DESTINI Annual Report 2020

Management Discussion and Analysis Dear Shareholders, Destini began 2020withoptimismfromplans and strategies in place toensure a solid performance for the Groupduring the year. However, in the first quarter of the year, concerns rose over the emergence of a new novel coronavirus that was rapidly spreading across borders. The virus, which had turned into an outbreak, saw many lockdown measures imposed by Governments around the world to curb the COVID-19 pandemic. With various lockdowns imposed, the world saw widespread economic disruption from uncertainties and market volatility that sent the global economy into a recession and the collapse of oil prices. Global oil demand had already begun to decline even before COVID-19 was declared a pandemic as the Saudi Arabia and Russia’s oil price war caused an oversupply and eroded oil prices. By the end of the price war, oil prices were already at a freefall during the height of the pandemic. This had a systematic impact on the local market which saw the benchmark FTSE Bursa Malaysia KLCI (FBMKLCI) sink to a 11-year intraday low of 1,207.80 points on March 19, 2020. Bank Negara Malaysia had to cut the benchmark interest rate, the overnight policy rate four times during the year to a record low of 1.75%. Despite these challenges, the FBMKLCI ended the year as one of the best-performing exchanges in the ASEAN region with the FBMKLCI closing 2.4% higher for the year. Dato’ Rozabil Bin Abdul Rahman President & Group Chief Executive Officer Norzilah Binti Mohammed Executive Director Abdul Rahman Bin Mohamed Rejab Executive Director 34 ANNUAL REPORT 2020 DESTINI BERHAD