KEY MESSAGES The MISC 2050 strategy is premised on turning challenges into opportunities and we have identified two opportunity pillars that are aligned with our capabilities: Renewable Energy and Waste-to-Value. PRESIDENT/GROUP CEO’S REVIEW MISC Berhad 34 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 35 BACK TO PRESENT – OUR FOCUS IN 2022 We have come to the crossroads of putting the tough year that 2021 has been, behind us and we look forward to the year 2022. We do not expect the year ahead to be a bed of roses, in fact far from it. Challenges and restrictions will continue to constrain the global supply chain, and this will remain the largest hurdle for global economic recovery. For the MISC Group, it will be the biggest obstacle in our path ahead. In my estimation, it will take another year or so for pandemic-related impacts to ease off, as the world transitions into an endemic phase. We are prepared for another year when impacts will continue to be felt throughout our projects and operations. Global capital markets will remain volatile, swinging between extremes. It goes without saying that we must be prepared for all these. However, the silver lining is predictions from analysts that oil and gas prices will continue to find its footing and stabilise, with a likely upward trend. Climate change and energy transition will have an even greater bearing on investment decisions and access to capital. ESG factors and risks associated with climate change and energy transition will continue to dominate how we do business. What we do expect to change in 2022 is the risk of not managing climate change to heighten. Businesses that do not have a strong ESG value creation narrative will begin to feel the real impacts of an unsustainable business model, as their access to funding, working with credible vendors and customer share will dwindle. For the present moment, MISC’s priorities in 2022 will be to challenge boundaries and to look at fresh ways of doing things as we seek out new areas of growth within our current portfolios. Having taken a breather from growing actively in 2021, we will restart our growth engine in 2022. At the same time, we also need to be mindful in assessing the risks of these new opportunities to ensure that they will continue to generate predictable, secured and recurring cash flow, and provide us with an adequate return on all our investments. Fortifying our core will remain a key theme in 2022. Maintaining our focus in developing our leadership bench strength and to expanding our capability and capacity for new growth areas are absolutely paramount to us. Another imperative for the year ahead is pushing through with our digital strategy, which encompasses two aspects. The first is to continue with our internal transformation agenda to become a more data-driven organisation, as I highlighted earlier. Many have often asked me whether we have a group-wide digital strategy. My answer? Our triple transformations that we initiated in 2021. Even though each transformation, be it the financial transformation, the procurement transformation, or the document control transformation, does not sound very technologically-driven, collectively, and viewed as an ecosystem, these three transformations will form the backbone of our quest to be a truly data-driven organisation. Essentially, we are seeking to re-engineer our digital platforms, our process flows and our people’s capacity in an integrated manner. These transformations will take us up to 2023 to complete. I cannot emphasise the importance of this internal strategic priority. The second aspect of our digital strategy covers our investments in three digital start-ups that are harnessing the power of IR4.0 to change the way we operate our ships. At the same time, we are investing in upskilling our entire workforce at sea and shore to operate these new technologies and to be future ready. Underlying all these is our mantra to continue keeping things sweet and simple in 2022. Life is sufficiently complicated and let’s not add to it further! It makes sense to continue with our approach of sharpening our focus to just a few things with the intention of extracting maximum impact and outcomes. I am aware that we all stepped into 2021 hoping that the pandemic would end, but these hopes were dashed as new variants fuelled its continuation. Despite this, I would like to encourage everyone to remain optimistic about the future despite how hard as it may seem. Personally, I believe that 2022 will see the world coming to grips in dealing and living with COVID-19. When we look at the new covid variants such as Omicron, as infectious as they are, they have also been less fatal. The signs are there that COVID-19 is shifting towards an endemic disease that we can treat and manage. Over time, activities will fully resume in this new norm without the starts and stops that we have been subject to thus far. 2022 will be a transitional year with the new normal kicking in sometime in 2023. This is my humble yet firm opinion on the situation, and I urge everyone to stay positive. A SALUTE TO THE MISC FAMILY Having been through two tough years together, I would like to extend my deepest appreciation and gratitude to every single member of the MISC Family for stepping up to the plate and coming through to deliver our commitments and promises to our stakeholders. Specifically, I want to thank all of you for looking out for each other. Having each other’s back. To our front liners, although I may sound like a broken record, I would like to repeat that no words can express our gratitude for your unfailing commitment to continue manning our fleet of vessels, yards, projects and the ports and terminals we manage in the face of great adversity. Our deepest thanks go to you for your fortitude and determination, despite the trials and tribulations. Of course, we cannot forget how our silent heroes in the background who have enabled us to continue performing – these are our global ICT teams who have kept our systems up and running throughout another year when a lot of work has been done remotely, our HR teams who have supported the health, safety and well-being of our people, and our finance teams who not just ensured that our business accounts remain in order, but also get wages and salaries to our people on time. To all of you who form the MISC Family, thank you for your ultimate display of our cultural beliefs. You have indeed epitomised our Shared Values of Loyalty, Integrity, Professionalism and Cohesiveness. FINAL WORDS On behalf of the Group, I would also like to extend our sincere appreciation to our valued shareholders, customers and partners for their unwavering trust, faith and support to MISC. Our gratitude also goes to the MISC Board of Directors for their steadfast commitment in upholding the highest standards of governance and for their insightful and valuable guidance through the choppy waters of the past year. As we move on with our journey in 2022, we will resolutely focus on achieving our strategic priorities, as we continue Moving Energy to Build a Better World. Onward and forward! DATUK YEE YANG CHIEN PRESIDENT/GROUP CEO The signs are there that COVID-19 is shifting towards an endemic disease that we can treat and manage. Over time, activities will fully resume in this new norm without the starts and stops that we have been subject to thus far. 2022 will be a transitional year with the new normal kicking in sometime in 2023. This is my humble yet firm opinion on the situation, and I urge everyone to stay positive.
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