EMPLOYMENT AND BENEFITS

We provide benefits that include non-wage compensation in addition to monthly salaries for all full-time employees in
Malaysia. These benefits include:

EMPLOYEES’ SHARE OPTION SCHEME

MEDICAL BENEFITS

EMPLOYEES GROUP INSURANCE COVERAGE

DENTAL AND OPTICAL

FLEXIBLE WORK ARRANGEMENTS

FITNESS MEMBERSHIP

PRIVATE RETIREMENT SCHEME

PROFESSIONAL DEVELOPMENT

VARIOUS ALLOWANCES

VARIOUS LEAVE INCLUDING PILGRIMAGE LEAVE

ANTI-DISCRIMINATION AND HUMAN RIGHTS

Respect for human rights is of fundamental importance to us. We strive to respect and promote human rights in our relationships with our employees, business partners, vendors and clients in accordance with the guiding principles set by our regulators.

We do not practise discrimination in our recruitment and selection efforts. There were no human rights grievances or incidents reported in the year 2019 and in the last three (3) years.

We do not discriminate against:

  • Gender
  • Race/ Ethnicity/ Nationality
  • Social background
  • Religion
  • Family responsibilities, including pregnancy
  • Disabilities

As an advocate of fair and meritbased practices, we are also against discrimination in employment decisions such as hiring, promotions or redundancy, as well as in working conditions such as working hours, training, remuneration and social security.

DIVERSITY AND INCLUSION

We embrace diversity and inculcate an inclusive workplace culture as we strive to develop a diverse workforce.

Our workforce strength has expanded by 6.5% since 2017, where 99.9% of our employees are consist of local talents. Foreign talent is hired for selected positions that require niche skills and knowledge.

In 2019, we had 1,115 full-time staff compared to 1,080 in 2018 and 1,057 in 2017.

The following diagram illustrates Kenanga Group’s workforce strength according to gender, women’s representation in management, ethnicity, age and number of executives and non-executives:

Workforce Strength

Employee Demographics

Age Group

Ethnicity

Women in Management

(Senior Vice Presidents and above)

TALENT MANAGEMENT AND CAREER DEVELOPMENT

We prioritise our employees’ professional growth and ensure they are well-equipped with the knowledge and skills needed in the competitive financial industry.

We continue to strategically design the Group’s training and development initiatives in line with our business needs, regulatory requirements and industry competency standards, as well as people development principles. Through focused prioritisation of training programmes, we are able to ensure that employees receive relevant and impactful courses that contribute to the Group’s business sustainability and achieve individual and professional aspirations.

Our holistic training and development programmes encompass the following four (4) categories:

01
REGULATORY

Compulsory courses for individuals to ensure compliance with regulatory requirements and corporate governance.

02
LEADERSHIP

Courses that equip managers with leadership skills and qualities to facilitate the execution of the Group’s strategy through building alignment, winning mindshare and developing the capabilities of staff.

03
FUNCTIONAL

Technical and/ or practical-based courses that sharpen individual technical skills and competencies, including accredited courses with certifications or professional qualifications warranted by job roles.

04
PERSONAL
EFFECTIVENESS

Courses that provide individuals with tools to enhance personal competencies through selfimprovement and making the best of their resources.

The average training hours per year per employee

In addition to learning and development initiatives, we conduct talent mapping to identify talents and potential candidates with leadership skills to strengthen our workforce and enhance our succession plan. The qualities we seek include having the ability to drive results, innovation and change; customer-centric focus; ethics and risk consciousness; and having the ability to collaborate and build relationships, as well as communicate effectively.

As part of building a high performance culture, we have established a robust performance management system based on the Balanced Scorecard with Key Performance Indicators and annual performance objectives for every employee in the organisation. We recognise employees contribution and performance through short-term incentives such as annual performance bonus, sales incentives and commission plans, as well as long-term incentives such as employees’ share option scheme.

We conduct a monthly attrition analysis to identify areas of improvement and regularly benchmark our compensation and benefits to market to ensure that we remain competitive in attracting and retaining talents. In 2019, our voluntary attrition rate of 11.75% remained lower than the banking industry of 15%.

Employee Engagement

We aim to create a sense of belonging for our employees through continuous communication and engagement efforts. Some of the platforms and channels to achieve this are:

Method Description Frequency
E-mailer Branded “K-News”, this internal channel shares Group information regarding business achievements, announcements and product-related news. At least twice a month
On-ground events On-ground events are held to engage with employees. Some events, such as our annual Family Day, are extended to family members as well. At least five (5) events a year
Employee volunteerism and community outreach In giving back to the community, employees are encouraged to participate in community initiatives such as charity runs, donation drives, blood donation campaigns and awareness programmes. (please turn to pages 95 to 98 for more details on Employee Volunteerism and Community Outreach). At least four (4) events a year
Posters To cater to employees without access to a computer, we display posters to communicate latest announcements, product updates and events. At least once a month
Social media platforms We publish events and news on our corporate website, as well as on Facebook, Instagram and LinkedIn throughout the year. Ongoing
Surveys We conducted a “Survey on Ethics and Integrity Culture at Work” to gauge the views and perceptions of employees on policies and practices related to certain aspects of ethics and integrity in the Group. More information on this can be found in the Ethics and Compliance Statement on pages 60 to 68 of this Annual Report. Ongoing

EMPLOYEE VOLUNTEERISM AND COMMUNITY OUTREACH

Throughout the decades that Kenanga Group has been operating in the country, we have always balanced commercial priorities with giving back to the local communities we operate in.

While our overarching focus is to lend aid to the underserved segment, one of our long-standing priorities is the support of social enterprises that are set up to further social causes in a financially sustainable manner.

We run campaigns and donation drives and participate in charity events throughout the year. Some highlights are listed below:

#KenangaGivesBack to Dialogue in the Dark Malaysia (DID)

The visually impaired at the Dialogue in the Dark Malaysia (“DID”)

Held from 25 January to 8 February 2019 in Kenanga Tower, this initiative aimed to raise funds for the visually impaired at DID. This donation drive saw over 75 contributors comprising employees, remisiers and clients.

Kenanga Group also supported the Fine Dining in the Dark programme and purchased 20 tickets to the Concert in the Dark, which were among the many activities at DID’s inaugural Art Festival in Kuala Lumpur.

The festival showcased the unique artwork, creations and distinctive talents of differently-abled artists and entrepreneurs. It aimed to create awareness of the fight against avoidable blindness and raise funds to equip the visually impaired.

Kenanga has been supporting DID in their various fundraising activities since their inception in 2012. DID was established to engage with and equip differentlyabled people with the relevant skills needed to attain self-sufficiency to reduce poverty in Malaysia.

#KenangaGivesBack to Silent Teddies Bakery

The hearing-impaired at Silent Teddies Bakery

Held in conjunction with Hari Raya Aidilfitri from 28 May to 24 June 2019 at Kenanga Tower, the initiative aimed to raise funds for the Silent Teddies Bakery. Kenanga has been supporting the Silent Teddies Bakery since 2012.

This year, we continued to support them via the purchase of their baked goods for our Hari Raya celebrations, as well as rallying cash donations internally.

Through employee and corporate purchases, we ordered over 800 boxes of cookies. We also received 64 cash donations, channeled to help improve their training facilities, equipments and materials.

#GiveBlood Blood Donation Drive

The National Blood Bank

An annual drive that we have been organising since 2012, our two (2)-day event on 19 and 26 June 2019 at Kenanga Tower saw 138 volunteers including employees, remisiers and tenants. 95 of them successfully donated blood.

The Bursa Bull Charge 2019

Yayasan Bursa Malaysia’s charitable organisations comprising 26 beneficiaries nationwide

Seven (7) employees represented Kenanga Group in this annual run that is aimed at raising funds for Yayasan Bursa Malaysia to support beneficiaries that focus on entrepreneurship and financial literacy.

Held on 14 November 2019 at Exchange Square in Kuala Lumpur, the event was also intended to encourage employees to adopt a healthy lifestyle through running and exercising in addition to creating networking opportunities. Since its inception, more than RM9.7 million has been disbursed to over 142 beneficiaries for charitable and other causes.

The Edge KL Rat Race 2019

The Edge Education Fund

Six (6) employees took part in the race that was held to raise funds for The Edge Education Fund and to unite the corporate community in a noble cause. The funds were also to support The Edge Education Foundation’s promotion of English and financial literacy programmes. To date, the run has raised about RM23 million for more than 200 registered charitable organisations and NGOs.

The event was held at Perdana Botanical Garden in Kuala Lumpur on 27 November 2019.

#KenangaGivesBack to Pusat Jagaan Anak Yatim An-Najjah via Backto-School Donation Drive

The residents of Rumah Anak Yatim An-Najjah

Kenanga Group raised funds for 50 children from the orphanage in a back-to-school programme.

Aimed at reducing the financial burden of the orphanage, the programme was also an opportunity for Kenanga employees to contribute collectively to the home.

41 employees contributed to this programme, which was held from 24 December 2019 to 3 January 2020.

ANTI-COMPETITION

The Group strongly believes in competing fairly and ethically in the marketplace, in order to benefit all stakeholders. It competes strictly on the merits of its products and services and makes no attempt to restrain or limit trade. It strictly adheres to Malaysia’s Competition Act 2010.

In accordance with the Group Competition Act Compliance Policy, employees and directors are prohibited from engaging in any anti-competitive practices in their dealings with all third parties, including the Group’s competitors, customers and vendors.

More information on this can be found in the Ethics and Compliance Statement on pages 60 to 68 of this Annual Report.

CUSTOMER PRIVACY AND CYBER SECURITY

Customer privacy and cyber security are vital for the sustainability and business growth of the Group as we commit to digitalisation and innovation.

The Group has, over the years, been consistent in strengthening its cyber security posture. Our Group Digital, Technology and Transformation Department has a dedicated team of cyber security professionals to operate the Information Technology Governance and Security section. The team formulates and implements the Group’s cyber security roadmap against the backdrop of evolving cyber threats.

We continue to expand and focus our resources on data security, information assets and advanced cyber threats to protect our endpoints and employee workspaces against cyber security threats. Cultivating a culture of cybersecurity awareness among employees is the key defence against both internal and external threat factors.

As the technology landscape continues to shift towards Cloud-based hosting and software-as-a-service solutions, the team will leverage both existing and emerging cloud security defences to continue delivering uncompromised, secure and trusted services to our customers.

In 2019, we enhanced our cyber security by:

  • Formalising a Group Confidential Information Policy to consolidate multiple regulatory requirements into a single document for efficiency of compliance and reference.
  • Investing in adequate technology to protect customer data against leaks or breaches.
  • Strengthening the Group’s data governance by formalising appropriate best practices into robust policies to complement business, which meet regulatory requirements.
  • Establishing an incident escalation framework to mitigate the risk of data leaks or breaches.
  • Continuing to enhance our cyber security by providing adequate and relevant training to all data officers and staff annually.

CUSTOMER SATISFACTION

Enhancing customer experience is at the core of everything we do. As part of managing customer satisfaction, we have augmented our digital channels to enhance service levels and improve process efficiency. In addition to our customer helpline and branches nationwide, customers are also able to provide feedback and raise queries or concerns directly via our official websites, including our subsidiaries’ sites.

The Group’s social media presence includes Facebook, Instagram and Linkedin. With the improvements made to the social team’s standard operating procedure, 82% of enquiries through social media are escalated to the relevant department within 24 hours.

RESPONSIBLE MARKETING

We continuously ensure that our clients, investors and customers are well-informed at all times. All required information for the investing public (comprising existing and potential clients) is disclosed in the respective product-disclosure documents such as prospectuses and information memoranda. The disclosures include product highlight sheets that adhere to the Securities Commission Malaysia (“SC”) requirements. Our marketing and promotional materials are also guided by our Advertising Policy, which is governed by regulatory requirements.

QUALITY

A priority we take seriously to ensure long-term business growth is quality management to ensure we deliver highly consistent products and services that meet customer and regulatory requirements. In 2019, we were awarded numerous accolades across all our key business areas, validating our commitment in this respect.

The Awards include:

Bursa Broker and Salesforce Reward Program Awards 2019
  1. Highest Number of New Account Opened (Top 5)
  2. Highest Traded Value from New Account Opened (Top 5)
  3. Highest Re-Activation of Inactive Accounts (Top 5)
Bursa Excellence Awards 2018
  1. Best Trading Participants Equity & Financial Derivatives (Champion)
  2. Best Institutional Derivatives Trading Participants
  3. Best Remisier (Champion)
  4. Best Overall Derivatives Trading Participants (1st Runner-up)
  5. Best Institutional Equities Participating Organisation — Investment Bank (2nd Runner-up)
  6. Best Retail Equities Participating Organisation — Investment Bank (2nd Runner-up)
Annual Alpha Southeast Asia Deal & Solution Awards 2019
  1. Best Equity Deal/ IPO in Malaysia, Joint Bookrunners & Joint Underwriters (Leong Hup International)
Refinitiv Lipper Funds Awards 2020
  1. Kenanga Diversified Fund (Mixed Asset MYR Flexible — Malaysia Pension, 3 years)
  2. Kenanga Diversified Fund (Mixed Asset MYR Flexible — Malaysia Pension, 5 years)
  3. Kenanga Syariah Growth Fund (Equity Malaysia — Malaysia Islamic, 10 years)
  4. Kenanga Investors Berhad (Best Equity Award — Malaysia Islamic)
  5. Kenanga Investors Berhad (Best Mixed Assets Award — Malaysia Pension)
Global Islamic Markets Refinitiv Lipper Fund Awards 2020
  1. Kenanga Syariah Growth Fund (Malaysia Best Equity over 10 years)
Asia Asset Management’s 2020 Best of the Best Awards
  1. Malaysia Best House for Alternatives
  2. Malaysia Best Equity Manager
  3. Malaysia CIO of the Year
  4. Malaysia Fund Launch of the Year
FSMOne Recommended Unit Trusts 2019/ 2020
  1. Kenanga Growth Fund — Most Outstanding Unit Trust for 10 Years (Champion)
  2. Kenanga Growth Fund — Core Equity (Malaysia)
  3. Kenanga OnePRS Conservative Fund — Private Retirement Scheme (Conservative)
iFAST Awards Malaysia 2019
  1. Kenanga Growth Fund — Best-selling Unit Trust 2018
  2. Kenanga OnePRS Growth Fund — Best-selling Private Retirement Scheme 2018
  3. Kenanga OnePRS Conservative Fund — Best-selling Private Retirement Scheme 2018
KLIFF Islamic Finance Awards 2019
  1. Kenanga Syariah Growth Fund — Most Outstanding Islamic Fund Product
Women in Finance Asia Awards 2019
  1. CEO of The Year
CSR Malaysia Awards 2019
  1. CSR Award in the Investment Bank category
The Marketing Events Awards 2019
  1. Best Business Event, Internal (Gold) — Campaign: Kenanga Founder’s Day
  2. Best Business Event, Internal (Bronze) — Campaign: Zero-Waste Your Lifestyle with #GreenAtWork

Kenanga’s Global Market Outlook Seminar 2019.

FINANCIAL LITERACY

We continue advancing financial literacy through various avenues ranging from workshops, roadshows and exhibitions to seminars and webinars. Subjects range from market outlook, product launches and workshops for novice traders to sessions on technical analysis for the more seasoned investors.

Throughout the year, these sessions were held at various geographical locations nationwide to cater to our growing client base and the investing public at large. The targeted on-ground engagement sites included universities and corporate offices.

An overview of the Group’s activities is presented below:

Subsidiaries/ Business Unit Types of Forum No. of Sessions Location
Kenanga Investment Bank Berhad — Equity Broking Seminars, workshops, roadshows 32 Kuala Lumpur, Selangor, Penang, Johor, Pahang, Sabah, Sarawak
Kenanga Investment Bank Berhad — Structured Warrants Seminars, workshops, roadshows, trade group meetings 38 Kuala Lumpur, Selangor, Penang, Ipoh, Kuantan, Malacca, Kuching, Bintulu, Miri, Seremban, Kuala Terengganu
Kenanga Investors Berhad Workshops, roadshows, exhibitions, seminars, webinars 167 Selangor, Kuala Lumpur, Melaka, Negeri Sembilan, Johor, Perak, Kedah, Pahang, Penang, Sabah, Sarawak
Kenanga Futures Sdn Bhd Webinars, workshops, seminars, conferences 47 Kuala Lumpur, Selangor, Sarawak, Sabah, Malacca, Negeri Sembilan, Pahang, Perak, Johor and Penang, and Nationwide via Webinars