Page 59 - Bank Muamalat_AR24

ANNUAL REPORT 2024 1 2 3 4 Our Business Performance 5 6 7 8 57

Ar Rahnu Financing

Financing Assets: Financing Income: Total Disbursements: Net Impairment:
RM551.57 RM47.21 RM902.8 0.64%
million million million (FY2023: 2.37%)
(50.3%) (29.5%) (62.4%)

In 2024, the Ar-Rahnu (Islamic pawn broking) industry in The operations front was also enhanced to improve sales
Malaysia saw growth, driven by the demand for transparent, support and reach. Regional staff were centralised to serve
and low-cost short-term financing, offering an alternative multiple branches more efficiently. This was coupled with the
for customers seeking financing, often catering to micro- implementation of additional Ar-Rahnu counters at selected
entrepreneurs and those excluded from mainstream branches to serve high-demand areas more efficiently.
banking. This growth is mainly driven by the need for The concept of the Ar-Rahnu Service Centre was also piloted
individuals to access immediate financing and the desire during the year, designed as a cashless, standalone, and
to serve the unserved population. In addition, rising gold low-cost setup where gold evaluation and storage occur
prices have a significant positive impact on the overall at the service centre, with data entry handled by the main
performance of Ar Rahnu industry in Malaysia. branch.
The Bank’s Ar-Rahnu financing, which offers instant liquidity
up to RM1,000,000 in compliance with Shariah principles, Building on the strong performance and strategic
has become one of the Bank’s flagship offerings. This service developments of FY2024, Bank Muamalat’s Ar-Rahnu
is available at 70 branches operating five days a week. division has outlined several key strategic priorities for
In FY2024, this portfolio secured substantial financing growth FY2025. A significant initiative is the introduction of
of 50.3%, with balances contributing RM551.6 million a Ar-Rahnu for non-individual customers, with a maximum
significant increase from RM366.9 million in FY2023. limit of RM5 million, opening up new market segments.
The Bank also plans to expand its physical footprint by
While rising gold prices played a crucial role in positively adding Ar-Rahnu counters at selected high-potential
influencing the overall performance of the business, several business branches and opening new Ar-Rahnu Touch
key developments in FY2024 were also instrumental in Points at Muamalat Service Centres to enhance accessibility.
driving performance by boosting product visibility and Customer awareness will be a strong focus, driven by
customer engagement. This included the Bank’s Gadai Emas increased marketing activities through social media, banners,
Menang Emas 2.0 campaign with total prizes exceeding radio advertising, and the implementation of customer loyalty
RM200,000, and the introduction of an Ar-Rahnu Panel Gold programmes.
Shop initiative that fostered joint marketing efforts with
gold shops to offer Ar-Rahnu services directly to their
customers. To attract new clientele, a special campaign
rate of 0.75% was introduced for new Ar-Rahnu customers,
stimulating new business acquisition.