KUALA LUMPUR, April 26 — Gas Malaysia Bhd will focus on strengthening its presence in the gas industry value chain in the financial year 2021 (FY2021) to move further ahead into the new regime that resulted from market liberalisation which has intensified competition in the industry.

Chairman Datuk Hasni Harun said to mitigate this impact, the group will also focus on enhancing efficiencies through cost savings, optimising operations, and fostering sustainable growth by embracing new businesses that can add further value to the group.

"The group is hopeful that the global economy will be better and more stable in FY2021 in tandem with the global and country’s rollout of vaccines, which will reduce the negative impact of the pandemic.

"Our optimism is also premised on projections by the World Bank that Malaysia’s economy will expand by 6.0 per cent this year.

"Consequently, the demand for gas is projected to increase as consumption and manufacturing activities return to pre-pandemic levels and increase further over the longer term,” he said in its Annual Report 2020.

Commenting on the country’s operating environment last year, Hasni said the company was able to sustain its performance, demonstrating resilience and fortitude in delivering clean, safe and uninterrupted energy supply to its customers.

"The reduction in economic activity, especially during the implementation of the first movement control order (MCO) for six weeks from March 18 to April 2020 affected Gas Malaysia’s business, given the company’s essential role as the primary energy supplier to a variety of industries throughout the country.

"Most business activities were either completely shut or slowed down during the period, leading to lower gas sales,” he said.

Nonetheless, having posted its lowest monthly gas sales in April 2020, he said the group was able to stage a recovery in terms of higher gas sales from May 2020 onwards, in line with the gradual resumption of the economy.

For FY2020, he said revenue of the group for the current financial year under review was lower at RM6.69 billion compared to RM6.89 billion in 2019.

This was mainly due to lower average natural gas selling price, coupled with a slight decrease in the volume of natural gas sold in 2020, compared to the previous year, and mitigated by recognition of revenue cap adjustment in the current financial year, he added. — Bernama