My EG Services Berhad Annual Report 2019

MY E.G. SERVICES BERHAD [Registration No. 200001003034 (505639-K)] 16 MANAGEMENT DISCUSSION AND ANALYSIS (CONT’D) ENHANCING TECHNOLOGICAL CAPABILITY Beyond market expansion and brand development, our ability to create and offer product offerings relies on technological capability. Hence, we have continued to invest in technology, especially in blockchain and other emerging trends. It is essential that we stay at the forefront of the technological curve; leading as an innovator and developer, rather than emulator and adopter. In this regard, we view talent as vital for technology development and innovation. Hence, we continually seek to attract digital talents to be part of the Group and FP2019 was no exception. In addition, during the period, we continued to enhance the Group’s infrastructure and facilities towards creating a more conducive environment to facilitate the development of new products and services. Our efforts have proven fruitful as evidenced by the flow of solutions that have been brought to market to address prevailing pain points over the years, with more innovations in the pipeline being primed for commercial adoption once viable. Even as we develop our internal capacity to innovate, we also look outside our organisation for cutting edge technologies. The Group’s investments in Chinese companies operating in the AR, VR and mixed reality space, for example, is predicated on our belief in the potential of these technologies to disrupt the digital sphere in the years to come. At the same time, we can play a part in enriching Malaysia’s digital space via transfer of knowledge and expertise to the country. The Group continues to be on the lookout to participate in the development of pioneering innovations through potential collaborations with a broad-range of partners, be it commercial entities or other institutions like universities. Being involved in emerging technologies, some of which may still be in their infancy today, ensures that the Group remains well-poised to seize prospective opportunities to lead the way in the application of such technologies in the markets where we operate. BRAND BUILDING & CONSUMER ENGAGEMENT While our brand reputation remains positive, we have continued to invest in bringing the MYEG brand close to customers, notably in Malaysia. The Group’s branding and marketing efforts have centred on using high-visibility mediums with mass reach and targeted activities with selected stakeholders. The goal remains to continue reinforcing MYEG’s position as the preferred channel for e-government and digital commercial services in the country’s where we operate and to fulfil our role in contributing to nation building and in upholding our position as a responsible corporate citizen. OUTLOOK AND PROSPECTS Certainly, we share the growing concerns seen across the world over the significant socio-economic impacts brought on by the COVID-19 virus, which broke out in China in early 2020 and rapidly evolved into a global pandemic. The spread of the virus has adversely affected many economies, countries and lives all over, and Malaysia has not been spared. That the outbreak of the COVID-19 virus will take a considerable toll on economic growth both at home and abroad has become the consensus view, prompting governments worldwide to unveil stimulus measures to counter the fall- out. The prospects and timing of a recovery in the world economy are likely to be tied to the success of ongoing global concerted efforts to contain the spread of the virus. We undoubtedly recognise that the trajectory of the world economy in the near-term will have an influence on the outlook for our businesses across all the markets where we operate and hence, on the Group’s eventual financial performance for the current financial year. Yet, to be sure, as a provider of services delivered over a digital platform, the Group has a role to play that has become even more critical in these difficult times. We offer users a fast, secure and convenient way to access essential services with complete peace of mind, without having to leave the safety of their premises and risk possible exposure.