EXECUTIVE CHAIRMAN AND MANAGEMENT DISCUSSION & ANALYSIS Focusing on our fundamentals and sharpening our focus on our core businesses was what made us able to manage the ongoing challenges in 2021. The brunt of the COVID-19 pandemic continued into the year 2021 with the periodic resurgence of the virus’ variants which caused widespread economic disruption from uncertainties and market volatility for the second year that sent the global economy into a recession. Seeing that the pandemic worsened during the first half of the year, the Malaysian Government pushed for its immunization programme which saw 90% of the country’s adult population being fully inoculated in the fourth quarter of the year. The high inoculation rate allowed for the gradual relaxation of mobility restrictions in the country which encouraged economic growth. The Malaysian economy improved and grew by 3.1%, a recovery from the drop of 5.6% in 2020 from strong exports that was driven by the demand in global digitalization growth and high commodity prices as well as the Governments support through several economic stimulus packages and budgetary measures. Aside from the COVID-19 virus, the call for achieving net zero emissions by 2050 also dominated the headlines in 2021. Global communities came together discussing on acting on climate damage, paving the push for global energy transition and a sustainable future with the implementation of clean technology. Amidst a volatile economic and operational environment during a prolonged health crisis, Destini has been resilient in sharpening its focus on its fundamentals which are its four core businesses that have been a driver for the Group since before the pandemic. Despite the difficulties, this focus gave clarity to steer the Groups businesses in these uncertain times. That being said, on behalf of the Board of Directors, we present to you Destini’s Annual Report for the Financial Year Ended December 31, 2021 (“FYE2021”). ACHIEVEMENTS Although the year under review was one of the most challenging years the Group has experienced since its incorporation, we managed to make progress with several corporate exercises. In February of the year, Destini entered into a 70:30 Joint Venture and Shareholders Agreement (“JVSA”) with Keretapi Tanah Melayu Berhad (“KTMB”) that would enable the Group to provide heavy maintenance work on rail assets in Malaysia. Following that, during the second half of the year, the Group entered into a Memorandum of Understanding (“MOU”) with Siemens Mobility Sdn Bhd for the latter to act as Destini’s Technical Assistance Advisor in providing maintenance, repair and overhaul (“MRO”) services for electrical trainset components in Malaysia. Destini had also entered into a Heads of Agreement (“HOA”) with Indonesia State-Owned PT Industry Kereta Api (“PT INKA”) to identify and pursue opportunities in the railway systembusiness sector and infrastructure projects in Indonesia, Malaysia and potentially region. For its energy division, the Group managed to secure an award from Repsol Oil and Gas Malaysia for the provision of tubular handling and conductor installation, equipment and services. Marking its foray into renewable energy, the Group ended the year with its maiden solar project from Indah Water Konsortium Sdn Bhd (“IWK”) for the engineering, procurement, construction and commissioning (“EPCC”) of solar photovoltaic (“PV”) systems at IWK’s sewerage plants across Malaysia. TheGroup’sperseverancebore fruit despite thechallenges and uncertainties encountered during the year. 30 DESTINI BERHAD • ANNUAL REPORT 2021
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