17 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2021 5. FUTURE PROSPECTS (Cont’d) Given our Group’s diverse range of merchant base, some of our payment touchpoints such as convenience stores, pharmacies, medical facilities, supermarkets and petrol stations are still functioning throughout the movement control period which continued to contribute to our group TPV growth in 2021. By the second quarter of 2022, most countries are already opening their borders, which bodes well for spending in sectors like retail, tourism and leisure activities. Although the COVID-19 pandemic is moving to the endemic stage, consumer sentiment is recovering but cautious. We are cautiously optimistic of improvements in 2022 compared to 2021 where the group recorded a revenue improvement but margins were impacted due to merchant and revenue type mix. As COVID-19 vaccines were deployed in stages and intensified in the second half of 2021, there is now a cautious optimism on the gradual recovery in the global economies, and with it, the opening of borders and hence travel and trade. The improving rate of vaccinations has led to most countries slowly relaxing their SOPs and border closures beginning October 2021. The reopening of businesses and borders bodes well for consumption and hence cashless payments to further improve in the coming quarters barring any unforeseen in resurgence of COVID-19 cases. The emergence of the Omicron variant of the COVID-19 pandemic towards the end of 2021 had caused concerns but most countries did not revert to previous strict lockdown measures as vaccination rates are now significantly higher and booster shots are being administered. 2022 still looks poised for a gradual recovery in the global economy and this, again, bodes well for consumer spending to recover further. However, the recent conflict in north eastern Europe has resulted in uncertainties for the global economies which has seen the significant increase in commodity prices, especially energy costs which may threaten the fragile recovery of a post COVID-19 global economy. This conflict may have wide ranging impacts on the global recovery. The group remains positive in the long-term potential of the ASEAN e-payments industry and believes the trends of switching to e-payments and cashless channels will continue going forward. 6. DIVIDENDS The Board of Directors has decided that our cash reserves can be better used to further develop the Group’s business in the various ASEAN markets it operates in and therefore do not recommend the payment of a dividend for the financial year ended 31 December 2021. MANAGEMENT DISCUSSION AND ANALYSIS CONT’D
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