My EG Services Berhad Annual Report 2020

MY E.G. SERVICES BERHAD Regisration No. 200001003034 (505639-K) 42 OUR OPERATING ENVIRONMENT MYEG remains attuned to its external environment as developments arising from the operating environment (political, FDPOPNJD TPDJBM UFDIOPMPHJDBM MFHBM BOE FOWJSPONFOU PS LOPXO BT i1&45-&u GBDUPST NBZ QPUFOUJBMMZ JNQBDU .:&( T business model. The impacts could be at any stage of the value creation process including but not limited to the availability of capitals, the Group’s business processes as well as the creation of outputs and outcomes. External factors include both positive developments such as emerging opportunities within our industry and chosen geographic markets, as well as the ensuing business risks and potential threats. For example, the growing focus on an organisation’s environmental, social and governance performance could lead UP HSFBUFS FNQIBTJT CZ QSPWJEFST PG DBQJUBM PS PUIFS TUBLFIPMEFST PO UIF WBSJPVT OPO àOBODJBM WBMVFT DSFBUFE )FODF OPO àOBODJBM QFSGPSNBODF DPVME JODSFBTJOHMZ QMBZ B NPSF EFDJTJWF SPMF JO UIF BWBJMBCJMJUZ PG àOBODJBM DBQJUBM BT NPSF investors choose to make strong and improving social and environmental performance as a prerequisite for investment into the company. Regulatory bodies may also review environmental and social performance as a prerequisite for being listed on selected indices, which provides the Group with visibility to foreign funds and capital investors. *O SFTQPOTF UP UIF WBSJPVT JEFOUJàFE 1&45-& GBDUPST JNQBDUJOH UIF .:&( CVTJOFTT NPEFM UIF (SPVQ IBT EFWFMPQFE effective strategic responses towards managing potential risks factors and to leverage on emerging opportunities. EXTERNAL FACTOR DESCRIPTION IMPACT ON MYEG / BUSINESS MODEL IMPACTED CAPITALS RISKS OPPORTUNITIES POLITICAL / GOVERNMENTAL In FY2020, there was a sudden major change in the Malaysian government that occurred in March 2020. As this change in our government coalition composition was unexpected, it has thus raised certain market and economic concerns over political uncertainty in the country. Political factors are beyond the Group’s control. However, the value of what we provide transcends the politics of the day and is meant to serve the DJUJ[FOT Therefore, we continue to strive towards engaging in meaningful contracts, tenders and renewals to the best of our ability, regardless of the state of the political landscape. Relationship / Social -FHBM Uncertain market, politic and economic conditions /PO SFOFXBM PG contracts -PTT PG BDDFTT UP spectrum -BDL PG OFX CVTJOFTT opportunities Shifting political and regulatory dynamics The present political scenario has further expedited MYEG’s expansion to new markets and increased capitalisation on resources from current business stakeholder in other operating markets. It also justifies the intensification of efforts to develop more commercial solutions to further reduce reliance on concession services.