PRG Holdings Berhad Annual Report 2020

12 PRG HOLDINGS BERHAD Chairman’s Statement cont’d On the retail side, due to the outbreak of COVID-19 pandemic since January 2020, tourists arrival in Singapore and Bangkok decreased significantly and this has deteriorated the overall consumer confidence and spending, thus, our sales has been affected. Corporate Developments As part of the Group’s continuing effort to streamline our business segments and dispose non-performing business, the Group has disposed of its subsidiary in Vietnam, and a property development company during FY2020. Outlook The world economy has been very much affected by the COVID-19 pandemic with no exception to Malaysia. However, we believe that commencing from 2021 onward, the property market will start to recover on the back of positive outlook for the economy, albeit at a gradual and cautious pace. The present situation of low interest rate, low house prices and incentives introduced by the Malaysia Government presents attractive opportunities for many to acquire property of their likes. Among the initiatives by the Government was the reintroduction of House Ownership Campaign (“HOC”), which include the Real Property Gain Tax exemption, stamp duty exemption, and removal of the 70% margin of financing limit. A six months loan repayment moratorium has also helped. In addition, an Overnight Policy Rate (“OPR”) cuts by Bank Negara Malaysia (“Bank Negara”) this year to its current low of 1.75% marks an unprecedented move. Management will be taking a very prudent approach before embarking on our next project. As the global economy recovers, lumber price is slowly creeping up. We expect the Group to see additional revenue in coming years as we will increase the harvesting of teak trees. In addition, the Group is looking into potential agriculture varieties to be planted on the vacant land post harvesting of teak trees. The Group is looking at short and medium terms crops planting as an additional income contribution in coming years. The Group is looking at short and medium terms crops planting as an additional income contribution in coming years.