BNM forecasts the Malaysian economy to grow at 5.5% - 6.5% in 2022. The growth of the economy will be supported by the pump-priming impact of Budget 2022. The total budget of RM332.1 billion, which includes targeted spending programmes, will have a strong multiplier effect across key sectors of the economy. Additionally, the further reopening of international borders will also boost Malaysia’s vital tourism industry, with strong positive spillover effects on other key sectors of the economy. In addition, the launch of the government’s 12th Malaysian Plan will further catalyse growth over the period 2021 to 2025. The plan emphasises growth in high impact projects in infrastructure, technology, and efforts towards greening the economy. Under the Plan, the contribution of renewable energy within the national energy mix is set to increase, which will support our push to expand our Green Financing portfolio. The national economy will also continue to benefit f rom the prevailing low interest rate environment. Many analysts expect BNM to maintain its Overnight Policy Rate (“OPR”) at the current record low of 1.75% throughout the first-half of 2022, and see the growing possibility of a rate-hike in the second half of the year, in line with the global trend towards monetary tightening. A key concern of Islamic finance is to eliminate poverty and serve human welfare, which aligns strongly with the objectives of the UN’s Sustainable Development Goals (“UNSDG”). We took a landmark step in this direction during the year, when BIMB Investment launched Malaysia’s first Waqf Featured Unit Trust Fund in March 2021. The Fund is an inclusive economic instrument based on philanthropic principles that aims to provide underserved members of society with access to qual i ty essent ial services and is recognised as a Qualified Sustainable and Responsible Investment (“SRI”) Fund under the Securities Commission (SC) Guidelines on Sustainable and Responsible Investment Funds. With its launch, BIMB Investment became the first fund management company to structure and design a waqf unit trust fund following the introduction of the Waqf-Featured Fund Framework by the SC in November 2020. As we move forward, we will continue to innovate in the area of social finance, not just because it makes good business sense, but also because it is an essential part of our identity as an Islamic banking and financial group. Alongside integrating ESG considerations into our business, we are also working to reduce the negative environmental impact of our operations. We have launched a green branch initiative that will see the introduction of solar panels, rainwater harvesting, energy efficient lighting systems and auto sensors at selected BIMB branches. The concept will be trialled at our Temerloh branch. OUTLOOK BIMB anticipates a stronger performance in the year ahead, supported by a rebound in the Malaysian economy and higher growth in our targeted financing areas and we have actively positioned ourselves to capitalise on the continuing recovery. BANK I SLAM MALAYS IA BERHAD 20 MESSAGE FROM THE GROUP CHIEF EXECUTIVE OFFICER
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