PRG Holdings Berhad Annual Report 2017

• PRG HOLDINGS BERHAD 10 DATO’ DR. AWANG ADEK BIN HUSSIN Chairman INDUSTRY TRENDS As for the overall property market, the first half of 2017 saw the overhang of completed units hitting a high of RM12.3 billion, up 40% year-on-year. Most of these unsold units which were launched several years ago comprised high-rise units with selling prices in excess of RM500,000 per unit. Although consumer confidence has since improved and asking prices have decreased, the key issues of affordability, rising cost of living, and tight financing will cause a dampening effect on the property market in the foreseeable future. Despite the softening of the property market, the Group believes there is still demand for properties, provided the right kind of products at the right price and location are available in the market. While the construction sector is at a moderate pace, it is anticipated to grow, driven by the public mega infrastructure and affordable housing segments. The growth outlook is expected to be anchored by private consumption and sustained by improved labour market conditions. Taking advantage of the positive prospects, PRG will continue to respond rapidly to the challenging business environment in order to maintain our current business divisions, for now and the years to come. The International Monetary Fund, in its world economic outlook, forecasts a global growth rate of 3.9% for 2018. Global trade activities are progressively strengthening, underpinned by a faster and broader-based growth in the advanced economies of United States, Eurozone and Japan. The growth in these regions is fuelled by private consumption, business investment and external demand in their respective economies. In addition, the emerging economies of China, India, South Korea and ASEAN nations during the financial year also contributed positively to the global growth forecast. However, the recent trade policies announced by the US, such as increasing tariffs on steel and aluminium imports and global worries over an emerging “trade war”, may cause uncertainty to the market. It is also expected that the global financial market remains volatile for the coming 2018. Despite these external threats, the Group is cautiously optimistic about its business prospects and will continue to be prudent, focusing on building our capabilities and competitiveness over the mid and long term horizon. Dear Valued Shareholders, On behalf of the Board of Directors of PRG Holdings Berhad (“PRG”), it is my pleasure to present you the Annual Report and Audited Financial Statements of the Company and PRG Group for the financial year ended 31 December 2017 (“FY2017”). In FY2017, PRG registered a profit after tax of RM10.8 million, on the back of a revenue of RM193.0 million, this represents a significant growth from last year. C H A I R M A N ’ s S T A T E M E N T