ANNUAL REPORT 2023 19 REVIEWING THE MACRO-OPERATING ENVIRONMENT Looking back at 2023, the term most commonly-used by economists to characterise the year that transpired was ‘resilience’. The world economy indeed proved resilient in maintaining a positive trajectory despite challenges that persisted in the background, such as geopolitical tensions amidst the outbreak of conflict in the Middle East and the lingering Russia-Ukraine war as well as unprecedented monetary tightening to combat inflation. Nevertheless, economists pointed out that, on the whole, economic growth was generally subdued and uneven in 2023, with divergent fortunes seen for different sectors and regions, leading influential organisations like the International Monetary Fund to describe the global economy at one point as one that was “limping along, not sprinting”. In Malaysia, the economy was also defined by resilience in 2023 amid the uncertain global landscape. Overall GDP growth came in at 3.7% for the year. On the domestic front, the continued recovery in economic activity and labour market conditions supported growth in 2023 while the growth performance was reinforced by a resilient external position. The current account surplus for the year was sustained at 1.2% of GDP, with the country’s external debt position declining. Headline inflation moderated to 2.5% while among other key economic indicators, the unemployment rate declined to pre-pandemic levels while the labour force participation rate reached a historic high in 2023. MYEG IN FY2023 Economic performance aside, one trend that has continued to accelerate worldwide is that of digital transformation. Malaysia and the rest of the Asian region are no exception. As public and private sector players rapidly adopt digital solutions to stay ahead of the competitive curve, MYEG has successfully capitalised on multiple opportunities to meet growing market needs for innovative solutions of real-world commercial value. Through its wide range of product and service offerings, the Group’s comprehensive system and deep-rooted presence in the regional e-Government domain continued to advance in 2023. Beyond e-Government, MYEG also continued to expand its reach into other commercial segments, not only at home but also further ashore to other markets across the region. Through its Layer-1 blockchain platform Zetrix, now having reached its two-year mark since the launch of its mainnet in April 2022, MYEG has redoubled efforts into building and commercialising innovative Web3 services that offer use cases of genuine utility for all levels of society. Since the inception of Zetrix, several pioneering decentralised applications have already been implemented to help to revolutionise the way governments, businesses and individuals connect domestically and across borders. With the successful integration of Zetrix with China’s national Xinghuo BIF blockchain infrastructure and the stream of new Web3 innovations that are being deployed regularly on the platform, MYEG has taken a proactive approach in adapting to fast-changing market needs and in aligning itself with the global digital transformation agenda. The Group’s financial performance in 2023, with earnings reaching a new record high, not only reflects the good progress in the acceptance and adoption of its blockchain offerings, but is also a sign of what is to come in future years even as MYEG continues to lead the way as an early mover in the region’s Web3 revolution, leveraging on Zetrix’s distinctive recognition as the International Supernode of China’s Xinghuo blockchain as well as a fundamental component of Malaysia’s national blockchain infrastructure. From the perspectives of the governments and service providers, they stand to reap the benefits of reducing costs, increasing efficiency and enhancing transparency through effective inclusiveness of adopting blockchain solutions. MYEG is in a strategic position to partner with any jurisdiction to pave the way for a more transparent, efficient, secure, and trustworthy service delivery and commercial environment. The Group remains steadfast in pursuing the evolution of its business model from an e-government services provider to offering cross-border next-generation applications, leveraging on its blockchain technology capability. More details on MYEG’s FY2023 business and operational highlights can be found in the Highlights and Achievements section of this Management Discussion and Analysis. MANAGEMENT DISCUSSION AND ANALYSIS PERFORMANCE
RkJQdWJsaXNoZXIy NDgzMzc=