Tropicana Corporation Berhad Annual Report 2020

Market Outlook ANNUAL REPORT 2020 PERFORMANCE REVIEW TROPICANA CORPORATION BERHAD The International Monetary Fund (“IMF”) reported that global prospects remain highly uncertain one year into the pandemic. Global growth is projected at 6% in 2021, stronger than the sharp -3.3% in 2020 which was much worse than during the 2008/09 financial crisis. The upward revision reflects additional fiscal support in a few large economies, the anticipated vaccine-powered recovery in the second half of 2021, and continued adaptation of economic activity to subdue the outbreak. The outlook depends not just on the outcome of the battle between the virus and vaccines — it also hinges on how effectively economic policies deployed under high uncertainty can limit lasting damage from this unprecedented crisis. Closer to home, Bank Negara Malaysia (“BNM”) projected that Malaysia’s gross domestic product (“GDP”) growth stood between 6% and 7.5% in 2021, slightly higher than 5.6% as reported in 2020. The key factors supporting the growth recovery are improving external demand amid a technology upcycle, less stringent containment measures and the COVID-19 vaccine roll- out, a gradual improvement in labour market conditions as well as a pickup in production from new and existing manufacturing, mining and construction facilities. The property market has remained resilient throughout the pandemic, being a stable investment. Real estate is a long-term investment and value will not fall off a cliff in most circumstances, but is subject to further yield compression in the short term. The road to recovery moving into 2021 is still an uphill journey and expected to experience a more gradual recovery supported by various stimulus provided by the government, such as the Home Ownership Campaign (“HOC”), real property gains tax exemption unveiled in the short-term Economic Recovery Plan (“PENJANA”), stamp duty waiver to the secondary market and Budget 2021 will help spur the market growth. Ultimately, we hope the vaccine will soon be available for all sectors to get back on track in the new normal. MANAGEMENT DISCUSSION & ANALYSIS 044 045 Tropicana Gardens, at the heart of Tropicana Indah in Kota Damansara