28
ASIAMEDIAGROUPBERHAD
(813137-V)
INDUSTRYOUTLOOKANDFUTUREPROSPECTSOFOURGROUP
(Cont’d)
I.
Overviewof theMalaysian economy
(Cont’d)
TheMalaysian economy is expected to remain on a steady growth path, with an expansion of
5-6% in2013.Economicactivitywill beanchoredby thecontinued resilienceofdomesticdemand,
and supported by a gradual improvement in the external sector. Private investment is expected
to remain robust, drivenby capacityexpansionby thedomestic-oriented firmsand the continued
implementation of projects with long gestation periods. Investments by the external-oriented
businesses is also expected to be higher amid the gradual improvement in external demand,
while private consumption is projected to grow at a more moderate rate in the second half of
the year, although it will continue to bewell supported by sustained income growth and positive
labour market conditions. Government spending is expected to record a lower growth given the
ongoing consolidation of the Government’s fiscal position and as the role of the private sector
gains greater significance. In line with the more favourable external sector, gross exports are
projected to record a higher growth in 2013 supported by the export of manufactured products.
Gross importsareexpected tomoderate, in tandemwith theprojected trend indomesticdemand.
Overall, this is expected to result in a lower negative contribution to real GDP from net exports.
As import growth continues to outpace export growth amid the continued deficit in the income
account and in current transfers, the current account surplus, while still remaining significant is
expected to narrow further in 2013.
(Source: The 2012BNMAnnual Report, BNM)
II.
Overviewandoutlookof DOOH transitmedia industry
DOOHmedia refers to all digital signages such as LCD screens, plasma screens and LCD or
LED billboards that display advertising and program content in public areas. TheDOOHmedia
industry (comprisingDOOH transitmedia, DOOHoutdoor signages andDOOH in indoor areas)
is estimated at RM100million in2012.
Adex inDOOH transitmediabegan topickuponly in2007when the industry recorded revenues
of approximately RM4.2million. WithmoreDOOH transit media digital signage sites becoming
available, such as theRapidKLBuses, DOOH transit mediaAdex grew rapidly to an estimated
RM48.8million in 2012, with strong growth recorded between 2007 and 2012with an estimated
CAGR of 63.3%, despite the global economic downturn in 2008.
TheAdex of DOOHmedia transit industry grew rapidly toanestimatedRM48.80million in2012
and this industry is forecast to grow to an estimated RM165.90 million in 2017. The DOOH
estimatedCAGRof 63.3% from2007 to2012was, largelydue to the industrybeing in itsnascent
stage and had grown from a small Adex base contribution at the beginning of this period. This
contributed tohigh year-on-year growth ratesof 128.6% from2007 to2008, 61.5% from2008 to
2009, 30.3% from2009 to2010, 95.0% from2010 to2011andanestimated23.7% from2011 to
2012. However, as the industrydevelops, theCAGR from2013 to2017areexpected to stabilise
to approximately 28.7%.
Management DiscussionandAnalysis
(Cont’d)
