MKH Berhad 217 40. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR AND SUBSEQUENT EVENTS (CONT’D) T he Group operates in a few geographical locations, mainly in Malaysia and Indonesia. The impact of COVID-19 pandemic on the Group’s business activities varies in these geographies. The disruption of its operations during the financial year due to Movement Control Order (“MCO”) and the relevant financial impact has been taken into account in the financial results of the Group: (i) In response to this pandemic, the Malaysian Government has implemented MCO from 18 March to 3 May 2020 as a measure to curb the spread of COVID-19 which requires the closure of all government and private premises except for those involved in the provision of essential services or products. Subsequently, various types of MCO such as Conditional MCO, Recovery MCO and Enhanced MCO have been introduced within Malaysia and numerous Standard Operating Procedures (“SOP”) have been introduced by the Malaysian Government. On 15 June 2021, the Malaysian Government introduced a four-phase National Recovery Plan with three specific threshold indicators that will decide if and when COVID-19 pandemic restrictions are lifted in stages. A s a result of the MCO, the Group has temporary shut down its premises and the disruption of its operations during the financial year due to MCO. The Group has proper SOP put in place such as social distancing, temperature checks, installation of air purifier in office, installation of plasma ionizer system in split unit air-conditioner and antigen self-test by all employees in bi-weekly basis. T he outbreak of COVID-19 has caused significant disruptions to the retail and hotel industry, and as a result, the Group reported lower revenues from property investment segments. In addition, the adverse economy impact resulted from the COVID-19 also led to fair value losses of the investment properties of the Group. F or hotel segment, the occupancy and revenue levels are being hit hard as widespread travel restrictions and government-imposed lockdowns to contain the spread of the virus have triggered a collapse in both leisure and corporate travel demand. T he progress of the on-going property development projects were halted during MCO imposed by the Malaysian Government and thus the revenue recognition of these projects were impeded. Upon lifting of the MCO restrictions, the Group is now permitted to continue with its normal operations without any form of restrictions or interruptions in the daily activities save for the implementation and observation of the required SOPs and conditions which remain in place. Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2021
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