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ASIA MEDIA GROUP Berhad
Annual Report 2016
12
Management Discussion and Analysis
(continued)
INDUSTRY OUTLOOK AND FUTURE PROSPECTS OF OUR GROUP
I.
Overview of the Malaysian economy
The Malaysian economy grew by 4.5% in the fourth quarter of 2016 (3Q 2016: 4.3%), underpinned
by continued expansion in private sector expenditure. On the supply side, growth continues to be
driven by the manufacturing and services sectors. On a quarter-on-quarter seasonally-adjusted
basis, the economy recorded a sustained growth of 1.4% (3Q 2016: 1.4%)
Overall, domestic demand expanded at a more moderate pace, as the sustained growth in
private sector expenditure was partly offset by the decline in public expenditure. In the fourth
quarter, private consumption grew by 6.2% (3Q 2016: 6.4%), supported by continued wage and
employment growth. Private investment registered a growth of 4.9% (3Q 2016: 4.7%), following
continued capital spending in the services and manufacturing sectors. Growth of public investment
improved mainly on account of higher spending on fixed assets by public corporations, but
nevertheless, remained in contraction during the quarter. Public consumption also declined by
4.2% (3Q 2016: +2.2%) arising from the rationalisation of spending on supplies and services
and a moderation in the growth of spending on emoluments. On the external front, net exports
contributed positively to growth as real exports expanded at a faster rate than real imports.
(Source: Economic and Financial Developments in the Malaysian Economy in the Fourth Quarter
of 2016, Bank Negara Malaysia)
The Malaysian economy is expected to grow between 4% and 5% in 2017, underpinned by
strong domestic demand. Private sector activity will be supported by pro-growth fiscal and
accommodative monetary policies in the environment of stable inflation which is projected to be
in the range of 2% to 3%. Public sector expenditure, which is expected to increase marginally
by 0.6% will be driven by higher capital investment by public corporations.
(Source: Economic Report 2016/2017, Ministry of Finance Malaysia)
II.
Overview and outlook of DOOH transit media industry
Historically, billboards and print wraps have been the predominant form of out of home media
in Malaysia as it was the easiest and most cost-efficient way of reaching out to mass audience,
due to its size and location. Over the years, as technology evolved and quality of digital content
improved, out of home media gradually transitioned from printed media to digital media. This is
attributable to the effectiveness of digital media in engaging mass audiences due to its dynamic
nature of allowing for more attractive and/or interesting contents.
The DOOH transit media industry in Malaysia, based on the revenue of DOOH transit media
industry players, registered an industry size of RM22.6 million in 2014. In the last three (3) years,
the DOOH transit media industry in Malaysia registered a decline, from RM47.4 million in 2012.