PERFORMANCE On behalf of the Board, we are pleased to present to you Destini Berhad (“Destini” or “the Company”) and its subsidiaries (“the Group”) Annual Report and Financial Statements for the financial year ended December 31, 2022 (“FY2022”). Executive Chairman and Management Discussion and Analysis Dear Valued Shareholders, OVERVIEW The year 2022 came with a sense of optimism as economic recoveries were thought to be well underway after COVID-19 lockdown measures were eased while greater global vaccination coverage was achieved. However, despite the optimism, global economic turbulence continued and dampened forward progression as many countries faced rising inflation from geopolitical tensions and vulnerabilities in the global supply chain. The International Monetary Fund forecasted global inflation to slip to 6.6% in 2023 from 8.8% in 2022. This will also be in tandem with a moderation of global economic growth to 2.9% in 2023 from 3.2% in 2022. Closer to home, Malaysia’s Gross Domestic Product (“GDP”) is expected to dip 4% in 2023 from the softening of the economic landscape from its rise of 8.7% in 2022 compared to 3.1% in 2021. Foreseeing this, policymakers are expected to tighten monetary and fiscal policies to restore economic stability and reduce cost of living pressures. During the year, the COVID-19 pandemic shifted into an endemic and led to the easing of lockdowns and travel restrictions which led the Group being able to resume its operations to full capacity by the end of 2022. Although many economies were returning back to normal, Destini’s operational environment faced various challenges that arose from macroeconomic and geopolitical factors. OPERATIONAL OVERVIEW The year under review was shaped by the relaxing of COVID-19 pandemic restrictions and the revival of many economies. Albeit a slower pace on the revival of the industries Destini has a presence in, the Group was able to secure several contracts in 2022. Below are the list of major contracts and agreements that the Group inked during the year in review: ⊲ Aviation • Destini Prima Sdn Bhd (“DPSB”) accepted a letter of award from the Ministry of Defence (“MINDEF”) for the extension of an existing contract to provide maintenance, repair and overhaul (“MRO”) services and the supply of safety and survival related equipment to the Royal Malaysian Air Force (“RMAF”) for RM88 million. • MINDEF had also awarded DPSB a RM0.99 million contract to supply MRO services and the supply of component and spare parts for safety and survival equipment to the Malaysian Army’s Aviation Wing. 33 ANNUAL REPORT 2022 DESTINI BERHAD
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