Going forward, MYEG Philippines aims to continue strengthening its position as the leading one-stop e-Government services provider in the Philippines through the expansion of its service offerings for existing and new government agencies while at the same time, complementing its concession offerings with the introduction of innovative commercial products and services, including blockchain-based solutions by leveraging on the Zetrix platform. On the other hand, activity in the Group’s other overseas markets such as Bangladesh and Indonesia remained subdued during FY2022. The Group continues to closely monitor these markets for meaningful expansion opportunities. All in all, the Group is consistently working to grow its global footprint. Given MYEG’s solid and constructive progress in the Philippines, and its burgeoning collaboration with key Chinese government entities, the Group is determined to continue expanding in existing and potential international markets that hold a positive future for the Group’s ambitions, especially with the advent of Web3 technology. ROBUST SUSTAINABILITY GOVERNANCE MYEG’s Sustainability Working Group (“SWG”) formed in FY2021, remains an instrumental component within the Group’s sustainability governance structure, effectively managing key risks and opportunities of MYEG’s material environmental, social and governance (“ESG”) topics. The Group continues to develop and implement ever-improving sustainability plans and strategies that contribute towards MYEG’s short-term, medium-term and long-term sustainability. The Board and Senior Management, through the SWG, reviews and approves these plans and strategies accordingly, maintaining key oversight over MYEG’s material ESG topics. Notably in FY2022, MYEG established the Statement of Commitment to Addressing Climate Change Risks and Impacts that outlines the Group’s full climate change commitments, targets, plans, effects on the Group’s business model and initiatives pursued in relation to MYEG’s supply chain. The full statement can be read at https://www.myeg.com.my/investor-relations/governance. More information on sustainability-related disclosures is provided in the FY2022 Sustainability Statement on page 60 of this Annual Report. ECONOMIC OUTLOOK Economies worldwide have begun to positively recover from COVID-19, thanks to strong inoculation rates the past two years which have seen almost all economic sectors reopen in full capacity. However, Malaysia’s Ministry of Finance (“MOF”) does assert that the eruption of the Ukraine-Russia conflict in Eastern Europe has affected nations everywhere as they began to rebuild their economies and societies, including Malaysia. In lieu of this, the International Monetary Fund (“IMF”) revised their global economic growth forecast for 2023 to 2.9%, although a rebound to 3.1% in 2024 is also predicted. According to MOF, Malaysia is also expected to maintain a similar growth trajectory in FY2023, given other downside risks affecting the nation such as China’s moderated economic growth and tighter global monetary policies. Malaysia’s GDP growth is projected to moderately grow between 4% and 5% in 2023 according to MOF. Bank Negara Malaysia (“BNM”) states that GDP growth in 2023 will remain supported by domestic demand. MOF’s Budget 2023 also explains that a vibrant services sector, implementation of new and ongoing multi-year infrastructure projects as well as sustained exports will also contribute to Malaysia’s growth in 2023. The MOF also denotes that the domestic service sector is expected to grow by 5% in 2023, benefitting largely from sustained domestic demand in spite of a moderate global economic growth. The growth will continue to be mainly driven by wholesale and retail trade following the expansion in retail segment due to wider usage of e-commerce and rapid transition to digitalisation in line with efforts by the Government in creating a cashless ecosystem. These related prospects to MYEG’s business segments pose an overall positive outlook for the Group in FY2023, given that Web3 technology is rapidly growing worldwide, alongside the sturdy recovery of multiple economic subsectors that MYEG has services in. MANAGEMENT DISCUSSION AND ANALYSIS (cont’d) 26
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