CHAIRMAN’S STATEMENT PERFORMANCE The challenges The World Health Organization's declaration in May 2023 that COVID-19 was no longer a global health emergency provided a sense of hope and optimism. However, the global economic uncertainties persisted due to factors such as rising inflation, increasing protectionism, slower economic growth in China and the conflicts in Ukraine and the Middle East. Domestically, Malaysia’s GDP growth moderated to 3.7% from a robust 8.7% in 2022, as the country, much like the rest of the world, faced slower external demand. Although we entered 2023 with very much political instability that affected the local business climate, the Madani government managed to manoeuvre the challenges and brought stability and steadily steering the nation towards economic growth backed by both the local and international investors. Overcoming the challenges At Destini, we understand that challenges are inevitable in an interconnected world. Yet, we remain focused on building a resilient and adaptable organization. Despite the adverse business climate as mentioned above, we navigated these obstacles with determination and strategic foresight. In response to the market dynamics, the Group has implemented a comprehensive turnaround strategy that focused on strengthening its core operations while building resilience for sustainable growth. The core of our turnaround plan is anchored in five strategic thrusts: a) Organisational Optimization R eviewing and optimising the Group’s organisational structure. Through careful evaluation of our core business sectors, Destini has streamlined its corporate structure by consolidating operations and removing dormant entities. This restructuring has not only reduced administrative complexities and optimising costs but also sharpened the Group’s focus on its core competencies. b) Stakeholder Engagement Programs D estini has introduced initiatives to strengthen relationships with key stakeholders, including customers in both public and private sectors, financial institutions, shareholders, and employees, ensuring alignment and trust across all fronts. c) Financial Restructuring R e-engineering and rebuilding our financials strength via new fund raising exercises both the debt and equity, strengthening the balance sheet, cost optimisation and revenue generation activities. Although Destini recorded a loss of RM136 million this financial period, these initiatives are expected to strengthen our balance sheet and pave the way for positive financial outcomes in coming years. On behalf of the Board of Directors, it is my privilege to present the Annual Report and Financial Statements of Destini Berhad for the financial period ended 30 June 2024. The past 18 months was marked by significant challenges and shifts in the global and domestic landscapes. It was also a period of adaptation, resilience, and progress for Destini. Dear Valued Shareholders, 27 DESTINI BERHAD ANNUAL REPORT 2024
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