19 How We Are Governed Financial Statements Shareholders’ Information Additional Information Cybersecurity threats remain as one of the top emerging operational risks to the Group. We continued to enhance our cyber resilience through embracing emerging new technologies and cybersecurity solutions, continuous workforce vigilance and vigorous close monitoring of cyber threats to further strengthen our cyber defence capabilities in a bid to prevent cyber-attack or loss of data arising from unaddressed vulnerabilities. In light of the on-going pandemic situation, the Group will remain vigilant and maintain responsive business continuity plans. The Business Continuity Management Team stands ready to take all appropriate measures to mitigate risks of exposure to the contagion, including precautionary measures involving split-team operations and working-from-home arrangements as well as disaster recovery and contingency plans. 2022 OUTLOOK It has now been more than two (2) years since the world began to live with the COVID-19 pandemic. Although disruptions continue to take place in the economies and daily lives of everyone in Malaysia and around the world, there have been several important positive steps in 2021 that should begin bearing fruit in 2022. Despite the emergence of the Omicron variant and its ongoing impact around the world, Malaysia’s vaccine response has been highly successful, and we now have one of the world’s highest vaccination rates. We expect the public health impact of the Omicron variant to be relatively mild, and that the world will continue its gradual recovery in the second half of 2022. As more and more economic sectors resume their normal levels of productivity in 2022, and with the continuing progress towards nearuniversal vaccination in Malaysia, we expect 2022 GDP to grow by 5.0%-5.5%, buoyed by an expected surge in global demand. Key developments will include the reopening of borders to international visitors, the continuation of important national development projects, and the resumption of employment which should see the national unemployment rate fall from 4.6% to 3.9% in 2022. There have already been early signs of recovery: the labour market continued to grow in January 2022, with employment expanding through sustained job creation while the manufacturing sector posted its fifth consecutive month of growth in February 2022. On the monetary front, we expect Bank Negara Malaysia to maintain its OPR and statutory reserve requirements for banks for the first half of 2022, which is expected to support and complement the Government’s Budget of RM332.1 billion for 2022. We expect the record-high fiscal expenditure—RM233.5 billion in operating expenditure and RM75.6 billion in development expenditure— to impact positively on the economy and spur infrastructural development across the board. Nonetheless, our forecasts are tempered by risks associated with ongoing public health uncertainties stemming from the COVID-19 pandemic and its impact on economy and daily life, domestic political uncertainties in Malaysia, impact of China’s lockdown amid its zero-COVID strategy, rising energy prices, global geopolitical tensions brought by the Russia-Ukraine crisis and an aggressive monetary tightening cycle led by the U.S. Federal Reserve to combat rising inflation. In view of these potentially volatile and challenging conditions, Kenanga will continue its proactive policy of managing liquidity, market and credit risks by continuing to grow and strengthen its client base and sources of income through diversification with a continued emphasis on sustainability. Our digital transformation has served us well in weathering the storms of the pandemic, and in the coming years, it will be our resilience and commitment to sustainability that will allow us to continue to grow and prosper in an increasingly uncertain world. I remain confident that Kenanga will continue to harness its resources and expertise built over almost fifty (50) years of experience to bring all its stakeholders through to a better and more secure future. APPRECIATION I would like to express my gratitude to our Founder Emeritus and Adviser, YM Tan Sri Dato’ Paduka Tengku Noor Zakiah Tengku Ismail, who continues to serve as a beacon of leadership in these uncertain times. I thank the Board of Directors for their diligence and stewardship, especially Chairman, Tan Sri Dato’ Seri Syed Anwar Jamalullail whose dedicated pursuit of good governance and integrity has been invaluable as we continue to navigate new ways of doing business. Again, I am particularly thankful to the staff of Kenanga Group for their dedication throughout another difficult year, and I remain grateful to all our business partners, clients, suppliers and stakeholders for continuing to make the journey with us through 2021. I take this opportunity to register my appreciation to Bank Negara Malaysia, the Securities Commission Malaysia and Bursa Malaysia Berhad for their guidance, and I wish to also extend my appreciation to our valued shareholders for their continued trust and support. DATUK CHAY WAI LEONG Group Managing Director More information on risk management and internal controls can be found on pages 119 to 122 of this Annual Report.
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