My EG Services Berhad Annual Report 2020

ANNUAL REPORT 2020 43 EXTERNAL FACTOR DESCRIPTION IMPACT ON MYEG / BUSINESS MODEL IMPACTED CAPITALS RISKS OPPORTUNITIES ECONOMIC MYEG’s Malaysia operations remains our primary market and a highly competitive marketspace with moderate to slow growth. Furthermore, the economy has contracted with the $07*% QBOEFNJD Domestic purchasing power continues to be impacted due to lower household expenditure amid tighter movement restrictions. The local population continues to face stagnating employment opportunities due to mobility restrictions affecting employment activity, resulting in the unemployment rate edging upwards. This in turn influences their ability to consume products and services. The economy is beyond MYEG’s control, but as MYEG expands beyond .BMBZTJB NBDSP economic factors such as currency issues, etc. could have an impact on overall Group performance. MYEG continues to place significant focus on its Malaysian market. Thus, we will need to launch new services to tap into it while continuing to innovate and respond promptly to shifts in market demand trends to enhance our competitiveness in our main market. There also exists more opportunities for MYEG to expand into IJHI HSPXUI IJHI population markets such as the existing countries in which MYEG operates in or new geographic locations. Financial Human Uncertain market, politic and economic conditions Challenging operating conditions drive additional focus on innovation towards the creation and delivery of new solutions that would meet evolving market requirements. These include the Group’s portfolio diversification initiatives in a bid to mitigate supplier risk from our concession services, including diversifying existing business activities of MYEG and its subsidiaries to include the provision of financial services. The Group undertook the establishment of a DRP that gives shareholders the choice to reinvest their cash dividend. OUR OPERATING ENVIRONMENT (CONT’D) OUR BUSINESS