Page 62 - Full Book_24.4.2021

MANAGEMENT

DISCUSSION &

ANAlYSIS

A Year of Global Recession
MARKET
The COVID-19 pandemic continued to spread through the year 2020
INTEGRATED ANNUAL REPORT 2020 REvIEW the need for lockdowns to contain the virus spread. During the great
creating uncertainties and prolonged economic disruptions due to
lockdown in April 2020, the global economy plunged to unexpected
depths for the first half of the year and its long ascent back to
pre-pandemic levels of activity remains prone to setbacks.

FROM STRENGTH TO STRENGTH
According to IMF’s most recent World Economic Outlook report in
January 2021, global gross domestic product (“GDP”) is projected at -3.5%
1
in 2020 (2019: 2.8%) . The negative growth is due to unfavourable
The year 2020 has been performance in both the advanced economies and the emerging market
58 and developing economies (“EMDEs”), mainly due to the adverse impact
termed ‘the year like no other’ of the COVID-19 pandemic as well as geopolitical tensions caused by
since the last world war. trade war, Brexit uncertainties, and rising unemployment.
BIMB HOLDINGS BERHAD 199701008362 (423858-X) under an unprecedented and investor confidence. Global trade is projected to turn around by
Global growth is projected at 5.5% in anticipation of the vaccine roll-out
The financial sector operated
by the first half of 2021. This is key in restoring trade as well as consumer

8.3% in 2021 as economic activities are most likely to gain momentum
backdrop that required
through the year should the vaccine roll-out implementation meet
expectations. However, this is tempered by mindfulness of downside
liquidity buffers, alignment
risks with the on-going uncertainties surrounding the pandemic globally
to government policies
and domestically.
and responsiveness in

providing economic support Malaysia’s Biggest GDP Contraction since 1998
Malaysia’s economy experienced its worst recession since 1998 with
GDP plunging by 5.6% for the full year due to repeated waves of
2
for Malaysians. Despite the COVID-19 infections that hit the nation. This is the biggest contraction
challenging environment, since the 1998 Asian Financial Crisis.

BIMB Holdings Berhad The economy was almost entirely shut down between March and
June 2020 - causing GDP to contract by 17.1% in the second quarter.
(“BHB” or “the Group”) This was followed by a short period of recovery before a resurgence
in infections between October and December last year, when much of
delivered a commendable the country came under renewed restrictions, including travel curbs,

performance buoyed by as the government scrambled to deal with a third wave of COVID-19
infections. The one-month re-opening of the economy at the end of
strong growth from the the year caused another surge in cases, leading to a partial lockdown
being instituted in mid-January 2021 that was prolonged into March.
Takaful sector. Since then, Malaysia has also been under a seven-month state of
emergency to deal with the pandemic.