Asia Media Group Berhad Annual Report 2014
29
Management Discussion and Analysis
(Cont’d)
INDUSTRY OUTLOOK AND FUTURE PROSPECTS OF OUR GROUP
I.
Overview of the Malaysian economy
The Malaysian economy recorded a stronger growth of 6.0% in 2014 (2013: 4.7%). Growth
was driven by the continued strength in private domestic demand, and further lifted by the
improvement in external trade performance. In particular, net exports turned around to contribute
positively to growth in 2014 after seven consecutive years of negative contribution, as Malaysia’
export benefitted from the recovery in the advanced economies and continued demand from
the region. This was reflected in a board-based improvement in demand across markets and
products, including the electrical and electronics (E&E) products. As the growth of real exports
of goods and services outpaced the growth of imports, net exports recorded a strong growth of
19.7% in 2014 (2013: -12.6%) and contributed 1.4 percentage points to the overall GDP growth.
Domestic demand remained as the main anchor for growth, albeit at a more moderate pace
of expansion, led by private sector activity. Private consumption was supported by favourable
income growth and stable labour market conditions. The targeted Government transfers to the
low- and middle-income groups provided additional support to private consumption despite the
higher inflation during the year. Private investment continued to grow at a double-digit rate, driven
by the manufacturing and services sectors. These sectors benefitted from the improvement
in the external environment as well as the sustained domestic consumption. In line with the
Government’s commitment to fiscal consolidation, total public sector expenditure contributed
only marginally to growth during the year. The cost-cutting initiatives by the Government to
reduce discretionary spending that were announced at the end of 2013, particularly on travel,
food and beverages as well as rentals, had partly led to the moderation in public consumption
growth in 2014. Public investment, meanwhile, contracted following the lower capital spending
by both the Federal Government and the public enterprises. The latter was due mainly to the
completion and near-completion of some major projects during the year.
(Source: The 2014 BNM Annual Report, BNM)
II.
Overview and outlook of DOOH transit media industry
DOOH media 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. The DOOH media
industry (comprising DOOH transit media, DOOH outdoor signages and DOOH in indoor areas)
is estimated at RM100 million in 2012.
Adex in DOOH transit media began to pick up only in 2007 when the industry recorded revenues
of approximately RM4.2 million. With more DOOH transit media digital signage sites becoming
available, such as the RapidKL Buses, DOOH transit media Adex grew rapidly to an estimated
RM48.8 million in 2012, with strong growth recorded between 2007 and 2012 with an estimated
CAGR of 63.3%, despite the global economic downturn in 2008.
