MARKET LANDSCAPE MARKET OVERVIEW The unprecedented COVID-19 impact has made the business environment on both the domestic and international fronts in FY2020/FY2021 challenging. At macro level, global markets have been pressured with supply chain disruptions mainly caused by stricter border controls, rising freight costs, and scarcity of shipping containers, which resulted in the increase of transport rates and costs. Malaysia’s Quarterly GDP Growth 1Q-19 1Q-19 4.5 0.9 1.3 0.8 0.6 -2.0 18.2 -0.3 2.7 -2.0 -3.6 6.6 4.8 4.4 3.6 0.7 -2.6 -3.4 -0.5 16.1 -4.5 3.6 -17.1 Year-on-year Quarter-on-quarter 2Q-19 2Q-19 3Q-19 3Q-19 4Q-19 4Q-19 1Q-20 1Q-20 2Q-20 2Q-20 3Q-20 3Q-20 4Q-20 4Q-20 1Q-21 1Q-21 2Q-21 2Q-21 3Q-21 4Q-21 3Q-21 3Q-21 Moving into FY2022, uncertainties regarding developments surrounding the new Covid-19 variant of concern (Omicron) of the pandemic remains. The progress and efficacy of vaccinations, compliance with standard operating procedures as well as the ability to effectively contain outbreaks from any new COVID-19 variants of concern will be key to the expected recovery. Relaxation of restrictions for fully vaccinated individuals, including for interstate travel would also spur tourism-related activities. At macro level, the strength in global demand will continue to support export growth. Annual Growth FY2021: 3.1% | FY2020: -5.6% | FY2019: 4.3% -16.5 Source: Department of Statistics Malaysia WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOWWE OPERATE MSM Malaysia Holdings Berhad ANNUAL INTEGRATED REPORT 2021 16
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