PRG Holdings Berhad Annual Report 2020

19 Annual Report 2020 Management Discussion and Analysis cont’d The outbreak of the COVID-19 has adversely affected the global supply chain. The uncertainty of the global economies, unresolved trade war, volatility in currency, disruption of global supply chain, and the intensifying regional business competition have made our operating environment very challenging. The Group stays abreast to the changes of geo-political landscape globally and adjust our business strategies accordingly to safeguard the assets of the Group as well as enhancing its return to shareholders by strengthening our business and/or disposing non-contributing businesses. FUTURE PROSPECTS The global outlook remains bleak as the pandemic resurgence in many countries poses difficult economy versus health decisions for many governments throughout the world. Also the ongoing trade war, volatility in currency, disruption in global supply chain and the intensifying regional business competition have made our operating environment extremely challenging and difficult to predict. The Global vaccination programme has been rolled out since the beginning of year 2021, the efficacy of the vaccines as well as the speed and coverage of the vaccination programme are vital to the reopening of borders around the world. In view of the increasing pandemic risk, the manufacturing and retail segments are continually reviewing the demand and supply situations and cost mitigation measures to ensure business continuity and longer term sustainability. As the segments reorganise themselves to meet the operating environment of the new normal, the segment are optimistic that they will prevail. The property market in Malaysia remains challenging with issues such as affordability, slower economic growth, high levels of unsold units as well as the property supply-demand imbalance. Fear over the impact of the COVID-19 pandemic on the economy slowdown and oversupply situation is also delaying big-ticket item purchases as consumers take a wait-and-see approach. The Group will continue its focus on affordable property projects and believe that the affordable properties will be in demand especially in the prime areas of Selangor and Kuala Lumpur. We hope with the OPR reductions and economic stimulus package announced by the Government (including the re-introduction of HOC and stamp duty exemption) will spur a demand in purchase of properties. In view of the current challenging business environment and further impact by the COVID-19 pandemic, the Group will remain cautious in planning and continuously capitalising its strengths to generate sustainable revenue from its existing or potential new businesses via mergers and acquisitions and/or strategic alliances and solidify strong customer focus to create and deliver sustainable value for our stakeholders. Dato’ Lua Choon Hann Group Executive Vice Chairman