any gap that exists in the Board and strengthen its capabilities.
  130. Latihan bagi Para Pengarah Directors ’ Training Untuk membolehkan para pengarah menjalankan fungsi mereka dengan berkesan, Lembaga Pengarah memastikan pendidikan berterusan disediakan untuk melengkapkan mereka dengan kemahiran dan pengetahuan yang diperlukan. Semua Pengarah baharu dibekalkan dengan fail induksi dan pihak Pengurusan Kanan akan memberikan taklimat yang relevan untuk membantu Pengarah lebih memahami pengurusan dan operasi di Agrobank serta isu dan cabaran semasa yang dihadapi. Pengarah baharu dikehendaki menghadiri program Pendidikan Pengarah Institusi Kewangan (FIDE) yang dianjurkan oleh BNM. The Board acknowledges the importance of continuing education for its directors to ensure they are equipped with the necessary skills and knowledge to perform their functions effectively. All new Directors receive an induction file and Senior Management provide relevant briefing to enable the Director to gain a better understanding of Agrobank’s management and operations, as well as current issues and challenges faced. New directors are also required to attend the Financial Institutions Directors’ Education (FIDE) programme organised by BNM. Selain itu, para Pengarah digalakkan menghadiri program latihan dan bengkel yang relevan kepada Agrobank untuk memenuhi keperluan latihan mereka, dalam penilaian tahunan yang dijalankan. Untuk menangani sebarang kekurangan yang telah dikenal pasti dalam penilaian Lembaga Pengarah, pihak Bank akan menganjurkan sekurang-kurangnya dua program pada setiap tahun. Analisis tentang penilaian tersebut dibentangkan kepada Jawatankuasa Pencalonan pada Februari setiap tahun. Setelah diluluskan oleh Lembaga Pengarah, perbincangan diadakan dengan penyedia latihan untuk merangka latihan yang berkesan yang bersesuaian dengan para pengarah. Setiausaha Syarikat akan memaklumkan kepada para pengarah tentang program-program menarik yang dianjurkan oleh rakan kerjasama Agrobank. Untuk meneruskan usaha pembelajaran berterusan dan pemerolehan kemahiran dan pengetahuan yang relevan bagi mempertingkatkan kepakaran dan profesionalisme para Pengarah, mereka telah menghadiri program latihan, persidangan dan forum berikut sepanjang tahun 2018: Pengarah Directors Tan Sri Mohamad Zabidi Zainal In addition, Directors are encouraged to attend training programmes and workshops on areas relevant to Agrobank and in accordance with the training needs as determined through the annual evaluation. At least two in-house programmes are organised every year, to fill in any gaps that have been identified from the Board evaluation. An analysis of the evaluation was tabled to the Nomination Committee by February each year. Once approved by the Board, a discussion is held with training providers to customise suitable training for the directors. The Company Secretary makes known programmes that have been organised by Agrobank’s partner organisations, which may be of interest to the directors. In furtherance of the quest for continuous learning and acquisition of relevant skills and knowledge in order to enhance their business expertise and professionalism, Directors have attended the following training programmes, conferences and forums during the year of 2018. Latihan Dihadiri Training Attended Pengurusan Risiko, Basel & Modal serta Latihan Risiko Siber Risk, Basel & Capital Management and Cyber Risk Training Program Kewangan Islam untuk Lembaga Pengarah (ISRA) Islamic Finance for Board of Directors (ISRA) Dato’ Dr. Yusof Ismail Pengurusan Risiko, Basel & Modal serta Latihan Risiko Siber Risk, Basel & Capital Management and Cyber Risk Training Dato’ Dr. Mohamad Hashim Ahmad Tajudin Datin Setia Shahariah Hashim Pengurusan Risiko, Basel & Modal serta Latihan Risiko Siber Risk, Basel & Capital Management and Cyber Risk Training “Women on Board: Value, Challenges & Managing Process” - K-Pintar Sdn. Bhd. Women on Board: Value, Challenges & Managing Process - K-Pintar Sdn. Bhd. “Win the Innovation Race: Unlocking the Creative Power of Asians” by Professor Roy Chua Win the Innovation Race: Unlocking the Creative Power of Asians by Professor Roy Chua Program Pensijilan Pengarah Risiko Berkelayakan 2018 - Siri 3: Kesanggupan Menanggung Risiko, Toleransi dan Pengawasan Lembaga Pengarah dan Siri 4 – Strategi ERM: Keutamaan bagi Pengarah – IERP Sdn. Bhd. Qualified Risk Director Certification Programme 2018 - Series 3: Risk Appetite, Tolerance and Board Oversight & Series 4 – Strategic ERM: A Primer for Directors – IERP Sdn. Bhd. Program Kewangan Islam untuk Lembaga Pengarah (ISRA) Islamic Finance for Board Programme (ISRA) Tarikh Latihan Date of Training 4 Oktober/October 2018 14 - 15 November/November 2018 4 Oktober/October 2018 4 Oktober/October 2018 9 Mac/March 2018 6 Jun/June 2018 28 Jun/June 2018 11 - 12 Julai/July 2018 LAPORAN TAHUNAN 2018 ANNUAL REPORT 121
  131. PENYATA TADBIR URUS KORPORAT STATEMENT ON CORPORATE GOVERNANCE Pengarah Directors Latihan Dihadiri Training Attended Tarikh Latihan Date of Training Program Pensijilan Pengarah Risiko Berkelayakan 2018 - Siri 5 : Peningkatan Jangkaan bagi Lembaga Pengarah dan Siri 6 – Peranan Lembaga Pengarah dalam Pengurusan Risiko Penipuan Qualified Risk Director Certification Programme 2018 - Series 5: (Evolving Expectations for Boards) and Series 6 (The Role of Boards in Fraud Risk Management) Pengurusan Risiko, Basel & Modal serta Latihan Risiko Siber Risk, Basel & Capital Management and Cyber Risk Training 20 Ogos/August 2018 Program Pensijilan Pengarah Risiko Berkelayakan 2018 - Siri 11: Panduan Pengarah untuk Rangka Kerja Kematangan Risiko dan Siri 12: Pengawasan Keselamatan Siber oleh Lembaga Pengarah Qualified Risk Director Certification Programme 2018 - Series 11: Directors Guide to Risk Maturity Frameworks & Series 12: Cyber Security Oversight in the Boardroom Bengkel FORUM FIDE – Mengenal pasti Ahli Lembaga Pengarah anda yang seterusnya FIDE FORUM Workshop - Identifying your next Board Talent 122 Program Pensijilan Pengarah Risiko Berkelayakan 2018 - Siri 14: Panduan Jawatankuasa Audit bagi COSO 2013 dan Kawalan Dalaman Qualified Risk Director Certification Programme 2018 - Series 14: Audit Committee’s guide to COSO 2013 and Internal Controls Program Pensijilan Pengarah Risiko Berkelayakan 2018 - Siri 15: Panduan Pengarah bagi GRC (Tadbir Urus, Risiko dan Pematuhan) Qualified Risk Director Certification Programme 2018 - Series 15: Director’s Guide to GRC (Governance, Risk and Compliance) Ceramah Lembaga Pengarah FORUM BNM-FIDE (Bank dan IKP) BNM-FIDE FORUM Board Conversations (Banks and DFIs) AGROBANK Azizah Abdul Rahman “Women on Board: Value, Challenges & Managing Process” – K-Pintar Sdn. Bhd. Women on Board: Value, Challenges & Managing Process – K-Pintar Sdn. Bhd. “Win the Innovation Race: Unlocking the Creative Power of Asians” by Professor Roy Chua Win the Innovation Race: Unlocking the Creative Power of Asians by Professor Roy Chua Program Pensijilan Pengarah Risiko Berkelayakan 2018 - Siri 3: Kesanggupan Menanggung Risiko, Toleransi dan Pengawasan Lembaga Pengarah dan Siri 4 – Strategi ERM: Keutamaan bagi Pengarah – IERP Sdn. Bhd. Qualified Risk Director Certification Programme 2018 - Series 3: Risk Appetite, Tolerance and Board Oversight & Series 4 – Strategic ERM: A Primer for Directors – IERP Sdn. Bhd. Program Kewangan Islam untuk Lembaga Pengarah (ISRA) Islamic Finance for Board Programme (ISRA) Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Program Pensijilan Pengarah Risiko Berkelayakan 2018 - Siri 5: Peningkatan Jangkaan bagi Lembaga Pengarah dan Siri 6 – Peranan Lembaga Pengarah dalam Pengurusan Risiko Penipuan Qualified Risk Director Certification Programme 2018 - Series 5: (Evolving Expectations for Boards) and Series 6 (The Role of Boards in Fraud Risk Management) Pengurusan Risiko, Basel & Modal serta Latihan Risiko Siber Risk, Basel & Capital Management and Cyber Risk Training Program Pensijilan Pengarah Risiko Berkelayakan 2018 - Siri 11: Panduan Pengarah untuk Rangka Kerja Kematangan Risiko dan Siri 12 – Pengawasan Keselamatan Siber oleh Lembaga Pengarah Qualified Risk Director Certification Programme 2018 - Series 11: Directors Guide to Risk Maturity Frameworks & Series 12: Cyber Security Oversight in the Boardroom Program Pensijilan Pengarah Risiko Berkelayakan 2018 - Siri 14: Panduan Jawatankuasa Audit bagi COSO 2013 dan Kawalan Dalaman Qualified Risk Director Certification Programme 2018 - Series 14: Audit Committee’s guide to COSO 2013 and Internal Controls 4 Oktober/October 2018 22 Oktober/October 2018 8 November/November 2018 8 November/November 2018 22 November/November 2018 27 November/November 2018 9 Mac/March 2018 6 Jun/June 2018 28 Jun/June 2018 11 - 12 Julai/July 2018 20 Ogos/August 2018 4 Oktober/October 2018 22 Oktober/October 2018 8 November/November 2018
  132. Pengarah Directors Latihan Dihadiri Training Attended Ceramah Lembaga Pengarah FORUM BNM-FIDE (Bank dan IKP) BNM-FIDE FORUM Board Conversations (Banks and DFIs) Ibrahim Hassan Faizah Abdullah Program Pensijilan Pengarah Risiko Berkelayakan 2018 - Siri 3: Kesanggupan Menanggung Risiko, Toleransi dan Pengawasan Lembaga Pengarah dan Siri 4 – Strategi ERM: Keutamaan bagi Pengarah - IERP Sdn. Bhd. Qualified Risk Director Certification Programme 2018 - Series 3: Risk Appetite, Tolerance and Board Oversight & Series 4 – Strategic ERM: A Primer for Directors – IERP Sdn. Bhd. Pengurusan Risiko, Basel & Modal serta Latihan Risiko Siber Risk, Basel & Capital Management and Cyber Risk Training Program Teras FIDE FIDE Core Programme Modul A/Module A Modul B/Module B “Women on Board: Value, Challenges & Managing Process” – K-Pintar Sdn. Bhd. Women on Board: Value, Challenges & Managing Process – K-Pintar Sdn. Bhd. “Win the Innovation Race: Unlocking the Creative Power of Asians” by Professor Roy Chua Win the Innovation Race: Unlocking the Creative Power of Asians by Professor Roy Chua Program Pensijilan Pengarah Risiko Berkelayakan 2018 - Siri 3: Kesanggupan Menanggung Risiko, Toleransi dan Pengawasan Lembaga Pengarah dan Siri 4 – Strategi ERM: Keutamaan bagi Pengarah - IERP Sdn. Bhd. Qualified Risk Director Certification Programme 2018 - Series 3: Risk Appetite, Tolerance and Board Oversight & Series 4 – Strategic ERM: A Primer for Directors – IERP Sdn. Bhd. Program Kewangan Islam untuk Lembaga Pengarah (ISRA) Islamic Finance for Board Programme (ISRA) Program Pensijilan Pengarah Risiko Berkelayakan 2018 - Siri 7: Menubuhkan Jawatankuasa Lembaga Risiko yang mantap dan Siri 8 – Panduan Pengarah bagi ERM dan ISO 31000 Qualified Risk Director Certification Programme 2018 - Series 7: (Establishing an empowered Board Risk Committee) and Series 8 (Directors Guide to ERM and ISO 31000) Pengurusan Risiko, Basel & Modal serta Latihan Risiko Siber Risk, Basel & Capital Management and Cyber Risk Training Abdul Rahim Abd Hadi Program Pensijilan Pengarah Risiko Berkelayakan 2018 - Siri 14: Panduan Jawatankuasa Audit bagi COSO 2013 dan Kawalan Dalaman Qualified Risk Director Certification Programme 2018 - Series 14: Audit Committee’s guide to COSO 2013 and Internal Controls Program Pensijilan Pengarah Risiko Berkelayakan 2018 - Siri 15: Panduan Pengarah bagi GRC (Tadbir Urus, Risiko dan Pematuhan) dan Siri 16 – Tadbir Urus dan ERM, termasuk Pertimbangan MCCG 2017 Qualified Risk Director Certification Programme 2018 - Series 15: Director’s Guide to GRC (Governance, Risk and Compliance) and Series 16: Governance and ERM, including MCCG 2017 Considerations Program Teras FIDE (Modul A) FIDE Core Programme (Module A) Pengurusan Risiko, Basel & Modal serta Latihan Risiko Siber Risk, Basel & Capital Management and Cyber Risk Training Tarikh Latihan Date of Training 27 November/November 2018 28 Jun/June 2018 4 Oktober/October 2018 7 - 10 Mac/March 2018 27 - 29 Mac/March 2018 9 Mac/March 2018 6 Jun/June 2018 28 Jun/June 2018 11 - 12 Julai/July 2018 13 September/ September 2018 4 Oktober/October 2018 8 November/November 2018 22 November/November 2018 2-5 Julai/July 2018 4 Oktober/October 2018 LAPORAN TAHUNAN 2018 ANNUAL REPORT 123
  133. PENYATA TADBIR URUS KORPORAT STATEMENT ON CORPORATE GOVERNANCE 124 Setiausaha Syarikat Company Secretary Setiausaha Syarikat bertanggungjawab kepada Lembaga Pengarah untuk memastikan prosedur dan semua peraturan serta kod tadbir urus adalah dipatuhi . Setiausaha Syarikat juga memberi panduan kepada para pengarah mengenai tadbir urus, pematuhan dan tanggungjawab fidusiari mereka. Oleh itu, para pengarah diberikan akses yang tidak terbatas untuk mendapatkan khidmat nasihat Setiausaha Syarikat di samping akses penuh dan bertepatan masanya untuk mendapatkan maklumat yang relevan supaya mereka dapat menjalankan tugas mereka dengan betul. The Company Secretary is responsible to the Board for inter alia, ensuring that procedure and all regulations and governance codes are observed. The Company Secretary also provides guidance to the directors on governance, compliance and their fiduciary responsibilities. As such directors have unrestricted access to the advice and services of the Company Secretary as well as full and timely access to information that are relevant to the proper discharge of their duties. Fungsi dan peranan utama Setiausaha Syarikat merangkumi: Some of the key functions and roles of the Company Secretary are: • • Menyokong Lembaga Pengarah dan Pengerusi Setiausaha Syarikat menyokong Pengerusi dan Lembaga Pengarah dalam menggalakkan standard tadbir urus korporat yang tertinggi, dan memastikan keberkesanan fungsi Lembaga Pengarah serta jawatankuasanya, jika perlu. Bagi tujuan ini, Setiausaha Syarikat: The Company Secretary supports the Chairman and the Board in promoting the highest standards of corporate governance, and facilitating the effective functioning of the Board and its committees, where appropriate. To this effect, the Company Secretary: –Menasihati Pengerusi dan para pengarah berkenaan tugas dan tanggungjawab mereka. –Provides advice to the Chairman and directors as to their duties and responsibilities. – –Ensures the meeting flows effectively. –Mencatatkan keputusan Lembaga Pengarah, dan memastikan keputusan tersebut disampaikan kepada pihak pengurusan untuk tindakan selanjutnya dan dimaklumkan kepada para pengarah. –Records the decisions of the Board, ensuring decisions are relayed to management to act upon and circulated amongst the directors. –Menyediakan akses dan perkhidmatan penuh kepada Lembaga Pengarah. –Provides full access and services to the Board. • Appointment of new directors AGROBANK • Memastikan mesyuarat berjalan dengan lancar. Pelantikan pengarah baharu Setiausaha Syarikat memastikan pelantikan semua Pengarah baharu adalah dilaksanakan dengan betul. Ini termasuk membantu Lembaga Pengarah memastikan pelantikan pengarah baharu berjalan dengan lancar, dan memberi taklimat kepada Pengarah baharu tentang struktur organisasi Agrobank serta prosedur kawal selia bagi operasi Lembaga Pengarah. Setiausaha Syarikat turut bertanggungjawab untuk memastikan Pengarah baharu menjalani proses induksi yang sesuai, dan mendapat semua maklumat yang relevan agar mereka dapat menjalankan tugas mereka dengan sebaiknya. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Support the Chairman and the Board •Pematuhan pentadbiran kepada keperluan pemfailan dan Setiausaha Syarikat bertanggungjawab untuk memastikan Agrobank mematuhi undang-undang dan peraturan pemfailan yang relevan. Oleh yang demikian, Setiausaha Syarikat memainkan peranan penting dalam membimbing dan menasihati Lembaga Pengarah berkenaan pematuhan undang-undang, bagi memastikan prosedur pengendalian mesyuarat dan penyimpanan dokumen korporat secara selamat adalah dipatuhi. Setiausaha Syarikat juga bertanggungjawab dalam membantu Lembaga Pengarah mentafsir akta perundangan dan kawal selia yang berkaitan dengan Agrobank, memaklumkan kepada Pengerusi tentang kemungkinan berlakunya pelanggaran undangundang dan peraturan kawal selia, serta menasihati Lembaga Pengarah mengenai kewajipannya untuk mendedahkan maklumat penting. The Company Secretary ensures all appointments of new Directors are properly effected. This includes assisting the Board in ensuring a smooth administration of the appointment of new Directors, briefing new Directors on organisational structure of Agrobank and procedures that regulate the operations of the Board. The Company Secretary is also responsible for ensuring that new Directors receive appropriate induction into Agrobank and receive all relevant information for the proper discharge of their duties. • Compliance with filing and administrative requirements The Company Secretary is responsible for ensuring that Agrobank is in compliance with filing requirements under relevant statutes, rules and regulations. Hence, the Company Secretary plays an important role in guiding and advising the Board on legal compliance by way of ensuring compliance with the procedure for conducting meetings and safekeeping of corporate documentation, assisting the Board with interpreting legal and regulatory acts related to Agrobank, notifying the Chairman of any possible violations of legal and regulatory acts, and advising the Board on its obligatory requirements to disclose material information.
  134. • • Pelaksanaan Tadbir Urus Korporat Implementation of Corporate Governance Setiausaha Syarikat bertanggungjawab untuk memastikan piawaian tadbir urus korporat yang tertinggi dengan mengikuti perkembangan terbaharu dalam tadbir urus korporat, perubahan dalam rangka kerja perundangan dan pengawalseliaan, serta amalan terbaik antarabangsa. The Company Secretary is responsible for ensuring high standards of governance by keeping abreast with the latest developments in corporate governance, changes in the legal and regulatory framework and international best practices. Jawatankuasa Pengurusan Management Committees Lembaga Pengarah dan jawatankuasanya disokong oleh pelbagai jawatankuasa pengurusan dan setiap jawatankuasa ini terdiri daripada ahli pengurusan kanan, dengan pengetahuan dan pengalaman yang diperlukan dalam bidang tumpuan jawatankuasa tersebut. Presiden/Ketua Pegawai Eksekutif berhak untuk melantik seorang ahli sebagai pengerusi mesyuarat semasa ketiadaan beliau. The Board and its committees are supported by various management committees, each comprising senior members of management with the requisite knowledge and experience in the focus area of the committee. The President/Chief Executive Officer has the right to appoint a member to be the chairman of the meeting in his absence. Buat masa ini, terdapat sebelas jawatankuasa pengurusan, iaitu: • Jawatankuasa Pengurusan • Jawatankuasa Pengurusan Kredit • Jawatankuasa Pengurusan Audit • Jawatankuasa Aset dan Liabiliti •Jawatankuasa Transformasi Pengurusan Teknologi • Jawatankuasa Pengurusan Risiko • Jawatankuasa Pengurusan Risiko Operasi • Jawatankuasa Pendedahan Maklumat • Jawatankuasa Pengurusan Pemerolehan • Jawatankuasa Bahagian Pemerolehan • Jawatankuasa Pelaksanaan Projek SBP Maklumat dan There are currently eleven management committees, namely: • Management Committee • Management Credit Committee • Management Audit Committee • Asset and Liability Committee •Management Information Technology and Transformation Committee • Management Risk Committee • Operational Risk Management Committee • Whistleblower Committee • Management Procurement Committee • Division Procurement Committee • SBP Project Implementation Committee Stakeholder Engagement Penglibatan Pihak Berkepentingan Bagi Agrobank, kemampanan perniagaan hanya boleh dicapai melalui interaksi bersama pihak berkepentingan dan memahami impak perniagaan terhadap persekitarannya. Disebabkan itu, Agrobank menyertai dialog-dialog yang strategik dan proaktif bersama pihak berkepentingan penting untuk memahami pendorong perniagaan dengan lebih baik sambil mengenal pasti peluang yang ada, supaya Agrobank mampu menangani perubahan dalam permintaan lebih awal daripada saingan. Untuk mencapai visi ini, Agrobank perlu meneruskan usaha jalinan kerjasama mereka. Walaupun tiada dasar rasmi berkenaan penglibatan pihak berkepentingan, Agrobank kerap menjalinkan penglibatan dengan para pemegang saham, iaitu MOF Inc., dan pihak berkepentingan utama yang lain seperti Kementerian Pertanian dan Industri Asas Tani, Kementerian Perusahaan Perladangan dan Komoditi, Kementerian Kemajuan Luar Bandar dan Wilayah, serta pengawal selia, iaitu BNM. Agrobank is fully aware that sustainable business can only be achieved by interacting with its stakeholders and understanding the impact of the business has on its environment. Taking part in strategic and proactive dialogue with key stakeholders helps Agrobank to deepen its insights into business drivers and identify opportunities, and thus be ahead of competition in adjusting to changing demands. Agrobank realises that working in partnerships is crucial in delivering its vision. Although there is no formal policy on stakeholder engagement, Agrobank engages regularly with its shareholder, MOF Inc., and other key stakeholders, namely the Ministry of Agriculture and Agro-based Industry, Ministry of Plantation Industries and Commodities, Ministry of Rural and Regional Development, as well as the regulator i.e. BNM. LAPORAN TAHUNAN 2018 ANNUAL REPORT 125
  135. PENYATA TADBIR URUS KORPORAT STATEMENT ON CORPORATE GOVERNANCE 126 AGROBANK Setiap tahun , mesyuarat peringkat tinggi diadakan dengan para menteri dan/atau timbalan yang berkaitan untuk membincangkan prestasi industri pertanian, sumbangan Agrobank serta cara untuk Agrobank meningkatkan sumbangan mereka dalam membangunkan industri ini. Mesyuarat berkala turut diadakan di peringkat Pengurusan Kanan antara Agrobank, dan wakil-wakil kementerian serta pengawal selia. 
 A high-level meeting is held with the relevant ministers and/ or their deputies annually to discuss the performance of the agriculture industry, Agrobank’s contributions as well as ways in which Agrobank could lend further support to the development of the industry. This is supported by regular meetings at the Senior Management level between Agrobank and representatives of the ministries and regulatory bodies. Agrobank memberi maklum balas yang berterusan berkenaan pengurusan dan pengagihan dana konsesi daripada kementerian untuk memberi jaminan kepada agensi kerajaan bahawa dana tersebut diuruskan sebaiknya, selaras dengan objektif yang ditetapkan untuk menyokong agenda pembangunan negara oleh Kerajaan. Khususnya, dana tersebut disalurkan dengan cara yang sewajarnya untuk mendorong pembangunan dalam segmen yang disasarkan. Penglibatan sedemikian tersirat dalam Akta IKP yang mentadbir Bank dan lain-lain IKP. 
 Agrobank provides constant feedback on the management and distribution of concessionary funds from the ministries, and providing assurance to the government agencies that the fund are being administered in line with set objectives that support the Government’s overall national development agenda. On this particular note, the funds are being channelled appropriately in a manner that promotes the development of the targeted segments. Such engagement is implicit in the DFIA governing the bank and other DFIs. Agrobank merangkumi pelbagai jabatan dan bahagian khusus dalam hubungan kerajaan, hubungan industri dan hubungan kakitangan. Setiap pasukan dilengkapkan dengan rangka kerja keterlibatan bagi pihak berkepentingan masing-masing. Agrobank has various departments and sections dedicated to government relations, industry relations and employee relations. Each team has their engagement framework with its respective stakeholders. Kebertanggungjawaban dan Audit Accountability and Audit Penyata Tanggungjawab Pengarah Directors’ Responsibility Statement Para pengarah bertanggungjawab untuk memastikan penyata kewangan Agrobank memberikan pandangan yang benar dan saksama mengenai keadaan Agrobank, di samping prestasi dan kedudukan aliran tunainya bagi tahun kewangan berakhir 2018. Penyata-penyata ini disediakan menurut piawaian perakaunan yang diluluskan oleh Lembaga Pengarah, iaitu Piawaian Pelaporan Kewangan Malaysia (MFRS) dan Piawaian Pelaporan Kewangan Antarabangsa (IFRS), dan turut mematuhi keperluan Akta Syarikat, 2016 di Malaysia. Penyata kewangan dibentangkan kepada para pemegang saham melalui surat dan kemudiannya disiarkan dalam laporan tahunan Agrobank yang akan diedarkan kepada semua pihak berkepentingan dan turut disediakan dalam talian melalui laman web Agrobank di www.agrobank.com.my. The directors are responsible for ensuring the financial statements of Agrobank provide a true and fair view of the state of affairs of Agrobank, as well as its performance and cash flow position for the financial year ended 2018. These statements are prepared in accordance with accounting standards approved by the Board, namely the Malaysian Financial Reporting Standards (MFRS) and International Financial Reporting Standards (IFRS), and comply with the requirements of the Companies Act, 2016 in Malaysia. The financial statements are presented to the shareholders via letters and subsequently published in Agrobank’s annual report, which is distributed to all stakeholders and also made available online on Agrobank’s website at www.agrobank.com.my. Kawalan Dalaman Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Agrobank mengendalikan dan membangunkan sistem kawalan dalamannya dengan matlamat utama untuk menambah baik prestasi perniagaannya dan pada masa yang sama, mematuhi undang-undang serta peraturan. Kawalan dalaman meliputi semua dasar, proses, prosedur dan struktur organisasi dalam Agrobank yang membantu pihak pengurusan, dan terutamanya pihak Lembaga Pengarah dalam memastikan Agrobank mencapai matlamatnya, serta pengendalian perniagaannya mematuhi semua undang-undang dan peraturan yang berkenaan. Lembaga Pengarah bertanggungjawab untuk mengendalikan dan menyemak keberkesanan pengurusan risiko dan kawalan dalaman dalam pengurusan dan pemantauan risiko penting, bagi melindungi pelaburan para pemegang saham, kepentingan pelanggan, serta aset Agrobank. Lembaga Pengarah mengkaji rangka kerja pengurusan risiko Agrobank secara berterusan untuk memastikan kecekapan dan keberkesanan prosedur operasi dan kawalan dalaman untuk mengukur, mengawal, memantau dan melaporkan risiko; dan memastikan ia sentiasa dikemas kini menurut perubahan dalam persekitaran perniagaan dan keadaan operasi dalaman. Internal Controls Agrobank maintains and develops its internal control system with the ultimate aim of improving its business performance and, at the same time, complying with the laws and regulations. Internal controls cover all the policies, processes, procedures and organisational structures within Agrobank that help management, and ultimately the Board, to ensure that Agrobank is achieving its objectives and that the business conduct is in compliance with all applicable laws and regulations. The Board is responsible for maintaining and reviewing the effectiveness of risk management and internal control to manage and monitor material risks, thus ensuring that shareholders’ investments, customers’ interests and Agrobank’s assets are safeguarded. The Board continuously reviews Agrobank’s risk management framework with a view to ensure adequate and effective operational procedures and internal controls to measure, control, monitor, and report risks are in place; and are updated in line with changes arising within the business environment and internal operating conditions.
  136. Untuk menilai kecukupan dan keberkesanan sistem kawalan dalaman bagi Agrobank , BAC mengkaji keberkesanan tindakan pemulihan yang diambil atas kelemahan/kekurangan yang dikenal pasti dalam laporan yang disediakan oleh juruaudit dalaman dan luar, semasa mesyuarat yang dijadualkan. BAC turut mengkaji semula saranan juruaudit dan maklum balas pihak pengurusan terhadap saranan tersebut, bagi memastikan apa-apa kelemahan atau kekurangan yang dikenal pasti dapat ditanganu dengan segera Dasar Pendedahan Maklumat Agrobank komited untuk mendukung standard integriti, keterbukaan dan kebertanggungjawaban yang tertinggi dalam menjalankan perniagaan dan operasinya. Sejajar dengan penerapan prinsip VBI, Agrobank bertekad untuk menjalankan urusannya secara beretika, bertanggungjawab dantelus. Agrobank mengambil segala langkah yang mungkin untuk mengelakkan sebarang tindakan tidak wajar yang boleh mendatangkan akibat yang serius kepada Agrobank, atau kakitangannya. Agrobank turut memandang serius sebarang penyelewengan atau kesalahan oleh mana-mana kakitangan, anggota pengurusan atau Lembaga Pengarah, khususnya perkara berkaitan dengan tanggungjawab mereka untuk melindungi kepentingan Agrobank. Bagi membendung sebarang penyelewengan, Agrobank menyediakan saluran komunikasi dan saluran lain untuk kakitangan menyuarakan kemusykilan mereka secara sulit, tentang kemungkinan berlakunya kesalahan, penyelewengan atau sebarang salah laku yang disedari oleh mereka. Dasar Pendedahan Maklumat Agrobank menyediakan saluran yang tersusun di mana individu membuat laporan dengan jujur tanpa rasa risau terhadap tindakan balas, tentang kebimbangan berlakunya kesalahan dalam pelaporan kewangan atau apaapa kesalahan yang disyaki, sama ada yang sedang atau telah berlaku, serta tindakan masa lalu yang boleh memudaratkan Agrobank. Ini termasuk, tetapi tidak terhad kepada kejadian tidak beretika, seperti aktiviti jenayah atau pelanggaran undangundang/peraturan oleh kakitangan lain atau mana-mana individu yang berurusan dengan Agrobank. Selaras dengan Dasar Pendedahan Maklumat Agrobank, identiti pemberi maklumat akan dilindungi, sebaik yang mampu dilakukan, dan beliau akan dilindungi daripada sebarang tindakan buruk dan memudaratkan susulan pendedahannya tentang perbuatan tidak wajar yang telah berlaku ataupun yang akan dilakukan dalam Agrobank, sebaik yang mampu dilakukan, asalkan pendedahan tersebut telah dibuat dengan jujur. Ikrar Integriti Korporat Etika dan integriti membentuk komponen utama dalam semua aspek tadbir urus korporat dan dalam setiap keputusan serta tindakan oleh Lembaga Pengarah. Sejajar dengan komitmen Agrobank untuk mengekalkan standard integriti, tadbir urus korporat dan ketelusan yang tertinggi, Agrobank merupakan IKP pertama untuk menandatangani Ikrar Integriti pada 6 September 2014. Di bawah ikrar ini, Agrobank bertekad untuk bekerjasama dengan Suruhanjaya Pencegahan Rasuah Malaysia (SPRM) untuk mewujudkan budaya yang berintegriti dengan sifar toleransi terhadap penipuan atau rasuah. Ikrar ini membuktikan komitmen Agrobank untuk mendukung amalan perniagaan beretika dan menetapkan “Budaya Etika dari Atas” dalam mendorong penerapan integriti dalam Agrobank. The BAC regularly evaluates the adequacy and effectiveness of Agrobank’s internal control systems by reviewing the effectiveness of remedial actions taken on lapses/deficiencies identified in reports prepared by the internal and external auditors during its scheduled meetings. The BAC also reviews the auditors’ recommendations, and management’s response to these, to ensure any lapse of deficiency identified is dealt with adequately and promptly. Whistleblowing Policy Agrobank is committed to the highest possible standards of integrity, openness and accountability in the conduct of this businesses and operation. Agrobank aspires to conduct its affairs in an ethical, responsible and transparent manner in line with the adopted VBI principles. Agrobank takes every effort to avoid any improprieties that may result in serious consequences for Agrobank or its employees. It also takes a serious view of any malpractice or wrong-doing on the part of any employee, member of management or Board, in particular with respect to their obligations to Agrobank’s interest. In order to curb any malpractices, Agrobank has in place communication channels and other avenues for employees to raise concerns in confidence about possible wrong-doing, malpractice or any misconduct of which they become aware. Agrobank’s Whistleblowing Policy provides for access to welldefined channels for any individual to report in good faith, without fear of reprisal, concerns about possible improprieties in financial reporting or any suspected wrongdoings, either ongoing or past action that could be detrimental to Agrobank. These include, but are not limited to unethical incidences such as criminal activities or contravention of laws/regulations committed by another employee or any person who has dealings with Agrobank. In accordance to Agrobank’s Whistleblowing Policy, a whistleblower will be accorded with protection of confidentiality of identity, to the extent reasonably practicable and shall be protected against any adverse and detrimental actions for disclosing any improper conduct committed or about to be committed within Agrobank, to the extent reasonably practicable, provided that the disclosure is made in good faith. Corporate Integrity Pledge Ethics and integrity are inherent components in all aspects of corporate governance and in every board decisions and actions. Underlining its commitment to maintaining high standards of integrity, corporate governance and transparency, Agrobank became the first DFI to sign the Integrity Pledge on 6 September 2014. With this pledge, Agrobank is committed to working with the Malaysian Anti-Corruption Commission (MACC) to create a culture of integrity and zero tolerance to fraud or corruption. This pledge is a sign of manifestation of commitment to observe ethical business practices and sets the “Tone at the Top” in driving the integrity agenda within Agrobank. LAPORAN TAHUNAN 2018 ANNUAL REPORT 127
  137. Fakta-fakta tentang Cili Dua jenis cili : Cili Merah Minyak & Cili Merah Kulai ditanam di Malaysia. Cili merangkumi tanaman tahunan, yang ditanam secara komersial khususnya di Johor, Perak dan Kelantan. Cili tempatan adalah cili premium yang berkualiti lebih baik berbanding cili import. Pada 2017, pengeluaran cili merah tempatan sebanyak 27,000 tan hanya mampu memenuhi 39% permintaan negara dimana 61% cili yang selebihnya perlu diimport pada tahun 2017. Untuk kekal kompetitif dalam pasaran, MOA sedang berusaha untuk memperolehi keberkesanan kos dalam pengeluaran cili merah. Umumnya, penanaman cili dianggap sebagai cara mudah untuk menjana pendapatan. Memandangkan cili membentuk ramuan penting dalam kebanyakan hidangan tempatan dan serantau, ia disokong oleh permintaan dan harga yang stabil. Bekalan cili semasa memenuhi keperluan pengguna tempatan yang menginginkan cili premium, dan keperluan perniagaan agromakanan tempatan yang menggunakan cili sebagai ramuan utama dalam pembuatan pes dan sos. Buat masa ini,
  138. Pengeluaran Cili (tan) Chilli Production (tonnes) 2017 2016 27,358 43,738 Agrobank menawarkan Program Cili Fertigasi-i kepada komuniti pertanian di negeri Selangor (Kuala Langat) pada tahun 2017 yang telah diperluaskan ke kawasan-kawasan lain di Selangor, Kelantan dan Sarawak pada 2018. Program ini memastikan pendapatan berterusan untuk petani menerusi pembelian yang terjamin dan pembayaran semula secara konsisten oleh para petani. Pengeluaran Cili (Eksport) (tan) Chilli Production (Export) (tonnes) Chilli cultivation is generally regarded as an easy and manageable process that generates a good income. It is 2017 2016 supported by steady demand and pricing as it is an important ingredient in most local and regional cuisine. The current chilli supply caters to both local consumers who seek premium chillies and local agro food businesses that require chillies 3,807 4,000 as a core ingredient in creating pastes and sauces. As yet, Malaysia does not produce enough chillies to meet market demands and future strategies include making premium Malaysian chilli more affordable through increased cost efficiencies so as to achieve self-sustainability levels, and Tahap Sara Diri (SSL) SELF-SUFFICIENCY Level (SSL) increase output to optimise on export opportunities. 2017 2016 pengeluaran cili Malaysia masih tidak dapat menampung permintaan pasaran. Demikian, strategi masa depan turut merangkumi usaha memastikan cili premium Malaysia lebih mampu dibeli dengan memperbaiki keberkesanan kos bagi mencapai tahap sara diri, dan meningkatkan output bagi mengoptimumkan peluang eksport. Agrobank offers the pilot Chilli Fertigation-i Programme for agriculture 49.1% 38.8% communities within the state of Selangor (Kuala Langat) and extended it to other areas in Selangor, Kelantan and Sarawak in 2018. The programme ensures steady income to farmers via guaranteed purchase and farmers’ steady payment of the facility. Sumber: Jabatan Statistik Malaysia Source: Department of Statistics Malaysia
  139. CHILLI Fakta-fakta tentang Cili FACTS • Two types of chilli – Cili Merah Minyak & Cili Merah Kulai areditanam cultivated in Malaysia. Dua jenis cili: Cili Merah Minyak & Cili Merah – Kulai di Malaysia. • tanaman Chillitahunan, is anyangannual crop,komersial cultivated commercially Cili merangkumi ditanam secara khususnya di Johor, Perak dan mainly Kelantan. in Johor, Perak and Kelantan. Cili tempatan adalah cili • premium yangchillies berkualiti lebih berbandingchillies cili import.of Local arebaik premium than imported ones. better quality Pada 2017, pengeluaran cili merah tempatan sebanyak 27,000 tan hanya mampu memenuhi 39% permintaan negara dimana 61% cili yang • In 2017, 27,000 tonnes selebihnya perlu diimport pada tahun 2017. of local red chilli produced could only accommodate 39% country’s demand, with Untuk kekal kompetitif dalam MOA sedang berusaha untuk 61% pasaran, imported in 2017. memperolehi keberkesanan kos dalam pengeluaran cili merah. • In order to remain competitive in the market, MOA is looking at addressing the cost efficiency of red chilli production. Umumnya, penanaman cili dianggap sebagai cara mudah untuk menjana pendapatan. Memandangkan cili membentuk ramuan penting dalam kebanyakan hidangan tempatan dan serantau, ia disokong oleh permintaan dan harga yang stabil. Bekalan cili semasa memenuhi keperluan pengguna tempatan yang menginginkan cili premium, dan keperluan perniagaan agromakanan tempatan yang menggunakan cili sebagai ramuan utama dalam pembuatan pes dan sos. Buat masa ini,
  140. Pengeluaran Cili (tan) Chilli Production (tonnes) 2017 2016 27,358 43,738 Pengeluaran Cili (Eksport) (tan) Chilli Production (Export) (tonnes) Chilli cultivation is generally regarded as an easy and manageable process that generates a good income. It is 2017 2016 supported by steady demand and pricing as it is an important ingredient in most local and regional cuisine. The current chilli supply caters to both local consumers who seek premium chillies and local agro food businesses that require chillies 3,807 4,000 as a core ingredient in creating pastes and sauces. As yet, Malaysia does not produce enough chillies to meet market demands and future strategies include making premium Malaysian chilli more affordable through increased cost efficiencies so as to achieve self-sustainability levels, and Tahap Sara Diri (SSL) SELF-SUFFICIENCY Level (SSL) increase output to optimise on export opportunities. 2017 2016 49.1% 38.8% Agrobank offers the pilot Chilli Fertigation-i Programme for agriculture communities within the state of Selangor (Kuala Langat) and extended it to other areas in Selangor, Kelantan and Sarawak in 2018. The programme ensures steady income to farmers via guaranteed purchase and farmers’ steady payment of the facility. Sumber: Jabatan Statistik Malaysia Source: Department of Statistics Malaysia
  141. PROFIL JAWATANKUASA SYARIAH SHARIAH COMMITTEE ’S PROFILES Profesor Madya Dr. Mohamed Fairooz Abdul Khir Pengerusi Chairman Tarikh dilantik/Date appointed: 1 Ogos/August 2012 Pengalaman/Experiences: Kelayakan/Qualifications: 130 AGROBANK •Ijazah Kedoktoran Syariah (Kewangan Islam), Universiti Malaya (UM) PhD in Shariah (Islamic Finance), University of Malaya (UM) •Ijazah Sarjana Syariah, Universiti Malaya (UM) Masters in Shariah, University of Malaya (UM) •Ijazah Sarjana Muda dalam Ilmu Wahyu dan Warisan Islam (Fiqh dan Usul Fiqh), Universiti Islam Antarabangsa Malaysia (UIAM) Bachelors in Islamic Revealed Knowledge and Heritage (Fiqh and Usul Fiqh), International Islamic University Malaysia (IIUM) Beliau turut mendalami ilmu Syariah di bawah bimbingan ulama terkemuka Jordan. Selain itu, beliau telah dianugerahkan Anugerah Biasiswa Syariah oleh Bank Negara Malaysia (BNM) untuk kajian PhD dalam bidang kewangan Islam. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information He has also studied Shariah in Jordan under prominent Jordanian Shariah scholars. He was conferred the Shariah Scholarship Award by Bank Negara Malaysia (BNM) for his PhD study in Islamic finance. • Ahli Jawatankuasa Syariah, Maybank Islamic Berhad Member, Shariah Committee, Maybank Islamic Berhad •Ahli Jawatankuasa Syariah, MNRB Holding (Takaful Ikhlas dan Bahagian Takaful Semula Malaysia) Member, Shariah Committee, MNRB Holding (Takaful Ikhlas and Malaysian Retakaful Division) •Ahli Jawatankuasa Pematuhan Syariah, Lembaga Pertubuhan Peladang Malaysia Member, Shariah Compliance Committee, Farmers’ Organization Authority of Malaysia •Ahli Jawatankuasa Syariah Suruhanjaya Sekuriti (SC) Member, Shariah Committee, Securities Commision (SC) •Ahli Jawatankuasa Majlis Fatwa Negeri Perak Member, Perak State Fatwa Council •Profesor Madya, Universiti Islam Malaysia (UIM) Associate Professor, Islamic University of Malaysia (IUM) • Mantan Ahli Jawatankuasa Syariah, MIDF Islamic Assets Former Shariah Committee member of MIDF Islamic Assets •Mantan Penyelidik, Akademi Penyelidikan Syariah Antarabangsa bagi Kewangan Islam (ISRA) Former Researcher, International Shariah Research Academy for Islamic Finance (ISRA) •Mantan Ketua Unit Perbankan Islam, Akademi Penyelidikan Syariah Antarabangsa bagi Kewangan Islam (ISRA) Former Head of Islamic Banking Unit, International Shariah Research Academy for Islamic Finance (ISRA) •Mantan Pensyarah, Jabatan Ilmu Wahyu dan Sains Kemanusiaan, Pusat Pengajian Asasi, Universiti Islam Antarabangsa Malaysia (UIAM) Former Lecturer, Department of Islamic Revealed Knowledge and Human Sciences, Center for Foundation Studies, International Islamic University (IIUM)
  142. Profesor Madya Dr . Atikullah HAJI Abdullah Ahli Member Tarikh dilantik/Date appointed: 1 Januari/January 2006 Pengalaman/Experiences: Kelayakan/Qualifications: •Ijazah Kedoktoran dalam Pengajian Islam, Birmingham University, United Kingdom PhD in Islamic Studies, Birmingham University, United Kingdom •Ijazah Sarjana dalam Pengajian Islam, Birmingham University, United Kingdom Masters in Islamic Studies, Birmingham University, United Kingdom •Ijazah Sarjana Muda Syariah, Universiti Malaya (UM) Bachelors in Shariah, University of Malaya (UM) •Profesor Madya di Institut Pengajian Islam, Universiti Sains Malaysia (Mengajar Undang-undang Islam, Muamalat, Fiqh dan Ekonomi Islam) Associate Professor at Islamic Studies Institute, Universiti Sains Malaysia (Teaching Islamic Law, Muamalat, Fiqh and Islamic Economy) • Ahli panel Majlis Fatwa Pulau Pinang Panel member of Pulau Pinang Fatwa Council LAPORAN TAHUNAN 2018 ANNUAL REPORT 131
  143. PROFIL JAWATANKUASA SYARIAH SHARIAH COMMITTEE ’S PROFILES Dr. Mohamad Sabri Zakaria Ahli Member Tarikh dilantik/Date appointed: 1 Jun/June 2013 Pengalaman/Experiences: Kelayakan/Qualifications: 132 AGROBANK •Ijazah Kedoktoran Syariah (Fiqh dan Usul Fiqh), Universiti Islam Antarabangsa Malaysia (UIAM) PhD in Shariah (Fiqh and Usul Fiqh), International Islamic University Malaysia (IIUM) •Ijazah Sarjana dalam Ekonomi Islam, Universiti Yarmouk, Jordan Masters in Islamic Economics, Yarmouk University, Jordan •Ijazah Sarjana Muda Syariah, Universiti AlAzhar, Mesir Bachelors in Shariah, Al-Azhar University, Egypt Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information • Penolong Profesor, Universiti Islam Antarabangsa Malaysia Assistant Professor at International Islamic University Malaysia • Ahli Jawatankuasa Syariah, Great Eastern Takaful Sdn. Bhd. Member, Shariah Committee, Great Eastern Takaful Sdn. Bhd. • Ahli Jawatankuasa Syariah, Kumpulan MIDF Member, Shariah Committee, MIDF Group • Mantan Jawatankuasa Syariah, Export-Import Bank of Malaysia Berhad Former Shariah Committee, Export-Import Bank of Malaysia Berhad Dr. Mohamad Sabri Zakaria adalah ahli akademik yang memfokuskan pengajaran, pengawasan serta berpengalaman menghasilkan pelbagai artikel yang berkaitan dengan perbankan dan isu-isu kontemporari Islam
. Dr. Mohamad Sabri Zakaria is an academician who concentrates on teaching, supervision and producing articles related to banking and Islamic contemporary issues.
  144. Y .M. Engku Ahmad Fadzil Y.M. Engku Ali Ahli Member Tarikh dilantik/Date appointed: 1 Jun/June 2015 Pengalaman/Experiences: Kelayakan/Qualifications: •Ijazah Sarjana dalam Kehakiman Islam, Universiti Jordan Masters in Islamic Judiciary, Jordan University •Ijazah Sarjana Muda Undang-undang Syariah, Universiti Islam Antarabangsa Malaysia (UIAM) Bachelors in Shariah Law, International Islamic University Malaysia (IIUM) •Ijazah Sarjana Muda Undang-undang, Universiti Islam Antarabangsa Malaysia (UIAM) Bachelors in Law, International Islamic University Malaysia (IIUM) • Ahli Jawatankuasa Syariah, Bank Muamalat Malaysia Berhad Member, Shariah Committee, Bank Muamalat Malaysia Berhad • Ahli Felo Kanan di Institut Kajian Strategik Islam Malaysia (IKSIM) Senior Fellow at Institut Kajian Strategik Islam Malaysia (IKSIM) • P  ensyarah, Universiti Islam Antarabangsa Malaysia (Mengajar Undang-undang Harta Pusaka, Perundangan Islam dan Undang-Undang Jenayah) Lecturer, International Islamic University Malaysia (Teaching Islamic Law of Successions, Islamic Jurisprudence and Islamic Criminal Laws) • Mantan Peguam Bela dan Peguam Cara, Mahkamah Tinggi Malaya Former Advocate and Solicitor, High Court of Malaya LAPORAN TAHUNAN 2018 ANNUAL REPORT 133
  145. PROFIL JAWATANKUASA SYARIAH SHARIAH COMMITTEE ’S PROFILES TUAN Haji Azizi Che Seman Ahli Member Tarikh dilantik/Date appointed: 1 Jun/June 2015 Pengalaman/Experiences: Kelayakan/Qualifications: 134 AGROBANK •Ijazah Sarjana dalam Ekonomi, Universiti Islam Antarabangsa Malaysia Masters in Economics, International Islamic University Malaysia •Ijazah Sarjana Muda Syariah, Universiti Malaya (UM) Bachelors of Shariah, University of Malaya (UM) •Pengerusi Penasihat Syariah, Persatuan Institusi Perbankan Islam Malaysia (AIBIM) Chairman, Shariah Advisor, Association of Islamic Banking Institutions Malaysia (AIBIM) •Pengerusi Penasihat Syariah, Institusi Perbankan dan Kewangan Islam Malaysia (IBFIM) sehingga September 2018 Chairman, Shariah Advisor, Islamic Banking and Finance Institute Malaysia (IBFIM) until Sept 2018 • Pengerusi Jawatankuasa Syariah, Bank Muamalat Malaysia Berhad Chairman, Shariah Committee, Bank Muamalat Malaysia Berhad •Pensyarah Jabatan Syariah dan Ekonomi, Akademi Pengajian Islam, Universiti Malaya Lecturer, Department of Shariah and Economics, Academy of Islamic Studies, University of Malaya Tuan Haji Azizi bin Che Seman merupakan pakar dalam bidang Pasaran Modal Islam, Ekonomi Islam, Fiqh Muamalat dan Penyelidikan Metodologi Islam. Tuan Haji Azizi bin Che Seman’s specialisation areas are in Islamic Capital Market, Islamic Economics, Fiqh Muamalat and Islamic Research Methodology. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information
  146. TUAN Haji Jahaidi Harun Ahli Member Tarikh dilantik /Date appointed: 1 Jun/June 2015 Pengalaman/Experiences: Kelayakan/Qualifications: •Ijazah Sarjana Muda Ekonomi, Universiti Malaya (UM) Bachelor’s in Economics, University of Malaya (UM) •Mantan Ketua Pengurusan Strategik dan Pembangunan Produk, Maybank Syariah Indonesia Former Head, Strategic Management and Product Development, Maybank Syariah Indonesia •Mantan Pengurus Projek bagi Penukaran PT Maybank Indocorp kepada PT Maybank Syariah Indonesia (MSI), Maybank Former Project Manager - Conversion of PT Maybank Indocorp to PT Maybank Syariah Indonesia (MSI), Maybank • Mantan Ketua Pengurusan Risiko, Maybank Islamic Berhad Former Head of Risk Management, Maybank Islamic Berhad • Mantan Ketua Jualan Korporat dan Komersial, Maybank Islamic Berhad Former Head of Sales, Corporate and Commercial, Maybank Islamic Berhad •Mantan Pengurus Projek bagi Penukaran Bahagian Islam Maybank kepada Maybank Islamic Berhad (MIB), Maybank Former Project Manager - Conversion of Maybank Islamic Division to Maybank Islamic Berhad (MIB), Maybank • Mantan Ketua Jualan, Bahagian Perbankan Islam, Maybank Former Head of Sales, Islamic Banking Division, Maybank • Mantan Ketua Perniagaan Komersial (Perak), Maybank Former Head of Commercial Business (Perak), Maybank Tuan Haji Jahaidi bin Harun merupakan bekas pengamal perbankan Islam, dan berpengalaman luas dalam industri perbankan Islam di Malaysia dan Indonesia. Tuan Haji Jahaidi bin Harun is an ex-Islamic banking practitioner with wide exposure in Islamic banking industry in Malaysia and Indonesia. LAPORAN TAHUNAN 2018 ANNUAL REPORT 135
  147. PENYATA TADBIR URUS SYARIAH STATEMENT ON SHARIAH GOVERNANCE 136 AGROBANK Bank sentiasa peka bahawa tadbir urus Syariah yang komprehensif dan mampan adalah penting untuk memastikan Agrobank memenuhi semua tanggungjawabnya untuk mendukung ajaran Syariah , prinsip-prinsip dan syarat dalam semua aspek operasi perniagaannya. Lantaran itu, Manual Pematuhan Syariah telah disediakan dan dilaksanakan selaras dengan kehendak Garis Panduan Rangka Kerja Tadbir Urus Syariah (SGF) bagi Institusi Kewangan Islam yang dikeluarkan oleh Bank Negara Malaysia (BNM). The Bank is mindful that a comprehensive and robust Shariah governance framework is essential to ensure that Agrobank meets all its obligations in relation to upholding Shariah tenets, principles and conditions in all aspect of its business operations. In view of that, a Shariah Compliance Manual was developed and implemented in line with the requirements prescribed under the Guidelines on Shariah Governance Framework (SGF) for Islamic Financial Institutions issued by Bank Negara Malaysia (BNM). Manual ini antara lain menggariskan mekanisme kawalan patuh Syariah yang lengkap, termasuk pengawasan yang effektif oleh Lembaga Pengarah dan pihak pengurusan, termasuk juga prosedur operasi Jawatankuasa Syariah (SC), serta kod etika dan tatalaku ahli-ahlinya. Jawatankuasa tadbir urus ini disokong oleh fungsi-fungsi khusus Syariah yang bertindak sebagai organ dalaman bagi Bank iaitu Jabatan Syariah, Semakan Syariah, Pengurusan Risiko Syariah dan Audit Syariah, yang mana peranan dan tanggungjawab serta bidang tugas dan kuasa telah termaktub dalam SGF serta polisi dan garis panduan Syariah dalaman bagi Bank. Di peringkat institusi, Jabatan Syariah bertindak sebagai perantara antara SC dan pihak Pengurusan Bank termasuk unitunit perniagaan dan sokongan, manakala fungsi-fungsi Semakan Syariah, Pengurusan Risiko Syariah dan Audit Syariah masingmasing dijalankan oleh bahagian Pematuhan, Pengurusan Risiko dan Audit Dalaman. Among others, the manual outlines the end-to-end Shariahcompliant control mechanism including effective oversight by the Board and management as well as the operational procedures of the Shariah Committee (SC) and code of ethics and conduct of its members. These governing committees are supported by dedicated functions acting as internal Shariah organs of the Bank, namely Shariah Department, Shariah Review, Shariah Risk Management and Shariah Audit, whose roles and responsibilities as well as scope of duties and authorities are embedded in the SGF and the Bank’s internal Shariah policies and guidelines. At the institutional level, the Shariah Department acts as an intermediary between the SC and the Management of the Bank including the business and support units; whilst Shariah Review, Shariah Risk Management and Shariah Audit functions are performed by the Compliance, Risk Management and Internal Audit division respectively. Parameter penguasaan telah dibangunkan bagi meningkatkan tahap kecekapan dengan memberi kuasa kepada Ketua Jabatan Syariah untuk meneliti antara lain mana-mana cadangan yang bersifat jelas dan ringkas, manual operasi, dan aktiviti perbankan seharian dan memberi kelulusan awal selagimana ia dalam perkara yang memenuhi kriteria kelulusan, yang mana kemudiannya akan dimaklumkan kepada SC sewajarnya. Empowerment parameter had been further developed for efficiency purposes where the Head of Shariah Department is empowered to peruse straightforward and non-complicated proposals, operational manuals, and day-to-day banking activities among others and provide an upfront approval as long as it is within the approved criteria where subsequently it will be notified to the SC accordingly. PERANAN DAN TANGGUNGJAWAB Lembaga Pengarah Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Lembaga Pengarah bertanggungjawab atas keseluruhan Rangka Kerja Tadbir Urus Syariah dan status pematuhannya terhadap Syariah. Lembaga Pengarah perlu memastikan rangka kerja tadbir urus tersebut berpadanan dengan saiz, kerumitan, dan jenis operasi perniagaan Bank, dan bertanggungjawab untuk melaksanakannya secara berkesan. Dalam melaksanakan fungsi pengawasan ini, Lembaga Pengarah berhubung secara aktif dengan SC bagi mendapatkan khidmat nasihat dan penjelasan berhubung prinsip-prinsip dan syarat-syarat Syariah. Lembaga Pengarah melantik ahli-ahli SC bersandarkan cadangan daripada Jawatankuasa Pencalonan Lembaga Pengarah. Semua polisi berkaitan Syariah perlu diluluskan oleh SC sebelum boleh dibincangkan dan diluluskan oleh Lembaga Pengarah. Jawatankuasa Syariah Jawatankuasa Syariah (SC) ditubuhkan untuk memastikan perniagaan perbankan Islam dan hal-ehwal operasi serta aktiviti Bank mematuhi peraturan dan prinsip Syariah. Peranan dan tanggungjawab SC ditetapkan dalam SGF yang dikeluarkan oleh BNM, yang menyatakan SC bertanggungjawab atas semua keputusan, pandangan dan pendapat Bank berkaitan dengan urusan Syariah. Jawatankuasa ini mengesahkan polisi serta prosedur Syariah, dan menyemak laporan yang dikemukakan melalui fungsi-fungsi khusus Syariah. Ahli jawatankuasa membincangkan secara mendalam isu dan cadangan yang diterima bagi mengurangkan kelemahan dalam kawalan Syariah, dan risiko ketidakpatuhan Syariah. ROLES AND RESPONSIBILITIES Board of Directors The Board is ultimately accountable and responsible for the overall Shariah Governance Framework and state of compliance with Shariah. The Board ensures that the governance framework is commensurate with the size, complexity and nature of the Bank’s business operations, and is responsible for its effective implementation. In performing its oversight functions, the Board actively engages with the SC for advisory and clarification relating to Shariah principles and requirements. The Board appoints members of the SC based on recommendations of the Board Nominating Committee. All Shariah-related policies are approved by the SC prior to deliberation and approval of the Board. Shariah Committee The Shariah Committee (SC) was established to ensure that the Bank’s Islamic banking business and operational affairs as well as activities are in compliance with Shariah rules and principles. The roles and responsibilities of the SC are as prescribed in the SGF issued by BNM, which states that the SC is responsible for all Bank decisions, views and opinions is relating to Shariah matters. The committee endorses Shariah policies and procedures, and reviews reports escalated by the dedicated Shariah functions. The committee members rigorously deliberate on issues and recommendations to mitigate Shariah control weaknesses and potential Shariah non-compliances.
  148. Peranan dan tanggungjawab SC yang lain adalah seperti berikut : Other roles and responsibilities of the SC are as follows: •Menyemak terma dan syarat dokumen, kontrak dan perjanjian rasmi berkaitan urus niaga dan perkhidmatan Bank, selain menyemak iklan, ilustrasi jualan dan brosur pemasaran. 
 •Review the terms and conditions of the official documents, contracts and agreements associated with the Bank’s transactions and services, as well as the advertisements, sales illustrations and marketing brochures. •Menilai keberkesanan fungsi-fungsi Semakan Syariah dan Audit Syariah. 
 •Bertindak sebagai penasihat kepada badan penasihat undangundang Bank, juruaudit, perunding atau mana-mana pihak yang mewakili Bank berkenaan urusan berkaitan Syariah. •Mewakili Bank untuk mendapatkan nasihat daripada Majlis Penasihat Syariah (SAC) BNM, untuk menyelesaikan sebarang isu dan kemusykilan. 
 SC mengandungi enam orang ahli, yang mana lima daripadanya adalah berpengalaman dan berpengetahuan dalam aspek Syariah yang pelbagai. Manakala ahli keenam pula merupakan ahli perbankan Islam yang berpengalaman, dan bertanggungjawab untuk memberikan pandangan tentang amalan dan operasi perbankan kepada jawatankuasa. Bagi memastikan keberkesanan dalam mesyuarat SC, Bank turut melaksanakan mekanisme penilaian SC untuk menilai prestasi, kecekapan, pengetahuan dan sumbangan individu SC. Di bawah kerangka berkenaan, kekerapan mesyuarat SC ditetapkan sekurang-kurangnya sekali dalam setiap dua bulan, sementara korum minimum bagi mesyuarat adalah seramai 4 ahli. Pada tahun 2018, SC telah mengadakan 12 mesyuarat, di mana usul, semakan dan laporan telah dibentangkan dan dibincangkan dengan teliti, terutamanya mengenai produk dan perkhidmatan baharu dan yang sedia ada. Temuan daripada Semakan dan Audit Syariah, proses pembetulan, perakaunan dan laporan zakat bagi Bank turut dibincangkan dalam mesyuarat-mesyuarat tersebut. Ahli-ahli SC dan rekod kehadiran mereka adalah seperti berikut: Ahli Jawatankuasa Committee member Assoc. Prof. Dr. Mohamed Fairooz Abdul Khir •Assess the effectiveness of the Shariah Review and Shariah Audit functions. •Undertake an advisory role to the Bank’s legal counsel, auditor, consultant or any other party acting for the Bank on matters related to Shariah. •Consult the Shariah Advisory Council (SAC) of BNM, on behalf of the Bank for the resolution of issues and concerns. The SC comprises six members, five of whom have extensive experience and knowledge of different aspects of Shariah, while the sixth member is an experienced Islamic banker who provides insights on banking practices and operations to the committee. In ensuring the effectiveness of the SC meeting, the bank adopts performance assessment mechanism of SC by assessing individual SC’s performance, competency, knowledge and contribution. Under the framework, the frequency of the SC meeting to be held is at least once in every two months, while the minimum quorum for the meeting is 4 members. In 2018, the SC held 12 meetings at which proposals; reviews and reports were presented and thoroughly discussed mainly on new and existing products and services. Findings of Shariah Review and Audit, rectification process, accounting and zakat report of the Bank were also discussed during these meetings. The SC members and their record of attendance are as follows: Jawatan Designation Bilangan mesyuarat dihadiri Number of meetings attended Pengerusi/Chairman 11 Assoc. Prof. Dr. Atikullah Hj. Abdullah Ahli/Member 11 Dr. Mohamad Sabri Zakaria Ahli/Member 11 Y.M. Engku Ahmad Fadzil bin Y.M. Engku Ali Ahli/Member 11 Tn. Hj. Azizi bin Che Seman Ahli/Member 12 Tn. Hj. Jahaidi bin Harun Ahli/Member 12 Jabatan Syariah: Fungsi, Aktiviti Utama pada tahun 2018 dan Keutamaan Strategik pada tahun 2019 Shariah Department: Functions, Key Activities in 2018 and Strategic Priorities in 2019 Mekanisma tadbir urus Syariah yang mampan di Agrobank terus memainkan peranan penting dalam memacu penjanaan nilai dengan memastikan bahawa semua produk dan perkhidmatan diiktiraf dan sejajar dengan prinsip Syariah. Jabatan Syariah membekalkan sokongan fungsian merentasi semua aktiviti perbankan untuk memastikan pelaksanaan SGF secara menyeluruh, termasuk pembentukan dan pengurusan SC, selain berhubung dengan mereka bagi mendapatkan kelulusan produk dan perkhidmatan. Jabatan Syariah turut bekerjasama dengan lain-lain jabatan dan jawatankuasa berhubung isu-isu Syariah. Agrobank’s robust Shariah governance mechanism continues to play an integral part in driving value creation by ensuring that all the products and services are duly accredited and in line with Shariah principles. Providing cross-functional support for all Shariah banking activities, the Shariah Department ensures the implementation of a comprehensive SGF, including the formulation and management of the SC and liaising with them for product and transaction approvals. The Shariah Department also coordinates with the Bank’s various departments and committees on Shariah issues. LAPORAN TAHUNAN 2018 ANNUAL REPORT 137
  149. PENYATA TADBIR URUS SYARIAH STATEMENT ON SHARIAH GOVERNANCE Lain-lain peranan dan fungsi merangkumi : Other roles and functions include: •Meneliti pra-kelulusan produk, menilai isu-isu dan mengendalikan urusan pentadbiran dan kesetiausahaan berkaitan dengan SC. •Conduct pre-product approvals, appraise issues and undertake administrative as well as secretarial matters relating to the SC. •Melakukan penyelidikan Syariah dan memberikan khidmat nasihat serta rundingan berkenaan Syariah kepada pihak yang berkaitan, termasuk mereka yang terlibat dalam pembangunan produk, di samping menjalankan fungsi sokongan lain. 
 •Perform in-depth Shariah research and provide day-to-day Shariah advice and consultancy to relevant parties including those involved in the product development process as well as other supporting functions. •Penyelaras utama bagi mesyuarat, pengumpulan usul-usul, menyampaikan keputusan berkaitan Syariah kepada pihak berkepentingan yang relevan, serta berhubung rapat dengan SC untuk membincangkan isu-isu Syariah tertentu. 
 •Meningkatkan pemahaman dan kesedaran terhadap prinsip Syariah serta fungsinya dalam kalangan kakitangan Bank melalui latihan, program kesedaran serta perkongsian ilmu. 
 138 AGROBANK Mewujudkan budaya tadbir urus Syariah yang teguh di seluruh Bank terus menjadi fokus bagi tahun 2018. Agrobank menyedari hakikat bahawa mengubah tatacara dan pemikiran terhadap pematuhan Syariah mampu mewujudkan tahap kesedaran, motivasi dan kebertanggungjawaban yang lebih baik. Oleh itu, pemahaman mendalam berhubung risiko Syariah dan pematuhan Syariah adalah amat penting dalam usaha menginstitusikan budaya pematuhan Syariah. Sepanjang tahun ini, jabatan Syariah terus menjalankan program kejurulatihan berkaitan Syariah termasuk sesi halaqah selama sejam pada hari Jumaat untuk pegawai Syariah. Ini bertujuan membina pemahaman mereka mengenai fatwa dan piawaian yang dikeluarkan oleh Organisasi Perakaunan dan Pengauditan bagi Institusi Kewangan Islam (AAOIFI). Pemahaman yang lebih mendalam dan komprehensif tentang piawaian AAOIFI akan mendorong pegawai Syariah untuk memanfaatkan amalan terbaik antarabangsa dalam tadbir urus dan pematuhan Syariah. Adakalanya, sesi halaqah ini turut disertai oleh SC sebagai pembimbing. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Bagi meningkatkan pengetahuan dan kesedaran Syariah di kalangan kakitangan cawangan, antara inisiatif yang dijalankan pada tahun 2018 termasuklah program Keterlibatan Syariah di Cawangan (SBE). Program ini bertujuan untuk merapatkan hubungan antara Pegawai Syariah dan kakitangan cawangan melalui sesi bimbingan tentang perkara berkaitan Syariah dalam operasi perbankan Islam. Menerusi platform ini, pegawai-pegawai Syariah boleh menjawab pertanyaan dan kemusykilan tentang perkara berkaitan Syariah yang ditanyakan oleh kakitangan cawangan, selaku barisan pertahanan pertama bagi Bank. Dalam pada itu, Jabatan Syariah bersama wakil-wakil pematuhan dan risiko telah dilantik untuk memupuk budaya pematuhan di kalangan kakitangan Bank melalui Program Keterlibatan Tadbir Urus (GEP). Program ini bermatlamat untuk membiasakan kakitangan dengan perkara tadbir urus untuk dijadikan rujukan pengajaran pada masa depan. Bank telah melantik jabatan Syariah sebagai salah satu jabatan yang terlibat dalam memberi latihan kepada pegawai pengurusan kanan dari Tabung Pembangunan Pertanian Afghanistan (ADF) semasa kunjungan mereka ke Bank pada Mac 2018, di mana •Act as a central coordinator for meetings, compiling proposed papers, disseminating Shariah decisions to relevant stakeholders and engaging with the SC when seeking further deliberation on Shariah issues. •Elevate understanding and awareness of Shariah principles and its applications among Bank staff through trainings, awareness programmes and knowledge sharing. Creating a strong Shariah governance culture across the Bank continues to be the main focus in 2018. Agrobank is cognisant to the fact that changing behaviour and mind-set on Shariah compliance creates a sense of awareness, motivation, and accountability. To this effect, greater understanding of Shariah risk and Shariah compliance are of paramount importance in efforts to institutionalise a Shariah Compliant Culture. Throughout the year, the department continuously conduct coaching programmes on Shariah related matters including a one hour halaqah session on every Friday for Shariah officers. This was to develop their understanding on fatwas and standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). A deeper and more comprehensive understanding of AAOIFI’s standards amongst Shariah officers would enable them to adopt international best practices in Shariah governance and compliance. These halaqah sessions are occasionally joined by the SC for good guidance. Shariah Branch Engagement (SBE) programme was one of the initiatives conducted in 2018 for enhancement of Shariah knowledge and awareness among the staff at the branches. This programme was envisaged to close the gap between Shariah Officers and branch officers, where direct engagement and coaching sessions focusing on Shariah requirements with regards to Islamic banking operation were organised. Moreover, through this platform, Shariah officers were able to address queries and doubts on Shariah related issues from the front liners as the branch officers are the Bank’s first line of defence. Furthermore, the Shariah Department together with compliance and risk representatives had been appointed to inculcate the compliance culture among the Bank’s staff through Governance Engagement Programme (GEP). The goal of the programme was to familiarise the staff with governance matters as lessons learnt for future reference. The department had been appointed by the Bank as one of the participated departments to provide training to senior management officers from Afghanistan Agriculture Development Fund (ADF) during their visit to the Bank in March 2018, providing them with comprehensive review on Malaysia’s Shariah governance framework and challenges faced by the industry in implementing Shariah governance.
  150. jabatan Syariah telah mengulas secara komprehensif , tentang rangka kerja tadbir urus Syariah di Malaysia, dan cabaran-cabaran yang dihadapi oleh industri dalam melaksanakan tadbir urus Syariah. Peranan Jabatan Syariah di Agrobank tidak dihadkan kepada sekadar memastikan pematuhan tadbir urus Syariah. Ia turut merangkumi pemberian nasihat dan khidmat sokongan berkaitan semua urusan Syariah kepada pelbagai jabatan dan jawatankuasa. Peranan dan keupayaan Jabatan Syariah sebagai pengantara adalah penting bagi menyelaraskan pematuhan Syariah dalam perniagaan Bank, disamping turut menyokong operasi dan urusan seharian bagi pelbagai jabatan, termasuk membantu mengurangkan risiko dan membangunkan perniagaan. Antara inisiatif yang membekalkan khidmat sokongan kepada kakitangan Bank termasuk menambahbaik saluran khidmat nasihat iaitu e-mel Agrofiqh dan portal Soal Jawab Syariah. Melalui saluran Agrofiqh, kakitangan bank boleh mengajukan sebarang soalan berkaitan Syariah, yang akan disemak dan dijawab oleh Jabatan Syariah. Portal Soal Jawab Syariah pula boleh diakses oleh semua kakitangan, dan bertindak sebagai pusat pembelajaran dan maklumat bagi menggalakkan kakitangan untuk terus mendalami segala urusan berkaitan Syariah (isu berkaitan perbankan dan sebaliknya). Di bawah mandat yang diberikan, Jabatan Syariah telah menganjurkan program Ihya’ Ramadhan sepanjang bulan Ramadan, di mana beberapa program telah dijalankan seperti program Agrobank Bertadarus, Khatam Al-Quran, Iftar Jama’ie dan solat terawih di seluruh bank. Sebagai sebahagian daripada usaha untuk mengukuhkan pengetahuan kakitangan Bank berkaitan dengan pengetahuan asas al-Quran, jabatan ini dengan kerjasama Pusat Pembelajaran Al-Baghdadi (ALC) telah menganjurkan kelas asas al-Quran menggunakan teknik al-Baghdadi. Matlamat inisiatif ini adalah bertujuan memberi peluang kepada kakitangan untuk lebih mendalami Al-Quran tanpa mengira usia. Dalam pada itu, Tazkirah Mingguan diadakan di cawangancawangan bank yang bertujuan untuk meningkatkan nilai-nilai PATRIOT kakitangan dari sudut pandangan Syariah. Nota-nota tazkirah telah disampaikan secara mingguan kepada Pengurus Cawangan dan Penolong Pengurus Cawangan untuk dijadikan sebagai rujukan bagi sesi tazkirah semasa taklimat pagi di cawangan-cawangan. Untuk menggalakkan keseimbangan dalam gaya hidup, jabatan Syariah telah menjalankan lebih banyak aktiviti untuk mendorong interaksi, pendidikan, dan pembinaan berkelompok dalam kalangan kakitangannya. Ini termasuk aktiviti-aktiviti sukan, menanam pokok buah-buahan dan Tanggungjawab Sosial Korporat (CSR) bersama institusi Islam seperti surau dan badan kebajikan. Jabatan Syariah telah mengenal pasti beberapa bidang tumpuan yang akan diberikan keutamaan strategik pada 2019. Selain menumpukan fokus pada inisiatif-inisiatif baharu, keutamaan juga akan diberikan dalam menangani cabaran-cabaran sambil memanfaatkan peluang yang ada. Ringkasnya, bagi tahun 2019, keutamaan Bank terletak dalam usaha membina budaya Syariah yang kukuh merentasi seluruh Bank. The role of the Shariah Department at Agrobank goes beyond box-ticking to comply with Shariah governance. It extends to include advisory and support services to various departments and committees on all matters related to Shariah. In its role and capacity as a business partner, the Shariah Department becomes the crucial link between Shariah compliance and the Bank’s business while at the same time facilitating various departments in conducting their day-to-day business and operations including supporting business in risk mitigation and business development. A number of initiatives provide the necessary support service to the Bank’s staff including the enhancement of advisory channels namely agrofiqh and Soal Jawab Shariah. Through the agrofiqh channel, bank staff can pose any Shariah related questions, which will be reviewed and responded to by the Shariah Department. Accessible by all staff, the Soal jawab Syariah portal serves as a learning and information gateway that encourages continuous learning by staff in all matters related to Shariah (both bank and non-bank issues). During the month of Ramadan, the Shariah Department was mandated by the Bank to organise an Ihya’ Ramadhan programme where several programmes were conducted such as Agrobank Bertadarus, Khatam Al-Qur’an programme, Iftar Jama’ie and bank-wide terawih prayers. As part of the effort to strengthen the knowledge of the Bank’s staff pertaining to the basic knowledge of Qur’an, the department together with AlBaghdadi Learning Centre (ALC) had organised the basic Quranic class using al-Baghdadi techniques. This initiative’s goal was to provide opportunities for the Bank’s staff to learn more about the Qur’an regardless of their age. Additionally, implementation of Tazkirah Mingguan at branches was targeted to enhance the staff’s PATRIOT values according to the Shariah point of view. The tazkirah notes were escalated to the Branch Managers and Assistant Branch Manager for them to conduct a tazkirah session during the branches’ weekly morning briefing. In striving to achieve lifestyle balance, the department has conducted more outdoor engagement activities that drive interaction, education and team building among the staff. These include activities such as sport, fruit tree planting and Corporate Social Responsibility (CSR) with Islamic institutions such as surau and welfare institutions. Within its function, the Shariah Department has identified several strategic priorities that represent areas of focus for 2019. These priorities will not only focus on new initiatives but address challenges and build upon opportunities. As a summary, continuously creating a strong Shariah culture across the Bank will be the main focus in 2019. LAPORAN TAHUNAN 2018 ANNUAL REPORT 139
  151. PENYATA TADBIR URUS SYARIAH STATEMENT ON SHARIAH GOVERNANCE Zakat Zakat Pada Julai 2018 , Jabatan Syariah telah dilantik sebagai sekretariat kepada Jawatankuasa Pengagihan Bank, di mana dahulunya, fungsi ini dijalankan oleh Jabatan Komunikasi Strategik (SCD) Bank. Sekretariat kepada Jawatankuasa Pengagihan Bank bertanggungjawab untuk memastikan kepatuhan terhadap Garis Panduan Pengendalian Zakat dalam memproses, menilai, dan mengagihkan zakat kepada golongan asnaf yang berkelayakan. The Shariah Department has been appointed as secretariat to the Bank’s Distribution Committee in July 2018, where previously this function was handled by the Bank’s Strategic Communication Department (SCD). The secretariat of the Bank’s Distribution Committee is responsible to ensure that procedures related to process, evaluation and distribution of zakat allocation to eligible asnaf are based on Garis Panduan Pengendalian Zakat. Bagi peruntukan zakat kepada negeri-negeri di Malaysia, pihak Bank mengambilkira nisbah aset pembiayaan bagi setiap negeri. Oleh yang demikian, zakat yang diagihkan kepada setiap pihak berkuasa agama negeri adalah berlainan bergantung kepada aset yang dimiliki oleh setiap negeri. Jawatankuasa zakat dalaman bagi tujuan pengagihan zakat telah ditubuhkan untuk memastikan semakan dan imbangan, di mana setiap laporan pengagihan zakat dibentangkan kepada SC untuk pemakluman dan ditambahbaik. 140 AGROBANK Pada tahun 2018, bank telah mengagihkan zakat bernilai RM2.6 juta, yang merangkumi zakat dari tahun 2016 dan tahun 2017. Zakat tersebut disampaikan kepada pemohon berkelayakan termasuk individu dan organisasi yang dipilih oleh Bank. Antara penerimanya termasuk pelajar, penduduk atau rumah anak yatim yang dikategorikan sebagai asnaf, keluarga di bawah Program Perumahan Rakyat (PPR) di Lembah Klang, badan-badan amal, masjid, dan pihak berkuasa zakat, dan sebagainya. Ringkasan taburan peruntukan zakat ditunjukkan dalam jadual di bawah ini: For allocation of zakat by states in Malaysia, the method used by the bank is by considering the ratio of financing assets from every state, and therefore the zakat distributed to each state religious authority varied depending on assets owned by each state. Internal zakat committee for zakat distribution has been set-up to conduct check and balance, with each zakat distribution reports notified to the SC for any improvement and recommendations. In year 2018, the bank had successfully distributed RM2.6 million of zakat, consisting zakat from the year 2016 and 2017 zakat. The zakat was paid to eligible applicants including individual and organisations selected by the Bank. Among the recipients were students, residents or orphanages that were categorised under asnaf, families from Program Perumahan Rakyat (PPR) in Klang Valley, charitable bodies, mosques, and zakat authorities etc. Brief distribution of the zakat allocation is tabulated as below: Kategori Asnaf Asnaf Categories Jumlah (RM) Amount (RM) 710,770.00 Fakir Miskin/Fakir Miskin 1,529,828.49 Fi Sabilillah/Fi Sabilillah Gharimin/Gharimin 87,347.90 Muallaf/Muallaf 10,500.00 262,000.00 Pihak Berkuasa Zakat dalam Negeri/Zakat Authority of States 2,600,446.39 TOTAL/JUMLAH Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Pendapatan Tidak Halal Non-halal Income Jabatan Syariah turut bertanggungjawab untuk menguruskan pelupusan pendapatan tidak halal untuk tujuan spesifik, seperti yang dinyatakan dalam Polisi Penyucian Pendapatan Tidak Halal, atau untuk mana-mana tujuan spesifik lain yang ditetapkan oleh SC Bank. The Shariah Department was also responsible for managing the disposal of non-halal income for specific purpose as stated in the policy on Purification of Non-halal Income or for any other specific purpose as decided by the SC of the Bank. Risiko Syariah: Fungsi, Aktiviti Utama pada tahun 2018 dan Keutamaan Strategik pada tahun 2019 Tadbir urus Syariah yang mantap dan komprehensif diperkukuhkan lagi dengan menggunakan rangka kerja pengurusan risiko bagi ketidakpatuhan Syariah, di mana pengurusan risiko Syariah membentuk sebahagian daripada rangka kerja risiko bersepadu bagi Bank. Fungsi utama pengurusan risiko Syariah adalah mengenal pasti, mengukur, mengawal, mengurangkan, memantau dan melaporkan Shariah Risk: Functions, Key Activities in 2018 and Strategic Priorities in 2019 Sound and comprehensive Shariah governance is further reinforced with the adoption of risk management framework for Shariah non-compliance where Shariah risk management forms part of the Bank’s integrated risk management framework. The main function of Shariah risk is to identify, measure, control, mitigate, monitor and report Shariah as well as non-Shariah risks associated with the Bank’s business and operations, in a structured and systematic manner, as per requirement under
  152. risiko-risiko Syariah dan bukan Syariah yang berkaitan dengan perniagaan dan operasi Bank , secara teratur dan sistematik, selaras dengan keperluan SGF. Untuk menerapkan budaya Ketidakpatuhan Syariah Sifar merentasi seluruh Bank, profil risiko Syariah dan keberkesanan kawalan sedia ada dipantau secara berterusan, untuk membantu pengurusan risiko Syariah memastikan kecekapan dan keberkesanan dalam menguruskan risiko ketidakpatuhan Syariah. Oleh yang demikian, pengurusan risiko Syariah adalah bertanggungjawab untuk membangunkan, mengekalkan dan menambahbaik rangka kerja, polisi, prosedur dan pelaksanaan Pengurusan Risiko Syariah, termasuk melaporkan risiko ketidakpatuhan Syariah kepada Jawatankuasa Syariah (SC), Jawatankuasa Pengurusan Risiko Operasi (ORMC), Jawatankuasa Pengurusan Risiko (MRC), Jawatankuasa Lembaga Pengurusan Risiko (BRMC), dan Lembaga Pengarah. Tanggungjawab lain termasuk membangunkan dan mengambil langkah-langkah untuk meningkatkan kesedaran terhadap risiko Syariah di dalam Bank, memastikan penyucian pendapatan tidak halal yang tidak memenuhi syarat Syariah oleh SC Bank, serta menyediakan langkah pengurangan dan pelan tindakan bagi mengelakkan perulangan insiden-insiden yang boleh menjanakan pendapatan tidak halal. Pengurusan risiko Syariah juga memastikan sebarang insiden ketidakpatuhan segera dilaporkan, ditangani, dan dibetulkan. Ini bukan sahaja akan memastikan kesucian pendapatan yang diperolehi, tetapi akan turut memastikan kekukuhan sistem dan kawalan bagi mengelakkan ketidakpatuhan terhadap undangundang dan prinsip Syariah. Untuk itu, sebarang urus niaga yang disyaki tidak mematuhi Syariah, akan dikemukakan kepada SC untuk dibincangkan dan diputuskan jika sebarang syarat Syariah telah dilanggar. Pengurusan risiko Syariah akan memantau semua insiden serta status pembetulannya bagi memastikan pelaporan kepada SC, Lembaga Pengarah dan 
BNM dilakukan tepat pada masanya. Seiring dengan pengawalseliaan dan amalan terbaik industri, dua polisi dan garis panduan risiko Syariah telah disemak semula pada tahun 2018, Iaitu Garis Panduan Penyucian Pendapatan Tidak Halal (MO-190) dan Garis Panduan Pengurusan Perkara Tidak Patuh Syariah (MO-249). Penyemakan semula Garis Panduan Penyucian Pendapatan Tidak Halal (MO-190) telah dijalankan untuk menggabungkan manual yang berasingan kepada Polisi dan Garis Panduan, iaitu Polisi Penyucian Pendapatan Tidak Halal (MO-190/1) dan Garis Panduan Penyucian Pendapatan Tidak Halal (MO-190/2). Di bawah resolusi SC, dan Rangka Kerja Tadbir Urus Syariah BNM, mana-mana pendapatan yang dijana daripada urus niaga yang tidak patuh Syariah adalah haram, tercemar, dan perlu disucikan samada dengan mengembalikannya kepada pelanggan atau menyalurkannya untuk tujuan amal. Bagi proses penyucian ini, akaun-akaun Lejar Umum (GL) berasingan dirangka untuk mengumpulkan pendapatan tercemar tersebut sebelum diagihkan kepada badan-badan amal. the SGF. Through the continuous monitoring of Shariah risk profiles and the effectiveness of existing controls, Shariah risk facilitates the efficient and effective management of Shariah non-compliance risks and work towards further institutionalising a Zero Shariah Non-Compliance culture across the Bank. Hence, Shariah risk is responsible for the development, maintenance and enhancement of the Shariah Risk Management framework, policies and procedures and its implementation, including reporting Shariah non-compliance risk to the Shariah Committee (SC), Operational Risk Management Committee (ORMC), Management Risk Committee (MRC), Board Risk Management Committee (BRMC), and the Board of Directors. Other mandates include the development and implementation of measures to elevate Shariah risk awareness within the Bank, ensure the purification of non-halal income due to non-compliance with Shariah requirements as guided by the Bank’s SC and provide mitigating measures as well as action plans to avoid the recurrence of event(s) that could potentially result in non-halal income. The Shariah risk function also ensures that any incident of Shariah non-compliance is immediately reported, addressed and rectified. This will not only ensure the purity of the income earned but more importantly to ascertain that adequate systems and controls are in place in assuring that non-compliance with Shariah rules and principles can be averted. Hence, any transaction suspected as Shariah non-compliant will be escalated to the SC for deliberation and decision whether any Shariah requirements have been breached. Shariah risk will track on all incidences and the rectification status to ensure timely reporting to the SC, Board and BNM. During 2018, two Shariah risk policy and guidelines were revised in line with regulatory requirements and industry best practices, which included Purification of Non-Halal Income (MO-190) and Managing Shariah Non-Compliance Events (MO-249). The revision of Purification of Non-Halal Income Guidelines (MO-190) was made to incorporate the segregation of the manual into Policy and Guidelines i.e. Policy on Purification of Non-Halal Income (MO-190/1) and Purification of Non-Halal Income Guidelines (MO-190/2). In the SC resolution and BNM’s Shariah Governance Framework, any incomes generated from Shariah non-compliance transactions are unlawful, tainted and needs to be purified e.g. to be returned to the customers or to be channelled to charity. As for the purification process, there are separate General Ledger (GL) accounts created for accruing the tainted income before disbursing to charitable bodies such as Non-Compliance Charity Payable. LAPORAN TAHUNAN 2018 ANNUAL REPORT 141
  153. PENYATA TADBIR URUS SYARIAH STATEMENT ON SHARIAH GOVERNANCE Memandangkan risiko ketidakpatuhan Syariah turut merangkumi risiko operasi , pengurusan risiko Syariah telah diterapkan ke dalam Rangka Kerja Pengurusan Risiko Operasi (ORM) Bank. Berdasarkan ini, Bank telah membangunkan rangka kerja ORM komprehensif, yang meliputi Kesedaran Kendiri Kawalan Risiko Syariah (SRCSA) dan Penunjuk Risiko Utama (KRI). KRI bagi risiko ketidakpatuhan Syariah diterapkan ke dalam proses perniagaan bagi memudahkan pemantauan dan penjejakan risiko utama dari semasa ke semasa, menggunakan Metrik dan Penilaian Risiko berikut: Nilai Ambang Threshold Minimum 1 Aktiviti SNC* Sebenar/Minimum 1 Actual SNC* event Minimum 1 Aktiviti SNC Berpotensi/Minimum 1 Potential SNC event Sifar Aktiviti SNC/Zero SNC event In view that Shariah non-compliance risk is in itself an operational risk, Shariah risk forms part of the Bank’s Operational Risk Management (ORM) Framework. Towards this end, the Bank has developed a comprehensive ORM framework comprising of Shariah Risk Control Self-Awareness (SRCSA) and Key Risk Indicator (KRI). The KRIs of Shariah non-compliance risks are built into the business processes to facilitate the monitoring and tracking of key risks over time using the following Risk Metrics and Assessment: Penilaian Assessment AWAS/CAUTION AMARAN/ALERT MEMUASKAN/SATISFACTORY Nota: SNC merujuk kepada “Ketidakpatuhan Syariah” Note: SNC refers to “Shariah Non-compliance” Pendekatan proaktif SRCSA memerlukan pemilik proses menilaikan sendiri risiko Syariah dalam Unit Perniagaan dan Unit Sokongan masing-masing, dan melaksanakan kawalan bagi mengurangkan risiko tersebut. Inisiatif lain yang menyokong budaya Ketidakpatuhan Syariah Sifar merangkumi usaha membina kemampuan dan keupayaan untuk melaksanakan polisi pengurusan risiko yang dikeluarkan oleh BNM. 142 AGROBANK Pada tahun 2019, Bank merancang untuk mengukuhkan keupayaan SRCSA dalam mengenal pasti dan menilai risiko ketidakpatuhan Syariah dalam operasi dan aktiviti perniagaan Bank, serta keberkesanan kawalan. Usaha juga akan diteruskan untuk memperbaiki keseluruhan penjejakan dan pelaporan pendapatan yang diperolehi daripada aktiviti ketidakpatuhan Syariah, dan aset bukan Syariah. Keutamaan strategik lain bagi tahun 2019 termasuk menyemak semula Rangka Kerja Pengurusan Risiko Syariah (MO-173/4), dan membangunkan profil risiko Syariah bagi Bank. Pengurusan risiko Syariah juga akan terus mengadakan program kesedaran untuk meningkatkan pemahaman tentang pengurusan risiko Syariah dalam perbankan Islam. Semakan Syariah: Fungsi, Aktiviti Utama pada tahun 2018 dan Keutamaan Strategik pada tahun 2019 Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Semakan Syariah memastikan aktiviti dan operasi yang dijalankan oleh Agrobank tidak melanggar prinsip Syariah. Ringkasnya, semakan Syariah merupakan semakan menyeluruh untuk meningkatkan kredibiliti aktiviti Bank, dengan memastikan pematuhan Syariah dalam penyediaan penyata kewangan, kontrak, perjanjian, urus niaga dan proses pembangunan produk dari mula hingga akhir. Bagi mencapai matlamat ini, semakan Syariah menjalankan pemeriksaan di dalam dan di luar premis, serta penilaian bebas untuk memastikan pematuhan terhadap peraturan dan prinsip Syariah dalam aktiviti dan operasi dari mula hingga akhir, bagi unit perniagaan dan unit sokongan di dalam Bank. Semua pemerhatian yang diperoleh dari aktiviti semakan Syariah, termasuk insiden ketidakpatuhan Syariah, akan didokumenkan dan dimasukkan dalam Laporan Semakan Syariah, yang kemudiannya dibentangkan kepada pihak Pengurusan, SC dan seterusnya kepada Lembaga Pengarah untuk dibincangkan dan dimaklumkan. Laporan turut mengandungi saranan langkah dan tindakan pembetulan bagi menangani ketidakpatuhan Syariah, serta mekanisme kawalan untuk mengelakkan sebarang perulangan. The proactive approach of SRCSA involves Business Units and Support Units as process owners to assess the Shariah risks and implement control to mitigate those risks. Other key initiative that support Zero Shariah Non-Compliance culture includes building capability and capacity to respond to policy documents issued by BNM in the areas of risk management. In 2019, the Bank expects to strengthen SRCSA of identifying and assessing Shariah non-compliance risks in the Bank’s business operations and activities and the effectiveness of controls. It should also continue to improve the overall tracking and reporting of income from Shariah non-compliant events and non-Shariah asset. Other strategic priorities for 2019 include the revision of Shariah Risk Management Framework (MO-173/4) and to establish a Shariah risk profiling of the Bank. Shariah risk will also continue to conduct awareness programmes with a view of enhancing the understanding of Shariah risk management in Islamic banking. Shariah Review: Functions, Key Activities in 2018 and Strategic Priorities in 2019 Shariah Review ensures that the activities and operations carried out by Agrobank do not contravene with the Shariah. In short, the Shariah review is a comprehensive review of not only the financial statements but also of the contracts, agreements, transactions and end-to-end product development process, to ensure Shariah compliance and to add credibility to the Bank’s activities. To this effect, Shariah review involves the off-site and on-site examinations and independent evaluations of the endto-end activities and operations of the business and support units within the Bank with regards to their level of compliance with Shariah rules and principles. All observations arising from Shariah review exercises including incidence of Shariah non-compliance, are documented and highlighted in the Shariah Review Report, which are then tabled to the Management, SC and subsequently to the Board for deliberation and notification. The report also contains recommended rectification measures and actions that need to be taken to resolve Shariah non-compliance as well as control mechanisms to avoid any recurrence.
  154. Bersandarkan pengurusan risiko yang semakin kukuh , Agrobank telah menjalankan semakan Syariah ke atas rangkaian cawangan, kios dan ibu pejabat bank. Objektifnya adalah untuk mengenal pasti sebarang kekurangan dalam kawalan atau proses yang boleh menyebabkan insiden ketidakpatuhan Syariah, selain memastikan keseluruhan pematuhan Syariah dalam operasi Bank adalah selari dengan garis panduan Syariah yang ditetapkan. With the strengthening of Shariah risk management capabilities, Agrobank successfully conducted Shariah review exercises across branches, kiosks and departments. The objectives were to consciously identify any lapses in controls or processes that could lead to Shariah non-compliant incidents as well as to ensure the overall Shariah compliance of the Bank’s operation and their alignment with the stipulated Shariah guidelines. Pada tahun 2018, Seksyen Semakan Syariah telah menyertai ‘Governance Engagement Program’ (GEP 2018), di mana Semakan Syariah bekerjasama dengan Jabatan Syariah, Jabatan Pengurusan Cawangan dan juga Jabatan AML/CFT, untuk menekankan kepentingan budaya pematuhan di kalangan semua Penolong Pengurus Cawangan. Program lain yang melibatkan kesedaran terhadap Syariah adalah Program Integriti dan Pematuhan (ICAP 2018), di mana Semakan Syariah telah membantu menguruskan upacara penutup dan Forum Kesedaran bagi program ini. In 2018, the Shariah Review was involved in the Governance Engagement Programme (GEP’2018), in which the Shariah Review had collaborated with the Shariah Department, Branch Management Department and also AML/CFT Department to emphasize a compliance culture amongst all Assistance Branch Managers. Another significant programme which involved Shariah awareness is Integrity and Compliance Programme (ICAP 2018) where Shariah Review specifically contributed in organizing the closing ceremony and Awareness Forum. Bagi tahun berikutnya, Bank akan terus memperkukuhkan kesedaran terhadap Syariah, dan memantau aktivitinya untuk memastikan Pematuhan Syariah secara 100%. Usaha ini termasuk memperbaiki dan memperluaskan liputan bagi kunjungan cawangan dengan menjalankan semakan fizikal melalui pendekatan baharu, juga semakan dalam talian. Untuk menggalakkan dan mengekalkan budaya pematuhan Syariah yang kukuh di dalam Bank, usaha kami pada tahun 2019 akan terus tertumpu pada inisiatif-inisiatif yang melibatkan kakitangan. Moving forward, the Bank will continue to strengthen its Shariah awareness and review activities to maintain the 100% Shariah Compliance, including enhancing and broadening the coverage of branch visitation through the conduct of both physical review with a new approach and desktop review. In promoting and maintaining a strong Shariah compliance culture within the Bank, engagement initiatives with all staff remains as our focus in 2019. Audit Syariah: Fungsi, Aktiviti Utama pada tahun 2018 dan Keutamaan Strategik pada tahun 2019 Shariah Audit: Functions, Key Activities in 2018 and Strategic Priorities in 2019 Sebagai salah satu tunggak utama SGF, Audit Syariah menyediakan penilaian bebas dan jaminan objektif yang direka bentuk bagi menambah nilai dan menambah baik tahap pematuhan dalam operasi perniagaan Agrobank, serta dengan objektif utama memastikan kewujudan sistem kawalan Syariah dalaman yang kukuh dan berkesan. Justeru itu, audit Syariah menjalankan khidmat nilai tambah secara berkala bagi meneliti aktiviti operasi, laporan kewangan serta ketepatan polisi dan proses dan prosedur Bank. Shariah audit, which is a key pillar of the SGF, provides an independent assessment and objective assurance designed to add value and improve the degree of compliance in relation to Agrobank’s business operations, with the main objective of ensuring a sound and effective internal Shariah control system is in place. Hence, Shariah audit performs value-added services that examine operational activities, financial reporting, and the adequacy of policies and procedures of the Bank on a periodic basis. Bagi menilai sama ada sistem kawalan dalaman pematuhan Syariah yang kukuh dan berkesan sudah pun dilaksanakan, audit Syariah bertanggungjawab membangunkan program ataupun pelan audit dalaman yang menyeluruh. Ia meliputi objektif, skop, tugasan kakitangan, persampelan, kawalan dan tempoh, di samping mewujudkan proses, polisi dan prosedur audit yang sewajarnya. In assessing whether a sound and effective internal control system for Shariah compliance has been implemented, Shariah audit is responsible for developing a comprehensive internal audit programme or plan that include objectives, scope, personnel assignment, sampling, control and duration as well as the establishment of proper audit processes, policies and procedures. Bagi memastikan proses pematuhan penuh dengan garis panduan Syariah, audit Syariah menjalankan audit Syariah yang sudah dirancang ke atas tadbir urus, pengurusan risiko, kawalan dan pematuhan pada peraturan serta prinsip Syariah pada tahun dalam kajian. Apabila sesuai, saranan penambahbaikan dibuat dan seterusnya dilaporkan kepada BAC dan SC. Pada tahun 2019, keutamaan strategik bagi fungsi audit Syariah meliputi penambahbaikan instrumen penilaian bagi semakan tematik dan terhad dengan memanfaatkan metodologi berasaskan risiko Syariah, di samping terus memupuk budaya pematuhan Syariah cemerlang dan meningkatkan pengetahuan Syariah di kalangan kakitangan Bank. Audit Syariah merancang menyediakan khidmat nasihat dan perundingan bagi rumusan tindakan yang sesuai berkenaan isu Syariah, di mana kekurangan yang dikenal pasti berhubung pematuhan Syariah dianggap sebagai ilmu yang dapat diambil manfaatnya. In ensuring full compliance with shariah requirement, Shariah audit conducted planned Shariah audit assignments and evaluations on the governance, risk management, controls and compliance with Shariah rules and principles during the year under review. Where appropriate, recommendations for improvements and enhancements were made and thereafter reported to the BAC and SC. Strategic priorities for Shariah audit functions in 2019 include to enhance assessments tools for thematic and limited review by utilising Shariah risk based methodology, to further inculcate a strong Shariah compliance culture and enhance Shariah knowledge among bank staff. Shariah audit plans to provide consultation and advisory services in devising appropriate course of action for Shariah issues, where identified deficiencies pertaining to Shariah compliance are regarded as lesson-learnt. LAPORAN TAHUNAN 2018 ANNUAL REPORT 143
  155. Fakta-fakta tentang Nanas Harga nanas mencatatkan trend menaik sepanjang 10 tahun yang lepas . Umumnya, harga nanas di pasaran kekal stabil. Harga nanas adalah berbeza mengikut jenis nanas. Berbanding jenis lain, nanas jenis MD2 berharga paling tinggi. Nanas jenis MD2 dari Malaysia dieksport ke lebih 13 negara termasuk Oman, Iran, Emiriah Arab Bersatu, Turki, Kuwait, China, Singapura dan Korea Selatan. Kawasan tanaman dan pengeluaran di Malaysia merangkumi 14,698 hektar, dengan pengeluaran 427,680 mt nanas pada tahun 2015 tertumpu di Batu Pahat (Johor), Kota Samarahan (Sarawak) dan Tuaran (Sabah). Disokong oleh dasar kerajaan seperti Rancangan Malaysia Ke-11, Dasar Agromakanan Negara (NAP 2011-2020), Bajet Malaysia 2017 dan Bidang Ekonomi Utama Negara (2010-2020). Nanas segar, nanas dalam tin, dan jus nanas semakin popular di dalam dan di luar negara. Malaysia pula terus membina reputasi sebagai salah satu pengeluar nanas terbaik dunia dengan kualiti eksport yang tinggi. Sejak beberapa tahun kebelakangan ini, trend produktiviti dalam penanaman nanas telah meningkat. Ini disebabkan penanaman nanas jenis baharu seperti MD2 yang mempunyai ciri-ciri lebih hebat seperti rasa yang lebih manis, mampu bertahan lebih lama dalam tempoh pengendalian selepas dituai, hayat simpan yang lebih lama, dan kekonsistenan dalam keranuman buah. Bagi memenuhi
  156. Pengeluaran Nanas (tan) Pineapple Production (tonnes) 2017 2016 391,714 340,722 Agrobank menawarkan rangkaian produk pembiayaan yang memenuhi keperluan dan tujuan penanaman nanas. Ini merangkumi pembiayaan mikro (MUS1M-i), Pembiayaan Berjangka, Kemudahan Pembiayaan Modal Kerja-i (Tawarruq), Tabung Untuk Makanan (3F) dan Machinery & Equipment Financing-i (MAEF-i). Pengeluaran Nanas (Eksport) (tan) Pineapple Production (Export)(tonnes) Fresh, canned and juiced, the popularity of pineapples are on the rise locally and globally, and Malaysia is steadily building its reputation as one of the best pineapple producers in the 2017 2016 world, due to the quality of the fruits exported. The productivity trend of pineapple cultivation has improved in recent years owing to the planting of new pineapple varieties such as the 22,456 22,470 MD2 variety which has superior quality traits in terms of sweeter taste, durability during post-harvest handling, longer shelf life, and consistency in fruit ripeness. It is estimated that at least another 3,000 ha of land is needed to grow MD2 pineapples in order to meet the increase in demand of domestic and overseas markets. As the fruit has high export demand, Kawasan Bertanam (000 hektar) Planted Areas (000 hectares) the challenge for local pineapple cultivators is to ensure high standards of produce and handling in order to meet strict quality-control requirements of certain overseas markets. permintaan pasaran domestik dan luar negara yang semakin meningkat, sekurangkurangnya 3,000 hektar tanah diperlukan untuk menanam nanas MD2. Memandangkan permintaan eksport yang tinggi bagi nanas, penanam nanas tempatan harus memastikan standard pengeluaran dan pengendalian yang tinggi, bagi memenuhi keperluan kawalan kualiti yang ketat oleh pasaran luar negara Agrobank offers a range of financing products suitable for pineapple cultivation, tertentu. depending on needs and purpose. These range from micro financing (MUS1M-i), Term Financing, Working-capital-i (Tawarruq), Fund for Food (3F) and even Machinery & Equipment Financing-i (MAEF-i). 2017 2016 13.1 12.9 Sumber: Jabatan Statistik Malaysia Source: Department of Statistics Malaysia
  157. PINEAPPLE Fakta-fakta tentang Nanas FACTS • The price of pineapple has recorded an increasing trend for theyang lastlepas. 10 years. Harga nanas mencatatkan trend menaik sepanjang 10 tahun • Inkekal general, the nanas pineapple price has remained stable in Umumnya, harga nanas di pasaran stabil. Harga adalah berbeza mengikut jenis nanas. Berbandingthe jenismarket. lain, nanas jenis MD2 berharga paling tinggi. The price varies according to the variety. MD2 variety fetches the highest price as compared to Nanas jenis MD2 dari Malaysia dieksport ke lebih 13 negara termasuk Oman, others. Iran, Emiriah Arab Bersatu, Turki, Kuwait, China, Singapura dan Korea Selatan. • Malaysia’s pineapples are exported to more Kawasan tanaman dan pengeluaranMD2 di Malaysia merangkumi 14,698 hektar, dengan pengeluaran 427,680 nanas pada tahun 2015 tertumpu di Batu than 13mtcountries including Oman, Iran, United Arab Pahat (Johor), Kota Samarahan (Sarawak) dan Tuaran (Sabah). Emirates, Turkey, Kuwait, China, Singapore and South Korea. Disokong oleh dasar kerajaan seperti Rancangan Malaysia Ke-11, Dasar Agromakanan Negara (NAP 2011-2020), Bajet Malaysia 2017 dan Bidang Ekonomi Utama Negara (2010-2020). • Pineapple planted area in Malaysia is 14,698 hectares with production of 427,680 mt of pineapples in year 2015, mainly in Batu Pahat (Johor), Kota Samarahan (Sarawak) and Tuaran (Sabah). • Supported by the government policy such as 11th Malaysian Plan, National Agricultural Food Policy (NAP 2011-2020), Malaysian Budget 2017 and National Key Economic Areas (2010-2020). Nanas segar, nanas dalam tin, dan jus nanas semakin popular di dalam dan di luar negara. Malaysia pula terus membina reputasi sebagai salah satu pengeluar nanas terbaik dunia dengan kualiti eksport yang tinggi. Sejak beberapa tahun kebelakangan ini, trend produktiviti dalam penanaman nanas telah meningkat. Ini disebabkan penanaman nanas jenis baharu seperti MD2 yang mempunyai ciri-ciri lebih hebat seperti rasa yang lebih manis, mampu bertahan lebih lama dalam tempoh pengendalian selepas dituai, hayat simpan yang lebih lama, dan kekonsistenan dalam keranuman buah. Bagi memenuhi
  158. Pengeluaran Nanas (tan) Pineapple Production (tonnes) 2017 2016 391,714 340,722 Pengeluaran Nanas (Eksport) (tan) Pineapple Production (Export)(tonnes) Fresh, canned and juiced, the popularity of pineapples are on the rise locally and globally, and Malaysia is steadily building its reputation as one of the best pineapple producers in the 2017 2016 world, due to the quality of the fruits exported. The productivity trend of pineapple cultivation has improved in recent years owing to the planting of new pineapple varieties such as the 22,456 22,470 MD2 variety which has superior quality traits in terms of sweeter taste, durability during post-harvest handling, longer shelf life, and consistency in fruit ripeness. It is estimated that at least another 3,000 ha of land is needed to grow MD2 pineapples in order to meet the increase in demand of domestic and overseas markets. As the fruit has high export demand, Kawasan Bertanam (000 hektar) Planted Areas (000 hectares) the challenge for local pineapple cultivators is to ensure high standards of produce and handling in order to meet strict quality-control requirements of certain overseas markets. 2017 2016 13.1 12.9 Agrobank offers a range of financing products suitable for pineapple cultivation, depending on needs and purpose. These range from micro financing (MUS1M-i), Term Financing, Working-capital-i (Tawarruq), Fund for Food (3F) and even Machinery & Equipment Financing-i (MAEF-i). Sumber: Jabatan Statistik Malaysia Source: Department of Statistics Malaysia
  159. PROFIL JAWATANKUASA PENGURUSAN MANAGEMENT COMMITTEE ’S PROFILES SYED ALWI MOHAMED SULTAN Presiden/Ketua Pegawai Eksekutif President/Chief Executive Officer Tarikh dilantik/Date appointed: 2 April/April 2018 Tanggungjawab/Responsibilities: Pengukuhan Reputasi Bank/Positioning of the Bank: Memposisikan Agrobank sebagai sebuah bank Islam premier dengan tumpuan utama kepada pembiayaan berasaskan pertanian, menyediakan rangkaian penuh perkhidmatan kewangan yang mematuhi Syariah menerusi penyelarasan semua proses dan operasi Bank bagi menawarkan perkhidmatan pelanggan yang terbaik. To position Agrobank as the premier Islamic bank with a focus on agriculture based financing and to offer a full suite of Shariah compliant financial solutions while ensuring processes and operations are aligned to offer an exceptional customer service offering. Perancangan perniagaan strategik demi pertumbuhan yang mantap/Strategic business planning for establishing high growth agenda: Membangunkan strategi korporat dan perniagaan Bank bagi mencapai agenda pertumbuhan yang kukuh serta memberi kesan positif kepada ekonomi. To develop corporate and business strategies to achieve a high growth agenda for the bank that will have a positive impact to the economy. Kelayakan/Qualifications: •Ijazah Sarjana Pentadbiran Perniagaan (Kewangan Islam), Universiti Islam Antarabangsa Malaysia (UIAM) Master of Business Administration (Islamic Finance), International Islamic University Malaysia (IIUM) •Ijazah Sarjana Muda Perakaunan, Universiti Islam Antarabangsa Malaysia Bachelor of Accounting, International Islamic University Malaysia 146 AGROBANK Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2017 2018 03 2017 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2017 2018 05 2017 2018 Financial Statement Maklumat Tambahan 06 Additional Information Pengalaman/Experiences: •Naib Presiden Eksekutif, Perancangan Strategik, Bank Muamalat Malaysia Berhad Executive Vice President, Strategic Planning, Bank Muamalat Malaysia Berhad •Pengarah Urusan, Ketua Perbankan Islam Serantau, Asia Pasifik, BNP Paribas Malaysia Managing Director, Regional Head of Islamic Banking, Asia Pacific, BNP Paribas Malaysia •Pengarah, Pengasalan Islam, Standard Chartered Saadiq Berhad, Malaysia Director, Islamic Origination, Standard Chartered Saadiq Berhad, Malaysia •Naib Presiden, Ketua Wilayah, Perbankan Korporat Asia, The Islamic Bank of Asia Limited, Singapore Vice President, Regional Head, Corporate Banking-Asia, The Islamic Bank of Asia Limited, Singapore Melaksanakan strategi pertumbuhan Bank dan mencapai sasaran pasaran/Effectively implement the Bank’s growth strategy and achieve market leadership: Merangka visi, misi dan objektif strategik ke arah menjadikan Agrobank sebagai bank pembangunan Islam yang unggul, menawarkan pulangan yang mampan melalui amalan etika dan nilai berasaskan kelestarian alam sekitar, pembangunan masyarakat dan komuniti sekeliling. Shape the Bank’s vision, mission and strategic objectives towards realising its ambition of becoming a premier Islamic development bank that offers sustainable returns through ethical and value based practices that protects the environment, enriches the society and communities. Menyediakan kepimpinan dinamik dan melahirkan kakitangan bermotivasi tinggi dan berorientasikan prestasi/Provide dynamic leadership and develop a highly motivated performance oriented team: Mencetus perubahan dengan mempromosikan budaya, ideologi dan nilai yang disepakati dan membangunkan pasukan bank yang merealisasikan budaya berorientasikan prestasi. Lead the change by promoting common culture, ideology and values that will develop and retain high growth teams and ultimately foster a performance oriented culture. Mengurus persekitaran luaran/Manage the external environment: Mewujudkan dan mengekalkan hubungan yang efektif dengan pengawal selia, institusi dan pemimpin dalam perkhidmatan kewangan untuk mengukuhkan penjenamaan Bank. Memastikan pulangan Bank bersesuaian dengan inisiatif CSR (Tanggungjawab Sosial Korporat)bagi mempromosikan imej Bank kepada orang ramai sebagai organisasi korporat berasaskan nilai. Establish and maintain effective relationships with regulators, institutions and leaders in the financial services to strengthen the Bank’s branding. Ensuring that the Bank’s returns go hand in hand with CSR (Corporate Social Responsibility) initiatives in order to uphold the Bank’s image to the public as a value-based corporate organization.
  160. LAPORAN TAHUNAN 2018 ANNUAL REPORT 147
  161. PROFIL JAWATANKUASA PENGURUSAN MANAGEMENT COMMITTEE ’S PROFILES MASAAT AWADZ Ketua Pegawai Kewangan Chief Finance Officer Tarikh dilantik/Date appointed: 1 Januari/January 2017 (Meletak jawatan berkuat kuasa 31 Disember 2018) (Resigned w.e.f 31 December 2018) Tanggungjawab/Responsibilities: Kelayakan/Qualifications: 148 AGROBANK •Ijazah Sarjana Pentadbiran Perniagaan (Kewangan), Universiti Utara Malaysia (UUM) Master of Business Administration (Finance), Universiti Utara Malaysia (UUM) •Ijazah Sarjana Muda Pentadbiran Perniagaan (Kewangan), Universiti Teknologi MARA (UiTM) Bachelor of Business Administration (Finance), Universiti Teknologi MARA (UiTM) •Usahawan Profesional Bertauliah (CPE), Institut Pengurusan Malaysia (MIM) Certified Professional Entrepreneur (CPE), Malaysian Institute of Management (MIM) •Diploma Perakaunan, Universiti Teknologi MARA (UiTM) Diploma in Accountancy, Universiti Teknologi MARA (UiTM)  ertanggungjawab menyelia semua hal ehwal kewangan, operasi perakaunan, perolehan serta pengurusan B data Bank; dan memberikan khidmat nasihat kepada Pengurusan bagi fungsi tersebut dalam membantu mendukung proses membuat keputusan yang tepat dan sewajarnya. Merangka strategi kewangan dan melaksanakan pelan yang efektif bagi memaksimumkan kelebihan persaingan dan keberkesanan kos; untuk menambahbaik proses bahagian dan merangka objektif fungsian yang sejajar dengan matlamat Bank. Responsible for overseeing all financial matters, accounting operations, procurement and data management of the Bank; and provide advisory services to the Management in relation to those functions in order to support proper and accurate decision making process. Develop financial strategies and execute effective plans to ensure maximum competitive advantage and cost effectiveness; to improvise division processes and establishing functional objectives in line with the Bank’s objectives. Pengalaman/Experiences: • Pemangku Ketua Pegawai Kewangan, Agrobank Acting Chief Finance Officer, Agrobank •Ketua Jabatan Perakaunan, Agrobank Head of Accounting, Agrobank •Ketua Jabatan Pengurusan Pelaporan dan Sistem Maklumat, Agrobank Head of Management Reporting and Information System, Agrobank • Pengurus Cawangan bagi beberapa cawangan Agrobank di Malaysia Barat Branch Manager for various Agrobank branches in West Malaysia • Ketua Projek Agrobank bagi projek-projek berikut: Agrobank Project Leader for the following projects: • Cukai Barangan dan Perkhidmatan (GST) Goods and Services Tax (GST) Mengenai Kami • Pelaksanaan Piawaian Pelaporan Malaysia Implementation of Malaysian Reporting Standards Prestasi Strategik Kami • Sistem Pengurusan Kewangan dan Pengurusan Data Financial Management and Data Management System 01 About Us 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Note/Nota: •Menggalas tugas sebagai Penanggung Tugas Presiden/Ketua Pegawai Eksekutif dari 1 September 2017 hingga 31 Mac 2018 Assumed duties as Covering Duties for President/Chief Executive Officer from 1 September 2017 to 31 March 2018 •Menggalas tugas sebagai Pemangku Ketua Pegawai Sumber Manusia merangkap Ketua Pegawai Kewangan dari 1 November 2018 hingga 16 Disember 2018 Assumed duties as Acting CHRO cum CFO from 1 November 2018 to 16 December 2018
  162. MAD YUSOF YAZID Ketua Pegawai Pematuhan Chief Compliance Officer Tarikh dilantik /Date appointed: 1 Mei/May 2018 Tanggungjawab/Responsibilities: Kelayakan/Qualifications: •Pegawai Pematuhan Bertauliah Pencegahan Pengubahan Wang Haram & Pencegahan Pembiayaan Keganasan (CAMCO), Asian Banking School, Asian Institute of Chartered Bankers (2018) Certified Anti-Money Laundering & Counter Financing of Terrorism Compliance Officer (CAMCO), Asian Banking School, Asian Institute of Chartered Bankers (2018) •Jurulatih Profesional Bertauliah, Program Latihan Jurulatih Bertauliah ACTP, Persekutuan Jurulatih Antarabangsa (2012) Certified Professional Coach, ACTPAccredited Coach Training Programme, International Coach Federation (2012) •Ahli Bersekutu, CSI World Headquarters (2011) Associate Member, CSI World Headquarters (2011) •Sijil Undang-undang Islam, Universiti Islam Antarabangsa Malaysia (2010) Certificate in Islamic Law, International Islamic University Malaysia (2010) •Pegawai Pematuhan Bertauliah, Akademi Pengurusan Kewangan Antarabangsa (2008) Certified Compliance Officer, International Academy of Financial Management (2008) •Sijil Pengurusan Sumber Manusia, Graduate School of Business, The National University of Singapore (1999) Certificate in Human Resource Management, Graduate School of Business, The National University of Singapore (1999) •Sijil Sumber Manusia dan Perhubungan Industri, Institut Pengurusan Malaysia (1999) Certificate in Human Resource and Industrial Relations, Malaysia Institute of Management (1999) Bertanggungjawab menyelia pematuhan dan memastikan pematuhan undang-undang, peraturan, dasardasar dan prosedur, serta memastikan pematuhan program di seluruh organisasi adalah berkesan dan cekap dalam mengenal pasti, mencegah, mengesan dan membetulkan ketidakpatuhan terhadap undang-undang dan peraturan yang berkenaan. Responsible for overseeing compliance and ensuring adherence to laws, regulatory requirements, policies and procedures and ensure that the compliance programs throughout the organization are effective and efficient in identifying, preventing, detecting and correcting non-compliance with applicable laws and regulations. Pengalaman/Experiences: • Ketua Pegawai Perkhidmatan, Agrobank Chief Services Officer, Agrobank •Ketua Pegawai Operasi, Agrobank Chief Operations Officer, Agrobank •Ketua Pematuhan Kumpulan, Maybank Head, Group Compliance, Maybank • Ketua Operasi Malaysia, Maybank Head, Malaysian Operations, Maybank • Jabatan Penyeliaan dan Sokongan Cawangan, Maybank Branch Supervision and Support Department, Maybank • Pengurus Cawangan, Maybank Branch Manager, Maybank LAPORAN TAHUNAN 2018 ANNUAL REPORT 149
  163. PROFIL JAWATANKUASA PENGURUSAN MANAGEMENT COMMITTEE ’S PROFILES AHMAD SHAHRIL MOHD SHARIFF Ketua Pegawai Perniagaan Chief Business Officer Tarikh dilantik/Date appointed: 17 Ogos/August 2017 Tanggungjawab/Responsibilities: Kelayakan/Qualifications: 150 AGROBANK •Ijazah Sarjana Muda dalam Kewangan dan Perakaunan, University of Salford, United Kingdom Bachelors in Finance and Accounting, University of Salford, United Kingdom Merumus dan memacu pelaksanaan strategi keseluruhan perniagaan, memastikan pelan perniagaan dan pemasaran berjalan dengan berkesan, turn-around-time (TAT) yang lebih pantas dan menepati garis masa bersandarkan kawalan maksimum yang diukur secara bebas, dan memastikan operasi perniagaan kritikal diselaraskan dengan matlamat perniagaan Bank dalam menzahirkan pertumbuhan aset, keuntungan, kualiti aset pembiayaan dan lain-lain. Mengurus dan menggerakkan kesemua portfolio perniagaan serta menyediakan khidmat nasihat perbankan dengan nilai tambah dan penyelesaian kewangan yang dirangka mengikut kesesuaian bagi mengoptimumkan penjanaan hasil daripada portfolio. Formulate and drive the implementation of the overall business strategy, ensure effective execution of business and marketing plans, deliver faster turn-around-time (TAT) within the timeline with maximum controls which are measured independently; and ensure critical business operations are aligned with the Bank’s business goals to deliver asset growth, profitability, financing asset quality, etc. Manage and drive all business portfolios, and provide value-added banking advisory and customised financial solutions in accordance to the mandate in order to optimise revenue generation from the portfolio. Pengalaman/Experiences: • Ketua Pegawai Transformasi, Agrobank Chief Transformation Officer, Agrobank •Ahli Majlis Ilmiah, Institut Penyelidikan dan Kemajuan Pertanian Scientific Council Member, Agriculture Research and Development Institute •Pengerusi Jawatankuasa Teknikal IKP bagi Persatuan Institusi Pembangunan Kewangan Malaysia (ADFIM)
 Chairman of the DFI Technical Committee of the Association of Development Finance Institutions of Malaysia (ADFIM) Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information •Timbalan Pengarah Bank Negara Malaysia selama 16 tahun dengan pelbagai tanggungjawab termasuk pengawasan mikro, pemantauan kewangan, institusi kewangan bukan bank, dasar kehematan dan kehematan makro, dan merupakan pakar risiko Deputy Director of Bank Negara Malaysia for 16 years with various responsibilities including microsupervision, financial surveillance, non-bank financial institutions, prudential and macro-prudential policies, and risk specialist
  164. Jasni Mohamed Yusoff Ketua Pegawai Kredit Chief Credit Officer Tarikh dilantik /Date appointed: 11 Januari/January 2016 Tanggungjawab/Responsibilities: Kelayakan/Qualifications: •Ijazah Sarjana Muda Sains dalam Pengajian Alam Sekitar, Universiti Pertanian Malaysia Bachelor of Science in Environmental Studies, Universiti Pertanian Malaysia Melaksanakan amalan-amalan pembiayaan Bank menurut matlamat, peranan yang sesuai, strategi & pentadbiran kredit serta pendekatan risiko. Menilai kemantapan keseluruhan portfolio pembiayaan, memastikan dasar dan prosedur kredit diikuti dan kredit diberikan atas dasar yang selamat. Menyediakan khidmat nasihat dan sokongan strategik kepada pengurusan atas berkaitan dengan pengurusan kredit Bank. Spearhead Bank’s approaches on the financing practices based on the Bank’s goals, mandated roles, credit strategy & administration and risk approaches. Assess overall soundness of the financing portfolio, ensure that credit policies and procedures are adhered to and that credit is extended on a sound basis. Provide strategic advices and support to the top management in relation to Bank’s credit management. Pengalaman/Experiences: • Ketua, Penilaian dan Semakan Semula Kredit, Agrobank Head, Credit Evaluation and Review, Agrobank •Ketua, Risiko Kredit dan Pengesahan Cawangan, Agrobank Head, Credit Risk and Branch Authorisation, Agrobank • Pemangku Ketua Pegawai Risiko, Agrobank Acting Chief Risk Officer, Agrobank • Ketua, Penilaian Kredit, Agrobank Head, Credit Appraisal, Agrobank •Ketua Projek Kanan, Modul Pengurusan Kredit dan Risiko Kredit, Projek Perundingan Teknikal AGROBANK – RABOBANK Senior Project Leader, Credit and Credit Risk Management Module, AGROBANK – RABOBANK Technical Consultancy Project •Pengurus Kanan Bahagian Penilaian Pinjaman/Penolong Naib Presiden Pinjaman Korporat dan SME, Agrobank Senior Manager Loan Appraisal Division/Assistant Vice President Corporate and SME Loans, Agrobank •Pengurus Cawangan bagi beberapa cawangan di Sabah dan Sarawak, Agrobank Branch Manager, various branches in Sabah and Sarawak, Agrobank LAPORAN TAHUNAN 2018 ANNUAL REPORT 151
  165. PROFIL JAWATANKUASA PENGURUSAN MANAGEMENT COMMITTEE ’S PROFILES KHADIJAH ISKANDAR Ketua Pegawai Risiko Chief Risk Officer Tarikh dilantik/Date appointed: 2 Mei/May 2017 Tanggungjawab/Responsibilities: Kelayakan/Qualifications: 152 AGROBANK •Sarjana Muda Sains Perakaunan, University of Denver, Colorado BSc in Accounting from University of Denver, Colorado •Pengamal Kredit Profesional Bertauliah Certified Credit Professional •Jurulatih Bertauliah IBFIM dalam Pengurusan Risiko Islam, Pembiayaan Perniagaan Islam dan Operasi Perbankan Islam Accredited IBFIM Trainer in Islamic Risk Management, Islamic Business Financing and Islamic Banking Operation Bertanggungjawab terhadap keseluruhan fungsi dan rangka kerja risiko untuk membantu pihak pengurusan serta lembaga pengarah melaksanakan pengawasan risiko masing-masing. Membangunkan dasar risiko yang sejajar dengan budaya, objektif dan model pengurusan risiko Bank. Menggalakkan amalan pengurusan risiko yang mantap di semua peringkat di dalam Bank. Responsible for overall risk functions and framework to support management and board in performing their respective risk oversight. Develop risk policy in line with the Bank’s risk culture, appetite and risk management model. Promote sound risk management practices throughout all levels in the Bank. Pengalaman/Experiences: • Bank Rakyat: Naib Presiden Kanan, Risiko Kredit Bank Rakyat: Senior Vice President, Credit Risk • Al-Khair International Islamic Bank: Ketua, Pengurusan Risiko Al-Khair International Islamic Bank: Head, Risk Management •Hong Leong Islamic Bank: Ketua, Kredit Perbankan Islam Hong Leong Islamic Bank: Head, Islamic Credit • RHB Islamic Bank: Ketua, Pengurusan Kredit RHB Islamic Bank: Head, Credit Management • RHB Bank Bhd: Pengurus Perhubungan Kanan, Bahagian Perbankan Korporat RHB Bank Bhd: Senior Relationship Manager in Corporate Banking Division Lain-lain/Others: Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information •Menulis mengenai “Risk Management in Islamic Financial Institutions” yang diterbitkan oleh IBFIM pada tahun 2014 Writer for the article “Risk Management in Islamic Financial Institutions” as published by IBFIM in 2014 •Moderator bagi Sijil Kelayakan Kewangan Islam (CFQ) 2011 External moderator of Certified Islamic Finance Qualification (CFQ) 2011
  166. Zahid Ahmad Zawawi Ketua Pegawai Operasi Chief Operations Officer Tarikh dilantik /Date appointed: 23 Julai/July 2015 Tanggungjawab/Responsibilities: Kelayakan/Qualifications: •Akauntan dan Ahli Institut Akauntan Malaysia (MIA) An accountant by profession and Member, Malaysian Institute of Accountants (MIA) •Ijazah Perakaunan, Universiti Kebangsaan Malaysia (UKM) Degree in Accountancy, Universiti Kebangsaan Malaysia (UKM) Memperkemas dan memantapkan fungsi operasi, menekankan keberkesanan hal-hal berkaitan operasi pejabat, pemfokusan proses, peningkatan operasi perbankan dan operasi kredit bagi memenuhi objektif serta mewujudkan sinergi yang berkesan antara Bahagian Pengurusan Operasi dan bahagian-bahagian lain Bank. Melaksanakan strategi yang berkesan untuk meningkatkan kecekapan fungsi keseluruhan operasi serta untuk memacu produktiviti, kecekapan, mengurangkan kos dan meningkatkan kepuasan pelanggan. Mengetuai Pelan Transformasi Teknologi Maklumat (IT), menekankan operasi IT dan kecekapan perbankan, inovasi serta pelaksanaan perbankan digital.
 Streamline and enhance operational functions, emphasize on the effectiveness of back office and operation matters, centralization of processes, enhancement of banking operations and credit operations to meet desired results as well as create synergies between OMD and other divisions within the Bank. Implement effective strategies to maximize the efficiencies of overall functions in operations and to drive productivity, efficiency, reduce cost and enhance customer’s experience. Spearhead IT Transformation Plan, emphasize on IT operation and banking efficiency, innovation as well as implementation of digital banking. Pengalaman/Experiences: • Timbalan Ketua Pegawai Operasi, Agrobank Deputy Chief Operations Officer, Agrobank •Ketua Juruaudit Dalaman, Agrobank Chief Internal Auditor, Agrobank •Menubuhkan Jabatan Audit Dalaman di sebuah syarikat modal usaha niaga milik penuh Kementerian Kewangan Diperbadankan Set up an Internal Audit Department in a venture capital company fully owned by the Minister of Finance Incorporated •Berpengalaman 23 tahun dalam industri perbankan dengan pengkhususan dalam bidang audit, tadbir urus korporat, operasi kredit, penyiasatan, kewangan, pengurusan risiko, perbankan Islam dan pengurusan operasi perbankan Accumulated 23 years of experience in the banking industry specializing in audits, corporate governance, credit operations, investigation, finance, risk management, Islamic banking and banking operations management LAPORAN TAHUNAN 2018 ANNUAL REPORT 153
  167. PROFIL JAWATANKUASA PENGURUSAN MANAGEMENT COMMITTEE ’S PROFILES Mohamad Taufik Mahamad Zakaria Ketua Pegawai Strategi Chief Strategy Officer Tarikh dilantik/Date appointed: 1 April/April 2018 Tanggungjawab/Responsibilities: Kelayakan/Qualifications: 154 AGROBANK •Sarjana Muda Perakaunan (Kepujian) Bachelor in Accounting (Hons) •Akauntan Berkanun (Institut Akauntan Malaysia [MIA]) Chartered Accountant (Malaysian Institute of Accountant [MIA]) •Ahli Association of Chartered Certified Accountants (ACCA) Member of Association of Chartered Certified Accountants (ACCA) •Pengamal Kewangan Islam Profesional Berkanun Chartered Islamic Finance Professional Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Membangunkan pelan strategik Bank dan mengawasi pelaksanaan projek dan inisiatif bagi memastikan matlamat strategik tercapai. Memberi nasihat kepada Lembaga Pengarah dan Pengurusan dalam menetapkan hala tuju strategik untuk meningkatkan kedudukan bank dan keupayaan organisasi dalam menyampaikan mandat dan objektif perniagaannya. Develop the Bank’s strategic plans and oversee the implementation of projects and initiatives to ensure achievements of strategic outcomes. Advise the Board and Management in setting strategic direction to improve the Bank’s positioning and organisational capabilities towards delivering its mandate and business objectives. Pengalaman/Experiences: • Pemangku Ketua Pegawai Transformasi, Agrobank Acting Chief Transformation Officer, Agrobank • Ketua Jabatan Perancangan Korporat & Strategi, Agrobank Head, Corporate & Strategic Planning Department, Agrobank •Penyelia Kanan selama 10 tahun dengan Bank Negara Malaysia (BNM), menyelia konglomerat kewangan tempatan, perbankan Islam dan bank asing yang diperbadankan dalam negeri Senior Supervisor for 10 years with Bank Negara Malaysia (BNM), supervised local financial conglomerates, Islamic and local incorporated foreign banks
  168. Mohamed Parrish Ersalle Abdul Hameed Ketua Pegawai Sumber Manusia Chief Human Resource Officer Tarikh dilantik /Date appointed: 17 Disember/December 2018 Tanggungjawab/Responsibilities: Kelayakan/Qualifications: •Ijazah Pentadbiran Perniagaan (Kepujian), Universiti Islam Antarabangsa Malaysia (UIAM) Degree in Business Administration (Honors) from International Islamic University Malaysia (IIUM) Merangka dan mengesyorkan dasar-dasar dan objektif-objektif Bank berkaitan Sumber Manusia, yang boleh memupuk hubungan positif antara majikan dan kakitangan, dan meningkatkan semangat dan motivasi kakitangan. Memimpin dan membimbing keseluruhan fungsi Sumber Manusia dengan menyelia pencarian individu yang berkebolehan, pembangunan kerjaya, perancangan penggantian, pengekalan, latihan, pembangunan kepimpinan, pampasan & manfaat serta Perhubungan Industri & Kakitangan. Penasihat perniagaan strategik kepada eksekutif/pengurusan kanan tentang isu-isu organisasi dan pengurusan yang penting.
 Formulate and recommend Human Resources policies and objectives for the Bank that will establish a positive employer-employee relationship and promote a high level of employee morale and motivation. Provide overall leadership and guidance to the HR function by overseeing talent acquisition, career development, succession planning, retention, training, leadership development, compensation & benefits and Industrial & Employee Relations. Function as a strategic business advisor to the executive/senior management regarding key organizational and management issues. Pengalaman/Experiences: • Ketua Kumpulan Bahagian Sumber Manusia, Sapura Resources Berhad Group Head Human Resources for Sapura Resources Berhad •Ketua Pegawai Sumber Manusia, Prudential BSN Takaful Berhad Chief Human Resource Officer for Prudential BSN Takaful Berhad •Ketua Kumpulan Bahagian Sumber Manusia, Allianz Malaysia Berhad Group Head Human Resource Division for Allianz Malaysia Berhad Note/Nota: •En. Abdul Khalif Mohamed Salleh meletak jawatan sebagai Ketua Pegawai Sumber Manusia pada 26 November 2018 Mr. Abdul Khalif Mohamed Salleh resigned as Chief Human Resource Officer on 26 November 2018 LAPORAN TAHUNAN 2018 ANNUAL REPORT 155
  169. PROFIL JAWATANKUASA PENGURUSAN MANAGEMENT COMMITTEE ’S PROFILES Hasrul Farid Hasnan Ketua Juruaudit Dalaman Chief Internal Auditor Tarikh dilantik/Date appointed: 1 Januari/January 2014 Tanggungjawab/Responsibilities: Kelayakan/Qualifications: 156 AGROBANK •Ijazah Sarjana Pentadbiran Perniagaan – Pengkhususan dalam Kewangan Gunaan dan Pelaburan, Universiti Kebangsaan Malaysia (UKM) Master of Business Administration – Majoring in Applied Finance and Investment, Universiti Kebangsaan Malaysia (UKM) •Ijazah Sarjana Muda Sains Pentadbiran Perniagaan – Pengkhususan dalam Kewangan, Drexel University, Philadelphia, United States of America (USA) Bachelor of Science Business Admin – Majoring in Finance, Drexel University, Philadelphia, United States of America (USA) •Juruaudit Dalaman Bertauliah bagi Institusi Kewangan (CIAFIN), AICB (dahulunya IBBM) Certified Internal Auditor for Financial Institution (CIAFIN), AICB (formerly known as IBBM) Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information •Ahli Bersekutu, Institut Juruaudit Dalaman Malaysia (IIAM) Associate Member for The Institute of Internal Auditors Malaysia (IIAM) •Ahli Bersekutu, Asian Institute of Chartered Bankers (AICB) Associate Member of Asian Institute of Chartered Bankers (AICB) Merangka strategi, mengetuai, mengurus serta mengawal keseluruhan fungsi audit dalaman dan menyelaraskan semula strategi audit menurut Pelan Perniagaan Strategik Bank. Bertanggungjawab untuk menyediakan perkhidmatan audit dalaman berdasarkan Garis Panduan bagi Piawaian Audit Minimum bagi Juruaudit Dalaman Institusi Kewangan (BNM/RH/GLO13-1), dan Rangka Kerja Amalan Profesional Antarabangsa (IIA Malaysia). Menilai kecukupan dan keutuhan sistem kawalan dalaman Bank yang meliputi kewangan, operasi dan pengurusan risiko kredit, tadbir urus dan pematuhan kepada undang-undang, peraturan, arahan serta garis panduan yang berkenaan. Strategize, lead, organize and control the overall internal audit functions and realign audit strategies in accordance to the Bank’s Strategic Business Plan. Responsible for the provision of internal audit services to Agrobank which are in line with the Guidelines on Minimum Audit Standards for Internal Auditor of Financial Institutions (BNM/RH/GL013-1) and The International Professional Practices Framework (IIA Malaysia). Continuously assess the adequacy and integrity of the Bank’s internal control systems covering financial, operational and credit risk management, governance and compliance with applicable laws, regulations, rules, directives and guidelines. Pengalaman/Experiences: • Penolong Naib Presiden, Bahagian Audit Dalaman, United Overseas Bank (UOB) Assistant Vice President, Internal Audit Division, United Overseas Bank (UOB) • Penolong Pengurus, Jabatan Audit Dalaman, Asian Finance Bank Bhd Assistant Manager, Internal Audit Department, Asian Finance Bank Bhd • Eksekutif Kanan, Bahagian Audit Dalaman, Bank Rakyat Senior Executive, Internal Audit Division, Bank Rakyat • Eksekutif Kanan merangkap Pegawai ke-3, Cawangan Damansara, RHB Bank Senior Executive cum 3rd Officer, Damansara Branch, RHB Bank • Pegawai Perakaunan, Jabatan Kewangan, Nova Scotia Bank Accounting Officer, Finance Department, Nova Scotia Bank
  170. PENYATA PENGURUSAN RISIKO STATEMENT ON RISK MANAGEMENT Agrobank menekankan kemantapan dan kekukuhan dalam sistem pengawasan dan pengurusan bagi risiko berkaitan dengan aktiviti perniagaannya . Untuk mencapai keseimbangan yang sewajarnya antara pelaksanaan peranan, risiko yang diambil dan ganjaran yang diinginkan, pengurusan risiko membentuk sebahagian penting dalam perniagaan, operasi dan proses membuat keputusan oleh Bank. Keutamaan dan keseimbangan risiko yang jelas dalam aktiviti mengembangkan perniagaan, akan membantu pihak Bank memastikan ketelusan dalam aktiviti pengambilan risiko, dan menyokong keputusan strategik yang dibuat oleh Lembaga Pengarah dan pihak pengurusan. Agrobank places great importance on having a sound and robust system on oversight and management of risks related to its business activities. The management of risk is integral to the Bank’s business, operations and decision-making, with the ultimate aim of achieving appropriate balance between successful execution of its mandated roles, risks undertaken and the desired level of rewards. With clear articulation of risk preferences and trade-offs in the pursuit of business growth, the Bank ensures transparency in its risk-taking activities and supports the strategic decisions made by the Board and management. Tadbir Urus Risiko/Risk Governance LEMBAGA PENGARAH/BOARD OF DIRECTORS Memastikan keberkesanan dan keseluruhan dalam pengurusan risiko Bank berkaitan polisi, proses dan infrastruktur untuk menguruskan pelbagai jenis risiko yang ditanggung oleh Bank Ensures that the Bank put in place effective and comprehensive risk management policies, processes and infrastructure to manage various types of risks undertaken by the Bank JAWATANKUASA LEMBAGA PENGURUSAN RISIKO (BMRC)/BOARD MANAGEMENT RISK COMMITTEE (BMRC) Menjalankan fungsi pengawasan risiko termasuk menyemak dan meluluskan rangka kerja dan polisi risiko utama bagi pelbagai jenis risiko Risk oversight function which includes review and approval of key risk frameworks and policies for the various risks JAWATANKUASA PENGURUSAN RISIKO (MRC)/MANAGEMENT RISK COMMITTEE (MRC) Pengawasan atas Risiko Keseluruhan Oversight for overall risks JAWATANKUASA PENGURUSAN RISIKO OPERASI (ORMC)/OPERATIONAL RISK MANAGEMENT COMMITTEE (ORMC) Pengawasan atas Risiko Operasi Oversight for operational risks Keadaan pasaran sektor pertanian yang tidak menentu serta faktor-faktor risiko dinamik, memerlukan Bank memberi lebih penekanan dalam memastikan pengurusan risiko yang berkesan dan piawai pembiayaan yang berhemat. Untuk mencapai keseimbangan yang sewajarnya antara peranan yang dimandatkan, risiko, dan pulangan yang diinginkan, Lembaga Pengarah dan Pihak Pengurusan perlu mengekalkan kemantapan persekitaran perniagaan, selain memastikan kekukuhan kewangan Bank sebagai Institusi Kewangan Pembangunan (IKP) yang berwibawa. The volatile market conditions and dynamic risk factors associated with the agriculture sector raise the importance of ensuring that the Bank implements robust risk management practices and prudent financing standards. As the Bank aims to achieve balance between its mandated roles, risks and desired returns, the role played by the Board and Management is vital to create sound business environment and protect the Bank’s financial soundness as a reputable development financial institution (DFI). Di Agrobank, tanggungjawab tertinggi pengurusan risiko digalas oleh Lembaga Pengarah, yang dibantu oleh Jawatankuasa Lembaga Pengurusan Risiko (BRMC). Di peringkat pengurusan, BRMC dibantu oleh Jawatankuasa Pengurusan Risiko (MRC), dan Jawatankuasa Pengurusan Risiko Operasi (ORMC). The ultimate responsibility of risk management in Agrobank lies with the Board. In fulfilling this responsibility, the Board is assisted by the Board Risk Management Committee (BRMC). At the management level, the BRMC delegates the responsibility to the Management Risk Committee (MRC) and Operational Risk Management Committee (ORMC). Tanggungjawab Lembaga Pengarah Lembaga Pengarah bertanggungjawab untuk menjalankan pengawasan bebas bagi memastikan kelancaran dan keberkesanan pelaksanaan polisi dan proses pengurusan risiko bagi aktiviti pengambilan risiko. Untuk memastikan keberkesanan pengawasan risiko dalam membangunkan strategi perniagaan dan aktiviti pengambilan risiko, Lembaga Pengarah telah menetapkan struktur tadbir urus yang jelas dan berkesan, dengan Terma Rujukan (TOR) yang ditakrifkan dengan terang, yang antara lain, merangkumi peranan dan tanggungjawab setiap jawatankuasa. Board Responsibilities The Board is responsible for providing independent oversight in ensuring that senior management implements robust and effective risk management policies and processes in governing risk-taking activities. To enable effective risk oversight in the development of business strategies and risk-taking activities, the Board has established a clear and effective governance structure with well-defined Terms of Reference (TOR) which among others consist of roles and responsibilities of respective committees. LAPORAN TAHUNAN 2018 ANNUAL REPORT 157
  171. PENYATA PENGURUSAN RISIKO STATEMENT ON RISK MANAGEMENT Seperti yang dinyatakan dalam rangka kerja pengurusan risiko Bank , BRMC mengawasi pelaksanaan proses pengurusan risiko, iaitu dari segi mengenal pasti, menilai, mengawal dan memantau risiko yang sedia ada dalam operasi perniagaan Bank. Keberkesanan proses ini dipantau rapi dan dilaporkan kepada BRMC untuk dibincangkan. Khususnya, BRMC bertanggungjawab untuk: •Membincangkan dan meluluskan strategi pengurusan risiko, polisi dan toleransi risiko/kesanggupan menanggung risiko yang dicadangkan oleh MRC; •Menyemak dan menilaikan kekukuhan pengurusan risiko dan polisi risiko sokongan; rangka kerja •Memastikan kewujudan struktur, sumber dan sistem bagi menyokong fungsi pengurusan risiko yang berkesan; dan •Menyemak laporan risiko berkala tentang pendedahan risiko, komposisi portfolio risiko, pematuhan had risiko, risiko baharu, dan tindakan Bank bagi mencegah pengumpulan risiko yang berlebihan. As defined in the Bank’s risk management framework, the BRMC oversees the implementation of risk management processes in identifying, evaluating, controlling and monitoring of significant risks that are inherent to the Bank’s business operation. The effectiveness of these processes is closely monitored and reported to the BRMC for deliberation. Specifically, the BRMC is responsible for: •Considering and approving risk management strategies, policies and risk tolerance/risk appetite recommended by the MRC; •Reviewing and assessing the adequacy of risk management framework and the supporting risk policies; •Ensuring that structures, resources and systems are in place to support effective risk management function; and •Reviewing the Bank’s periodic risk reports on risk exposures, risk portfolio composition, risk limits compliance, emerging risks and actions taken to prevent excessive risk accumulation. Tanggungjawab Pihak Pengurusan 158 AGROBANK Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Pihak Pengurusan bertanggungjawab untuk membentuk dan melaksanakan rangka kerja pengurusan risiko dan polisi sokongannya. Berdasarkan pemahaman dan kearifan mereka dalam profil risiko Bank, pihak Pengurusan dipertanggungjawabkan untuk mempertimbangkan dan membuat keputusan perniagaan yang sewajarnya, dengan mengambil kira risiko berkaitan yang ada, dan memastikan Bank beroperasi dalam lingkungan kesanggupan menanggung risiko yang ditetapkan. Jawatankuasa MRC dan ORMC diamanahkan untuk mengawasi dan menguruskan profil risiko Bank dan risiko baharu, selain faktor-faktor lain yang boleh mendorong perubahan negatif dalam profil risiko, dan menyebabkan pengumpulan risiko yang berlebihan. Management Responsibilities The Management is responsible for the design and implementation of risk management framework and supporting risk policies. By virtue of their understanding and appreciation of the Bank’s risk profile, the Management is expected to exercise sound judgement in business decision-making giving due consideration on the associated risks and ensuring that the Bank operates within its defined risk appetite at all times. The MRC and ORMC are entrusted to provide effective oversight and management of the Bank’s risk profile and emerging risks as well as the underlying factors that could contribute to adverse change in risk profile and excessive risk build-ups. Bahagian Pengurusan Risiko Risk Management Division Bahagian Pengurusan Risiko (RMD) mewakili barisan pemantauan kedua dalam rangka kerja pengurusan risiko, dan membentuk bahagian berasingan daripada unit-unit perniagaan. Ia menjalankan empat fungsi utama dalam pengurusan risiko, iaitu Pengurusan Risiko Kredit, Pengurusan Risiko Pasaran, Pengurusan Risiko Operasi dan Pengurusan Risiko Syariah. Jabatan Penilaian dan Semakan Kredit di ibu pejabat, serta unit Penilaian dan Semakan Kredit di pejabat wilayah turut diletakkan di bawah pengurusan RMD, dan bertanggungjawab untuk menjalankan penilaian berasingan atas usul-usul kredit yang diajukan oleh unit perniagaan. Selain itu, jabatan Pengurusan Penyelidikan Ekonomi dan Industri telah ditempatkan di bawah RMD pada tahun 2018, untuk menyediakan maklumat penting berkaitan ekonomi dan risiko industri, di samping menganalisis aktiviti perniagaan untuk tujuan tertentu, atau untuk tujuan masa depan. Meskipun fungsi pengurusan risiko yang disebut sebelum ini sudah ditempatkan, RMD tetap menubuhkan jabatan Analisis Risiko dan Projek Basel (kini dikenali sebagai jabatan Modal dan Risiko Pasaran), untuk membantu Bank melaksanakan Basel II dan Basel III (Nota: Pelaporan selari bagi Tunggak 1 CAFIB (Basel II) dan pelaporan Basel III dimulakan pada tahun 2019). The Risk Management Division (RMD) represents the second line of defence in the risk management framework and is an independent division from the business units. It undertakes four core risk management functions, namely Credit Risk Management, Market Risk Management, Operational Risk Management and Shariah Risk Management. The Credit Evaluation and Review department at the head office and the Credit Evaluation and Review unit at the regional offices are also under the purview of the RMD, and are primarily responsible to conduct independent assessment of credit proposals by business units. In addition, the Economic and Industrial Research Management department was strategically organized under RMD in 2018 to provide valueadded economic and industry risk information, as well as actively guiding business activities through ad-hoc and forward looking analysis. Notwithstanding the aforementioned risk management functions, Risk Analytics and Basel Projects department (currently known as Capital and Market Risk department) was established under RMD in ensuring the Bank’s readiness towards Basel II and Basel III implementation (Note: The CAFIB (Basel II) Pillar 1 parallel reporting and Basel III reporting had commenced in year 2019).
  172. RMD diketuai Ketua Pegawai Risiko (CRO) yang dilantik oleh Lembaga Pengarah, untuk menerajui bahagian pengurusan risiko. Antara lain, peranan RMD merangkumi perkara yang berikut: The RMD is headed by the Chief Risk Officer (CRO), who is appointed by the Board to spearhead the risk management division. Among others, the role of the RMD includes the following: • •Develop risk strategy Membangunkan strategi risiko; •Memantau aktiviti pengambilan risiko; •Monitor risk-taking activities •Memulakan, mencadangkan dan menyemak polisi risiko, kaedah pengukuran risiko, dan had risiko bagi Bank; •Initiate, propose and review the risk policies, risk measurement methodologies and risk limits of the Bank •Mengkaji kualiti portfolio pembiayaan dan pelan pemulihan secara berasingan; •Undertake independent review on the quality of financing portfolio and recovery plan •Menyediakan pelan kesinambungan rancangan luar jangka; dan •Ensure business continuity and contingency plans are in place •Menilaikan produk baharu, manual operasi dan pelan pengurusan modal; •Assess new products, operational manuals and the capital management plan •Mengkaji semula sinergi pelaburan perbendaharaan dan menganalisis kedudukan serta aktiviti berkaitan perubahan dalam pasaran kewangan, untuk memastikan pematuhan rangka kerja risiko pasaran; •Review treasury’s investment synergies and analyse positions and activities vis-à-vis changes in the financial market in propagating and ensuring compliance with the market risk framework •Menjalankan ujian tekanan berkaitan perniagaan apabila diperlukan, dan ujian tekanan makroekonomi dari semasa ke semasa. •Conduct ad-hoc business related stress tests and periodic macroeconomic stress tests. perniagaan Risk Management Framework Rangka Kerja Pengurusan Risiko Rangka kerja pengurusan risiko bagi Agrobank disediakan berdasarkan proses tadbir urus yang menetapkan dengan jelas mengenai tanggungjawab dalam mengenal pasti, menilai, mengawal, memantau dan melaporkan risiko. Tanggungjawab ini merangkumi tiga barisan pemantauan, iaitu unit pengambilan risiko, unit kawalan risiko, dan juruaudit dalaman. Ketiga-tiganya membentuk sebahagian daripada budaya risiko Bank, di mana setiap kakitangan adalah bertanggungjawab atas risiko yang berada dalam kawalan mereka. Barisan pemantauan pertama bertanggungjawab untuk menyediakan asas budaya risiko yang kukuh. Ini diikuti oleh barisan kedua dan ketiga, di mana kesemuanya berfungsi dalam rangka kerja yang strategik, untuk membantu Agrobank menangani cabaran-cabaran dalam menguruskan risiko secara berkesan. Rangka kerja ini turut menetapkan cara Bank menggunakan amalan pengurusan risiko untuk memastikan semua aktiviti dijalankan menurut prinsipprinsip yang digariskan dalam rangka kerja pengurusan risiko di bawah ini: 1.Pendekatan pengurusan risiko di Agrobank bertunjangkan tiga barisan pemantauan, iaitu unit mengambil risiko, unit kawalan risiko dan audit dalaman; 2.Unit-unit pengambilan risiko (jabatan dan cawangan) membentuk barisan pemantauan risiko yang pertama, dan berfungsi untuk menguruskan keseimbangan antara risiko dan pulangan, menurut polisi dan garis panduan yang ditetapkan oleh Bank. Khususnya, unit ini bertanggungjawab untuk mewujudkan persekitaran kawalan risiko yang beroperasi dengan berkesan dalam menjalankan aktiviti seharian. Risiko yang diletakkan dalam barisan pemantauan pertama harus memenuhi tahap kesanggupan menanggung risiko, dan had-had yang ditetapkan. Agrobank’s risk management framework is based on a governance process that sets forth clear responsibilities for identifying, assessing, controlling, monitoring and reporting risks. These responsibilities are divided into three lines of defence, namely, the risk-taking units, risk control units and, lastly, the internal auditor. This becomes part of the Bank’s risk culture, enshrining the practice that every employee is accountable for these risks in their domain. With the first line setting a strong organisational tone focused on risk culture, followed by the second and third line of defence working within a collaborative, strategic framework, allows Agrobank to effectively meet the challenges of today’s risk landscape. The framework also sets out how the Bank organises and applies its risk management practices to ensure that all activities are conducted in line with the principles underpinning the risk management framework as prescribe below: 1.The risk management approach in Agrobank is based on three lines of defence, namely risk-taking units, risk control units and internal audit. 2.Risk-taking units (departments and branches) form the first line of defence against inherent risk by managing the risk reward trade-off contained within the policies and guidelines laid down by the Bank. Principally, they are responsible for ensuring that a risk control environment is put in place and operating effectively as part of day-to-day operations. The acceptance or generation of risk in the first line of defence should fit with the risk appetite and limits defined. LAPORAN TAHUNAN 2018 ANNUAL REPORT 159
  173. PENYATA PENGURUSAN RISIKO STATEMENT ON RISK MANAGEMENT 3 .Barisan pemantauan kedua merangkumi unit kawalan risiko, yang bertanggungjawab untuk menyediakan rangka kerja pengurusan risiko dan membangunkan polisi, metodologi serta instrumen bagi mengurus semua risiko utama dalam Bank. Unit kawalan risiko mengkaji rangka kerja, polisi, metodologi dan instrumen untuk memastikan kesemuanya memenuhi keperluan unit pengambilan risiko. 160 AGROBANK 3.The second line of defence is the risk control units, which establishes the risk management framework and develop policies, methodologies and tools for the management of key risks in the Bank. Through reviews, risk control units ensure that the framework, policies, methodologies and tools meet the requirements of risk-taking units. a.Bahagian Pengurusan Risiko bertanggungjawab untuk membangunkan dan memantau pelbagai polisi risiko dan keputusan berkaitan yang dibuat oleh Lembaga Pengarah. Fungsi dan penstrukturannya adalah berasingan daripada unit perniagaan dan unit pengambilan risiko lain dalam Bank. a.The Risk Management Division is responsible for the development and monitoring of various risk policies and related decisions by the Board. It is functionally and organisationally independent of business units and other risk-taking units within the Bank. b.Pengurusan risiko memastikan polisi risiko utama Bank adalah konsisten dengan tahap risiko dan kesanggupan menanggung risiko, bagi memudahkan pelaksanaan rangka kerja pengukuran risiko terlaras. b.Risk management ensures that the core risk policies of the Bank are consistent with risk tolerance levels and risk appetite to facilitate the implementation of an integrated risk-adjusted measurement framework. c.Risk management also provides oversight of major risks including credit risk, market risk, liquidity risk, operational risk and Shariah risk. The Board, through the BRMC, is responsible for the oversight of overall risks to which the Bank is exposed. c.Pengurusan risiko turut mengawasi risiko-risiko utama, termasuk risiko kredit, risiko pasaran, risiko kecairan, risiko operasi dan risiko Syariah. Lembaga Pengarah bertanggungjawab untuk mengawasi keseluruhan risiko yang dihadapi oleh Bank, menerusi BRMC. 4.Di barisan pemantauan ketiga, audit dalaman membuat penilaian berasingan dan objektif untuk mengesahkan risiko yang dikenal pasti, dengan memastikan kawalan dalaman yang sesuai tersedia untuk menguruskan risiko tersebut, dan keberkesanan kawalan tersebut. Penilaian audit dalaman ini membantu barisan pemantauan pertama dan kedua melaksanakan tanggungjawab mereka secara berkesan dan konsisten. 4.The internal audit, being the third line of defence, provides an independent and objective assessment on whether risks have been adequately identified; appropriate internal controls are in place to manage those risks and whether these controls are working effectively. Through its assessment, the internal audit ensures that the first and second line of defence executes their responsibilities in an effective and consistent manner. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events PELAPORAN PENGURUSAN RISIKO RISK MANAGEMENT REPORTING LEMBAGA PENGARAH BOARD OF DIRECTORS PENGURUSAN KANAN SENIOR MANAGEMENT BARISAN PEMANTAUAN PERTAMA 1ST LINE OF DEFENCE BARISAN PEMANTAUAN KE-2 2ND LINE OF DEFENCE BARISAN PEMANTAUAN KE-3 3RD LINE OF DEFENCE Unit Perniagaan Unit Sokongan Business Lines Support Units Pengurusan Risiko Risk Management Audit Dalaman Internal Audit Mengurus risiko khusus dalam aktiviti seharian Manages specific risks in the day-to-day activities Membangunkan rangka kerja, polisi, metodologi dan instrumen risiko Develops risk frameworks, policies, methodologies and tools Memberi jaminan berasingan bagi fungsi pengurusan risiko Provides independent assurance over risk management function Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information
  174. Rangka kerja pengurusan risiko dirangka untuk mengekalkan risiko Bank dalam tahap kesanggupan menanggung risiko yang boleh diterima , dan bukannya untuk menghapuskan sepenuhnya, risiko kegagalan mencapai matlamat perniagaan dan objektif korporat bank. Demikian, ia hanya mampu memberikan jaminan yang munasabah, dan bukannya jaminan yang mutlak ke atas salah nyata, penipuan, atau kerugian kewangan yang penting. Penyata Kesanggupan Menanggung Risiko Untuk menggalakkan tadbir urus yang berkesan dan proses membuat keputusan berdasarkan risiko, Bank telah menetapkan penyata kesanggupan menanggung risiko bagi risiko-risiko yang sedikit sebanyak, mampu dikurangkan dan diuruskan. Penyata kesanggupan menanggung risiko ini menetapkan jumlah dan jenis risiko yang sanggup ditanggung dalam mencapai objektif perniagaan strategik bank, yang ditetapkan dan dipantau sewajarnya oleh Lembaga Pengarah dan Pihak Pengurusan. Ia turut memperuntukkan tanggungjawab dan sumber yang diperlukan untuk menguruskan pendedahan kepada risiko. Kesanggupan menanggung risiko ini membentuk sebahagian daripada strategi dan rancangan perniagaan tahunan Agrobank, dan berfungsi untuk mencapai keputusan strategik dan taktikal yang lebih baik. Kesanggupan menanggung risiko disemak setiap tahun, dan disesuaikan dengan sebarang perubahan dalam persekitaran perniagaan dan pasaran, sambil memastikan ianya selaras dengan strategi, persekitaran perniagaan, kawal selia dan keperluan pihak berkepentingan. Bank menggunakan pelbagai jenis penunjuk kuantitatif dan kualitatif untuk memantau profil risiko, di mana had-had spesifik ditetapkan menurut kesanggupan menanggung risiko bagi Bank. Ujian tekanan dan analisis senario turut dijalankan untuk menilai prestasi portfolio Bank dalam situasi yang berkemungkinan menjejaskan profil risiko dan hala tuju Bank dengan ketara. Inisiatif Utama dalam Pengukuhan Keupayaan Pengurusan Risiko pada tahun 2018 Lembaga Pengarah dan Pihak Pengurusan di Agrobank mengutamakan pengurusan risiko yang bertujuan untuk mengurangkan risiko, sambil memanfaatkan risiko tertentu yang lain untuk mengembangkan dan mencipta nilai bagi Bank. Demikian, pengurusan risiko di Agrobank dijalankan secara dinamik supaya bersedia untuk menangani risiko-risiko baharu (mengeluarkan risiko lapuk) yang muncul pada tahun ini. Pemantauan persekitaran risiko telah diteruskan, sementara polisi dan prosedur turut disemak bagi memastikan ia kekal relevan dalam persekitaran perniagaan semasa. Memandangkan keadaan pasaran global dan serantau yang tidak begitu stabil, tahun 2018 telah melihat Agrobank mempertingkatkan usaha mengukuhkan infrastruktur pengurusan risiko mereka. The risk management framework is designed to keep the Bank’s risks within an acceptable risk appetite, rather than completely eliminating the risk of failure in achieving its business goals and corporate objectives. It can therefore only provide reasonable, rather than absolute, assurance against material financial misstatement, fraud or loss. Risk Appetite Statement In support of effective governance and risk-informed decisionmaking, the Bank has set out a risk appetite statement for those risks which, to a lesser or greater extent, are within its control to mitigate and manage. The risk appetite statement specifies the amounts and types of risk the Bank is willing to undertake in achieving its strategic business objectives, duly set and monitored by the Board and Management. It also informs policies on the allocation of accountabilities and resources to manage its risk exposures. This risk appetite is integrated into Agrobank’s annual strategy and business plan and acts as a lever for better strategic and tactical decisions. The risk appetite of the Bank is reviewed yearly to adapt to changes in the business environment and market conditions, while ensuring that they are consistent with the Bank’s strategy, business, regulatory environment and stakeholders’ requirements. The Bank employs a range of quantitative and qualitative indicators to monitor the risk profile whereby specific limits are set in line with the Bank’s risk appetite. Stress testing and scenario analyses are also conducted to assess the performance of the Bank’s portfolios in potential risk events that may adversely impact the Bank’s risk profile and business direction. Key Initiatives in Capabilities in 2018 Strengthening Risk Management The Board and Management of Agrobank believe that risk management is not just about minimising downside risk, but also enabling the Bank to take on the necessary risks to grow and create value. Hence, risk management at Agrobank is dynamic and responds to new risks (and removes out of date risks) as they arose during the year. This is conducted through continuous monitoring of risk environment and revision of policies and procedures to ensure its relevance to the prevailing business environment. In light of the prevailing global and regional market conditions, Agrobank placed the highest priority on further strengthening its risk management infrastructure during 2018. LAPORAN TAHUNAN 2018 ANNUAL REPORT 161
  175. PENYATA PENGURUSAN RISIKO STATEMENT ON RISK MANAGEMENT Tadbir Urus Risiko Risk Governance Rangka kerja kesanggupan menanggung risiko Risk appetite framework Pengawasan & Penyeliaan Surveillance & supervision Pematuhan Risiko Risk Compliance Pematuhan kawal selia Regulatory compliance 162 AGROBANK Polisi & garis panduan risiko Risk policies & guidelines Inisiatif Pengurusan Risiko Utama 2017 Key Risk Management Initiatives 2017 Menggalakkan penggunaan amalan terbaik risiko Foster debate and best practices on risks Rangka kerja pengurusan risiko yang mantap Robust risk management framework Proses Pengurusan Risiko Risk Management Mempertingkatkan Process fungsi & keupayaan pengurusan risiko Enhance risk management functions & capabilities Lingkungan kebertanggungjawaban yang jelas Clear accountability & ownership Budaya Risiko Risk Culture Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Perkembangan dan pencapaian inisiatif utama adalah seperti berikut: Key developments and initiatives achieved are highlighted below: •Standard penaja jaminan kredit terus disemak dan dikemaskini untuk mematuhi amalan terbaik pasaran. Sistem penarafan kredit dalaman yang sedia ada bagi portfolio runcit turut disemak dari semasa ke semasa. Bagi portfolio bukan runcit, model penarafan baharu yang meliputi platform penarafan telah dilengkapkan pada tahun 2018. Di samping itu, toleransi risiko Bank telah diterjemahkan kepada had-had risiko terperinci untuk mendorong penunjuk risiko utama progresif, dan memudahkan pemantauan nilai ambang dengan menggunakan had pencetus kesanggupan menanggung risiko. Had terperinci ini ditetapkan untuk membantu perniagaan mencapai matlamat rancangan jangka pendek, sambil memberi peluang untuk mereka menilai semula peluang dan risiko berkaitan yang wujud dikala had semakin dihampiri. Pengurusan pendedahan kepada risiko kredit termasuk menyemak had-had risiko kredit seperti had risiko industri dan Pencetus Tindakan Pengurusan (MAT) dari semasa ke semasa, untuk disesuaikan dengan perubahan dalam kawal selia, keperluan perniagaan dan keadaan pasaran. •The Bank continued to review and update its credit underwriting standards to commensurate with market place best practices. At the portfolio level, periodic review was conducted on the existing internal credit rating system for retail portfolios. For non-retail portfolios, new rating models, which includes the rating platform was completed in 2018. In addition, the Bank’s risk tolerance was translated into granular risk limits and thus enabling new forward-looking key risk indicators and monitoring thresholds through the risk appetite trigger limits. These granular limits were set to allow businesses to achieve their near-term plans while promoting a reassessment of the opportunity and associated risks as the limit is approached. As part of the Bank’s credit risk exposure management, credit risk limits such as industry risk limits and Management Action Triggers (MAT) were regularly reviewed in response to regulatory changes, changing business needs and market conditions.
  176. •Dengan kenaikan kos dalam sistem perbankan, Agrobank telah mengambil langkah untuk memperbaiki fungsi perantara dengan mengurangkan ketidaksepadanan dalam pendanaan, mempelbagaikan sumber pendanaan komersial, merasionalkan keuntungan dan kadar hibah, dan memantapkan pengurusan profil kematangan bagi aset dan liabiliti milik Bank. •Bank akan berusaha untuk menetapkan struktur harga yang lebih baik bagi produk kewangan, meningkatkan kadar penembusan produk, dan menambah baik nilai tambah ekonomi (EVA) pelanggan. •In light of rising cost of funds in the banking system, Agrobank took steps to improve the intermediary function by reducing funding mismatches, diversifying commercial funding sources, rationalising profit and hibah rates, and strengthening the management of maturity profiles of assets and liabilities of the Bank. •The Bank remained focused on working towards a better pricing structure for financial products, increased product penetration, and better overall client economic value added (EVA). •Bank sedang berusaha melaksanakan rangka kerja CAFIB (BASEL II) dalam menilaikan kecukupan modal, serta strategi pengurusan modalnya. Walaupun tidak diwajibkan, Bank telah menggunakan peraturan Basel III bagi Nisbah Liputan Kecairan (LCR) dan Nisbah Pendanaan Stabil Bersih (NSFR) yang dikeluarkan oleh BNM. Peraturan Basel III akan digunakan oleh Bank dalam menguruskan kecairan dan melaksanakan modal dengan lebih berkesan. •The Bank is on track towards implementing CAFIB (BASEL II) framework in the measurement of its capital adequacy, and in its capital management strategy. Although it is not a regulatory requirement, the Bank adopted Basel III requirements in relation to Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) issued by BNM. The Bank intends to continue to manage liquidity and deploy capital efficiently in line with the Basel III rules. •Pengurusan risiko keseluruhan Bank meliputi aktiviti menguruskan risiko operasi, dan ia melibatkan semua fungsi dan kakitangan Bank. Penekanan turut diberikan untuk memastikan keberkesanan dalam menyelaraskan risiko operasi dengan risiko lain (contohnya risiko kredit, risiko pasaran dan risiko lain yang muncul berkaitan risiko operasi) untuk menyediakan pendekatan yang holistik dan bersepadu dalam menjalankan strategi pengurusan risiko keseluruhan Bank. Untuk memastikan risiko operasi dalam urusan perniagaan yang sedia ada atau dalam perubahan yang disarankan dinilaikan secara sistematik, risiko operasi perlu dinilaikan. Perkembangan dalam isu-isu risiko operasi yang masih wujud terus dipantau, sementara pendedahan kepada risiko operasi telah dianalisis dan dilaporkan kepada pihak pengurusan kanan dan Lembaga Pengarah untuk membantu mereka membuat keputusan. Penekanan turut diberi pada pemantauan risiko-risiko baharu seperti risiko siber. •The management of operational risk is an integrated part of the Bank’s overall risk management activities and it concerns all functions and personnel of the Bank. Emphasis was also given towards ensuring effective coordination in the management of operational risk with that of other risks (e.g. credit risks, market risks, and other risk types arising from interactions with operational risks) to provide a holistic and integrated approach to the Bank’s overall risk management strategy. Operational risk assessment is the key in systematically assessing operational risks in on-going business and in proposed changes. Progress on outstanding operational risk issues were monitored while operational risk exposures were analysed and reported to senior management and Board to support decision-making; this includes monitoring of emerging risks such as cyber risk that has also been heightened. •Agrobank memerhatikan pembangunan luaran, dan memantau impak faktor makroekonomi dan faktor risiko yang khusus pada tahap kecukupan modalnya. Penilaian risiko “atas ke bawah”, dan “bawah ke atas” dijalankan secara berkala dan berstruktur, sepanjang tahun untuk mengenal pasti pelbagai jenis risiko, sementara ujian tekanan dijalankan untuk mengukur impak senario negatif pada kedudukan kewangan Bank. Berdasarkan keputusan ujian tekanan ini, dan di mana perlu, langkah-langkah yang sesuai dengan kesanggupan menanggung risiko Agrobank, telah diambil. •Agrobank keeps track of external developments and closely monitors the impact of specific macro-economic and risk factors on its capital adequacy levels. Regular and structural top-down and bottom-up risk assessments were performed throughout the year to identify various types of risks, while stress tests were conducted to calculate the impact of adverse scenarios on the Bank’s financial soundness. Where necessary, measures in line with Agrobank’s risk appetite were taken on the basis of stress tests results. •Keutamaan berterusan diletakkan pada usaha menambah baik pelaporan dan kualiti maklumat risiko yang disediakan dan dibentangkan kepada pihak Pengurusan dan Lembaga Pengarah, dengan menyerlahkan kepentingan dan pemahaman tentang risiko merentasi seluruh Bank. •Untuk membina tadbir urus risiko yang berkesan, budaya risiko dan pematuhan harus diperkukuhkan, selain menerapkan sifat bertanggungjawab di setiap peringkat. Usaha Bank bagi memantapkan budaya dan amalan terbaik risiko merangkumi latihan pengurusan risiko dan program kesedaran yang dijalankan dari semasa ke semasa, untuk membantu kakitangan dari semua peringkat meningkatkan pengetahuan dalam pengurusan risiko, memahami dan memanfaatkan rangka kerja pengurusan kesanggupan menanggung risiko Bank, dan memahami dengan jelas, risiko dalam keputusan strategik dan seharian yang dibuat oleh mereka. •Continued priority was given to improving risk reporting and the quality of risk information available and presented to the Management and the Board, which led to an overall improvement in the visibility and understanding of risk across the Bank. •Building a strong risk and compliance culture, and instilling risk accountability and ownership at all levels are essential blocks for effective risk governance. As part of the Bank’s efforts to embed a strong risk culture and best practices, on-going risk management trainings and awareness programmes were provided periodically to staff at all levels to enable them to develop their knowledge in risk management, understand and embrace the Bank’s risk appetite and risk management framework, and is clear about the risks inherent in their strategic and day-to-day decisions. LAPORAN TAHUNAN 2018 ANNUAL REPORT 163
  177. PENYATA PENGURUSAN RISIKO STATEMENT ON RISK MANAGEMENT •Fungsi tadbir urus akan terus diperbaiki bagi mempertingkatkan kebertanggungjawaban dan prestasi perniagaan di Agrobank. Salah satu langkah yang diambil adalah mengukuhkan barisan pemantauan pertama dan memantapkan ekosistem pengurusan risiko, bagi menangani kesanggupan menanggung risiko yang semakin mencabarkan pada hari ni. Untuk mempertingkatkan budaya risiko di Agrobank, keutamaan diberikan kepada unit-unit pengambilan risiko sebagai barisan pemantauan yang pertama. Khususnya, peningkatan dalam budaya risiko boleh dicapai apabila bank mampu melakukan pengambilan risiko berhemat. Bagi mencapai hasrat ini, Agrobank memastikan unit pengambilan risiko dilengkapkan dengan pengetahuan, kemahiran, maklumat dan kuasa yang diperlukan untuk beroperasi menurut polisi dan prosedur kawalan risiko yang relevan. Ini dijalankan melalui beberapa kaedah termasuk: 164 AGROBANK –Menerapkan kesedaran risiko dalam membuat keputusan harian, di unit pengambilan risiko. –Menyemai pemahaman untuk mempertimbangkan implikasi risiko semasa membuat keputusan ataupun perubahan dalam perniagaan, di kalangan pengurus dalam barisan pemantauan pertama. –Menyediakan latihan perhubungan risiko. intensif kepada pegawai •Mewujudkan persekitaran budaya risiko yang kukuh, di mana risiko dan dilema yang timbul dalam aktiviti seharian boleh dibincangkan secara terbuka, membentuk asas penting bagi Bank. Dengan itu, Bank telah menganjurkan jerayawara di serata negara, untuk menyelaraskan amalan mereka, menangani ketidakkonsistenan yang ada, selain menyediakan platform untuk memberi dan menerima maklum balas daripada kakitangan yang menguruskan risiko setiap hari. Melalui acara ini, RMD telah berjaya memulakan perbincangan berterusan tentang cara menguruskan risiko bagi menangani cabaran masa depan, di samping berkongsi amalan terbaik dan pengalaman, punca serta pengajaran daripada kesilapan lepas agar ia tidak berulang. •Pengurusan risiko Syariah terus diperkukuhkan menggunakan pelbagai instrumen dan sesi libat-sama. Dengan keupayaan pengurusan risiko Syariah yang dipertingkatkan, Bank telah berjaya menjalankan latihan profil pengurusan risiko Syariah yang lebih baik. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Komitmen dan Keutamaan Strategik pada Tahun 2019 Pada tahun 2019, strategi Bank termasuk mengekalkan kepimpinan dalam pasaran, memperkukuhkan kehadiran dalam sektor pertanian, meningkatkan pertumbuhan pembiayaan kepada kadar yang lebih seimbang, dan mempelbagaikan sumber deposit untuk memantapkan lembaran imbangan. Untuk mencapai hasrat ini, Bank akan mempertingkatkan infrastruktur dan keupayaannya sambil memperbaiki budaya dan amalan pengurusan risiko di segenap peringkat. Dari sudut operasi, Bank akan terus mengamalkan amalan terbaik untuk menguruskan risiko pasaran dan kecairan, selain memperkukuhkan dan menambah baik infrastruktur dan polisi bagi mengurangkan dan mengawal risiko sedia ada dan risiko berpotensi yang timbul berikutan perubahan dalam harga komoditi, isu-isu keselamatan siber, teknologi media sosial dan pengaruh teknologi kewangan (fintech). •Agrobank remains steadfast in improving corporate governance functionality as a means to enhance accountability and improve business performance. One of the steps taken is strengthening the first line of defence in building a stronger risk management ecosystem to effectively meet the challenges of today’s risk appetite. At Agrobank, significant consideration is given to risktaking units as the first line of defence within the context of enhancing risk culture. In particular, the risk culture is enhanced when they are accountable for prudent risktaking. Towards this end, Agrobank ensures that risk-taking units have the necessary knowledge, skills, information, and authority to operate the relevant policies and procedures of risk control. This is done through several approaches including: –Embed risk-conscious behaviour of risk-taking units in their everyday decisions. –Foster a risk mind set in the first line of defence among frontline managers so that they consider risk implications when making business decisions or changes. –Provide intensive trainings to risk liaison officers. •An important baseline in having a strong risk culture is creating an environment in which risks and dilemmas that arise in the day-to-day work are openly discussed. The Bank organised nationwide road shows to streamline practices, address inconsistency and serve as a platform to provide and receive feedbacks from staff managing risks daily. Through road shows, RMD fosters continuous debate about how to manage risks holistically in order to anticipate future challenges on the ground, share best practices and from lessons learned so as to avoid repetition by removing the causes and through sharing of experiences. •The Bank continued to strengthen its Shariah risk management through various tools and engagement sessions. With the strengthening of Shariah risk management capabilities, the Bank was able to conduct an enhanced Shariah risk management profiling exercise. Commitment and Strategic Priorities in 2019 The Bank’s strategy for 2019 is to retain market leadership and build greater presence in agriculture sector as well as increases its financing growth to a more respected balance and to continuously diversify deposits sourcing to support balance sheet expansion. In achieving the target, the Bank will enhance its infrastructure and capabilities while at the same time improve its risk management culture and practices at all levels. On the operations side, the Bank will embrace the best practices of risk management with greater emphasis on market, liquidity and operational risks. In this respect, the Bank had endeavored for continuous strengthening and improving of its infrastructure and policies to mitigate and control existing and potential risks arising from changes in commodity prices, cyber security issues, social media technology and financial technology (fintech) influence.
  178. Berlandaskan konteks operasi tahun 2019 yang dibutirkan di atas , Bank akan meneruskan usaha untuk memperkukuhkan pengurusan risiko dalam aspek-aspek berikut: In view of the operating context for 2019 as highlighted above, the Bank’s approach towards risk management continues to strengthen along the following dimensions: •Mengekalkan lingkungan kesanggupan menanggung dan paras toleransi risiko •Ensure key risk areas are within the appetite and tolerance levels Untuk membantu Bank memahami dan menguruskan risiko dengan lebih baik, pengurusan risiko Bank perlu berpandukan rangka kerja kesanggupan menanggung risiko yang menyeluruh, yang mampu menterjemahkan metrik dan kaedah menjadi hasil, pelaporan, dan keputusan perniagaan seharian yang strategik. Agrobank memastikan risikorisiko utama dikekalkan dalam lingkungan kesanggupan menanggung dan paras toleransi yang ditetapkan oleh Lembaga Pengarah. Selain disemak setiap tahun, lingkungan kesanggupan menanggung dan paras toleransi terus dipantau bagi memastikan ia kekal relevan untuk menangani perubahan dalam faktor persekitaran mikro. Kesanggupan menanggung risiko dan paras toleransi juga harus diterapkan dalam semua polisi dan panduan berkaitan risiko. A comprehensive risk appetite framework is the cornerstone of the Bank’s risk management architecture as it helps the Bank to better understand and manage risks by translating risk metrics and methods into strategic decisions, reporting, and day-to-day business decisions. Agrobank will continue to ensure that key risk areas are within the appetite and tolerance levels set by the Board. While bank-level risk appetite and tolerance levels are subject to formal annual reviews, these will be continually monitored for relevance in terms of changing macro-environment factors. Intrinsically, risk appetite and tolerance levels are to be consistently embedded in all risk-related policies and guidelines. •Memperkukuhkan pengurusan risiko secara berterusan • Continuous strengthening of risk management Bank akan menggiatkan usaha dalam melaksanakan peraturan CAFIB (Basel II) yang digariskan dalam struktur pengurusan risiko rasmi Bank, di samping mengawasi tadbir urus, proses dan sistem. Usaha akan diteruskan untuk mengukuhkan kesedaran terhadap risiko, selain menyemai dan mengekalkan budaya risiko yang kukuh dalam Bank, bagi mendorong kesedaran terhadap risiko dan memantapkan disiplin, yang bertujuan untuk mendorong tatalaku yang sesuai dalam tiga aspek budaya: The Bank will continue to intensify its efforts to prepare for the adoption of CAFIB (Basel II) recommendations, which is embedded into the Bank’s formal risk management structure, as well as the governance oversight, processes and systems. The Bank will continue the efforts to reinforce risk awareness as well as foster and maintain a strong risk culture to promote risk awareness, rigor and discipline, which serves to influence appropriate behaviour in three key cultural aspects: – –Leadership in providing clear vision and direction –Membuat keputusan berdasarkan maklumat risiko yang relevan –Consideration of risk relevant information in decisionmaking –Mentadbir urus risiko dan tanggungjawab pengambil risiko, serta memastikan ketelusan dalam aliran maklumat risiko –Risk governance and accountability of risk takers as well as transparent flow of risk information Menetapkan visi dan hala tuju yang jelas Latihan, berkomunikasi secara proaktif dan sesi perkongsian diamalkan untuk membiasakan kakitangan dengan unsurunsur budaya risiko penting, seperti bertanggungjawab atas keputusan yang dibuat, mengambil iktibar daripada peristiwa lepas, dan menerapkan tatalaku risiko dalam kerja seharian. During trainings, proactive internal communications and sharing sessions; staff are sensitised in key areas of risk culture, such as taking accountability for decisions, learning from past actions and applying risk behaviours in daily work situations. • • Membangunkan keupayaan Development of capabilities Untuk memastikan bank kekal relevan dalam persekitaran risiko yang kian berubah pada hari ini, kecekapan bank disemak secara berterusan, di mana fokus pada 2019 akan ditumpukan pada usaha merapatkan sebarang jurang dalam kecekapan, sambil membangunkan kakitangan dalam bidang-bidang perniagaan dan operasi yang relevan bagi memenuhi keperluan Basel III serta keperluan kawal selia lain yang dikeluarkan oleh BNM. Ini adalah sejajar dengan inisiatif Pelan Perniagaan Strategik Bank (SBP) 2016 – 2020 yang bertujuan untuk membangunkan ahli profesional risiko, dan menetapkan platform untuk merapatkan jurang kecekapan. As part of the on-going review to ensure the competencies are relevant in today’s changing risk landscape, the focus for 2019 will continue to be on efforts toward closing any competency gaps and developing staff in the relevant areas of businesses and operations in order to meet Basel III as well as other regulatory requirements issued by BNM. This is in-line with one of the initiatives under the Bank’s Strategic Business Plan (SBP) 2016 – 2020 aimed at building deep specialisation of risk professionals and setting the platform to bridge competency gaps. •Memperkukuhkan pertahanan siber dan pengurusan risiko siber • Memandangkan perkhidmatan perbankan semakin bergantung pada platform digital dan penggunaan data digital, Agrobank juga perlu mempertingkatkan pertahanan siber Strengthen cyber resilience and cyber risk management Cyber resilience and cyber risk management are becoming critical challenges to Agrobank in line with the growing reliance on digital platforms and increasing digital data usage in the banking services. Given this scenario, the LAPORAN TAHUNAN 2018 ANNUAL REPORT 165
  179. PENYATA PENGURUSAN RISIKO STATEMENT ON RISK MANAGEMENT need of the hour , undoubtedly, is to adopt and strengthen cyber resilience. Towards this end, the Bank will continue to strengthen cyber resilience by integrating cyber risk management into the overall business strategy and ongoing improvement plan. dan pengurusan risiko siber mereka. Senario ini memerlukan Bank segera bertindak dengan memperkukuhkan pertahanan siber mereka. Bagi mencapai matlamat ini, Bank akan terus memantapkan pertahanan siber dengan menyepadukan pengurusan risiko siber ke dalam seluruh strategi perniagaan dan pelan penambahbaikan berterusan bagi bank. •Mempertingkatkan sistem pengurusan risiko untuk menjalankan penilaian dan pemantauan risiko secara terperinci dan berintegriti 166 AGROBANK Memandangkan pematuhan dan pengurusan risiko kekal sebagai keutamaan terpenting, Bank komited untuk mempertingkatkannya dalam tiga barisan pemantauan, melalui kawalan risiko secara proaktif. Ini dicapai dengan mengukuhkan sumber analisis Bank melalui sistem pengurusan risiko yang dipertingkatkan. Sistem ini akan memantapkan keupayaan Bank untuk memantau dan mengawal risiko, dengan mengesan risiko lebih awal supaya dapat bertindak balas tepat pada waktunya. As compliance and risk management remain a priority, the Bank is committed to enhance its application of the three lines of defence by employing proactive risk control. This will be achieved by strengthening the Bank’s analytical resources through enhanced risk management system. This system will reinforce the Bank’s ability to monitor and control risks as it is geared to early risk detection and the identification and timely implementation of appropriate countermeasures. • • Lebih berhemat dalam menguruskan portfolio Untuk memastikan pengurusan portfolio yang berhemat, Bank akan terus mempelbagaikan portfolio mereka sambil mengurangkan sebarang pengumpulan risiko yang didapati. Bank menyedari kepentingan memiliki sistem pengelasan pembiayaan yang berkesan bagi mencapai dua objektif, iaitu memantau kualiti aset Bank secara berterusan dan memastikan kecukupan peruntukan aset pada setiap masa. • Mengenal pasti risiko secara proaktif Persekitaran masa kini dan realiti baharu dalam pasaran menyedarkan Agrobank tentang pentingnya merevolusikan keupayaan pengurusan risikonya dengan mengenal pasti risiko secara proaktif. Proses ini melibatkan pengawasan semua risiko semasa dan baharu yang mungkin timbul daripada ketidaktentuan global dan domestik, dari perspektif dalam ke luar, iaitu daripada risiko makroekonomi (luaran) kepada risiko industri dan risiko dalaman. Fokus khusus akan diletakkan pada impak ketidakstabilan Ringgit terhadap kedudukan kredit portfolio pembiayaan Bank, impak ekonomi akibat kejatuhan harga komoditi, ancaman siber baharu dan pengurusan keselamatan maklumat, kepesatan evolusi ICT yang mengubah cara industri perbankan beroperasi dan pengawasan serta pematuhan AML/CMT. •Mewujudkan metodologi dan guna pakai penarafan risiko kredit Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information •Enhancement of risk management system for greater granularity and integrity in risk assessment and monitoring Bank bertekad untuk meneruskan penambahbaikan dalam metodologi penarafan risiko kredit dalaman, dan polisi serta amalan pengurusan risiko kredit. Matlamatnya adalah untuk mencipta nilai melalui metodologi risiko kredit yang bersesuaian, dan polisi serta proses kredit yang konsisten merentasi seluruh Bank. • Menguruskan risiko kecairan secara proaktif Bank menekankan penggunaan amalan-amalan terbaik untuk menanda aras pencapaiannya. Pada tahun 2018, fokus Bank akan ditumpukan pada pematuhan standard Basel III dengan menguruskan risiko kecairan secara proaktif menurut Nisbah Liputan Kecairan (LCR) dan Nisbah Pendanaan Stabil Bersih (NSFR) yang ditetapkan oleh Basel III. Bank komited untuk menetapkan pemegangan Aset Cair Kualiti Tinggi (HQLA) yang mencukupi untuk bertahan daripada kejutan kecairan, jika ada. Bank juga akan terus menambahkan kestabilan dalam profil pendanaan NSFR yang diperlukan. Greater prudence in portfolio management discipline In ensuring prudent portfolio management, the Bank will continue to curtail any build-up of risk as the Bank continues to diversify its portfolio. The Bank is heedful that having an effective financing classification system is an essential tool to achieve the twin objectives of continuous monitoring of the Bank’s asset quality and ensuring that they maintain adequate provisions at all times. • Proactive risk identification In view of the complexity of today’s environment and new market realities, Agrobank is conscious that its risk management capabilities need to evolve to include the adoption of a proactive risk identification process. This process entails scanning all current and emerging risks that may arise from global and domestic uncertainties from an ‘outside-in’ perspective, i.e. from a macroeconomic (external) risks to industry and internal risks. Particular focus will be placed on the impact of Ringgit’s volatility on the credit health of the Bank’s financing portfolio, the economic impact of declining commodities prices, the emerging cyber threats and management of information security, the rapid ICT revolution that is changing the banking industry operations and the oversight and compliance of AML/CMT. •Establish credit applications risk rating methodologies and The Bank endeavours to continuously improve internal credit risk rating methodologies and credit risk management policies and practices, aimed at achieving value creation through congruent credit risk methodologies and consistent credit policies and processes across the Bank. • Proactive management of liquidity risks The Bank places greater emphasis in benchmarking itself against best practices. In 2018, the Bank will focus on Basel III standards with proactive management of liquidity risks as outlined under Basel III for Liquidity Coverage Ratio (LCR) and a Net Stable Funding Ratio (NSFR). The Bank is committed to hold sufficient High-Quality Liquid Assets (HQLA) to withstand liquidity shock, if any. On NSFR, the Bank will continue to improve the stability of its required funding profiles.
  180. PENYATA PEMATUHAN STATEMENT ON COMPLIANCE Sebagai perantara kewangan berasaskan nilai , langkah Agrobank untuk tadbir urus yang baik bermula daripada tanggungjawabnya untuk melindungi dan meningkatkan nilai ekonomi para pelanggan, komuniti dan pihak berkepentingan serta pada masa yang sama, menghasilkan impak kelestarian yang berkekalan kepada ekonomi, masyarakat dan alam sekitar. Dalam merealisasikan hasrat ini, Agrobank komited untuk menguruskan perniagaan dengan melaksanakan dasar pematuhan sepenuhnya dari segi undang-undang dan peraturan di samping mengekalkan nilainilai teras, integriti dan nilai etika dalam organisasi. Agrobank mendukung standard yang tinggi dalam memastikan keselamatan dan kekukuhan operasinya bagi mengurangkan risiko kewangan, reputasi dan operasi yang mungkin timbul daripada ketidakpatuhan undang-undang dan peraturan kawal selia. Piawaian-piawaian ini adalah sejajar dengan garis panduan dan standard yang dikeluarkan oleh Bank Negara Malaysia (BNM) yang merupakan badan berkanun yang mengawal selia dan mengawasi institusi kewangan pembangunan di Malaysia. Integrasi diantara rangka kerja tadbir urus, pengurusan risiko dan kawalan dalaman Bank adalah disokong oleh proses yang tepat bagi menghalang dan mengesan sekiranya berlaku risiko yang melibatkan ketidakpatuhan atau aktiviti-aktiviti penipuan. Prinsipprinsip yang digariskan dalam Polisi Dasar Pematuhan berperanan sebagai panduan penting untuk Agrobank bagi memenuhi keperluan kawal selia yang semakin ketat dan memastikan amalan terbaik industri diterapkan sebaiknya. Rangka kerja tersebut dijadikan asas bagi aspirasi ini demi membentuk fungsi pematuhan yang berkesan. Pemantauan dan Ujian Monitoring and Testing Program Penilaian Risiko Risk Assessment As a value-based financial intermediary, Agrobank’s pursuit of good governance stems from its responsibility to protect and enhance the economic value of its customers, communities and stakeholders and at the same time, generate sustainable impacts to the economy, community and environment. Towards this end, Agrobank is committed to conduct its business in compliance with all applicable laws and regulations whilst maintaining its core values, integrity and ethical standards within the organization. Agrobank upholds high standards in ensuring safety and soundness in its operation to minimize financial, reputational and operational risks that may arise from legal and regulatory non-compliance. These standards conform to the guidelines and standards issued by Bank Negara Malaysia (BNM), which is the authority that regulates and supervises development financial institutions in Malaysia. The Bank’s governance, risk management and internal control frameworks are well integrated and supported with adequate processes to prevent, detect and respond to potential noncompliances or fraudulent activities. The principles outlined in the Compliance Policy serves as an important guide for Agrobank as it continuously evolves to meet increasingly stringent regulatory requirements and industry best practices. The framework provides the foundation for this aspiration, from which the building blocks of the compliance functions are shaped. Polisi, Prosedur dan Pengawalan Berkaitan Internal Controls LAPORAN TAHUNAN 2018 ANNUAL REPORT Komunikasi dan Pelaporan Reporting and Communication Komponen Utama Pengurusan Pematuhan Risiko Key Components in Managing Compliance Compliance Risk Tadbir Urus Governance Latihan Training Teknologi Technology Pengawalan Interaksi Regulatory Interaction 167
  181. PENYATA PEMATUHAN STATEMENT ON COMPLIANCE Pematuhan Tadbir Urus Compliance Governance Bank menjadikan dasar pematuhan sebagai satu amanah dan tanggungjawab yang perlu didukung oleh semua kakitangan Bank . Lembaga Pengarah menerajui usaha ini dengan menerapkan amalan “kepimpinan melalui teladan” berasaskan standard tatalaku, amalan organisasi dan nilai-nilai korporat yang konsisten selaras dengan keseluruhan tahap kesanggupan menanggung risiko. Jawatankuasa Lembaga Pengurusan Risiko (BRMC) bertanggungjawab mengawasi pengurusan risiko pematuhan dengan melaporkan tahap pematuhan terhadap undang-undang, peraturan, polisi dalaman dan prosedur. BRMC menyediakan hala tuju strategik bagi pengurusan risiko pematuhan, termasuk langkahlangkah pengurusan risiko yang perlu dilaksanakan sebelum ia dimaklumkan kepada Lembaga Pengarah pada setiap bulan. Due to its importance, Agrobank inculcates compliance as the responsibility of all staff within the Bank. The Board takes the lead by setting the “tone from the top” and upholding standards of conduct, organizational practices and corporate values that are consistent with the overall risk appetite. The Board Risk Management Committee (BRMC) is responsible to oversee the management of compliance risk where the state of compliance with laws, regulations, internal policies and procedures get reported. BRMC provides the strategic direction for compliance risk management, including necessary mitigation actions prior to notation by the Board on a monthly basis. Pihak pengurusan bertanggungjawab memastikan keberkesanan pengurusan risiko pematuhan yang efektif dengan menguatkuasakan budaya pematuhan yang berkesan meliputi segenap lapisan Bank. Ini dilakukan menerusi pelaksanaan berkesan Rangka Kerja Pematuhan, dan disokong oleh program pematuhan yang ketat serta semakan pematuhan yang dijalankan secara meluas dan berkala merentasi seluruh operasi Bank. Pihak pengurusan juga dipertanggungjawabkan untuk bertindak secara berintegriti, menggalakkan budaya pematuhan Bank dan mengambil tindakan yang sewajarnya sekiranya terdapat pelanggaran undang-undang atau mana-mana dasar. 168 AGROBANK Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Kakitangan dan wakil-wakil Bank adalah bertanggungjawab untuk aktiviti tugasan masing-masing, termasuklah memahami keperluan pematuhan dalam skop tugasannya, mengawal selia kegiatan tugasan sendiri bagi memastikan pematuhan dicapai dengan mengekalkan prinsip-prinsip serta tatalaku beretika dalam urusan kerja. Ini adalah prinsip-prinsip tiga garisan pemantauan yang diterapkan dalam Rangka Kerja Pematuhan Bank. Menerusi kecemerlangan dalam pematuhan dengan prinsip-prinsip VBI yang digariskan, Bank mewujudkan masa depan perbankan yang mampan dan terjamin, seterusnya menghasilkan impak yang positif dan berkekalan; sekaligus meletakkan keutamaan prinsipprinsip VBI sebagai nadi strategi Bank yang mampan. The management is collectively responsible for the effective management of compliance risk by enforcing a strong compliant culture throughout Agrobank. This is undertaken through the effective implementation of a Compliance Framework, supported by rigorous compliance programmes and extensive periodic compliance reviews across all operations. The management is also expected to act and demonstrate with integrity, promote adherence to the Bank’s compliance culture and take appropriate action if laws or policies are breached. Agrobank staff and representatives of the Bank are accountable for his/her own activities, including seeking to understand the compliance requirements within his/her job scope, self-regulating his/her activities to ensure compliance and maintaining ethical principles and behavior in the course of the business. These are the principles of the three lines of defense, which are embedded in the Compliance Framework of the Bank. Through compliance excellence underpinned by the principles of VBI, the Bank creates a sustainable and secure banking future that brings about positive and lasting change; placing VBI principles at the heart of the Bank’s sustainable strategy. BARISAN PERTAHANAN PERTAMA 1ST LINE OF DEFENCE BARISAN PERTAHANAN KEDUA 2ND LINE OF DEFENCE BARISAN PERTAHANAN KETIGA 3RD LINE OF DEFENCE PEMILIK OWNER Unit Perniagaan Business Lines Bahagian Pematuhan Compliance Division Audit Dalaman Internal Audit TANGGUNGJAWAB RESPONSIBILITIES Melalui kawalan pengurusan dan penyeliaan yang sewajarnya, tanggungjawab utama bagi barisan perniagaan adalah mengurus risiko pematuhan yang wujud dalam aktiviti harian dan proses serta sistem perniagaan yang dipertanggungjawabkan ke atas mereka. Bertanggungjawab memastikan segala kawalan untuk mengurus risiko pematuhan adalah memuaskan dan beroperasi sebagaimana dikehendaki. Jabatan juga bertanggungjawab menjalankan penilaian dan pemantauan berterusan terhadap risiko pematuhan yang mungkin dihadapi Bank. Bertanggungjawab menyediakan jaminan bebas kepada Lembaga Pengarah dan Pengurusan Kanan mengenai kualiti dan keberkesanan keseluruhan kawalan dalaman Bank, sistem pengurusan dan tadbir urus risiko serta proses-proses, termasuk yang berkaitan dengan fungsi pematuhan Bank. Through appropriate managerial and supervisory controls, the business lines are primarily responsible for managing compliance risk inherent in the daily running of business activities, processes and systems that they are accountable for. Responsible for ensuring that controls to manage compliance risk are adequate and operating as intended. It is also responsible for undertaking assessment and continuous monitoring of compliance risk posed to the Bank. Responsible for providing independent assurance to the Board and senior management on the quality and effectiveness of the Bank’s overall internal controls, risk management and governance systems and processes, including those related to the compliance function.
  182. Bahagian Pematuhan Compliance Division Bahagian Pematuhan membantu Bank mencapai objektifnya dengan mewujudkan pendekatan yang sistematik dan berdisiplin bagi menilai serta menambah baik integriti dan keberkesanan sistem pengurusan risiko termasuk kawalan bagi tadbir urus , pengurusan dan operasi. Oleh itu, Bahagian Pematuhan bertanggungjawab menyelaras proses mengenal pasti, menilai dan memantau risiko pematuhan pada peringkat Bank serta memastikan bahawa ujian pematuhan dijalankan secara konsisten di seluruh Bank. Bahagian ini diterajui oleh Ketua Pegawai Pematuhan yang dilantik oleh Lembaga Pengarah; berperanan untuk menasihati Lembaga Pengarah, pihak Pengurusan Kanan dan pegawai-pegawai Bank berkenaan perundangan dan kawal selia. The Compliance Division assists Agrobank to accomplish its objectives by bringing a systematic and disciplined approach to evaluate and improve the integrity and effectiveness of the Bank’s systems of risk management and control for governance, management and operational functions. Hence, the Compliance Division is responsible for coordinating the process of identifying, assessing and monitoring of compliance risk at the Bank level and ensures that compliance testing is carried out consistently across the Bank. The division is headed by the Chief Compliance Officer appointed by the Board, whose roles among others include advising the Board, senior management and officers of the Bank on legal and regulatory requirements. Sebagai sebahagian daripada pengurusan risiko pematuhan, Bahagian Pematuhan juga bertanggungjawab bagi melaporkan penilaiannya secara tetap kepada Lembaga Pengarah dan Pengurusan Kanan. Bahagian ini menyediakan program latihan berstruktur dan lain-lain program bagi meningkatkan kesedaran kepada kakitangan di ibu pejabat dan cawangan. Sebagai sebuah institusi perbankan Islam sepenuhnya, pematuhan terhadap prinsip Syariah merupakan sebahagian penting fungsi pematuhan di Bank. Mekanisme kawalan yang berkait dengan keperluan Syariah telah tersedia untuk memastikan Bank mematuhi prinsip Syariah setiap masa. Pelaksanaan kawalan Syariah yang berkesan mampu meningkatkan keyakinan orang ramai dan mengukuhkan reputasi Bank sebagai penyedia perkhidmatan kewangan Islam yang terkemuka. Integriti merupakan salah satu prinsip yang harus dipegang oleh semua kakitangan dalam setiap organisasi, kerana ia ditakrifkan sebagai nilai murni yang bermoral atau beretika serta melakukan perkara yang betul dalam setiap keadaan. Ini adalah bersesuai dengan perkataan ‘I’ dalam nilai PATRIOT Bank; yang mendokong integriti. Untuk menunjukkan komitmen pihak Bank dalam mendukung nilai integriti, bahagian pematuhan telah memulakan Program Integriti dan Kesedaran pematuhan (ICAP). Objektif program ini termasuk mewujudkan kesedaran di kalangan kakitangan tentang kepentingan menegakkan integriti dan pematuhan di tempat kerja. Bahagian pematuhan ini dibahagi kepada empat fungsi seperti berikut: Jabatan Pengawalseliaan Jabatan ini bertanggungjawab untuk menyelia kepatuhan Bank kepada undang-undang, peraturan, garis panduan dan spesifikasi yang berkaitan dengan proses perniagaannya. Ketidak patuhan akan mengakibatkan undang-undang atau denda dikenakan oleh Bank Negara Malaysia (BNM). Oleh itu, fungsi pengawasan dan Tadbir Urus adalah perlu untuk melindungi risiko. As part of managing compliance risk, the Compliance Division is also responsible for reporting its assessment to the Board and senior management on a regular basis. The division provides structured training programmes and other awareness raising programmes for both headquarters and branches to elevate awareness on regulatory and legal requirements. Being a full-fledged Islamic bank, compliance with Shariah principles is an integral part of the compliance function in the Bank. Internal control mechanisms pertinent to Shariah requirements are in place to ensure that the Bank is in compliance with Shariah principles at all times. The effective implementation of Shariah controls promotes public confidence and enhances the Bank’s reputation as a prominent Islamic financial services provider. Integrity is a principle that should be upheld by each staff in every organization, and it is defined by following the moral or ethical convictions and doing the right thing in all circumstances. This corresponds with the word ‘I’ in the Bank’s PATRIOT value; which stands for integrity. To demonstrate the Bank’s commitment to uphold integrity, the Compliance Division has initiated the Integrity and Compliance Awareness Programme (ICAP). The objective of this programme includes creating awareness among the employees on the importance of upholding integrity and compliance in workplace. The Compliance Division is organized into four cross-disciplinary functions as follows: Regulatory Compliance Department The department is responsible to oversee the bank’s adherence to laws, regulations, guidelines and specifications relevant to its business processes. Violations of regulatory compliance often result in legal or penalty imposed by Bank Negara Malaysia (BNM). Hence, Supervision and Governance function are needed to protect such risk on the bank. LAPORAN TAHUNAN 2018 ANNUAL REPORT 169
  183. PENYATA PEMATUHAN STATEMENT ON COMPLIANCE Jabatan Pencegahan Pengubahan Wang Haram /Memerangi Pembiayaan keganasan (AML/CFT) Anti-Money Laundering/Counter Financing of Terrorism (AML/CFT) Department Pihak Bank menyedari tentang kepentingan dalam memelihara integriti sistem kewangan dengan melindungi Bank daripada menjadi mangsa penjenayah atau individu/entiti yang tidak meragukan dan boleh mengakibatkan kemudaratan atau menyebabkan kerugian kepada pelanggannya, kerajaan, masyarakat dan dunia secara amnya. Sehubungan dengan itu, Jabatan ini bertanggungjawab untuk melaksana dan memantau langkah-langkah bagi mencegah pengubahan wang haram serta pembiayaan aktiviti berunsur keganasan sepertimana yang digariskan dalam Akta Pencegahan Pengubahan Wang Haram, Akta Pencegahan Pembiayaan Keganasan dan Hasil Aktiviti Haram 2001 dan lain-lain garis panduan yang dikeluarkan oleh BNM. The Bank recognizes that it plays a critical role in protecting the integrity of the financial system to prevent the Bank from being used by criminals or unscrupulous individuals or entities to commit harm or losses to its customers, the government, society and the world at large. In this regard, this department is responsible for implementing and monitoring measures to prevent money laundering and financing of terrorism in accordance with the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, and other guidelines issued by BNM. Jabatan Pengawasan Kredit (CRSD) Keberkesanan dan kecekapan dalam aspek keseluruhan kualiti aset, pengawasan dan kredit yang berkaitan dengan pematuhan dipantau dan diselia oleh Jabatan ini. Pembiayaan termasuk konsumer dan korporat diurus dengan berpaksikan pematuhan kepada rangka kerja dasar dan standard kredit yang ditentukan oleh Bank. Seksyen Shariah Review (SRS) 170 AGROBANK Seksyen ini menjalankan penilaian berkala ke atas pematuhan Syariah merentasi semua aktiviti dan operasi Bank dengan objektif untuk memastikan aktiviti-aktiviti Bank tidak melanggar prinsip Syariah. Fungsi ini melibatkan pemeriksaan dan penilaian tahap pematuhan mengikut prinsip Syariah, langkah pemulihan dan penambahbaikan bagi mengatasi ketidakpatuhan serta mekanisme kawalan untuk mengelakkan ketidakpatuhan berulang. Credit Supervision Department (CRSD) The effectiveness and efficiency in the aspect of overall asset quality, surveillance and credit process related to compliance is monitored and supervised by this particular department. Financing inclusive of consumer and corporate are put at hand to safeguard the soundness to compliance towards the bank’s credit standard and policy. Shariah Review Section (SRS) The Shariah Review performs regular assessment on Shariah compliance across all activities and operations of the Bank with the objective of ensuring that the activities do not contravene Shariah requirements. The function involves the examination and evaluation of the Bank’s level of compliance with Shariah requirements, remedial and rectification measures to resolve non-compliance and control mechanisms to avoid recurrences. Lembaga Pengarah Board of Directors Jawatankuasa Syariah Shariah Committee Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Jabatan Pematuhan Compliance Division Jawatankuasa Lembaga Pengurusan Risiko Board Risk Managemnet Committee Ketua Pegawai Pematuhan Chief Compliance Officer Jabatan Pemantauan Kredit Credit Supervision Department Presiden/Ketua Pegawai Eksekutif President/Chief Executive Officer Timbalan Ketua Pengawai Pematuhan Deputy Chief Compliance Officer Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Jabatan AML/CFT AML/CFT Department Penyata Kewangan 2018 05 2018 Financial Statement Jabatan Pengawalseliaan Regulatory Compliance Department Maklumat Tambahan Unit Niaga Business Unit 06 Additional Information Pegawai Pematuhan Dalaman Embedded Compliance Officer Wakil Pematuhan Compliance Representative Seksyen Shariah Review Shariah Review Section
  184. Inisiatif Utama pada 2018 Key Initiatives in 2018 Selaras dengan kemajuan strategi Bahagian Pematuhan , inisiatif Bahagian ini bagi tahun 2018 adalahmeneruskan aktiviti-aktiviti yang sejajar dengan keutamaan pelan perniagaan Bank. Oleh yang demikian, Jabatan pematuhan telah dinaik taraf kepada Bahagian bagi memantapkan lagi objektif program pematuhannya. Pengstrukturan kemasukan Jabatan Penyeliaan Kredit (CRSD) ke dalam Bahagian Pematuhan mempertingkatkan fungsi pemantauan pembiayaan bank. As the Compliance Division progresses through the strategies, actions and initiatives of 2018; activities are continuously aligned with the priorities of the Bank’s business plan. As such, the Compliance Department was upgraded to a division status to further strengthen its objective of its compliance programmes. The addition of Credit Supervision Department (CRSD) into Compliance Division enhances the monitoring function of the bank’s financing. Inisiatif utama lain adalah termasuk pemantapan bidang yang berkaitan dengan pengenalan dasar dan Tadbir Urus bahagian di bawah Jabatan AML/CFT. Secara alternatifnya, Jabatan Pengawalseliaan telah memasukkan bidang operasi di bawah tanggungjawabnya untuk menyokong keperluan pematuhan, yang telah dicapai melalui kerjasama dengan Jabatan Pengurusan Cawangan (BMD). Other key initiatives include the enhancement of other related areas such as the introduction of Policy and Governance Section under AML/CFT Department. The Regulatory Compliance Department alternatively has included operational areas under its purview to support the needs to comply, which was achieved by collaborating with the Branch Management Department (BMD). Penambahbaikan dasar telah mengukuhkan integriti pematuhan bank melalui proses-proses yang betul, dokumentasi, kawalan pemantauan sekaligus meningkatkan kesedaran pematuhan. Sebagai contoh, Laporan Pematuhan yang menyeluruh membantu mengurangkan risiko ketidakserahan. Di samping itu, penilaian memprofil risiko yang dibuat oleh Jabatan AML/CFT telah membantu untuk menyingkir risiko salah nyata maklumat pelanggan bank, yang mana ianya tertakluk kepada penalti sekiranya tidak dipatuhi oleh pihak Bank. Policy enhancements strengthen the bank’s compliance integrity through proper processes, documentation, monitoring control and thus broaden the awareness for the need to comply. For instance, unification of compliance reporting helps reduce the risk of non-submission. Additionally, risk profiling assessment done by AML/CFT Department has helped to eliminate the risk of misrepresentation of the bank’s customer information, which is subjected to penalty if not adhered by the Bank. Bahagian Pematuhan terus menyokong dan mengurus pematuhan risiko melalui beberapa saluran perniagaan dan operasi. Oleh itu, satu sesi pertemuan dengan Embedded Compliance Officer (ECO) dan Compliance Representative (CR) telah diadakan untuk mendapatkan maklum balas daripada unit-unit perniagaan yang terlibat. Selain itu, Bahagian ini bekerjasama dengan JabatanJabatan lain untuk meningkatkan tahap pematuhan bank seperti isu-isu yang berkaitan dengan kerahsiaan, pendedahan yang dibenarkan dan pihak yang berkaitan. Program-program berterusan untuk melengkapkan kesediaan kakitangan bagi cabaran dan jangkaan ke atas pematuhan turut dirangka. Pada tahun ini, 12 kakitangan dari Bahagian ini telah berjaya melengkapkan kursus Sijil yang ditawarkan oleh Asian Institute of Chartered Bank (AICB). Kemuncak tahun 2018 ialah penekanan terhadap perlaksanaan integriti dan Program Kesedaran Pematuhan (ICAP) dengan objektif untuk memberi kesedaran terhadap pematuhan dan integriti. Pelbagai program berkongsepkan peraduan telah diadakan dengan jayanya melalui sokongan dan penyertaan kakitangan dari wilayah-wilayan Bank, pusat perniagaan, dan cawangan. Program ini juga merupakan platform untuk meningkatkan pengetahuan kakitangan Bank mengenai kepentingan integriti dan pematuhan. The Compliance Division continues to support and manage compliance risk of business and operations through several channels. As such, an engagement session with Compliance Representative and Embedded Compliance Officer was introduced to gain feedbacks and updates from related business units. Furthermore, Compliance Division worked closely with other departments to enhance the bank’s compliance areas such as issues related to secrecy, permitted disclosure and connected party. Continuous programmes have been formulated to equip staff readiness on the challenges and expectation of compliance. During the year, 12 staffs from Compliance Division successfully completed certification courses offered by the Asian Institute of Chartered Bankers (AICB). The highlight of year 2018 was the implementation of the Integrity and Compliance Awareness Programme (ICAP) with an objective to create awareness towards compliance and integrity. The programme through its various contests was successfully held with the business units’ full support and participation from staff from different regions, business centers, and branches. The programme also acts as a platform to enhance the Bank staff’s understanding on the importance of integrity and compliance. LAPORAN TAHUNAN 2018 ANNUAL REPORT 171
  185. PENYATA PEMATUHAN STATEMENT ON COMPLIANCE Keutamaan Strategik dalam Tahun 2019 Strategic Priorities in 2019 Agrobank terus menekankan kepentingan budaya pematuhan dan prasarana sebagai sebahagian daripada keutamaan strategik Bank menguruskan risiko ketidakpatuhan . Bahagian Pematuhan akan terus bergerak proaktif dalam semua aspek operasi Bank bagi memastikan budaya pematuhan kekal kukuh untuk melindungi pelanggan, pemegang saham dan kakitangan Bank. Fungsi tambahan pematuhan bank yang bersepadu akan terus dilaksanakan sebagai elemen strategik perniagaan dengan bekerjasama bersama unit-unit perniagaan bagi memastikan bahawa bank dikendalikan mengikut rangka kerja yang ditetapkan oleh pihak penguatkuasa peraturan. Agrobank continues to invest strongly in its compliance culture and infrastructure as part of the Bank’s strategic priority in managing risk of non-compliance. The Compliance Division will continue to take a proactive role in all aspects of the Bank’s operations to assure that a strong compliance culture is in place to protect the Bank’s customers, shareholders and employees. The Bank will further integrate its compliance function as a strategic element of the business by working together with the business units to ensure that the bank is operated within the framework prescribed by our regulators. Keutamaan untuk Bahagian Pematuhan dalam tahun 2019 adalah untuk mempertingkatkan peranan Embedded Compliance Officer (ECO) dan Compliance Representative (CR) agar lebih efektif dengan integriti yang tinggi. Penglibatan dengan pengawalseliaan akan juga diberi keutamaan untuk mereka memahami jangkaan kerana matlamat utama pematuhan adalah untuk melindungi bank daripada mana-mana unsur ketidakpatuhan. 172 AGROBANK Peningkatan sistem AML/CFT juga akan menjadi salah satu fokus utama dalam tahun 2019 bagi mengurangkan risiko ketidakpatuhan dengan memprofil pelanggan yang berisiko tinggi. Menjalankan proses pembersihan data dapat membantu menangani isu-isu yang berkaitan dengan integriti data berdasarkan risiko yang tepat dan jenis pekerjaan. Bahagian Pematuhan akan terus memperbaiki kaedah untuk mencegah pengubahan wang haram dan pembiayaan keganasan selaras dengan program ‘Know Your Customer’ (KYC). Pihak bank akan terus meningkatkan dan menggalakkan budaya pematuhan yang kukuh melalui pelbagai program Bersama dengan Jabatan Penyeliaan Kredit (CRSD) yang akan terus memantau dan mengurangkan potensi pengurangan kredit. Di samping itu, Bahagian ini juga akan menangani isuisu pembiayaan yang melibatkan pihak-pihak berkaitan dan akan terus bekerjasama dengan unit-unit perniagaan serta wilayah-wilayah Bank bagi memupuk kesedaran tentang pematuhan kredit. Ini adalah bertepatan dengan objektif Bahagian Pematuhan, di mana fokus Bahagian ini adalah untuk menjadi salah sebuah pusat pelaporan kredit yang berkualiti tinggi, dan tidak hanya tertumpu dalam perkara-perkara yang melibatkan pengawalseliaan di bawah AML/CFT sahaja. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Pihak Bank akan terus meningkatkan dan menggalakkan budaya pematuhan yang kukuh melalui pelbagai saluran, program dan sesi perjumpaan untuk memenuhi permintaan dalam industri ini,dan seterusnya membawa kepada pengenalan pendekatan pematuhan baharu dari semasa ke semasa. Berdasaskan peningkatan keperluan untuk mendapatkan profesional yang berpengalaman selaras dengan kemajuan dan cabaran teknologi, pihak Bank akan terus meningkatkan kecekapan bagi meluaskan perspektif di samping menambah baik pengetahuan dan kecekapan pegawai pematuhan. The top priority for the Compliance Division in 2019 is to enhance the role of Embedded Compliance Officer (ECO) and Compliance Representatives (CR) to better serve the Bank with high integrity. The engagement with regulators will also be given higher priority to better understand their expectation as the sole objective of compliance is to protect the bank from any elements of non-compliance. Enhancement of AML/CFT system will also be one of main focus in 2019 to reduce the risk of non-compliance associated with risk profiling especially on high risk customer. Data cleansing exercise on the other hand, would help to address issues related to data integrity based on accurate risk and occupation type. The Compliance Division will continue to refine its measurements to prevent money laundering and the terrorism financing in accordance with ‘Know Your Customer’ (KYC) programme. The Compliance Division, along with the Credit Supervision Department (CRSD) will continuously monitor and alleviate potential credit related breaches. In addition, the department will also address financing issues involving connected parties and will continue to work closely with other business units and regions to create awareness on credit compliance. This supports the enhancement of the Compliance Division’s objective, which focuses on becoming one of the centers for high quality credit reporting, not only focusing on Regulatory and AML/CFT matters. The bank will continue to enhance and promote strong compliance culture via various channels, programmes and engagement sessions to cater to the demands of this rapidly growing industry, which begets the introduction of new compliance approaches from time to time. Premised on the demands to increase professional competency along with the advancement of technologies and complexities, the Bank will continue to enhance talent competency within the Compliance Division to broaden their perspectives while enhancing the knowledge and competency of compliance officers.
  186. PENYATA KAWALAN DALAMAN STATEMENT ON INTERNAL CONTROL Tanggungjawab Responsibility Lembaga Pengarah memperakui bahawa Bank adalah bertanggungjawab untuk melaksanakan satu sistem kawalan dalaman yang kukuh dan berkesan , yang mana adalah kompeten, mencukupi dan menyeluruh. The Board of Directors (Board) acknowledges that the Bank is responsible for implementing a sound and effective internal control system which is competent, adequate and holistic. Elemen pengurusan risiko yang menjadi asas rangka kerja kawalan dalaman Bank memberi jaminan yang wajar untuk melindungi Bank dari salah nyata yang ketara berkaitan maklumat dan rekod kewangan, kerugian kewangan atau penyelewengan dan salah urus. Risiko-risiko yang menjejaskan Bank dikenalpasti, dinilai dan ditangani melalui struktur dan proses kawalan yang bersesuaian. Semakan berkala dan pengemaskinian mengenai struktur dan proses dilakukan seiring dengan perubahan yang timbul dalam persekitaran perniagaan dan keadaan operasi dalaman. Proses ini telah dilaksanakan secara berterusan sepanjang tahun kewangan. Lembaga Pengarah memperakui peranan pihak pengurusan dalam pelaksanaan polisi dan prosedur kawalan risiko dengan mengenalpasti risiko-risiko yang dihadapi serta mengambil langkah-langkah yang sewajarnya untuk mengawal dan mengurangkan risiko berkenaan. Proses Kawalan Dalaman Utama Proses-proses utama yang berkaitan telah diwujudkan bagi menilai kemantapan dan integriti sistem kawalan dalaman termasuk perkara-perkara berikut: a)Kerangka kerja yang jelas dengan pemberian kuasa dan had kuasa yang sesuai ditetapkan berkaitan dengan operasi perbankan harian, pembiayaan, penggemblengan deposit, pelaburan, perolehan dan pelupusan aset. b)Pematuhan pada kawalan dalaman, undang-undang dan peraturan yang berkaitan telah ditetapkan di dalam manual operasi, garis panduan dan arahan yang dikeluarkan oleh Bank. Semua ini dikemaskini dari semasa ke semasa seiring dengan perubahan persekitaran perniagaan atau keperluan undang-undang. c)Pengurusan dan pemantauan ke atas bidang teras Bank telah diperkukuhkan lagi melalui penubuhan jawatankuasa operasi yang merangkumi Jawatankuasa Pengurusan, Jawatankuasa Pengurusan Teknologi Maklumat, Jawatankuasa Aset Liabiliti, Jawatankuasa Pengurusan Kredit, Jawatankuasa Pengurusan Risiko, Jawatankuasa Pengurusan Risiko Operasi, Jawatankuasa Pengurusan Audit dan Jawatankuasa Pengurusan Perolehan. The risk management elements underpinning the Bank’s internal control framework provides reasonable assurance of protecting the Bank against material misstatement of financial information and records, financial losses or fraud and mismanagement. Risks affecting the Bank are identified, assessed and addressed by the appropriate control structures and processes. A regular review and update on the structures and processes was carried out in line with the changes arising within the business environment and internal operating conditions. This on-going process has been in place for the whole financial year under review. The Board acknowledges the management’s function in the implementation of the policies and procedures on risk and control by identifying and assessing the risks faced, and in the design, operation and monitoring of appropriate internal controls to mitigate and control these risks. Key Internal Control Processes Pertinent key processes have been established to review the adequacy and integrity of the system of internal controls which includes the following: a)A clearly defined framework with appropriate empowerment and authority limits are in place with respect to the day-to-day banking operations, financing, deposit mobilisation, investment, acquisition and disposal of assets. b)Compliance with internal controls and the relevant laws and regulations are set out in operation manuals, guidelines and directives issued by the Bank. These are updated from time to time in tandem with changes in the business environment or regulatory requirements. c)Management and oversight of the Bank’s core areas have been enhanced with the establishment of operational committees which includes the Management Committee, Management Information Technology Committee, Asset Liability Committee, Management Credit Committee, Management Risk Committee, Operational Risk Management Committee, Management Audit Committee and Management Procurement Committee. LAPORAN TAHUNAN 2018 ANNUAL REPORT 173
  187. PENYATA KAWALAN DALAMAN STATEMENT ON INTERNAL CONTROL d ) Fungsi Audit Dalaman Audit Dalaman berfungsi untuk memberi pandangan yang bebas dan objektif serta khidmat rundingan yang direka untuk menambah nilai dan menambahbaik operasi Bank. Pencapaian matlamat Bank dipermudahkan melalui pendekatan audit yang sistematik dan berdisiplin. Berdasarkan pendekatan berasaskan risiko, keutamaan semakan audit terletak pada risiko dan kawalan yang terdapat pada entiti-entiti yang diaudit dalam lingkungan kelompok audit yang telah ditetapkan. Bahagian Audit Dalaman melapor secara fungsi kepada Jawatankuasa Lembaga Audit dan secara pentadbirannya kepada PCEO dan Jawatankuasa Shariah. 174 AGROBANK Keberkesanan tadbir urus, pengurusan risiko dan proses-proses kawalan dinilai menerusi pandangan dan pendapat samada risiko yang dikenalpasti boleh menghalang pencapaian matlamat tertentu. Seiring dengan proses yang dilaksanakan, penambahbaikan dicadangkan bagi meningkatkan struktur dan amalan tadbir urus. Keputusan daripada pengauditan dan cadangan pembetulan dilaporkan dan dibincangkan di peringkat Jawatankuasa Pengurusan Audit dan Jawatankuasa Lembaga Audit manakala Laporan Audit Shariah termasuk temuan audit dan cadangan pembetulan diperakui dan dibincangkan di peringkat Jawatankuasa Shariah. e) Jawatankuasa Pengurusan Audit (MAC) Jawatankuasa Pengurusan Audit diwujudkan bagi memastikan segala temuan audit serta faktor penyebab yang dibangkitkan oleh juruaudit dalaman dan juruaudit luaran serta pihak pengawalseliaan diselesaikan dalam masa yang ditetapkan. Tindakan-tindakan pembetulan yang diambil untuk semua temuan audit dipantau melalui mesyuarat MAC. Minit mesyuarat MAC berserta laporan audit yang berkaitan seterusnya akan dibentangkan kepada Jawatankuasa Lembaga Audit (BAC) sebagai maklumat, perbincangan dan arahan untuk tindakan selanjutnya (sekiranya perlu). Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information f)Pelan perniagaan tahunan disediakan oleh unit-unit perniagaan Bank dan diluluskan oleh Lembaga Pengarah. Belanjawan tahunan juga diluluskan oleh Lembaga Pengarah. Prestasi sebenar perniagaan dinilai berasaskan belanjawan yang diluluskan di mana penjelasan diberi bagi perbezaan yang ketara melalui laporan bulanan kepada Lembaga Pengarah. g)Garis panduan yang teratur bagi urusan pelantikan dan penamatan khidmat kakitangan, program latihan rasmi, penilaian prestasi tahunan dan suku tahunan dan lain-lain prosedur yang berkaitan disediakan bagi pembangunan latihan kompetensi kakitangan bagi membolehkan kakitangan melaksanakan tugas dan tanggungjawab dengan berkesan. Garis panduan mengenai pengurusan penggantian juga disediakan bagi memastikan saluran bakat tersedia dan sedia untuk menanggung peranan kepimpinan masa depan bagi kemampanan perniagaan. d) Internal Audit Function The internal audit function provides independent, objective assurance and consulting services designed to add value and improve the Bank’s operations. Accomplishment of the Bank’s objectives is facilitated through a systematic and disciplined audit approach. Premised on the risk-based approach, prioritisation of the audit review lies in the risk and control associated with auditable entities within the established audit universe. The Internal Audit Division reports functionally to the Board Audit Committee (BAC) and administratively to the PCEO and Shariah Committee. The effectiveness of the governance, risk management and control processes is assessed by forming opinions on whether the identified risks may hinder the fulfilment of particular objectives. In tandem with the process, improvements are advocated to enhance the governance structure and practices. The results of the audits conducted and the recommendations are reported and deliberated at the Management Audit Committee (MAC) and BAC meetings whilst the Shariah Audit Reports including findings and recommendations are notified and deliberated at the Shariah Committee meetings. e) Management Audit Committee (MAC) MAC is established to ensure timely rectification of any audit findings and the underlying causes highlighted by the internal and external auditor and regulators. The status of rectification of all audit findings and the mitigation actions taken are closely monitored by MACs at every meeting. The MAC minutes of meeting together with the relevant audit reports are subsequently tabled to the Board Audit Committee (BAC) for information, deliberation and direction for further action where required. f)An annual business plan is prepared by the Bank’s business units and approved by the Board. Annual budgets are also approved by the Board. Actual business performances are assessed against the approved budget whereby explanations are provided on significant variances through monthly reporting to the Board. g)Proper guidelines for hiring and termination of staff, formal training programmes, annual and quarterly performance appraisals and other relevant procedures are in place for the staff competency development training to enable effective discharge of duties and responsibilities. A guideline on succession management is also in place to ensure available and ready talent pipeline to assume future leadership roles for business sustainability.
  188. h )Fungsi pemantauan Lembaga Pengarah diperkukuhkan lagi melalui tanggungjawab yang diwakilkan kepada beberapa jawatankuasa Lembaga iaitu Jawatankuasa Lembaga Pengurusan Risiko, Jawatankuasa Lembaga Audit, Jawatankuasa Lembaga Kredit & Pelaburan, Jawatankuasa Lembaga Teknologi Maklumat, Jawatankuasa Pencalonan dan Jawatankuasa Ganjaran, di mana kesemuanya mempunyai terma rujukan rasmi. Jawatankuasa-jawatankuasa ini diberi kuasa untuk meneliti semua bidang di dalam skop masingmasing dan melaporkan kepada Lembaga Pengarah beserta cadangan masing-masing. i)Polisi Pengurusan Penyelewengan dan Pemberitahuan Maklumat yang diluluskan oleh Lembaga Pengarah menyediakan saluran bagi kakitangan untuk melaporkan penyelewengan atau disyaki berlaku penyelewengan, salah laku atau pelanggaran polisi dan peraturan Bank tanpa melalui proses laporan yang rumit. Hasil siasatan dibentangkan oleh Ketua Pegawai Audit Dalam kepada Jawatankuasa Lembaga Audit untuk perbincangan dan tindakan lanjut. j) Keselamatan Teknologi Maklumat Infrastruktur keselamatan dan teknologi adalah amat penting bagi memastikan kerahsiaan, keupayaan integriti dan kebolehan menguruskan operasi Bank. Bank telah mewujudkan pendekatan kawalan berasaskan risiko yang merangkumi polisi, piawaian, prosedur dan garis panduan untuk memastikan data dan sistem maklumat adalah dilindungi daripada ancaman seperti kecuaian, penyelewengan, gangguan perkhidmatan serta bencana alam. Sejajar dengan peningkatan ancaman serangan siber samada di peringkat tempatan mahupun global, pihak Bank telah mewujudkan sebuah Manual Operasi ‘Polisi Keselamatan Teknologi Maklumat & Komunikasi’ bagi memastikan proses pemantauan dan kawalan dapat diambil tindakan segera untuk semua serangan siber. h)The Board’s oversight function is further enhanced through delegated responsibilities in several Board Committees, namely the Board Risk Management Committee, Board Audit Committee, Board Credit and Investment Committee, Board Information Technology Committee, Board Nomination and Remuneration Committee, all of which have formalised terms of reference. These Committees have the authority to examine all matters within their scope and report to the Board with their recommendations. i)The Fraud Management and Whistle-blowing Policy which was approved by the Board provides an avenue for employees to report actual or suspected malpractice, misconduct or violations of the Bank’s policies and regulations in lieu of an elaborate reporting process. The outcome of the investigation is reported to BAC by Chief Internal Audit, for deliberation and subsequent actions. j) Information Technology (IT) Security The security and technology infrastructure is crucial to ensure the confidentiality, integrity and availability to maintain the Bank’s business operations. The Bank has established a risk based control approach which includes documented policies, standards, procedures and guidelines as to ensure that the information systems and data are properly safeguarded and adequately protected from major potential threats such as errors, frauds, service disruptions and natural disasters. With the increasing of cyber threats globally and locally, the Bank has established an Operation Manual ‘Polisi Keselamatan Teknologi Maklumat & Komunikasi’ to ensure that there is a structured process of prompt monitoring and timely response to cyber threats and incidents. LAPORAN TAHUNAN 2018 ANNUAL REPORT 175
  189. Fakta-fakta Tentang INDUSTRI PERIKANAN Industri perikanan Malaysia dijangka mencapai kadar pertumbuhan tahunan 3 .7% bagi 2018. Permintaan bagi ikan dijangka meningkat kepada 1.9 juta mt menjelang 2020, dengan pertumbuhan tahunan 3.8%. Sejajar dengan Rangka Tindakan Akuakultur oleh MOA, sumbangan akuakultur dijangka meningkat kepada 50% atau 1.76 juta mt daripada jumlah pengeluaran ikan menjelang 2020. Nilai eksport bagi akuakultur termasuk produk ikan dijangka meningkat kepada RM3.2 bilion pada 2020. Harga borong bagi ikan laut ternakan menunjukkan trend menaik sepanjang 7 tahun yang lepas. Sebagai pembekal protein utama bagi penduduk Malaysia sejak berdekad lamanya, sektor perikanan memainkan peranan yang penting. Umumnya, perikanan merangkumi dua komponen utama, iaitu perikanan tangkapan laut dan akuakultur. Komponen terbesar tangkapan ikan adalah daripada perikanan tangkapan, sementara yang lain berpunca daripada akuakultur. Bagaimanapun, industri akuakultur semakin meningkat sebagai enjin pertumbuhan ekonomi domestik memandangkan ia mampu mengeluarkan lebih banyak tangkapan bernilai tinggi seperti udang. Industri ini turut dikenal pasti sebagai salah satu daripada dua cara untuk meningkatkan jaminan makanan,
  190. Pengeluaran Ikan Laut (tan) Marine Fish production (tonnes) 2018 2017 1,495,909 1,483,732 Agrobank menawarkan rangkaian produk pembiayaan yang memenuhi keperluan dan tujuan industri perikanan. Ini merangkumi pembiayaan mikro (MUS1M-i), Pembiayaan Berjangka, Pembiayaan Modal Kerja-i (Tawarruq), Tabung Untuk Makanan (3F) dan Pengeluaran Akuakultur - Air Tawar (tan) Aquaculture production - Fresh Water (TONNES) Machinery & Equipment Financing-i (MAEF-i). The fishery sector has for decades been playing an important role as a major supplier of animal protein to the Malaysian population. The fisheries are generally considered to consist of 2018 2017 two major components, namely marine capture fisheries and aquaculture. The greatest bulk of the fish landings has always come from the capture fisheries, with the rest coming from 103,083 103,245 aquaculture. However, the aquaculture industry is increasingly regarded as an engine of growth for the domestic economy as it is able to produce high value species such as shrimp. It has been identified as one of the ways to enhance food security, increase export revenues of Malaysia, and promote a better life and standard of living for rural communities. The fisheries Pengeluaran Akuakultur - Air Payau (TAN) Aquaculture production - Brackish Water (TONNES) industry extends to the production of Made in Malaysia agro produce that supports and sustains cottage industries in fishing communities. Investment in upgrading infrastructure and support services for the industry is ongoing menambahkan pendapatan eksport bagi and continues to be a priority for the nation. Malaysia, dan menggalakkan gaya hidup dan taraf kehidupan yang lebih baik bagi komuniti luar bandar. Industri perikanan merangkumi pengeluaran hasil tani Buatan Malaysia yang menyokong dan mengekalkan industri luar bandar dalam komuniti perikanan. Pelaburan dalam infrastruktur dan perkhidmatan sokongan bagi industri ini dijalankan secara berterusan danof financing kekalproducts sebagai keutamaan Agrobank offers a range suitable for the fisheries industry, depending on needs and purpose. These range from micro financing (MUS1M-i), negara. Term Financing, Working-capital-i (Tawarruq), Fund for Food (3F) and even Machinery & Equipment Financing-i (MAEF-i). 2018 2017 343,513 335,490 Sumber: Jabatan Perikanan Source: Department of Fisheries
  191. FACTS ABOUTPERIKANAN FISHERY Fakta-fakta Tentang INDUSTRI INDUSTRY Industri perikanan Malaysia dijangka mencapai kadar pertumbuhan tahunan 3 .7% bagi 2018. • Malaysia’s fishery industry is expected to achieve an • Demand for fish is expected to increase to 1.9 million of 3.8%. Permintaan bagiannual ikan dijangka meningkat kepada 1.9 jutafor mt menjelang growth rate of 3.7% 2018. 2020, dengan pertumbuhan tahunan 3.8%. Sejajar dengan Rangka Tindakan Akuakultur oleh MOA, sumbangan akuakultur mt byjuta 2020 with an annual growth dijangka meningkat kepada 50% atau 1.76 mt daripada jumlah pengeluaran ikan menjelang 2020. • In line with the Aquaculture Blueprint by MOA, the to increase to 50% or 1.76 million mt of total fish production by 2020. Harga borong bagi ikan laut ternakan menunjukkan trend menaik Nilai eksport bagi akuakultur termasuk produk dijangka contribution of aquaculture isikan expected meningkat kepada RM3.2 bilion pada 2020. sepanjang 7 tahun yang lepas. • Export value of aquaculture including fish products is expected to increase to RM3.2 billion in 2020. • The wholesale price for cultured marine fish has displayed an increasing trend for the last 7 years. Sebagai pembekal protein utama bagi penduduk Malaysia sejak berdekad lamanya, sektor perikanan memainkan peranan yang penting. Umumnya, perikanan merangkumi dua komponen utama, iaitu perikanan tangkapan laut dan akuakultur. Komponen terbesar tangkapan ikan adalah daripada perikanan tangkapan, sementara yang lain berpunca daripada akuakultur. Bagaimanapun, industri akuakultur semakin meningkat sebagai enjin pertumbuhan ekonomi domestik memandangkan ia mampu mengeluarkan lebih banyak tangkapan bernilai tinggi seperti udang. Industri ini turut dikenal pasti sebagai salah satu daripada dua cara untuk meningkatkan jaminan makanan,
  192. Pengeluaran Ikan Laut (tan) Marine Fish production (tonnes) 2018 2017 1,495,909 1,483,732 Pengeluaran Akuakultur - Air Tawar (tan) Aquaculture production - Fresh Water (TONNES) The fishery sector has for decades been playing an important role as a major supplier of animal protein to the Malaysian population. The fisheries are generally considered to consist of 2018 2017 two major components, namely marine capture fisheries and aquaculture. The greatest bulk of the fish landings has always come from the capture fisheries, with the rest coming from 103,083 103,245 aquaculture. However, the aquaculture industry is increasingly regarded as an engine of growth for the domestic economy as it is able to produce high value species such as shrimp. It has been identified as one of the ways to enhance food security, increase export revenues of Malaysia, and promote a better life and standard of living for rural communities. The fisheries Pengeluaran Akuakultur - Air Payau (TAN) Aquaculture production - Brackish Water (TONNES) industry extends to the production of Made in Malaysia agro produce that supports and sustains cottage industries in fishing communities. Investment in upgrading infrastructure 2018 2017 and support services for the industry is ongoing and continues to be a priority for the nation. 343,513 335,490 Agrobank offers a range of financing products suitable for the fisheries industry, depending on needs and purpose. These range from micro financing (MUS1M-i), Term Financing, Working-capital-i (Tawarruq), Fund for Food (3F) and even Machinery & Equipment Financing-i (MAEF-i). Sumber: Jabatan Perikanan Source: Department of Fisheries
  193. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 2018 FINANCIAL STATEMENTS 179 Directors ’ Report 183 Statement by Directors 183 Statutory Declaration 184 Shariah Committee’s Report 185 Independent Auditors’ Report 187 Statement of Comprehensive Income 188 Statement of Financial Position 189 Statement of Changes in Equity 190 Statement of Cash Flows 192 Notes to the Financial Statements
  194. DIRECTORS ’ REPORT The directors have pleasure in presenting their report together with the audited financial statements of the Bank for the financial year ended 31 December 2018. PRINCIPAL ACTIVITIES The principal activities of the Bank are banking, financing, investment and related services as provided under the Bank Pertanian Malaysia Berhad Act, 2008. On 1 July 2015, the Bank became a full fledged Islamic bank whereby all its activities are now conducted in compliance with Shariah principles. RESULTS RM’000 Profit before tax and zakat Tax Zakat 190,251 (51,513) (4,756) Net profit for the year 133,982 There were no material transfers to or from reserves or provisions during the financial year other than as disclosed in the financial statements. In the opinion of the directors, the results of the operations of the Bank during the financial year were not substantially affected by any item, transaction or event of a material and unusual nature. DIVIDENDS Since the end of the previous financial year, the amount of dividends paid or proposed by the Bank are as follows: In respect of the financial year ended 31 December 2017, a final dividend of 2.55 sen on 1,000,000,000 ordinary shares declared on 4 May 2018 and paid on 25 May 2018 RM’000 25,500 At the forthcoming Annual General Meeting, a final single tier dividend in respect of the current financial year ended 31 December 2018 of 2.00 sen on 1,000,000,000 ordinary shares amounting to dividend payable of RM20,000,000 will be proposed for shareholder’s approval. The financial statements for the current financial year do not reflect this proposed dividend. Such dividend, if approved by the shareholder, will be accounted for in equity as an appropriation of retained earnings in the financial year ending 31 December 2018. ISSUE OF SHARES AND DEBENTURES The Bank has not issued any new shares or debentures during the financial year. SHARE OPTIONS No options have been granted by the Bank to any party during the financial year to take up unissued shares of the Bank. No shares have been issued during the financial year by virtue of the exercise of any option to take up unissued shares of the Bank. As at the end of the financial year, there were no unissued shares of the Bank under options. LAPORAN TAHUNAN 2018 ANNUAL REPORT 179
  195. DIRECTORS ’ REPORT DIRECTORS The following directors served on the Board of the Bank since the beginning of the financial year to the date of this report: Y. Bhg Tan Sri Mohamad Zabidi Bin Zainal (Chairman) Y. Bhg Dato’ Dr Mohamad Hashim bin Ahmad Tajudin Y. Bhg Datin Setia Shahariah binti Hashim Y. Bhg Dato’ Dr. Yusof bin Ismail Puan Azizah binti Abdul Rahman Encik Ibrahim Bin Hassan Puan Faizah binti Abdullah Encik Abdul Rahim bin Abd Hadi (appointed on 9 January 2018) Encik Jit Singh A/L Santok Singh (appointed on 12 October 2018) Y. Bhg Datuk Seri Dr. Ismail bin Haji Bakar (resigned on 31 July 2018) Tuan Syed Alwi Bin Mohamed Sultan 180 AGROBANK (appointed on 2 April 2018; resigned and redesignated from Managing Director/Chief Executive Officer (“CEO”) to President/CEO on 6 September 2018) DIRECTORS’ INTERESTS None of the directors in office at the end of the financial year held shares or had beneficial interest in the shares of the Bank during and at the end of the financial year. There were no arrangements during and at the end of the financial year which had the objective of enabling directors of the Bank to acquire benefits by means of the acquisition of shares in, or debentures of the Bank or any other corporate body. Since the end of the previous financial year, no director has received or to receive any benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by the directors from the Bank and related corporations, or the fixed salary of a full time employee of the Bank as disclosed in Note 33 to the financial statements) by reason of a contract made by the Bank or a related corporation with the director or with a firm of which he is a member, or with a company in which he has a substantial financial interest. COMPLIANCE WITH BANK NEGARA MALAYSIA’S EXPECTATIONS ON FINANCIAL REPORTING Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information In the preparation of the financial statements, the directors have taken reasonable steps to ensure that Bank Negara Malaysia’s expectations on financial reporting have been complied with, including those set out in the Guidelines on Financial Reporting for Development Financial Institutions.
  196. DIRECTORS ’ REPORT OTHER STATUTORY INFORMATION (a) Before the financial statements 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 allowances had been made for doubtful debts; and (ii)to ensure that any current assets which were unlikely to realise their values as shown in the accounting records in the ordinary course of business had been written down to an amount which they might be expected to so realise. (b)At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or the financial statements of the Bank 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 Bank inadequate to any substantial extent; and (ii) the values attributed to current assets in the financial statements 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 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 the financial statements of the Bank which would render any amount stated in the financial statements misleading. (e) As at the date of this report, there does not exist: (i)any charge on the assets 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 of the Bank which has arisen since the end of the financial year other than those arising from the normal course of business of the Bank. (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 months after the end of the financial year which will or may affect the ability of the Bank to meet their obligations as and when they fall due other than the claims made by customers as disclosed in Notes 24(a)(iii) and 32 to the financial statements. The risk in respect of contingent liabilities disclosed in Note 32 is not to be borne by the Bank; and (ii)no item or 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 Bank for the financial year in which this report is made. INDEMNIFICATION OF DIRECTORS The Bank maintained a Directors’ and Officers’ Liability Takaful up to an aggregate limit of RM50,000,000 against any legal liability incurred by the directors and officers in the discharge of their duties while holding office for the Bank. The amount of takaful contribution paid for the directors and officers for the current financial year was RM85,000. SIGNIFICANT EVENTS There were no significant events during the financial year. SUBSEQUENT EVENT There were no material events subsequent to the reporting date that require disclosure or adjustments to the financial statements other than as disclosed in Note 32 to the financial statements. LAPORAN TAHUNAN 2018 ANNUAL REPORT 181
  197. DIRECTORS ’ REPORT HOLDING COMPANY The Bank is wholly-owned by the Ministry of Finance (Incorporated), held on behalf of the Government of Malaysia. AUDITORS The auditors, Messrs. Ernst and Young have expressed their willingness to continue in office. The auditors’ remuneration is disclosed in Note 10 to the financial statements. Signed on behalf of the Board in accordance with a resolution of the directors dated 24 April 2019. TAN SRI MOHAMAD ZABIDI BIN ZAINAL 182 AGROBANK Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information AZIZAH BINTI ABDUL RAHMAN
  198. STATEMENT BY DIRECTORS Pursuant to Section 251 (2) of the Companies Act, 2016 We, TAN SRI MOHAMAD ZABIDI BIN ZAINAL and AZIZAH BINTI ABDUL RAHMAN being two of the directors of BANK PERTANIAN MALAYSIA BERHAD, do hereby state that, in the opinion of the directors, the accompanying financial statements set out on pages 187 to 276 are properly drawn up in accordance with 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 Bank as at 31 December 2018 and of its financial performance and cash flows for the year then ended. Signed on behalf of the Board in accordance with a resolution of the directors dated 24 April 2019. TAN SRI MOHAMAD ZABIDI BIN ZAINAL AZIZAH BINTI ABDUL RAHMAN STATUTORY DECLARATION Pursuant to Section 251(1)(b) of the Companies Act, 2016 and Section 73(1)(e) of the Development Financial Institution Act, 2002 We, AZIZAH BINTI ABDUL RAHMAN and SYED ALWI BIN MOHAMED SULTAN, being the Director and Chief Executive Officer, respectively, of the Bank who are primarily responsible for the financial management of BANK PERTANIAN MALAYSIA BERHAD, do solemnly and sincerely declare that the accompanying financial statements set out on pages 187 to 276 are in our opinion, correct and we make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960. AZIZAH BINTI ABDUL RAHMAN SYED ALWI BIN MOHAMED SULTAN Subscribed and solemnly declared by the above named AZIZAH BINTI ABDUL RAHMAN and SYED ALWI BIN MOHAMED SULTAN at KUALA LUMPUR in the Federal Territory on 24 April 2019. Before me, COMMISSIONER FOR OATHS LAPORAN TAHUNAN 2018 ANNUAL REPORT 183
  199. SHARIAH COMMITTEE ’S REPORT In the Name of Allah, The Compassionate, The Most Merciful Assalamualaikum Warahmatullahi Wabarakatuh To the shareholder, depositors and customers of Bank Pertanian Malaysia Berhad (“the Bank”): In compliance with the letter of appointment, we are required to submit the following report in relation to the operations of the Bank. We have reviewed the Shariah principles and the contracts relating to the transactions and applications introduced by the Bank during the financial year ended 31 December 2018. We have also conducted our review to form an opinion as to whether the operations of the Bank have complied with the Shariah principles and with Shariah rulings issued by the Shariah Advisory Council of Bank Negara Malaysia and the Shariah Committee of the Bank. With regard to the above, the management of the Bank is responsible for ensuring that the Bank conducts its operations in accordance with Shariah principles and with Shariah rulings issued by the Shariah Advisory Council of Bank Negara Malaysia and the Shariah Committee of the Bank. It is our responsibility to form an independent opinion in respect of the operations of the Bank, based on our review of the operations of the Bank and to report to you. We have assessed the work carried out by Shariah review and Shariah audit which included examining, on a test basis, each type of transaction, the relevant documentations and procedures adopted by the Bank. 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 the Bank has not violated the Shariah principles. In our opinion: 184 AGROBANK (a)The contracts, transactions and dealings entered by the Bank during the financial year ended 31 December 2018 that we have reviewed are in compliance with Shariah. For cases which have been identified as not fulfilling certain requirement under Shariah principles and rulings, remedial measures have been identified and ongoing rectification efforts on the affected accounts are currently being implemented. In the event the affected accounts cannot be rectified, the income will not be recognised as the Bank’s income. (b)The main sources and investments of the Bank disclosed to us conform to the basis that had been approved by us in accordance with Shariah rules and principles. (c)The allocation of profit and charging of losses relating to the Bank’s assets and liabilities conform to the basis that had been approved by us in accordance with Shariah principles. (d) All earnings that have been realised from sources or by means prohibited under Shariah will be channelled for charitable purposes. (e) The calculation of zakat is in compliance with Shariah principles. We, ASSOC. PROF. DR. MOHAMED FAIROOZ BIN ABDUL KHIR and DR. MOHAMAD SABRI BIN ZAKARIA, being two of the members of the Shariah Committee of the Bank, to the best of our knowledge, do hereby confirm on behalf of the members of the Shariah Committee, that the operations of the Bank for the financial year ended 31 December 2018 have been conducted in conformity with Shariah. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events ASSOC. PROF. DR. MOHAMED FAIROOZ BIN ABDUL KHIR DR. MOHAMAD SABRI BIN ZAKARIA Bagaimana Kami Ditadbir Urus Chairman of the Committee Member of the Committee Penyata Kewangan 2018 Kuala Lumpur, Malaysia 04 How We Are Governed 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information 24 April 2019
  200. Independent auditors ’ report to the member of Bank Pertanian Malaysia Berhad (811810-U) (Incorporated in Malaysia) Report on the audit of the financial statements Opinion We have audited the financial statements of Bank Pertanian Malaysia Berhad (“”the Bank””), which comprise the statement of financial position as at 31 December 2018, and statement of comprehensive income, statement of changes in equity and statement of cash flows for the financial year then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 187 to 276. In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Bank as at 31 December 2018, and of its financial performance and 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 audit opinion. Independence and other ethical responsibilities We are independent 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 (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code. 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 directors’ report and Shariah committee’s report, but does not include the financial statements of the Bank and our auditors’ report thereon, which we obtained prior to the date of this auditors’ report, and the annual report, which is expected to be made available to us after the date of this auditors’ report. Our opinion on the financial statements 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 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 Bank or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditors’ report, 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. When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to the directors of the Bank and take appropriate action. Responsibilities of the directors for the financial statements The directors of the Bank are responsible for the preparation of financial statements 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 Bank that are free from material misstatement, whether due to fraud or error. In preparing the financial statements of the Bank, the directors are responsible for assessing the Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Bank or to cease operations, or have no realistic alternative but to do so. LAPORAN TAHUNAN 2018 ANNUAL REPORT 185
  201. Independent auditors ’ report to the member of Bank Pertanian Malaysia Berhad (811810-U) (Incorporated in Malaysia) Report on the audit of the financial statements (cont’d) Auditors’ responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements 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 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 Bank’s internal control. •Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. 186 AGROBANK •Conclude on the appropriateness of the 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 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 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 Bank to cease to continue as a going concern. •Evaluate the overall presentation, structure and content of the financial statements of the Bank, including the disclosures, and whether the financial statements of the Bank represent the underlying transactions and events in a manner that achieves fair presentation. 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. Other matters This report is made solely to the member 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. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Ernst & Young Wan Daneena Liza Bt Wan Abdul Rahman AF: 0039 No. 02978/03/2020 J Penyata Kewangan 2018 Chartered Accountants Chartered Accountant Maklumat Tambahan Kuala Lumpur, Malaysia 24 April 2019 Bagaimana Kami Ditadbir Urus 04 How We Are Governed 05 2018 Financial Statement 06 Additional Information
  202. STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 December 2018 Note 2018 RM ’000 2017 RM’000 Restated Income derived from investment of depositors’ funds and others Income derived from investment of shareholder’s funds (Allowance for)/writeback of impairment 6(a) 6(b) 7 723,357 216,262 (16,789) 647,138 233,447 1,301 Total distributable income Income attributable to depositors 8 922,830 (281,146) 881,886 (240,348) Total net income Personnel expenses Other overheads and expenditures Finance costs Compensation claim 9 10 11 12 641,684 (282,524) (158,718) (10,112) (79) 641,538 (281,954) (157,989) (9,825) 38,832 Profit before tax and zakat Tax expense Zakat 13 14 190,251 (51,513) (4,756) 230,602 (55,317) (2,631) 133,982 172,654 Net profit for the year Other comprehensive income: Items that may be reclassified to profit or loss Debt instruments at fair value through other comprehensive income (“FVOCI”): Net change in fair value during the year Reclassification to the profit or loss Income tax related to the above 27,633 (4,742) (5,494) - Net gain on financial investments at FVOCI 17,397 - Available-for-sale (“AFS”) financial assets: Net change in fair value during the year Income tax related to the above - - 29,159 (6,926) Net gain on AFS financial assets - 22,233 17,397 22,233 Total items that may be reclassified to profit or loss Items that will not be reclassified to profit or loss Equity instruments at FVOCI Revaluation losses on equity instruments at FVOCI Income tax related to the above (66) 16 - Total items that will not be reclassified to profit or loss (50) - Other comprehensive income for the year, net of tax Total comprehensive income for the year The accompanying notes form an integral part of the financial statements. 17,347 22,233 151,329 194,887 LAPORAN TAHUNAN 2018 ANNUAL REPORT 187
  203. STATEMENT OF FINANCIAL POSITION As at 31 DECEMBER 2018 Note 2018 RM ’000 2017 RM’000 15 16(a) 16(b) 17 18 19 20 21 22 1,131,489 4,380,736 - 10,431,162 9,548 115,347 143,510 21,678 11,391 1,308,683 4,403,960 9,173,891 34,067 115,296 139,152 19,348 13,994 16,244,861 15,208,391 23(a) 23(b) 7,620,323 2,990,170 7,589,377 2,180,070 24(a) 24(b) 131,178 2,275 142,673 2,265 24(c) 25 4,531 1,825,308 1,689,763 23,310 2,920 722,461 24,505 4,144 778,676 13,322,476 12,411,473 ASSETS Cash and short term funds Financial assets at fair value through other comprehensive income (“FVOCI”) Investment securities Financing and advances Other advances Other assets Property, plant and equipment Intangible assets Deferred tax assets TOTAL ASSETS LIABILITIES AND EQUITY 188 AGROBANK Liabilities Deposits from customers Deposit and placement of banks and other financial institutions Other liabilities Other payables and accruals Paddy credit gratuity scheme Expected credit loss (“ECL”) allowance for financial guarantees and financing commitments Financing Scheme Funds Government Grants Operating Launching Funds Total Liabilities 26 27 28 Equity Share capital Reserves 29 30 1,000,000 1,922,385 1,000,000 1,796,918 Total Equity 2,922,385 2,796,918 TOTAL LIABILITIES AND EQUITY 16,244,861 15,208,391 32 1,059,483 6,712,090 Commitments and Contingencies Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information The accompanying notes form an integral part of the financial statements.
  204. STATEMENT OF CHANGES IN EQUITY For the financial year ended 31 DECEMBER 2018 Share capital RM ’000 Statutory reserves RM’000 1,000,000 - 487,109 - - (21,403) 1,000,000 487,109 (21,403) As at 1 January 2018 As previously stated Effect on adoption of MFRS 9 (Note 5) As restated Non-distributable Distributable reserves reserves Investment FVOCI revaluation Regulatory Retained deficit deficit reserve earnings RM’000 RM’000 RM’000 RM’000 (27,303) 27,303 - - Total RM’000 1,337,112 2,796,918 (6,262) (362) - - 1,330,850 2,796,556 Net profit for the year Other comprehensive income for the year - - - - - 133,982 133,982 - - 17,347 - - - 17,347 Total comprehensive income for the year - - 17,347 - - 133,982 151,329 Transfer to regulatory reserve - - - - 34,951 (34,951) Dividends paid (Note 31) - - - - - (25,500) 1,000,000 487,109 At 31 December 2018 As at 1 January 2017 (4,056) Share capital RM’000 - (25,500) 34,951 1,404,381 2,922,385 Non-distributable Distributable reserves reserves Investment Statutory revaluation Retained reserves deficit earnings RM’000 RM’000 RM’000 LAPORAN TAHUNAN 2018 ANNUAL REPORT Total RM’000 1,000,000 487,109 Net profit for the year Other comprehensive income for the year - - - - - 22,233 172,654 - 172,654 22,233 Total comprehensive income for the year - - 22,233 172,654 194,887 Dividends paid (Note 31) - - - (20,000) (20,000) 1,000,000 487,109 At 31 December 2017 The accompanying notes form an integral part of the financial statements. (49,536) 1,184,458 2,622,031 (27,303) 1,337,112 2,796,918 189
  205. STATEMENT OF CASH FLOWS For the financial year ended 31 DECEMBER 2018 2018 RM ’000 2017 RM’000 CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax and zakat 190,251 230,602 Adjustments for: Allowance for impairment on financing and advances Writeback of allowance for impairment on other advances Writeback of allowance for financial guarantees and financing commitments Writeback of allowance for impairment other assets Depreciation of property, plant and equipment Amortisation of computer software Write off of property, plant and equipment Write off of intangible assets Gain on disposal of property, plant and equipment Gain on disposal of financial assets at FVOCI Gross dividend income from financial assets at FVOCI Gross dividend income from investment securities Amortisation and utilisation of Government Grants: Government Grant - Operating Government Grant - Launching Government Grant - Funds Finance costs Writeback of provision for retirement benefits scheme Provision made/(written back) for compensation claim 190 AGROBANK Operating profit before working capital changes Change in financing and advances Change in other advances Change in other assets Change in deposits from customers Change in deposit and placement of banks and other financial institutions Change in other payables and accruals Change in paddy credit gratuity scheme Cash (used in)/generated from operating activities Tax paid Zakat paid Net cash (used in)/generated from operating activities Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information 65,895 (12,776) (1,519) (93) 21,405 12,934 259 - - (4,742) (9) - 32,552 (2,259) 24,942 13,516 590 316 (1,466) (4) (1,195) (1,224) 1,602 10,112 (613) 79 (1,539) (1,902) 2,440 9,825 (244) (38,832) 280,366 268,537 (1,301,600) 28,845 (15,864) 30,946 810,100 (13,238) 10 (935,580) 20,246 (16,299) 544,471 556,805 (21,835) (10) (180,435) 416,335 (45,357) (2,479) (228,271) (36,608) (2,456) 377,271
  206. STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at FVOCI Purchase of investment securities Proceeds from disposal of financial assets at FVOCI Dividends received from financial assets at FVOCI Dividends received from investment securities Purchase of property , plant and equipment Purchase of computer software Proceeds from disposal of property, plant and equipment Net cash generated from/(used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Additional funds received for Financing Scheme Funds Payments of Financing Scheme Funds Profits paid on Financing Scheme Funds Additional funds received for Government Grant - Funds Dividends paid Net cash generated from financing activities 2018 RM’000 2017 RM’000 (260,915) - 311,153 9 - (26,022) (15,264) - (259,610) 4 (12,708) (12,563) 2,086 8,961 (282,791) 137,730 (61,142) (9,391) 419 (25,500) 86,019 (68,591) (9,108) 38,256 (20,000) 42,116 26,576 NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR (177,194) 1,308,683 121,056 1,187,627 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 1,131,489 1,308,683 CASH AND CASH EQUIVALENTS CONSIST OF: Cash and short term funds (Note 15) 1,131,489 1,308,683 The accompanying notes form an integral part of the financial statements. LAPORAN TAHUNAN 2018 ANNUAL REPORT 191
  207. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 1 . CORPORATE INFORMATION Bank Pertanian Malaysia Berhad (‘’the Bank’’) is a public limited liability company, incorporated and domiciled in Malaysia. The principal activities of the Bank are banking, financing, investment and related services as provided under the Bank Pertanian Malaysia Berhad Act, 2008. On 1 July 2015, the Bank became a full fledged Islamic bank whereby all its activities are now conducted in compliance with Shariah principles. The registered office is at Level 3, Bangunan Agrobank, Leboh Pasar Besar, 50726 Kuala Lumpur, Malaysia. The principal place of business of the Bank is at Bangunan Agrobank, Leboh Pasar Besar, 50726 Kuala Lumpur, Malaysia. The immediate and ultimate holding company of the Bank is the Ministry of Finance (Incorporated), held on behalf of the Government of Malaysia. The financial statements have been approved and authorised for issuance by the Board of Directors in accordance with a resolution dated 24 April 2019. 2. BASIS OF PREPARATION The financial statements of the Bank have been prepared under the historical cost convention, unless otherwise stated in the accounting policies. The Bank presents the statement of financial position in order of liquidity. 2.1 Statement of compliance 192 The financial statements of the Bank have been prepared in accordance with Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards (“IFRS”) and the requirements of the Companies Act, 2016 in Malaysia. AGROBANK 2.2 Functional and presentation currency The financial statements are presented in Ringgit Malaysia (“RM”), which is the Bank’s functional currency, and all values are rounded to the nearest thousand (RM’000) except when otherwise indicated. 2.3 Change in presentation From 1 July 2015, the Bank became a full fledged Islamic bank. The presentation of the financial statements complies with the Guidelines on Financial Reporting for Development Financial Institutions issued by Bank Negara Malaysia (“BNM”). The remaining conventional loans and non-shariah compliant assets are now shown as a separate line item on the face of the statement of financial position and are referred to as ‘Other advances’. 3. SIGNIFICANT ACCOUNTING POLICIES 3.1 Changes in accounting policies Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information On 1 January 2018, the Bank adopted the following amended MFRS mandatory for annual financial periods beginning on or after 1 January 2018: MFRS 9 Financial Instruments MFRS 15 Revenue from Contracts with Customers Annual Improvements to MFRS Standards 2014–2016 Cycle Amendments to MFRS 2 Classification and Measurement of Share-based Payment Transactions Amendments to MFRS 140 Transfers of Investment Property
  208. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 3 . SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.1 Changes in accounting policies (cont’d) New and amended standards and interpretations MFRS 9 Financial Instruments The Bank has adopted MFRS 9 with a date of transition of 1 January 2018, which resulted in changes in accounting policies and adjustments to the amount previously recognised in the financial statements. The Bank did not early adopt any of the MFRS 9 requirements in the previous period. As permitted by the transitional provisions of MFRS 9, the Bank elected not to restate comparative figures. Any adjustments to the carrying amounts of financial assets and liabilities were recognised in the opening retained earnings and other reserves of the current period. Consequently, for notes disclosures, the consequential amendments to MFRS 7 disclosures have also only been applied to the current period. The adoption of MFRS 9 has resulted in changes in accounting policies for recognition, classification and measurement of financial assets and financial liabilities and impairment of financial assets. MFRS 9 also significantly amends other standards dealing with financial instruments such as MFRS 7 “Financial Instruments: Disclosures”. Set out in Note 5 are disclosures relating to the impact of the adoption of MFRS 9 on the Bank. Further details of the specific MFRS 9 accounting policies applied in the current period (as well as the previous MFRS 139 accounting policies applied in the comparative period) as described in more details in Note 3.2(d). MFRS 15 Revenue from Contracts with Customers MFRS 15 establishes a five (5) steps model for revenue recognition from contracts from customers. The core principle of MFRS 15 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Under MFRS 15, an entity is required to recognise revenue when (or as) a performance obligation is satisfied, i.e., when ‘control’ of the distinct promised goods or services underlying the particular performance obligation is transferred to the customers. Fee and commission income and expense Fee and commission income are components of other operating income of the Bank. The Bank recognises service revenue which include card management fees, accounts servicing fees, financing arrangement fees, sales commission and other fees only to the extent when the services are performed. Generally, these fees are recognised on an accrual basis when the services have been provided to the customer. In this regard, the Bank concluded that the services are satisfied at a point of time that the customer receives and consumes benefits provided by the Bank. Other fee and commission expenses incurred mainly relate to transaction and services fees at the point the services are received. 3.2 Summary of significant accounting policies (a) Basis of accounting The accounting policies set out below have been applied consistently to the periods presented in these financial statements, except for the adoption of the MFRSs, amendments to MFRSs and Issues Committee (“IC”) Interpretations as disclosed in Note 3.1. LAPORAN TAHUNAN 2018 ANNUAL REPORT 193
  209. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 3 . SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.2 Summary of significant accounting policies (cont’d) (b) Revenue recognition (i) Profit income Profit income is recognised for all profit-bearing financial instruments classified as Debt Instruments at Fair Value through Other Comprehensive Income (“”FVOCI””) (2017: Held-to-Maturity (“”HTM””)), Equity Instruments at FVOCI (2017: Available-for-Sale (“”AFS””)) or Financing and Advances using the effective profit method. The effective profit method is a method of calculating the amortised cost of a financial asset or liability (or group of assets and liabilities) and of allocating the profit income or profit expense over the relevant periods. The effective profit rate is the rate that is used to discount the expected future cash payments or receipts through the expected life of the financial instrument, or when appropriate, a shorter period, to the net carrying amount of the instrument. The application of the method has the effect of recognising income receivable or expense payable on the instrument evenly in proportion to the amount outstanding over the period to maturity or payment. 194 AGROBANK In calculating effective profit, the Bank estimates cash flows considering all contractual terms of the financial instrument but excluding future credit losses. Fees, including those for early redemption, are included in the calculation to the extent that they can be measured and are considered to be an integral part of the effective profit rate. Cash flows arising from the direct and incremental costs of issuing financial instruments are also taken into account in the calculation. Where it is not possible to otherwise estimate reliably the cash flows or the expected life of a financial instrument, effective profit is calculated by reference to the payments or receipts specified in the contract, and the full contractual term. (ii) Murabahah and Tawarruq Murabahah and Tawarruq income is recognised on an effective profit rate basis over the period of the contract based on the financing amounts disbursed. (iii) Bai-Al Inah and Bai-Bithaman Ajil Bai-Al Inah and Bai-Bithaman Ajil income is recognised on an effective profit rate basis over the contract term of the financing amount. (iv) Ujrah Ujrah income is recognised on an effective profit rate based on residual value and contract term. (v) Fees and commissions Unless included in the effective profit calculation, fees and commissions are recognised based on an accrual basis upon rendering of services. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information (vi) Dividend income Dividends are recognised when the right to receive payment is established. (vii) Rental income Income from rental is recognised on an accrual basis in accordance with the terms of the agreement.
  210. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 3 . SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.2 Summary of significant accounting policies (cont’d) (c) Government grants Government grants are recognised at their fair value where there is reasonable assurance that the grant will be received and all conditions attached will be met. Grants from the Government of Malaysia consist of the following: (i) Government grants - Operating (Note 26) Operating grants received for capital expenditure are recognised as deferred capital grants in the statement of financial position. The grants are amortised to profit or loss on a systematic basis over the useful life of the assets. Operating grants for development expenditure is deducted from the operating grants upon utilisation. (ii) Government grants - Launching (Note 27) Launching grants received for capital expenditure are recognised as deferred capital grant in the statement of financial position. The grants are amortised to profit or loss on a systematic basis over the useful life of the assets. Launching grants for development expenditure is deducted from the launching grants upon utilisation. (iii) Government grants - Funds (Note 28 (a) - (i)) Government grant funds received to provide financing to eligible customers are recognised as deferred capital grant in the statement of financial position. The government grant is also utilised against credit losses and charges arising from these financing. (iv) Government grants - financing scheme funds (Note 28 (j) - (q)) The benefit of financing scheme funds at a below-market rate of profit is treated as a Government grant. The financing scheme funds are recognised as a financial liability, and measured in accordance with MFRS 9 “Financial Instruments”. The Government grant for financing scheme funds are measured at inception as the difference between the initial carrying value of the Government financing determined in accordance with MFRS 9 and the proceeds received. Government grant for financing scheme funds are recognised in the statement of comprehensive income (Note 10) on a systematic basis over the periods in which the Bank recognised as expenses the related costs for which the grants are intended to compensate. (d) Financial assets Accounting policies applied from 1 January 2018 (1) Classification From 1 January 2018, the Bank classifies its financial assets in the following measurement: • Those to be measured subsequently at fair value (either through other comprehensive income (“FVOCI”) or through profit or loss (“FVTPL”)); and • Those to be measured at amortised cost. (2) Recognition and de-recognition Regular way purchases and sales of financial assets are recognised on settlement date, the date on which the Bank settles the commitment to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Bank has transferred substantially all the risks and rewards of ownership. (3) Measurement At initial recognition, the Bank measures its financial assets at their fair value plus, in the case of a financial asset not at FVTPL, transactions costs that are directly attributable to the acquisition of the financial assets. LAPORAN TAHUNAN 2018 ANNUAL REPORT 195
  211. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 3 . SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.2 Summary of significant accounting policies (cont’d) (d) Financial assets (cont’d) Accounting policies applied from 1 January 2018 (cont’d) (3) Measurement (cont’d) Business model The business model reflects how the Bank manages the assets in order to generate cash flows. That is, whether the Bank’s objectives are solely to collect the contractual cash flows from the assets or is to collect both the contractual cash flows and cash flows arising from the sale of assets. If neither of these is applicable (e.g. financial assets are held for trading purposes), then the financial assets are classified as part of “other” business model and measured at FVTPL. Factors considered by the Bank in determining the business model for a group of assets include past experience on how the cash flows for these assets were collected, how the asset’s performance is evaluated and reported to key management personnel, how risks are assessed and managed and how managers are compensated. For example, the Bank’s business model for the mortgage financing book is to hold to collect contractual cash flows. Another example is the liquidity portfolio of assets, which is held by the Bank as part of liquidity management and is generally classified within the hold to collect and sell business model. Securities held for trading are held principally for the purpose of selling in the near term or are part of a portfolio of financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking. These securities are classified in the “other” business model and measured at FVTPL. 196 Solely Payments of Principal and Profit Test (“SPPP”) AGROBANK Where the business model is to hold assets to collect contractual cash flows or to collect contractual cash flows and sell, the Bank assesses whether the financial instruments’ cash flows represent solely payments of principal and profit (“the SPPP test”). In making this assessment, the Bank considers whether the contractual cash flows are consistent with a basic financing arrangement i.e. profit includes only consideration for the time value of money, credit risk, other basic financing risks and a profit margin that is consistent with a basic financing arrangement. Where the contractual terms introduce exposure to risk or volatility that are inconsistent with a basic financing arrangement, the related financial asset is classified and measured at FVTPL. Debt instruments Subsequent measurement of debt instruments depends on the Bank’s business model for managing the asset and the cash flow characteristics of the asset. The Bank reclassifies debt investments when and only when its business model for managing those assets changes. There are three measurement categories into which the Bank classifies its debt instruments: (i) Mengenai Kami Assets that are held for collection of contractual cash flows where those cash flows represent SPPP are measured at amortised cost. Profit income from these financial assets is recognised using the effective profit rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss. Impairment losses are presented as separate line item in statement of comprehensive income. 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Amortised cost (ii) Fair value through other comprehensive income (“FVOCI”) Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent SPPP, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, profit income and foreign exchange gains and losses which are recognised in profit or loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss. Profit income from these financial assets is included in “profit income” using the effective profit rate method. Impairment expenses are presented as separate line item in statement of comprehensive income.
  212. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 3 . SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.2 Summary of significant accounting policies (cont’d) (d) Financial assets (cont’d) Accounting policies applied from 1 January 2018 (cont’d) (3) Measurement (cont’d) (iii) Fair value through profit or loss (“FVTPL”) Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVTPL. The Bank may also irrevocably designate financial assets at FVTPL if doing so significantly reduces or eliminates a mismatch created by assets and liabilities being measured on different bases. Fair value changes is recognised in profit or loss in the period which it arises. Equity instruments The Bank subsequently measures all equity investments at fair value. Where the Bank’s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from such investments continue to be recognised in profit or loss as other income when the Bank’s right to receive payments is established. Changes in the fair value of financial assets at FVTPL are recognised in ‘net gains and losses on financial instruments’ in statement of comprehensive income. (4) Subsequent measurement – Impairment Impairment for debt instruments and financial guarantee contracts The Bank assesses on a forward looking basis the expected credit loss (“ECL”) associated with its debt instruments carried at amortised cost and at FVOCI and financial guarantee contracts issued. The impairment methodology applied depends on whether there has been a significant increase in credit risk. ECL represents a probability-weighted estimate of the difference between present value of cash flows according to contract and present value of cash flows the Bank expects to receive, over the remaining life of the financial instrument. For financial guarantee contracts, the ECL is the difference between the expected payments to reimburse the holder of the guaranteed debt instrument less any amounts that the Bank expects to receive from the holder, the customer or any other party. The measurement of ECL reflects: • an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes; • the time value of money; and • reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions. (i)    General 3-stage approach At each reporting date, the Bank measures ECL through loss allowance at an amount equal to 12-month ECL if credit risk on a financial instrument or a group of financial instruments has not increased significantly since initial recognition. For all other financial instruments, a loss allowance at an amount equal to lifetime ECL is required. The Bank applies a 3-stage approach on debt instruments measured at amortised cost and FVOCI, except for those that are under simplified approach, as explained below. LAPORAN TAHUNAN 2018 ANNUAL REPORT 197
  213. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 3 . SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.2 Summary of significant accounting policies (cont’d) (d) Financial assets (cont’d) Accounting policies applied from 1 January 2018 (cont’d) (4) Subsequent measurement – Impairment (cont’d) (ii) Simplified approach The Bank applies MFRS 9 simplified approach to measure ECL which uses a lifetime ECL for trade receivables and other assets. Significant increase in credit risk (“SICR”) The Bank considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk, the Bank compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportable forward-looking information. The following indicators are incorporated: 198 • External credit rating (as far as applicable); • Significant changes in the expected performance and behavior of the customer, including changes in the payment status of customer in the Bank, committed into fraudulent activities, abandonment of projects and changes in operating results of the customer; • Actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the customer/issuer’s ability to meet its obligations; • Actual or expected significant changes in the operating results of the customer; • Significant increase in credit risks on other financial instruments of the same customer; and • Significant changes in the value of the collateral supporting the obligations. AGROBANK Regardless of the analysis above, a significant increase in credit risk is presumed if a customer/issuer is more than 30 days or 1 month past due in making a contractual payment. Definition of default and credit-impaired financial assets The Bank defines a financial instrument as default, which is fully aligned with the definition of credit-impaired, when it meets one or more of indicators, which include amongst others, the following criteria: • the customer is unlikely to pay its credit obligations to the Bank in full, without recourse by the Bank to actions such as realising security (if any is held); Prestasi Strategik Kami • the customer is past due more than 3 months on any material credit obligation to the Bank; Aktiviti 2018 • the customer is past due more than 30 days after maturity date for trade finance and revolving credit facilities; 04 How We Are Governed • Bankruptcy or winding up petition; Penyata Kewangan 2018 05 2018 Financial Statement • Fraudulent accounts; • Rescheduled and/or restructured (R&R) for impaired accounts; or • Companies under PN17 – Listed companies identified by Bursa Malaysia that are in financial distress. Mengenai Kami 01 About Us 02 Our Strategic Performance 03 2018 Events Bagaimana Kami Ditadbir Urus Maklumat Tambahan 06 Additional Information
  214. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 3 . SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.2 Summary of significant accounting policies (cont’d) (d) Financial assets (cont’d) Accounting policies applied from 1 January 2018 (cont’d) In assessing whether a customer is in default, the Bank considers indicators that are: • qualitative - e.g. breaches of covenant; • quantitative - e.g. overdue status and non-payment on another obligation of the same issuer to the Bank; and • based on data developed internally and obtained from external sources. Inputs into the assessment of whether a financial instrument is in default and their significance may vary over time to reflect changes in circumstances. The Bank first assesses whether objective evidence of impairment exists for financial assets which are individually significant. If the Bank determines that objective evidence of impairment exists, i.e. credit impaired, for an individually-assessed financial asset, a lifetime ECL will be recognised. Financial assets which are individually significant but not credit-impaired and not individually significant are grouped on the basis of similar credit risk characteristics (such as credit quality, instrument type, credit risk ratings, credit utilisation, customer types and other relevant factors) for collective assessment. Write off policy The Bank writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and has concluded there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include: • ceasing enforcement activity; and • where the Bank’s recoveries method are foreclosing on collateral and the value of the collateral is such that there is no reasonable expectation of recovering in full. Modification of financing The Bank sometimes renegotiates or otherwise modifies the contractual cash flows of financings to customers. When this happens, the Bank assesses whether or not the new terms are substantially different to the original terms. The Bank does this by considering, among others, the following factors: • If the customer is in financial difficulty, whether the modification merely reduces the contractual cash flows to amounts the customer is expected to be able to pay; • Whether any substantial new terms are introduced, such as a profit share/equity-based return that substantially affect the risk profile of the financing; • Significant extension of the financing term when the customer is not in financial difficulty; • Significant change in the profit rate; • Change in the currency the financing is denominated in; and • Insertion of collateral, other security or credit enhancements that significantly affect the credit risk associated with the financing. LAPORAN TAHUNAN 2018 ANNUAL REPORT 199
  215. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 3 . SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.2 Summary of significant accounting policies (cont’d) (d) Financial assets (cont’d) Accounting policies applied from 1 January 2018 (cont’d) Modification of financing (cont’d) If the terms are substantially different, the Bank derecognises the original financial asset and recognises a “new” asset at fair value and recalculates a new effective profit rate for the asset. The date of renegotiation is consequently considered to be the date of initial recognition for impairment calculation purposes, including for the purpose of determining whether a significant increase in credit risk has occurred. However, the Bank also assesses whether the new financial asset recognised is deemed to be credit-impaired at initial recognition, especially in circumstances where the renegotiation was driven by the customer being unable to make the originally agreed payments. Differences in the carrying amount are also recognised in profit or loss as a gain or loss on derecognition. If the terms are not substantially different, the renegotiation or modification does not result in derecognition, and the Bank 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 profit rate (or credit-adjusted effective profit rate for purchased or originated credit-impaired financial assets). De-recognition other than a modification 200 AGROBANK Financial assets, or a portion thereof, are derecognised when the contractual rights to receive the cash flows from the assets have expired, or when they have been transferred and either (i) the Bank transfers substantially all the risks and rewards of ownership, or (ii) the Bank neither transfer nor retain substantially all the risks and rewards of ownership and the Bank has not retained control. Generating the term structure of probability of default Month in Arrears (“MIA”) are a primary input into the determination of the term structure of Probability of Default (“PD”) for exposures. The Bank collects performance and default information on MIA for each segment. The Bank employs statistical models to analyse the data collected and generate estimates of the remaining lifetime PD of exposures and how these are expected to change as a result of the passage of time. The lifetime PD is developed by applying a maturity profile to the current 12-month PD. The maturity profile looks at how defaults develop on a portfolio from the point of initial recognition throughout the lifetime of the financing. The maturity profile is based on historical observed data and is assumed to be the same across all assets within a portfolio. This is supported by historical analysis. The 12-month and lifetime Exposures at Default (“EADs”) are determined based on the expected payment profile, which vary by segmentation. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance This analysis includes the identification and calibration of relationships between changes in default rates and changes in key macro-economic factors as well as in-depth analysis of the impact of certain other factors (e.g. forbearance experience) on the risk of default. For most exposures, key macro-economic indicators include: GDP growth, benchmark profit rates, unemployment rates and others. Bagaimana Kami Ditadbir Urus The Bank formulates a ‘base case’ view of the future direction of relevant economic variables as well as a representative range of other possible forecast scenarios (see below on “Incorporation of forward-looking information”). The Bank then uses these forecasts to adjust its estimates of PDs. Penyata Kewangan 2018 Determining whether credit risk has increased significantly Maklumat Tambahan The criteria for determining whether credit risk has increased significantly vary by portfolio and include quantitative changes in PDs and qualitative factors, including a backstop based on delinquency. Aktiviti 2018 03 2018 Events 04 How We Are Governed 05 2018 Financial Statement 06 Additional Information The credit risk of a particular exposure is deemed to have increased significantly since initial recognition if, based on the Bank’s quantitative modelling, the remaining lifetime PD is determined to have increased by more than a predetermined percentage/range.
  216. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 3 . SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.2 Summary of significant accounting policies (cont’d) (d) Financial assets (cont’d) Accounting policies applied from 1 January 2018 (cont’d) Determining whether credit risk has increased significantly (cont’d) Using its expert credit judgement and, where possible, relevant historical experience, the Bank may determine that an exposure has undergone a significant increase in credit risk based on particular qualitative indicators that it considers are indicative of such and whose effect may not otherwise be fully reflected in its quantitative analysis on a timely basis. As a backstop, the Bank considers that a significant increase in credit risk occurs no later than when an asset is more than one MIA. Due dates are determined without considering any grace period that might be available to the customer. Modified financial assets The contractual terms of a financing/advances may be modified for a number of reasons, including changing market conditions, customer retention and other factors not related to a current or potential credit deterioration of the customer. An existing financing/advances whose terms have been modified may be derecognised and the renegotiated financing/advances recognised as a new financing/advances at fair value. The Bank renegotiates financing/advances to customers in financial difficulties to maximise collection opportunities and minimise the risk of default. Financing/advances forbearance is granted on a selective basis if the customer is currently in default on its financing or if there is a high risk of default, there is evidence that the customer or issuer made all reasonable efforts to pay under the original contractual terms and the customer or issuer is expected to be able to meet the revised terms. The revised terms usually include extending the maturity, changing the timing of profit payments and amending the terms of financing/advances covenants. For financial assets modified, the estimate of PD reflects whether the modification has improved or restored the Bank’s ability to collect principal and profit and the Bank’s previous experience of similar forbearance action. As part of this process, the Bank evaluates the customer’s payment performance against the modified contractual terms and considers various behavioural indicators. Generally, forbearance is a qualitative indicator of a significant increase in credit risk and an expectation of forbearance may constitute evidence that an exposure is credit-impaired. A customer needs to demonstrate consistently good payment behaviour over a period of time before the exposure is no longer considered to be credit-impaired/in default or the PD is considered to have decreased such that the loss allowance reverts to being measured at an amount equal to 12-month ECL. Incorporation of forward-looking information The Bank incorporates forward-looking information into both its assessment of whether the credit risk of an instrument has increased significantly since its initial recognition and its measurement of ECL. The Bank formulates a ‘base case’ view of the future direction of relevant economic variables as well as a representative range of other possible forecast scenarios. This process involves developing two or more additional economic scenarios and considering the relative probabilities of each outcome. External information includes economic data and forecasts published by governmental bodies and monetary authorities in Malaysia. The base case represents a most-likely outcome and is aligned with information used by the Bank for other purposes such as strategic planning and budgeting. The other scenarios represent more optimistic and more pessimistic outcomes. Periodically, the Bank carries out stress testing of more extreme shocks to calibrate its determination of these other representative scenarios. The Bank has identified and documented key drivers of credit risk and credit losses for each portfolio of financial instruments and, using an analysis of historical data, has estimated relationships between macro-economic variables and credit risk and credit losses. LAPORAN TAHUNAN 2018 ANNUAL REPORT 201
  217. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 3 . SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.2 Summary of significant accounting policies (cont’d) (d) Financial assets (cont’d) Accounting policies applied from 1 January 2018 (cont’d) Measurement of expected credit losses (“ECL”) The Bank uses three categories for financial instruments at amortised cost for recognising ECL. Category Definition Basis for recognising Performing account (i) Principal or profit or both is not past due for more than 30 days; or 12 month ECL (Stage 1) (ii) Other accounts not classified under Stage 2 and 3 (i) Principal or profit or both is past due for more than 30 days but less than 90 days; or (ii) Overdue payment within 30 days after maturity date for trade finance and revolving credit facilities; or Under performing accounts 202 Lifetime ECL – non-credit impaired (Stage 2) (iii) Fullfill any one of the SICR criteria AGROBANK Impaired accounts (i) Principal or profit or both is past due for more than 90 days; or (ii) Overdue payment more than 30 days after maturity date for trade finance and revolving credit facilities; or Lifetime ECL – credit impaired (Stage 3) (iii) For Cashline-i facility, it shall be classified as impaired where the outstanding amount has remained in excess of the approved limit for a period more than 90 days or 3 months; or Mengenai Kami (iv) Where payments are schedule on interval of 3 months or longer, the financing is classified as impaired as soon as default occurs (except under specific program); or Prestasi Strategik Kami (v) 01 About Us 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Fullfill any one of the other impaired triggers criteria; or (vi) Fullfill any three of the SICR triggers. The Bank has not used the low credit risk exemption for any financial instrument for the year ended 31 December 2018.
  218. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 3 . SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.2 Summary of significant accounting policies (cont’d) (d) Financial assets (cont’d) Accounting policies applied from 1 January 2018 (cont’d) Measurement of expected credit losses (“ECL”) (cont’d) The key inputs into the measurement of ECL are the term structure of the following variables: • • • PD; Loss Given Default (“LGD”); and EAD. These parameters are generally derived from internally developed statistical models and other historical data. They are adjusted to reflect forward-looking information as described above. PD estimates are estimates at a certain date, which are calculated based on statistical rating models, and assessed using rating tools tailored to the various categories of counterparties and exposures. These statistical models are based on internally compiled data comprising both quantitative and qualitative factors. If a counterparty or exposure migrates between rating classes, then this will lead to a change in the estimate of the associated PD. PDs are estimated considering the contractual maturities of exposures and estimated prepayment rates. LGD is the magnitude of the likely loss if there is a default. The Bank estimates LGD parameters based on the history of recovery rates of claims against defaulted counterparties. The LGD models consider the structure, collateral, seniority of the claim, counterparty industry and recovery costs of any collateral that is integral to the financial asset. LGD estimates are recalibrated for different economic scenarios. They are calculated on a discounted cash flow basis using the effective profit rate as the discounting factor. EAD represents the expected exposure in the event of a default. The Bank derives the EAD from the current exposure to the counterparty and potential changes to the current amount allowed under the contract including amortisation. The EAD of a financial asset is its gross carrying amount. For lending/financing commitments and financial guarantees, the EAD includes the amount drawn, as well as potential future amounts that may be drawn under the contract, which are estimated based on historical observations and forward-looking forecasts. For some financial assets, EAD is determined by modelling the range of possible exposure outcomes at various points in time using scenario and statistical techniques. ECL is determined by projecting the PD, LGD and EAD at each future point on a yearly basis individual exposure, or collective segment, and discounting these monthly expected losses back to the reporting date. The discount rate used in the ECL calculation is the original profit rate or an approximation thereof. As described above, and subject to using a maximum of a 12-month PD for financial assets for which credit risk has not significantly increased, the Bank measures ECL considering the risk of default over the maximum contractual period (including any customer’s extension options) over which it is exposed to credit risk, even if, for risk management purposes, the Bank considers a longer period. The maximum contractual period extends to the date at which the Bank has the right to require payment of an advance or terminate a financing commitment or guarantee. Forward looking economic information is also included in determining the 12 month and lifetime PD, EAD and LGD. LAPORAN TAHUNAN 2018 ANNUAL REPORT 203
  219. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 3 . SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.2 Summary of significant accounting policies (cont’d) (d) Financial assets (cont’d) Accounting policies applied from 1 January 2018 (cont’d) Measurement of expected credit losses (“ECL”) (cont’d) Where modelling of a parameter is carried out on a collective basis, the financial instruments are grouped on the basis of shared risk characteristics that include: • product/instrument type; • credit risk grading; • collateral type; • date of initial recognition; • remaining term to maturity; • industry; and • geographic location of the customer. The groupings are subject to regular review to ensure that exposures within a particular group remain appropriately homogeneous. There have been no significant changes in estimation techniques or significant assumptions made during the reporting period. 204 AGROBANK Accounting policies applied until 31 December 2017 (1) Initial recognition and subsequent measurement Financial instruments are classified into the following categories - financing and advances, financial investments HTM and financial investments AFS. Management determines the classification of financial instruments at initial recognition. (i) Financing and advances Financing and advances that consist of Murabahah, Qard, Bai-Al Inah, Bai-Bithaman Ajil and Tawarruq contracts are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Financial assets classified in this category include cash and balances with banks and financing and advances. These financial assets are initially recognised at fair value, including direct and incremental transaction costs, and subsequently measured at amortised cost using the effective profit method less accumulated impairment loss and unearned profit. Profit income on financing and advances is recognised as “Profit Income” in profit or loss. Impairment losses on financing and advances are recognised in statement of comprehensive income as “Allowance for impairment on financing and advances”. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information (ii) Held-to-maturity (“HTM”) Financial investments HTM are quoted non-derivative financial assets with fixed or determinable payments that management has the intention and ability to hold to maturity. These financial assets are initially recognised at fair value including direct and incremental transaction costs, and subsequently measured at amortised cost using the effective profit method. Profit on investments HTM is included in “Profit Income” in statement of comprehensive income. Impairment losses, if any, are recognised in statement of comprehensive income as “Allowance for impairment on investment securities”. Regular way purchases and sales of financial investments HTM are recognised at settlement date. If the Bank was to sell or reclassify more than an insignificant amount of financial investments HTM before maturity, the entire category would be tainted and be reclassified to AFS. Furthermore, the Bank would be prohibited from classifying those financial assets as HTM for the following two years.
  220. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 3 . SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.2 Summary of significant accounting policies (cont’d) (d) Financial assets (cont’d) Accounting policies applied until 31 December 2017 (cont’d) (1) Initial recognition and subsequent measurement (cont’d) (iii) Available-for-sale (“AFS”) Financial investments AFS are non-derivative financial assets that are designated as AFS and are not categorised into any of the other categories above. Financial investments AFS include financial assets that are intended to be held for an indefinite period of time, which may be sold in response to liquidity needs or changes in market conditions. These financial assets are initially recognised at fair value including direct and incremental transaction costs, and subsequently measured at fair value. Gains and losses arising from changes in fair value are recognised in other comprehensive income, except for impairment losses, which are recognised in profit or loss. If a financial investment AFS is determined to be impaired, the cumulative gain or loss previously recognised in equity is recognised in profit or loss. Likewise, upon disposal of financial investments AFS, the cumulative fair value gain or loss recognised in equity is also transferred to profit or loss. Profit income on financial investments AFS is included as profit income in profit or loss. Dividends on AFS equity instruments are recognised in profit or loss when the Bank’s right to receive payment is established. Regular way purchases and sales of financial investments AFS are recognised at settlement date. (2) Derecognition Financial assets are derecognised when the contractual rights to receive the cash flows from these assets have ceased to exist or when the rights to receive future cash flows from the assets have been transferred to a third party and substantially all the risks and rewards of ownership of the assets are also transferred. (3) Impairment of financial assets (i) Financing and advances Financing and advances (“financing”) of the Bank are classified as impaired when they fulfill either of the following criteria: (1) principal or profit or both are past due for three (3) months or more; (2) where a financing is in arrears for less than three (3) months, but exhibits indications of credit weaknesses; or (3) where an impaired financing has been rescheduled or restructured, the financing will continue to be classified as impaired until payments based on the revised and/or restructured terms have been observed continuously for a period of six (6) months for non-retail financing and three (3) months for retail financing. For the determination of impairment on financing, the Bank conducts assessments at each reporting period whether there is any objective evidence that a financing or a group of financing is impaired. A financing or a group of financing is impaired and impairment losses are recognised only if there is objective evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset (i.e. an “incurred loss event”) and that loss event has an impact on the estimated future cash flows of the financing or group of financing that can be reliably estimated. LAPORAN TAHUNAN 2018 ANNUAL REPORT 205
  221. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 3 . SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.2 Summary of significant accounting policies (cont’d) (d) Financial assets (cont’d) Accounting policies applied until 31 December 2017 (cont’d) (3) Impairment of financial assets (cont’d) (i) Financing and advances (cont’d) The criteria that the Bank uses to determine that there is objective evidence of an impairment includes: (1) any significant financial difficulty of the obligor; (2) a breach of contract, such as a default or delinquency in profit or principal payments; (3) a high probability of bankruptcy or other financial reorganisation of the obligor; and (4) concerns over the viability of the obligor’s business operations and its capacity to trade successfully out of financial difficulties and to generate sufficient cash flows to service its financing obligations. The Bank first assesses individually whether objective evidence of impairment exists for financing which are individually significant. If it is determined that no objective evidence of impairment exists for an individually assessed financing, the financing is then included as a part of collective assessment. 206 AGROBANK If there is objective evidence that an impairment loss has been incurred, the amount of loss is measured as the difference between the financing carrying amount and the present value of the estimated future cash flows. The carrying amount of the financing is impaired through the use of an allowance account and the impaired amount of loss is recognised in profit or loss. Where appropriate, the calculation of the present value of estimated future cash flows of a collateralised financing reflects the cash flows that may result from foreclosure less costs for obtaining and selling the collateral. For collective assessment, the non-impaired financing and impaired financing which are not individually significant are grouped on the basis of homogeneous risk characteristics that are indicative of the customers’ ability to pay all amounts due according to the contractual terms. The collective impairment is computed by multiplying the exposure with the PD and LGD. The PD is based on migration or regression analysis and the LGD is determined by using the collateral shortfall method. Where a financing is uncollectible, it is written off against the related allowance for financing impairment. Such financing are only written off after the necessary procedures have been completed and the amount of the loss has been determined. In addition, the Bank has commenced time triggered write off for uncollectible financing. The collection process for all time triggered write off financing remains on going until all legal recourse are exhausted. Subsequent recoveries of the amounts previously written off are recognised in profit or loss. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Where a financing shows evidence of credit weaknesses, the Bank may seek to renegotiate the financing rather than to take possession of collateral. This may involve an extension of the payment arrangements via rescheduling or the renegotiation of new financing terms and conditions via restructuring. Management monitors the renegotiated financing to ensure that all the revised terms are met and that the payments are made promptly for a continuous period. Where an impaired financing is renegotiated, the customer must adhere to the revised and/or restructured payment terms for a continuous period of six months for non-retail financing and three months for retail financing before the financing is classified as non-impaired. These financing continue to be subjected to individual or collective impairment assessment.
  222. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 3 . SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.2 Summary of significant accounting policies (cont’d) (d) Financial assets (cont’d) Accounting policies applied until 31 December 2017 (cont’d) (3) Impairment of financial assets (cont’d) (ii) Financial investments AFS The Bank assesses at each reporting period whether there is objective evidence that a financial investment classified as AFS is impaired. In the case of quoted equity investments, a significant or prolonged decline in the fair value of the security below its cost is also considered in determining whether objective evidence of impairment exists. Where such evidence exists, the cumulative loss (measured as the difference between the acquisition cost and the current fair value, less any impairment loss previously recognised) is removed from equity and recognised in profit or loss. Impairment losses on AFS equity investments are not reversed in profit or loss in the subsequent periods. Increase in fair value, if any, subsequent to impairment loss is recognised in other comprehensive income. For AFS debt investments, impairment losses are subsequently reversed in profit or loss if an increase in the fair value of the investment can be objectively related to an event occurring after the recognition of the impairment loss in profit or loss. (iii) Financial investments HTM The Bank assesses at each reporting period whether objective evidence of impairment of financial investments HTM exists as a result of one or more loss events and that loss event has an impact on the estimated future cash flows of the financial investment or group of financial investments that can be reliably estimated. Where there is objective evidence of impairment, an impairment loss is recognised as the difference between the acquisition cost and the present value of the estimated future cash flows, less any impairment loss previously recognised. (e) Financial liabilities Financial liabilities are initially recognised at the fair value of consideration received less directly attributable transaction costs. Subsequent to initial recognition, financial liabilities are measured at amortised cost. Financial liabilities measured at amortised cost include deposits from customers and financing scheme funds. Financial liabilities are derecognised when they are redeemed or extinguished. (f) Determination of fair value The Bank measures financial assets at FVOCI (2017: financial investments AFS) at fair value at each reporting date. 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: (i) In the principal market for the assets or liabilities, or (ii) In the absence of a principal market, in the most advantageous market for the assets or liabilities. The principal or the most advantageous market must be accessible to the Bank. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the assets or liabilities, assuming that market participants act in their economic best profit. The Bank uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. LAPORAN TAHUNAN 2018 ANNUAL REPORT 207
  223. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 3 . SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.2 Summary of significant accounting policies (cont’d) (g) Financial guarantee contracts and financing commitments Financial guarantee contracts are contracts that require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified customer fails to make payments when due, in accordance with the terms of a debt instrument. Such financial guarantees are given to banks, financial institutions and others on behalf of customers to secure financing, overdrafts and other banking facilities. Financial guarantee contracts are initially measured at fair value and subsequently measured at the higher of: • The expected credit losses under MFRS 9; and • The premium received on initial recognition less income recognised in accordance with the principles of MFRS 15. Financing commitments provided by the Bank are measured as the amount of the loss allowance. The Bank has not provided any commitment to provide financing/advances at a below-market profit rate, or that can be settled net in cash or by delivering or issuing another financial instrument. (h) Foreign currency 208 In preparing the financial statements of the Bank, transactions in currencies other than the Bank’s functional currency are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting date, monetary items denominated in foreign currencies are retranslated at the rates prevailing at the reporting date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. AGROBANK 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 or losses are recognised directly in equity. Exchange differences arising from such non-monetary items are also recognised directly in equity. (i) Income tax (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 at 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) Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Deferred tax Deferred tax is provided for, using the “liability” method, on temporary differences as of the reporting period between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax liabilities are recognised for all taxable temporary differences while deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised. Deferred tax is not recognised if the temporary differences arising from goodwill or from the initial recognition of an asset or a liability in a transaction which is not a business combination and at the time of the transaction, affects neither the accounting profit nor taxable profit. The carrying amount of deferred tax assets, if any, is reviewed at each reporting period and reduced to the extent that it is no longer probable that sufficient future taxable profits will be available to allow all or part of the assets to be recovered.
  224. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 3 . SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.2 Summary of significant accounting policies (cont’d) (i) Income tax (cont’d) (ii) Deferred tax (cont’d) Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled, based on tax rates that have been enacted or substantially enacted at the reporting period. Deferred tax is recognised in profit or loss, except when it arises from a transaction which is recognised directly in equity. Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Bank intends to settle its current tax assets and liabilities on a net basis. (j) Employees’ benefit (i) Short-term benefit Wages, salaries, other fixed remuneration and bonuses are recognised as expenses in the year that services have been rendered by the employees. Medical leave is recognised when the absences occur. (ii) Defined contribution plan The Bank is required by law to make monthly contributions to the Employees Provident Fund (“EPF”) at certain prescribed rates based on the employees’ salaries. Such contributions are recognised as an expense in profit or loss as incurred. (iii) Retirement benefit Eligible staff are entitled for a lump sum gratuity payment upon attainment of normal retirement age of 60 years or early retirement age of 45 years for female employees and 50 years for male employees. The gratuity payment is equivalent to 0.75 of their last drawn salary multiplied by the number of years of service and a leave replacement benefit payment equivalent to 4 times their last drawn salary. The retirement benefit liability recognised in the statement of financial position is the present value of the defined benefit obligation at the end of the reporting period, together with adjustments for actuarial gains or losses and unrecognised past service cost reflecting only the number of years of service completed up to the reporting date. The defined benefit obligation, calculated using the projected unit credit method, by discounting the estimated future cash outflows using market yields at the end of the reporting period on Government Investment Issues which have currency and terms to maturity approximating the terms of the related liability. Actuarial gains or losses arising from experience adjustments and changes in actuarial assumptions are recognised in other comprehensive income in the period in which they arise. The actuarial gains or losses are not subsequently reclassified to profit or loss in subsequent periods. (k) Impairment of non-financial assets The carrying amount of property, plant and equipment and intangible assets are reviewed to determine whether there is any indication of impairment. An impairment loss is recognised in profit or loss whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of fair value less cost to sell and value in use. 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 assessment of the time value of money and the risk specific to the asset for which the estimates of future cash flow have not been adjusted. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss. LAPORAN TAHUNAN 2018 ANNUAL REPORT 209
  225. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 3 . SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.2 Summary of significant accounting policies (cont’d) (k) Impairment of non-financial assets (cont’d) An impairment loss is only reversed to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of amortisation or depreciation, if no impairment loss had been recognised. A reversal of an impairment loss is recognised in profit or loss immediately. (l) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Freehold land and work in progress are not depreciated. Property, plant and equipment are depreciated on a straight-line method at rates calculated to write off the cost less residual value of the assets over their estimated useful lives. The annual depreciation rates used are as follows: Buildings Motor vehicles Furniture and fixtures Equipment and office machines Computer hardware 2% 20% 20% 10% 20% Where parts of items of property, plant and equipment have different useful lives, the cost of the items is allocated on a reasonable basis and is depreciated separately. 210 AGROBANK Leasehold land is depreciated over the period of its respective leases. At each reporting period, the residual values and useful lives of the property, plant and equipment are reviewed, and the effect of any changes is recognised prospectively. Gain or loss arising from the disposal of an asset are determined as the difference between the net disposal proceeds and the carrying amount of the asset, and is recognised in profit or loss. Costs of repair and maintenance are charged to profit or loss in the year in which the costs are incurred. (m) Intangible assets Intangible assets consist of computer software which are initially recorded at cost. Subsequent to the recognition, computer software are measured at cost less accumulated amortisation and accumulated impairment losses, if any. Amortisation is calculated using the straight-line method to allocate the cost of computer software over their estimated useful lives of 3 years. Gain or loss arising from the disposal of the asset is determined as the difference between the net disposal proceeds and the carrying amount of the asset, and is recognised in profit or loss. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Subsequent expenditure on an intangible asset after its purchase or completion is recognised as an expense when it is incurred, unless it is probable that this expenditure will enable the asset to generate future economic benefits in excess of its originally assessed standard of performance and the expenditure can be measured and attributed to the asset reliably. (n) Leases Leases are classified as finance lease or operating lease. Leases are classified as finance leases where the Bank assumes substantially all the risks and rewards of ownership of the assets. Assets under operating leases are not recognised in the statement of financial position as the risks and rewards rest with the lessor. Lease rental is charged to profit or loss on the straight-line basis over the lease term. Benefits received or receivable as an incentive to enter into an operating lease are recognised on the straight-line basis over the lease term. However, contingent rentals arising from operating leases are recognised as an expense in a manner consistent with the basis on which they are determined.
  226. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 3 . SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.2 Summary of significant accounting policies (cont’d) (o) Foreclosed properties Foreclosed properties are those acquired in order to settle the debts and are stated at the lower of cost and net realisable value. (p) Provisions Provisions are recognised when there is a present legal or constructive obligation as a result of past events, when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and when a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at the end of each reporting period and if it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provisions are reversed. Where the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risk specific to the liability. (q) Share capital Ordinary shares are classified as equity when there is no contractual obligation to transfer cash or other financial assets. Costs directly attributable to the issuance of new equity shares are taken to equity as a deduction from the proceeds. (r) Cash and cash equivalents For the purposes of the statement of cash flow, cash and cash equivalents comprise cash on hand, demand deposits and highly liquid investments with original maturities of 3 months or less that are convertible into cash with an insignificant risk of changes in value. 3.3 Standards issued but not yet effective As at the date of authorisation of these financial statements, the following MFRS and amendments to MFRS have been issued by the Malaysian Accounting Standards Board (“MASB”) but are not yet effective which have not been adopted by the Bank. Effective for financial periods beginning on or after 1 January 2019 Amendments to MFRS 9 Prepayment Features with Negative Compensation MFRS 16 Leases Amendments to MFRS 128 Long-term Interests in Associates and Joint Ventures Annual Improvements to MFRS Standards 2015-2017 Cycle IC Interpretation 23 Uncertainty over Income Tax Treatments Effective for financial periods beginning on or after 1 January 2021 MFRS 17 Insurance Contracts Effective for financial periods to be determined by the Malaysian Accounting Standards Board (“MASB”) Amendments to MFRS 10 and MFRS 128 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture The Bank plans to adopt the above pronouncements when they become effective in the respective financial periods. These pronouncements are expected to have no significant impact to the financial statements of the Bank upon their initial application, other than as discussed below: LAPORAN TAHUNAN 2018 ANNUAL REPORT 211
  227. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 3 . SIGNIFICANT ACCOUNTING POLICIES (cont’d) 3.3 Standards issued but not yet effective (cont’d) MFRS 16 Leases MFRS 16 will supersede the current lease guidance including MFRS 117 Leases, IC Interpretation 4 Determining whether an Arrangement contains a Lease, IC Interpretation 115 Operating Leases – Incentives and IC Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The Bank will apply MFRS 16 for the financial period beginning 1 January 2019. MFRS 16 introduces a single lessee accounting model, requiring a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Whereas, a lessor continues to classify leases as operating or finance following the rights and rewards approach of the current MFRS 117 standard. The Bank is currently assessing the financial impact that may arise from the adoption of MFRS 16 by establishing a structured implementation programme to ensure a smooth implementation of MFRS 16. 4. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENT The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of income, expense, assets and liabilities and the disclosure of contingent liabilities at the reporting date. Uncertainty about these assumptions and estimates could result in outcomes that could require material adjustment to the carrying amount of the asset or liability affected in the future. Critical judgements made in the application of accounting policies 212 AGROBANK The following judgments are made by the management in the process of applying the Bank’s accounting policies that have the most significant impact on the financial statements. (a) Accounting for government assistance In carrying out its mandated role, the Bank receives various assistance from the Malaysian government either in the form of grant or financing. There are also arrangements where the Bank acts as an agent for the government in managing funds, and this arrangement is treated off-balance sheet. Judgement has been applied by management to determine the classification of government assistance whether as grants, financing or off-balance sheet. (b) Measurement of the expected credit losses (“ECL”) The measurement of the expected credit loss allowance for financial assets measured at amortised cost and FVOCI is an area that requires the use of complex models and significant assumptions about future economic conditions and credit behaviour (e.g. the likelihood of customers defaulting and the resulting losses). Explanation of the inputs, assumptions and estimation techniques used in measuring ECL is further detailed in Note 35, which also sets out key sensitivities of the ECL to changes in these elements. A number of significant judgements are also required in applying the accounting requirements for measuring ECL, such as: Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information • Determining criteria for significant increase in credit risk; • Choosing appropriate models and assumptions for the measurement of ECL; • Establishing the number and relative weightings of forward-looking scenarios for each type of product/market and the associated ECL; and • Establishing groups of similar financial assets for the purposes of measuring ECL. Key sources of estimation uncertainty The key 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, are described below. The Bank based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Bank. Such changes are reflected in the assumptions when they occur.
  228. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 4 . SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENT (cont’d) Key sources of estimation uncertainty (cont’d) (a) Provision for compensation claim Provision for compensation claim is the amount that the Bank would rationally pay to settle the obligation estimated at the end of the reporting period. The estimates of outcomes and financial effect are determined by the judgement of the management of the Bank and supplemented by opinions from legal counsels and reports from independent experts (Note 12). 5. TRANSITION DISCLOSURES The following pages set out the impact of adopting MFRS 9 on the statement of financial position, and retained earnings. The impact on classification and measurement to the Bank’s financial assets and financial liabilities are summarised below on the initial application of MFRS 9 on 1 January 2018 is as follows: Measurement category MFRS 139 MFRS 9 Financial assets Cash and short term funds Investment securities Financing and advances Other advances Other financial assets Financing & receivables (“FAR”) AFS FAR FAR FAR Amortised cost FVOCI Amortised cost Amortised cost Amortised cost Amortised cost Amortised cost Financial liabilities Other financial liabilities Reconciliation of carrying amount from MFRS 139 to MFRS 9 as at 1 January 2018 The Bank has assessed which business model applies to the financial assets at the date of initial application of MFRS 9, 1 January 2018 and has reclassified its financial instruments. The main effects resulting from this reclassification are as follows: Financial assets at FVOCI MFRS 139 carrying amount at Reclassification 31 December and 2017 remeasurement RM’000 RM’000 - 4,411,116 Investment securities 4,403,960 Financing and advances 9,173,891 6,654 34,067 - Other advances Other assets Deferred tax asset Other liabilities ECL allowance for financial guarantees and financing commitments Reserves Investment revaluation deficit FVOCI reserves Retained earnings (4,403,960) Expected credit loss RM’000 (7,708) MFRS 9 carrying amount at 1 January 2018 RM’000 4,403,408 - - 14,912 9,195,457 (8,450) 25,617 115,296 (6,654) 1,751 110,393 13,994 (1,973) - 12,021 6,050 6,050 - (27,303) - 1,337,112 - 27,303 (21,403) (717) - - (5,545) (21,403) 1,330,850 LAPORAN TAHUNAN 2018 ANNUAL REPORT 213
  229. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 6 . INCOME DERIVED FROM INVESTMENT OF: 2018 RM’000 2017 RM’000 (a) Depositors’ funds and others (i) Term deposits (ii) Other deposits 495,106 228,251 433,858 213,280 723,357 647,138 2018 RM’000 2017 RM’000 336,424 288,547 15,484 93,022 - 4,349 14,351 89,204 4,801 2,545 5 - 2 1,445 18,687 22,061 1,084 1,423 16,500 18,215 815 495,106 433,858 8,336 10,135 (i) Income derived from investment of term deposits Finance income and hibah Profit from financing Profit from financial assets: Deposits with banks and other financial institutions FVOCI Financial investments - AFS Accretion of discount less amortisation of premium Gain arising from derecognition of financial assets at FVOCI Gross dividend income from financial assets at FVOCI Gross dividend income from AFS 214 AGROBANK Fee income Financing processing fees Banking service fees Ar-Rahnu fees Ta’widh fees Total income derived from investment of term deposits Of which: Profit income earned on impaired financing and advances Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information
  230. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 6 . INCOME DERIVED FROM INVESTMENT OF: (cont’d) (a) Depositors’ funds and others (cont’d) (ii) Income derived from investment of other deposits Finance income and hibah Profit from financing Profit from financial assets: Deposits with banks and other financial institutions FVOCI Financial investments - AFS Accretion of discount less amortisation of premium Gain arising from derecognition of financial assets at FVOCI Gross dividend income from financial assets at FVOCI Gross dividend income from AFS Fee income Financing processing fees Banking service fees Ar-Rahnu fees Ta’widh fees Total income derived from investment of other deposits Of which: Profit income earned on impaired financing and advances 2018 RM’000 2017 RM’000 155,097 141,847 7,138 42,884 - 2,005 7,055 43,852 2,360 1,173 2 - 1 667 8,614 10,171 500 700 8,111 8,954 400 228,251 213,280 3,843 4,982 2018 RM’000 2017 RM’000 Restated 135,377 123,219 6,231 37,432 - 1,750 6,128 38,093 2,050 1,024 2 - 1 582 10,671 7,520 - 8,877 436 607 10,812 7,046 30,099 7,778 348 (b) Shareholder’s funds Finance income and hibah Profit from financing Profit from financial assets: Deposits with banks and other financial institutions FVOCI Financial investments - AFS Accretion of discount less amortisation of premium Gain arising from derecognition of financial assets at FVOCI Gross dividend income from financial assets at FVOCI Gross dividend income from AFS Fee income Financing processing fees Government Link Companies (“GLC”) service fees Banking service fees Reimbursement of gapping cost Ar-Rahnu fees Ta’widh fees LAPORAN TAHUNAN 2018 ANNUAL REPORT 215
  231. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 6 . INCOME DERIVED FROM INVESTMENT OF: (cont’d) 2018 RM’000 2017 RM’000 Restated 4 3,106 607 1,224 1,195 14 1,780 1,360 1,902 1,539 (2) (4) 3 (166) 348 208 (2,011) 22 - 1,826 19 63 (436) 459 60 (2,714) 109 1,466 1,645 (b) Shareholder’s funds (cont’d) Other Operating Income Reimbursement of Special Relief Grant for Flood (“SRGF”) Staff financing Proceeds from sale of crops - Ladang Sg Tasan Amortisation and utilisation of launching grant Amortisation of operating grant Utilisation/(writeback) of government grant - funds: Entrepreneur Scheme for Graduates (Note 28(a)) Special Fund for Terengganu Fishery (Note 28(b)) Development Programme for Hard-core Poor (Note 28(c)) Fund for Ministry of Youth and Sports (Note 28(d)) Bumiputera Commercial and Industrial Community Scheme HUB (Note 28(e)) National Key Economic Area (Note 28(f)) Micro Economic Stimulation Package (Note 28(g)) Micro ESP Flood Relief (Note 28(h)) Gain on disposal of property, plant and equipment Other income 216 AGROBANK Of which: Profit income earned on impaired financing and advances 7. Allowance (made)/written back for: Financing and advances Other advances Financial guarantees and financing commitments Other assets Mengenai Kami Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information 233,447 3,355 4,325 2018 RM’000 2017 RM’000 Restated (Allowance For)/Writeback of Impairment 01 About Us 216,262 (a) (b) (c) (d) (47,462) 29,061 1,519 93 (17,061) 18,362 - (16,789) 1,301
  232. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 7 . (Allowance For)/Writeback of Impairment (cont’d) (a) Financing and advances 2018 RM’000 2017 RM’000 Restated Stage 1- 12-month ECL Stage 2- Lifetime ECL not credit-impaired Stage 3- Lifetime ECL credit-impaired 14,250 4,410 (84,555) - ECL for financing and advances (65,895) - Allowance for the year Amount written back upon recoveries and reversal of allowance - - (36,688) 44,030 Individual impairment allowance - net - 7,342 Allowance for the year Amount written back - - (180,551) 140,657 Collective impairment allowance - net - (39,894) Bad debts and financing recovered 18,433 15,491 (47,462) (17,061) (b) Other advances 2018 RM’000 2017 RM’000 Restated Stage 1- 12-month ECL Stage 2- Lifetime ECL not credit-impaired Stage 3- Lifetime ECL credit-impaired 256 184 12,336 - Writeback of other advances 12,776 - Allowance for the year Amount written back upon recoveries and reversal of allowance - - (2,791) 3,998 Individual impairment allowance - net - 1,207 Allowance for the year Amount written back - - (2,552) 3,604 Collective impairment allowance - net - 1,052 Bad debts and financing recovered 16,285 16,103 29,061 18,362 LAPORAN TAHUNAN 2018 ANNUAL REPORT 217
  233. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 7 . WRITEBACK OF IMPAIRMENT (cont’d) (c) Financial guarantees and financing commitments 2018 RM’000 2017 RM’000 Stage 1- 12-month ECL Stage 2- Lifetime ECL not credit-impaired Stage 3- Lifetime ECL credit-impaired 1,539 (20) - - 1,519 - 2018 RM’000 2017 RM’000 Stage 1- 12-month ECL Stage 2- Lifetime ECL not credit-impaired Stage 3- Lifetime ECL credit-impaired - - 93 - 93 - 2018 RM’000 2017 RM’000 (d) Other assets 8. 218 AGROBANK Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information INCOME ATTRIBUTABLE TO DEPOSITORS Deposits from customers: Mudharabah Funds Reversal of provision of undistributed profit - (5,072) - (5,072) Non-Mudharabah Funds Fixed Return Islamic Account-i (FRIA-i) FRIA-i 45Plus Agro Perdana-i Agro-i Deposits Qard Agro Muda-i Agro Tetangga-i Agro Prima 120,750 12,943 10,717 10,985 8,759 1,983 243 93 131,761 13,233 10,319 12,092 8,076 2,577 254 32 166,473 178,344 Deposits and placement of banks and other financial institutions: Non-Mudharabah Funds Pelaburan Khas-i 114,673 67,076 281,146 240,348
  234. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 9 . PERSONNEL EXPENSES 2018 RM’000 2017 RM’000 Salaries, allowances and bonuses EPF contributions SOCSO contributions Medical takaful Staff welfare Non-executive directors’ allowances Staff training Recruitment fees Retirement benefits scheme Others 228,419 28,646 2,417 8,859 7,231 2,104 3,268 1,018 (613) 1,175 230,058 26,569 2,360 8,772 7,030 1,955 2,690 1,370 (244) 1,394 282,524 281,954 2018 RM’000 2017 RM’000 10. OTHER OVERHEADS AND EXPENDITURES Maintenance cost Depreciation of property, plant and equipment Amortisation of computer software Write off of property, plant and equipment Write off of intangible assets Computer maintenance Rental of premises Water and electricity Printing, stationery and office supplies Office maintenance Takaful on property, plant and equipment Building maintenance Quit rent and assessment Vehicle maintenance Computer supply Others 21,405 12,934 259 - 19,397 9,917 9,624 8,446 3,948 3,079 4,578 1,061 185 461 246 24,942 13,516 590 316 18,623 9,259 9,562 8,584 4,150 2,192 3,968 1,116 179 492 (333) 95,540 97,156 Marketing expenses Advertising and promotions Others 2,891 - 4,645 528 2,891 5,173 LAPORAN TAHUNAN 2018 ANNUAL REPORT 219
  235. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 10 . OTHER OVERHEADS AND EXPENDITURES (cont’d) 2018 RM’000 2017 RM’000 14,475 69 5,911 20,304 12,618 106 6,778 15,309 1,788 13 38 2,233 11,303 963 3,190 458 43 38 4,037 10,592 1,609 4,072 60,287 55,660 158,718 157,989 2018 RM’000 2017 RM’000 423 583 8,675 45,891 5,142 5,137 946 1,310 211 15 15 476 478 8,298 44,084 4,965 5,161 901 170 309 - Less : Income from fair value amortisation 68,348 64,842 7,925 39,475 4,392 4,387 771 1,060 211 15 7,548 37,668 4,215 4,411 728 138 309 - 58,236 55,017 10,112 9,825 General administrative expenses Communication expenses Launching grants Legal fees Commissions and fees Auditors’ remuneration - Statutory audit - Regulatory related services - Others Goods and services tax Security charges Agro Perdana ID card Others 11. FINANCE COSTS 220 AGROBANK Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Profit paid on financing scheme funds Fund For Food (“3F”) (Note 25 (a)) Micro Enterprise Fund (Note 25 (c)) Commercial Agriculture Fund (“DPK-GLC”) (Note 25 (d)) Agriculture Entrepreneur Financing Scheme Fund 1 (“DPUP 1”) (Note 25 (e)) Agriculture Entrepreneur Financing Scheme Fund 2 (“DPUP 2”) (Note 25 (f)) Agriculture Entrepreneur Financing Scheme Fund 3 (“DPUP 3”) (Note 25 (g)) Agriculture Entrepreneur Financing Scheme Fund 4 (“DPUP 4”) (Note 25 (h)) Agriculture Entrepreneur Financing Scheme Fund 5 (“DPUP 5”) (Note 25 (i)) Special Relief Facility (Note 25 (k)) Fund for Small and Medium Size Industries (“TIKS”) (Note 25 (l)) Disaster Relief Facility (Note 25 (m)) Amortisation of DPK-GLC Grant (Note 28 (j)) Amortisation of DPUP 1 Grant (Note 28 (k)) Amortisation of DPUP 2 Grant (Note 28 (l)) Amortisation of DPUP 3 Grant (Note 28 (m)) Amortisation of DPUP 4 Grant (Note 28 (n)) Amortisation of DPUP 5 Grant (Note 28 (o)) Amortisation of Special Relief Facility (Note 28 (p)) Amortisation of Disaster Relief Facility (Note 28 (q))
  236. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 12 . COMPENSATION CLAIM 2018 RM’000 79 Compensation claim 2017 RM’000 (38,832) The amount in prior year was mainly due to the writeback of excess provision upon the settlement of a legal claim against the Bank. 13. TAX EXPENSE Income tax: Malaysian income tax Under/(over) provision in prior years 2018 RM’000 2017 RM’000 51,245 5,115 38,579 (3,527) Deferred tax: Relating to origination and reversal of temporary differences (Over)/under provision in prior years 56,360 35,052 Tax expense for the year 51,513 (2,104) (2,743) 19,336 929 55,317 Income tax is calculated at the Malaysian statutory tax rate of 24% (2017: 24%) of the estimated assessable profit for the year. The reconciliation between tax expense and accounting profit of the Bank multiplied by the applicable corporate tax rate are as follows: 2018 RM’000 2017 RM’000 190,251 230,602 Tax at the applicable statutory tax rate of 24% (2017: 24%) Tax effects of: Income not subject to tax Expenses not deductible for tax purposes Under/(over) provision in prior years: Income tax Deferred tax 45,660 55,344 Tax expense 51,513 55,317 2018 RM’000 2017 RM’000 4,756 2,631 Profit before tax and zakat (581) 4,062 (825) 3,396 5,115 (2,743) (3,527) 929 14. ZAKAT Zakat for the year Zakat represents business zakat payable by the Bank to comply with the principles of Shariah and as approved by the Shariah Committee. The Bank only pays zakat on its business and does not pay zakat on behalf of depositors or shareholder. Zakat provision is initially calculated based on 2.5% of capital growth model method. However, it is compared against 2.5% of the Bank’s audited profit before tax (“PBT”) for the year, and the higher of the two is the final zakat payable by the Bank. The Bank has distributed the zakat to eligible beneficiaries (asnaf) among needy individuals, mosque, non-governmental organisations, higher learning institutions (needy student welfare funds) and schools as guided and approved by Shariah Committee. LAPORAN TAHUNAN 2018 ANNUAL REPORT 221
  237. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 15 . CASH AND SHORT TERM FUNDS Cash in hand Cash at banks Short term deposits maturing within three months: Licensed banks Other financial institutions 2018 RM’000 2017 RM’000 125,713 253,447 117,570 198,048 411,275 341,054 507,875 485,190 1,131,489 1,308,683 The detail on the short term deposits are as follows: Average maturities Weighted average effective profit rates (per annum) 11 days 3.41% 20 days 3.63% 16(a)FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (FVOCI) Equity investments Debt investments 222 AGROBANK 2018 RM’000 2017 RM’000 (a) (b) 101 4,380,635 - 4,380,736 - (a) Equity investments At 1 January 2018, the Bank had designated the following investment as equity securities as FVOCI : Quoted securities KUB Malaysia Berhad 2018 RM’000 2017 RM’000 101 - (b) Debt investments Debt instruments at FVOCI comprise the following investments having solely payments of principal and profit income: Prestasi Strategik Kami Aktiviti 2018 Movements in ECL in respect of debt instruments at FVOCI are as follows: Bagaimana Kami Ditadbir Urus 03 2018 Events 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information At fair value: Corporate sukuk Government Investment Issues (“GII”) Mengenai Kami 01 About Us 02 Our Strategic Performance 2018 RM’000 2017 RM’000 2,695,696 1,684,939 - 4,380,635 - Stage 1 12-month ECL RM’000 ECL Staging Stage 2 Lifetime ECL Not Credit - Impaired RM’000 Stage 3 Lifetime ECL Credit Impaired RM’000 Total RM’000 Balance as at 1 January 2018 Effect of adopting MFRS 9 - 524 - 7,184 - - 7,708 Restated as at 1 January 2018/Balance as at 31 December 2018 524 7,184 - 7,708
  238. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 16 (b)INVESTMENT SECURITIES 2018 RM’000 2017 RM’000 Debt securities AFS - at fair value Corporate sukuk Government Investment Issues (“GII”) - - 2,874,551 1,529,241 Total debt securities - 4,403,792 Equity securities AFS - at fair value Quoted shares in Malaysia - 168 Total investment securities - 4,403,960 2018 RM’000 2017 RM’000 7,154,338 4,456,531 800,558 293,841 151,741 256,877 4,827 83,852 128,423 30,310 116,197 5,668 2,396 237,960 87,979 94 11,931 955,703 2,212 65,253 815 417,279 1,139,624 637 13,607 68,383 8,898 6,158,268 4,109,956 830,255 261,761 120,557 237,498 5,841 91,225 111,727 28,965 110,023 5,921 2,344 226,874 82,433 225 18,112 821,931 4,179 38,327 826 329,569 1,012,631 942 10,767 69,277 8,971 16,495,934 14,699,405 17. FINANCING AND ADVANCES By Product (at amortised cost) Agrocash Project Financing Fund For Food (“3F”) Ar-Rahnu Fishery Boat Financing Scheme (“SPBP”) MUST-i Oil Palm Replanting Scheme (“TASK”) MAP and MPPB Financing Financing for Small and Medium Size Industries (“PKS”) Non Food Production Credit Scheme (“SKPBM”) Food Production Credit Scheme (“SKPM”) Belia Tani Scheme Fund For Small and Medium Size Industries (“TIKS”) Working Capital-i Paddy Credit Scheme Micro Economic Stimulus Package (“Micro Esp-I”) National Key Economic Area (“NKEA”) Murabahah Working Capital Financing Insani Bai Al-Dayn Working Capital Financing MPP Hub Agro Cash Line-i Hartani-i Agro Flood Relief Special Relief Facility Commercial Agriculture Fund (“DPK3”) Others LAPORAN TAHUNAN 2018 ANNUAL REPORT 223
  239. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 17 . FINANCING AND ADVANCES (cont’d) 2018 RM’000 2017 RM’000 Brought forward from previous page Add : Staff financing and advances 16,495,934 131,003 14,699,405 105,787 Less : Unearned profit 16,626,937 (5,851,200) 14,805,192 (5,195,289) Gross financing and advances 10,775,737 9,609,903 Less : Stage 1 - 12-month ECL Stage 2 - Lifetime ECL not credit-impaired Stage 3 - Lifetime ECL credit-impaired Individual impairment allowance Collective impairment allowance (57,070) (21,843) (265,662) - - Net financing and advances at amortised cost (i) AGROBANK 10,431,162 9,173,891 2018 RM’000 2017 RM’000 1,661,658 135,579 227,090 718,476 8,032,934 1,406,150 159,844 208,124 719,826 7,115,959 10,775,737 9,609,903 2018 RM’000 2017 RM’000 69,971 394,843 3,759,434 793,087 1,060,388 29,859 1,115,192 2,273,317 1,279,646 51,283 407,615 3,781,451 790,549 1,057,338 31,896 883,108 2,401,052 205,611 10,775,737 9,609,903 By maturity 224 (139,167) (296,845) Maturity within six months Between six months to one year Between one year to three years Between three years to five years More than five years (ii) By sector Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Construction and Services Fishery Crops Livestock Manufacturing Others-Primary Agriculture Retail and Wholesale Trade Household Others
  240. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 17 . FINANCING AND ADVANCES (cont’d) (iii) By state Kuala Lumpur Selangor Pahang Perak Negeri Sembilan Melaka Johor Kelantan Kedah Perlis Sarawak Sabah Pulau Pinang Terengganu 2018 RM’000 2017 RM’000 1,347,195 1,310,672 677,868 1,176,977 315,361 452,456 954,746 583,707 741,904 165,957 1,181,533 954,319 465,014 448,028 1,059,290 1,181,432 741,050 1,007,312 301,177 381,883 862,258 532,426 632,444 153,628 1,127,687 823,130 399,251 406,935 10,775,737 9,609,903 2018 RM’000 2017 RM’000 545,865 85,101 203,838 22,655 483,232 599,254 195,900 192,377 47,935 446,202 4,320,178 2,577,481 954,102 563,447 1,019,838 3,636,340 2,319,782 820,251 499,002 852,860 10,775,737 9,609,903 (iv) By profit rate sensitivity Fixed rate : Fund For Food (“3F”) Project Financing MUST-i Agrocash Others Variable rate : Agrocash Project Financing Murabahah Working Capital Financing Hartani-i Others LAPORAN TAHUNAN 2018 ANNUAL REPORT 225
  241. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 17 . FINANCING AND ADVANCES (cont’d) (v) Financing by type and Shariah Contract Term Financing RM’000 Revolving Financing RM’000 Total RM’000 293,841 1,713,996 4,420,089 2,722,357 65,253 - 108 1,560,093 - - 293,841 1,714,104 5,980,182 2,722,357 65,253 9,215,536 1,560,201 10,775,737 261,761 2,031,825 3,391,673 2,558,478 38,327 - 4,012 1,323,827 - - 261,761 2,035,837 4,715,500 2,558,478 38,327 8,282,064 1,327,839 9,609,903 2018 RM’000 2017 RM’000 At beginning of the year Additions during the year Reclassified as non impaired during the year Recoveries during the year Amount written off 435,057 351,402 (92,312) (112,086) (142,721) 457,422 204,722 (81,559) (70,862) (74,666) At end of the year 439,340 435,057 Excluding Non-Shariah Assets Gross impaired Gross impaired ratio 439,340 4.08% 435,057 4.53% Including Non-Shariah Assets Gross impaired Gross impaired ratio 447,521 4.15% 478,666 4.95% 2018 RM’000 2017 RM’000 Sectors: Construction and Services Fishery Crops Livestock Manufacturing Others-Primary Agriculture Retail and Wholesale Trade Others 9,252 42,624 148,193 56,729 52,000 2,013 85,474 43,055 6,153 42,020 164,516 90,642 42,190 1,127 51,904 36,505 439,340 435,057 2018 Qard Bai-Al Inah Tawarruq Bai-Bithaman Ajil Murabahah 2017 Qard Bai-Al Inah Tawarruq Bai-Bithaman Ajil Murabahah 226 AGROBANK (vi) Movements in gross impaired financing and advances are as follows: Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information (vii) Impaired financing by sector
  242. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 17 . FINANCING AND ADVANCES (cont’d) (viii)Impaired financing by state 2018 RM’000 2017 RM’000 31,075 45,655 29,423 61,748 10,997 8,068 44,435 27,553 63,613 7,598 20,464 41,189 18,992 28,530 62,893 31,936 59,273 60,032 13,488 10,964 21,600 31,287 52,449 8,484 13,772 40,313 13,833 14,733 439,340 435,057 States: Kuala Lumpur Selangor Pahang Perak Negeri Sembilan Melaka Johor Kelantan Kedah Perlis Sarawak Sabah Pulau Pinang Terengganu (ix) ECL/Individual and collective impairment allowance LAPORAN TAHUNAN 2018 ANNUAL REPORT Movements in impairment allowances are as follows: Stage 1 12-month ECL RM’000 ECL Staging Stage 2 Lifetime ECL Not Credit- Impaired RM’000 Balance as at 1 January 2018 Effect of adopting MFRS 9 - 61,698 - 37,937 - 314,811 Restated as at 1 January 2018 61,698 37,937 314,811 Transfer to Stage 1 Transfer to Stage 2 Transfer to Stage 3 Allowance (written back)/made during the year 16,782 (4,786) (2,374) (9,207) 6,314 (8,791) (14,250) (4,410) New financing and advances originated* Net remeasurement due to changes in credit risk Financial assets that have been derecognised Write off Balance as at 31 December 2018 Stage 3 Lifetime ECL Collective Individual Credit- Assessment Assessment Impaired Allowance Allowance RM’000 RM’000 RM’000 296,845 (296,845) 139,167 (139,167) Total RM’000 436,012 (21,566) - - 414,446 (7,575) (1,528) 11,165 - - - - - - - 84,555 - - 65,895 997 4,119 - - 23,065 (19,978) 6,375 115,365 - - 101,762 (12,221) (11,782) (34,929) - - (58,932) (135,766) - - (135,766) 265,662 - - 344,575 17,949 - - 57,070 21,843 * New financing and advances originated include those which were not credit-impaired at origination but the credit risk has deteriorated. 227
  243. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 17 . FINANCING AND ADVANCES (cont’d) (ix) ECL/Individual and collective impairment allowance (cont’d) Financial assets that are purchased or originated and credit-impaired The Bank does not purchase or originate credit impaired financing and advances. Impact on movements in gross carrying amount on allowance for financing and advances The following explains how significant changes in the gross carrying amount of financing and advances during the financial year have contributed to the changes in the allowance for impairment on financing and advances for the Bank. Overall, the total allowance for impairment on financing and advances for the Bank decreased by RM69.87 million, due to the following: (a) 12-month ECL (Stage 1) – decrease of RM4.63 million for the Bank, mainly due to: - - Financing and advances that were repaid or remeasurement of ECL due to improvement in credit quality; and Partially offset by financing and advances that were newly originated. (b) Lifetime ECL Not Credit-Impaired (Stage 2) – decrease of RM16.09 million for the Bank, mainly due to: - - (c) 228 Lifetime ECL Credit-Impaired (Stage 3) – decrease of RM49.15 million for the Bank, mainly due to: - - AGROBANK Financing and advances that were fully repaid; and Financing and advances that migrated into Stage 1 due to improvement in credit quality. Financing and advances that were fully repaid or written off; and Partially offset by remeasurement of ECL due to deterioration of credit quality. (ix) ECL/Individual and collective impairment allowance Movement in impairment allowance are as follows: Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement 2018 RM’000 2017 RM’000 Individual impairment allowance At beginning of the year - 155,055 Allowance for the year Amount written back upon recoveries and reversal of allowance - - 36,688 (44,030) Net allowance for the year Amount written off - - (7,342) (8,546) At end of the year - 139,167 Collective impairment allowance At beginning of the year - 305,023 Allowance for the year Amount written back - - 180,551 (140,657) Net allowance for the year Amount written off - - 39,894 (48,072) At end of the year - 296,845 Collective impairment allowance as a percentage of gross financing and advances less individual impairment allowance - 3.13% Maklumat Tambahan 06 Additional Information
  244. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 17 . FINANCING AND ADVANCES (cont’d) (ix) ECL/Individual and collective impairment allowance (cont’d Included in net ECL/collective impairment allowance charged/(written back) during the year are allowance relating to financing and advances funded using the government grants as detailed below: Note Entrepreneur Scheme for Graduates Special Fund for Terengganu Fishery Development Programme for Hard-core Poor Fund for Ministry of Youth and Sports Bumiputera Commercial and Industrial Community Scheme HUB National Key Economic Area Micro Economic Stimulation Package Micro ESP Flood Relief 2018 RM’000 2017 RM’000 28(a) 28(b) 28(c) 28(d) 28(e) 28(f) 28(g) 28(h) (2) (4) 3 (166) 348 208 (2,011) 22 19 63 (436) 459 60 (2,714) 109 (1,602) (2,440) 18. OTHER ADVANCES (i) Non-Shariah Assets 2018 RM’000 2017 RM’000 17,027 60,596 Less : Stage 1 - 12-month ECL Stage 2 - Lifetime ECL not credit-impaired Stage 3 - Lifetime ECL credit-impaired Individual impairment allowance Collective impairment allowance (142) (398) (6,939) - - (21,370) (5,159) Non-Shariah Assets at amortised cost 9,548 34,067 Other advances relate to customer loans not in compliance with Shariah principles. All income earned during the year from these loans amounting to RM2,604,674 (2017: RM2,441,812) will be channelled to approved charities. (ii) Movements in gross impaired Non-Shariah Assets are as follows: At beginning of the year Additions during the year Reclassified as non credit-impaired during the year Recoveries during the year Amount written off At end of the year Gross impaired Non-Shariah Assets as a percentage of gross Non-Shariah Assets 2018 RM’000 2017 RM’000 43,609 3,722 (1,069) (3,744) (34,337) 50,636 11,583 (1,590) (12,928) (4,092) 8,181 43,609 48.05% 71.97% Ongoing efforts are made by Remedial and Recovery Department (“RRD”) and Credit Recovery Centre (“CRC”) to reduce the impaired Non-Shariah Assets (“NSA”) accounts through rescheduling or restructuring and conversion to Islamic accounts for qualified cases. Where rehabilitative efforts failed, RRD and CRC will pursue recovery actions, including litigation, until all efforts are exhausted. LAPORAN TAHUNAN 2018 ANNUAL REPORT 229
  245. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 18 . OTHER ADVANCES (cont’d) (iii) ECL/Individual and collective impairment allowance (cont’d) Movements in impairment allowances are as follows: 230 AGROBANK ECL Staging Stage 1 Stage 2 Lifetime ECL 12-month Not Credit- ECL Impaired RM’000 RM’000 Stage 3 Lifetime ECL Collective Individual Credit- Assessment Assessment Impaired Allowance Allowance RM’000 RM’000 RM’000 Balance as at 1 January 2018 Effect of adopting MFRS 9 - 67 - 551 - 34,361 Restated as at 1 January 2018 67 551 34,361 Transfer to Stage 1 Transfer to Stage 2 Transfer to Stage 3 517 (129) (57) (314) 494 (149) Allowance written back during the year Net remeasurement due to changes in credit risk Financial assets that have been derecognised (256) 189 Write off Balance as at 31 December 2018 5,159 (5,159) 21,370 (21,370) Total RM’000 26,529 8,450 - - 34,979 (203) (365) 206 - - - - - - - (184) (12,336) - - (12,776) (181) (988) - - (980) (3) (11,348) - - (11,796) - - (14,724) - - (14,724) 142 398 6,939 - - 7,479 (445) * There are no new other advances originated during the year. Financial assets that are purchased or originated and credit-impaired The Bank does not purchase or originate credit impaired advances. Impact on movements in gross carrying amount on allowance for other advances The following explains how significant changes in the gross carrying amount of other advances during the financial year have contributed to the changes in the allowance for impairment on other advances for the Bank. Overall, the total allowance for impairment on other advances for the Bank decreased by RM27.50 million, due to the following: (a) 12-month ECL (Stage 1) – increase of RM0.08 million for the Bank, mainly due to: - - Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events (b) Lifetime ECL Not Credit-Impaired (Stage 2) – decrease of RM0.15 million for the Bank, mainly due to: Bagaimana Kami Ditadbir Urus - 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Other advances that were fully repaid; and Offset by other advances that migrated into Stage 1 or remeasurement of ECL due to improvement in credit quality. (c) Other advances that migrated into Stage 1 or remeasurement of ECL due to improvement in credit quality. Lifetime ECL Credit-Impaired (Stage 3) – decrease of RM27.42 million for the Bank, mainly due to: - Other advances that were fully repaid or written off.
  246. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 18 . OTHER ADVANCES (cont’d) (iii) ECL/Individual and collective impairment allowance 2018 RM’000 2017 RM’000 Individual impairment allowance At beginning of the year - 23,919 Allowance for the year Amount written back upon recoveries and reversal of allowance - - 2,791 (3,998) Net (writeback)/allowance for the year Amount written off - - (1,207) (1,342) At end of the year - 21,370 Collective impairment allowance At beginning of the year - 8,961 Allowance for the year Amount written back - - 2,552 (3,604) Net writeback for the year Amount written off - - (1,052) (2,750) At end of the year - 5,159 Collective impairment allowance as a percentage of gross Non-Shariah Assets less individual impairment allowance - 13.15% 2018 RM’000 2017 RM’000 2,718 2,930 3,377 81,248 37,360 2,718 12,182 3,377 72,398 30,346 Less: Stage 1 - 12-month ECL Stage 2 - Lifetime ECL not credit-impaired Stage 3 - Lifetime ECL credit-impaired Individual impairment allowance 127,633 - - (12,286) - 121,021 (5,725) Other assets, net of impairment 115,347 115,296 19. OTHER ASSETS Foreclosed properties Tax recoverable Project Ladang BPM - Sg Tasan Profit and income receivable Other receivables Movements in impairment allowances are as follows: ECL Staging Stage 1 Stage 2 Lifetime ECL 12-month Not Credit- ECL Impaired RM’000 RM’000 Stage 3 Lifetime ECL Individual Credit- Assessment Impaired Allowance RM’000 RM’000 Balance as at 1 January 2018 Effect of adopting MFRS 9 - - - - - 12,379 Restated as at 1 January 2018 - - 12,379 Allowance written back during the year - - Balance as at 31 December 2018 - - (93) 12,286 5,725 (5,725) - - - Total RM’000 5,725 6,654 12,379 (93) 12,286 LAPORAN TAHUNAN 2018 ANNUAL REPORT 231
  247. 01 About Us 02 Our Strategic Performance Prestasi Strategik Kami 03 2018 Events Aktiviti 2018 04 How We Are Governed Bagaimana Kami Ditadbir Urus 05 2018 Financial Statement Penyata Kewangan 2018 06 Additional Information Maklumat Tambahan 5 ,152 11,732 - (128) - 11,604 - 3,487 3,539 - (52) - 3,487 At 31 December 2018 Net book value At 31 December 2018 Cost At 1 January 2017 Additions Disposal Write off At 31 December 2017 4,852 - 3,487 At 31 December 2017 Net book value At 31 December 2017 6,752 4,605 304 (57) - - - - - Accumulated depreciation At 1 January 2017 Charge for the year Disposal Write off 6,452 4,852 300 - - - - Accumulated depreciation At 1 January 2018 Charge for the year Write off 11,604 3,487 At 31 December 2018 Freehold building RM’000 11,604 - - Freehold land RM’000 3,487 - - Mengenai Kami Cost At 1 January 2018 Additions Write off 5,946 2,088 2,013 75 - - 8,034 8,034 - - - 5,871 2,163 2,088 75 - 8,034 8,034 - - Leasehold land RM’000 57,433 29,710 27,755 2,145 (190) - 87,143 87,830 - (687) - 55,184 31,849 29,710 2,139 - 87,033 87,143 - (110) Leasehold buildings RM’000 AGROBANK 232 20. PROPERTY, PLANT AND EQUIPMENT 2,553 8,146 6,733 2,998 (1,585) - 10,699 10,820 1,464 (1,585) - 2,447 8,799 8,146 790 (137) 11,246 10,699 684 (137) Motor vehicles RM’000 32,386 116,600 114,163 10,781 - (8,344) 148,986 154,264 3,573 - (8,851) 38,880 124,772 116,600 9,382 (1,210) 163,652 148,986 15,996 (1,330) Furniture and fixtures RM’000 19,330 45,638 41,328 4,987 - (677) 64,968 63,750 1,974 - (756) 17,588 49,372 45,638 4,599 (865) 66,960 64,968 2,881 (889) Equipment and office machines RM’000 11,265 71,484 70,774 3,652 - (2,942) 82,749 79,998 5,697 - (2,946) 13,601 75,089 71,484 4,120 (515) 88,690 82,749 6,461 (520) Computer hardware RM’000 139,152 278,518 267,371 24,942 (1,832) (11,963) 417,670 419,967 12,708 (2,452) (12,553) 143,510 297,196 278,518 21,405 (2,727) 440,706 417,670 26,022 (2,986) Total RM’000 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018
  248. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 20 . PROPERTY, PLANT AND EQUIPMENT (cont’d) (i) The property, plant and equipment acquired from government grants - operating under the 9th Malaysian Plan (“RMK 9”) with net book value amounting to RM14,289,818 (2017: RM15,302,217) are as follows: (ii) Buildings RM’000 At 31 December 2018 Cost Accumulated depreciation 19,100 (5,036) Net book value 14,064 At 31 December 2017 Cost Accumulated depreciation 19,100 (4,768) Net book value 14,332 Motor vehicles RM’000 1,709 (1,709) - 1,709 (1,709) - Furniture Equipment and and office fixtures machines RM’000 RM’000 28,188 (28,124) 64 28,188 (27,579) 609 4,000 (3,838) 162 4,000 (3,639) 361 Computer hardware RM’000 23,975 (23,975) - 23,975 (23,975) - Total RM’000 76,972 (62,682) 14,290 76,972 (61,670) 15,302 The property, plant and equipment acquired from government grants - launching with net book value amounting to RM1,480,255 (2017: RM2,418,327) are as follows: At 31 December 2018 Cost Accumulated depreciation Net book value At 31 December 2017 Cost Accumulated depreciation Net book value Motor vehicles RM’000 Furniture Equipment and and office fixtures machines RM’000 RM’000 1,165 (891) 15,091 (13,953) 274 1,138 1,165 (797) 14,891 (13,056) 368 1,835 1,858 (1,790) 68 1,858 (1,643) 215 Computer hardware RM’000 1,548 (1,548) - 1,548 (1,548) - Total RM’000 19,662 (18,182) 1,480 19,462 (17,044) 2,418 LAPORAN TAHUNAN 2018 ANNUAL REPORT 233
  249. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 21 . INTANGIBLE ASSETS 234 AGROBANK Computer software RM’000 Cost At 1 January 2018 Additions Write off 135,652 15,264 (12) At 31 December 2018 150,904 Accumulated amortisation At 1 January 2018 Charge for the year Write off 116,304 12,934 (12) At 31 December 2018 129,226 Net book value At 31 December 2018 21,678 Cost At 1 January 2017 Additions Write off 123,429 12,563 (340) At 31 December 2017 135,652 Accumulated amortisation At 1 January 2017 Charge for the year Write off 102,812 13,516 (24) At 31 December 2017 116,304 Net book value At 31 December 2017 19,348 Included in the above is computer software acquired from the following government grants: (a) Government Grant - Launching Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Cost RM’000 Accumulated amortisation RM’000 Net book value RM’000 2018 2017 6,304 6,304 6,304 6,304 - Cost RM’000 Accumulated amortisation RM’000 Net book value RM’000 2018 2017 24,079 24,079 24,079 24,079 - Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information (b) Government Grant - Operating under the 9th Malaysian Plan (“RMK 9”)
  250. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 22 . DEFERRED TAX ASSETS 2018 RM’000 2017 RM’000 At 1 January Effect of adopting MFRS 9 13,994 (1,973) 41,187 - At 1 January, as restated Recognised in profit or loss Recognised in equity 12,021 4,848 (5,478) 41,187 (20,265) (6,928) At 31 December 11,391 13,994 Presented after appropriate offsetting as follows: Deferred tax assets Deferred tax liabilities 11,391 - 13,994 - 11,391 13,994 Deferred tax assets and liabilities are offset when there is a legally enforceable right to set-off current tax assets against current tax liabilities and when the deferred income taxes relates to the same fiscal authority. The components and movements of deferred tax assets and liabilities during the financial year prior to offsetting are as follows: Deferred tax liabilities: Property, plant, equipment and intangible assets RM’000 At 1 January 2018 Recognised in profit or loss (7,714) 2,900 At 31 December 2018 (4,814) At 1 January 2017 Recognised in profit or loss (8,637) 923 At 31 December 2017 (7,714) Deferred tax assets: Provisions RM’000 FVOCI deficit/ Investment revaluation deficit RM’000 Other temporary differences RM’000 Total RM’000 At 1 January 2018 Effect of adopting MFRS 9 12,975 - 8,733 (1,973) - - 21,708 (1,973) Restated as at 1 January 2018 Recognised in: - Profit or loss - Other comprehensive income 12,975 6,760 - 19,735 1,076 - - (5,478) 872 - At 31 December 2018 14,051 1,282 872 16,205 At 1 January 2017 Recognised in: - Profit or loss - Other comprehensive income 34,165 15,659 - 49,824 (21,190) - - (6,926) - - (21,190) (6,926) At 31 December 2017 12,975 8,733 - 21,708 1,948 (5,478) LAPORAN TAHUNAN 2018 ANNUAL REPORT 235
  251. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 23 . (a) DEPOSITS FROM CUSTOMERS 2018 RM’000 2017 RM’000 Tawarruq Fixed Return Islamic Account-i (FRIA-i) AgroPrima 4,180,606 91,634 4,358,306 11,313 4,272,240 4,369,619 Wadiah Yad Dhamanah Qard savings Agro Perdana-i Deposit Securities Basic Savings Accounts 1,612,639 1,523,870 206,058 5,516 1,618,073 1,423,099 174,849 3,737 3,348,083 3,219,758 7,620,323 7,589,377 2018 RM’000 2017 RM’000 2,810,079 1,355,793 75,911 30,457 3,351,703 859,639 97,955 60,322 4,272,240 4,369,619 2018 RM’000 2017 RM’000 2,225,948 3,043,420 1,521,045 790,577 39,333 1,761,755 2,937,702 1,820,446 1,043,581 25,893 7,620,323 7,589,377 2018 RM’000 2017 RM’000 2,990,170 2,180,070 2018 RM’000 2017 RM’000 2,990,170 2,180,070 Maturity structure for FRIA-i and AgroPrima are as follows: 236 AGROBANK Within six months Between six months to one year Between one year to three years Between three years to five years The deposits are sourced from the following type of customers: Government Individuals Domestic business enterprises Domestic other entities Domestic non-banking institutions 23. (b) DEPOSIT AND PLACEMENT OF BANKS AND OTHER FINANCIAL INSTITUTIONS Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Tawarruq Pelaburan Khas-i Maturity structure for Pelaburan Khas-i is as follows: Within six months
  252. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 23 . (b) DEPOSIT AND PLACEMENT OF BANKS AND OTHER FINANCIAL INSTITUTIONS (cont’d) The deposits are sourced from the following types of customers: Government Domestic business enterprises Domestic non-banking institutions 2018 RM’000 2017 RM’000 2,059,611 775,331 155,228 1,522,312 637,742 20,016 2,990,170 2,180,070 2018 RM’000 2017 RM’000 83,734 33,769 1,231 6,727 4,390 266 1,061 75,972 44,400 5,028 4,450 10,663 1,178 982 131,178 142,673 2018 RM’000 2017 RM’000 10,663 (6,273) - 41,787 (26,052) (5,072) 4,390 10,663 24. OTHER LIABILITIES Note (a) Other payables and accruals Accrued expenses Sundry creditors Donation/charity Zakat payable Provision for undistributed profit (i) Retirement benefits scheme (ii) Compensation claim (iii) (i) Provision for undistributed profit At 1 January Distribution Writeback to profit or loss At 31 December Provision for undistributed profit relates to the under accrual of profit payable on Mudharabah deposits in prior years. (ii) Retirement benefits scheme (a) The provision for retirement benefits scheme is as follows: At 1 January Current service cost1 Benefits paid At 31 December 2018 RM’000 2017 RM’000 1,178 (613) (299) 2,087 (244) (665) 266 1,178 Current service cost represents a decrease in the retirement benefit resulting from retirement and resignation of eligible employees. 1 LAPORAN TAHUNAN 2018 ANNUAL REPORT 237
  253. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 24 . OTHER LIABILITIES (cont’d) (a) Other payables and accruals (cont’d) (ii) Retirement benefits scheme (cont’d) (b) The principal assumptions used to determine the estimated costs and obligations are as follows: Turnover and early retirement rate Age brackets: 45 - 49 years 50 years and over Salaries increase rate (per annum) Average remaining years of service of employees Discount rate (c) 2018 2017 0.00% 0.06% 0.00% 8.6 years 3.95% 0.03% 0.14% 1.50% 6.5 years 3.82% Sensitivity analysis for discount rate risk A one percentage (1%) point decrease or increase in the assumed discount rate would have the following effects: 238 AGROBANK (i) Current service cost to increase by RM1,202 (2017: RM3,590) or decrease by RM1,095 (2017: RM3,346) respectively. (ii) Provision for a retirement benefit scheme to increase to RM288,746 (2017: RM1,206,192) or decrease to RM244,393 (2017: RM1,095,294) respectively. (iii) Compensation claim 2018 RM’000 At 1 January Addition/(Writeback) - net Payment made during the year 982 79 - At 31 December 1,061 2017 RM’000 60,814 (38,832) (21,000) 982 The writeback made in prior year was in relation to the legal suits disclosed in Note 12. (b) Paddy credit gratuity scheme 2018 RM’000 2017 RM’000 Mengenai Kami At beginning of the year Additions Payment 2,265 62 (52) 2,275 71 (81) Prestasi Strategik Kami At the end of year 2,275 2,265 01 About Us 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information The Bank has set up the scheme to manage gratuity to paddy credit scheme customers. The fund under this scheme is contributed through the withholding of an amount from the financing disbursed to the customers for payment of future benefits to the legal heir of the customers upon their demise.
  254. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 24 . OTHER LIABILITIES (cont’d) (c) Expected credit losses for financial guarantee and financing commitments Stage 1 12-month ECL RM’000 ECL Staging Stage 2 Lifetime ECL Not Credit- Impaired RM’000 Stage 3 Lifetime ECL CreditImpaired RM’000 Total RM’000 Balance as at 1 January 2018 Effect of adopting MFRS 9 - 5,865 - 185 - - 6,050 Restated as at 1 January 2018 5,865 185 - 6,050 (81) 9 - - - (1,539) 20 - (1,519) 1,679 (2,540) 54 10 - - 1,733 (2,530) (44) - (722) 133 - Transfer to Stage 1 Transfer to Stage 2 Allowance (written back)/made during the year New financing commitments and financial guarantees originated* Net remeasurement due to changes in credit risk Financing commitment and financial guarantees that have been derecognised Balance as at 31 December 2018 81 (9) (678) 4,398 4,531 * New financing commitments and financial guarantees originated include those which were not credit-impaired at origination but the credit risk has deteriorated. 25. FINANCING SCHEME FUNDS Summary of financing scheme funds is as follows: Fund for Food (“3F”) Oil Palm Replanting Scheme (“TASKS”) Micro Enterprise Fund Commercial Agriculture Fund (“DPK-GLC”) Agriculture Entrepreneur Financing Fund 1 (“DPUP 1”) Agriculture Entrepreneur Financing Fund 2 (“DPUP 2”) Agriculture Entrepreneur Financing Fund 3 (“DPUP 3”) Agriculture Entrepreneur Financing Fund 4 (“DPUP 4”) Agriculture Entrepreneur Financing Fund 5 (“DPUP 5”) Agriculture Entrepreneur Financing Fund 6 (“DPUP 6”) Special Relief Facility Fund for Small and Medium Size Industries (“TIKS”) Disaster Relief Facility Note 2018 RM’000 2017 RM’000 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) 192,399 8,000 42,517 195,200 1,038,752 120,283 114,129 20,764 28,677 50,000 5,051 4,811 4,725 174,770 9,000 38,721 186,525 999,277 115,891 109,742 19,993 27,617 8,073 154 - 1,825,308 1,689,763 LAPORAN TAHUNAN 2018 ANNUAL REPORT 239
  255. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 25 . FINANCING SCHEME FUNDS (a) Fund For Food (“3F”) Principal RM’000 Profit RM’000 Total RM’000 As at 1 January 2018 Additions Profit charged Payments 174,493 65,344 - (47,714) 277 - 423 (424) 174,770 65,344 423 (48,138) At 31 December 2018 192,123 276 192,399 As at 1 January 2017 Additions Profit charged Payments 208,786 15,544 - (49,837) 279 - 476 (478) 209,065 15,544 476 (50,315) At 31 December 2017 174,493 277 174,770 Under the 9th Malaysian Plan (“RMK 9”), the Government agreed to channel RM300 million every year for a tenure of 15 years (3 years grace period) at a profit rate of 0.25% per annum. The purpose of this fund is to enhance the food production industry and to reduce dependency on imports. Since 15 May 2014, new financing scheme funds channelled through the Ministry of Finance and Ministry of Agriculture was merged into DPUP 1. The balance of the above Fund for Food financing scheme is from BNM at a profit rate of 0.25% per annum. This fund has benefited 7,341 customers (2017: 7,247 customers) with accumulated disbursement amounting to RM1.41 billion (2017: RM1.35 billion). 240 AGROBANK (b) Oil Palm Replanting Scheme (“TASKS”) Principal RM’000 As at 1 January 2018 Payments 9,000 (1,000) At 31 December 2018 8,000 As at 1 January 2017 Payments 10,000 (1,000) At 31 December 2017 9,000 This fund is channelled through the Ministry of Plantation Industries and Commodities to finance the replanting of oil palm plantations. The financing tenure is 20 years (5 years grace period) without profit. This fund has benefited 199 customers (2017: 199 customers) with accumulated disbursement amounting to RM14.90 million (2017: RM14.90 million). Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information (c) Micro Enterprise Fund Principal RM’000 Profit RM’000 Total RM’000 As at 1 January 2018 Additions Profit charged Payments 38,501 12,977 - (9,154) 220 - 583 (610) 38,721 12,977 583 (9,764) At 31 December 2018 42,324 193 42,517
  256. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 25 . FINANCING SCHEME FUNDS (cont’d) (c) Micro Enterprise Fund (cont’d) Principal RM’000 Profit RM’000 Total RM’000 As at 1 January 2017 Additions Profit charged Payments 29,847 23,577 - (14,923) 251 - 478 (509) 30,098 23,577 478 (15,432) At 31 December 2017 38,501 220 38,721 The fund amounting to RM200.0 million was launched by BNM to increase the access for micro financing on selected eligible micro entrepreneurs. The profit rate of this fund is 1.5% per annum for a tenure of 5 years. This fund has benefited 8,183 customers (2017: 7,545 customers) with accumulated disbursement amounting to RM181.54 million (2017: RM168.71 million). (d) Commercial Agriculture Fund (‘’DPK-GLC’’) Principal RM’000 Profit RM’000 Total RM’000 As at 1 January 2018 Profit charged 181,394 7,925 5,131 750 186,525 8,675 At 31 December 2018 189,319 5,881 195,200 As at 1 January 2017 Profit charged 173,846 7,548 4,381 750 178,227 8,298 At 31 December 2017 181,394 5,131 186,525 The fund amounting RM300.0 million was channelled by the Government on 27 May 2014 with a bullet payment tenure of 15 years at a profit rate of 0.25% per annum. The fund was fair valued at inception using market profit rate. The difference between the proceeds received and the fair value of the financing was recognised as a government grant as disclosed in Note 28(j). The purpose of this fund is to finance the commercial agro-based industry. This fund has benefited 12 customers (2017: 9 customers) with accumulated disbursement amounting to RM78.5 million (2017: RM64.2 million). (e) Agriculture Entrepreneur Financing Fund 1 (“DPUP 1”) As at 1 January 2018 Profit charged Payments At 31 December 2018 Principal RM’000 982,700 39,475 - 1,022,175 Profit RM’000 16,577 6,416 (6,416) 16,577 Total RM’000 999,277 45,891 (6,416) 1,038,752 As at 1 January 2017 Profit charged Payments 945,032 37,668 - 16,577 6,416 (6,416) 925,519 44,084 (6,416) At 31 December 2017 982,700 16,577 999,277 The financing scheme funds which were previously channelled by the Government through the Ministry of Finance and Ministry of Agriculture was merged into this scheme from 15 May 2014 onwards. The purpose of this fund is to enhance the food production industry and agriculture related activities. The financing tenure is 15 years (5 years grace period) at a profit rate of 0.5% per annum. The fund was fair valued at inception using market profit rate. The difference between the proceeds received and the fair value of the financing was recognised as a government grant disclosed in Note 28(k). This fund has benefited 84,818 customers (2017: 84,611 customers) with accumulated disbursement amounting to RM3.37 billion (2017: RM3.17 billion). LAPORAN TAHUNAN 2018 ANNUAL REPORT 241
  257. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 25 . FINANCING SCHEME FUNDS (cont’d) (f) Agriculture Entrepreneur Financing Fund 2 (“DPUP 2”) Principal RM’000 Profit RM’000 As at 1 January 2018 Profit charged Payments 115,807 4,392 - 84 750 (750) At 31 December 2018 120,199 84 As at 1 January 2017 Profit charged Payments 111,592 4,215 - 84 750 (750) At 31 December 2017 115,807 84 Total RM’000 115,891 5,142 (750) 120,283 111,676 4,965 (750) 115,891 The fund amounting RM150.0 million was received from the Government on 23 December 2014. The tenure of this financing is 15 years (5 years grace period) at a profit rate of 0.5% per annum. The fund was fair valued at inception using market profit rate. The difference between the proceeds received and the fair value of the financing was recognised as a government grant as disclosed in Note 28(l). The purpose of this fund is to stimulate growth of farming activities involving upstream and downstream activities. This fund has benefited 4,945 customers (2017: 4,848 customers) with accumulated disbursement amounting to RM148.19 million (2017: RM119.28 million). (g) Agriculture Entrepreneur Financing Fund 3 (“DPUP 3”) 242 AGROBANK Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Principal RM’000 As at 1 January 2018 Profit charged Payments 109,742 4,387 - At 31 December 2018 114,129 As at 1 January 2017 Fund received Profit charged 105,331 4,411 - At 31 December 2017 109,742 Profit RM’000 - 750 (750) - - 750 (750) - Total RM’000 109,742 5,137 (750) 114,129 105,331 5,161 (750) 109,742 The fund amounting RM150.0 million was received from the Government on 28 October 2015. The tenure of this financing is 15 years (5 years grace period) at a profit rate of 0.5% per annum. The fund was fair valued at inception using market profit rate. The difference between the proceeds received and the fair value of the financing was recognised as a government grant as disclosed in Note 28(m). The purpose of this fund is to stimulate growth of farming activities involving upstream and downstream activities. This fund has benefited 4,117 customers (2017: 4,062 customers) with accumulated disbursement amounting to RM141.58 million (2017: RM126.94 million). (h) Agriculture Entrepreneur Financing Fund 4 (“DPUP 4”) Principal RM’000 As at 1 January 2018 Profit charged Payments 19,993 771 - At 31 December 2018 20,764 Profit RM’000 - 175 (175) - Total RM’000 19,993 946 (175) 20,764
  258. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 25 . FINANCING SCHEME FUNDS (cont’d) (h) Agriculture Entrepreneur Financing Fund 4 (“DPUP 4”) Principal RM’000 As at 1 January 2017 Fund received Profit charged Payments - 19,265 728 - At 31 December 2017 19,993 Profit RM’000 - - 173 (173) - Total RM’000 19,265 901 (173) 19,993 The fund amounting RM35.0 million was received from the Government on 5 January 2017. The tenure of this financing is 20 years (10 years grace period) at a profit rate of 0.5% per annum. The fund was fair valued at inception using market profit rate. The difference between the proceeds received and the fair value of the financing was recognised as a government grant as disclosed in Note 28(n). The purpose of this fund is to stimulate growth of farming activities involving upstream and downstream activities. This fund has benefited 43 customers (2017: 28 customers) with accumulated disbursement amounting to RM25.36 million (2017: RM17.07 million). (i) Agriculture Entrepreneur Financing Fund 5 (“DPUP 5”) Principal RM’000 As at 1 January 2018 Profit charged Payments 27,617 1,060 - At 31 December 2018 28,677 As at 1 January 2017 Fund received Profit charged Payments - 27,479 138 - At 31 December 2017 27,617 Profit RM’000 - 250 (250) - - - 32 (32) - Total RM’000 27,617 1,310 (250) 28,677 27,479 170 (32) 27,617 The fund amounting RM50.0 million was received from the Government on 14 November 2017. The tenure of this financing is 20 years (10 years grace period) at a profit rate of 0.5% per annum. The fund was fair valued at inception using market profit rate. The difference between the proceeds received and the fair value of the financing was recognised as a government grant as disclosed in Note 28(o). The purpose of this fund is to stimulate growth of farming activities involving upstream and downstream activities. This fund has benefited 70 customers (2017: 5 customers) with accumulated disbursement amounting to RM32.02 million (2017: RM3.63 million). (j) Agriculture Entrepreneur Financing Fund 6 (“DPUP 6”) Principal RM’000 Profit RM’000 Total RM’000 As at 1 January 2018 Fund received - 50,000 - - 50,000 At 31 December 2018 50,000 - 50,000 The fund amounting RM50.0 million was received from the Government on 12 December 2018. The tenure of this financing is 10 years (1 year grace period) at a profit rate of 4.0% per annum. The purpose of this fund is to stimulate growth of farming activities involving upstream and downstream activities. LAPORAN TAHUNAN 2018 ANNUAL REPORT 243
  259. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 25 . FINANCING SCHEME FUNDS (cont’d) (k) Special Relief Facility Principal RM’000 Profit RM’000 Total RM’000 As at 1 January 2018 Fund received Profit charged Payments 7,361 41 - (3,274) 712 - 211 - 8,073 41 211 (3,274) At 31 December 2018 4,128 923 5,051 As at 1 January 2017 Profit charged Payments 10,192 - (2,831) 403 309 - 10,595 309 (2,831) At 31 December 2017 7,361 712 8,073 The fund is channelled from BNM without profit to minimise loss borne by farmers affected by the flood catastrophe in December 2014. Financing is offered to farmers up to 5 years with 6 months moratorium at a profit rate of 2.25% per annum. The fund was fair valued at inception using market profit rate. The difference between the proceeds received and the fair value of the financing was recognised as a government grant as disclosed in Note 28(p). This fund has benefited 288 customers (2017: 288 customers) with accumulated disbursement amounting to RM13.39 million (2017: RM13.39 million). 244 (l) AGROBANK Fund for Small and Medium Size Industries (“TIKS”) Principal RM’000 Profit RM’000 Total RM’000 As at 1 January 2018 Fund received Profit charged Payments 154 4,658 - - - - 15 (16) 154 4,658 15 (16) At 31 December 2018 4,812 (1) 4,811 As at 1 January 2017 Fund received - 154 - - 154 At 31 December 2017 154 - 154 The fund is channelled by BNM to increase access to micro financing for selected eligible small and medium agro-based entrepreneurs. The tenure of this financing is 5 years at a profit rate of 1.5% per annum. This fund has benefited 8 customers (2017: 2 customers) with accumulated disbursement amounting to RM4.98 million (2017: RM0.15 million). Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan (m) Disaster Relief Facility Principal RM’000 Profit RM’000 Total RM’000 As at 1 January 2018 Fund received Profit charged - 4,710 - - - 15 4,710 15 At 31 December 2018 4,710 15 4,725 06 Additional Information The fund is channelled from BNM without profit to minimise loss borne by farmers affected by the flood catastrophe in December 2017. Financing is offered to farmers up to 5 years with 6 months moratorium at a profit rate of 2.25% per annum. The fund was fair valued at inception using market profit rate. The difference between the proceeds received and the fair value of the financing is recognised as a government grant as disclosed in Note 28(q). This fund has benefited 23 customers with accumulated disbursement amounting to RM5.13 million.
  260. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 26 . GOVERNMENT GRANT - OPERATING Capital Expenditure RM’000 Development Expenditure RM’000 Total RM’000 As at 1 January 2018 Amortisation during the year 24,428 (1,195) 77 - 24,505 (1,195) At 31 December 2018 23,233 77 23,310 As at 1 January 2017 Amortisation during the year 25,967 (1,539) 77 - 26,044 (1,539) At 31 December 2017 24,428 77 24,505 Since 2006, the Bank has received operating grant amounting to RM82.0 million from the Ministry of Finance (Incorporated). The purpose of the grant is for capital expenditure to finance the acquisition of property, plant and equipment as well as development expenditure to finance training courses provided to entrepreneurs. The property, plant and equipment acquired under this grant is disclosed in Note 20(i). 27. GOVERNMENT GRANT - LAUNCHING Capital Expenditure RM’000 Development Expenditure RM’000 Total RM’000 As at 1 January 2018 Utilisation during the year Transfer (to)/from Amortisation during the year 2,433 - 200 (1,155) 1,711 (69) (200) - 4,144 (69) (1,155) At 31 December 2018 1,478 1,442 2,920 As at 1 January 2017 Utilisation during the year Transfer (to)/from Amortisation during the year 3,642 - (587) (622) 2,404 (1,280) 587 - 6,046 (1,280) (622) At 31 December 2017 2,433 1,711 4,144 In 2007, the Ministry of Finance (Incorporated) approved an allocation of RM100.0 million to the Bank for the purpose of the Bank’s corporatisation. The grant is to be used for branding, product development and office expansion. The property, plant and equipment acquired under this grant is disclosed in Note 20(ii). LAPORAN TAHUNAN 2018 ANNUAL REPORT 245
  261. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 28 . GOVERNMENT GRANTS - FUNDS Summary of government grant funds is as follows: Note 2018 RM’000 2017 RM’000 Entrepreneur Scheme for Graduates Special Fund For Terengganu Fishery Development Programme for Hard-core Poor Fund for Ministry of Youth and Sports Bumiputera Commercial and Industrial Community Scheme HUB National Key Economic Area Micro Economic Stimulation Package Micro ESP Flood Relief Agriculture Mechanism and Automation Scheme Commercial Agriculture Fund Agriculture Entrepreneur Financing Fund 1 Agriculture Entrepreneur Financing Fund 2 Agriculture Entrepreneur Financing Fund 3 Agriculture Entrepreneur Financing Fund 4 Agriculture Entrepreneur Financing Fund 5 Special Relief Facility Disaster Relief Facility (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) (o) (p) (q) 1,137 37 2,494 8,745 35,325 54,036 158,493 2,869 5,792 107,500 244,356 29,717 35,872 14,236 21,323 125 404 1,135 33 2,497 8,579 35,673 54,244 156,482 2,891 5,792 115,425 283,831 34,109 40,259 15,007 22,383 336 - 722,461 778,676 2018 RM’000 2017 RM’000 246 (a) Entrepreneur Scheme for Graduates (“SUTKS”) AGROBANK At beginning of the year Transfer from/(to) ECL/collective impairment allowance (Note 17 (ix)) 1,135 2 1,154 (19) At end of the year 1,137 1,135 The objective of this programme is to reduce the unemployment rate among graduates by creating career opportunities in the agricultural sector. Financing is offered under Al – Bai’ Bithaman Ajil which imposes a profit rate of 3% per annum. The grant has benefited 203 graduates (2017: 203 graduates) with accumulated disbursement amounting to RM8.35 million (2017: RM8.35 million). (b) Special Fund for Terengganu Fishery (“DKSP”) Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information 2018 RM’000 2017 RM’000 At beginning of the year Transfer from ECL/collective impairment allowance (Note 17 (ix)) 33 4 33 - At end of the year 37 33 The objective of this fund is to raise the socioeconomic status of fishermen, fish breeders and aquaculture entrepreneurs. The financing is offered under Al – Bai’ Bithaman Ajil up to 100% of the total project cost at a profit free-rate. The financing terms would depend on the project with payment terms not exceeding 10 years. The grant has benefited 877 customers (2017: 877 customers) with accumulated disbursement amounting to RM29.90 million (2017: RM29.90 million).
  262. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 28 . GOVERNMENT GRANTS - FUNDS (cont’d) (c) Development Programme for Hard-core Poor (“PPRT”) 2018 RM’000 2017 RM’000 At beginning of the year Transfer to ECL/collective impairment allowance (Note 17 (ix)) 2,497 (3) 2,560 (63) At end of the year 2,494 2,497 This program represents profit-free financing from the Government to the hard-core poor. The grant has benefited 92 customers (2017: 90 customers) with accumulated disbursement amounting to RM0.66 million (2017: RM0.64 million). (d) Fund for Ministry of Youth and Sports (“DKBS”) 2018 RM’000 2017 RM’000 At beginning of the year Transfer from ECL/collective impairment allowance (Note 17 (ix)) 8,579 166 8,143 436 At end of the year 8,745 8,579 The purpose of this fund is to encourage youth involvement in the agricultural industry under Skim Belia Tani. The grant has benefited 524 customers (2017: 524 customers) with accumulated disbursement amounting to RM15.73 million (2017: RM15.73 million). (e) Bumiputera Commercial and Industrial Community Scheme HUB (“MPPB HUB”) 2018 RM’000 2017 RM’000 At beginning of the year Transfer to ECL/collective impairment allowance (Note 17 (ix)) 35,673 (348) 36,132 (459) At end of the year 35,325 35,673 The objective of this fund is to finance Bumiputera agricultural ventures with maximum financing available up to RM200,000 per financing. The grant has benefited 512 customers (2017: 510 customers) with accumulated disbursement amounting to RM41.67 million (2017: RM41.48 million). (f) National Key Economic Area (“NKEA”) 2018 RM’000 2017 RM’000 At beginning of the year Transfer to ECL/collective impairment allowance (Note 17 (ix)) 54,244 (208) 54,304 (60) At end of the year 54,036 54,244 The purpose of this fund is to encourage entrepreneur participation in agro based industries by providing a maximum of RM300,000 per financing. The grant has benefited 997 customers (2017: 997 customers) with accumulated disbursement amounting to RM124.18 million (2017: RM124.18 million). LAPORAN TAHUNAN 2018 ANNUAL REPORT 247
  263. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 28 . GOVERNMENT GRANTS - FUNDS (cont’d) (g) Micro Economic Stimulation Package (“Micro - ESPi”) 2018 RM’000 2017 RM’000 At beginning of the year Transfer from ECL/collective impairment allowance (Note 17 (ix)) 156,482 2,011 153,768 2,714 At end of the year 158,493 156,482 The purpose of this fund is to encourage entrepreneur participation in agricultural production activities by providing a maximum of RM20,000 per financing. The grant has benefited 17,286 customers (2017: 17,286 customers) with accumulated disbursement amounting to RM334.73 million (2017: RM334.73 million). (h) Micro ESP Flood Relief 2018 RM’000 2017 RM’000 At beginning of the year Transfer to ECL/collective impairment allowance (Note 17 (ix)) 2,891 (22) 3,000 (109) At end of the year 2,869 2,891 The objective of this program is to minimise loss of income borne of farmers affected by flood catastrophe in December 2014. Financing is offered up to 5 years with 6 months moratorium at a profit rate of 3.75% per annum. 248 AGROBANK (i) Agriculture Mechanism and Automation Scheme (“MAP”) RM’000 5,792 At 31 December 2017 and 31 December 2018 The objective of this program is to encourage automation and usage of high technology in agriculture sector. Financing is offered up to 9 years at a profit rate of 3.75% per annum. (j) Commercial Agriculture Fund (‘’DPK-GLC’’) Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed 2018 RM’000 2017 RM’000 At beginning of the year Amortisation (Note 11) 115,425 (7,925) 122,973 (7,548) At end of the year 107,500 115,425 The benefit of this below market rate financing scheme fund amounting to RM300.0 million, channelled by the Government on 27 May 2014 at a profit rate of 0.25% per annum, is recognised as a Government Grant as disclosed in Note 25(d). (k) Agriculture Entrepreneur Financing Fund 1 (“DPUP 1”) 2018 RM’000 2017 RM’000 Penyata Kewangan 2018 At beginning of the year Amortisation (Note 11) 283,831 (39,475) 321,499 (37,668) Maklumat Tambahan At end of the year 244,356 283,831 05 2018 Financial Statement 06 Additional Information The financing scheme funds which were channelled by the Government through the Ministry of Finance and Ministry of Agriculture and Agro-based Industries was merged into this scheme. The benefit of this below market rate financing scheme fund at a profit rate of 0.5% per annum, is recognised as a Government Grant as disclosed in Note 25(e).
  264. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 28 . GOVERNMENT GRANTS - FUNDS (cont’d) (l) Agriculture Entrepreneur Financing Fund 2 (“DPUP 2”) 2018 RM’000 2017 RM’000 At beginning of the year Amortisation (Note 11) 34,109 (4,392) 38,324 (4,215) At end of the year 29,717 34,109 The benefit of this below market rate financing scheme fund amounting to RM150.0 million, received from the Government on 23 December 2014 at a profit rate of 0.5% per annum, is recognised as a Government Grant as disclosed in Note 25(f). (m) Agriculture Entrepreneur Financing Fund 3 (“DPUP 3”) 2018 RM’000 2017 RM’000 At beginning of the year Amortisation (Note 11) 40,259 (4,387) 44,670 (4,411) At end of the year 35,872 40,259 The benefit of this below market rate financing scheme fund amounting to RM150.0 million, received from the Government on 28 October 2015 at a profit rate of 0.5% per annum, is recognised as a Government Grant as disclosed in Note 25(g). (n) Agriculture Entrepreneur Financing Fund 4 (“DPUP 4”) 2018 RM’000 2017 RM’000 At beginning of the year Funds received Amortisation (Note 11) 15,007 - (771) 15,735 (728) At end of the year 14,236 15,007 The benefit of this below market rate financing scheme fund amounting to RM35.0 million, received from the Government on 5 January 2017 at a profit rate of 0.5% per annum, is recognised as a Government Grant as disclosed in Note 25(h). (o) Agriculture Entrepreneur Financing Fund 5 (“DPUP 5”) 2018 RM’000 2017 RM’000 At beginning of the year Funds received Amortisation (Note 11) 22,383 - (1,060) 22,521 (138) At end of the year 21,323 22,383 The benefit of this below market rate financing scheme fund amounting to RM50.0 million, received from the Government on 14 November 2017 at a profit rate of 0.5% per annum, is recognised as a Government Grant as disclosed in Note 25(i). LAPORAN TAHUNAN 2018 ANNUAL REPORT 249
  265. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 28 . GOVERNMENT GRANTS - FUNDS (cont’d) (p) Special Relief Facility 2018 RM’000 2017 RM’000 At beginning of the year Amortisation (Note 11) 336 (211) 645 (309) At end of the year 125 336 The benefit of this below market rate financing scheme fund amounting to RM12.87 million, received from the BNM in 2015, is recognised as a Government Grant as disclosed in Note 25(k). (q) Disaster Relief Facility 2018 RM’000 2017 RM’000 Funds received Amortisation (Note 11) 419 (15) - At end of the year 404 - The benefit of this below market rate financing scheme fund amounting to RM5.13 million, received from the BNM in 2018, is recognised as a Government Grant as disclosed in Note 25(m). 250 29. SHARE CAPITAL AGROBANK 2018 RM’000 2017 RM’000 1,000,000 1,000,000 Note 2018 RM’000 2017 RM’000 (a) (b) (c) (d) 487,109 - (4,056) 34,951 487,109 (27,303) - Issued and fully paid 30. RESERVES Non-distributable reserve: Statutory reserves Investment revaluation deficit FVOCI deficit Regulatory reserve Distributable reserve: Retained earnings Mengenai Kami Prestasi Strategik Kami (a) Statutory reserves 01 About Us 02 Our Strategic Performance Aktiviti 2018 Bagaimana Kami Ditadbir Urus Penyata Kewangan 2018 1,922,385 1,796,918 (b) Investment revaluation deficit 05 2018 Financial Statement The investment revaluation deficit was in respect of unrealised fair value loss on financial investments - AFS. Maklumat Tambahan 06 Additional Information 1,337,112 Transfer of profit to reserve fund is only applicable when Risk Weighted Capital Ratio (“RWCR”) of the Bank is below the threshold of 16% as approved by BNM via a letter to the Bank dated 22 February 2008. 03 2018 Events 04 How We Are Governed 1,404,381 (c) FVOCI deficit The FVOCI deficit is in respect of unrealised fair value loss on financial assets at FVOCI. (d) Regulatory reserve Regulatory reserve is maintained in addition to the expected credit loss allowance that has been assessed and recognised in accordance with MFRS, as required by BNM.
  266. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 31 . DIVIDENDS Final dividend of 2.55 sen net of tax, on 1,000,000,000 ordinary shares in respect of the financial year ended 31 December 2017 Final dividend of 2.00 sen net of tax, on 1,000,000,000 ordinary shares in respect of the financial year ended 31 December 2016 2018 RM’000 2017 RM’000 25,500 - - 20,000 25,500 20,000 At the forthcoming Annual General Meeting, a final single tier dividend in respect of the current financial year ended 31 December 2018 of 2.00 sen on 1,000,000,000 ordinary shares of RM1.00 each, amounting to dividend payable of RM20,000,000 will be proposed for shareholder’s approval. The financial statements for the current financial year do not reflect this proposed dividend. Such dividend, if approved by the shareholder, will be accounted for in equity as an appropriation of retained earnings in the financial year ending 31 December 2019. 32. COMMITMENTS AND CONTINGENCIES Credit related exposures Transaction related contingencies Trade related contingencies Financing commitments Capital commitment Approved and contracted for: Capital expenditure Contingent liabilities Certain legal actions taken against the Bank with compensation claims Total commitments and contingencies 2018 RM’000 2017 RM’000 Restated 42,781 10,927 959,740 38,462 55,618 937,138 1,013,448 1,031,218 3,306 1,741 42,729 5,679,131 1,059,483 6,712,090 A summary of the status of material litigations against the Bank is as follows: Case 1 The Bank filed a claim against a customer on 13 August 2015 to recover outstanding financing provided to the customer of approximately RM22.0 million. The customer then filed a counterclaim for approximately RM18.3 million alleging inadequate assistance from certain government agencies which affected its operations. However, the customer has not provided any evidence to support the claim. The case was fixed for full trial on several dates i.e. 22 and 23 November 2017, 23 until 26 January 2018, 21 until 23 February 2018, 13, 16 until 18 and 23 April 2018, 26 and 27 July 2018, 15 until 17 August 2018, 3 until 5 September 2018, 12 and 13 February 2019, 2 until 4 March 2019, 9 until 11 April 2019, and 16 until 18 April 2019. The Bank’s solicitors are of the view that the Bank has a good chance of succeeding in its claim and has a fair chance of successfully defending the counter claim by the customer. LAPORAN TAHUNAN 2018 ANNUAL REPORT 251
  267. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 32 . COMMITMENTS AND CONTINGENCIES (cont’d) A summary of the status of material litigations against the Bank is as follows: Case 2 The Bank filed a claim against a customer on 2 September 2015 to recover outstanding financing of approximately RM12.0 million. The customer filed a counterclaim against the Bank on 23 November 2015 for approximately RM5.6 billion relating to loss of profits. However, the customer has not provided any evidence to support the claim. The Bank had on 4 April 2016 obtained a Summary Judgement against the customer and its guarantors with costs of RM5,000.00. On 29 March 2017, the Court had dismissed the customer’s claim upon a full trial. The customer and its guarantors had filed an appeal at the Court of Appeal on 19 April 2017. On 25 September 2017 the customer had been made to wind up by the Court and the Bank had also initiated bankruptcy proceedings against the guarantors. There were series of case managements in relation to the customer’s appeal due to among others, lack of capacity to proceed with the appeal since the customer has been wound up, the court had adjourned the hearing to 10 January 2019. On 10 January 2019, the Court of Appeal had dismissed the customer’s appeal with costs of RM5,000.00. The customer did not file motion for leave to appeal within the stipulated time period, therefore the case is considered to be closed. Case 3 A customer had initiated a legal action against the Bank to nullify the charge created or registered by the Bank as a security for a financing facility amounting to RM48,000,000.00 granted to the customer. The customer had alleged that the charge is defective, null and void on the basis that the charge was registered on 3 October 2011 after the termination of the financing facility by the Bank on 25 April 2011. This case was fixed for case management on 13 July 2018 and hearing of the customer’s claim is fixed on 13 March 2019. In the meantime, the customer had filed an injunction application i.e to restrain the Bank from proceeding with foreclosure matter. 252 AGROBANK The said application was fixed for decision and clarification and also case management on 29 November 2018, whereby the court had dismissed the customer’s injunction application with costs of RM5,000.00 to be paid to the Bank. The customer appealed against the decision on 7 December 2018. The customer had also filed for a motion of stay of proceeding at the Court of Appeal on 4 December 2018 whereby the hearing of this application is fixed on 28 March 2019. The court has dismissed the customers’ claim, injunction application and motion of stay of proceeding. The customer has up to 12 April 2019 to file for an appeal against the decision by the court. The Bank’s solicitors are of the view that the Bank has a fair chance in successfully defending the case. The banking facilities granted in all the cases mentioned above, which are treated as off balance sheet, were disbursed from a fund managed by the Bank for which the Bank earned management fees. All risks including credit risk on unpaid financing are not to be borne by the Bank. 33. RELATED PARTY DISCLOSURES (a) Parent entity Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information The Bank is a Government Linked Corporation, with all shares held by the Minister of Finance (Incorporated) on behalf of the Government of Malaysia. All entities controlled by the Government of Malaysia meet the definition of related parties of the Bank. (b) Key management personnel compensation 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. The key management personnel of the Bank includes Executive Director and Non-Executive Directors and certain members of senior management of the Bank. Remuneration paid to key management personnel of the Bank includes the following : i) ii) iii) Salaries and bonuses. Allowances paid to the Directors. Other emoluments include Employee Provident Fund (‘’EPF’’) contributions, retirement compensation and benefit in kind.
  268. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 33 . RELATED PARTY DISCLOSURES (cont’d) (b) Key management personnel compensation (cont’d) Remuneration of directors and other members of key management are as follows: Salaries and Bonuses RM’000 Allowances RM’000 Other Emoluments RM’000 Total RM’000 Executive Director Tuan Syed Alwi Bin Mohamed Sultan (from 2 April 2018 to 6 September 2018) 273 - 47 320 273 - 47 320 - 342 - 342 - - - - - - - - - 280 276 41 140 276 290 237 185 25 - - 2 - - 5 5 - - 280 276 43 140 276 295 242 185 25 - 2,092 12 2,104 Senior Management 4,003 - 1,281 5,284 4,276 2,092 1,340 7,708 Executive Director YH. Dato’ Wan Mohd Fadzmi bin Che Wan Othman Fadzilah 727 - 251 978 727 - 251 978 - 366 - 366 - - - - - - - - 309 281 83 105 299 200 156 132 4 - - 5 5 - - 10 313 281 83 110 304 200 156 142 - 1,931 24 1,955 Senior Management 3,427 - 1,385 4,812 4,154 1,931 1,660 7,745 2018 Non Executive Directors Y. Bhg Tan Sri Mohamad Zabidi bin Zainal Y. Bhg Dato’ Dr. Mohamad Hashim bin Ahmad Tajudin Y. Bhg Datin Setia Shahariah binti Hashim Y. Bhg Datuk Seri Dr. Ismail bin Haji Bakar Y. Bhg Dato’ Dr. Yusof bin Ismail Puan Azizah binti Abdul Rahman Encik Ibrahim bin Hassan Puan Faizah binti Abdullah Encik Abdul Rahim bin Abd Hadi Encik Jit Singh A/L Santok Singh 2017 Non Executive Directors Y. Bhg Tan Sri Mohamad Zabidi bin Zainal Y. Bhg Dato’ Dr. Mohamad Hashim bin Ahmad Tajudin Y. Bhg Datin Setia Shahariah binti Hashim Y. Bhg Datuk Seri Dr. Ismail bin Haji Bakar Y. Bhg Dato’ Dr. Yusof bin Ismail Puan Azizah binti Abdul Rahman Encik Ibrahim bin Hassan Puan Faizah binti Abdullah Encik Ng Chih Kaye LAPORAN TAHUNAN 2018 ANNUAL REPORT 253
  269. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 33 . RELATED PARTY DISCLOSURES (cont’d) (c) Transactions with key management personnel The following table provides the total amount of transactions, which have been entered into with key management personnel for the relevant financial year. Deposits 2018 RM’000 2017 RM’000 448 156 2018 RM’000 2017 RM’000 - 10,671 3,579 30,099 10,812 3,731 14,507 15,133 5,795 5,510 10,338 10,134 28,646 2,417 26,569 2,360 No financing has been granted to the directors and senior management of the Bank. (d) Transactions with related parties Note Income Reimbursement of gapping cost (i) GLC service fees (ii) Commission (iii) Profit income on deposits placed with government linked companies 254 AGROBANK Expense Profit expense on deposits placed by government linked entities Profit expense on financing scheme funds paid and payable to the Ministry of Finance and BNM Contributions to: Employee Provident Fund (‘’EPF’’) Social Security Organisation (‘’SOCSO’’) Description for income with related parties are as follows: (i) Income from Ministry of Finance for the profit differential between market rate and subsidised rate on financing disbursed by the Bank at subsidised rate, as disclosed in Note 6(b). (ii) Fees earned for managing the government funds for financing disbursement paid by Ministry of Finance, as disclosed in Note 6(b). (iii) Commission earned as bills collection agent from Government of Malaysia controlled entities. (e) Outstanding balances arising from transactions with related parties Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance (i) Bagaimana Kami Ditadbir Urus Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Financing to related parties Short term deposits/placements with related parties Aktiviti 2018 03 2018 Events 04 How We Are Governed Included in Assets (ii) 2018 RM’000 2017 RM’000 8,750 341,054 10,761 485,190 2018 RM’000 2017 RM’000 23,310 2,920 722,461 1,825,308 4,285,559 24,505 4,144 778,676 1,689,763 3,284,067 Included in Liabilities Government Grant - Operating Government Grant - Launching Government Grant - Funds Financing scheme funds Deposits from related entities
  270. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 33 . RELATED PARTY DISCLOSURES (cont’d) (f) Terms and conditions Transactions with related parties were made on terms equivalent to those that prevailed in negotiated transactions. 34. FINANCING FACILITIES WITH CONNECTED PARTIES Outstanding exposures with connected parties % of outstanding exposures to connected parties as a proportion of total exposure % of outstanding financing exposures with connected parties which is non-performing or in default 2018 RM’000 2017 RM’000 1,770,807 11.08% 1,059,203 7.59% 0.00% 0.02% The above disclosure on Financing Facilities with Connected Parties is presented in accordance with paragraph 14.1 as per BNM’s policy on Financing Facilities with Connected Parties. 35. FINANCIAL INSTRUMENTS A. FINANCIAL RISK MANAGEMENT (a) General risk management (i) Introduction and overview The Bank embraces risk management as an integral component of its business, operations and decision making process to ensure that optimum returns are generated with high regard to uncertainties in the business and market environment. The Bank’s business activities and operations involve the use of financial instruments that expose the Bank to a variety of financial and business risks as follows; • Credit risk • Liquidity risk • Market risk • Operational risk • Shariah risk (ii) Risk management framework The Board of Directors (“The Board”) is ultimately responsible for the establishment and oversight of the Bank’s risk management associated with the Bank’s operations and activities. The Bank has the Broad Risk Management Framework (“BRMF”) that encompasses credit, market, liquidity, operational and Shariah risks as part of its risk governance. The Bank’s risk management policies are established to identify and analyse the risks exposed to the Bank, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Bank’s current strategies, products and services. The Bank’s risk management policies are established to identify and mitigate all risks faced by the Bank, to set appropriate risk appetite and risk limits as well as to control and monitor risk exposures and adherence to the approved limits. (iii) Risk governance framework The Board may empower the following committees for the oversight function of risk management matters and activities; • Board Risk Management Committee (“BRMC”) • Board Credit and Investment Committee (“BCIVC”) • Board Audit Committee (“BAC”) LAPORAN TAHUNAN 2018 ANNUAL REPORT 255
  271. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 35 . FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (a) General risk management (cont’d) (iii) Risk governance framework (cont’d) At senior management level the following committees had been established to oversight risk management activities and risk exposures. • Management Risk Committee (“MRC”) • Asset Liability Committee (“ALCO”) • Management Audit Committee (“MAC”) (b) Credit risk (i) Nature of credit risk The Bank’s exposure to credit risk is primarily from lending/financing activities to retail consumers, micro, small and medium-sized enterprises (‘’SMEs’’) and corporate customers. Investment in equities, sukuks and other marketable securities as well as other financial/banking instruments, whether they are classified under banking book or trading book, may also expose the Bank to credit risk and counterparty credit risk. (ii) Definition of credit risk 256 AGROBANK Credit risk is the risk of potential loss due to failure of or unwillingness of the customers or counterparties to fulfil their contractual financial obligations as and when they arise. (iii) Objective of credit risk management The goal of credit risk management is to keep credit risk exposure to an acceptable level and to ensure the returns are commensurate with risk. (iv) Management of credit risk The management of credit risk is governed by the credit risk management framework which sets out the risk management governance and infrastructure, risk management processes and control responsibilities. Policies, procedures and guidelines for credit operations are properly documented and are made available through the Bank’s intranet and Risk Management Division portal. These policies and procedures are subject to periodical review and enhancement to ensure its relevancy and in line with business directions and market environment. (v) Measurement of credit risk Collateral position in financing and advances Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Credit facilities are granted on the basis of the customer’s credit standing, project viability and payment capacity as per the Bank’s credit policy. However, due to the nature of its financing, the Bank generally requires collateral against financing and advances to customers in the form of charges over property, other registered securities over assets and guarantees. Estimates of fair value are based on the value of collateral assessed at the time of financing and is revalued once in two years or when a financing is impaired. The main types of collateral held by the Bank to mitigate credit risk are as follows: (i) Project financing – charges over land, buildings, plant and machinery, fishing vessels, ownership claim over vehicles, term deposits and pledges over shares and marketable securities. (ii) Retail financing – charges over land and term deposits for certain types of financing.
  272. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 35 . FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (b) Credit risk (cont’d) (v) Measurement of credit risk (cont’d) Collateral position in financing and advances (cont’d) 2018 Neither past due nor impaired Past due but not impaired Impaired 2017 Neither past due nor impaired Past due but not impaired Impaired Secured RM’000 Unsecured RM’000 Total RM’000 Financial effect of collateral* % 3,869,314 183,461 318,371 6,218,162 65,460 120,969 10,087,476 248,921 439,340 38.4 73.7 72.5 4,371,146 6,404,591 10,775,737 40.6 4,220,918 163,848 277,783 4,721,297 68,783 157,274 8,942,215 232,631 435,057 47.2 70.4 63.8 4,662,549 4,947,354 9,609,903 48.5 * Based on quantification of the extent to which collateral and other credit enhancements mitigate credit risk in respect of the amount that best represents the maximum exposure to credit risk. Maximum exposure to credit risk The following analysis represents the Bank’s maximum exposure to credit risk of on-balance sheet financial assets and off-balance sheet exposure, excluding any collateral held or other credit enhancements. For onbalance sheet financial assets, the exposure to credit risk equals their carrying amount. For off-balance sheet exposure, the maximum exposure to credit risk is the maximum amount that the Bank would have to pay if the obligations of the instruments issued are called upon and/or the full amount of the undrawn credit facilities granted to customers. Credit exposure for on-balance sheet items Cash and short term funds Financial assets at fair value through other comprehensive income Investment securities Financing and advances Other advances Other financial assets Credit exposure for off-balance sheet items Transaction related contingencies Trade related contingencies Financing commitments Total maximum credit risk exposure Maximum Exposure 2018 2017 RM’000 RM’000 1,131,489 4,380,736 - 10,431,162 9,548 106,322 1,308,683 4,403,960 9,173,891 34,067 97,019 16,059,257 15,017,620 42,781 10,927 959,740 38,462 55,618 937,138 1,013,448 1,031,218 17,072,705 16,048,838 LAPORAN TAHUNAN 2018 ANNUAL REPORT 257
  273. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 35 . FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (b) Credit risk (cont’d) (v) Measurement of credit risk (cont’d) Credit quality of gross financing and advances All financing, advances and other financing are categorised into ‘neither past due nor impaired’, ‘past due but not impaired’ and ‘impaired’. Past due financing refers to financing, advances and other financing that are overdue by one day or more. Financing, advances and other financing are classified impaired when they fulfill any of the criteria as per disclosed in Note 3.2(d) Measurement of expected credit losses (“ECL”). Quality classification definitions Where ECL model is applied, the credit quality of financial instruments subject to credit risk are assessed by reference to the internal rating system adopted by the Bank in 2018, as summarised below: Financing and advances and financing commitments and financial guarantee Rating classification 258 AGROBANK Credit grades Stage 1 Stage 2 Stage 3 Performing Under perfoming Impaired Other financial instruments External rating Rating classification RAM MARC Investment grade   Long Term Rating   Short Term Rating A, AA, AAA P1, P2, P3 A, AA, AAA MARC-1, MARC-2, MARC-3 Non investment grade   Long Term Rating   Short Term Rating B, BB, BBB P4 B, BB, BBB MARC-4 Impaired C/D, NP, D C, SD, D Other financial instruments includes cash and short term funds, deposits and placement with bank and other FIs, debt instruments at FVOCI and equity instruments at FVOCI. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Credit quality description can be summarised as follows: (i) (ii) (iii) (iv) (v) (vi) Performing Under performing Investment Grade Non-investment grade No rating Impaired
  274. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 35 . FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (b) Credit risk (cont’d) (v) Measurement of credit risk (cont’d) Impaired financing The breakdown of the gross financing and advances assessed as impaired, by sectors and the fair value of related collateral held by Bank as security are as follows: Gross impaired financing RM’000 Stage 3 Lifetime ECL credit - impaired RM’000 Fair Value of Collaterals RM’000 2018 Construction and Services Fishery Crops Livestock Manufacturing Retail and Wholesale Trade Others 9,252 42,624 148,193 56,729 52,000 85,474 45,068 3,571 26,248 80,329 35,178 35,137 53,031 40,236 5,681 16,376 67,864 21,551 16,863 32,443 4,832 439,340 273,730 165,610 Gross individually impaired financing RM’000 Individual impairment allowance RM’000 Fair Value of Collaterals RM’000 2017 Construction and Services Fishery Crops Livestock Manufacturing Retail and Wholesale Trade Others 6,153 42,020 164,516 90,642 42,190 51,904 37,632 126 11,383 31,177 53,995 21,617 6,861 14,008 6,027 30,637 133,339 36,647 20,573 45,043 23,624 435,057 139,167 295,890 Sectors: Sectors: The breakdown of collective impairment allowance for financing and advances by sectors are as follows: 2017 RM’000 Sectors: Construction and Services Fishery Crops Livestock Manufacturing Retail and Wholesale Trade Others 4,764 24,029 102,016 18,771 31,164 58,230 57,871 Collective impairment allowance 296,845 LAPORAN TAHUNAN 2018 ANNUAL REPORT 259
  275. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 35 . FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (b) Credit risk (cont’d) (v) Measurement of credit risk (cont’d) Credit risk in investment activities The credit risk management approach for investment activities is primarily deliberated at the Board Credit and Investment Committee (“BCIVC”). In the case of investment portfolio, the setting of credit limits is done and regularly reviewed by Market Risk Management Department (“MRMD”), as the middle office for treasury operations. Various credit limits on investment exposures are proposed to the Management Risk Committee (“MRC”) for endorsement and escalated to BRMC or Board for approval. Report on compliance of various investment exposure limits are done by MRMD which is presented and deliberated at the Asset Liability Committee (“ALCO”) on a monthly basis. The Bank’s investment policy stipulates the minimum investment grade for debt securities, types of permissible transactions, exposure limits for single customer/counterparty, credit rating, industry/sector and risk level (high, medium, low). In addition, the Bank has also set interbank limits for placements of money in various financial institutions which are reviewed on a regular basis to mitigate concentration limits in its investment portfolio. Investment portfolio concentration The portfolio profile is as follows: 260 AGROBANK Corporate sukuk Government Investment Issues (“GII”) Equity securities Carrying amount at 31 December 2018 Corporate sukuk Government Investment Issues (“GII”) Equity securities Carrying amount at 31 December 2017 RM’000 Composition (%) 2,695,696 1,684,939 101 62 38 - 4,380,736 100 2,874,551 1,529,241 168 65 35 - 4,403,960 100 Credit quality of investment securities The following table presents the Bank’s exposure to credit risk of financial instruments analysed by ratings from external credit rating agencies: Mengenai Kami Ratings Prestasi Strategik Kami 01 About Us 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Corporate sukuk Financial assets at FVOCI (2017: AFS securities) Government-Guaranteed (“GG”) Quasi-Govt AAA AA A BBB TOTAL 2018 RM’000 2017 RM’000 1,227,846 90,310 745,254 597,298 20,221 14,767 1,388,704 90,191 746,452 614,920 20,231 14,053 2,695,696 2,874,551
  276. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 35 . FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (b) Credit risk (cont’d) (v) Measurement of credit risk (cont’d) Credit quality of financial assets - financial investments portfolio and other financial assets. 2018 Cash and short term funds Financial assets at FVOCI Financing and advances As a percentage of gross balance 2017 Cash and short term funds Investment securities Financing and advances As a percentage of gross balance Neither past due nor impaired RM’000 Past due but not impaired RM’000 Impaired RM’000 Total RM’000 1,131,489 4,380,736 10,087,476 - - 248,921 - - 439,340 1,131,489 4,380,736 10,775,737 15,599,701 248,921 439,340 16,287,962 95.77% 1.53% 2.70% 100% 1,308,683 4,403,960 8,942,215 - - 232,631 - - 435,057 1,308,683 4,403,960 9,609,903 14,654,858 232,631 435,057 15,322,546 95.64% 1.52% 2.84% 100% Past due but not impaired Due within Due within Due within 30 days 31 to 60 days 61 to 90 days RM’000 RM’000 RM’000 Total RM’000 Analysis of aging of financing and advances for past due but not impaired. (c) 2018 Term Financing Revolving Financing 120,753 2,796 72,018 3,669 45,736 3,949 238,507 10,414 123,549 75,687 49,685 248,921 2017 Term Financing Revolving Financing 104,878 8,288 69,580 2,998 46,229 658 220,687 11,944 113,166 72,578 46,887 232,631 Liquidity risk (i) Nature of liquidity risk Liquidity risk relates to the ability of the Bank to maintain sufficient liquid assets to meet current and future financial commitments and obligations (anticipated or unanticipated) when they fall due without incurring unacceptable losses. Liquidity risk may arise when there is a mismatch between funding against lending/ financing within predetermined time buckets. The mismatches may lead to the inability for the Bank to fulfil its contractual obligations when they fall due. As such, the Bank has to maintain a portion of liquid assets in terms of cash, cash equivalents and marketable securities to match respective maturity buckets. LAPORAN TAHUNAN 2018 ANNUAL REPORT 261
  277. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 35 . FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (c) Liquidity risk (cont’d) (ii) Definition of liquidity risk Liquidity risk is defined as the inability of the Bank to meet timely payment on any of its financial obligations to customers or counterparties when they fall due or the Bank is unable or cannot easily unwind or offset a particular position at/or near the previous market price because of inadequate market depth or because of disruptions in the market place caused by the change in market sentiment or due to a specific event or series of events. (iii) Management of liquidity risk The management of liquidity risk is governed by the Market and Liquidity Risk Management Framework (“MLRF”) which sets out the risk management governance and infrastructure, risk management processes and control responsibilities. The Board through BRMC approves all policies in relation to liquidity risk management which are regularly reviewed by MRMD. BRMC also oversees the effectiveness and compliance of those policies on a regular basis. 262 AGROBANK Senior management is responsible to monitor and oversee liquidity risk exposures through the ALCO using primary tools such as maturity mismatch analysis, funding gaps, maximum cumulative outflows and funding concentration ratios using internal as well as market wide information to address possible liquidity issues. ALCO oversees the Bank’s financial position structure with regard to liquidity risk exposures and executes controls, within prudent limits and bucketing to manage risks arising from mismatches of maturities across the financial position structure, as well as from undrawn commitments and other contingent obligations. The day-to-day liquidity requirements and position is managed by Treasury Department (“TD”) while MRMD, under Risk Management Division (“RMD”) acts as Middle Office in monitoring and reporting liquidity risks to ALCO. (iv) Measurement of liquidity risk The liquidity risk management of the Bank is aligned with the New Liquidity Framework (“NLF”) issued by BNM, and is measured and managed based on projected cash flows. In addition to ensuring compliance with the NLF, the Bank’s maintains a liquidity compliance buffer to meet any unexpected cash outflows. The measurement of liquidity risk is done through financial position profiling using predetermined time buckets. The exposure limits for each bucket, in particular within a one year bond is closely monitored and analysed to ensure that the Bank has sufficient cash and liquefiable assets to meet contractual and behavioural maturities/commitments, and to determine the causes and ways to improve the gaps. The Bank maintains sufficient liquid assets (minimum 5% of total deposits) to meet contractual and behavioural maturities and commitments up to one week tenure. For up to one month bucket, the Bank maintains liquid assets of at least 7% of total deposits to meet contractual and behavioural maturities and commitments when they fall due. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information (v) Contingency funding plan (“CFP”) The Bank has a Contingency Funding Plan (‘’CFP’’) in place to deal with liquidity crisis situations. The CFP enables Management to make timely and well-informed decisions in managing any liquidity crisis caused by the Bank’s specific risk adverse positions as well as unfavourable market developments. The Bank sets out early warning indicators through various triggers, crisis escalation processes, a crisis management team and funding strategies to mitigate liquidity crisis situations. The CFP is tested and reviewed regularly to update the latest position and matters in relation to liquidity risk profiles of the Bank. (vi) Stress testing on liquidity risk As part of liquidity risk management, liquidity risk exposures are also measured through funding concentration, financing deposit ratios, cash and liquid asset ratios. Stress testing is conducted to quantify the worst case scenario of the liquidity position of the Bank based on deposit run-off, market crisis shock, capital erosion and negative publicity. The Bank emphasises the importance of low cost stable and retail deposits as the primary source of funds to finance its lending/financing activities in addition to corporate and other high cost deposits.
  278. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 35 . FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (c) Liquidity risk (cont’d) Maturity analysis of assets and liabilities based on discounted contractual cash flows: 6 - 12 1 - 3 3 - 5 Non-specific <6 months months years years >5 years maturity RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Total RM’000 2018 Assets Cash and short term funds Financial Assets at FVOCI Financing and advances* Other advances* Property, plant and equipment Intangible assets Deferred tax assets Other assets Total assets Liabilities Deposit from customers Deposit and placement of banks and other financial institutions Financing scheme funds Government grants Other liabilities Total liabilities Net maturity mismatch 1,131,489 - - - - - 1,131,489 75,074 220,007 677,219 1,348,022 2,060,313 101 4,380,736 1,661,658 6,318 135,579 3,225 227,090 2,091 718,476 2,715 8,032,934 2,678 - 10,775,737 - 17,027 - - - - - - - - - - 143,510 21,678 143,510 21,678 - 98,080 - 982 - 4,669 - 486 - 5,035 11,391 6,095 11,391 115,347 2,972,619 359,793 6,158,162 1,355,793 75,911 30,457 - - 7,620,323 2,990,170 - - - - - 2,990,170 48,038 109,043 314,513 329,151 1,024,563 - 1,825,308 - - - 119,495 - 11,683 - - - - 9,196,370 1,584,331 402,107 (6,223,751)(1,224,538) * Gross before allowance for impairment 911,069 2,069,699 10,100,960 182,77516,596,915 748,691 6,806 748,691 137,984 359,608 1,024,563 755,49713,322,476 508,962 1,710,091 9,076,397 (572,722) 3,274,439 LAPORAN TAHUNAN 2018 ANNUAL REPORT 263
  279. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 35 . FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (c) Liquidity risk (cont’d) Maturity analysis of assets and liabilities based on discounted contractual cash flows:(cont’d) 6 - 12 1 - 3 3 - 5 Non-specific <6 months months years years >5 years maturity RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Total RM’000 2017 Assets Cash and short term funds 1,308,683 Investment securities 14,999 Financing and advances* 1,406,150 Other advances* 41,453 Property, plant and equipment - Intangible assets - Deferred tax assets - Other assets 94,705 264 AGROBANK Total assets 2,865,990 Liabilities Deposit from customers 6,571,461 Deposit and placement of banks and other financial institutions 2,180,070 Financing scheme funds 48,584 Government grants - Other liabilities - Total liabilities Net maturity mismatch Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information 8,800,115 - - - - - 1,308,683 265,495 649,750 1,116,665 2,356,590 461 4,403,960 159,844 1,237 208,124 9,338 719,826 4,207 7,115,959 4,361 - 9,609,903 - 60,596 - - - 526 - - - 2,781 - - - 205 - - - 10,984 427,102 869,993 1,840,903 9,487,894 139,152 19,348 13,994 6,095 139,152 19,348 13,994 115,296 179,05015,670,932 859,639 97,955 60,322 - - 7,589,377 - - - - - 2,180,070 46,529 - - 222,134 - - 328,651 - - 1,043,865 - - - 1,689,763 807,325 807,325 144,938 144,938 906,168 320,089 388,973 1,043,865 952,26312,411,473 549,904 1,451,930 8,444,029 (773,213) 3,259,459 (5,934,125) (479,066) * Gross before allowance for impairment
  280. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 35 . FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (c) Liquidity risk (cont’d) Maturity analysis of financial liabilities based on undiscounted contractual cash flows: 6 - 12 1 - 3 3 - 5 Non-specific <6 months months years years >5 years maturity RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 Total RM’000 2018 Liabilities Deposit from customers 6,237,968 Deposit and placement of banks and other financial institutions 3,123,233 Financing scheme funds 48,120 Government grants - Other liabilities - Total liabilities 1,394,298 82,564 35,035 - - 7,749,865 - - - - - 3,123,233 109,514 - 119,495 319,213 - 11,683 337,393 - - 1,517,757 - - - 2,331,997 748,691 748,691 6,806 137,984 9,409,321 1,623,307 413,460 372,428 1,517,757 755,49714,091,770 2017 Liabilities Deposit from customers 6,659,611 Deposit and placement of banks and other financial institutions 2,265,093 Financing scheme funds 48,667 Government grants - Other liabilities - Total liabilities 882,248 105,889 68,683 - - 7,716,431 - - - - - 2,265,093 46,686 - 141,680 225,441 - 993 336,880 - - 1,654,059 - - - 2,311,733 807,325 807,325 2,265 144,938 8,973,371 1,070,614 332,323 405,563 1,654,059 809,59013,245,520 LAPORAN TAHUNAN 2018 ANNUAL REPORT 265
  281. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 35 . FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (d) Market risk (i) Nature of market risk Market risks arises from volatilities in profit rates, equity prices, commodity prices, credit spreads and foreign exchange rates which are inherent in the investment portfolio. The market risk exposure for the Bank relates to all financial assets and liabilities held for investment in the banking book as well as for trading purposes. As the Bank’s investment portfolio focuses on profit rate bearing assets and liabilities, movements/changes in profit rates in the market may pose major and significant risk to the fair value of the investment portfolio of the Bank. (ii) Definition of market risk Market risk is defined as the risk of losses in On and Off Balance Sheet positions arising from unexpected movements in market prices due to volatility in profit rates, equity prices, commodity prices, foreign exchange rates etc. (iii) Management of market risk The management of market risks, in particular the profit rate risk is governed by the MLRF which sets out the risk management governance and infrastructure, risk management processes and control responsibilities. 266 AGROBANK The Board through BRMC approves all policies in relation to market rate risks, in particular the profit rate risk management which are reviewed on a regular basis. BRMC also oversees the effectiveness and compliance of those policies as well as approve new and revised existing policies. At senior management level, ALCO deliberates market risk management by executing decisions, business strategies and action plans within the policies and guidelines approved by BRMC or the Board. The daily management of the investment portfolio is executed by the TD. MRMD acts as the middle office for investment and treasury related activities by executing risk governance and risk assessments on a regular basis. MRMD also provides independent assessment on market risk in relation to investment activities, including recommendation for new acquisitions and evaluation on mark-to-market prices and yield curves on investment returns, in particular for the FVOCI portfolio. MRMD provides monthly report to ALCO and BRMC for investment portfolio governance including the compliance of limits approved by BRMC/Board. For bank-wide market risk management, MRMD monitors the profit rate risk sensitivity through the Profit Rate Sensitivity Gap (“PRG”), Earnings at Risk (“EAR”) and Duration Weighted Gap (“DWG”) regularly and presents reports to ALCO every month. MRMD also signs off new product proposal papers and documents (together with other risk management units) for new products by incorporating relevant assessments and advice on market (and liquidity risks) prior to escalation to higher levels for BNM approval. (iv) Measurement of profit rate risk Mengenai Kami The measurement of the Bank’s exposures to profit rate risk is done through the following; Prestasi Strategik Kami • 01 About Us 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Sensitivity analysis Sensitivity analysis is used to determine how different values of an independent variable will impact a particular dependent variable under a given set of assumptions. This technique is used within specific boundaries that will depend on one or more input variables, such as the effect of changes in profit rates on sukuks prices.
  282. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 35 . FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (d) Market risk (cont’d) (iv) Measurement of profit rate risk (cont’d) • Profit rate gap (“PRG”) analysis Gap analysis is conducted to determine the gap between the Risk Sensitive Assets (“RSAs”) and Risk Sensitive Liabilities (“RSLs”) in relation to their sensitivity to profit rate movements in the market for any given period of time. The RSAs and RSLs are classified into predetermined buckets based on respective repricing modes which are either contractual or behavioural in nature and in particular to the movements of the Overnight Policy Rate (“OPR”) announced by BNM. The gap between RSAs and RSLs for each bucket represents the amounts and percentages of the PRG. For the measurement of PRG, the Bank takes the position of all buckets within one year sukuk and matches it against the predetermined limit to reflect sensitivity to the movement in the Net Profit Income (“NPI”) and capital. The Bank establishes a limit of +/-10% on the PRG to effectively mitigate profit rate risk. The non sensitive assets or liabilities which lack definite repricing intervals are assigned to buckets according to relevant judgment and past experience of the Bank. • Duration weighted gap (“DWG”) analysis DWG analysis utilises the time-weighted average maturity of the present value of the cash flows from assets, liabilities and off-balance sheet items. It measures the relative sensitivity of the value of these instruments to changes in profit rates (the average term to repricing), and therefore reflects how changes in profit rates will affect the Bank’s economic value, that is, the present value of equity. The Bank applies DWG to measure its capital and balance sheet sensitivity to the profit rate movements for all buckets as per PRG with the incorporation of predetermined weights. • Earnings at risk (“EaR”) analysis EaR analysis aims to quantify the impact on the projection of NPI in the event of an adverse change in prevailing profit rates for a period of 1 year, depending on profit rate sensitivity of the Bank (Asset Sensitive or Liability Sensitive). The Bank assumes a maximum 100 basis point rate movement as the worst case scenario. • Value at risk (“VaR”) analysis The Bank has in place the VaR model in measuring profit rate risk on its investment portfolio, despite not having a trading book portfolio. VaR is a statistical measure of the potential losses that could occur as a result of movements in market rates and prices over a specified time horizon within a given confidence level. The Bank adopted the Historical Simulation Approach for 250 days with 99% confidence level and predetermined VaR limit. • Stress test analysis/Scenario analysis Stress testing/simulation analysis are done based on macro economic variables, particularly “yield rates on sukuk values (“Duration”) and “beta ratio on equity” as well as possibility of sukuk downgrading impact. The stress testing/simulation analysis employs a range of simulated scenarios on the Bank’s investment portfolio to assess the impact on investment values, profitability and capital of the Bank. LAPORAN TAHUNAN 2018 ANNUAL REPORT 267
  283. 01 About Us 02 Our Strategic Performance Prestasi Strategik Kami 03 2018 Events Aktiviti 2018 04 How We Are Governed Bagaimana Kami Ditadbir Urus 05 2018 Financial Statement Penyata Kewangan 2018 06 Additional Information Maklumat Tambahan AGROBANK 9 ,196,370 Total liabilities * Gross before allowance for impairment - 109,043 - - 2,990,170 48,038 - - 1,464,836 1,355,793 6,158,162 337,173 - 220,007 117,166 - - - - - 6 - 12 months RM ‘000 Liabilities Deposits from customers Deposit and placement of banks and other financial institutions Financing scheme funds Government grants Other liabilities 9,943,617 Total assets <6 months RM ‘000 752,329 75,074 9,116,214 - - - - - Assets Cash and short term funds Financial Assets at FVOCI Financing and advances* Other advances* Property, plant and equipment Intangible assets Deferred tax assets Other assets 2018 390,424 - 314,513 - - 75,911 813,831 - 677,219 136,612 - - - - - 1 - 3 years RM ‘000 359,608 - 329,151 - - 30,457 1,832,515 - 1,348,022 484,493 - - - - - 3 - 5 years RM ‘000 1,024,563 - 1,024,563 - - - 2,542,225 - 2,060,313 481,912 - - - - - >5 years RM ‘000 1,131,489 4,380,736 10,775,737 17,027 143,510 21,678 11,391 115,347 Total RM ‘000 2,990,170 1,825,308 748,691 137,984 7,620,323 886,675 13,322,476 - - 748,691 137,984 - 1,127,554 16,596,915 379,160 101 439,340 17,027 143,510 21,678 11,391 115,347 Nonprofit sensitive RM ‘000 4.45% 0.45% 2.26% 3.41% 4.21% 6.62% Effective Profit Rate The following tables below indicate the effective profit rate at the reporting date and the Bank’s sensitivity to profit rate by time band based on the earlier of contractual repricing date and maturity date. (v) Profit Rate Risk (d) Market risk (cont’d) FINANCIAL RISK MANAGEMENT (cont’d) Mengenai Kami A. 268 35. FINANCIAL INSTRUMENTS (cont’d) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018
  284. A . 8,800,115 Total liabilities 320,089 - 222,134 - - 97,955 849,140 - 649,750 199,390 - - - - - 1 - 3 years RM ‘000 >5 years RM ‘000 - 2,356,590 528,973 - - - - - 2,885,563 - - 1,043,865 - - 1,043,865 3 - 5 years RM ‘000 - 1,116,665 470,304 - - - - - 1,586,969 60,322 - 328,651 - - 388,973 1,308,683 4,403,960 9,609,903 60,596 139,152 19,348 13,994 115,296 Total RM ‘000 2,180,070 1,689,763 807,325 144,938 7,589,377 952,263 12,411,473 - - 807,325 144,938 - 1,099,522 15,670,932 315,618 461 435,057 60,596 139,152 19,348 13,994 115,296 Nonprofit sensitive RM ‘000 Impact on profit before tax Impact on equity -100bp RM ‘000 (94,350) 213,043 2018 +100bp RM ‘000 94,350 (200,966) 81,282 (216,309) 2017 +100bp RM ‘000 The table below shows the impact of the Bank’s profit before tax and equity to an up and down 100 basis point parallel rate shock: Profit rate sensitivity * Gross before allowance for impairment - 46,529 - - 2,180,070 48,584 - - 906,168 859,639 6,571,461 376,199 - 265,495 110,704 - - - - - 6 - 12 months RM ‘000 Liabilities Deposits from customers Deposit and placement of banks and other financial institutions Financing scheme funds Government grants Other liabilities 8,873,539 Total assets <6 months RM ‘000 993,065 14,999 7,865,475 - - - - - Assets Cash and short term funds Investment securities Financing and advances* Other advances* Property, plant and equipment Intangible assets Deferred tax assets Other assets 2017 (v) Profit Rate Risk (cont’d) (d) Market risk (cont’d) FINANCIAL RISK MANAGEMENT (cont’d) 35. FINANCIAL INSTRUMENTS (cont’d) (81,282) 232,404 -100bp RM ‘000 3.65% 0.45% 2.65% 3.63% 4.11% 6.48% Effective Profit Rate NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 LAPORAN TAHUNAN 2018 ANNUAL REPORT 269
  285. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 35 . FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (e) Operational risk (i) Nature of operational risk Operational risk is inherent in the Bank’s business operations and associated with the Bank’s involvement with financial instruments, other than credit, market and liquidity risks. (ii) Definition of operational risk Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems and from external events. This definition includes legal risk but excludes strategic and reputational risk. (iii) Management of operational risk The management of operational risk is governed by the Operational Risk Management Framework (“ORMF”) which sets out the risk management governance and infrastructure, risk management processes and control responsibilities which is in line with the regulatory guidelines set by the Bank of International Settlements (‘’BIS’’), Basel Accords and BNM. The Board through BRMC approves all policies in relation to operational risk management which are reviewed on a regular basis. BRMC also oversees the effectiveness and compliance of those policies as well as approve new and revised policies. 270 AGROBANK Senior Management takes the responsibility of managing the business risks, the ultimate responsibility for establishing and maintaining appropriate risk management processes, making risk management an integral part of the Bank’s operations, aligning risk management to internal policies and procedures as well as ensuring that all risk based-limits are adhered to by the business divisions, departments and units. (iv) Measurement of operational risk • Oversight structure and lines of defence The interplay between the risk owners at the business level, Risk Management Division (‘’RMD’’) and Internal Audit Department (“”IAD””) forms the framework for the Bank’s “three lines of defence” in the managing of operational risks. The first line of defence is the Business risk owners, who are responsible for the day-to-day operational risk management where Key Performance Indicators (‘’KPIs’’), Key Risk Indicators (‘’KRIs’’) and Key Control Indicators (‘’KCIs’’), Risk Maps, Key Risk Control Self-Assessment (‘’RCSA’’) and Incident Management and Data Collection (‘’IMDC’’) are in place and aligned to the business objectives. RMD as the second line of defence is responsible for operational risk management oversight while IAD as the third line of defence is entrusted to perform independent assurance over the effectiveness of the operational risk management initiatives by RMD and the Business Units. Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information • Risk management process Operational Risk Management (“ORM”) refers to the end-to-end process that ensures operational risks are effectively managed from the time they are identified to the time the risks are mitigated within the risk appetite of the Bank. It is the responsibility of everyone at the Bank. This generic process is used to manage operational risks at all levels from units to Head office. The operational risk management process comprises 4 steps namely: (i) (ii) (iii) (iv) Risk identification Risk assessment Managing and controlling risk Monitoring and reporting risk
  286. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 35 . FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (e) Operational risk (cont’d) (iv) Measurement of operational risk (cont’d) • Reporting and communication guidelines In establishing a sound ORM at the Bank, the reporting and communication lines are extremely important. As operational risk is pervasive across the organisation and the range and type of incidents is broad, from fraud to product and system failures and from errors in the front office to the back office, it is important to share information at all levels. Information sharing should be through both formal reporting lines and face-to-face communication. • Culture Operational risk culture encompasses general awareness, attitude, behaviour of employees to the key operational risk causes such as people, process, systems and external events. Adequate awareness and training in operational risk is to be given to the staff and their roles and responsibilities clearly defined. In addition, the performance management process encourages staff to perform and behave in a manner consistent with the Bank’s operational risk management objectives. Adequate training is to be provided to the staff to ensure that they have acquired adequate level of knowledge and skill sets to perform their roles and responsibilities in operational risk management. (f) Capital management Regulatory capital BNM sets and monitors capital requirements for the Bank as a whole. The Bank’s regulatory capital is analysed into two tiers: • Tier 1 capital, which includes ordinary share capital, share premium, perpetual sukuk (which are classified as innovative tier 1 securities), retained earnings, translation reserve and non-controlling interests after deductions for goodwill and intangible assets, and other regulatory adjustments relating to items that are included in equity but are treated differently for capital adequacy purposes. • Tier 2 capital, which includes qualifying subordinated liabilities, government grants and collective impairment allowances for non-impaired financing. Various limits are applied to elements of the capital base. The amount of innovative tier 1 securities cannot exceed 15 percent of total tier 1 capital; qualifying tier 2 capital cannot exceed tier 1 capital; and qualifying term subordinated financing capital may not exceed 50 percent of tier 1 capital. There also are restrictions on the amount of collective impairment allowances that may be included as part of tier 2 capital. The Bank’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and sustain future development of the business. The impact of the level of capital on shareholders’ return is also recognised and the Bank recognises the need to maintain a balance between the higher returns that might be possible with greater gearing and advantages and security afforded by a sound capital position. The Bank and its individually regulated operations have complied with all externally imposed capital requirements throughout the period. Management uses regulatory capital ratios in order to monitor its capital base, and these capital ratios remain the international standards for measuring capital adequacy. The Bank has developed a Capital Management Plan (‘’CMP’’) to facilitate effective management of capital and address potential impact from financing deterioration as well as to provide an adequate buffer to support business expansion. LAPORAN TAHUNAN 2018 ANNUAL REPORT 271
  287. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 35 . FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (f) Capital management (cont’d) Capital allocation Capital allocation between specific operations and activities is, to a large extent, driven by optimisation of the return achieved on the capital allocated. The amount of capital allocated to each operation or activity is based primarily upon the regulatory capital, but in some cases the regulatory requirements do not reflect fully the varying degree of risk associated with different activities. In such cases the capital requirements may be varied to reflect differing risk profiles, subject to the overall level of capital to support a particular operation or activity not falling below the minimum required for regulatory purposes. The process of allocating capital to specific operations and activities is subject to review by the ALCO as appropriate. Capital Adequacy The capital adequacy ratio of the Bank as at the end of the reporting period is as follows: 272 AGROBANK 2018 % 2017 % Before deducting proposed dividend: Core capital ratio Risk-weighted capital ratio 23.13 26.46 24.94 28.98 After deducting proposed dividend: Core capital ratio Risk-weighted capital ratio 22.97 26.30 24.71 28.75 The capital adequacy ratio of the Bank as at 31 December 2018 has incorporated the market risk pursuant to the BNM Market Risk Capital Adequacy Framework which became effective on 1 April 2005. 2018 RM’000 2017 RM’000 1,000,000 487,109 1,404,381 (11,391) 1,000,000 487,109 1,337,112 (13,994) Components of Tier I and Tier II capital Tier I capital Share capital Statutory reserves Retained earnings Less: Deferred tax assets Total Tier I capital 2,880,099 2,810,227 Tier II capital ECL/Collective impairment allowance1 Regulatory reserve Government Grants - Operating Government Grants - Launching Government Grants - Funds2 83,984 34,951 23,310 2,920 268,928 159,622 24,505 4,144 267,326 04 How We Are Governed Total Tier II capital 414,093 455,597 Penyata Kewangan 2018 05 2018 Financial Statement Total capital base 3,294,192 3,265,824 Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus Maklumat Tambahan 06 Additional Information The eligible amount for Tier II capital is limited to only ECL/collective impairment allowance on non-impaired financing and advances. 1 The Government Grants - Funds exclude those grants relating to the fair valuation of financing scheme funds at below market rate amounting to RM453.13 million (2017: RM511.35 million). 2
  288. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 35 . FINANCIAL INSTRUMENTS (cont’d) A. FINANCIAL RISK MANAGEMENT (cont’d) (f) Capital management (cont’d) The breakdown of risk-weighted assets in the various categories of risk-weights is as follows: 0% 20% 50% 100% Off balance sheet risk-weighted assets Total risk-weighted assets at 31 December 2018 0% 20% 50% 100% Off balance sheet risk-weighted assets Total risk-weighted assets at 31 December 2017 B. Notional RM’000 Riskweighted RM’000 3,291,945 1,235,256 32,677 11,684,983 - 247,051 16,339 11,684,983 501,296 16,244,861 12,449,669 3,233,564 1,448,059 33,492 10,474,692 - 289,612 16,746 10,474,692 488,158 15,189,807 11,269,208 FAIR VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES Fair value is the amount at which the financial assets could be exchanged or financial liabilities could be settled, between knowledgeable and willing parties in an arm’s length transaction. The information presented herein represents the best estimates of fair values as of the reporting period. Fair value hierarchy Determination of fair value and fair value hierarchy The Bank uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1: Quoted (unadjusted) prices in active markets of identical assets or liabilities; Level 2: Other techniques for which all inputs which have significant effect on the recorded fair value are observable, either directly or indirectly; Level 3: Techniques which use inputs which have significant effect on the fair value that are not based on observable market data. (i) Financial assets and financial liabilities carried at fair value Set out below, is a comparison by the class of the fair value of the Bank’s financial instruments: Level 1 RM’000 Level 2 RM’000 Level 3 RM’000 Total RM’000 2018 Financial assets Financial Assets at FVOCI 101 4,380,635 - 4,380,736 2017 Financial assets Investment securities-AFS 168 4,403,792 - 4,403,960 LAPORAN TAHUNAN 2018 ANNUAL REPORT 273
  289. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 35 . FINANCIAL INSTRUMENTS (cont’d) B. FAIR VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONT’D) (ii) Financial assets and financial liabilities at carrying amount 2018 Carrying amount RM’000 Financial assets Financing and advances Financial liabilities Deposits from customers Deposit and placement of banks and other financial institutions Fair value RM’000 2017 Carrying amount RM’000 Fair value RM’000 10,431,162 6,595,215 9,173,891 5,916,406 10,431,162 6,595,215 9,173,891 5,916,406 7,620,323 7,472,916 7,589,377 7,379,580 2,990,170 2,862,776 2,180,070 2,103,300 10,610,493 10,335,692 9,769,447 9,482,880 The fair value of financing and advances, deposits from customers and deposit and placement of banks and other financial institutions are at Level 2 (2017: Level 2). The methods and assumptions used in estimating the fair values of financial instruments are as follows: 274 AGROBANK (i) Financial assets at FVOCI The fair values of private debt securities and Malaysian government investment issues are determined by reference to the market value of these instruments published by Bond Pricing Agency Malaysia (BPAM). The fair value of equities securities are determined based on quoted price from Bursa Malaysia Securities Berhad. (ii) Financing and advances For fixed-rate financing with maturities within a year, financing and advances at variable rates, the estimated fair values approximate their respective carrying values. For fixed-rate financing with maturities more than a year, the fair values are estimated based on expected future cash flows of contractual instalments and discounted at prevailing rate at the end of the reporting period offered for similar financing to new customers with similar credit profiles, where applicable. (iii) Deposits from customers Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information The fair values of deposits from customers with remaining maturity of less than one year are estimated to approximate their carrying amounts. The fair values of deposits with remaining maturities of more than one year are estimated using discounted cash flows based on market rates for similar deposits from customers.
  290. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 35 . FINANCIAL INSTRUMENTS (cont’d) C. ANALYSIS OF FINANCIAL ASSETS AND LIABILITIES BY MEASUREMENT BASIS Financial assets at FVOCI RM’000 Financial assets and liabilities at amortised cost RM’000 Total RM’000 - 4,380,736 - - 1,131,489 - 10,431,162 106,322 1,131,489 4,380,736 10,431,162 106,322 4,380,736 11,668,973 16,049,709 Financial liabilities Deposits from customers Deposit and placement of banks and other financial institutions Financing scheme funds Other financial liabilities - - - - 7,620,323 2,990,170 1,825,308 33,769 7,620,323 2,990,170 1,825,308 33,769 - 12,469,570 12,469,570 AFS securities RM’000 Financial assets and liabilities at amortised cost RM’000 Total RM’000 - 4,403,960 - - 1,308,683 - 9,173,891 97,019 1,308,683 4,403,960 9,173,891 97,019 4,403,960 10,579,593 14,983,553 Financial liabilities Deposits from customers Deposit and placement of banks and other financial institutions Financing scheme funds Other financial liabilities - - - - 7,589,377 2,180,070 1,689,763 44,400 7,589,377 2,180,070 1,689,763 44,400 - 11,503,610 11,503,610 2018 Financial assets Cash and short term funds Financial assets at FVOCI Financing and advances Other financial assets 2017 Financial assets Cash and short term funds Investment securities Financing and advances Other financial assets LAPORAN TAHUNAN 2018 ANNUAL REPORT 275
  291. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 36 . SHARIAH NON COMPLIANT EVENT (1) Nature of Non-Compliant (“SNC”) Events The Bank has put in place a sound Shariah governance framework to ensure strict adherence to Shariah requirements in its processes. A dedicated Shariah Committee (“SC”) provides Shariah oversight on all material Shariah non-compliant risks across the Bank. SNC event is a result of the Bank’s failure to comply with the Shariah rules and principles determined by the relevant Shariah regulatory councils. Any transactions that are suspected to be Shariah non-compliant are reported to the SC for their deliberation and conclusion as to whether any Shariah requirements have been breached. For the financial year ended 31 December 2018, the nature of Shariah non-compliance deliberated by the SC were as follows: Financing products (i) Non-compliance with Shariah requirement on the sequence of Bai Al-Inah execution. (2) Amount of Shariah non-compliant accounts and tainted income Throughout the year of 2018, there were 5 accounts (2017: 3 accounts) as SNC events reported to BNM. All of the SNC events had been rectified and resolved within 2018. 37. RESTATEMENT OF COMPARATIVES 276 Certain amounts in the comparative financial statements and note disclosures have been restated to conform with the current year’s presentation as detailed below: AGROBANK Statement of comprehensive income 31.12.2017 Income derived from investment of shareholder’s funds (Provision of)/writeback of impairment Statement of financial position 31.12.2017 Commitments and Contingencies Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information As previously stated RM’000 239,046 (4,298) 6,656,472 Adjustments RM’000 (5,599) 5,599 55,618 As restated RM’000 233,447 1,301 6,712,090
  292. MAKLUMAT TAMBAHAN ADDITIONAL INFO 278 Maklumat Korporat Corporate Information 279 Status Korporat Corporate Status
  293. MAKLUMAT KORPORAT CORPORATE INFORMATION LEMBAGA PENGARAH /BOARD OF DIRECTORS TAN SRI MOHAMAD ZABIDI ZAINAL Pengerusi/Chairman (Dilantik/Appointed: 29 Julai/July 2016) Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Datuk Seri Dr. Ismail Haji Bakar (Meletak jawatan/Resigned: 31 Julai/July 2018) Pengarah Bukan Bebas Bukan Eksekutif Non-Independent Non-Executive Director Dato’ Dr. Yusof Ismail (Dilantik/Appointed: 14 Disember/December 2016) Pengarah Bukan Bebas Bukan Eksekutif Non-Independent Non-Executive Director Jawatankuasa Lembaga Kredit & Pelaburan/Board Credit & Investment Committee Pengerusi/Chairman Faizah Abdullah 278 AGROBANK Ahli/Members Dato’ Dr. Mohamad Hashim Tajudin Datin Setia Shahariah Hashim Azizah Abdul Rahman (Penamatan keahlian/Ceased as a member: 28 Februari/February 2018) Ibrahim Hassan Abdul Rahim Abd Hadi (Dilantik/Appointed: 1 Mac/March 2018) Jawatankuasa Lembaga Audit/ Board Audit Committee Pengerusi/Chairman Azizah Abdul Rahman Ahli/Members Dato’ Dr. Mohamad Hashim Ahmad Tajudin Datin Setia Shahariah Hashim Dato’ Dr. Yusof Ismail Ibrahim Hassan Jawatankuasa Lembaga Pengurusan Risiko/Board Risk Management Committee Pengerusi/Chairman Ibrahim Hassan (Dilantik/Appointed: 1 Mac/March 2018) Mengenai Kami 01 About Us Prestasi Strategik Kami 02 Our Strategic Performance Aktiviti 2018 03 2018 Events Bagaimana Kami Ditadbir Urus 04 How We Are Governed Penyata Kewangan 2018 05 2018 Financial Statement Maklumat Tambahan 06 Additional Information Ahli/Members Dato’ Dr. Mohamad Hashim Ahmad Tajudin Datin Setia Shahariah Hashim Azizah Abdul Rahman Faizah Abdullah Jawatankuasa Pencalonan/ Nominating Committee Pengerusi/Chairman Datin Setia Shahariah Hashim Ahli/Members Dato’ Dr. Mohamad Hashim Ahmad Tajudin (Penamatan keahlian/Ceased as a member: 28 Februari/February 2018) Datuk Seri Dr. Ismail Haji Bakar (Penamatan keahlian/Ceased as a member: 28 Februari/February 2018) Azizah Abdul Rahman Faizah Abdullah Ibrahim Hassan Abdul Rahim Abd Hadi (Dilantik/Appointed: 1 Mac/March 2018) Dato’ Dr. Mohamad Hashim Ahmad Tajudin (Dilantik/Appointed: 3 Julai/July 2014) Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Faizah Abdullah (Dilantik/Appointed: 18 April/April 2017) Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Datin Setia Shahariah Hashim (Dilantik/Appointed: 1 Julai/July 2016) Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Abdul Rahim Abd Hadi (Dilantik/Appointed: 9 Januari/January 2018) Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Azizah Abdul Rahman (Dilantik/Appointed: 1 Julai/July 2016) Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Tuan Syed Alwi Mohamed Sultan (Dilantik sebagai Pengarah Urusan/Ketua Pegawai Eksekutif/Appointed as Managing Director/Chief Executive Officer: 2 April/April 2018) Dilantik semula daripada Pengarah Urusan/Ketua Pegawai Eksekutif ke Presiden/Ketua Pegawai Eksekutif/Redesignated from Managing Director/ Chief Executive Officer to President/Chief Executive Officer: 6 September/September 2018) Ibrahim Hassan (Dilantik/Appointed: 1 Mac/March 2017) Pengarah Bebas Bukan Eksekutif Independent Non-Executive Director Jawatankuasa Imbuhan/ Remuneration Committee Pengerusi/Chairman Dato’ Dr. Mohamad Hashim Ahmad Tajudin Ahli/Members Dato’ Dr. Yusof Ismail (Penamatan keahlian/Ceased as a member: 28 Februari/February 2018) Datin Setia Shahariah Hashim (Penamatan keahlian/Ceased as a member: 28 Februari/February 2018) Datuk Seri Dr. Ismail Haji Bakar (Meletak jawatan/Resigned: 31 Julai/July 2018) Ibrahim Hassan Azizah Abdul Rahman Abdul Rahim Abd Hadi (Dilantik/Appointed: 1 Mac/March 2018) Jawatankuasa Lembaga Teknologi Maklumat/Board Information Technology Committee Pengerusi/Chairman Abdul Rahim Abd Hadi Ahli/Members Dato’ Dr. Mohamad Hashim Ahmad Tajudin Datin Setia Shahariah Hashim Azizah Abdul Rahman Faizah Abdullah Kumpulan Pengurusan Kanan/ Senior Management Team Tuan Syed Alwi Mohamed Sultan (Dilantik/Appointed: 2 April/April 2018) Presiden/Ketua Pegawai Eksekutif President/Chief Executive Officer Masaat Awadz (Meletak jawatan/Resigned: 31 Disember/ December 2018) Ketua Pegawai Kewangan Chief Finance Officer Masaat Awadz (Dilantik/Appointed: 1 November/November 2018) Penanggung Tugas Ketua Pegawai Eksekutif Sumber Manusia Covering Chief Human Resource Officer Kamarul Azman Kamarozaman Timbalan Ketua Pegawai Kewangan Deputy Chief Finance Officer Khadijah Iskandar Ketua Pegawai Risiko Chief Risk Officer Zahid Ahmad Zawawi Ketua Pegawai Operasi Chief Operations Officer Mad Yusof Yazid Ketua Pegawai Pematuhan Chief Compliance Officer Ahmad Shahril Mohd Shariff Ketua Pegawai Bisnes Chief Business Officer Mohamad Taufik Mahamad Zakaria Ketua Pegawai Strategi Chief Strategy Officer Jasni Mohamed Yusoff Ketua Pegawai Kredit Chief Credit Officer Hasrul Farid Hasnan Ketua Audit Dalaman Chief Internal Auditor Abdul Khalif Mohammad Salleh (Meletak jawatan/Resigned: 26 November/ November 2018) Ketua Pegawai Sumber Manusia Chief Human Resource Officer Mohamed Parrish Ersalle Abdul Hameed (Dilantik/Appointed: 17 Disember/December 2018) Ketua Pegawai Sumber Manusia Chief Human Resource Officer Zarina Nadzimuddin (Meletak jawatan/Resigned: 26 Februari/February 2018) Setiausaha Syarikat Company Secretary Kamarul Azman Kamarozaman (Dilantik/Appointed: 21 Mac/March 2018) (Meletak jawatan/Resigned: 30 Mei/May 2018) Setiausaha Syarikat Company Secretary Norhana Othman (Dilantik/Appointed: 30 Mei/May 2018) Setiausaha Syarikat Company Secretary Jawatankuasa Syariah/Shariah Committee Pengerusi/Chairman Prof. Madya Dr. Mohamed Fairooz Abdul Khir Ahli/Members Prof. Madya Dr. Atikullah Haji Abdullah Dr. Mohamad Sabri Zakaria Tuan Haji Jahaidi @ Jahoidi Harun Tuan Haji Azizi Che Seman Y.M. Engku Ahmad Fadzil Engku Ali
  294. STATUS KORPORAT CORPORATE STATUS Bank Pertanian Malaysia Berhad (BPMB) telah didaftarkan dan diperbadankan pada 31 Mac 2008 di bawah Akta Syarikat 1965. BPMB yang secara komersialnya dikenali sebagai Agrobank, ialah sebuah Syarikat Berkaitan Kerajaan (GLC) di bawah Menteri Kewangan Diperbadankan (MKD). Walaubagaimanapun, pembiayaan sektor pertanian adalah selaras dengan polisi-polisi yang ditetapkan oleh Kementerian Pertanian dan Industri Asas Tani. Bank Pertanian Malaysia Berhad (BPMB) was registered and incorporated on 31 March 2008 under the Companies Act, 1965. BPMB which is also commercially known as Agrobank, is a Government-Linked Company (GLC) under the Minister of Finance Incorporated (MKD). However, funding for the agriculture sector is guided by policies set by the Ministry of Agriculture and Agro-based Industry. PEJABAT BERDAFTAR REGISTERED OFFICE Aras 3, Bangunan Agrobank Leboh Pasar Besar 50726 Kuala Lumpur IBU PEJABAT HEADQUARTERS Bank Pertanian Malaysia Berhad Bangunan Agrobank Leboh Pasar Besar 50726 Kuala Lumpur Tel: (603)-2731 1600 Laman web/website: www.agrobank.com.my Untuk maklumat lanjut, sila hubungi: For more information, please contact: • Pusat Panggilan/Contact Centre: 1300 88 2476 • E-mel/E-mail: customer@agrobank.com.my JURUAUDIT AUDITORS Tetuan (Messrs) Ernst & Young Aras 23A, Menara Milenium Jalan Damanlela Pusat Bandar Damansara 50490 Kuala Lumpur Tel. : (603)-7495 8000 Faks/Fax : (603)-2095 5332 TARIKH DIPERBADANKAN DATE OF INCORPORATION 31 Mac 2008 di bawah Akta Syarikat 1965 31 March 2008 under the Companies Act 1965 Sila imbas Kod QR untuk mengemukakan maklum balas Laporan Tahunan Agrobank 2018 Scan the QR Code to provide feedback on Agrobank Annual Report 2018 LAPORAN TAHUNAN 2018 ANNUAL REPORT 279
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  296. Leboh Pasar Besar , Peti Surat 10815, 50726 Kuala Lumpur, Malaysia. Tel : 603-2731 1600 | Fax: 603-2691 4908 | Email : customer@agrobank.com.my www.agrobank.com.my