Affin Bank Berhad | Annual Report 2020

227 AFFIN BANK BERHAD 197501003274 (25046-T) | ANNUAL REPORT 2020 ECONOMIC AND BUSINESS OUTLOOK FOR 2021 (CONTINUED) The introduction of government measures during the Budget 2021 coupled with tax incentives and the targeted Wage Subsidy Program will help to support private consumption growth. Private investment is likely to improve in 2021 with the resumption and implementation of mega infrastructure projects and other new projects respectively. This is evidenced by the Government’s proposal to allocate a substantial RM69 billion to development expenditure focusing on construction-related and infrastructure projects with high multiplier impact. Export growth in 2021 will be underpinned by a sustained pick-up in external demand led by a rebound in global economic growth. The strong turnaround expected in China’s economy will help support the external demand as China remains one of Malaysia’s main trading partners. BUSINESS STRATEGY MOVING FORWARD The Covid-19 pandemic has drastically changed the way banks operate today. Banks are forced to be more agile and innovative in its dealing with customers as the usual interactions are limited by the Government Issued Standard Operating Procedures. As a consequence, banks had to improve their overall digital offerings and expand the channels available to reach their customers. The Community Banking Division’s strategy in 2021 is to grow customer base aggressively, increase assets selectively and manage cost prudently. The Community Banking Division will be expanding its customer base by leveraging on collaborations and Group synergies. In line with the Group’s AFFINITY IN MOTION 22 (‘AIM 22’) focus, the Division will be streamlining its human capital structure towards a more sales-centric model, expanding digital penetration and reducing gross impaired loans by improving analytics, collections and overall customer management. The Enterprise Banking Division continues to support Small & Medium Enterprises (‘SMEs’) customers adversely impacted by the Covid-19 pandemic by providing financial relief facilities under BNM schemes and the Bank’s own Financial Assistance and Instalment Relief (‘FAIR’) and Expanded Targeted Repayment Assistance (‘XTRA’) programs. The Division promotes Covid-19 funds and FAIR program extensively through various communication channels including social media, advertorial in business magazines and radio broadcasting. For 2021, the Division plans to strengthen customer engagement and networking activities by enhancing its SMEColony mobile app and AFFINWRKFZ initiatives, while introducing new and exciting propositions to the market. The Corporate Banking Division (‘CBD’) is assisting customers to weather the pandemic via FAIR Program. This is done proactively on a case to case basis to alleviate customers’ financial difficulties without compromising the asset quality position. CBD will also step up its digital innovation to make interactions with customers more efficient and effective. One such initiative is AFFINMAX, which was launched in December 2020 to bring the corporate customers to a new dimension in corporate internet banking with a complete suite of Cash Management solution which integrates Liquidity Management and Financial Supply Chain modules. AFFIN Islamic Bank Berhad (‘AiBB’) remains focused on the Group’s initiatives on digital transformation and strengthening balance sheet management to address liquidity excess and funding costs effectively. AiBB strives to reinforce both fields with resources to supplement the execution of the Business Plan and other ongoing strategic initiatives for both the Bank and the Group. Customers can expect for more strategic collaboration with digital service providers to enable value added banking services that are focused on enhancing user experience. DIRECTORS’ REPORT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020