EXCEL FORCE MSC BERHAD Annual Report 2019

EXCEL FORCE MSC BERHAD - ANNUAL REPORT 2019 11 management discussion and analysis (CONT’D) FORWARD LOOKING STATEMENT 2020 is undoubtedly a challenging year for our country as we combat the Covid-19 pandemic. There is great uncertainty on how the Malaysian economy will recover and how long it will take. Being a trading nation, much depends on the speed of recovery in global supply chain and demand. While the impact to our business cannot be accurately determined due to changing situations, the Group is alert of the need to develop strategies to adapt our business to these changes. In this time of crisis, the Group has taken prudent steps to ensure sufficient liquidity to fund our operations and has drawn up contingency measures to minimise the down side risk. The Group focuses on protecting its revenue stream, optimising utilization of resources for productive gain, keeping close to our current and prospective customers to understand their needs and help them achieve their business objectives. The Group regularly reviews its resource allocation to ensure our people are concentrating their time and effort on the right activities and get them done right first time. As the old saying goes, where there is a challenge, there is also opportunity. The Group will look out for good business opportunities with attractive valuation to invest in. The Group is also open to collaborate with potential partners in Malaysia and overseas to explore new business segments that leverages on the Group's technological capability and know-how in mission critical business environment. DIVIDEND The Group had declared and paid RM6 million dividend in FYE 2019. This is an equivalent to 93% of Group’s profit for the financial year. There is no dividend distribution policy as management is of the view that adequate resources must be maintained within the Group for working capital and future expansion needs of the Group. Factors that may influence dividend pay-out includes profitability of the Group, the availability of cash balance, adequacy of reserve and economic situation.