Integrated Annual Report 2024 SECTION 2 • MESSAGES FROM OUR LEADERS 21 Global economic growth is expected to remain stable in 2025, supported by a gradual decline in interest rate amid moderate growth in world economies. Despite that, the aluminium industry may continue to face volatilities. The US administration’s announcement of a 25% tariff on aluminium imports has already sparked an initial market reaction, leading to higher aluminium prices and an increase in the US Midwest premium. While the US is a net importer of aluminium, this tariff will likely result in increased costs for US consumers, as the supply gap still necessitates reliance on external sources. While it is too early to determine the long-term impact on global metal flows and regional pricing, Press Metal’s direct exposure to the US market remains minimal. On a positive note, tight alumina supplies are expected to ease further in 2025, thanks to the start-up of new alumina refineries and the expansion of existing facilities. This should alleviate some of the cost pressures faced by aluminium producers. Furthermore, demand for aluminium is projected to grow steadily in the coming years, fuelled by the rapid expansion of green industries such as EVs, renewable energy, transmission and storage. These sectors represent significant growth potential, as aluminium’s lightweight and recyclable properties make it a critical material for sustainable technologies. The shift of manufacturing operations to the ASEAN region, driven by the “China Plus One” strategy and rising geopolitical tensions in other regions, is expected to continue. This trend is likely to boost demand for local and regional sources of aluminium, further strengthening SEA’s position in the global supply chain. In summary, while the aluminium industry faces challenges from macroeconomic and geopolitical factors, the growing demand from green industries and the regionalisation of supply chains present significant opportunities. Meanwhile, global aluminium supply constraints will remain a key factor in stabilising aluminium prices. Press Metal is well-positioned to capitalise on these trends, leveraging our low-carbon aluminium solutions and strategic investments to drive sustainable growth in 2025 and beyond. APPRECIATION I would like to take a moment to express my deepest gratitude to everyone who has contributed to Press Metal’s success. First and foremost, I want to thank our incredible team — the heart and soul of Press Metal. Your hard work, passion, and commitment to excellence have been instrumental in achieving our milestones. Each of you has played a vital role in shaping our success. To our valued shareholders, thank you for your continued trust and confidence in Press Metal. Your support has enabled us to pursue ambitious growth strategies, invest in sustainable innovations, and deliver strong financial performance. We remain committed to creating long-term value for you and are grateful for your steadfast belief in our vision. Our partners and suppliers are integral to our success and we deeply appreciate the strong relationships we have built over the years. We look forward to continuing our journey together, driving innovation and sustainability across the aluminium value chain. I would also like to give thanks to our esteemed Board of Directors for your guidance, wisdom and strategic oversight. Your leadership has been invaluable in steering Press Metal through a complex and rapidly changing landscape. Your insights and advice have helped us stay focused on our long-term goals while adapting to today’s challenges and tomorrow’s opportunities. Once again, thank you to all for your contributions and I look forward to your continuous support. TAN SRI DATO’ KOON POH KEONG Group CEO Management Discussion and Analysis by Group CEO MARKET OUTLOOK
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