2020 OUTLOOK AND PRIORITIES
With the emerging impact from the Covid-19 pandemic, the global economy is expected to contract in 2020, weighed by unprecedented measures taken to contain the health crisis. In Malaysia, the latest economic indicators suggest a sharp contraction in economic activities evidenced by Bank Negara’s GDP projection of -2.0% to 0.5% in 2020, arising from supply-demand shock and a drop in private consumption and affordability.
As business and travel activities will be significantly impacted in 2Q 2020, sales acquisition volumes and travel related revenues are also expected to be challenged before experiencing a gradual recovery when economic activities resume. Given the evolving Covid-19 situation and its uncertain effect on the country’s economic outlook and expected pace of market recovery, we remain committed to our long-term strategy, prospects and continued focus on innovation, taking a practical view on our earnings parameters.
In the months ahead in 2020, we will prioritise on:
- Continue creating value for our stakeholders
- Protecting cash flow through cost measures and financial flexibility
- Investing in strengthening network and IT infrastructure to support growing data demand
- Deliver on core and digital business through focused customer offerings
The solid groundwork we have set in the last three years by consistently executing our strategy, in particular digitalisation, has enabled us to quickly respond to the new virtual environment. As we continue delivering essential connectivity services for all at this time, we believe we are fit to manage through these future developments.