Serba Dinamik Annual Report 2021

Section 3 | Our Performance and Outlook 88 The next day, Brent crude oil – the often quoted global crude oil price benchmark – fell to US$9.12 per barrel, its lowest daily price in decades. Nevertheless, the second half 2020 was characterised by relatively stable prices as demand began to recover. In its latest outlook dated 13 October 2021, the US Energy Information Administration ("EIA") expects Brent crude prices to average averaging US$81 per barrel during 4Q 2021 or US$10 per barrel higher than its previous forecast. The higher forecast reflects EIA’s expectation that global oil inventories will fall at a faster rate than it had previously expected owing largely to lower global oil supply in late 2021 across a range of producers. In 2022, EIA expects that growth in production from OPEC+, US tight oil, and other non-OPEC countries shall outpace slowing growth in global oil consumption and contribute to Brent prices declining from current levels to an annual average of US$72 per barrel. In its latest Activity Outlook 2021-2023 , national oil corporation PETRONAS expects outlook for the O&G industry to remain challenging due to emerging fresh waves in the number of COVID-19 cases and prevailing uncertainties over OPEC+ production cuts in 2021. Against this backdrop, PETRONAS has undertaken purposeful measures to strengthen its resilience and steer the organisation towards a path to recovery. Committed to being relentless in our pursuit of becoming a more cost-efficient producer, PETRONAS contended that the measures will centre around evolving into a stronger, more customer-centric workforce which is committed towards the pursuit of growth strategies. Such cautiously optimistic tone is in sync with the current state of the Malaysian economy. Although the Malaysian economy expanded more quickly than expected on an annual basis in 2Q 2021, Bank Negara Malaysia ("BNM") has slashed its 2021 growth forecast to 3.0%-4.0% (from 6-7.5% previously) as unabated COVID-19 cases and new lockdown measures weighed on the outlook. However, with the prospect of eventual reopening and resumption of all economic sectors in tandem with Malaysia having achieved 90% vaccination rate among its adults population, the country can expect its economic growth to rebound to 6.0% and 5.8% as per projection of the International Monetary Fund ("IMF") and the World Bank respectively. CONCLUSION Even amid internal and external adversities, Serba Dinamik remains optimistic that it will show improvements in its financial performance, for both the top and bottom lines, backed by contracts secured across the globe. As opportunities do abound amid adversities, the Group has set its eyes on enhancing the ICT segment of its business by gradually reducing dependency on the Middle East while expanding into smaller markets in Central Asia and Africa. Not only that the Group is growing the ICT segment whilediversifyingitsbusinessoperationsgeographically, Serba Dinamik is expanding its reach outside the realm of O&G by embracing the business of renewable energy in its quest to become a global sustainable and environmentally responsible company. With 2021 almost coming to a close the Group is optimistic about growth prospects for 2022 especially with the easing of movement constraints and borders re-opening which will provide a major boost to economic activities of sorts. I would like to take this opportunity to extend my heartfelt gratitude to my fellow Board members for their unceasing contribution towards the company’s continued success. On behalf of the company, we would like to thank our valued customers, business associates, partners, bankers and staff as well as our loyal shareholders for their invaluable support and confidence in Serba Dinamik throughout the years.