2020 UEM Edgenta Annual Report

B. BUSINESS REVIEW • Proactive measures in managing cost while ensuring health, safety and well-being of employees • Leverage technology-enabled capabilities, supporting the nation in combating COVID-19 • Provide MoH Malaysia and the National CPRC with a cloud-based information system to connect all hospitals and quarantine centres nationwide • Grant income which in turn helped to defray costs in Singapore, as well as the provision of allowances/meals, among others, to help alleviate the burden of employees • Expanded offerings on COVID-19 screening services • Responded quickly to constantly evolving Government regulations despite limited resources and time • Activated business continuity measures and strategic collaboration with local vendors in ensuring availability of manpower • Increase in operating costs to implement COVID-19 precautionary and safety measures • Overburdened healthcare system • Insufficient manpower due to fear of working in the healthcare environment and embargo on foreign labour entry to Malaysia and Singapore Overall revenue from Healthcare Support increased by 8.9% following the commencement of new contracts won in Singapore and Taiwan. In Singapore, we enhanced our manpower in order to fulfil the increased need for portering services in hospitals while providing dormitories and disinfection services in the non-healthcare industry. PBT was marginally lower due to margin compression and escalating COVID-19 costs in the Malaysian concession business. FINANCIAL PERFORMANCE ‘20 ‘19 485.8 490.3 1.9 48.1 ‘20 ‘19 REVENUE PBT (RM mil) (RM mil) ‘20 ‘19 825.1 642.0 95.4 54.0 ‘20 ‘19 REVENUE PBT (RM mil) (RM mil) CONCESSION COMMERCIAL KEY CHALLENGES & MITIGATING ACTIONS Key Challenges Mitigating Actions Management Discussion & Analysis 80 UEM EDGENTA BERHAD