Page 103 - Bank Muamalat_AR24

ANNUAL REPORT 2024 1 2 3 4 5 Sustainability Statement 6 7 8 101

• The Bank has begun incorporating environmental and • The continued engagement of Bumiputra and SME
social considerations into its procurement decisions. vendors supports broader socioeconomic impact. When
Preference is given to vendors who demonstrate good awarded with procurement contracts, these vendors
sustainability practices such as offering eco-friendly are empowered to grow, potentially contributing to
products, using resource-efficient solutions, or holding job creation and community upliftment.
relevant environmental certifications.
• In 2024, 98 percent of all appointed vendors were locally
• The Bank is required to conduct thorough due diligence based, reinforcing our support for domestic businesses
when onboarding new outsourcing arrangements, as and the national economy. Only 2 percent of our
well as during the renewal or renegotiation of existing vendors were non-local, typically in areas requiring
contracts. This ensures that all service providers meet specialised expertise not readily available within
the Bank’s compliance, risk, and performance standards. Malaysia.
• Monthly governance meetings are held by the respective • Regular vendor performance evaluations were conducted
business units to review and address any issues or to assess service delivery, compliance, and responsiveness.
developments related to outsourcing providers. These Open and constructive communication throughout the
meetings serve as a platform to ensure accountability, contract lifecycle has helped strengthen partnerships and
monitor service levels, and promptly resolve concerns. improve service consistency.
• As part of our risk management and operational • Vendor appointments are formalised through a Letter
resilience measures, regular testing of the service of Offer and/or Contract, which clearly outlines all terms
provider’s Business Continuity Plan (BCP) is conducted. and conditions to protect the Bank’s interests. Through
The results of these exercises are submitted to the Bank strict adherence to regulatory requirements and diligent
for review and evaluation. risk management, we have upheld fair treatment of
financial consumers and safeguarded the integrity of our
Our procurement practices in 2024 reflect the Bank’s procurement processes.
ongoing commitment to ethical, inclusive, and sustainable
operations: • The Bank has established robust controls to ensure the
security and confidentiality of any information shared
• The Strategic Procurement Department ensures that all with service providers. In line with regulatory
outsourcing-related matters are managed in accordance requirements, staff of the service provider are also
with the Bank’s outsourcing policy, providing consistency expected to adhere to standards equivalent to those
and compliance across outsourced engagements. imposed by Bank Negara Malaysia, ensuring consistency
• In 2024, 46 percent of our active vendors were in ethical and operational conduct.
Bumiputra-owned businesses, while 28 percent were Our commitment to responsible procurement practices
classified as SMEs. This reflects the Bank’s continued ensures that our operations generate positive outcomes
support for supplier diversity and aligns with national for both the community and the environment.
priorities to promote inclusive economic growth and These efforts reflect our dedication to upholding the
equitable participation in the supply chain. principles of transparency, fairness, and integrity across
• For every tender or Request for Quotation exercise, all procurement activities, while reinforcing our role
efforts are made to include qualified Bumiputra and as a socially responsible and values-driven organisation.
SME vendors, depending on the nature of the services
required. This inclusive approach ensures broader
participation and promotes equitable access to
procurement opportunities.