Ni Hsin Berhad Annual Report 2018

Ni Hsin Resources Berhad (653353-W) Annual Report 2018 10 Management Discussion And Analysis (continued) Prospects and Strategies Focus Economics Consensus Forecast panelists expect the global economy to expand 3.0% in 2019. The panel sees global economic growth inching down to 2.9% in 2020. While the global economy has entered a soft patch this year, robust labor markets worldwide and supportive fiscal policies are expected to shore up economic growth. Moreover, the U.S. Federal Reserve’s decision to pause its tightening cycle will allow central banks to adopt more accommodative monetary policies.  Nevertheless, risks to the global economic outlook are clearly skewed to the downside. Despite President Trump’s plan to delay additional tariffs on Chinese goods, trade tensions between China and the United States remain elevated. Furthermore, the U.S. administration has already threatened its trade partners that new tariffs, this time on cars, are on the table. Meanwhile, China’s economy continues to slow, adding downward pressure on global demand, while uncertainty surrounding Brexit shows no sign of abating. Among developing economies, growth prospects in Asia ex-Japan remained stable on hopes that China and the U.S. will be able to clinch a trade deal in the coming months and that policy stimulus will avoid an economic downturn in China. Economic growth in Eastern Europe will slow due to headwinds in Turkey, subdued economic activity in Russia and moderating dynamics in the European Union—the region’s main trading partner. (Source: Focus Economics). Despite the dull economic outlook the Group is confident of achieving positive results in FY2019. The Group will intensify its efforts to further develop and expand existing market as well as penetrating into new markets worldwide. Among the measures undertaken and planned are: • the development of new and improved versions to our current range of products; • venturing into trading and distribution of related products to complement our current range of products; • collaboration with various e-commerce marketplace to expand our distribution channels for our product offerings; and • participation in trade exhibitions worldwide. The development of new and improved versions to our current range of products include pressure cookers and cooking pots for the Food and Beverage Segment. We are collaborating with various food and beverage cookware/equipment suppliers to supply our commercial series of pressure cookers and cooking pots to restaurants, hotels, cafes and bistros in Malaysia and Singapore. The inner rice bowl, a healthy replacement for the common aluminium rice cooker bowl developed by the Group, is being aggressively promoted to the Japanese and South East Asian market. The Group plans to venture into related products to improve the revenue by leveraging on the existing customer base and to better fulfill our customers’ procurement needs through one source. The products targeted are food products such as spices, sauces, pastries and other food products to complement our cookware items and road safety goods such as traffic safety equipment and accessories to complement our convex mirrors. As for the Convex Mirrors, we have developed a new version called the Coated Convex Mirror with unique characteristics such as environment friendliness, scratch proof, heat resistant, antibacterial and anti-fog. We are also developing the anti-freeze version of the convex mirrors. These products are targeted at the Japanese and European markets. In the e-commerce marketplace we are collaborating with 11Street.com, Lazada.com and Shopee.com besides having our own website known as http://www.pentoli.com . The website offers a wide range of Pentoli products with different price range to cater to the needs of different customers both local and abroad.