(Pg26-27)

AmBank Group Hosts

Chinese New Year 2019 Open House

PP190007/06/2016(034514) No. 145 ambankgroup.com

MARCH 2019

AmBank Group Wins Award for Best SME Bank

AmBank Group Hosts

Chinese New Year 2019 Open House

inside• AmBank Group

nine-month net profit grew 19% to RM1.05 billion (Pg4)

AmBank Group Wins Award for Best SME Bank (Pg7)

• Mr.LumSingFaihasbeenappointedasaNon-IndependentNon-ExecutiveDirectorofAmInvestmentBankon15January2019.Hehasmorethan30yearsofexperienceinthefinancialsector,hisexpertiseincorporatebankingwilladdvaluetoourInvestmentBankfranchise.

Onanothernote,Mr.JeyaratnamTamotharamPillaihasbeenappointedasanIndependentNon-ExecutiveChairmanofAmInvestmentBankon25January2019.IwouldliketothankY.M.RajaAnuar

binRajaAbuHassan,whoretiredfromtheBoardofAmBankIslamicon18February2019asanIndependentNon-ExecutiveDirector.Iwishhimcontinuedgoodhealth,happinessandsuccessinhisfutureundertakings.AmInvestmentBankcontinuestobe

recognisedbyvariousawardsforitsoutstandingperformance.RecentawardsincludefourwonatAlphaSEA12thAnnualDeal/SolutionAwards2018,twoawardsatIslamicFinanceNewsAwards2019,oneawardeachatTheAssetTripleACountryAwards2018andtheInternationalFinancingReviewAsia(IFRAsia)Awards2018.AmBankGrouphasbeennamedthe

BestSMEBankforMalaysiabyGlobalBanking&FinanceReview.Thisaward

Wehaveentered2019withapositivenoteforthenine-monthsended31December2018.Althoughbusinessconditionsinthefinancialindustryarebecomingtougherwitheachpassingyear,wehaveimprovedcompetitivenessbyintroducingefficientplatformsforourcustomers.WehavepartneredCreditGuarantee

CorporationinastrategiccollaborationwithPROTONprovidingitsdealerswithfinancingaccessviaCGC’sPortfolioGuaranteeworthRM100millionofferedexclusivelytoeligibleProtondealerstoassisttheminupgradingtheirfacilities.OntheDigitalfront,wehave

extendedourpartnershipwithWeChatPaytoincludethelocalwallet,WeChatPayMY,enhancingourdigitalcapabilitiesthroughstrategicpartnerships.Iwouldliketowelcometwonew

BoardMembers:• DrMohdNordinMohdZainhasbeenappointedasanIndependentNon-ExecutiveDirectorofAmBankIslamicon16January2019.Hehas34yearsofexperienceinvariouscapacitiesinbanking,education,regulatoryagencyandprofessionalpractice.

showsourdedicationtohelpsmallbusinessownersthroughfinancingandknowledge-sharingwhichgoesbeyondfinancialaccessibility.Oursportsclub,KelabAmBank

Group(KAG)hasorganisedNewYearDinnerfortheNorthernRegion,ChineseNewYear2019fortheSouthernRegionandKAGGoKartChallenge2019.IencourageAmBankerstoparticipateintheseactivitiesforbetterconnectivityamongstmembersacrosstheGroup.Iwouldliketoexpressmy

heartfeltappreciationtoallAmBankersforyourcommitment.Weneedtonotonlysustainpresentpositionbutworkevenmoretoensurefurtherimprovementforthefinancialyear.

2 message

AmBank Group at a Glance

Editor: Syed Anuar Syed Ali, Executive Vice President, Group Corporate Communications and Marketing, AmBank Group

Contributors: Engku Ili Hanisah Engku Zainal Abidin, Sheila Md Diah, Somesh Naidu, Jeevanaraj Pariyadan and Alia Emira Ismail.

Published by AmBank (M) Berhad (Company No. 8515-D) Design & Production: Duocore Creatives

MARKETCAPITALISATION

RM13.3 billionSHAREPRICE

RM4.56 per unitAS AT 31 MARCH 2019

TOTALASSETS

RM154.2 billionSHAREHOLDERS’EQUITY

RM17.2 billionAS AT 30 DECEMBER 2018

NO.OFEMPLOYEES

9,938BRANCHNETWORK

174AS AT 31 MARCH 2019

Tan Sri Azman HashimChairmanAmBankGroup

DearAmBankers,Asyouwouldbewellaware,we

havedeliveredanotherquarterofstrongearnings.Iwouldliketothankeachandeveryoneofyouforyourcommitmentinhelpingusdeliverthesesterlingresults.Ourfinancialresultsfortheninemonthsended31December2018closedwithanaccumulativeprofitofRM1.05billion.OurthirdquarterprofitofRM350millioncontributedtothiscommendable19%year-on-yearincreaseforthenine-monthperiod.Clearly,teamwork,hardworkandasharedgoalhavehelpedusachievethesefundamentals.Ifyourecall,inthebeginningof

thisfinancialyear,welaidoutourstrategicprioritiesandfinancialtargetsforFY19,whichentail:

Strategic priorities1.Revenue growth–continuetobuildincomemomentum

2.BET300–toachieveCTIof55%byFY19andcostsavingsofRM300millionoverthreeyears

3.Capital accretive growth–tostrengthenourcapitalpositionanddeliversustainabledividendpayout

Financial targets1.ROEof8.5%2.CTIof55%3.Dividendpayoutofcirca40%4.FinancialholdingcompanyCET1capitalratioat10.5–11.5%

Withourrecentcumulativenine-monthresults,weareontracktomeetourtargets.Toelaboratefurther,for9MFY19,weachievedROEof8.2%,CTIof51.6%andFHCCET1of12%.IamconfidentthatwecandeliveronourfullyearROEtarget.Overthepreviousfinancialyear,

webuckleddownanddeliveredonourTop4strategy,carvingareputationamongsttheinvestmentcommunityasabankcommittedtocreatingvalueforourshareholdersandinvestors.Today,Iamhonouredtosaythat,withyourcontinuedteameffort,weareonasolidfootingtoweatheranychallengesthatmaycomeourwayinlinewithourmuchstrengthenedcapitalandliquidityposition.Iamalsopleasedtoannounce

thatwearenowbackintheFBMKLCITop30Index,lessthanayearsincewewereexcludedinJune2018.ThiswouldnothavebeenpossiblewithouttheAmBank“nevergiveup”spirit.Weneedtocontinuetodemonstratetoourcustomers,stakeholders,investorsandthepublicatlarge;howwehavebouncedbackfromourprevioushardtimesandthat,weareachievingallthison

abedrockofhighlystrengthenedcorporategovernanceandimprovedfundamentalsinupholdingourvalues.MyfellowAmBankers,Iencourage

youtostartyoursprintasweclosethefinalquarterforthefinancialyearending31March2019.IamconvincedwewillbeabletoendFY19onahighnote.Wemuststrengthenourresolveandstaysingle-mindedtoachieveourgoals.BeforeIend,Iwouldliketo

reassureallfellowAmBankers,Iremainopentoyourfeedbacktoimprovethewaywedobusinessforthebenefitofourcustomersandstakeholders.PleasefeelfreetodropmeanotetoshareyourthoughtsonhowwecanstrengthentheAmBankGroupfurtherasweruntheracetoclosethefinancialyearonastrongernote.Thankyouandkeepupthegood

workthatyouaredoing.

Dato’ Sulaiman Mohd TahirGroupChiefExecutiveOfficer,AmBankGroup

Teamwork, hard work and a shared goal have helped us achieve these fundamentals.Dato’ Sulaiman Mohd Tahir GroupChiefExecutiveOfficerAmBankGroup

3Message from Group Chief Executive Officer

NO.OFEMPLOYEES

9,938BRANCHNETWORK

174AS AT 31 MARCH 2019

Our third quarter profit of RM350 million contributed to this commendable 19% year-on-year increase for the nine-month period.

AMMBHoldingsBerhad(AmBankGrouportheGroup)announcedthefinancialresultsfortheninemonthsended31December2018(9MFY19).

Dato’ Sulaiman Mohd Tahir(Dato’Sulaiman),AmBankGroupChiefExecutiveOfficercommented,“Ournine-monthresultsdemonstratethatourstrategieswhichhavebeenputinplaceoverthelastcoupleofyearsarebearingfruitsonourbottomlineandourbusinesses.Thisisreflectivebyvirtueofthefactthatournetprofitduringtheperiodrose19%year-on-yearagainstabackdropofslowereconomicgrowthandheightenedmarketsvolatility.Incomewasup2%underpinnedbysteadyloansgrowth,drivingnetinterestincomegrowthof5.9%.OurcommitmentandresolvetoimprovecostefficienciesespeciallyinasubduedenvironmenthasresultedintheGroupachievingaCTIof51.6%withpositiveJAWSofcirca12%.Asaresult,pre-provisionprofitgrew18%.Additionally,wehavealsoachievedafewlargecorporaterecoveries,providingadditionalboosttoourearnings.OurROEhasimprovedto8.2%(9MFY18:7.2%),andIbelievewearewellontracktoachieveourFY19ROEtargetof8.5%.”TheGroup’sthirdquarter(Q3FY19)netprofitwasup59.8%comparedtoayearago(Q3FY18),

propelledbyhigherlendingvolume,lowercostbaseandincreaseinrecoveries.Comparedwiththeprecedingquarter(Q2FY19),profitwasbroadlystablequarter-on-quarter(QoQ)assofterincomefromtradingandinsurancewasmitigatedbytheresolutionofseveralnon-performingcorporateloans.Fortheninemonthsended31December2018,totalincomeincreasedby2%YoY.NIIgrew5.9%

YoYtoRM1,951.4millionsupportedbyaconsistentexpansionofourloanbase.NoIIdroppedby4.7%YoYtoRM1,016.5millionimpactedbymarketsvolatilityandweakersentiments,resultedinlowercontributionsfromMarkets,FundsManagementandInvestmentBanking.Thisispartiallycushioned

Summary of 9MFY19 Results¹• Incomegrew2.0%toRM2,967.8millionunderpinnedbya5.9%increaseinnetinterestincome(NII).Netinterestmargin(NIM)at1.93%

• Expensesreducedby9.5%toRM1,530.9million,drivenbybusinessefficiencyinitiatives.Cost-to-income(CTI)ratioimprovedto51.6%from58.2%ayearago

• Profitbeforeprovision(PBP)increasedby18.2%toRM1,436.9million

• NetrecoveryofRM33.4million(9MFY18:netimpairmentchargeofRM32.9million)

• Consequently,netprofitaftertaxandminorityinterests(PATMI)grew19.0%toRM1,045.6million

Note:

¹ Allgrowthpercentagescomputedonyear-on-year(YoY)9MFY19vs9MFY18basisunlessotherwisestated.Year-to-date(YTD)refersto9MFY19vsFY18andquarter-on-quarter(QoQ)referstoQ3FY19vsQ2FY19.

² Onanannualisedbasis.

³ Includesregulatoryreserve.

4Underobservationperiod.

AmBank Group nine-month net profit grew 19% to RM1.05 billion

• Returnonequity(ROE)improvedto8.2%2(FY18:7.0%),withreturnonassets(ROA)of0.95%²(FY18:0.83%)andbasicearningspershare(EPS)of34.75sen(9MFY18:29.22sen)

• Grossloansandfinancinggrew4.2%YTDtoRM100.4billion.CustomerdepositsofRM106.8billion,up11.4%YTD

• Lowergrossimpairedloans(GIL)ratioof1.62%(FY18:1.70%),loanlosscover³(LLC)ratiohigherat116.8%(FY18:100.5%)

• FinancialHoldingCompany(FHC)CommonEquityTier1(CET1)capitalratioof12.0%(FY18:11.1%),FHCTotalCapitalratioof15.7%(FY18:13.6%)

4 business

byhigherfeeincomefromCorporateBankingandBusinessBankingcoupledwithbetteroutcomesfromGeneralandLifeInsurancebusinesses.TheGrouphasundertakenassertivecostinitiatives

whilecontinuingtoinvestinstrengtheningtheGroup’sinfrastructureandbuildingnewcapabilities.TheBET300efficiencyprogrammeison-going,withexpensesfallingby9.5%YoYtoRM1,530.9million.CTIimprovedto51.6%from58.2%ayearago.TheGrouphassetaCTItargetof55%forFY19.TheGrouprecordedanetrecoveryofRM33.4

millionin9MFY19comparedtoanimpairmentchargeofRM32.9millioninthesameperiodlastyear,aidedbyseverallargecorporaterecoveries.Grossimpairedloansratioimproved8bpsto1.62%andloanlosscoverroseto116.8%.TheGroup’sassetqualityremainsresilientwhilecreditvigilanceisexercisedinalessbenigncreditenvironment.Grossloansgrowthisbroadbased,up4.2%YTD

or6%comparedwiththecorrespondingquarterlastyearwithgoodtractioninthetargetedsegments.Growthinretailloanswasmainlyattributabletomortgageloanswhichincreased10.8%YTDtoRM29.3billion.Cardreceivablesontheotherhandgrew12.4%YTDtoRM2.2billion.Loanstosmallandmediumenterprises(SME)grew13.3%YTDtoRM18.9billion.TheGrouprecordedarobustcustomerdeposits

growthof11.4%YTDtoRM106.8billion,outpacingtheindustry’sgrowth.Currentaccountsandsavingsaccounts(CASA)increasedby8.5%YTDtoRM22.1billion.AllbankingsubsidiariesoftheGrouphavemaintainedliquiditycoverage(LCR)andnetstablefundingratios(NSFR4)above100%.TheGrouphasstrengtheneditscapitallevels

throughadditionalTier2capitalraisedduringthethirdquarter.Asat31December2018,theGroup’sFHCCET1ratiowas12.0%andtotalcapitalratioof15.7%,representinghighercapitallevelthanthepreviousfinancialyearend.Dato’SulaimanfurthersharedtheGroup’s

progressonenhancingthefeaturesandofferingsofAmOnline,theGroup’sonlinebankingandmobilebankingplatform,“InconjunctionwithPaynet,wehaveincorporatedtheDuitNowfeatureintoAmOnline,enablingourcustomerstotransfermoney

instantlyandsecurelyusingtherecipient’smobilephonenumber.Amongstotherlatestfeaturesmadeavailable

inAmOnlineistheOneStepNewCreditCardActivation.ThefirstofitskindinMalaysia,itoffersa3-in-1processtoactivatecard,setpinthroughregisteringforAmOnlineallowingnewcustomerstobeabletousetheircardwithinminutesofreceivingit.Bysimplifyingthecardactivationprocess,wehopetodrivehigherutilisationbynewcardholders.AmOnlinealsooffershasslefreemotorinsurance

products,whichourcustomerscannowpurchaseorrenewtheirmotorinsurancewithAmAssuranceusingAmOnline.”Dato’Sulaimanadded,“Wearerampingupthe

digitisationofourfinancialservices.Wewillcontinuetointroduceothernewvalue-addedfeaturesintoouronlinebankingplatformandprovideamoreefficientonlinebankingexperience.ThesenewfeaturesarepartofourAmOnlinedigitalroadmapandthepromiseofanewfeatureeverythreemonths.”

Divisional performance (9MFY19 vs 9MFY18)¹

Wholesale BankingTotalincomerose2.5%toRM772.5million,supportedbyhigherNIIwhich

wasup8.6%YoY.NoIIcontracted11.2%duetosoftertradinggainonsecuritiesandlowergainsfromdisposalofforeclosedpropertiespartiallyoffsetbytheincreaseinfeeincome.The5.9%reductioninoperatingexpensesandthe

netrecoveriesandwritebackscontributedtoa56.5%increaseinprofitaftertax(PAT)toRM579.2million.Grossloansgrew1.4%YTDtoRM33.0billionwhilstcustomerdepositsgrew6.5%YTDtoRM43.7billion.

Investment Banking and Fund ManagementTheperformanceoftheinvestmentbankingandfundmanagementbusinesseswas

dampenedbythesubduedmarketconditions,resultinginalowerlevelofcorporateandclientinvestmentactivities.Overallincomefell25.9%toRM180.2million;PATatRM46.2million,fellby40.9%.

TheGroup’sthirdquarter(Q3FY19)netprofitwasup59.8%comparedtoayearago(Q3FY18).

5business

Income grew 2.5%

to RM772.5 million

PAT recorded at

RM46.2 million,

fell by 40.9%

9MFY19 Results (cont’d)

Business BankingIncomegrew23.3%toRM236.0million.NIIincreased22.4%onstrongloans

anddepositsgrowth.NoIIexpandedby26.0%fromhigherfeeincomeandforeignexchangesales.NetimpairmentchargestoodatRM15.1million,withhighergrossimpairmentchargeoffsetbyhigherrecoveries.PATincreasedby81.8%toRM101.7million.GrossloansgrewtoRM9.1billion,up17.6%YTD,andcustomerdepositsgrewtoRM5.3billion,up26.6%YTD.

Retail BankingIncomewasflatatRM1,111.8million.NIIwasup5.7%inlinewithloans

growth.NoIIcontracted18.7%principallyfromlowercardsrelatedincomeandalsoduetothenon-repeatofaone-timeinvestmentgainofRM42.5millioninthepreviousyear.Excludingthisone-timegain,theunderlyingNoIIfellby2.1%.Expenseswas16.7%lower,drivingPBPup34.7%toRM492.0million.NetimpairmentchargeofRM111.8million,reflectingboththelendingvolumeincreaseaswellastheimpactfromtheadoptionofMFRS9.PATincreased17.5%toRM289.4million.Grossloansgrew4.0%YTDfrommortgages,retailSMEandcards.Customerdepositsincreasedby7.1%,principallyfromfixeddeposits.

Islamic BankingIslamicBankingincomegrewby1.0%toRM622.7million,withoperatingexpensesreducedsignificantlyby28.8%fromthecostreductionexerciseanda

changeinthebasisofcrossentitiesrecharges.NetimpairmentchargeofRM110.4million,reflectingaYoYincreaseofRM54.0millionfromahandfulofcorporateaccounts,lowerretailrecoveriesandtheabsenceofareleaseofthegeneralmacroeconomicprovisioninthepreviousyear.Profitafterzakatandtaxationincreasedby16.5%toRM216.9million.

General InsuranceIncomeexpandedby6.0%toRM460.9millionlargelydrivenbyimprovedclaimsexperienceandhigher

grosspremium.OperatingexpenseswasflatatRM258.0million.Profitaftertaxincreasedby12.5%toRM165.4million.

Life Insurance and Family TakafulTheLifeInsuranceandFamilyTakafulbusinessesdeliveredPATofRM22.8millioncomparedtoalossinthesame

periodlastyearprincipallyduetotheincreaseinnetearnedpremiumof12.1%toRM379.8millionandactuarialvaluationimprovement.TheGrouphasequityaccountedtheresultsofthelifeinsuranceandfamilytakafulbusinesstoreflecttheGroup’seffectiveequityinterestsinthejointventures.

Prospects for financial year ending 31 March 2019Dato’SulaimancommentedthattheoutlookforMalaysiaremainspositive,withfullyearGDPgrowthfor2019projectedat4.5%to4.8%.Inflationandunemploymentlevelsarealsoexpectedtoremainmoderate.Hence,thisshouldunderpinaloansgrowthofabout4.9%forthebankingindustryin2019.Inhisclosingremark,Dato’Sulaimansaid,

“Withournewleadershipteaminplaceoverthelastcoupleofyears,wearepleasedtohavedeliveredanotherquarterofconsistentearningsamidstamorechallengingoperatinglandscape.Ourloansandcustomerdepositsgrowthhasbeenparticularlyencouragingandweremaincommittedinpropellinggrowthinourtargetsegments.Ourcostshavebeenwellcontainedaswecontinuetoinvestforgrowth.Wehaveincreasedourliquiditybuffersandstrengthenourcapitalpositions.Wearealsotargetingtoconcludethesaleofretailnon-performingloansby31March2019,whichwehaveannouncedearlier.Thisispartofourinitiativestoimproveourcapitalpositionandalsofocusourresourcesonnewervintagedelinquentloans.”

6 business

Income grew 23.3%

to RM236.0 million

Profit after zakat

and taxation

increased by 16.5%

to RM216.9 million

PAT recorded at

RM22.8 million

Income was flat at

RM1,111.8 million

PAT increased

by 12.5% to

RM165.4 million

AmBankGrouphasbeennamedtheBestSMEBankawardforMalaysiabyGlobalBanking&FinanceReview.GlobalBanking&FinanceReviewisaleadingUKbased

financialportalandPrintMagazineofferingNews,Analysis,Opinion,Reviews,InterviewsandVideosfromtheworldofBanking,Finance,Business,Trading,Technology,Investing,Brokerage,ForeignExchange,TaxandLegal,IslamicFinance,AssetandWealthManagement.

Commentingontheawardwin,Dato’SulaimanMohdTahir,GroupChiefExecutiveOfficer,AmBankGroupsaid,“Weareveryhonouredtoreceivethisawardfortheveryfirsttime.ThisachievementbearstestamenttoourcommitmentforexcellenceandthesupportrenderedtoourSMEclientswhichhasresultedintheircontinuedtrust.”ChristopherYap,ManagingDirector,

BusinessBanking,AmBankGroupadded,“ThisawardrecognisesoureffortstosupportSMEsintheirbusinessgrowththroughfinancingandknowledge-sharingwhichgoesbeyondfinancialaccessibility.Wewillcontinuetodeliverbusinessbankingsolutionsthatpushestheboundariesofinnovationinthisexcitingandchallengingnewera.”

AmBank Group Wins Award for

Best SME Bank

“This achievement bears testament to our commitment for excellence and the support rendered to our SME clients.”

Dato’ Sulaiman Mohd Tahir, Group Chief Executive Officer, AmBank Group

Dato’ Sulaiman Mohd Tahir (right), Group Chief Executive Officer, AmBank Group and Christopher Yap, Managing Director, Business Banking, AmBank Group with the presented awards.

7award

AmBank Group Wins Seven Awards at ASNB Starz Awards 2018

AmBankGroupwasrecognisedforitsoutstandingachievementsattheASNBStarzAwardsNite2018heldattheHiltonKualaLumpurHotelrecently.Theannualawardsceremonywasorganisedtorecognisetheachievementsofhigh-performingagentsandorganisationsofPermodalanNasionalBhd(PNB).Inthebranchcategory,AmBankJalan

YapKwanSengwasrecognisedasthetopAmBankbranchforhighestnumberoftransactionsandthirdplaceamongallagentsforthehighestnumberofnewaccountscreatedforallASNBproducts.

Belowarethelistofwinnersintheindividualcategories:

1.Hannah Lim Bee Bee,RelationshipManagerofAmBankPulauTikuswonthreeawardsandbroughthomeRM8,300thatnight.ShewasAmBank’sTopFinancialAdvisorandsecondhighestofASNBVariableSalesamongallagents.Shealsowonthebestdressedawardforthenight.

2.Peter Koh Mong Kai,RelationshipManager,AmBankSibuTanahmaswasnamedasoneofthetopfiveFinancialAdvisorwithhighestsalesofASNBVariableamongallagents.

3.Lo Lee Chin,OperationsExecutive,AmBankPlazaShellKotaKinabaluBranchwasawardedasthetopleadgeneratorforAmBankforhercontributingthehighestnumberofreferralsforASNBVariableSales.

8 award

AmBank Group Wins Seven Awards at ASNB Starz Awards 2018

AmBankGroupwonthe“2018NationalOSHExcellenceAward”intheFinancialInstitutioncategoryattherecentNationalOccupationalSafetyandHealth(NOSH)ExcellenceAwards2018ceremonywhichwasheldattheMövenpickHotelandConventionCentreKLIAinSepangonWednesday,27February2019.“Wearepleasedtoreceivethisawardasit

signifiesourcommitmentinbeingaresponsibleandcaringemployer,asweinculcatetheOccupationalSafetyandHealth(OSH)cultureandpromoteasafeandhealthyworkenvironmentwithinourpremises,”saidDato’SulaimanMohdTahir,GroupChiefExecutiveOfficer,AmBankGroup.TheNOSHExcellenceAwardsrecognises

organisationsfromvarioussectorsandindustriesthathaveshownexceptionalperformanceandachievementsinensuringoccupationalsafetyandhealthexcellenceattheworkplace,andawardingindividualswhohavedemonstratedexcellentperformance,commitmentandcontribution.

9award

AmBank Wins National Occupational Safety and Health Excellence Award

Eqhwan Mokhzanee, Chief Executive Officer, AmBank Islamic Berhad, who is also the Group OSH Chairman for AmBank Group (far right) receiving the “2018 National OSH Excellence Award” in the Financial Institution category from Deputy Prime Minister, Yang Amat Berhormat Dato’ Seri Dr Wan Azizah Wan Ismail (second from left) at the National Occupational Safety and Health (NOSH) Excellence Awards 2018 ceremony which was held at the Mövenpick Hotel and Convention Centre KLIA in Sepang. Looking on is Yang Berhormat M. Kulasegaran, Minister of Human Resources (far left) and Yang Berhormat Dato’ Haji Mahfuz Omar, Deputy Minister of Human Resources (second from right).

L-R: Heida Hew, Senior Vice President, Group Branding and Marketing, AmBank Group, Badrul Hisham Mohamad, Senior Manager, Cheque Processing, AmBank, Ahmad Fathuddin Mohd Salleh, Executive, OSH Department Group Admin, AmBank, Mohammad Nasiruddin Mohd Hashim, Manager, OSH Department Group Admin, AmBank, Eqhwan Mokhzanee, Mohammad Ismi Ismail, Head, Group Administration, AmBank Group, Syed Anuar Syed Ali, Executive Vice President, Group Corporate Communications and Marketing, AmBank Group, Firdausi Ab Samad, Head, Payment and Banking Support, AmBank and Mohd Ibrahim Ku Shaari, Senior Executive, OSH Department Group Admin, AmBank at the National Occupational Safety and Health (NOSH) Excellence Awards 2018 ceremony.

AmInvestmentBankBerhad(“AmInvestmentBank”)’sCapitalMarketsGroupcontinuestowinaccoladesintheregionalawardceremonies.Atotalofsixawardshavebeenwonsofarin2019.Thefulllistofawardswonby

AmInvestmentBankisasfollows:

1.TheAssetTripleACountryAwards2018•BestLoanAdviser(2ndconsecutiveyear)

2.AlphaSEA12thAnnualDeal/SolutionAwards2018•MostInnovativeBondDeal GENMCapitalBhd’sRM3.0BillionMTNProgrammeasJointLeadManagerandJointBookrunner

•BestSukukDeal MBSBBankBerhad’sRM2,295MillionStructuredCoveredSukukMurabahahFacilityasJointSolicitationAgent,JointPrincipalAdviser,JointLeadArrangerandJointLeadManager

•BestMudarabahDeal YinsonTMCSdnBhd’sRM1.5BillionPerpetualSukukMudarabahProgrammeasJointPrincipalAdviser,JointLeadArranger,JointLeadManager,JointShariahAdviserandFacilityAgent

•BestSustainableEnergy/Renewable Finance Deal SegiAstanaSdnBhd’sRM415MillionASEANGreenMTNFacilityasPrincipalAdviser,LeadArranger,LeadManager,FacilityAgentandSecurityAgent

3.InternationalFinancingReviewAsia(IFRAsia)Awards2018•MalaysiaCapitalMarketsDeal YinsonTMCSdnBhd’sRM1.5BillionPerpetualSukukMudarabahProgrammeasJointPrincipalAdviser,JointLeadArranger,JointLeadManager,JointShariahAdviserandFacilityAgent

Commentingonthesuccesses,SeohanSoo,ChiefExecutiveOfficer,AmInvestmentBank,said,“WearedelightedtobecontinuouslyrecognisedbyTheAsset,AlphaSoutheastAsiaandIFRAsiaandourmostrecentsixaccoladesreaffirmourpositionasatopplayerintheinvestmentbankingsector.Thisfurtherunderscoresourcommitmenttoprovidingthebestdebtcapitalmarketsolutionstoouresteemedclients.”

“Wearepleasedtoreceivethesetopawardsforourinvestmentbankingarmanditshowsthatweareontherighttrackaswecontinuetopaveourwayintheinvestmentbankingsegment.Wewillcontinuetobuildonourrecentpositiveperformancetomaintainourleadershippositionandtostrengthenourfootprint,”saidDato’SulaimanMohdTahir,GroupChiefExecutiveOfficer,AmBankGroup.

10 award

AmInvestment Bank continues to win Regional Awards and Recognition

L-R: Ong Wee Li, Senior Vice President, Capital Markets Group, AmInvestment Bank Berhad, Suresh Menon, Senior Vice President, Wholesale Banking Coverage, AmBank Group, Yeoh Teik Leng, Head, Capital Markets Group, AmInvestment Bank Berhad, Siddiq Bazarwala, Chief Executive Officer, Alpha Southeast Asia, Seohan Soo, Chief Executive Officer, AmInvestment Bank Berhad, Azidy Daud, Senior Vice President/Deputy Head, Global Markets, MBSB Bank Berhad, Suhaidin Md Shaukat, Senior Vice President/Head, Global Markets, MBSB Bank Berhad and Chean Pei Chen, Senior Vice President, Wholesale Banking Coverage, AmBank Group at the Alpha SEA 12th Annual Deal/Solution Awards 2018 held on Thursday, 21 February 2019 in Kuala Lumpur.

L-R: Steve Garton, Editor, IFR Asia, Felino Marcelo, Head, Client Coverage, Hong Kong & Head, Corporate Banking, Greater China, Malayan Banking Berhad and Yeoh Teik Leng, Head, Capital Markets Group, AmInvestment Bank Berhad at the International Financing Review Asia (IFR Asia) Awards 2018 held on Tuesday, 26 February 2019 in Hong Kong.

Jason Leong, Senior Vice President, Capital Markets Group, AmInvesmtment Bank Berhad at The Asset Triple A Country Awards 2018 held on Thursday, 24 January 2019 in Hong Kong.

TwoofAmInvestfundshavereceivedtophonoursforitsfundperformanceattheMorningstarAwards2019Malaysia(“MorningstarAwards”).Theaward-winningfundsareAmDynamic#BondandAmBonIslam.AmInvestmadeacleansweepofboth

awardsinthefixedincomecategory.AmDynamic#BondwasnamedtheBestMalaysiaBondFund,andAmBonIslamreceivedtophonoursastheBestMalaysiaBond(Syariah)Fund.Morningstarrecognises“fundsthat

deliveredthegreatestoutperformance,onarisk-adjustedbasis,in2018,andoverthelongterm.Theawardsmethodologyemphasisestheone-yearperiod,butfundsmustalsohavedeliveredstrongthree-year

returnsafteradjustingforriskwithintheawardspeergroupinordertoobtaintheaward”.Commentingonthelocalmarketoutlook

movingforward,GohWeePengadded,“TheoptimisticoutlookandprospectofMalaysianRinggitrecoveryarekeypositivesforMalaysianbondsandsukuk.Webelievesectorsthatwouldperformrelativelybetterthanthemarketincludesfinancial,consumer(non-discretionary),oilandgasplayersskewingtowardsmaintenance,exporters,selectivetechnologyplayersandrealestateinvestmenttrusts.”

The awards methodology emphasises the one-year period, but funds must also have delivered strong three-year returns after adjusting for risk within the awards peer group in order to obtain the award.

11award

Two AmInvest Funds Sweep Fixed Income Category for Fund Performance

L-R: Germaine Share, Associate Director, Manager Research, Morningstar, Wong Yew Joe, Head of Fixed Income (Islamic), AmInvest, Goh Wee Peng, Chief Executive Officer, AmInvest, Ong Liang Heng, Executive Director, Chairman’s Office, Securities Commission Malaysia and Raymond Lew, Head of Fixed Income, AmInvest with the two awards for AmInvest’s AmDynamic Bond and AmBon Islam funds at the Morningstar Awards 2019 Malaysia award ceremony held in Kuala Lumpur on Thursday, 21 March 2019.

AmInvestment Bank wins accolades at Islamic Finance News Awards 2019

AmInvestmentBankBerhad(“AmInvestmentBank”)receivedtwoawardsattheIslamicFinanceNewsAwards2019heldonThursday,21March2019,atStRegisHotel,KualaLumpur.MudarabahDealoftheYearaward

waspresentedtoAmInvestmentBankfortheirroleastheJointPrincipalAdviser,JointLeadArranger,JointLeadManager,JointShariahAdviser

andFacilityAgentforYinsonTMCSdnBhd’sRM1.5BillionPerpetualSukukMudarabahProgramme.Meanwhile,AmInvestmentBank’sroleasJointPrincipalAdviserforMalaysiaBuildingSocietyBerhad(MBSB)’sRM644.95millionacquisitionofAsianFinanceBankwasrecognisedastheEquity&IPODealoftheYearaward.

SeohanSoo,ChiefExecutiveOfficer,AmInvestmentBanksaid,“Theseawardsareafittingtestamenttotheteam’shardworkandcontinuousdedicationinprovidingcustomisedinvestmentsolutionstoourvaluableclientsdespitetheincreasinglychallengingmarketenvironmenttoday.Wehopetocontinuetoprovideourclientswithuniqueinsights,deliverexceptionalclientexperienceandmostimportantlybuildlong-lastingrelationshipswithourclients.”“ItisanhonourtoreceivethisrecognitionfromIFN.

Theseawardsreaffirmourinvestmentbankingarm’sexpertiseandcapabilitiesasaleadinginvestmentbankinMalaysia.Wewillcontinuetostriveandcommittoourclientsbymatchingtheirfundingandinvestmentrequirementswithourfullsuiteofinvestmentsolutions”,saidDato’SulaimanMohdTahir,GroupChiefExecutiveOfficer,AmBankGroup.

“These awards reaffirm our investment banking arm’s expertise and capabilities as a leading investment bank in Malaysia.”

Dato’ Sulaiman Mohd Tahir, Group Chief Executive Officer,

AmBank Group

12 award

L-R: Wong Tze Siang, Manager, Corporate Finance, AmInvestment Bank Berhad, Ng Ting En, Vice President, Wholesale Banking Coverage, AmBank Group, Marie Phang, Senior Vice President, Wholesale Banking Coverage, AmBank Group, Yeoh Teik Leng, Head, Capital Markets Group, AmInvestment Bank Berhad, Salina Mohd Burhan, Senior Vice President, Capital Markets Group, AmInvestment Bank Berhad, Saliny Kamaruddin, Senior Vice President, Corporate Finance, AmInvestment Bank, Tan Keng Lin, Senior Vice President, Corporate Finance, AmInvestment Bank Berhad, Chean Pei Chen, Senior Vice President, Wholesale Banking Coverage, AmBank Group, Ho Weng Yew, Executive Vice President/Head, Corporate Finance, AmInvestment Bank Berhad and Jason Chan Kai Lok, Senior Vice President, Corporate Finance, AmInvestment Bank Berhad at the Islamic Finance News (IFN) Awards 2019 held in Kuala Lumpur on Thursday, 21 March 2019.

Two AmInvest Funds Win Lipper Awards for Performance

TwoofAmInvestfundshavereceivedtophonoursforitsfundperformanceattheLipperFundAwardsfromRefinitiv2019(“LipperAwards”).Theaward-winningfundsareAmMalaysiaEquityandAmBalanced.AmMalaysiaEquityandAmBalanced

havedemonstratedconsistentlystrongriskadjustedreturnscomparedwithpeersoverathree-yearperiodending31December2018intheirrespectivecategories.AmMalaysiaEquityclinchedtheLipperAwardforbestperformingequityfundundertheEquityMalaysia–MalaysiaPensioncategory,whereasAmBalancedwasrecognisedwithintheMixedAssetMYRBal–Malaysia–MalaysiaPensionclassification.

Commentingonthesewins,GohWeePeng,ChiefExecutiveOfficerofAmInvestsaid,“Wearehonouredtotakehometheseawardsastheydemonstratethestrengthofourinvestmentteaminaddingvaluetothesefunds’overallperformanceovertime.Ourinvestmentapproachisacombinationofbothatop-downprocesswhichinvolvesanalysissuchasoneconomics,andabottom-upprocesswherebyweidentifysectorsandsecuritiestobuyandsell.Despitethechallengingmarketconditionslastyear,ourfundmanagershavecapitalisedoninvestmentopportunities,andourrobustinvestmentprocesseshaveenabledustodeliverconsistentpositivereturnsforthesefunds.”

“These awards demonstrate the strength of our investment team in adding value to these funds’ overall performance over time.”

Goh Wee Peng, Chief Executive Officer, AmInvest

13award

L-R: Steven Carroll, Head of ASEAN, Refinitiv, Yong Kong Chuan, Head of Quantitative Strategies, AmInvest, Badrul Hisham Dahalan, Head of Quantitative and Performance Analysis Department, Employees Provident Fund, Gan Kong Yik, Head of Equities (Conventional), AmInvest and YBhg Dato’ Ho Kay Tat, Publisher and Group Chief Executive Officer, The Edge Media Group with the two awards for AmInvest’s AmMalaysia Equity and AmBalanced funds at the Lipper Fund Awards from Refinitiv 2019 award ceremony held in Kuala Lumpur on 25 March 2019.

AmBank and CGC form strategic collaboration with Proton in providing financing access via Portfolio Guarantee– RM100 million allocated exclusively for Proton dealers

AmBankandCGCpennedastrategiccollaborationwithPROTONinprovidingitsdealerswithfinancingaccessviaCGC’sPortfolioGuarantee(PG)worthRM100millionofferedexclusivelytoeligibleProtondealerstofacilitatethem

inupgradingtheirfacilityto3S(sales,servicesandspareparts)and4S(includingbodyandpaint)centres.“Theceremonycelebratestheon-

goingstrategiccollaborationbetweenAmBankandCGC.WehaveseenpositivegrowthinourcollaborationswithCGCinthepastandexcitedwiththelaunchofthisnewPortfolioGuaranteewhichprovidesProtondealerswithexclusivefinancing.WevalueourlongrelationshipwithProtonandlookforwardtomorecollaborationswiththeminfutureonpaymentand

collectionsolutions,”saidDato’SulaimanMohdTahir,GroupChiefExecutiveOfficer,AmBankGroup.ThenewPGofferedbyAmBankand

CGCisatermloanfacilityrangingfromRM1milliontoRM3million,with70%oftheloanguaranteedbyCGC,andguaranteefeeabsorbedbyAmBank.Dealersmaysubmittheirapplicationsfrom18January2019onwardsandwillbeattendedtobasedonafirst-come-first-servedbasiswithinthecappedRM100millionallocation.

14 business

L-R: Dato’ Sulaiman Mohd Tahir, Group Chief Executive Officer, AmBank Group, Voon Seng Chuan, Chairman, AmBank (M) Berhad, Dato’ Agil Natt, Chairman, CGC and Datuk Mohd Zamree Mohd Ishak, President / Chief Executive Officer, CGC at the official exchange document ceremony held in Kuala Lumpur on 18 January 2019.

L-R : Cheng Seng Fook, Marketing Director, PROTON, Liew Vee Lee, President, Proton Edar Dealers’ Association Malaysia, Christopher Yap, Voon Seng Chuan, Dato’ Sulaiman Mohd Tahir, Datuk Mohd Zamree Mohd Ishak, Gloria Pang, Chief Financial Officer, PROTON, Dato’ Agil Natt and Leong Weng Choong, Chief Business Officer, CGC.

Dato’ Sulaiman Mohd Tahir test driving the Proton X70 with Christopher Yap and Datuk Mohd Zamree Mohd Ishak.

AmMetLifeTakafulBerhad(“AmMetLifeTakaful”)andTabungWaqafRakyatJohor(TWRJ),signedaMemorandumofUnderstanding(MoU)toestablishamutualunderstandingonwaqafarrangementbetweenbothpartiesonWednesday,23January2019.Throughthiscollaboration,death

claimsthatarisefromwaqafbenefitofferedbyAmMetLifeTakafulwillbechannelledtoTWRJforwaqafactivities,onbehalfoftheparticipant.BothAmMetLifeTakafulandTWRJarecommittedtoraisepublicawarenessonwaqafandtakafulprotectionthroughcommunityengagementinitiatives,includingawarenesscampaignandcharitableactivities.TheMoUwassignedbyNoorAzam

BinMohdYusof,ChiefExecutiveOfficer,

AmMetLifeTakafulBerhadandTuanHajiAbdulRashidbinA.Rahman,GeneralManager,PerbadananIslamJohor.AlsopresentatthesigningceremonywerethetopmanagementofTWRJandAmMetLifeTakaful.TheceremonywasheldatBangunanAmBankGroupinJalanRajaChulan,KualaLumpur.“WearepleasedtopartnerTabung

WaqafRakyatJohorastheyarethededicatedarmofstate-runPerbadananIslamJohorandhaveconductedvarioussocio-economicinitiativestobenefittheMuslimcommunityinJohor.WebelievethiscollaborationwillgiveourplanparticipantsthepeaceofmindknowingthattheirwaqafbenefitwillbeallottedtowardsbuildingnewacademicandmedicalfacilitiesinJohor,”saidEncikNoorAzam.

AmMetLifeTakafuldistributesshariah-compliantplansthathelpprotectplanparticipantsandtheirlovedonesfromunfortunateeventsaswellpreparefortheirreligiousobligation.CurrentlyAmMetLifeTakafulhastwoplansthatofferwaqafbenefittotheparticipants.Thefirstplan,Protect-iBudiprovidesbasiccoverageagainstdeathandtotalpermanentdisability,withoptionofawaqafbenefitriderthatprovideslumpsumpaymentuponunfortunateeventstoselectedwaqaforganisationsforwaqafpurposes.Anotherproduct,ProtectSecure-iMurniwhichisdistributedthroughAmBankbranches,alsohaswaqafbenefitbuiltintotheplan.“Boththeseplanshelpourparticipants

andtheirlovedonesleadameaningfulandprotectedlife.Theintentionofthiswaqafbenefitistohelpthelessfortunateandthecommunityatlargenottomentionbenefitingourparticipantsinthehereafter,”addedEncikNoorAzam.AccordingtoTuanHajiAbdulRashid

binA.Rahman,“Todayisasignificanteventforbothparties,PerbadananIslamJohorandAmMetLifeTakaful.ItisamilestoneforawaqafbodyandaTakafulcompanytobeinvolvedinsuchanengagement.Government’scapacitytobeinvolvedinsuchprojectsarelimited,thereforeitistimeforwaqafbodiestofindalternativewaystobenefittheummah,especiallyinJohor.Waqafisakeyinstrumenttodevelophealthcare,educationandeconomyunderTabungWaqafRakyatJohor.

AmMetLife Takaful signs Memorandum of Understanding with Tabung Waqaf Rakyat Johor

16 business

Noor Azam Mohd Yusof, Chief Executive Officer, AmMetLife Takaful (left) exchanging the MoU document with Haji Abdul Rashid A. Rahman, General Manager, Perbadanan Islam Johor (right) at the MoU signing ceremony which was held at Bangunan AmBank Group on Wednesday, 23 January 2019.

Noor Azam Mohd Yusof (fith from left), Syed Anuar Syed Ali, Executive Vice President, Group Corporate Communications & Marketing, AmBank Group (fourth from right), Ariff Azhan Abd Ghani, Head, Distribution Support, AmMetLife Takaful (third from right), Haji Abdul Rashid A. Rahman, General Manager, Perbadanan Islam Johor (center) and Farahely Adnan, Senior Finance Manager, Perbadanan Islam Johor (second from left) along with the management from AmMetLife Takaful and Perbadanan Islam Johor at the MoU signing ceremony.

AmBank Debit Card Customers win return flight tickets to BangkokThreeAmBankcustomerswereeachpresentedwithapairofreturnflightticketstoBangkokastheyemergedwinnersoftheirlatestDebitCardCampaign.ThecampaignwaslaunchedincollaborationwithThaiAirwaysandsupportedbyMastercard.TheprizegivingceremonywasheldrecentlyatMenaraAmBank,JalanYapKwanSeng,KualaLumpur.Theseniormanagementwhowerepresent

attheprizegivingceremonywereMsLiauWaiChoo,Head,RetailProductsManagement,AmBank(M)Berhad,LenonCheong,Head,CardsandMerchantServices,AmBank(M)Berhad,MrTishtiSumitra,GeneralManagerforMalaysiaandBrunei,ThaiAirwaysandMsNikkiLee,DirectorofConsumerMarketing,Mastercard,AsiaPacific.“Wewouldliketocongratulateallthewinners

andwearepleasedtocontinuerewardingour

valuedcustomersfortheirloyaltyandsupporttowardsus,”saidJadeLee,ManagingDirector,RetailBanking,AmBank(M)Berhad.“Theobjectiveofthis

campaignismainlytodrivecashlesstransactionbyusingAmBankdebitcards.Hence,byofferingthechancetowinsuchattractiveprizeswehopetopromoteelectronicpaymentsandcontinuebuildingourCASAbasecustomersatthesametime,”addedJade.AmBankcustomersstoodachancetowin

theprizewhentheyspentaminimumofRM200withsixtimesofretailtransactionsusingDebitCardduringthecampaignperiod.

“The objective of this campaign is mainly to drive cashless transaction by using AmBank debit cards.”

Jade Lee, Managing Director, Retail Banking, AmBank (M) Berhad

17business

Liau Wai Choo, Head, Retail Products Management, AmBank (M) Berhad (third from left) with the winners of AmBank Debit Mastercard Card Campaign at a prize giving ceremony which was held at Menara AmBank. Also present at the ceremony were Lenon Cheong, Head, Cards and Merchant Services AmBank (M) Berhad (far left), Tishti Sumitra, General Manager for Malaysia and Brunei, Thai Airways (far right) and Nikki Lee, Director of Consumer Marketing, Mastercard Asia Pacific (second from right).

L-R: Yong Kah Wah, Vice President, Business Support & Solutions, Cards, AmBank (M) Berhad, Lenon Cheong, Head, Cards and Merchant Services, AmBank (M) Berhad, Dato’ Sulaiman Mohd Tahir, Group Chief Executive Officer, AmBank Group, Goh Mei Lee, Chief Group Strategic Transformation Officer, AmBank Group and Mohd Radzi Bin Abdul Hamid, Senior Vice President, Merchant Business Solutions, Cards, AmBank (M) Berhad at the WeChat Pay Malaysia Kick-Off which was held in Kuala Lumpur on 26 March 2019.

AspartofAmBankGroup’stransformationagenda,theGroupisfocusedonenhancingitsdigitalcapabilitiesthroughstrategicpartnerships.Leveragingontheincreasein

e-walletpenetrationinthemarketplace,AmBankcollaborateswithWeChatPayin2018tooffercross-bordermerchantacquiringservices.Today,thatpartnershiphasextendedtoincludeitslocalwallet,WeChatPayMY.

“AmBankispleasedtobeoneoftheonlytwolocalbanksinMalaysiatobecollaboratedonbothcross-borderandlocalwallets.SincethelaunchofourWeChatPayforcrossbordertransactions,wehaveseenencouragingnumbersintermsoftransactionvolume,resultingfromtheconvenienceexperiencedbyusersonthispaymentplatform,”saidDato’Sulaiman,GroupChiefExecutiveOfficerofAmBankGroup.

AmBank collaborates with WeChat Pay MY

“Since the launch of our WeChat Pay for cross border transactions, we have seen encouraging numbers of in terms of transaction volume.”

Dato’ Sulaiman Mohd Tahir, Group Chief Executive Officer, AmBank Group

18 business

19business

AmBank Groupin theNewsAmBank Groupin theNews

NST, 16 Feb 2019, Business Times, Pg20

Focus Malaysia, 9 Mac 2019, Pg 38

NST, 22 Feb 2019, Business Times, Pg22

The Star, 12 Jan 2019, BizWeek, Pg24

Oriental Daily, 13 Mac 2019, News, Pg 10

Harian Metro, 04 Mac 2019, Business, Pg 30

Berita Harian, 04 Mac 2019, Business, Pg 27

20 bond market and foreign exchange review

USDTheUSDollarcontinuedtostrengthenduringthequarterunderreview.Thegreenbackappreciatedby0.9percentto96.173infourthquarter2018primarilysupportedbythehealthymacroeconomicdatasuchastheaccelerationinaveragewagegrowth,up3.3percentannualgrowthin4Q2018from3.0percentinthepreviousquarterwhilethecore-inflationcontinuedtoholdsteadyat2.2percentannualgrowthin4Q2018,samepaceasin3Q2018.Withothermajordatasheddingpositivetrend,itpavedwayfortheUSFederalReservetoraiseratesforthefourthtimein2018to2.25percent–2.50percentduringitsDecemberFOMCmeeting.TheFederalReservewasseentobeinawellpositiontobringinterestratesintheUSbacktoneutrallevels,anditmayneedtoraiseratestwoorthreemoretimesin2019.Onthewhole,theUSDollar

recoveryin2018ismainlyacorrectionwithinamulti-yearbearishtrendthatstartedinearly2017.The“exceptionalism”of2018wasdowntoimportantbuttemporaryfactors,suchasUSfiscalstimulus,economicgrowthslowdownoutsideoftheUS,politicalcrisesinEuropeandemergingmarkets,andariseintradetensions.Bythemiddleofthisyear,manyofthesethingswillhavechangedandtraderscouldpossiblyturntheirbacksonthedollar,whichiscurrently

Global Foreign Exchange Review in 4Q2018

overvaluedbysomemeasures.Butif2018didshowanything,suggestionstosellthedollar“judiciously,”believingthatmostofthedollar’sgainsarenowinthepastislikelytohappen.Buttheriskisnottobetoopessimisticonthedollar.

EuroTheeurolost1.0%to1.147largelyduetomonetarydivergencefromtheUSFederalReservesandtheEuropeanCentralBank.TheEuropeanCentralBankwereseenonaratherdovishtiltinthefinalquarterof2018owingtosoft-patchinthebloc.Besides,theeurowasdraggedbynoisessuchasUS-Chinatradewar;threatsonautomotivetariffs;Brexituncertainties;“YellowVest”protestinFrance;andconcernsonItaly’sgovernmentspendingplans.Afterseveralback-and-forthargumentswiththeEuropeanUnion,theItaliangovernmentfinallysubmittedtotheEuropeanUniontoreduceitstargetedfiscaldeficitof2.04%ofGDPfromtheinitial2.40%.TheEurocouldlikelyrecoverlost

groundfromtheDollarin2019,asUSeconomicgrowthmoderatesfollowingayearofexceptionaloutperformances.TheUSeconomywillcoolasthetaxcutsthatboosteditin2018begintolosetheirlustre.TheDollarisexpectedtodeclinefromanovervaluedlevelbacktowarditsequilibrium.ThatshouldmeanthemonetarypolicydivergencebetweentheUSFederalReserveandtheEuropeanCentralBank(ECB)willnotwiden,probablyconvergeinthelaterperiodof2019.

PoundThepoundwasseenvolatileduringthequarterunderreview.Itfellby2.2percentto1.275againstthedollar,largelyduetotheBrexitnoises.DespiteseeingsomepositiveprogressinBrexitdevelopmentduringearlyperiodofthefinalquarterof2018,itwaslatercurtailedafterthelawmakersinPrimeMinisterMay’sConservativePartytriggeredaconfidencevoteinherleadershipoverdivorcedeal.Nonetheless,thepoundreboundingafterPrimeMinisterMaysurvivedthe“no-confidence”vote.Duringthequarterunderreview,theBankofEnglandmaintaineditspolicyrateat0.75percent,afterhikingratesonceinAugust2018.

YenTheJapaneseyen,knownforitssafehavenstatus,appreciatedby3.7percentto109.7onthebackofloomingtradetensionaswellasdeteriorationofglobalriskappetite.Meanwhile,theeconomicdatareadingduringthequarterwasmoredisappointingwithkeydataliketheheadlineinflationeasedto0.8percentinannualgrowthinthefourthquarterof2018from1.2percentannualgrowthinthepreviousquarter.Atthesametime,exportsgrew0.6percentannualgrowthduringthequarterunderreviewfrom3.6percentannualgrowthinthepreviousquarter.Withsuchweakdata,theBankofJapancontinuedtomaintainitseasingmonetarypolicystancebykeepingitsinterestratesat-0.1percentanditsforwardguidanceofits10-yearbondyieldaroundzeropercent.

AsiaMajorityoftheAsiaex-Japancurrenciesstrengthenedagainstthedollarinthefinalquarterof2018largelyaftertheAsiancentralbankswitchedtomoreaggressivestancetotightentheirmonetarypolicytocushionagainsttherisingUSFedfundrates.TheIndianrupeecameinasthe

-1.0 0 0.5-0.5 1.0 1.5 4.02.5 3.0 3.52.0% Gain/(Loss)

SOUTH KOREAN WON CHINESE RENMINBI HONG KONG DOLLARTAIWANESE DOLLARTHAI BAHT

OFFSHORE CHINESE RENMINBIMALAYSIAN RINGGIT

SINGAPOREAN DOLLARPHILIPPINE PESO

INDONESIAN RUPIAHJAPANESE YENINDIAN RUPEE

Source:Bloomberg/AmBankResearch Asat31December2018

Performance of Asian Currencies against USD since October 2018

21bond market and foreign exchange review

bestperformerintheregion,gaining4.3percentquarter-on-quarterto69.8,followedbyIndonesiarupiahandPhilippinespesowheretheygainedby3.53percentquarter-on-quarterto14,390and3.0percentquarter-on-quarterto52.6largelyduetothecrashincrudeoilprices.Astheseeconomiesfacetwindeficitissues,thefallinglobalcrudeoilpriceshelpeasetherespectiveeconomy’simportbillandinflation.Meanwhile,Thaibahtrecouplosses,depreciatedonly0.1percentquarter-on-quarterto32.3bytheendofthefinalquarterafterthecentralbankofThailandraiseditsbenchmarkinterestratesforfirsttimesince2011by25basispointsto1.75percent.

MalaysiaMalaysianRinggitmanagedtorecoverlossesduringthequarterreview,closinghigherby0.1%to4.133whiletradingbetween4.134and4.201.ThevolatilityinthelocalcurrencywasduetoaslewofexternalchallengessuchastheUS-Chinatradewar,USmid-termelectionandnosediveincrudeoilpriceswhichinturnledtogrowingconcernsonMalaysia’sfiscaloutlook.Besides,thelocalcurrencywaspressuredbytheweakerlocalboursewhichfellby5.7percentto1,690.6withanetforeignoutflowofRM3.2billionduringthequartercomparedtoanoutflowofRM1.7billioninthepreviousquarter.However,thelocalcurrencymanagedtoclawbacksomeofthelossesbyendoftheyearasthedollar’sstrengtheningmomentumeasedduetotheUSpartialgovernmentshutdownandtherecoveringofcrudeoilprices.

Global Fixed Income Review in 4Q2018Inthefinalquarterof2018,theUSTreasuryof10-yearyieldsexhibitedsomelevelofvolatiletrend.Thetreasuryyieldroseashighas3.237percentsupportedbythehealthy

macrodatasuchstrongerwagegrowththatroseby3.3percentannuallyinthefinalquarterfrom3.0percentannuallyinthepreviousquarter.Meanwhile,core-inflationcontinuedtoremainsteadyat2.2percentyear-on-yearduringthequarter,samepaceasin3Q2018.ThisallowedtheUSFederalReservestoremainhawkish.However,the10-yeartreasuryyieldsfellsharplyby55.3basispointsfromitspeakinearlyNovember.ThesharpdropwasduetonoisesliketheUS-Chinatradewartension,USmid-termelection,dropinoilpricesandthepartialUSgovernmentshutdown.Bytheendoftheyear,the10-yeartreasuryyieldsettledat2.684percent.Duringthequarter,thebundyields

movedwithinarangeof0.227percentand0.572percent.Itsettledat0.239percentbyendoftheyear.AkeydevelopmentthattookplaceinthefinalquarterwasthattheEuropeanCentralBankendeditsbondpurchasingprogramof2.6trillioneuros.OtherdevelopmentsthatinfluencedtheyieldmovementduringthequarterwerethedropintheUSyields,weakcrudeoilpricesandsoftermacrodatathatledtoalowergrowthoutlookbytheEuropeanCentralBankfor2019to1.1percentandthenoisesofBrexit.Meanwhile,theUK’s10-yeargiltmovedin-tandemwithbund.Itfellby31.2basispointsto1.275percentbyend4Q2018mainlyduetoBrexituncertainties.

AsfortheAsiaex-Japanregion,theperformancewasrathermixed.Forinstance,the10-yeargovernmentyieldsforcountrieslikeIndia,China,SingaporeandThailandmovedin-tandemwiththeUSTreasuryyields.Forthesecountriestheir10-yearyieldsfellby61.6basispointsto7.366percent,31.6basispointsto3.302percent,48.9basispointsto2.03percent,and35.2basispointsto2.483percentrespectively.Meanwhile,the10-yearyieldsforIndonesiaandPhilippinesgainedby1.2basispointsto7.976percentand52.6basispointsto7.012percentasboththeirrespectivecentralbanksraisedinterestratesby25basispointsto6.00percentand4.75percentduringthequarterunderreview.Inthelocalbondmarket,the10-year

MalaysianGovernmentSecuritiesyieldsmovedwithinarangeof4.066percentand4.186percent.Itsettledat4.081percentbyendoftheyear.Duringthequarter,theyieldsperformancewasinfluencedbyissueslikethenationalBudgetwheretherewasconcernthatinternationalratingagenciesmaydowngradeusgiventhatthefiscaldeficitwasraisedto3.7percentoftheGDPfor2018frompreviously3.0percentoftheGDP.Besides,thelocalyieldswereimpactedbythemovementofglobalmarketsthatsawanetoutflowofforeignfunds,thuspressuringthelocalcurrency.

270

250

230

210

190

170

150

% Total Outstanding (RHS) MGS Foreign Holdings (RMbil)

Jan-15 Jul-15 Jan-16 Jul-16 Jul-17Jan-17

RM’bil

Jan-18 Jul-18

55%

50%

45%

40%

35%

30%

25%

Source:FastBNM/AmBankResearch Asat31December2018

Foreign Holdings of MGS

Economic Review in 4Q2018Duringthequarterunderreview,theglobalgrowthwasseentobelesssynchronisedwithmanufacturingcooling.Thoughglobalgrowthremainedintheexpansionarymode,theoutlookhasdeterioratedandactivitylevelshavelikelypassedtheirpeak.LeadingindicatorsofmanufacturingactivityloststeamincountriesliketheUS,China,andtheEurozone.TheChinesepolicymakerswerefacingchallengesinattemptingtomaintaingrowthwithoutwantingtoover-stimulateafteradecade-longcreditboomthatleftprivatesectordebtatworryinglevels.Withcreditgrowthstagnant,theirpolicy-easingmeasuresseemstobeinsufficienttosustainareacceleration.Further,agrowingUS-Chinageopoliticalrivalrysignifiesagraverisktothehighlyintegratedglobaleconomy.China’sslowdown,inadditiontoglobalmonetarytighteningandtradepolicyuncertainty,weighedontheindustrialsectorsinEuropeandelsewhere.Hence,theeconomygrew6.4

percentannualgrowth,theslowestgrowthsincethefirstquarterof2009.Thatwasadeclinefromthe6.5percentyear-over-yeargrowthinthethirdquarterof2018.Itsofficialeconomicgrowthcameinat6.6percentin2018–theslowestpacesince1990.Whatwasevidentinthefourthquarteristhat,whiletheeconomyisdecelerating,itactuallystillhassomesupportfrom

mostofthequartersfromtheexportfront-loading,referringtoexportersrushingtoshiptheirgoodsoutofChinabeforenewUStariffshit.AcknowledgingthatChina’s

developmentfacesamorecomplicatedanddifficultexternalenvironmentin2019,expectationsareforBeijingtorolloutmorestimulusmeasuresin2019.Therecouldbefurthercutstothereserverequirementratio–theamountofcashthatbankshavetoholdasreserves.Togetherwithotherpolicytweakssuchastaxcutsandinfrastructurespending,China’sgrowthcanbestabilisedsothattheeconomyachievesa“softlanding”in2019tobe6.2percent.Meanwhile,duringthequarter,noises

oftheUSeconomyheadingintoarecessionriskremainedlowthoughtheeconomygrew2.6percentquarter-on-quarterwhichislowerthan3.4percentinthepreviousquarter.TheUSFederalReserveinfourthquarterraisedthepolicyinterestratesfortheninthtime,furtherreducingthegapbetweenlong-andshort-termbondyields.Overthepast6tighteningcycles,theFedhasrespondedtolowunemploymentandrisingwagesbycontinuingtohikerates,evenaftertheyieldcurvebecamenegativelysloped.Thissuggeststhatiflabormarketremainstight,theFedmaybeinclinedtocontinuereducingmonetaryaccommodation.AstheFederalReserveshrinksits

balancesheetbyabout$50billionpermonth–andwiththeEuropeanCentralBank(ECB)havingendedits

quantitativeeasinginDecember2018–growthinmajorcentralbankbalancesheetsshouldturnnegativein2019.Afterunprecedentedpost-crisisglobalmonetaryeasing,theshifttowardmonetarytighteningisturningintoaliquidityheadwindthatmaykeepassetmarketvolatilityelevated.However,thelate-cycleconditions

havetakengripwheretheeconomygenerallymovespastitspeakrateofgrowthandbecomeslesshomogenous.Thisphaseisbetweenlessthanayeartomorethan2years.Inthepast,consumerandbusinessspendinggrowsinlatecycle.Theywillfallonlyafterthestartofrecession.Butthehousingconstructiontendstofallaheadofrecession.Asthecyclematures,tighterlabormarketstendtopressurewagesupwardandgenerateheadwindsforcorporateprofitmargins.Corporatetaxcutsandrecordsharerepurchasesfueledearningsgrowthandrisingexpectationsduring2018.Acomparativelypositivepolicy

backgroundfortheUScorporatesectorduring2018islikelytobecomemoreuncertainandlessfavorablein2019.Lessfruitfultrendsincludethefadingboostfromcorporatetaxcuts,theimpactofglobalquantitativetightening,thecumulativedragfromtradepolicyuncertaintyandhighertariffs,andmedium-termconcernsaboutthetrajectoryoftheUSfiscaldeficit.Growthin2019ismorelikelybesettlearound2.1percent.ThiswouldmeanthattheUSFederalReservewillhavetohaltitsmonetarytighteningpolicyand

REVIEW OF THE MALAYSIAN ECONOMY

22 review

Reported by Mr Anthony Dass, Chief Economist, AmBank Group

couldinfactmakea‘U’turntowardsinstitutingaratecutsometimelaterintheyear,especiallywiththeyieldcurveshavinginverted,whichnowheightenstheriskofarecession.PerformanceoftheEurozone

economyin2018waswellbelowexpectations.Havingexceededexpectationsin2017,withGDPgrowthof2.5percentannualgrowth–thestrongestsincethe3.1percentin2007–theeconomyregisteredastrongslowdownin2018.Although,thegrowthlevelsof2017werenotsustainable–takingintoaccounttheeconomicfundamentalsoftheEurozoneandtheperformanceoftherestoftheworld,theeconomicslowdownwasstrong,especiallyinthesecondhalfof2018.Inquarterlyterms,GDPwentfromgrowingaquarterlyaverageof0.7percentin2017toonly0.2%quarterlyaveragein2018.Althoughwecanarguethatdiverse

temporalfactorsnegativelyaffectedgrowthin2018and,insomecases,willcontinuetodosointheearlyperiodof2019,itseemsthattheadjustmentingrowthrateshasbeenmoreaggressiveandmuchworsethanexpected.Inaddition,therisksanduncertainty,generatedbyissuesasimportant–anddestabilising–asBrexit,thecommercialnegotiationswiththeUSandthepoliticalsituationinsomecountries,remainthereandwillcontinuetoaffectgrowthratesbydelayingbothconsumptionandinvestmentdecisions.Inthisenvironment,thegrowthcouldbearound1.1percentfor2019,with

theEuropeanCentralBankleavingthemonetarypolicyunchangedthroughouttheyear.Moreover,itannouncedanewroundofTargetedLongTermRefinancingOperation(TLTROs)whichwillbegininSeptember2019andmaturedinMarch2021.Meanwhile,Asianeconomyisbeing

shapedbyChina,astheregion’slargesteconomyfacesinternalandexternalchallenges,includingtradetensionswiththeUSAslowerChineseeconomicgrowthin2018didweighontheperformanceoftheeconomiesacrossAsia.AslowdowninChinawouldhaverippleeffectsacrossAsia,asitisamajortradingpartnerformostcountriesintheregion.Thatwouldalsoaffecttheregion’smarketconfidence.MosteconomiesinSoutheastAsiastartedtocoolinthesecondhalfof2018asUS-Chinatradetensionsescalated.Atthesametime,growthinthe

technologysectorisslowingworldwide,whichwilldentthegrowthofelectronicsexporters.TheWorldSemiconductorTradeStatisticsinNovemberpredictedthechipmarketasawholewillgrowbyjust2.6percentin2019,comparedwith15.7percentin2018,duetoweakerdemandforsmartphones.OutputofelectronicsinplaceslikeJapan,SouthKoreaandTaiwanmaysuffer.Anotherpotentialdestabilisingfactor

inAsiain2019iselections,andthepoliticaluncertaintythatmayresult.ThefirstbigelectoraltestintheregionistheThailandelectionthatwillmarkamilestoneinthecountry’sreturntocivilianrule.Evenifageneralelectionpassessmoothly,politicaluncertaintyislikelytoremainadragonThailand’sprospects.NextwillbeIndonesianwherethepresidentialelectionwillbeheldinApril,andtherewillbemidtermelectionsinthePhilippinesthefollowingmonth.IndianPrimeMinisterNarendraModiwillalsohaveageneralelectioninMay.Onepositivefactorwouldbeloweroil

prices,whichpeakedinlate2018.AsmanyAsianeconomiesrelyheavilyondomesticconsumption,loweroilprices

couldhelpmoderateinflationandboostconsumerspending.Besides,withtheUSFederalReserveputtingabreakonitspolicytighteningandwithmoreroomforaratecut,thishasprovidedamplebreathingspaceforsomeofthecentralbankstomaintaintheircurrentpolicyrateandifnotreduceit.Besides,theUSDollarstrengtheningmomentumvis-à-visregionalcurrenciesisalsoexpectedtosoften.Onsuchabackdrop,Malaysia’s

macroeconomicfundamentalscontinuetoremainstrongdespitedomesticandexternalheadwinds.Theeconomyreversedthecourseofitsgrowthinthefinalquarterof2018togrowby4.7percentannuallyfrom4.4percentinthepreviousquarter,bringingthefullyeargrowthto4.7percent.Growthwassupportedbydomesticactivitiesaswellasexports.In2019,theMalaysianeconomy

islikelytoremainonasteadygrowthpath,supportedbyresilienceofprivateconsumptionandcontinuationofcivilengineeringprojectsapartfromrecoveryfromsupplysideshocks.Whiletheeconomymaynotbeassluggish,thereislittleoptimismthatitwillbeabletodobetterthanlastyear.Externalheadwindsanddomesticchallengesarekeychallengesareexpectedtoinfluencegrowthin2019.Leadingindicatorsarepointingtowardsaslowergrowthinthecourseoftheyear.Onthatnotethegrowthin2019wouldlikelybearound4.5percentsupportedbydomesticactivities.Withlowinflationenvironment,thereisincreasingroomforthemonetarypolicytoberelaxedduringtheyear.in2018didweighontheperformanceoftheeconomiesacrossAsia.AslowdowninChinawouldhaverippleeffectsacrossAsia,asitisamajortradingpartnerformostcountriesintheregion.Thatwouldalsoaffecttheregion’smarketconfidence.MosteconomiesinSoutheastAsiastartedtocoolinthesecondhalfof2018asUS-Chinatradetensionsescalated.

23review

CongratulationstoRetailBankingDivisionwhichhasemergedastheIdeathon2.0DivisionLeagueChampion!TheresultwasannouncedrecentlyduringtheFY20StrategyManagementMeetingatGrandDorsettSubangonTuesday,19February2019.Dato’SulaimanMohdTahir,GroupChiefExecutiveOfficer,AmBankGroup,accompaniedbyGohMeiLee,GroupChiefStrategicTransformationOfficer,didthehonourofpresentingthetrophytoJadeLee,theManagingDirectorofRetailBanking.RetailBankingwasdeclaredtheWinnerafter

recordingthehighestsubmissionsofinnovativeideasof23%.TheRunnerUpwenttoDigitalBankingandGroupIT&OperationsDivisionwithascoreof17%andinThirdPlacewasWholesaleBankingwithascoreof16%.Followingthewin,theDivisionLeague’sChampion

TrophywillbeplacedattheRetailBankingoffice,MenaraAmBankforaperiodofoneyear.Nextyear,RetailBankingwillbethedefendingchampiontokeepthistrophyunderIdeathon3.0.Ideathon2.0waslaunchedinSeptember2018to

inviteinnovativeideasfromAmBankersonthetopicsofWorkforceEfficiencyandGoGreen.Itwasaimedtogatherthoughtsandideasthatcanhelptodriveefficiencyandsustainabilitywhichwillultimatelybuild

aconnectedworkforceandefficientworkculture,acrosstheGroup.Anewjudgingelementwasintroducedunder

Ideathon2.0wherebythecontestwasmeasuredattheDivisionlevel,henceaptlycalledtheDivisionLeague.AsfortheIdeators,afterseveralroundsof

evaluationanddeliberationbytheSelectionManagementCommittee,threeAmBankerswerechosenastheTop3WinnerstobagaHUAWEIHonor9Litesmartphoneeach.TheTop3WinningIdeasweresubmittedby,firstly,

MuhammadNurAminbinHajiMuhamadJuharifromGroupComplianceonworkforceefficiencyandintroductionof“PointBasedSystemReward”.Secondly,SitiShalwanybintiYusofffromDigitalBankingandGroupIT&OperationsDivision,relatingtoGoGreen–onhowtoreducecarbonfootprintcausedbyATMreceiptssimplybytweakingthesequenceflow.Lastly,MahithaJaganathanfromGroupComplianceonhowAmBankcanincreasecarauctionsalesbygoingvirtualthroughe-BidderSystem.WelldonetoalloftheIdeators!Stepswillbetaken

toeventuallyimplementthesewinningideastohelptheGroupdrivesefficiencyandsustainabilitywhichwillultimatelyincreaseconnectivityamongsttheworkforceandimproveworkcultureefficiency.AbigThankYoualsogoestoeveryonewhohave

participatedinthiscontestandmostimportantly,forcomingforwardtocontributetheirownoriginalideas.DolookoutforthenextseriesofIdeathontowin

moregreatprizes!

Ideathon 2.0 was launched in September 2018 to invite innovative ideas from AmBankers on the topics of Workforce Efficiency and Go Green

24 happenings

The Top 3 Ideators (R-L): Muhammad Nur Amin bin Haji Muhamad Juhari, Siti Shalwany binti Yusoff and Mahitha Jaganathan.

Retail Banking Emerges as the Ideathon 2.0 Champion in the Division LeagueL-R: Dato’ Sulaiman Mohd Tahir, Group Chief Executive Officer, AmBank Group, accompanied by Goh Mei Lee, Group Chief Transformation Officer, presenting the trophy to Jade Lee, Managing Director of Retail Banking. Looking on is Sherrie Loo, Head of Customer Care.

KurniaInsurans(Kurnia),aleadingbrandingeneralinsurance,launchedofitsCSRRoadSafetyCampaign,‘Program Adiwira Topi Keledar’whichcarriesthetheme‘Hero yang Hebat adalah Hero yang Selamat!’Throughthisprogramme,1500limitededitionsafety

helmetswillbegivenawaytoprimaryschoolstudentsacross30selectedprimaryschoolsintheKlangValley,JohorBahruandKotaBharu.Theprogrammewillkick-startwithanArtColouringContestwhereprimaryschoolstudentswilldesigntheirownhelmetsandonewinnerfromeachschoolwillbeselected.Thewinningdesignwillthenbeadaptedtothecustommadehelmetsdistributedtotheneedypillionridersoftheseschools.AbrandnameunderAmGeneralInsuranceBerhad

(AmGeneral),Kurniaaimstopromotegoodandsafebehavioursontheroadbyhighlightingtheimportanceofputtingonthemotorcyclehelmetstoprimaryschoolstudents.ThisisalsoalignedtoAmGeneral’sPurpose,whichis“TohelpmakeMalaysiaaSaferPlace”.ThisprogrammeiscollaboratedwithMyPerintisasapartnertoconnectwiththeMinistryofEducationandEducationDistrictOfficetoreachouttotheselectedprimaryschools.TheMalaysianInstituteofRoadSafetyResearch

foundthatonly15%ofMalaysianchildrenwearpropersafetygearwhenridingonmotorbikeswiththeirparents

toschool.“Thismeansthateveryday,childrenareatrisktravellingtoandfromschool.Thebehavioralchangecouldnothappenfastenough,thereforewehopebythisinitiative,wecanmakerealchangeininstillingpositivebehaviorearlywithschoolchildrenontheimportanceofmotorcyclehelmets.”saidDerekRoberts,ChiefExecutiveOfficerofAmGeneral.Thehelmetcolouringcontestwillrunfrom15March

2019to29March2019,followedbytheselectionofbestdesignsfromtheparticipatingschools.ThecustomdesignedhelmetsaretargetedtobeoutontheroadbyJuly2019.

Kurnia Insurans launches CSR Programme ‘Adiwira Topi Keledar’ in 30 primary schools

25happenings

1500 limited edition safety helmets will be given away to primary school students across 30 selected primary schools in the Klang Valley, Johor Bahru and Kota Bharu.

AmBankGrouphosteditsChineseNewYear2019openhouseattendedbyapproximately1,500peoplecomprisingclients,guestsandmembersofthemediaonFriday,15February2019.

TheAmBankGroupChineseNewYearOpenHouseheldataprominentlocalhotelinKualaLumpurwashostedbyTanSriAzmanHashim,Chairman,AmBankGroup,withthepresenceof

BoardMembersandSeniorManagementfromtheGroup’ssubsidiariessuchasRetailBanking,InvestmentBanking,WholesaleBankingandInsurance.“OurChineseNewYear

OpenHouseisanannualoccasionwhereweareabletomeet,fosterandstrengthenourrelationships

withourclientsand,atthesametime,usherinthelunaryeartogether,asAmBankers.Theopenhouseisanappreciationtoourvaluedclientsfortheirsupportandtrustinbankingwithus,”saidTanSriAzman.OtherthanenjoyingtheusualChinese

NewYeardelicacies,therewasalsoYeeSangwhichsymbolisesabundance,prosperityandvigor.TheguestswereentertainedbyaLionDancePerformancebytheworld-champions,KunSengKengLionandDragonDanceAssociationfromMuar,JohortogetherwithsongsperformedbyTheSingingShopandtheUMBigBandwithTanSriAzman.

AmBank Group Hosts

Chinese New Year 2019 Open House

“Our Chinese New Year Open House is an annual occasion where we are able to meet, foster and strengthen our relationships with our clients.”

Tan Sri Azman Hashim, Chairman, AmBank Group

26 happenings

AmBank Group Hosts

Chinese New Year 2019 Open HouseFrom left (front row) – Pauline Cham, Head, Group Legal, AmBank Group, Jade Lee, Managing Director, Retail Banking, AmBank (M) Berhad, Goh Wee Peng, Chief Executive Officer, AmInvest, Syed Anuar Syed Ali, Executive Vice President, Group Corporate Communications & Marketing, AmBank Group, Datuk Iswaraan Suppiah, Group Chief Operations Officer, AmBank Group, Dato’ Sulaiman Mohd Tahir, Group Chief Executive Officer, AmBank Group, Tan Sri Azman Hashim, Chairman, AmBank Group, Raja Teh Maimunah Raja Abdul Aziz, Managing Director, Wholesale Banking, AmBank Group, Jeroen Thijs, Group Chief Risk Officer, AmBank Group, Goh Mei Lee, Group Chief Transformation Officer, AmBank Group, Penelope Gan, Group Chief Human Resource Officer, AmBank Group, Faradina Mohammad Ghouse, Group Chief Compliance Officer, AmBank Group and Koid Phaik Gunn, Group Company Secretary, AmBank Group.

AmBank Group Hosts

Chinese New Year 2019 Open House

happenings 27

AmBank Group Hosts

Chinese New Year 2019 Open HouseFrom left (back row) – Ramzi Toubassy, Chief Executive Officer, AmMetLife Insurance Berhad, Seohan Soo, Chief Executive Officer, AmInvestment Bank Berhad, Noor Azam Mohd Yusof, Chief Executive Officer, AmMetLife Takaful Berhad, Christopher Yap, Managing Director, Business Banking, AmBank Group, Shamsul Bahrom Mohamed Ibrahim, Group Chief Internal Auditor, AmBank Group and Jamie Ling, Group Chief Financial Officer, AmBank Group.

28

Kelab AmBank Group Hosts New Year Dinner in Northern Region

Jade Lee, Managing Director, Retail Banking, AmBank (M) Berhad (centre) with KAG members in Grand Alora Hotel, Kedah.

Morethan100KelabAmBankGroup(KAG)membersjoinedtheNewYearcelebrationonFriday,11January2019atGrandAloraHotel,Kedah.SyedAnuarSyedAli,ExecutiveVicePresident,AmBankGroupsaid,“Thiscelebrationistogivesustheopportunitytogettoknowourcolleagues,particularlythoseindifferentdepartments.Thisway,wewillbeabletolearnmoreabouttheGroupasawholeaswellasinculcatethecultureofconnectivityandfamilyspiritofAmBankGroupinallofus.”

Kelab AmBank Group HostedChinese New Year Open HouseAmBankGroupthroughitssportsclubKelabAmBankGroup(KAG)celebratedChineseNewYearwithitsstafffromSouthernRegion.ThecelebrationwasheldonFriday,22February2019inTroveHotel,JohorBahru.Themembers,bothmenandwomen,wereinjoyousandcelebratorymoodastheyturnedupdressedintheirbestChineseNewYearoutfitsandcostumes.

Kelab AmBank Group HostedChinese New Year Open House

29

Syed Anuar Syed Ali, Executive Vice President, Group Corporate Communications and Marketing, President of KAG (fifth from left) and Shaiful Bahri Mohd Yaacob, Regional Director, Retail Banking, AmBank (M) Berhad with AmBank staff at the KAG Chinese New Year Open House.

Jade Lee, Managing Director, Retail Banking, AmBank (M) Berhad (centre) with Southern Region staff.

KelabAmBankGroup(KAG)incollaborationwiththeNationalBloodCentreorganisedaBloodDonationDriveattheCapitalCityEntertainmentMallinTampoi,JohoronSaturday,25February2019.“Thisisthesportsclub’sfirstblooddonationdriveforthe

year2019,asAmBankGroupcontinuestoplayitspartasacaringcorporateorganisation,byhelpingtoraiseawareness

ontheimportanceofdonatingblood.WeaimtoencouragemoremembersofthepublictocomeforwardasblooddonorsandhelptheJohorBloodBank,”saidSyedAnuarSyedAli,President,KelabAmBankGroup,whoisalsoExecutiveVicePresident,GroupCorporateCommunicationsandMarketing,AmBankGroup.

Kelab AmBank Group Blood Donation Drive 2019 in Johor

30

Syed Anuar Syed Ali, President, Kelab AmBank Group (second from right) presenting token of appreciation to the donors at Kelab AmBank Group Blood Donation Drive which was held at the Capital City Entertainment Mall in Johor Bahru recently. Looking on is Zahari Ridzuan, Area Manager, Auto Finance, AmBank (far right) and Chua Kim Lian, Branch Manager, AmBank (standing, far left).

Syed Anuar Syed Ali (second from right), Shaiful Bahri Mohd Yaacob, Senior Vice President, Regional Management, AmBank (M) Berhad (far right), Heida Hew, Vice President, Kelab AmBank Group (standing second from left), Chua Kim Lian (standing, centre) and Md Hifni Abd Samad, Branch Manager, AmBank (far left) with the participating donors at KAG Blood Donation Drive.

KAG Go Kart Challenge 2019KAG Go Kart Challenge 2019

Men A1.FarisanAzmibinAbuBakar

2.NornikmanQudrat3.FahmybinMohdKhalid

Men B1.NarulAzmanMahamadYusuf

2.JoharibinAbuBakar3.MohdAzrulbinAbdulRazak

Ladies A1.SuhailabintiShardin2.ZuriatiMansur3.NikRohaaizatbintiMdIdris

Ladies B1.SyazwinabintiAhmad@AhmadSowi

2.SuhanabintiIsmail3.NorAsmalinabintiMohdRezal

Team Event1.BirdBlur2.TeamHPBiz3.LayaanzCorner

OnSaturday,2February2019,KelabAmBankGrouphelditsKAGGoKartChallenge2019atSpeedwayPLUSCircuitinUSJ,SubangJaya.Totalof100participantstookpartinincludingoneteamfromtheseniormanagement.

Winners

31

Syed Anuar Syed Ali (left) with the winners from Men’s Category.

Syed Anuar Syed Ali, President of KAG (centre) with the KAG Go Kart Challenge 2019 participants at the PLUS Circuit in USJ, Subang Jaya.

Syed Anuar Syed Ali with the winners from Ladies Category.

Syed Anuar Syed Ali with the winners from Team Category.

“KAG will continue to organise such activities whereby most of our members are able to participate and foster teamwork and comradeship amongst us.”Syed Anuar Syed Ali, President, KAG and Executive Vice President, Group Corporate Communications and Marketing, AmBank Group

KelabAmBankGroup(KAG)forthefirsttimehelditsFoodHuntinKlangValleyintwodifferentsession.ThefirstfoodhuntwasheldonSaturday,19January2019andduetooverwhelmingresponsefromKAGmembers,thesecondfoodhuntwasheldonSaturday,6April2019.“KAGFoodHuntwasheldforthefirsttimeandwehavereceivedpositivefeedbacksfromtheKAGmembers.KAGwillcontinuetoorganisesuchactivitieswherebymostofourmembersareabletoparticipateandfosterteamworkandcomradeshipamongstus,”

saidSyedAnuarSyedAli,President,KAGandExecutiveVicePresident,GroupCorporateCommunicationsandMarketing,AmBankGroup.

32

Participants taking the public transport as part of the Food Hunt Challenge.

Kelab AmBank Group’s Food Hunt Challenge

Syed Anuar Syed Ali, President, KAG and Executive Vice President, Group Corporate Communications and Marketing, AmBank Group presenting prizes to winners dwuring the first Food Hunt on Saturday, 19 January 2019.

33

KAG members enjoying their satay sticks at one of venues during the first Food Hunt.

Food Hunt 2 participants at the starting point on Saturday, 6 April 2019.

Kelab AmBank Group’s Running Clinics with Running Plan Malaysia

Syed Anuar Syed Ali, KAG President & Executive Vice President, AmBank Group (standing, sixth from left), with KAG members having a good time after the first successful clinic on Wednesday, 6 March 2019 at KLCC Park.

KAG members having fun during the warm-up, stretching, running and cooling down exercises with Running Plan Malaysia.

KelabAmBankGroup(KAG)iscurrentlyhavingaseriesofsix-weekRunningClinicsforitsmemberswithRunningPlanMalaysia. whichwasco-foundedbyexperiencedandcompetitiverunnersMarkWilliamsandJeffreyRoss,specialisesinprovidingawiderangeofcustomisedtrainingplansforrunnersofallabilities.TheobjectivesofKAGinorganisingtheRunningClinics

aretopromoteahealthylifestyleamongstKAGmembers,helpthemimprovetheirrunningtechniquesandpromoteconnectivityamongstAmBankersbyforgingnewfriendshipswithotherlike-mindedKAGmembers.Atthesametime,thisisalsoconductedwiththeviewoforganisingourveryownAmBankRuninthefuture!ThefirstsessionoftheRunningClinicskickedoffon

Wednesday,6March2019atKLCCPark.Theone-hoursessionstartedat6.30pmandendedat7.30pm.TheRunningClinicstakeplacetwotimesperweek,i.e.everyMondayandWednesdaywith30participantsineachclass.Theworkoutsarespecificallydesignedtosuitboth

beginnersandexperiencedrunners,whichcanbeadaptedtotheabilityandfitnesslevelofeachmembertoensure

thateverybodyiscomfortable,yetchallenged!Thevarioustechniquesthatparticipantswilllearninthissix-weekprogrammeincludeStructuredFartlek,HillSprints,100mVariations,LongHills,300mBursts,aswellas3kmTimeTrialandCircuits.Forthosewhoareinterestedtojoinin,thenextbatchof

RunningClinicsissettotakeplaceafterHariRayaAidilfitri2019.So,staytunedfortheregistrationupdate!

34

Launch of Zumba Class at Wisma AmFIRST, Kelana Jaya

35

Kelab AmBank Group (KAG)38th Annual General Meeting

Front row (L-R): Azli Abdul Jamil (VP, Wholesale Coverage), Abd Majid Bin Idris (VP, AmGeneral Insurance), NurKith Cheeng (VP, AmMetLife Insurance Berhad), Shahrul Hisham Mohd Tahir, (VP, Retail Banking) Ashraf Mohamed, Honarary General Secretary, Syed Anuar Syed Ali, President, KAG, Wan Hasmidar Wan Husin, Honorary Treasurer, Heida Hew, (VP, Group Shared Services) and Nor Aniza Omar, Exco.Back row (L-R): Abd Rasyid Mohd Yusof, Assistant Honorary Treasurer, Sandeep A/L K. Vijaya Bhaskaran, Auditor, Teh Xin Yi, Auditor, Mohamed Radzi Mohamed Ali, GCCM Representative, Siti Noor Rizan Ibrahim Khan, Exco, Mohammad Hazri Bin Kasbi, KEPPA Representative, Omar Abdul Rahman, Exco, Lee Lei Siew, Exco, Osman Elias Exco, and Harma Rabihah Kahar, IT Coordinator, KAG.

Datuk Iswaraan Suppiah, Group Chief Operations Officer, AmBank Group (centre) and Syed Anuar Syed Ali, KAG President & Executive Vice President, AmBank Group (sixth from right) giving the thumbs up after officially launching the first Zumba Class at Wisma AmFIRST, witnessed by Anthony Chin, Head of Group Digital Experience Innovation & Culture (ninth from right), Elango Kuppusamy, Head of Group Operations who is also KAG Representative for Wisma AmFIRST (eight from right), Heida Hew, KAG Vice President – Group Shared Services (far left) and other KAG members. Far right is Aliparviz Mansouri, the resident instructor for the KAG Zumba Class at Wisma AmFIRST.

Zumba performance by KAG members.

MohammedZakiZakariaisaself-taughtartistfromasmallvillageinBesut,Terengganu.Bornin1963,hispassionandraretalentforartemergedatatenderyoungage.Whilehewasstillexploringthemanyareasofart,Zakipursuedarchitectureatalocalpolytechnicandobtainedhisbasictraininginafieldwhichlatershapedhisdirectioninthecreativeworldofpainting.Finallyin1993,Zakilefthisprofessiontofulfilhislifetimeambitionasafull-timeartist.Amongsthisfavouritethemesarenature,floraandfauna,thestudyoflivingthings,architecture,historicalbuildings,Malayheritage,andperspectives.Asanartist,Zakiiswellversedinusingoilpaintandacrylictoexpresshisvision,buthepersonallypreferstousewatercolour.Tohim,theuseofwatercolourstoelaboratelyexpresshisthoughtsandideashavealwaysproducedexcellentresults.Todate,ZakihasparticipatedinanumberofGrandArtExhibitionsalloverKlangValley.

Mohammed Zaki Zakaria

36 painting gallery

Title: Tambunan Waterfall (Sabah)

Medium: Water Colour

Measurement: W14cm x H20cm

Title: Pemandangan Sungai Malaysia

Medium: Water Colour

Measurement: W15cm x H12cm

AburnishedgoldcolouredbrasscamelwithintricatepatternandchinesecharactersonsaddlebagspurchasedbyTanSriAzmanHashiminHoChiMinhCity,Vietnam.

Size:21cm(H)x23cm(L)

Location:BankingHall,GroundFloorMenaraAmBankJalanYapKwanSengKualaLumpur.

Agoldcolouredbrasssinglehumpstandingcamelwiththedesignofitsblanketinredandbluechiselledonitssides.

Size:8cm(H)x10cm(L)

Location:ConferenceRoomLevel48,MenaraAmBankJalanYapKwanSengKualaLumpur

37camel collection

ambankgroup.com

@AmBankMalaysia @AmBankMY @AmBankMY