ANNUAL REPORT 2021 31 PERFORMANCE As before, MYEG will continue to leverage on strategic partners to drive its blockchain agenda. The partnerships formed in realising the Zetrix vision mark the first of many more collaborations that will pave the way for gamechanging solutions to emerge. Ultimately, the intention is to develop more blockchain technology applications and services towards penetrating more business/economic sectors and to benefit local and international communities. Aside from healthcare and blockchain, other products and services under MYEG’s platform also exhibit promising potential. With the reopening of international borders and travel, MYEG’s immigration services – be it in relation to job matching, insurance or work permits, should consequentially see an upturn in momentum. With macroeconomic conditions improving and demand for foreign worker housing rising, the Group also endeavours to progressively expand capacity to accommodate more workers through the MyStay programme in FY2022 and beyond. In addition to completing a new hostel in Shah Alam, planning and works related to the construction of a facility at the Tanjung Langsat Industrial Complex in Johor are also set to resume. The Group will also continue to identify and acquire vacant land or properties that are suitable for conversion into foreign worker hostels in target locations across the country. Immigration services remain an important segment to MYEG and the Group is committed to further strengthening its leadership in the space and to bring more innovative and holistic solutions to the nation. In view of this, at the end of December 2021, MYEG announced that MYEG Capital had entered into a Share Sale Agreement with S7 Holdings Sdn. Bhd. (“S7”) for the purchase of 118,000,000 ordinary shares of S5 Holdings Inc. (“S5”), representing 10% of the issued and paid-up share capital of S5 from S7 for a purchase consideration of RM86.5 million. With the acquisition, MYEG Capital now holds a 20% interest in S5. S5 Group is a global integrated security solutions provider, delivering real solutions and advances to both governments and enterprises. MYEG remains optimistic that, as a market leader in the area of immigration security and control systems, the acquisition of is well-placed to provide the necessary solutions to support and enable MYEG and the Malaysian government to attain national security goals while for S5 MYEG’s established track record, experience and capabilities can be leveraged to enhance its performance and generate synergies. BELI, as an e-commerce platform is progressively evolving into a q-commerce (also known as quick commerce) channel to better cater to rising consumer expectations for convenience and immediacy. This will be achieved through in-house fleet optimisation and micro-fulfillment hubs. The Group aims to open more stores within the next 1-2 years in high-density suburban neighbourhoods nationwide. To support these and other future initiatives, the Group remains in a fundamentally sound financial position, bolstered by strong internal cash flow generation and with options to pursue, if deemed appropriate and timely, relevant corporate exercises towards the realisation of MYEG’s objectives. We ultimately view that our forward-thinking strategic priorities cultivate a strong influential force in guiding MYEG’s key business strengths towards a positive growth-oriented direction throughout FY2022. Combined with sustainable, mutually-beneficial stakeholder collaborations with governments, corporations and communities, MYEG’s Board retains the cautiously optimistic viewpoint that, barring any unforeseen circumstances, the Group will continue to tread the path of strong growth, domestically and internationally, in the year ahead. MANAGEMENT DISCUSSION AND ANALYSIS REVIEW OF THE MACRO-OPERATING ENVIRONMENT (CONT’D)
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