OPERATIONAL REVIEW • D estini’s land systems segment recorded a LATNCI of RM1.43 million in FYE2021 from a PATNCI of RM7.22 million a year before. Revenue declined to RM0.03 million in FYE2021 from RM2.81 million the year before. • T his segment registered losses due to its inability to replenish its order book with major contracts during the year in review as the Government shifts its focus and coffers onto managing the health crisis. Few contracts were available for bidding during the year. • H owever, despite a lackluster year for this division, Destini carved its name in the rail industry with a joint venture with KTMB that would unlock the Group’s capabilities to provide heavy MRO work on rail assets in Malaysia. • C omplementing this progress, Destini’s MOU with Siemens Mobility Sdn Bhd as Destini’s Technical Assistance Advisor in providing MRO services for electrical trainset components would encourage the Groups advancements in the land systems industry by being able to provide a wider range of MRO works on a wider range of trainsets. • O n the back these new opportunities, the Group is further encouraged to pursue other railway systems business and infrastructure projects within the region with its agreement with PT INKA that could potentially pave the way for Destini to enter regional rail markets. • W ith all these agreements inked during the year, Destini has renewed optimism for its land systems segment with wider potential in replenishing its order book within this industry for the year 2022 and beyond. LAND SYSTEMS EXECUTIVE CHAIRMAN AND MANAGEMENT DISCUSSION & ANALYSIS 34 DESTINI BERHAD • ANNUAL REPORT 2021
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