21 OUR SUSTAINABILITY APPROACH HOW WE ARE GOVERNED FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION ADDITIONAL INFORMATION GROUP MANAGING DIRECTOR’S MANAGEMENT DISCUSSION AND ANALYSIS Looking ahead, the IMF forecasts stagnant global economic growth at 3.2% GDP for both 2024 and 2025, with a declining inflation trajectory. The outlook suggests reduced economic impact from the pandemic, particularly for emerging market economies, although output is expected to remain below pre-pandemic levels for most regions. Challenges such as geopolitical tensions and persistent core inflation could lead to interest rate hikes and asset price declines. Additionally, issues in China’s property sector could impair growth, and rising debt risks may lead to disruptive measures such as tax hikes and spending cuts. Meanwhile, geoeconomic fragmentation may also slow global supply chain efficiency. Domestically, Malaysia is expected to record stronger GDP growth with in-house forecast of 4.5% to 5.0% in 2024. Key pillars supporting this positive trajectory include sustainable domestic demand, higher investment realisation, a potential surge in tourism activities, a rebound in the manufacturing sector, expected recovery in China, and a buoyant global technological upcycle. With domestic inflation expected to stay comfortably below the 3.0% threshold on average, we anticipate that interest rates will remain unchanged throughout 2024 which will provide a conducive environment for business growth. For Kenanga Group, the coming year will be a significant one. We are excited about the upcoming launch of our Kenanga SuperApp, which is intended to not only revolutionise the financial landscape, but to firmly secure our place in the future of the industry. At the same time, we also think that the time is right to kickstart our next phase of growth. In this context, we recognise there are opportunities beyond Malaysia especially in Southeast Asia, and thus, we will be embarking on a regional expansion strategy. Leveraging our expertise and leadership position, we will replicate our success in Malaysia in new geographies through our proven shared-risk model. For the last fifty (50) years, our journey as Malaysia’s leading and award-winning independent investment bank has been built on strong fundamentals, a commitment to responsible growth, and the unwavering support of our stakeholders. As we step into the next fifty (50) years and beyond, we are confident that our strategic focus on core business growth, digital innovation, and regional expansion will unlock new horizons for Kenanga Group and continue to deliver value for all our stakeholders. OUTLOOK ACKNOWLEDGEMENTS I would like to express my deepest gratitude and appreciation to our Founder Emeritus and Adviser, YM Tan Sri Dato’ Paduka Tengku Noor Zakiah Tengku Ismail, whose invaluable advice, guidance and leadership continue to serve as a wellspring of inspiration. I would also like to extend my heartfelt gratitude to the Chairman of our Board, YAM Tan Sri Dato’ Seri Syed Anwar Jamalullail, and to the rest of the Board of Directors, for their meticulous care and unyielding commitment to the highest standards of governance and integrity. These qualities consistently reinforce the core identity and principles that define Kenanga Group. As we navigate the complex landscape of 2023, I want to commend and thank every Kenanga Group employee for their steadfast commitment and hard work. In celebrating our remarkable fifty (50)-year journey, it is their dedication that has contributed to our enduring success. My sincere thanks also go to our esteemed business partners, clients, suppliers and all stakeholders who have stood with us throughout this journey to reach this significant milestone. Additionally, I want to acknowledge Bank Negara Malaysia, the Securities Commission Malaysia, and Bursa Malaysia Berhad for their invaluable guidance, and lastly, I extend my appreciation to our shareholders for their continued trust and support. Together, we look forward to the promising years ahead. DATUK CHAY WAI LEONG GROUP MANAGING DIRECTOR
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