My EG Services Berhad Annual Report 2020

MY E.G. SERVICES BERHAD Regisration No. 200001003034 (505639-K) 18 CAPITAL AND OPERATIONAL EXPENDITURE Keeping future business prospects and feasibility in mind, the Group continues to strategically and judiciously carry out relevant investments and expenditure in pursuit of sustainable growth in Malaysia and beyond. The Group’s capital expenditure (“ CAPEX u TUPPE BU 3. NJMMJPO JO ': '1 3. NJMMJPO 5IF Group’s operating expenditure (“ OPEX u XBT 3. NJMMJPO '1 3. NJMMJPO The trend of rising expenditures signify MYEG’s overall business activity growth, not just in terms of transaction volumes for existing services, but also increased expansion into new business opportunities across more operating markets. CAPEX OPEX Innovative technology and services revolving around IFBMUIDBSF BOE SFMBUFE QSPEVDU PGGFSJOHT /FX DPODFTTJPO TFSWJDFT *5 IBSEXBSF DPNQSJTJOH TFSWFST BOE DPNQVUFST Buildings and related works. 1FSTPOOFM SFMBUFE FYQFOTFT BOE PQFSBUJOH FYQFOTFT "EWFSUJTJOH BOE QSPNPUJPO FYQFOTFT Maintenance and operating expenses for MYEG’s building (“ MYEG Tower u Interest expense arising from the term loan to finance .:&( 5PXFS BOE Depreciation and amortisation charges. ASSETS AND LIABILITIES, CASH AND BANK BORROWINGS MYEG’s assets far outweigh its liabilities as asset position remains healthy on the back of increased current and OPO DVSSFOU BTTFUT GSPN UIF QSFWJPVT ZFBS XJUI PVS UPUBM BTTFUT BU 3. CJMMJPO BT BU %FDFNCFS '1 3. CJMMJPO 5IF (SPVQ T àYFE EFQPTJUT DBTI BOE DBTI FRVJWBMFOUT JODSFBTFE ZFBS PO ZFBS UP 3. NJMMJPO '1 3. NJMMJPO BT BU %FDFNCFS 4USPOH CVTJOFTT BOE EFWFMPQNFOU BDUJWJUZ GSPN .:&( JO ': MFE UP BO PQFSBUJOH DBTI áPX PG 3. NJMMJPO EVSJOH UIF SFQPSUJOH ZFBS '1 3. NJMMJPO /FU DBTI GSPN PQFSBUJOH BDUJWJUJFT XBT BU 3. NJMMJPO '1 3. NJMMJPO 5IF (SPVQ QPTTFTTFT TVGàDJFOU DBTI UP NFFU XPSLJOH DBQJUBM SFRVJSFNFOUT "T BU UIF FOE PG ': UPUBM CPSSPXJOHT DPOTJTUJOH PG DVSSFOU BOE OPO DVSSFOU TFDVSFE MPBOT BSJTJOH GSPN UFSN MPBOT BT XFMM BT VOTFDVSFE MPBOT DPNQSJTJOH SFWPMWJOH DSFEJU XBT BU 3. NJMMJPO '1 3. NJMMJPO "EEJUJPOBMMZ MPOH UFSN CPSSPXJOHT XFSF SFDPSEFE BU 3. NJMMJPO '1 3. NJMMJPO XIJMF TIPSU UFSN CPSSPXJOHT XFSF SFDPSEFE BU 3. NJMMJPO '1 3. NJMMJPO BT BU UIF FOE PG ': 8F DPOUJOVF UP TVTUBJO B IFBMUIZ EFCU UP FRVJUZ SBUJP PG UJNFT '1 UJNFT BUSINESS AND OPERATIONAL HIGHLIGHTS MYEG’s business model has enabled the Group to derive a measure of flexibility to adapt to the changing external NBDSP PQFSBUJOH FOWJSPONFOU $07*% BTJEF UIF (SPVQ JO SFTQPOTF UP DIBOHJOH NBSLFU GPSDFT DPOUJOVFE leveraging on its proprietary technologies, systems and platforms to introduce new services in Malaysia and beyond. MYEG continued to strengthen its marketplace leadership position and brand credibility as a trusted concession and DPNNFSDJBM TFSWJDF QSPWJEFS CZ QJPOFFSJOH OFX IFBMUIDBSF SFMBUFE TFSWJDFT CPUI JO .BMBZTJB BOE BCSPBE 5IF (SPVQ has also achieved various strategic collaborations that places it on a stronger stead going forward. 5IF WFOUVSF JOUP IFBMUIDBSF BOE IFBMUIDBSF SFMBUFE TFSWJDFT XBT UJNFMZ BT OPU POMZ EJE JU NFFU B QSFTTJOH NBSLFU needs, it also enabled the Group to increase its revenue streams while tapping on emerging market opportunities. *O +VOF .:&( .FEJDBM XBT JODPSQPSBUFE 5IF QSJODJQBM SPMF PG UIF OFX DPNQBOZ JT UP NBSLFU NFEJDBM QSPEVDUT and services including health screening solutions and management services to increase brand awareness and equity in new and current market demographics. MANAGEMENT DISCUSSION AND ANALYSIS REVIEW OF THE MACRO-OPERATING ENVIRONMENT (CONT’D)