Page 18 - MSM_AIR2021

16 MSM MALAYSIA HOLDINGS BERHAD WHO WE ARE STATEMENT & DISCUSSION BY OUR LEADERS HOW WE OPERATE
ANNUAL INTEGRATED REPORT 2021

MARKET

LANDSCAPE

MARKET OVERVIEW

The unprecedented COVID-19
impact has made the business

environment on both the domestic
and international fronts in
FY2020/FY2021 challenging.
At macro level, global markets
have been pressured with supply
chain disruptions mainly caused
by stricter border controls, rising

freight costs, and scarcity of
shipping containers, which resulted
in the increase of transport rates
and costs.

Malaysia’s Quarterly GDP Growth

Year-on-year Quarter-on-quarter
16.1 18.2

4.5 4.8 4.4 3.6 0.7 -2.6 -3.4 -0.5 -4.5 3.6 0.9 1.3 0.8 0.6 -2.0 -0.3 2.7 -2.0 -3.6 6.6

-17 .1 -16.5

1Q-19 2Q-19 3Q-19 4Q-19 1Q-20 2Q-20 3Q-20 4Q-20 1Q-21 2Q-21 3Q-21 4Q-21 1Q-19 2Q-19 3Q-19 4Q-19 1Q-20 2Q-20 3Q-20 4Q-20 1Q-21 2Q-21 3Q-21 3Q-21

Annual Growth FY2021: 3.1% | FY2020: -5.6% | FY2019: 4.3%

Source: Department of Statistics Malaysia

Moving into FY2022, uncertainties regarding developments surrounding the new COVID-19 variant of concern (Omicron) of
the pandemic remains. The progress and efficacy of vaccinations, compliance with standard operating procedures as well as
the ability to effectively contain outbreaks from any new COVID-19 variants of concern will be key to the expected recovery.
Relaxation of restrictions for fully vaccinated individuals, including for interstate travel would also spur tourism-related activities.
At macro level, the strength in global demand will continue to support export growth.