Corporate responsibility is the key element to attain sustainable growth. Guided by the Sustainability principles of Economic, Environment and Social, the RHB Banking Group’s sustainable corporate practices underscore our commitment to growing profitably in a responsible manner. We believe that as we proactively provide a wider perspective of our business that goes beyond mere financial performance, we are offering stakeholders the opportunity to gain better insights into the intrinsic value of RHB and our impact on our marketplace and society.
Maintaining responsible practices involves self-regulating our behaviour and taking full responsibility for the impact of our practices and policies. Internally, we continue to roll out a range of control measures, while externally, we have set up systems and education programmes to ensure responsible business processes.
The Group will continue to embed on the following throughout its operations region-wide:-
As at 1 June 2018, there are eight (8) Directors on the board of RHB Bank Berhad (“RHB Bank”), of which four (4) of them are Independent Directors (50%). This is in line with Bank Negara Malaysia’s current regulatory requirements of having at least half of the Board members must be Independent Directors and the maximum tenure is now set at nine years.
RHB Bank Board is headed by Tan Sri Azlan Zainol, an Non-Independent Non-Executive Chairman. Dato’ Khairussaleh Ramli, the Group Managing Director/Chief Executive Officer is the only Executive Director on the board.
In terms of boardroom diversity, there are currently two women Directors, namely Tan Sri Dr. Rebecca Fatima Sta Maria and Ms Ong Ai Lin on the board of RHB Bank, as well as a Foreign Director, namely Mr Mohamed Ali Ismaeil Ali AlFahim and a Senior Independent Non-Executive Director (SINED), namely Tan Sri Saw Choo Boon.
The boardroom profile also includes one (1) Director who is less than 50 years old and two (2) Directors who are more than 70 years old, while the rest are between 50-70 years old. In accordance with the new Companies Act 2016 provision, no ceiling is imposed on the age limit for the Directors to serve RHB Banking Group.
Overall, the Board consists of four (4) Independent and Non-Executive Directors (INEDs), three (3) Non-Independent and Non-Executive Directors (NINEDs) and one (1) Executive Director (ED), as follows:
|No.||Name of Director||Designation||Age|
|i||Tan Sri Azlan Zainol||Non-Independent Non-Executive Chairman||68|
|ii||Tan Sri Saw Choo Boon||Senior Independent Non-Executive Director||72|
|iii||Abdul Aziz Peru Mohamed||Independent Non-Executive Director||70|
|iv||Tan Sri Ong Leong Huat @ Wong Joo Hwa||Non-Independent Non-Executive Director||74|
|v||Mohamed Ali Ismaeil Ali AlFahim||Non-Independent Non-Executive Director||42|
|vi||Tan Sri Dr Rebecca Fatima Sta Maria||Independent Non-Executive Director||61|
|vii||Ong Ai Lin||Independent Non-Executive Director||64|
|viii||Dato’ Khairussaleh Ramli||Group Managing Director/Chief Executive Officer||51|
RHB Bank has always in support towards the national agenda to achieve the target of at least 30% women on the Board of Directors by 2020. Tan Sri Dr Rebecca Fatima Sta Maria and Ms Ong Ai Lin joined on the board of RHB Bank effective 1 August 2016 and 1 July 2017 respectively. Previously, Datuk Wira Jalilah Baba served as the woman director of the holding company from 1 May 2012 to 30 January 2014.
At the Group level, Datin Sri Khamarzan Ahmed Meah has been serving RHB Bank (Labuan) Ltd, a wholly-owned subsidiary of RHB Bank, as Director since 15 March 2005 until 27 October 2016. Three (3) women directors namely Tan Sri Dr Rebecca Fatima Sta Maria, Datuk Nozirah Bahari and Dato’ Darawati Hussain served RHB Investment Bank Berhad’s Board as Independent Non-Executive Directors from 6 December 2016, 2 January 2017 and 1 September 2017, respectively. RHB Banking Group has also appointed Ms Ong Ai Lin as an Independent Director of RHB Islamic Bank from 1 September 2017 and Datuk Nozirah Bahari to the Board of RHB Islamic International Asset Management Berhad effective 15 March 2017. The Group also appointed two women, namely Datin Yap Siew Bee as an Independent member and Puan Norazzah Sulaiman as a Non-Independent member of the Board of Trustees to serve on RHB Foundation, which was incorporated in December 2015.
The financial services players are operating in a complex and highly-regulated industry which requires special skills mix within the limited pool of local talents and related expertise. At this juncture, the Group is also working closely with FIDE Forum to review the Directors’ Register, which was launched on 1 April 2016 as a new platform to source for woman board talent in the market available for Malaysian financial institutions. RHB Banking Group’s search for the appropriate woman candidate continues.
The current composition of RHB Bank Board is dynamic and encompasses the required skill mix and collective expertise. The Directors are more focus and have skill mix of relevant competencies in the following areas:
All Directors possess required knowledge in risk management, by virtue of vast experience and/or in the course of employment in any of the following:
Sustainable Remuneration Package
A sustainable remuneration package as promoted by RHB Bank includes both short-term and long-term incentives, whether in cash, benefits-in-kind, fixed or variable forms.
The Company’s Chief Executive Officer cum the Group Managing Director (“MD”) is not paid a Director’s fee nor is he entitled to receive any meeting attendance allowance for any of the Board and Board Committee meetings that he attends. As the only Executive Director on the Board of the Company, his remuneration, which includes salary and bonus, comprised of short term or long term incentives, in cash or benefits-in-kind, is derived from the Company. The Group MD’s sustainable remuneration package also includes performance bonus, in line with the Group’s retention policy and risk-based approach. His Key Performance Indicators (“KPI”) and remuneration are approved by the Board.
The remuneration for the marketing staff also includes clawback provision which was introduced to deter excessive risk-taking behaviour to achieve sales target unscrupulously.
RHB Bank is currently formulating a solid strategy to incorporate the Environment, Social & Governance (ESG) elements into its core businesses. In line with the new regulatory requirements per Bank Negara Malaysia’s Policy on Corporate Governance effective 3 August 2016, the Board is enhancing its roles and responsibilities to oversee ESG risks and at the same time, promoting sustainability through ESG considerations and integrations into RHB Bank’s business strategies.
Prior to this, the company was promoting the ESG elements on standalone basis, among others:
RHB Banking Group’s commitment towards Enriching and Empowering the Community – RHB Corporate Responsibility initiatives are anchored against four (4) key pillars, i.e. Nurturing Future Generations, Health & Wellness, Arts & Cultural Heritage and Humanitarian & Disaster Relief. These initiatives are championed through RHB Banking Group and RHB Foundation. From 2007-2017, the Group has invested approximately RM80 million towards helping the community.
There are a few channels made available for lodging customer’s feedbacks and/ or complaints:
For more information with regards to customer relationship management and transparency in product information and labelling, please refer to the link below:
The number of complaints (circled above) have reduced significantly due to large numbers of SSB cases that have been reclassified from ‘complaints’ to ‘requests’.
(Please refer to our latest annual report on the website for more details of Group policies/ guidelines).
At RHB Banking Group, we are committed to conduct business with PRIDE to protect the RHB Banking Group’s interests in the procurement of Goods and Services. As a testament of our commitment, we adhere to a transparent procurement process.
Group Procurement is an independent Strategic Functional Group that was setup to facilitate Procurement activities with the following objectives:-
|1.||MISSION, VISION AND VALUE STATEMENT|
Our mission is to implement best practices and achieve economies of scale in the procurement of goods and services for the RHB Banking Group. The RHB Group Procurement team takes pride in ensuring that such goods and services represent the best value, quality service and timely delivery with proper compliance of internal controls, policies and procedures while ensuring all confidential information construed in accordance with the laws of Malaysia and the law of the respective countries are held in strict confidence. The team is committed to providing the highest level of customer service, and conducting business with high ethical standards, fairness and transparency, while welcoming qualified, responsible and diverse range of suppliers
|2.||PROCUREMENT GUIDELINES & PROCEDURES|
The RHB Banking Group Procurement team adheres strict to the procurement guidelines and procedures on the Group’s domestic and overseas operations. This includes:
SELECTION OF SUPPLIERS
In selecting new suppliers, RHB Bank Procurement takes into consideration a comprehensive range of requirements including quality, cost, delivery lead time, supply consistency, environmental awareness, and compliance. We assess the supplier’s performance through a set of criteria which is reviewed periodically. RHB Bank Procurement provides guidance and seeks improvements in areas where their performance is not in accordance with the acceptable standards of the bank.
|4.||ESTABLISHMENT OF E-PROCUREMENT END-TO-END SYSTEM|
Since February 2014, the RHB Banking Group migrated all the manual processes into the electronic Procure-to-Pay system known as EBS or E-Business Suite, focusing on end-to-end process transaction and control. Prior to that, a web-based vendor registration system was launched in August 2013 which allowed vendors to self-register. This web-based self-registration system provides a single point of access to interact with RHB in conducting business activities.
PROMPT PAYMENT TO SUPPLIERS
With regards to the GST which was implemented in April 2015, the team has ensured that vendors are well trained on the electronic submission to ensure a smooth payment process. Presentations were held on GST prior to the implementation. The presentation was supported by Group Finance and consultants.
TRAINING OF REQUESTORS & SUPPLIERS
Various training sessions to both requestors (including approvers) and vendors were conducted on a monthly basis throughout the RHB Banking Group nationwide, including East Malaysia. The team has conducted training for up to 1,000 participants for both requestors and vendors in FY2015.
KEY STAKEHOLDERS ENGAGEMENT SESSION
Ensure all bank staff have a good understanding of the RHB Bank procurement processes
Prepare a platform to share changes made to procurement processes
Ensure all suppliers have a platform to raise issues or opinions for future improvement
Forward planning to ensure strategic sourcing of goods and services
Provide an environment for both parties to realize the importance of sustaining good work / business relationships
Topics covered in the engagement sessions were on the goods and services tax, supplier performance, payment related matters and contract renewal. Participants had the opportunity to obtain clarification on any procurement issue. The engagement session was supported by other functions including Group Finance, Group Property Management and Group Administration.
|8.||SUPPLIER SELECTION PROCESS|
RHB Group Procurement's Supplier Selection Process:
|9.||SUPPLIER REGISTRATION STEPS|
Before you register online to be considered as a supplier of RHB Banking Group, please read and understand the following steps:-
ONLINE SUPPLIER REGISTRATION CHECKLIST
Recognising the irrevocable effects that a corporation can cause to the environment, we have dedicated ourselves to applying sound environmental policies into our processes, as well as educating our workforce about respecting and conserving the environment.
Our Commitment to Preserving Our Environment
Our environmental conservation efforts include: leveraging on emerging technologies and solutions to drive environmental sustainability by adopting energy efficiency initiatives throughout our buildings, reducing wastage and recycling as many materials as possible. We implemented centralised air-conditioning, installed energy saving lights, sensor activated escalators and elevators that are parked at off-peak hours. Initiatives also include recycling used printer cartridges under the RHB and Hewlett Packard Go Green Programme, reducing the number of colour-printed documents and recycling paper. By leveraging on our RHB Easy and Internet Banking platforms such as RHB Now as well Mobile apps that support paperless transactions, we are setting the tone for implementation of a paperless environment throughout our operations. More recently, our food court has also gone styrofoam free.
The Board has also adopted a paperless environment since 2014 for reading of Minutes of Meeting and Board/Board Committees’ Papers. Under this top-down approach, the Directors/Board Committee members have been enabled to use their iPads to gain secure access to a meeting management solution system via an online portal. Dissemination of Meeting Papers to the Board and Board Committees made via Ipad not only promotes greater flexibility and efficiency, but contributes to conservation of the environment via saving trees for future generation.
Our target is to reduce the overall energy consumptions as part of GO Green initiative. RHB launches various programs including using of LED lightings, more energy efficient chillers and other equipment toward this target. All staff are encouraged to save the power consumption where possible. Among the initiatives undertaken to reduce energy consumption and hence the operating cost are, to encourage staff to do the following:
Promoting Sustainable Financing
RHB’s collaboration with the Japan Bank for International Cooperation sees us playing a part in lending financial support to SMEs engaged in Greenfield Clean Development Mechanism (CDM) projects. Through their CDM projects, these companies are producing renewable energy and reducing greenhouse gas emission rights (for carbon credits).
Our people are our greatest asset and the reason for our success and we continue to intensify efforts to nurture them in the best manner possible. RHB offers attractive career opportunities to those who endeavour to be the best in our industry, stimulate growth through innovation and foster a culture of continuous learning via structured learning programmes. To inculcate a high performance work culture among our people, we are constantly exploring ways and means to strengthen our human resource services and talent management programmes so that our people can reach their full potential.
|Average training budget per employee||RM||2,677||3,634||3,300|
|Average number of hours of training per year per employee by employee category||Hours||49||37||39|
|Total investment in training||RM||34,518,400||32,099,178||38,472,540|
We also remain committed to providing a conducive working environment and looking after the well-being of our employees so that employee morale and productivity remains high. We offer competitive remuneration packages, career advancement opportunities and a wealth of other benefits such as medical care, loans and preferential interest rates, amongst others.
The RHB Welfare Fund allows us to provide financial assistance to employees and their immediate families in the event of any financial distress due to serious accidents, illnesses, injuries or loss of property and/or life as a result of natural disasters and other unforeseen incidents.
Occupational Safety and Health
Our online Occupational Safety and Health learning modules for employees underscores RHB’s commitment to employee and workplace safety and health. All our branches and RHB Easy outlets are equipped with first aid kits to ensure that staff have immediate access to appropriate medical aid during an injury or illness.
|2||Lost Workday Case (LWC)||NA||31||66|
|4||First Aid Case (FAC)||NA||NA||3|
|6||Dangerous Occurance Case||NA||NA||NA|
|7||Incident of FIre||NA||NA||NA|
|8||Property Damage Case||NA||NA||NA|
|9||Occupational Disease Rate||NA||NA||NA|
|11||No. of Days Lost||NA||839||1504|
|12||Total Safe Man Hours Worked||NA||NA||NA|
Employee Value Proposition
|No||EMPLOYEE TURNOVER RATES|
|1||Employee Turnover Rates||Year||31 Dec 2015||31 Dec 2016|
|(normal resignation/attrition)||Total No of Attrition||4,278||3,630|
|Attrition Rate (%)||27.0%||25.0%|
|2||Employee Turnover by Gender||Gender/Year||31 Dec 2015||31 Dec 2016|
|Total No of Attrition||4,278||3,630|
|3||Employee Turnover by Age Group||Age Group/Year||31 Dec 2015||31 Dec 2016|
|(Normal resignation/attrition)||≤ 30||2,763||2,185|
|31 - 40||1,065||1,039|
|41 - 50||232||238|
|Total No. of Employee||4,278||3,630|
The RHB Banking Group adheres to the Universal declaration of Human Rights, where our people policy is based on dignity, equality and fairness, as embedded in the declaration.
The Group gives priority to locals in the job recruitment process as a fair chance in employment and development. This reflects the Group's fundamental values of fairness and meritocracy and is applicable in all regions where RHH has a presence.
The Group engages with national level associations such as NUBE and DOSH to ensure employee's rights and welfare are looked into, which results in a mutually agreed Collective Agreement for certain of group of staff.
The Bank being a member of Malayan Commercial Banks' Association (MCBA) supports one of the main objectives of MCBA in promoting good relations between the employees and their employers which is one of the key aspects when representing the member Bank(s) in negotiations with the Unions in collective bargaining.
All relevant staff policies are communicated to the overseas countries where RHB has a presence. Currently only 2 countries, namely Thailand and Indonesia have these policies translated in their own language.
RHB Bank is currently formulating a solid strategy to incorporate the Environment, Social & Governance (ESG) elements into its core businesses. In line with the new regulatory requirements per Bank Negara Malaysia’s Policy on Corporate Governance effective 3 August 2016, the Board is enhancing its roles and responsibilities to oversee ESG risks and at the same time, promoting sustainability through ESG considerations and integrations into RHB Bank’s business strategies. The Group Credit Committee at the managerial level and the Board Credit Committee at the board level will be responsible for incorporating these ESG-led investment strategies.