KENANGA ANNUAL REPORT 2020

19 ANNUAL REPORT 2020 // KENANGA INVESTMENT BANK BERHAD vaccine, the restoration of global supply chains and the further acceleration of demand for advance technology, we expect GDP recovery of 6.5% in 2021. There have already been early signs of recovery in the final quarter of 2020, with year-to-date gains in prices of oil and crude palm oil, and we anticipate that continued expansionary fiscal and monetary measures and a low base effect will also contribute to improved growth. This recovery bodes well for the stock market as it provides a basis for the improvement of corporate earnings especially in sectors that have been directly impacted by lockdown measures. In this early phase of economic recovery, we expect interest rates and statutory reserve requirements for banks to remain low for most of 2021. In tandem with these developments, the Government has announced a Budget of RM322.5 billion for 2021, which is the largest ever for Malaysia. With increases in development and operating expenditures of RM19 billion and RM10 billion respectively, we expect infrastructure development to accelerate with a positive multiplier effect on the economy. As we learn from the new normal of social distancing, work from home, and prioritising the development and wellbeing of our people, I am confident that Kenanga Group will continue to make best use of its resources, expertise and experience to capitalise on emerging opportunities. We expect 2021 to remain volatile and challenging, and we will continue to proactively manage liquidity, credit and market risks, while remaining focused on our objectives of achieving long term growth through our ongoing digital transformation. As always, we will continue to pursue a strategy grounded in prudence, which has served us well through good times and bad for almost half a century. APPRECIATION I take this opportunity to express my gratitude to our Founder Emeritus & Adviser, YM Tan Sri Dato’ Paduka Tengku Noor Zakiah Tengku Ismail, who has been an example of leadership and compassion throughout this most challenging year. I would like to thank our retired Chairman, Encik Izlan Izhab, for his dedicated service to the Group since 2017, and welcome his successor YAM Tan Sri Dato’ Seri Syed Anwar Jamalullail as Chairman. I thank the Board of Directors for their diligence and stewardship, and I am particularly thankful to the staff of Kenanga Group for their dedication and commitment throughout what were often difficult and uncertain times. Likewise, I express my gratitude to our business partners, valued clients, suppliers and stakeholders for their support during our journey through 2020. I also wish to register my appreciation for Bank Negara Malaysia, the Securities Commission Malaysia and Bursa Malaysia Berhad for their guidance, and we also extend our appreciation to our valued shareholders for their continued trust and support. DATUK CHAY WAI LEONG Group Managing Director