2020 UEM Edgenta Annual Report

• GDP contraction in 2020 – 5.4% 3 • In Singapore, we have a presence in the healthcare support sector via hospital support services POSITIVE NEGATIVE • Use of technological innovations • Funding support from the Government • Appreciation for front line healthcare workers • Resources are stretched • Medical tourism is curtailed severely • Outpatient follow-up appointments are being deferred • Pharmacy inventory management is affected SINGAPORE How the healthcare sector was impacted by COVID-19: • GDP contraction in 2020 – 5.6% • In Malaysia, we are involved in all our core businesses, providing engineering maintenance services, waste management, laundry, housekeeping & cleaning, portering, sustainability and digital solutions for 68 hospitals and healthcare facilities. We also manage more than 3,300 km of highways and roads, provide facilities management at more than 300 buildings and offer consultancy services for various infrastructure projects POSITIVE NEGATIVE • Increase demand for sanitisation & disinfection services • Potential to embark on new services such as COVID-19 screening services • Ability to support the Government with a cloud-based platform to assist the National CPRC • Ability to launch new digital healthcare solutions such as QuickMed and Wellthily • Increased cost of healthcare support • Overburdened healthcare system • Reduction in work packages for infrastructure maintenance • Deferment of non-critical works, including mega projects MALAYSIA How these sectors were impacted by COVID-19: 1 Source: World Bank 2 Source: Bank Negara Malaysia 3 Source: Singapore’s Ministry of Trade & Industry (“MTI”) UEM EDGENTA BERHAD 52 Management Discussion & Analysis OUR OPERATING ENVIRONMENT A. STRATEGIC REVIEW Border closures, business shutdowns and the need to maintain physical distancing in order to contain the COVID-19 pandemic severely reduced global manufacturing and disrupted supply chains with universal effect. The global economy is estimated to have contracted 4.3% 1 in 2020 while the impact on individual countries varied according to how quickly and effectively the pandemic was contained. Malaysia’s Gross Domestic Product (“GDP”) shrunk by 5.6% 2 with the construction, mining and services sectors posting the biggest declines. At UEM Edgenta, our Healthcare Support and Infrastructure Services divisions faced operational headwinds from escalating costs from consumables (PPE and labour, overtime) and lower work packages arising from the MCO.