KENANGA ANNUAL REPORT 2018

19 ANNUAL REPORT 2018 GROUP MANAGING DIRECTOR’S MANAGEMENT DISCUSSION AND ANALYSIS 2019 OUTLOOK The global economy is expected to slow further in 2019 due to factors ranging from the US-China trade tensions, financial market volatility to currency challenges in the emerging markets. Consequently, Malaysia’s economic growth prospect is expected to be less favourable, with projected growth of 4.7% in 2019, following a 4.8% growth in 2018 and 5.7% in 2017. With loan growth expected to ease further to 4.5%-4.8% in 2019 from 5.6% in 2018, in addition to the subdued inflationary trend and moderation of global growth momentum, there is an increasing possibility that BNM may lower the overnight policy rate in the second (2 nd ) half of 2019. The Group is of the view that the current financial year will be challenging. Kenanga Group’s continuous focus on innovation, digitalisation and productivity, as well as, the commitment from its people will remain its greatest assets to weather these headwinds. APPRECIATION I would like to express my appreciation to our Founder and Adviser, YM Tan Sri Dato’ Paduka Tengku Noor Zakiah Tengku Ismail; Chairman, Izlan Izhab and the Board of Directors for their guidance, advice and stewardship of Kenanga Group. My special gratitude goes to the hardworking and dedicated Kenanga Group staff who have enabled us to continue growing from strength to strength. I would also like to take this opportunity to thank our business partners, valuable clients, suppliers and stakeholders for their continued support. On behalf of the Group, I would like to extend our appreciation to Bank Negara Malaysia, Securities Commission Malaysia and Bursa Malaysia Berhad for their guidance in helping us navigate the regulatory landscape throughout the years. Finally, our heartfelt thanks and appreciation goes out to our valued shareholders for their continued trust and support towards the Group. DATUK CHAY WAI LEONG Group Managing Director