GHL System Berhad Annual Report 2023

MANAGEMENT DISCUSSION AND ANALYSIS CONT’D 4.0 KNOWN RISKS (Cont’d) 4.6 Credit Risk (Cont’d) The current economic and geopolitical environment continues to challenge various industry sectors. To ensure a sustainable growth, the Group has taken various steps to enhance its credit risk management function. The Group regularly reviews its credit underwriting policies to ensure that the Group’s assets are safeguarded. Periodic Credit and Recovery reports that contain information on asset quality and risk factors are prepared and regularly presented to the Senior Management and the Board. This information is used to identify adverse credit risk trends, formulate corrective actions and fine-tune business strategies accordingly. 5.0 FUTURE PROSPECTS The Group believes, despite the global macroeconomic uncertainties, the 2023 upward trend of cashless spending will continue into 2024. The Group’s focus on high growth lines of business, such as omni-channel direct merchant acquiring is expected to contribute to the growth in revenue in 2024. The Shared and Solution Services businesses will also continue to enjoy a healthy pipeline of deals which will likely result in further growth. Notwithstanding the continued ASEAN recovery in travel, consumption and commercial activities, concerns remain around inflation and uncertain movement of interest rates. Geopolitical tensions and the ongoing conflict in Europe and the Middle East may impact global oil prices thus affecting the growth outlook of economies in our region. Despite these global headwinds, the Group’s diverse range of business pillars, merchant mix and geographical coverage continue to contribute to revenue growth driven by the growing adoption of cashless payments among ASEAN consumers for both their online and in-store transactions. Additionally, ASEAN governments’ push for digitisation for cross-border payments will be a significant catalyst for the Group’s future growth. The Group remains positive regarding the long-term potential of the ASEAN payments industry. We believe the trends of switching to e-payments and cashless channels will continue, hence providing a long runway for profitable growth for the Group in 2024 and beyond. 6.0 DIVIDENDS The Board of Directors has declared final single-tier dividend of 2.0 sen per ordinary share, amounting to RM22.8 million in respect of the financial year ended 31 December 2023, which will be payable on 10 May 2024, based on the latest number of ordinary shares. 15 ANNUAL REPORT 2023

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