Chairman's Message | AmBank Annual Report 2021

Dear Stakeholders,

The COVID-19 pandemic created difficulties for individuals and businesses and also affected how we operated and performed. In addition to these challenges, we have also resolved our historical matters amicably to allow the Group to move forward without further distractions.

I am pleased to present AmBank Group’s Integrated Annual Report FY2021, in which we demonstrate how we continue to create sustainable growth and stakeholder value amidst an extraordinary year. In recent years, we have continued to build on our resiliency. The strategic actions taken by our current leadership team enabled us to continue supporting our customers and stakeholders during these tumultuous times. Our ability to adapt to the new normal is a necessity to future proof our business against environmental, social and governance (ESG) risks.

A CHALLENGING YEAR

The COVID-19 pandemic has virtually affected all industries and economies. As the outbreak rapidly spread, movement restrictions and social distancing measures were widely implemented, affecting businesses and economic activities. The pandemic put a strain on global financial conditions, with sharp declines in prices of financial assets, vulnerabilities in credit markets, and dampened loans growth. In Malaysia, the government’s Movement Control Order (MCO) led to adverse economic impacts that rippled across sectors and households. The most significant impact was felt in the second quarter of 2020, with a 17.1% contraction in GDP.

As containment measures gradually eased from the second quarter, economic activities partially resumed, and labour market conditions started to improve. COVID-19-resilient industries experienced quicker recovery, supported by a global surge in digitalisation and a shift in consumer preferences. Export-oriented sectors benefitted from the increasing external demand in areas like electrical and electronic (E&E) products. In contrast, vulnerable sectors, like tourism-related industries, experienced slower recoveries due to continued risk aversion and restrictions on global travel.

In the final quarter of 2020, economic recovery remained vulnerable. A resurgence in cases led to the tightening of containment measures, which dented the recovery pace. However, the impact was less severe due to a more targeted approach of state-specific containment and less stringent supply restrictions. It reflected efforts to balance managing public health concerns with protecting livelihoods during the pandemic.