My EG Services Berhad Annual Report 2020

ANNUAL REPORT 2020 21 Separately, on 3 August 2020, it was announced that MYEG Philippines reached a key milestone of 300 merchants POCPBSEFE UISPVHI JUT POMJOF TFSWJDF QBSUOFSTIJQ XJUI -BOE #BOL PG UIF 1IJMJQQJOFT 5IJT DPMMBCPSBUJPO XBT àSTU MBVODIFE JO /PWFNCFS These merchants comprise a range of government agencies, local government units, utilities, educational establishments and other government and private institutions. This milestone further underpins MYEG Philippines’ QPTJUJPO BT UIF MFBEJOH BOE QSFGFSSFE POF TUPQ QMBUGPSN GPS 'JMJQJOP DVTUPNFST UP OPU POMZ USBOTBDU XJUI UIF HPWFSONFOU at all levels but also to conveniently access a range of commercial products and services. While our strategic joint venture (“ JV ”) in Bangladesh remained relatively dormant in FY2020, our instrumental success in the Philippines and Indonesia in terms of technological development, service distribution and strategic collaborations mark a promising future for MYEG’s involvement in regional markets. STRENGTHENING BOARD OVERSIGHT AND CORPORATE GOVERNANCE In February FY2020, given the Group’s expansion and its business growth as well as the increasingly dynamic NBDSP PQFSBUJOH FOWJSPONFOU .:&( IBT DIPTFO UP FTUBCMJTI B EFEJDBUFE "VEJU $PNNJUUFF BOE 3JTL .BOBHFNFOU Committee in line with best practices as recommended by the regulator. The separation into two distinct but mutually supportive committees reflect the Group’s commitment and seriousness towards giving due importance and focus on audit and risk matters. With the formation of two separate committees, the Board would be better positioned to allocate stronger focus on these two key areas towards ensuring strong risk NJUJHBUJPO BQQSPBDI BOE B SPCVTU DIFDL BOE CBMBODF TZTUFN OUR OUTLOOK MALAYSIA’S ECONOMIC OUTLOOK 8JUI UIF XPSME DVSSFOUMZ SFFMJOH GSPN UIF HMPCBM CMBDL TXBO FWFOU PG UIF $07*% QBOEFNJD JO ': B TMVHHJTI economic growth is projected in the early stages of FY2021. However, overall international and domestic economic recovery is expected to be bolstered by the dissemination of vaccines among the population. The domestic outlook JT VOEFSQJOOFE CZ UIF BSSJWBM PG WBDDJOFT BOE UIF POHPJOH SPMM PVU PG NBTT JOPDVMBUJPO BHBJOTU $07*% 7BDDJOFT BSF expected to facilitate the eventual resumption of economic activity and normalcy. The aforementioned pandemic mitigation measures and optimistic financial forecasts are already starting to materialise JO ': #BOL /FHBSB .BMBZTJB SFQPSUFE UIBU UIF MPDBM FDPOPNZ SFHJTUFSFE POMZ B TNBMM EFDMJOF PG JO UIF àSTU RVBSUFS PG ': DPNQBSFE UP UIF DPOUSBDUJPO JO UIF GPVSUI RVBSUFS PG ': 5IVT XIJMF UIF JNQPTJUJPO PG MCO 2.0 and continued travel restrictions weighed on economic growth, the impact was less severe than in FY2020 as domestic demand picked up in FY2021. The domestic economy throughout the rest of FY2021 is also projected to be on an uptrend, with the Malaysian Ministry of Finance stating that with the anticipated improvement in global growth and international trade, the .BMBZTJBO FDPOPNZ JT QSPKFDUFE UP SFCPVOE CFUXFFO BOE JO ': "MTP UIF .BMBZTJBO HPWFSONFOU TFSWJDFT TVCTFDUPS JT QSPKFDUFE UP FYQBOE CZ JO ': Full domestic economic recovery will thus be underpinned by the resumption of economic activities globally and locally, as well as continuing large infrastructure projects. A rebound in the growth of major trade partners, as well as improving user and investor sentiment, will also support positive growth momentum in FY2021. STRATEGIC PRIORITIES MYEG will continue to leverage on its existing business strengths to adapt to the fluid operating environment expected in FY2021 and beyond. Our business model is robust, dynamic and agile, enabling a swift response to the external landscape and allows for innovation and the development of new services to meet changing market requirements or FNFSHJOH PQQPSUVOJUJFT XIJMF NBJOUBJOJOH PVS DPSF CVTJOFTT BT BO F HPWFSONFOU TFSWJDF QSPWJEFS .:&( JT BTTVSFE JO JUT DBQBCJMJUZ UP DPOUJOVF FWPMWJOH BDDPSEJOH UP NBSLFUQMBDF OFFET UIBU HSPX NPSF EJHJUBM IFBWZ CZ MFWFSBHJOH PO UIF JODSFBTJOHMZ JOUFHSBUFE F QMBUGPSNT BMSFBEZ JO QMBDF UIBU TFSWF B HSPXJOH OVNCFS PG DVTUPNFST in FY2020. The Group shall adopt a more proactive approach towards solidifying its future foothold in its operating NBSLFUQMBDFT BT B QSFGFSSFE EJHJUBM TFSWJDF QSPWJEFS XJUI B XJEF SBOHJOH TFMFDUJPO PG QSPEVDU PGGFSJOHT MANAGEMENT DISCUSSION AND ANALYSIS REVIEW OF THE MACRO-OPERATING ENVIRONMENT (CONT’D) PERFORMANCE