38. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) (iv) Credit risk (continued) Credit risk concentration profile (continued) 2021 2020 RM’000 % of total RM’000 % of total By industry sectors Manufacturing 19,599 52% 20,439 58% Management services 3,889 11% - - Agriculture 425 1% 51 * Property development and construction 13,646 36% 14,544 42% 37,559 100% 35,034 100% * Amount is less than 1% At the end of the reporting period, approximately 40% (2020: 41%) of the Group’s trade receivables were due from five (5) (2020: six (6)) major customers located in Malaysia, Asia Pacific (excluding Malaysia), Europe and North America. 39. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (i) The Coronavirus disease “COVID-19” pandemic During the financial year, the Government of Malaysia imposed various phases of the Movement Control Order (“MCO”) in response to the resurgence of the 2019 Novel Coronavirus infection (“COVID-19”) pandemic, followed by the announcement of the National Recovery Plan (“NRP”) in June 2021, which details a roadmap to control the COVID-19 pandemic while progressively reopening society and the economic sectors towards the new normal under four progressive phases. On 8 March 2022, the Government of Malaysia announced that the country will begin its transition to endemic phase of COVID-19 from 1 April 2022 with the opening of its international borders and abolishment of certain COVID-19 restrictions. Based on the assessment of the Group, the judgements and assumption used in the preparation of the financial statements for the financial year ended 31 December 2021 have not been impacted significantly by the COVID19 pandemic. The Group will continue to assess the impact of the COVID-19 pandemic on the financial statements of the Group for the financial year ending 31 December 2022. As at the date of authorisation of the financial statements, the COVID-19 pandemic situation is still evolving and uncertain. The Group will continue to actively monitor and manage its funds and operations to minimise any impact arising from the COVID-19 pandemic. NOTES TO THE FINANCIAL STATEMENTS P R G H O L D I N G S B E R H A D A N N U A L R E P O R T 2 0 2 1 190 31 December 2021 (cont’d)
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