My EG Services Berhad Annual Report 2019

MY E.G. SERVICES BERHAD [Registration No. 200001003034 (505639-K)] 14 MANAGEMENT DISCUSSION AND ANALYSIS (CONT’D) Total borrowings, comprising current and non-current secured loans arising from term loans as well as unsecured loans comprising revolving credit, was at RM176.0 million as at the end of FP2019 (FP2018: RM127.09 million). Long- term borrowings stood at RM132.57 million (FP2018: RM94.68 million). Short-term borrowings stood at RM43.43 million (FP2018: RM32.41 million). The Group maintained a healthy debt-to-equity ratio of 0.34 times (FP2018: 0.36 times). BUSINESS & OPERATIONAL HIGHLIGHTS In FP2019, MYEG continued to leverage on its core business strengths. Our strategic focus has been on expanding our business model across multiple markets and leveraging on our existing platforms to offer a wider range of solutions to more customers. We have continued to promote MYEG in all key markets as an enabling “bridge” between consumers, businesses and governments. We focused on driving the key message and value proposition of how MYEG delivers safe, secure and hassle-free channels that provide accessibility, convenience and affordability to consumers and businesses. As in previous years, the Group has leveraged on proprietary, homegrown technologies as well as access to other innovations through investments in other technology companies, both locally and abroad. MYEG has pursued internal product development towards creating new service offerings to customers in established markets, while also introducing proven services from certain existing markets into new markets. By staying true to our business objectives, we have achieved noteworthy positive results across the various markets that we operate in. +BOVBSZ TBX .:&( TFDVSJOH SFHVMBUPSZ BQQSPWBM GPS UIF AJ1BZ&BTZ FMFDUSPOJD NPOFZ BQQMJDBUJPO 0VS DPVSJFS service licence was also renewed which is important in providing an end-to-end service to customers. The same month saw us further strengthen our leading position in the Philippines when we launched MYEG Insurance, an online insurance portal that allows consumers to purchase a wide range of insurance coverage packages online based on their specific coverage requirements. MYEG Insurance complements our existing services in the Philippines. It strengthens our value proposition towards delivering a more comprehensive range of solutions to customers that can be accessed anytime and anywhere. In April 2019, we continued to look to China in broadening our involvement in the high-potential areas of VR, AR and AI. The Group announced the investment of RMB10 million for a 3.03% stake in China-based education technology DPNQBOZ +JOHMF .BHJD #FJKJOH 5FDIOPMPHZ $P XIJDI TQFDJBMJTFT JO FEVDBUJPOBM FRVJQNFOU BOE TPGUXBSF The acquisition will provide MYEG with access to a wide range of proprietary VR, AR and AI technologies, which can be tapped not only to enhance our portfolio of offerings, but also to potentially revolutionise user experience and service delivery in the future. Beyond education, the commercial application of VR, AR and AI are numerous. +VOF TBX .:&( UBLF BOPUIFS TJHOJàDBOU TUFQ JO QFOFUSBUJOH UIF .BMBZTJBO àOUFDI JOEVTUSZ XIFO .:&( Islamic Finance was incorporated to undertake Islamic financial lease activities and other Islamic credit provision offerings. The growth of the Islamic finance sector in Malaysia has been encouraging in recent years and is tipped to accelerate in the years to come, boosted by Malaysia’s expanding muslim population and increasing awareness and understanding of services among Muslims and non-Muslims. Our venture into the Islamic finance segment is timely and we foresee ample opportunities for the bundling of Shariah- compliant offerings with our existing service portfolio, thus adding a new dimension to the Group’s value proposition in reaching underserved markets *O +VMZ UIF .BMBZTJBO HPWFSONFOU T SFBDUJWBUJPO PG UIF BVUPNBUJD GPSFJHO XPSLFS SFQMBDFNFOU QSPHSBNNF XBT B positive catalyst for the foreign worker ecosystem in general and for the Group’s burgeoning recruitment / matching TFSWJDFT VOEFS .:&( +PCT JO QBSUJDVMBS