PERFORMANCE MANAGEMENT DISCUSSION AND ANALYSIS REVIEWING THE MACRO-OPERATING ENVIRONMENT Global and domestic economies and societies have largely begun to return to normal after reeling from the profound effects of the COVID-19 pandemic which began in late FY2019, thanks to strong inoculation rates in FY2021 and early FY2022. However, the continued Eastern European conflict has resulted in supply chain disruptions and increased commodity prices, which subsequently impacted Malaysia’s business landscape. While these volatile situations may have risked restricting Malaysia’s growth prospects in FY2022, nevertheless, Malaysia’s diverse economic structure, strong fundamentals, good recovery momentum and its reopening of all economic sectors as it entered the endemic phase of the COVID-19 pandemic on 1 April 2022 have helped the country achieve a positive gross domestic product (“GDP”) growth. The country registered GDP growth of 8.7% in FY2022, representing a 22-year high and a strong improvement over FY2021’s 3.1% GDP growth. MYEG IN FY2022 Domestic growth was on the uptrend due to a strong economic performance in the fourth quarter of 2022 where domestic demand continued to be driven by private consumption supported by better labour market prospects and business confidence that remains positive. Amidst these operating and economic conditions, MYEG remained resilient by relying on its strong business fundamentals, while maintaining business and operational excellence in key business divisions. As MYEG entered FY2022 remaining cognisant of uncertainties, the Group ensured that it was always ready to constructively respond to any unexpected changes by pivoting its product offerings to ensure they are always fresh and relevant.The Group did not allow uncertainties to distract the growth trajectory of MYEG in FY2022 and remained committed to current and future growth objectives as well as invested in key projects to be brought to market such as blockchain-related services. This allowed the Group to consistently grow to achieve a strong earnings performance in FY2022, which was a new record for the Group, while consistently recording several accomplishments. MYEG’s strong business fundamentals continue to primarily come from its robust business model that enables agile responses to everchanging market forces. This has buoyed MYEG’s consistent progress in realising the organisation’s vision and mission while sustaining the creation of financial and non-financial values. The Group’s value creation abilities have always served a pivotal role in supporting stakeholders ranging from the government, to the business community and to ordinary citizens, and in the past couple of years, this has materialised in the form of pandemic-related healthcare services, which helped the nation combat the COVID-19 virus while keeping society healthy and safe. For the first quarter of FY2022, focus was still placed on healthcare services as they continued to drive activity during this early period of the reporting year. However, as Malaysia entered the endemic phase of the COVID-19 pandemic situation in April 2022, and with all economic sectors subsequently began removing restrictions and rapidly reopening, focus on the healthcare services began to congruently lessen, understandably so. This return to normal pre-pandemic market dynamics managed to offset the decreased spotlight on the Group’s healthcare services as other services that may have slowed down during the pandemic were revitalised once more as the broader economy began to gradually open up. These other services that returned to normal operating conditions included the e-service centres, which provide, among other things, services encompassing all aspects of the driving theory test under the driver’s licensing course. 19
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