FIRST SEMESTER 2022/2023

ACADEMIC SESSION A221

STRATEGIC MANAGEMENT
BPMN3023
GROUP D

AUDIT REPORT 

GLOBAL ORIENTED BERHAD

2019, 2020 AND 2021

Prepared for:
DR. MUHAMMAD ZULQARNAIN ARSHAD

Prepared by: Group 5

NAME MATRIC NO
VISHALINII KUPUSAMY 270789
NUR FATTIHAH BINTI ABDULLAH 271388
ZOE WONG 272110
MUHAMMAD AMIR BIN MOHD RAZALI 273157
WAN AIZAD BIN MOHD AZMI 273404

Submission date:
15th January 2023
 TABLE OF CONTENTS

1.0 STRATEGIC ISSUES IN GLOBAL ORIENTED BERHAD.............................................1

1.1 Issue 1: Poor Financial Performance of Global Oriented Berhad....................................1
1.2 Issue 2: Supply chain disruption for Global Oriental Berhad..........................................1
1.3 Issue 3: Global Oriental Berhad has a relatively stressed balance sheet..........................2
2.0 INTERNAL ANALYSIS.....................................................................................................3
2.1 The name of the company................................................................................................3
2.2 The type of company and the industry.............................................................................3
2.3 Vision, Mission, Objective and Strategies.......................................................................4
2.3.1 Vision........................................................................................................................4
2.3.2 Mission......................................................................................................................4
2.3.3 Objective...................................................................................................................4
2.3.4 Strategies...................................................................................................................4
2.3.5 Global Oriental Berhad Vision, Mission and Objective strategies analysis.............5
2.4 The list of the Board of Director......................................................................................5
2.4.1 Non-Independent Non-Executive Chairman.............................................................5
2.4.2 Executive Director....................................................................................................6
2.4.3 Independent Non-Executive Director.......................................................................7
2.5 The List of Top Management Team.................................................................................8
2.5.1 Executive Chairman..................................................................................................8
2.5.2 Senior Project Director..............................................................................................8
2.5.3 Senior General Manager...........................................................................................8
2.5.4 Senior Financial Controller.......................................................................................8
2.6 Organization Structure.....................................................................................................9
2.7 Financial Analysis............................................................................................................9
2.7.1 Liquidity Measures....................................................................................................9
2.7.2 Profitability Measures.............................................................................................11
2.7.3 Leverage Measures..................................................................................................13
1.7.4 Turnover Measures..................................................................................................15
3.0 EXTERNAL ANALYSIS..................................................................................................18
3.1 STEEP Analysis.............................................................................................................18
3.1.1 Politic......................................................................................................................18
 3.1.2 Economic.................................................................................................................19
3.1.3 Sociocultural...........................................................................................................20
3.1.4 Technology..............................................................................................................21
3.1.5 Environment............................................................................................................22
3.2 5 Forces Competitive Model by Michael Porter............................................................23
3.2.1 Threat of potential new entrants..............................................................................23
3.2.2 Bargaining Power of Suppliers...............................................................................24
3.2.3 Bargaining power of buyers....................................................................................24
3.2.4 Threat of substitute products...................................................................................25
3.2.5 Industry Competition..............................................................................................25
4.0 SITUATIONAL ANALYSIS............................................................................................26
4.1 SWOT Analysis.............................................................................................................26
4.1.1 Strengths..................................................................................................................27
4.1.2 Weaknesses.............................................................................................................29
4.1.3 Opportunities...........................................................................................................30
4.1.4 Threats.....................................................................................................................32
4.2 TOWS Analysis.............................................................................................................34
4.2.1 SO (Strengths and Opportunities)...........................................................................35
4.2.2 WO (Weaknesses and Opportunities).....................................................................36
4.2.3 ST (Strength and Threats).......................................................................................37
4.2.4 WT (Weaknesses and Threats)................................................................................38
4.3 Internal Factor Analysis Summary (IFAS)....................................................................39
4.4 External Factor Analysis Summary (EFAS)..................................................................40
4.5 Strategic Factors Analysis Summary (SFAS)................................................................40
5.0 RECOMMENDATION.....................................................................................................41
REFERENCES.........................................................................................................................42
1.0 STRATEGIC ISSUES IN GLOBAL ORIENTED BERHAD

1.1 Issue 1: Poor Financial Performance of Global Oriented Berhad

Due to the Covid-19 outbreak, Global Oriented Berhad faced poor financial performance and
declining earnings. The price-to-earnings ratio may be low because investors assume the
company won't accomplish enough to outperform the market.

Global Oriental Berhad's P/E ratio is normal for a firm with restricted growth and
below-average performance. The company's bottom line dropped 13% last year. Due to early
growth, EPS hasn't gone backward from three years ago. So far, the company's earnings
growth has been uneven.

The medium-term profit trajectory is less favourable than the market's one-year
growth expectation of 13%. Given this, Global Oriental Berhad's price-to-earnings ratio is
below average. Many stockholders weren't comfortable holding onto something they thought
would underperform. Global Oriental Berhad (KLSE: GOB) shares have fallen 29% in 2019,
erasing previous gains. Shareholders who have held for a year now face a 37% share price
decline.

Global Oriental Berhad's price-to-earnings ratio of 7.5x makes it a buy compared to

the Malaysian market, where half of the businesses have P/E ratios above 14x and price-to-
earnings ratios above E's 24x are frequent. It's not prudent to take the price-to-earnings ratio
at face value because it may be limited. Global Oriental Berhad's earnings growth over the
last 2021 is above average. The price-to-earnings ratio may be low because investors assume
the company's good profits growth will underperform the market. If not, existing
shareholders can be confident about the share price's future. (Annual Report of Global
Oriental Berhad, 2021)

1.2 Issue 2: Supply chain disruption for Global Oriental Berhad

According to the National Association of Home Builders, China exports account for about
one-third of all home construction inputs globally. It is insignificant to note that this excludes
finished goods like sinks, bathtubs, appliances and many other items. The delivery of the
product may be significantly delayed when these facts are taken into account, together with
container cancellations. The property industry has a significant impact on everything from
ordinary upkeep and repairs to property upgrades and new buildings.

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 Since the financial crisis of 2008, the competition for building construction has been
extremely severe, with high demand but low supply due to reasons like construction costs, a
scarcity of construction materials, and a lack of available land. And the world was once again
stunned by the Covid-19 epidemic, which appeared to bring the sorrows of the past back to
life. Due to the low purchasing cost, Global Oriental Berhad's construction supplies are
reliant on commercial suppliers from China. As the global economy becomes more efficient,
Global Oriental Berhad has become increasingly reliant on this China supply network.

Global Oriental Berhad used to keep large inventories in warehouses in the past.
However, this old method causes a lot of extra material that is wasted, making it exceedingly
ineffective. This forces Global Oriental Berhad to only hold a minimal quantity of inventory
in order to maximize efficiency and match the productivity of the global marketplace, which
is constantly able to supply the products or materials required at the desired moment.
However, as a result of Covid-19, material manufacturing was immediately halted, leaving
the corporation unprepared to meet this issue with limited goods in the warehouse. At that
point, they realized that their reliance on China's supply was excessive. Thus when China was
closed, the construction process of Global Oriental Berhad was also interrupted.

Developers are adding several months to their timelines as a result of uncertain supply
chain worries. They run the risk of incurred costs and unfulfilled contractual obligations by
relying on vendors to procure the labor and materials and satisfy construction deadlines.
These factors also contributed to Global Oriental Berhad's reduced sales as it took longer for
the material in China to resume production even after Malaysia MCO.

1.3 Issue 3: Global Oriental Berhad has a relatively stressed balance sheet

Giving an insight into the post recent balance sheet information, we can observe that Global
Oriental Berhad had liabilities totaling RM418.7 million that were due within the next year
and liabilities totaling RM213.7 million that were due after that. On the contrary, it had
RM119.8 million in cash and RM97.3 million in receivables that were due within one year.
Therefore, its liabilities are RM415.2 million more than its income and (short-term)
receivables combined.

This shortfall hangs over the RM106.8 million company like a monster
overshadowing puny mortals. So, without a question, we'd keep a tight eye on its balance

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sheet. After all, if Global Oriental Berhad had to pay its lenders today, it probably would
need a significant re-capitalization.

Debt helps a business until it runs into problems repaying it with free cash flow or
new capital. In a dire situation, the lenders have the right to seize control of the company. A
more common (though still expensive) scenario is when a firm issues share at rock-bottom
rates, forever diluting shareholders, only to strengthen its balance sheet. Debt, however, may
be a very useful instrument for companies that want money to invest in development at high
rates of profit by displacing dilution. Looking at a company's cash and debt combined is the
first step in determining how much debt it utilizes.

Finally, lenders only accept actual cash, despite the fact that the tax department loves
accounting revenues. It is crucial to determine how much of the company's profits before
interest and tax (EBIT) transforms into actual free cash flow. Global Oriental Berhad
experienced significant negative free cash flow overall over the previous year. Even if that
might be a consequence of spending for growth, it makes the debt much riskier.

2.0 INTERNAL ANALYSIS

2.1 The name of the company

Figure 1
Global Oriental Berhad

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2.2 The type of company and the industry

Global Oriental Berhad is a holding company for investments with a focus on the real estate
development sector. The Company primarily develops mixed-use townships in Penang and
the Klang Valley that include both residential and commercial assets. The company's
development includes corporate and real estate service suites, individual houses, apartments,
and shops in addition to mixed-use housing and commercial space. The Group companies is
actively involved in the trading and distribution of high-end home goods and related products
in addition to real estate development. Famous brands that are promoted include Corning
Ware, Corelle, Pyrex, Visions, and Snap ware. Most of its booths are in well-known shopping
malls and duty-free areas like Langkawi, Bukit Kayu Hitam, Pengkalan Kubur, Labuan, and
Pangkor Island.

2.3 Vision, Mission, Objective and Strategies

2.3.1 Vision

 The Vision is to develop environments and ideals that exceed the demands and
expectations of all parties involved.

2.3.2 Mission

 Its Mission is to give people accessible, effective, pleasant living and working places
so they may reach a high level of life in an environment that is environmentally
balanced.

2.3.3 Objective

 The objective is to raise income consistently while minimizing losses brought on by a

higher exposure to credit risk.

2.3.4 Strategies

 Concentration Strategy
The company employs a horizontal expansion plan under the concentration strategy,
expanding operations to new regions and broadening the selection of goods and services
available to the present market. For instance, this business develops its activities throughout
Malaysia, including Pahang, Perak, Selangor, and other areas. By doing this, businesses will
be able to increase their size and income, enter new markets, diversify their product lines, and
face less rivalry.

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  Diversification Strategy
Utilizing this diversification tactic, the company enters new markets with new goods that are
technologically comparable to its present products. By doing this, they can gain some
benefits by utilizing things like technical know-how and industry expertise. As a result,
diversification If one product's sales fall, concentration may be advantageous since the
income loss can be made up for by higher sales of other items. For instance, this firm, which
produces items for the construction, real estate development, trading, and distribution of
housewares industries, has expanded into a new market while maintaining its industry
concentration.

2.3.5 Global Oriental Berhad Vision, Mission and Objective strategies analysis

The fundamental framework of strategic management of a company includes vision, purpose,

and goals. This is because it serves as a roadmap for businesses to reach their goals.
Therefore, it is crucial for a business to have a clear vision and goal. A mission statement
concentrates on today and what an organization works to attain it, whereas a vision statement
concentrates on the future and what an organization aspires to ultimately become. Both are
essential for guiding objectives. Company objectives are also the precise and quantifiable
outcomes businesses want to sustain as their corporation expands. As a result, a firm's vision
and purpose are linked, and in order to accomplish both, the organization requires a
worthwhile goal.

2.4 The list of the Board of Director

   2.4.1 Non-Independent Non-Executive Chairman

According to Global Oriental Berhad Annual Report 2021, Dato Tan Eng Beng is a Non-
Independent Non-Executive Chairman of Global Oriental Berhad. On October 1, 2020, he
was appointed as Non-Independent Non-Executive for the first time. Currently, he serves as a
director for the Akisama Group of Companies. He previously served in several senior roles,
including managing director of Regmas Construction Sdn Bhd, managing director of
Masterfitters Construction Sdn Bhd, executive director of Housing Associated Sdn Bhd, and
managing director of Insamaju Construction Sdn Bhd, before being appointed to the board of
the Akisama Group of Companies. He holds an 18.04% direct and indirect ownership stake in
Global Oriental Berhad, making him the largest stakeholder. As stated, he is not related to
any director or significant shareholder of the company, has no competing interests with the

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company, has not been convicted of a crime within the last five years, and is not subject to
any public sanctions or penalties from the relevant regulatory body for the current financial
year. He is not a director of any publicly traded or other publicly traded companies.

2.4.2 Executive Director

According to the annual report 2021 Global Oriental Berhad, Gan Vi King was appointed as
Executive Director on 11 August 2020. Mr. Gan Vi King is a Chartered Accountant of the
Malaysian Institute of Accountants and a Fellow of the Association of Chartered Certified
Accountants, United Kingdom. He began his career in a reputable professional accounting
firm and has spent the last 26 years in a variety of senior roles with both private and publicly
traded companies, including managing global operations, acquisitions, and investment
portfolios with knowledge of the Americas, Europe, and Asia. He brings with him
considerable experience in audit, accounting, global finance, general management, corporate,
and strategic planning from his work in a variety of business sectors.     

Dato Wee Beng Aun is the second executive director of Global Oriental Berhad. On 1
July 2010, he was appointed as Executive Director according to the annual report 2021
Global Oriental Berhad. In addition to holding a Bachelor of Civil Engineering degree from
the University of Melbourne in Australia, Dato' Wee Beng Aun served as the managing
director of a Malaysian subsidiary of a publicly traded corporation. The Pavilion Kuala
Lumpur, a massive integrated urban commercial, shopping, and entertainment center with
luxury residential towers, The Pearl @ KL City Centre high-end condominiums, and the
mixed-use Bukit Rimau township in Shah Alam, Selangor Darul Ehsan were just a few of the
prestigious projects he had worked on during his time with these companies. He now serves
Tuju Setia Berhad as a Non-Independent Non-Executive Director. He has no kinship ties to
any directors or significant shareholders of the company, no conflicts of interest with the
company, no recent criminal convictions, and no recent public fines or penalties levied by the
appropriate regulatory organizations.

Chin Hon Keong is the third Executive Director and he was appointed as Executive
Director on 13 July 2015. In 1979, Mr. Chin Hon Keong earned a degree in accounting from
the United Kingdom's Emile Woolf College of Accountancy and Newcastle Upon-Type
Polytechnic (now Northumbria University). He belongs to the Malaysian Institute of
Accountants and is a Fellow Member of The Chartered Association of Certified Accountants.

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He has worked in accounting and finance for more than 30 years. In businesses engaged in
real estate development, retail operations, manufacturing, and hospitality, he held a variety of
top managerial positions. He has no kinship ties to any directors or significant shareholders of
the company, no conflicts of interest with the company, no recent criminal convictions, and
no recent public fines or penalties levied by the appropriate regulatory organizations. He is
not a director of any other publicly traded or openly traded corporation.

2.4.3 Independent Non-Executive Director

On April 10, 2008, Dato Hamzah bin Md Rus was first appointed as an independent non-
executive director, according to the annual report of 2021 Global Oriental Berhad. Dato'
Hamzah bin Md Rus earned a Professional Diploma in Purchasing and Supply Management
from the University of North London and a Bachelor of Arts with Honors from the University
of Malaya. Throughout his career (1974–2006), he worked for the Malaysian government in a
variety of Ministries. He has held a variety of posts, served as the leader of numerous
working groups, and represented the government of Malaysia at numerous regional, bilateral,
and international gatherings. He most recently served as the Deputy Chief Secretary of the
Interior Ministry. He has received numerous service excellence honors for his commitment
and perseverance during his career, in addition to numerous federal and state awards.

Mr. Wong Yuk Mou comes in second, having been appointed for the first time on
November 23, 2009, as an independent non-executive director. He holds the Post Graduate
Diploma in Islamic Banking and Finance, is a Fellow Accountant of the Certified Association
of Fellow Accountants (FCCA, UK), and is a Malaysian Chartered Accountant Institute of
Accountants member (UIAM). He was approved for membership in the Malaysian Institute
of Internal Auditors in 2011 as a position below Certified Audit Committee Director
(CACD).

The following person is Mr. Prabhaharan A/L Gobala Krishnan, who was appointed
for the first time on March 29, 2021, as an independent non-executive director. He is a
member of the Society of Chartered Accountants in the United Kingdom and a Chartered
Accountant of the Malaysian Institute of Accountants. He has been a seasoned corporate
banker for more than 33 years, the last 26 of which have been spent in the corporate banking
sector. He has held a variety of management positions in Malaysia's banking industry. He is

7
the Head of the Corporate Early Control Department of Affin Bank Berhad till his retirement
in December 2020.

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2.5 The List of Top Management Team

2.5.1 Executive Chairman

According to the annual report Global Oriental Berhad in 2021, Dato Tan Eng Beng is a Non-
Independent Non-Executive Chairman of Global Oriental Berhad

2.5.2 Senior Project Director

On August 15, 2016, Ben Yeoh was selected to serve as the group project director. He has
held leadership positions in multinational teams in the United Kingdom, Vietnam, and Dubai.
He has considerable work expertise in property development from hospitality, commercial,
and used projects in Malaysia and abroad. Prior to joining Global Oriental Berhad, he held
top executive positions with PLC Malaysia and the Dubai World Company, where he served
as the Project's Chief Executive Officer. He also worked on the Banyan Tree Hotel Project
and Pavilion Hotel, both of which are in Kuala Lumpur. Currently, he is in charge of the
whole project planning, management, and delivery for the Embassy Pavilion development
project in Jalan Ampang, Kuala Lumpur.

2.5.3 Senior General Manager

According to the annual report 2021, on August 23, 2010, Chan Kam Loon was appointed
general manager of group projects. In publicly traded Malaysian firms like Talam
Corporation Bhd, MK Land Bhd, SPK Bhd, PECD Bhd, and Asia Pacific Land Bhd, he has
held senior/general manager roles. He worked in the early 1980s construction of Menara
MPPJ, one of the first tall buildings in Petaling Jaya, as well as one of the first steel high-rise
structural structures in Kuala Lumpur, both of which were built by Malaysian contractors.
Additionally, he has performed secondment work for CMR Consultants Ltd, an Australian-
based project management and construction firm with New Zealand roots.

2.5.4 Senior Financial Controller

According to the annual report 2021, since January 2, 2012, Angeline Loo has served as the
group financial controller. From Tunku Abdul Rahman College, he graduated with a Diploma
in Commerce (Management Accounting). He is a member in good standing of both the
Malaysian Institute of Chartered Accountants and the Institute of Chartered Management
Accountants in the United Kingdom. He has over 25 years of expertise in finance and
accounting, mostly in the fields of investing, real estate development, building,
manufacturing, tourism, and retail.

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2.6 Organization Structure

In their website or annual report Global Oriental Berhad Firm does not disclose the
organizational structure of the company.

2.7 Financial Analysis

Financial analysis is crucial for businesses to prevent issues when comparing businesses of
various sizes and to provide a snapshot of the company's performance over time. The size of
the issue will also be reduced thanks to this research because it has been successfully split.
Below are the four ratios needed to be analysed in Global Oriental Berhad.

2.7.1 Liquidity Measures

a) Current Ratio

FORMULA 2019 2020 2021

Current ratio = 692,133,000 644,948,000 657,763,000

Current assets (CA) 413,960,000 393,393,000 512,086,000
Current liabilities (CL) = 1.67 times = 1.64 times = 1.28 times

Explanation: The current ratio measures the ability of the firm to meet its short-term
obligations or debt that should be paid within one year. It is better to have a higher current
ratio because it indicates a greater degree of liquidity. Based on the table above, Global
Oriental Berhad recorded a current ratio of 1.67 times in the year 2019. The ratio decreases to
1.64 times in 2020 and decreases again to 1.28 times in 2021. This shows that 2019 Global
Oriental Berhad had a greater ability to pay its short-term obligations in 2019, and it
decreased in 2020 and also decreased again in 2021.

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 b) Quick Ratio

FORMULA 2019 2020 2021

692,133,000 644,948,000 657,763,000

Quick ratio =
- 84,919,000 - 66,592,000 - 70,374,000
Current Asset - Inventory
413,960,000 393,393,000 512,086,000
Current Liability
= 1.47 times = 1.47 times = 1.15 times

Explanation: The quick ratio is one of the least liquid current assets. It assesses a company's
capacity to pay all of its existing liabilities before due using only assets that can be converted
to cash rapidly. Based on the table above, Global Oriental Berhad recorded a quick ratio of
1.47 times in the years 2019 and 2020. After that its decreased to 1.15 times in 2021. This
shows that in 2019 and 2020 this company had enough quick assets or liquid assets to cover
its short-term debt immediately. However, in 2021, the company's ability to cover its short-
term debt decreased.

c) Cash Ratio

FORMULA 2019 2020 2021

Cash ratio = 159,067,000 115,143,000 154,024,000

Cash 413,960,000 393,393,000 512,086,000
Current Liability = 0.38 times = 0.29 times = 0.30 times

Explanation: The cash ratio is also one of the most liquid assets, which assesses a company's
capacity to pay all of its existing liabilities before due using only assets cash. Based on the
table above, Global Oriental Berhad recorded 0.38 times in 2019 and decreased 0.29 times in
2020, and it will rise again to 0.30 times in 2021. This shows that in 2019 Global Oriental
had enough cash to cover its short-term debt instantly. However, in 2020, the company's
ability to cover its short-term debt using only cash decreased and increased back in 2021.

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2.7.2 Profitability Measures

a) Gross Profit Margin

FORMULA 2019 2020 2021

148,833,000- 260,884,000 - 418,971,000 –

Gross Profit margin =
130,262,000 237,882,000 380,004,000
Sales – COGS
148,833,000 260,884,000 418,971,000
Sales
= 12.48% = 8.82% = 9.30%

Explanation: The gross profit margin is the proportion of each Ringgit of sales left over after
the company has paid for its items. Based on the table above, Global Oriental Berhad gross
profit margin fluctuated from 0.1248 in 2019 to 0.0882 in 2020, and it raised again to 0.093
in 2021. This shows that in 2019, Global Oriental Berhad recorded the highest gross profit
margin, which is better for the firm. In addition, it also indicates that 2019, the company
earned MYR 0.1248 in 2019, 0.0882 in 2020, and 0.093 in 2021 from every MYR 1.00 of
sales.

d) Net Profit Margin

FORMULA 2019 2020 2021

Net Profit Margin = (99,539,000) (29,519,000) 10,592,000

Net income 148,833,000 260,884,000 418,971,000
Sales = -0.6688 or -66.88% = -0.1131 or -11.31% = 0.0253 or 2.53%

Explanation: Profit margin is the proportion of each sales Ringgit that remains after
subtracting costs and expenses, such as interest, taxes, and preferred stock dividends. Based
on the table above, Global Oriental made a net loss of 0.6688 in 2019 and 0.1131 in 2020.
After that, the company increased its net profit by 0.0253 in 2021. This shows that Global
Oriental Berhad has good control over the cost in 2021.

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 e) Operating Profit Margin

FORMULA 2019 2020 2021

OPM = 1,700,000 1,200,000 4,000,000

Operating profits 148,833,000 260,884,000 418,971,000
Sales = 0.0114 or 1.14% = 0.0046 or 0.46% = 0.0095 or 0.95%

Explanation: Operating profit margin is the proportion of each sales Ringgit that remains
after the costs and expenses, excluding the interest, taxes, and preferred stock dividends, have
been removed. Based on the table above, Global Oriental Berhad operating profit margin in
2019 is 0.0114 and decreases by 0.0046 in 2020 and increases by 0.0095 in 2021. This shows
that Global Oriental Berhad was not well managed but in stable condition.

f) Return on Assets

FORMULA 2019 2020 2021

ROA = (99,539,000) (29,519,000) 10,592,000

Net income 1,015,695,000 958,618,000 987,732,000
Total assets = -0.0980 or -9.8% = -0.0307 or -3.07% = 0.0107 or 1.07%

Explanation: The return on assets (ROA) is a metric that assesses management's overall
success in creating profits from its available assets. Based on the table above, Global Oriental
Berhad’s RAO will increase from -9.8% in 2019 to -3.07% in 2020 and 1.07% in 2021. This
shows that Global Oriental Berhad lost 9.80 cents (2019), 3.07 cents (2020) and earned 1.07
cents (2021) on each MYR 1.00 of investment in a total asset, which means the earning was
higher than the investment of the total asset.

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 g) Return on Equity

FORMULA 2019 2020 2021

ROE = (99,539,000) (29,519,000) 10,592,000

Net income 278,976,000 249,019,000 259,611,000
Total equity = -0.3568 or -35.68% = -0.1185 or -11.85% = 0.0408 or 4.08%

Explanation: The return on equity (ROE) is a metric that evaluates the profit earned by
common stockholders on their investment in the company. Based on the table above, Global
Oriental Berhad’s RAO continuously increases from -35.68% in 2019 to -11.85% in 2020
and 4.08% in 2021. This shows that Chin Teck Plantation will lose 35.68 cents (2019), and
11.85 cents (2020) and earn 4.08 cents (2021) on each MYR 1.00 of common stock equity.

2.7.3 Leverage Measures

a) Total Debt Ratio

FORMULA 2019 2020 2021

736,719,000 709,599,000 728,121,000

Total Debt Ratio =
1,015,695,000 958,618,000 987,732,000
Total liabilities
= 0.7253 times or = 0.7402 times or = 0.7372 times or
Total assets
72.53% 74.02% 73.72%

Explanation: The debt ratio is a measurement of how much of a company’s total assets are
funded by its creditors. Based on the table above, the Global Oriental Berhad debt ratio
increased from 72.53% in 2019 to 74.02% in 2020. In 2021, the debt ratio decreased to
73.72%. This shows that Global Oriental Berhad has a lesser debt which shows less financial
risk for the company.

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 b) Debt-To-Equity Ratio

FORMULA 2019 2020 2021

736,719,000 709,599,000 728,121,000

Debt-To-Equity Ratio =
278,976,000 249,019,000 259,611,000
Total liabilities
= 2.64 times or = 2.85 times or = 2.80 times or
Total equity
264% 285% 280%

Explanation: The debt-to-equity ratio indicates how much debt and common stock equity are
used to fund the company's assets. Based on the table above, Global Oriental Berhad debt-to-
equity ratio increased from 264% in 2019 to 285% in 2020 and dropped to 280% in 2021.
According to the result, Global Oriental Berhad collects only MYR2.64 (2019), MYR2.85
(2020), and MYR2.80 (2021) for each MYR 1.00 of common stock, which to more than the
common stock. Therefore, it shows that the company did use financial leverage very much.

c) Equity Multiplier

FORMULA 2019 2020 2021

Equity Multiplier = 1,015,695,000 958,618,000 987,732,000

Total assets 278,976,000 249,019,000 259,611,000
Total equity = 3.64 times = 3.85 times = 3.80 times

Explanation: An equity multiplier is a financial statistic determining how much of a

company's assets are financed by its investors. A low equity multiplier suggests that a
corporation is financing asset acquisitions with more equity than debt. Based on the table
above, Global Oriental Berhad’s equity multiplier ratio increased from 3.64 times in 2019 to
3.85 times in 2020 and decrease to 3.80 times in 2021. According to the result, Global
Oriental Berhad has a total asset of MYR 3.64 (2019), MYR 3.85 (2020), and MYR 3.80
(2021) for each MYR 1.00 of equity capital.

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 d) Times Interest Earned Ratio

FORMULA 2019 2020 2021

Times Interest Earned Ratio = (79,673,000) (27,384,000) 15,709,000

EBIT 24,809,000 5,171,000 5,191,000
Interest = -3.21 times = -5.30 times = 3.03 times

Explanation: The times' interest earned ratio or interest coverage ratio indicates the capacity
of a company to fulfil contractual interest payments on its debt. Based on the table above,
Global Oriental Berhad times interest earned ratio decreased from -3.21 times in 2019 to -
5.30 times in 2020. In 2021, it recorded the highest ratio, which is about 3.03 times.
According to the result, Global Oriental Berhad has a higher ability to pay its obligation or
interest from the operating profit and the capability of the company to invest more with the
balance after paying the debt in 2021.

1.7.4 Turnover Measures

a) Inventory Turnover

FORMULA 2019 2020 2021

Inventory turnover = 130,262,000 237,882,000 380,004,000
Cost of goods sold 84,919,000 66,592,000 70,374,000
Inventory = 1.53 times = 3.57 times = 5.40 times

Explanation: Inventory turnover is the frequency with which a corporation replenishes and
sells its stock over the course of a year. While a speedier ratio suggests strong sales or
insufficient inventory, a slower ratio indicates bad sales and maybe surplus inventory. Based
on the table above, Global Oriental Berhad’s inventory turnover increased from 1.53 times in
2019 to 3.57 times in 2020 and increased again in 2021 to 5.40 times. This shows that Global
Oriental had the greater ability to sell the inventory and replace it more quickly every year.

17
 b) Average Collection Period

FORMULA 2019 2020 2021

Average collection period = 61,277,000 72,859,000 97,386,000

Accounts receivable (148,833,000/365) (260,884,000/365) (418,971,000/365)
Annual sales/365days = 150.27 days = 101.94 days = 84.84 days

Explanation: The length of time it typically takes to collect accounts receivable is known as
the average collection period. In general, a shorter ratio reflects the company's capacity to
recover receivables or payments more rapidly, making it preferable to a longer ratio. Based
on the table above, Global Oriental Berhad's average collection period continuously
decreased from 150.27 days in 2019 to 101.94 days in 2020 and 84.84 days in 2021. This
shows that Global Oriental Berhad made a significant improvement in collecting receivables
faster.

c) Average Receivable Turnover

FORMULA 2019 2020 2021

Average Receivable Turnover = 148,833,000 260,884,000 418,971,000

Sales 61,277,000 72,859,000 97,386,000
Account receivable = 2.43 times = 3.58 times = 4.95 times

Explanation: Accounts receivable turnover measures how frequently a company's receivables

are converted into cash over the course of a year. A higher ratio indicates a higher likelihood
that the firm will convert its accounts receivable into cash. Based on the table above, Global
Oriental Berhad's account receivable turnover continuously increased from 2.43 times in
2019 to 3.58 times in 2020 and 4.95 times in 2021. This shows that Global Oriental Berhad
significantly improved, turning the account receivable into cash more frequently.

18
 d) Fixed Asset Turnover

FORMULA 2019 2020 2021

Fixed Asset Turnover = 148,833,000 260,884,000 418,971,000

Sales 159,067,000 115,143,000 154,024,000
Net Fixed Assets = 0.94 times = 2.27 times = 2.72 times

Explanation: Accounts receivable turnover gauges how frequently over the course of a year a
firm convert its receivables into cash. The possibility that the company will turn its accounts
receivable into cash is higher when the ratio is higher. Based on the table above Global
Oriental Berhad's fixed asset turnover continuously increased from 0.94 times in 2019, 2.27
times in 2020, and 2.72 times in 2021. This shows that Global Oriental Berhad has to make
some improvements in using the fixed asset to generate sales as the ratio recorded was too
low.

e) Total Asset Turnover

FORMULA 2019 2020 2021

Total Asset Turnover = 148,833,000 260,884,000 418,971,000

Sales 392,560,000 958,618,000 987,732,000
Total Assets = 0.38 times = 0.27 times = 0.42 times

Explanation: Total asset turnover is a metric for determining how well a company's total
assets generate sales. The firm with a greater total asset turnover ratio demonstrates how well
the asset has been used. Based on the table above, Global Oriental Berhad's total asset
turnover decreased from 0.38 times in 2019, to 0.27 times in 2020, and increased to 0.42
times in 2021. This shows that Global Oriental Berhad has to make some improvements from
2020 to 2021 in using the total asset to generate sales as the ratio recorded was too low.

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3.0 EXTERNAL ANALYSIS 

3.1 STEEP Analysis 

The STEEP analysis is a methodology or framework that marketers use to examine and keep
track of the effects that the external marketing environment (macro environment variables)
has on company, business or industry. The corporate government can utilize it as a strategic
management tool to help them make better choices in the areas of politics, economics,
sociocultural, technology, and the environment.

3.1.1 Politic

Political variables are typically related to the extent of intervention and nature of intervention
of the local and national government in a commercial and economic environment.
Government policies and systems play a big role in the type and purpose of the policies.

According to Malaysia's regulatory practices, Global Oriental Berhad is required to

manage a variety of regulations in the areas where it operates. Malaysia and other rising
nations have revised their policies in recent years addressing both market access and how
businesses engaged in real estate operations can conduct business locally.

Moreover, Global Oriental Berhad has profited from a lower tax policy during the last
two decades according to the taxes policies factor. As a result of the low taxes, Global
Oriental Berhad has made significant profits, allowing them to enhance their investment in
corporate research and development. However, if inequality rises in Malaysia, this taxation
policy might change. Furthermore, in order to reduce the carbon footprint of the service
sector, the government is examining particular taxing laws for real estate businesses.

Global Oriental Berhad also needs to consider the changing policies factor with the
new government. Every election will come with the possibility of a new government change
and it has been proven with the change for GE15 this year. The governance priorities of the
service sector will surely shift as a result of this change in the leadership pillar.

Malaysia's new government policy encourages investment sentiment in the service

sector for the government's resource allocation factor and time scale. The time scale of
this policy will be expected to be longer than the current government mandate period given
the greater support among the people of the proposed policies.

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 3.1.2 Economic

Economic factors include Gross Domestic Product (GDP) trends, interest rates, inflation
rates, consumer disposable income, taxation rates, exchange rates, currency markets, the
global financial system, labor market conditions, a country's economic performance and
others.

The property development sector has revived in 2019 as a result of numerous

incentives given by the Malaysian government after the downturn. Furthermore, by cutting
operating expenses, Global Oriental Berhad managed to increase sales for FY2020.

However, the COVID-19 pandemic which led to the implementation of the Movement
Control Order "MCO" on 18th March 2020, and the Conditional Movement Control Order
"CMCO" on 4th May 2020 has significantly changed the momentum. The MCO and CMCO
caused significant delays in a number of active projects.

Due to that, Global Oriental Berhad works to improve its position in the real estate
market, which is supported by consumer confidence, unique product offerings, and good
brand placement. The company believes that by utilizing the local talent pool, businesses may
increase their sector's awareness while also boosting the local economy. Their salary
packages have also exceeded the Minimum Wage Order, 2020 rates.

Furthermore, the volatility of Malaysia's currency exchange rate may have an

impact not only on Global Oriental Berhad's short-term but also on its long-term property
investment plans. They also support the local economy by investing in a supply chain that is
locally located, which also lowers their operating expenses and lessens the environmental
effects. Aside from that, depending on the inflation rate, the market's easy liquidity
following the big recession of 2019 will contribute to rising inflation in the Malaysian
economy.

Global Oriental Berhad's success in Malaysia is closely linked to the success of

Malaysia's economy as a whole. This is referred to as an economic cycle. The expansion that
has occurred over the last two decades is attributable, in large part, to increased globalization
as well as the use of local resources to serve global markets.

21
22
 3.1.3 Sociocultural

The social and cultural issues are most typically those over which the corporation has little
control. Population expansion, lifestyle changes, career expectations, consumer activism,
geographical shift, level of education, liveable wages, and others are examples of societal
developments.

         First and foremost, occupational health and safety. The actions implemented by
Global Oriental Berhad are to prevent workplace accidents or injuries and to maintain a safe
and congenial work environment for their employees and stakeholders, particularly during the
pandemic. To ensure the safety and wellness of their employees, GOB has implemented their
own set of internal standard operating procedures "SOPs" in addition to the relevant laws,
guidelines, and regulations issued by the Ministry of Health, Ministry of Works, Construction
Industry Development Board, and other related agencies. GOB even established the Safety
and Health Committee "SHC" to regulate and enforce safety guidelines for their employees
and construction workers. As a result, no work-related injuries were reported at GOB
construction sites or headquarters in FY2021.

         GOB believes that training will boost the group's growth while also assisting in the
personal development of their employees. They highlight the need of educating their staff in
order for them to gain the necessary skill sets that will assure their continuing greatness by
conducting the training online in order to limit the spread of Covid-19 throughout the year
2021.

Figure 2
Trainning and Education

        

23
 Additionally, the GOB recognizes the value of rewarding their personnel for their
dedication. As a result, they offer a wide range of benefits to their employees, including
health insurance, group hospitalization and surgical coverage for staff and dependents, group
personal accident coverage, compassionate leave, marriage leave, and company assistance
paid in cash for new births, marriages, natural disasters, and family member deaths. All of the
perks are intended to encourage and care for their employees' well-being.

         Furthermore, the GOB is critical to the work culture of diversity and inclusion. All
employees are given equal opportunity and treated equitably based on their qualifications and
credibility. They want to encourage multiculturalism and eliminate all forms of prejudice
based on gender, age, ethnicity, or religion.

         The GOB has also given to a number of organizations because they are aware that
their operations may have an impact on the areas in which they operate. They feel a sense of
duty not only to their employees, but also to the community, and strive to maintain positive
relationships with them. In addition to building a school close to one of their construction
sites, the GOB has donated money, food, and home goods to the community.

Figure 2
Preloved item donation to Ti-Ratana Welfare Society

3.1.4 Technology

The fast development of technology today has disrupted many sectors of the goods and
service industries, and real estate services are no exception. There are a number of
technological elements that have an impact on Global Oriental Berhad such as technology-

24
related supply chain disruption, population access to technology, empowerment from mobile
phone use, innovation in product offers, innovation in customer services, and other factors.

         Following that, client expectations are projected to shift in tandem with the
advancement and dissemination of mobile technologies in the service industry. Global
Oriental Berhad must not only satisfy and manage the customer's expectations but must also
innovate in order to outperform its competitors.

         For a property developer with a local market focus, keeping up with technological
advancements is essential to retaining a competitive edge. As a result, Global Oriental Berhad
has created 3D virtual tours that allow its customers' prospects to explore the housing or real
estate they are interested in that is only a short distance away. 3D virtual tours can be viewed
at any time and from any location. This project allows the company's development to be
displayed to more customers, thereby improving the company's brand.

         In addition, Global Oriental Berhad must rearrange its supply chain as rapid
technological innovation has disrupted it while simultaneously lowering production and
service costs. Supply chains must be restructured to provide greater flexibility in meeting
consumer needs and cost structures. The government and the private sector also need to
spend resources to create new solutions by investing in research and development at the
macro and micro levels if there is a climate of creative disruption in Malaysia.

3.1.5 Environment

Environmental and sustainability concerns have grown in importance for businesses over the
past ten years. Organizations are being urged to follow environmental standards by the
government and pressure groups. Safe water treatment, increasing focus on sustainability,
laws regulating pollution, climate change, limiting carbon footprints and insurance policies
are all considered in STEEP analyses' environmental component.

         The priority for product innovation at Global Oriental Berhad is also affected by
environmental norms. Most products are not designed to meet traditional value propositions
but instead are designed based on environmental regulations and expectations. Global
Oriental Berhad's operating costs will also increase with extreme weather due to the need
for a more adaptable supply chain to deal with this factor. We frequently observe the

25
construction process being briefly halted owing to inclement weather. This is not something
to be taken lightly.

         Besides, Global Oriental Berhad also needs to plan to comply with rules and
expectations in the service sector as recycling has rapidly evolved as a new norm. This is
actually not a good thing for Malaysia's economy. Furthermore, Global Oriental Berhad can
take opportunities in the renewable technology sector because the government provides
subsidies to invest in this sector.

3.2 5 Forces Competitive Model by Michael Porter

3.2.1 Threat of potential new entrants

The first force is the threat of new entrants which is related to the barriers for the new entrant
to enter and the retaliation expected from the old industry participant. Barriers to entry mean
when the companies compete with the other participant in that industry to make the level of
barrier high or low. When the barriers are low the new participant can easily enter the
industry and conquer the market share by themselves which makes a big threat to the old
participant that has been in a long time in that industry. When the barriers are too high it will
be the opposite, which is that the new participants hardly make an entry into the industry
because they can’t handle the threat that comes from the old participants that have been
monopolizing the industry.

For example, Global Oriental Berhad (GOB) is a company that operates in the
property industry in Malaysia and has been led by a big company such as Sime Darby who
has more than RM15 billion market share capital compared to Global Oriental Berhad has
only RM120 million market share capital. So, the entry levels for this industry are very high
which makes the new entry hardly make an effect on the old participants in the industry such
as Sime Darby. According to Porter, there are seven main factors that influence the level of
entry barriers, which are supply-side economics of scale, network effect, switching cost,
capital requirement, unfair advantage, unequal access to the distribution channel, and lastly
government policy. This has been proven by what happens between GOB and Sime Darby,
which is that Sime Darby has more advantage because of their big capital and also famous for
their cost and quality.

26
27
 3.2.2 Bargaining Power of Suppliers

The second forces are bargaining power of suppliers which means the suppliers can exert
power over companies competing within an industry by mark up the price or decreasing the
quality of their product. This can be seen when in the industry the number of suppliers is low
and when at the moment the industry participant needs raw material to make their product the
supplier can increase the price because the participant doesn’t have any other option to get
the material for their own product. But this power is related to the number of suppliers in the
industry which is if the number of suppliers is high then the power of bargaining for suppliers
is low, its opposite is when the number of suppliers is low the power of bargaining for the
supplier is high.

For example, Global Oriental Berhad (GOB) is a participant in the property industry
that need a lot of raw materials to keep its business running every time. Based on the annual
report 2021, GOB spends 85% of its budget on suppliers, which means the suppliers for GOB
have the bargaining power which makes GOB spend more than 80% just for suppliers. It also
means GOB doesn’t have the option to choose the suppliers or there is no substitute or the
switching cost is too high for GOB.

3.2.3 Bargaining power of buyers

The third force is the bargaining power of buyers or customers which is opposite to the
second force. This means the buyers or customers have the bargaining power to decrease the
costs even though the customer wants a high-quality product or excellent services at a lower
price. This can make the participant have to compete to lower prices to get buyers. These
forces also have a similar element which is strong only when the number of buyers is low
while the number of buyers is high then they can bargain the high-quality product for the
lower price. They also can bargain for a low price when the buyer or customer buys a big
amount from that industry.

For example, Global Oriental Berhad provides products that are related to property
such as building a house or building for their customer. Now, Global Oriental Berhad already
completed 19 of its products for their buyer. Even though GOB is not a big company, they
also have big projects such as the Pavilion Embassy. This means GOB has many buyers or

28
customers which means the customer doesn’t have the power of bargaining to get the high-
quality product for a lower price.
3.2.4 Threat of substitute products

The fourth forces competitive model by Porter is the threat of substitute products which
means the product can get from an outside industry that performs the same functions as the
product that the industry produces. This can happen when the buyer or customers can satisfy
their requirement with a different service or product from another industry which causes the
original industry cannot to set a higher price because it will make the buyer or customer
choose the substitute product compared to the original product. It also will make the
substitute product more attractive to the buyers or customers. The level of threat is related to
the number of products with similarities of functions between the original product and
substitute product which is if the number of products that have similarities is high then the
buyers will make the decision to get the substitute product compared to the original product.

For example, Global Oriental Berhad's original product is related to the property
which is a house or building. A high threat of alternatives means that customers have access
to alternative products or services from other industries of the economy. There will be no
threat to GOB because there is no substitute product for their main product which is building.
So, the customer can only get the product that is related to the property only within the
participant in the property industries only.

3.2.5 Industry Competition

Lastly, competitive rivalry is common in business when the company competes with its rival
or competitor, especially in the same industry. However, these forces are related to the
previous forces because to get the competitor's share of the market the competitor will
compete in the determination of price, quality of product or services and innovation of the
product. The competition between the competitors will be more intense when the customer or
buyers have many options to choose from which only have a little bit of difference between
the competitors. Industry growth also plays an important role in this force because if the
growth of the industry is slow then the old participant that has already stayed a long time in
the industry will be the tough competitor to get their market share.

29
 For example, there are many competitors in the property industry in Malaysia which
will make GOB struggle to compete with the old participants that already hold many market
shares compared to Global Oriental Berhad. The biggest competitor in the property industry
in Malaysia is Sime Darby. Also, the property industry product lacks differentiation because
it depends on the unique idea of each company to make a product that is different compared
to the competitor which will lead to the same product between competitors and then having to
compete at other factors.

4.0 SITUATIONAL ANALYSIS 

4.1 SWOT Analysis

SWOT analyzes a company's strengths, weaknesses, opportunities, and threats. SWOT
Analysis is internal and external. Global Oriental Berhad's internal strengths and weaknesses
while opportunities and threats are external to SWOT. SWOT Analysis allows Global
Oriental Berhad to compare its business and results to competitors and the industry.

Helpful Harmful

Strengths
 30 years of experience
 Expanded its network of
directly
 Extends the monitoring and
enforcement of health and
Internal
Weaknesses
 Negative attitudes of customers
have had an impact on retail
sales
 Debt level has increased
 Disrupted both ongoing

safety initiatives and future planning.

 No limit on the term of service  Construction has been slow
 Well-versed in risk down
management  High average age of directors
 Net cash position is over 60%
of market cap
 Earned high profit revenue in
2021

30
 Opportunities
 Listed on Bursa Malaysia
Securities' Main Market
 GOB's CSR programs
communicate its altruistic views
External
Threats
 Property market remained slow
and muted
 The Malaysian Central Bank
lowered its prediction for the

 Employed 14 new employees country's gross domestic product

(13% of new hires) and had 8%
turnover
 Malaysia’s positive outlook of a
construction industry
 New contracts have been
offered
4.1.1 Strengths
 Remains weak and tough under
economic uncertainty
 Challenging business, economic,
property sales, and development
conditions
 Decline sale due to COVID-19
 Climate change

The ability and skills that offer the organization distinctive competencies and competitive
advantages in implementing plans in pursuit of its objectives are referred to as strengths.

Global Oriental Berhad has 30 years of experience in the construction industry and
establishing and developing an effective Board. The Group has also been involved in
property construction since 1992 and has successfully created and handed over various
residential and commercial properties. They expanded their business by focusing on property
development and trading and distributing premium household brands. The Group's revenue
composition ratio was 94:6 on 31 March 2021. (Annual Report of Global Oriental Berhad,
2021)

Global Oriental Berhad expanded its network of directly served clients to cover
central Peninsular Malaysia, where high property developments. The Group's key
competence is property development. In Selangor, Penang, and Klang Valley, we've
developed mixed residential and commercial properties, corporate and service suites, private
residences and apartments, integrated stores, and secured and gated residential houses.
Selangor and Klang Valley have major projects, whereas Pahang and Perak have upcoming
ones.

Global Oriental Berhad extends the monitoring and enforcement of health and safety.
They have a workplace free of injuries, so they hold regular safety briefings and meetings to
discuss potential dangers and discuss ways to eliminate them. They have a site safety section
that is responsible for making routine inspections of all of their building sites, where they
must inspect for potential dangers and implement measures to eliminate or reduce them.

31
Every Monday morning, before work begins, they have toolbox meetings at each of their
facilities.

The Board considers there should be no limit on the term of service of independent
directors because their independence of mind, skills, experience, expertise, and integrity are
of paramount importance. These traits are more important than years on the Board in
determining Independent Directors' function and effectiveness. The Board will ask
shareholders annually to retain independent directors beyond 9 years. The Board has no
immediate plans to implement two-tier voting to retain independent directors beyond 12
years. (Annual Report of Global Oriental Berhad, 2020)

The firm is well-versed in risk management. The organization has a constant

procedure for detecting, analyzing, monitoring, and managing serious risks. The Executive
Directors and the staff visit the Group's property on a regular basis to keep an eye on how
things are going. During the visits, the manager gives an update on the status and
performance of the various estates, as well as address management challenges and possible
solutions. In addition, internal auditors assess The Board to identify, evaluate, and manage
major risks. Audit Committee, Risk Management Committee, and internal auditors examine
ongoing processes. The Risk Management Committee reports directly to the Board and is
responsible for coordinating the Group's entire risk management activities, including
reviewing risk management policies, risk exposure, and risk mitigation measures and
strategies.

Global Oriental Berhad's net cash position is over 60% of the market cap. Cash
holdings are cash in hand or invested in current assets and dispersed to investors. The
company's cash flow determines how quickly it pays debts. Cash holdings are vital for firms
because they provide liquidity, allowing them to fulfill obligations on schedule even in poor
times. The corporation must have financial reserves to expand sales and earnings, establish a
positive cash flow, and live prosperously.

The Group earned RM421.4 million in revenue and RM15.6 million in pre-tax profit
in FY2022, compared to RM419.0 million and RM17.2 million in FY2021.In FY2022,
Property Development produced 94% of the Group's income and is expected to remain the
key contributor in FY2023. Trading and Retail contributed the rest. Non-core Trading
Division posted an RM3.8 million (FY2021: RM4.1 million) operating profit and RM23.9
million in sales (FY2021: RM26.1 million). As of 31 March 2022, net assets per share

32
climbed to RM0.56 (FY2021: RM0.53) while the gearing ratio increased from 0.77 to 0.88
times as the Group's debt level increased to RM215 million (FY2021: RM179 million). The
Group's cash was RM109 million (FY2021: RM125 million). (Annual Report of Global
Oriental Berhad, 2021)

Global Oriental Berhad has a strong sustainability framework in business. The key
success of Global Oriental Berhad company's sustainability is a core business factor and a
vital component of their business growth. In light of the COVID-19 epidemic and new work
methods, we reassessed materiality during this reporting period. When examining the
evaluation list, they included "Ethics and Integrity." and regulatory Compliance owing to
anti-corruption rules governing openness and integrity. To avoid overlap, they eliminated
"Environmental Compliance."

33
 4.1.2 Weaknesses

The weaknesses are the downsides that prevent an organization from implementing plans in
order to achieve its objective.

Based on the annual report 2019, generally negative attitudes of customers have had
an impact on retail sales. The profit margin is more expensive products. This can be seen in
the resulting in a much reduced operating profit of RM1.7 million, compared to RM2.4
million in FY2018 notwithstanding the fact that in FY2019 a higher revenue was generated.
Global Oriental Berhad anticipates maintaining adequate levels of revenue and margin
throughout FY2020 with ongoing marketing and promotional initiatives that are very
aggressive. (Annual Report of Global Oriental Berhad, 2019)

The group's debt level has increased to RM207.0 million as of the 31st of March
2020, despite the fact that net assets per share have decreased to RM0.56 (from RM0.62 in
FY2019), and the gearing ratio has increased to 0.83 from 0.75 times (FY2019: RM210.2
million). In addition to that, the Group's cash position stayed in a satisfactory and
comfortable position of RM86.2 million (FY2019: RM133.2 million). The majority of the
reduction was put toward making payments to creditors and credit facilities that were
associated with the projects. Although the Group as a whole posted a loss for the period, it
reported a far smaller loss before taxes in comparison to the RM79.7 million recorded in the
previous fiscal year. (Annual Report of Global Oriental Berhad, 2020)

Based on the annual report 2021, the past year was unprecedentedly difficult for the
firm due to the Covid-19 pandemic. The MCO's temporary shutdown disrupted both ongoing
initiatives and future planning. Despite a difficult FY2021, GOB posted increased revenue of
RM419.0 million, an increase of RM158.1 million over RM260.9 million in FY2020, and a
pre-tax profit of RM15.7 million vs a pre-tax loss of RM27.4 million in FY2020. Better
financial performance was due to proactive and prudent cost and liquidity management and
cautious land purchase and new launches. This shows that the group faced financial
difficulties because the pre-tax loss is higher than the pre-tax profit. (Annual Report of
Global Oriental Berhad, 2021)

For instance, the property Development Division accounts for 94% of the Group's
overall revenue, while Trading Division accounts for 6%. The Group anticipates the core
Property Development Division to continue to contribute significantly in FY2022 and beyond

34
with unbilled sales of RM514.5 million as of 31 March 2021. Due to higher revenue of
RM26.1 million, Trading Division posted an RM4.0 million operational profit (FY2020:
RM1.2 million) (FY2020: RM 20.3 million).

The Global Oriental Berhad’s construction has been slow down in 2019 and 2020.
The fiscal year (FY2021) has been a difficult first for GOB Group as they have struggled
with the spread of the Covid-19 epidemic from the start. Construction activities, sales and
collections, and property transaction processes were all hampered during the MCO period
due to the implementation of movement control measures and travel restrictions to prevent
the spread of the Covid-19 epidemic.

Lastly, the flaw of Global Oriental Berhad is the high average age of its directors.
Although they have significantly more experience than younger directors, one-third of the
Group's directors are over 60 years old, and their physical strength may not be as robust as
younger directors. The capacity to think and analyse must be influenced as people get older.
Furthermore, directors who are seventy years of age or older must resign under Section 129
of the Companies Act 1965 and must be reappointed yearly under Section 129(6) of the same
Act.

4.1.3 Opportunities

The opportunity is the organization's ability to take advantage of environmental

circumstances to gain a competitive edge. Since October 2003, they've been listed on Bursa
Malaysia Securities' Main Market. Property development became the Group's key strength in
1992. Since then, they've built and sold several residential and business properties. Our
township development projects are mostly in Klang Valley and Penang. They've always
given talented, qualified Malaysians priority while building our staff. 98.8% of our current
personnel are Malaysians. (Annual Report of Global Oriental Berhad, 2019)

As a responsible corporate, they owe the local communities where they operate. The
Group believes in supporting the local community by using our time, effort, knowledge, and
resources for long-term effect. GOB's CSR programs communicate its altruistic views. In FY
2019, they worked with a nearby elementary school to alleviate construction disruptions.
Enclosing and air-conditioning classrooms reduced fugitive dust from our building site. They
made classrooms more comfortable for pupils. First, they fixed the louvered classroom

35
windows so may be shut. 15 classes got 30 air conditioners. Polycarbonate windows
optimized the air conditioning system. This keeps classrooms dust-free. They provided RM
2,300 each month to pay their electricity expenses due to the new air-conditioning units till
the job was finished. (Annual Report of Global Oriental Berhad, 2020)

Based on the 2020 annual report, they employed 14 new employees (13% of new
hires) and had an 8% turnover. Eight new hires (57%) were aged 30 to 50. This group has
significant industry experience and decision-making skills for our business. They don't
discourage young talent under 30 who want to learn and contribute to the Group's growth.
The Group encourages its staff to further their education and professional growth in the field
of real estate development. They think that if we invest in our staff, they will, in turn, invest
in the business and help it develop. The Board believes in offering a fair and equal chance to
candidates with the needed ability, experience, competence, and other qualifications, without
gender, age, or ethnicity discrimination. The Group has no imminent plans to establish a
diversity policy in recruitment. (Annual Report of Global Oriental Berhad, 2020)

Moreover, Global Oriental Berhad has been Malaysia’s positive outlook on the
construction industry. The decline in Coronavirus during 2019 and 2020 is projected to have
contributed to the industry's growth in the fourth quarter of 2021. So, their competence in
offering end-to-end project management services to our clients ensures projects are finished
on time and effectively, which helps limit the risks of growing costs. As a full-service project
management firm, they had to coordinate closely with their suppliers to address the scarcity
of available foreign workers. As they buy construction supplies regularly and in large
quantities from the same suppliers and manufacturers, we are able to lock in lower pricing.
The inexpensive housing market is predicted to rebound more quickly than the middle-tier
and luxury housing markets throughout the projection period, while the office and retail
markets are predicted to recover more slowly. Based on the annual report 2020, they had they
kept going and managed to construct Villa Heights 2, 46 units of semi-detached houses and 1
unit of bungalow which were given over to purchasers in June 2020. (Annual Report of
Global Oriental Berhad, 2020)

Moreover, Global Oriental Berhad has been offered new contracts. In 2021, they
launched new projects which are Pavilion Embassy, and Mayfair Residences, a 57-unit
private home development with a gross development value (GDV) of RM184.6 million
located at Jalan Ampang in Kuala Lumpur, which was also released to the public in FY2021.

36
So far, it has seen a good rate of uptake, at 77%. For the past year, the Group has been
concentrating on finishing off ongoing projects and selling off the finished buildings while
also proceeding with caution with the introduction of any new projects. During FY2021, they
took the initiative to implement a number of different marketing methods, such as the
creation of 3D virtual tours on our corporate website to increase the interest of potential
customers and to increase the company's brand recognition and popularity. (Annual Report of
Global Oriental Berhad, 2021)

4.1.4 Threats
Threats are external forces that prevent a company from gaining a competitive edge. In 2018,
property development, construction, trading, and distribution of the Group's premium items
were all problematic. The property market remained slow and muted in FY2019, with
lackluster sales and more unsold completed properties. Weak consumer demand also boosted
their sales costs and profit margin. Trade wars, commodities and petroleum price volatility,
and financial markets also harmed Malaysia's economy in 2018. (Annual Report of Global
Oriental Berhad, 2019)

Based on the 2020 annual report, on August 14, 2020, the Malaysian Central Bank
lowered its prediction for the country's gross domestic product for 2020 to be between -3.5%
and -5.5%. In addition, the severe COVID-19 pandemic is still active and is continuing to
generate unusual times and significant uncertainty moving forward. In addition to this, it
makes the already-severe social and economic situations even worse, as well as the continued
abundance of unsold merchandise. In keeping with this optimistic estimate and the continued
spread of the Covid-19 epidemic, the Group anticipates that the current state of the real estate
market and their trading business will continue to be difficult and challenging throughout
FY2021. In spite of the current difficulties, the Group will carry on with its constructive and
beneficial measures, including those designed to save financial resources and prudently
manage future launches as well as the operations of existing projects. (Annual Report of
Global Oriental Berhad, 2020)

Based on the 2020 annual report, the property industry as a whole remains weak and
tough under economic uncertainty. Covid-19 disrupted and challenged our trade division last
year. Despite the temporary closure of physical outlets in shopping malls and Duty-Free
Zones for a few months and a reduced volume of tourists during FY2021, the trade division
generated an operating profit of RM4.0 million on revenue of RM26.1 million. This resulted

37
from attempts to reduce stocks and focus on high-demand goods. (Annual Report of Global
Oriental Berhad, 2020)

For FY2022, the Group predicts challenging business, economic, property sales, and
development conditions. Covid-19 will have far-reaching detrimental consequences on the
economy and property business. In addition, the overall scenario is afflicted by rigorous
efforts to contain the resurgent Covid-19, however, creating standard operating procedures to
alleviate restrictions for fully vaccinated individuals and pivoting toward National Recovery
Plan is under consideration. The poor property market and unstable economy caused
challenges for the Group's Property Development Division (Annual Report of Global Oriental
Berhad, 2021).

The Group must be cautious in all development initiatives to ensure project success
and minimize unsold inventory. No new property development projects were launched during
the fiscal year, except for Galleria 2 and Villa Heights 2 in Seri Kembangan and Phase 2 of
the current Pavilion Embassy project, which includes two residential tower blocks. The
Pavilion Embassy project provided 76.3% or RM94.7 million to the division's revenue in FY
2019. This makes declined sales due to COVID-19. (Annual Report of Global Oriental
Berhad, 2019)

Moreover, climate change is the greatest threat to them, and as real estate developers,
they strive to reduce their carbon footprint through energy conservation. Energy management
leads to efficient operations minimizes fuel and power usage and increases overall
profitability. They intend to maximize energy efficiency by monitoring electricity
consumption at our headquarters and fuel consumption on building sites.

For instance, based on the annual report 2020, they consumed less petrol at the
Pavilion Embassy in FY2019 compared to FY2018, when they consumed 120,000 liters and
65,000 liters, respectively. This resulted in a decrease of 1,945 gigajoules (46%) in energy
use in FY2020 compared to FY 2019. This considerable decrease is the result of a shift in
construction operations, as last year's piling work required more energy than this year's
building construction. The group possesses 500 acres of development land (including those
under joint ventures). Despite headwinds in the property sector, the Group will continue to
increase its land bank through strategic partnerships or acquisitions. As of 31 March 2019,
the Group's unbilled sales from active projects were RM655.0 million. (Annual Report of
Global Oriental Berhad, 2019)

38
39
4.2 TOWS Analysis 
TOWS
Matrix
(S)trengths
S1: 30 years-experience
S2: expanded its network
of directly
S3: extends the monitoring
and enforcement of health
and safety
S4: no limit on the term of
service
S5: well-versed in risk
management
S6: net cash position is
over 60% of market cap
S7: Earned high profit
revenue in 2021
Internal Factors
(W)eaknesses
W1: Negative attitudes of
customers have had an
impact on retail sales
W2: Debt level has
increased
W3: Disrupted both
ongoing initiatives and
future planning.
W4: Construction has been
slow down
W5: High average age of
directors
External Factors
(O)pportunities
O1: listed on Bursa Malaysia
Securities' Main Market
O2: GOB's CSR programs
communicate its altruistic views Bank lowered its prediction
O3: employed 14 new employees for the country's gross
(13% of new hires) and had 8%
turnover
O4: Malaysia’s positive outlook
of a construction industry.
O5: New contracts have been
offered.
Strengths/ Opportunities (SO)
SO1: (S1 + O3)
Maintaining excellent
performance in the industries.
SO2: (S2 + 03)
Expanding business size and
achieving long-term goals.
SO3: (S3 + O6)
Optimize the efficiency of the
operation.
SO4: (S7 + O5)
Implement stability strategy to
maintain the current position of
the company
SO5: (S5 + O4)
Implement production strategy to
investing and increase the
production of the business.
Weaknesses/ Opportunities
(WO)
WO1: (W1 + O4 + O1)
An opportunity to identify new
alternatives to improving profit.
WO2: (W3 + O1 + O6)
Creating opportunities to expand
more on business by investing on
production management.
WO3: (W4 + O2 + O4)
Applied business strategy to
improve and increase business
performance, reputation and
profits
WO4: (W5 + O5)
Hiring more new talented
generation employee to improve
management and production.
(T)hreats
T1: Property market
remained slow and muted
T2: The Malaysia Central
domestic product
T3: Remains weak and
tough under economic
uncertainty
T4: Challenging business,
economic, property sales,
and development conditions
T5: Decline sale due to
COVID-19
T6: Climate change
Strengths/ Threats (ST)
ST1: (S2 + T1)
Implement growth strategy
and expand target market.
ST2: (S3 + S4 + S5 + T2 + T3
+ T4)
Implementing stability
strategy on production and
operation location as well
as marketing strategy.
Weaknesses/ Threats
(WT)
WT1: (W3 + T3)
Implementing
diversification strategy to
involve and improve in
more core business
WT2: (W4+T4)
Applied growth strategy to
optimize the efficiency of
the operation
40
 4.2.1 SO (Strengths and Opportunities)

Based on the analysis of combined strengths and opportunities, Global Oriental Berhad
maintained an excellent performance in property industries. With this strength, they had built
on 30 Years of experience in the aspect of industries of construction as well as developing an
effective Board. With sufficient years of experience and sturdy management, the group has
successfully created and handed over various residential and commercial properties. Due to
this, the achievement of Global Oriented Berhad has been listed on Bursa Malaysia
Securities' Main Market which has provided opportunities for the company to keep its
position stable as one of the top property development companies that have always been
giving talented and qualified projects.

Furthermore, the company has used its strength of concentration strategy to expand its
network. Most of the area in central Peninsular Malaysia which is high property
developments has been covered by the company. For instance, areas that are located around
Selangor, Penang, and Klang Valley. This is because the company has the essential strength
to expand the business, which is extensive expertise with more excellent knowledge on
expanding business to cover more areas such as Pahang and Perak, and also, they are able to
manage the possible risk caused by the expansion. Therefore, the company has the
opportunity to expand the business because it has the ability to create a wide property project
which has led the company to secure a title in Bursa Malaysia Securities' Main Market.

In addition, Global Oriental Berhad also can optimize its net income and business
performance as it earned high-profit revenue in 2021. According to Annual Report 2021, the
company’s property development has produced 94% of the Group’s income and is predicted
to be the main contributor in FY2023. The operating profit and net assets have increased. In
terms of opportunities, with the increase in profit and performance, the company has been
offered new contract projects where they have launched new projects with a gross
development value of RM186.6 million. As a result of this, the company has taken the
opportunity to implement a different marketing method in order to increase the company’s
brand recognition and popularity.

Moreover, the employment of the company is being taken care of as they have been
monitoring and managing it well. The strength of this part is the company has always been
managing the terms of service of independent directors. They have ruled out that there should
be no limit on the term of service as the team's independence of mind, skills, experience,

41
expertise, and integrity are their priority. For the opportunities, Global Oriental Berhad has
been a leading company by giving a positive outlook on the construction industry. By the
fourth quarter of 2021, the company has shown significant growth where most of the end-to-
end project management is finished on time and effectively. Meaning of this, the company
resources of employment have contributed their skills, experience, talent, expertise and
integrity in order to overcome challenges of declining projects into an opportunity to increase
and improve their services.

4.2.2 WO (Weaknesses and Opportunities)

 Based on the analysis by combining weakness and opportunities or by allowing weakness to

take advantage of opportunities, many possible strategies can apply in Global Oriental
Berhad to overcome the weakness. Firstly, the company can use CSR programs and network
advertising to flip the negative attitudes of customers toward retail sales. In 2018, the
operating profits of RM1.7 million were reduced compared to RM2.4 million. Based on this
weakness, the company can use strategies of CSR programs to communicate its altruistic
views by supporting the local community in building a positive image and awareness among
their consumer. In addition to that, Global Oriental Berhad also can use its reputation as
Malaysia's positive outlook on the construction industry to overcome weakness and turn it
into an opportunity. With the growing project offer and their competence to ensure projects
are finished on time and effectively. Moreover, they are also able to lock construction
supplies at much lower prices which have led to an inexpensive housing market. Therefore,
the company has taken these opportunities to create positive growth in its business
performance and services to its customers and potential customers.

Furthermore, due to the Covid-19 pandemic, the company's temporary shutdown

disrupted both ongoing initiatives and future planning. This has led to financial difficulties
because the pre-tax losses are higher than the pre-tax profit. However, the opportunities taken
by gaining a new contract offer where they had launched a new project with a 57-unit private
home development with a gross development value of RM184.6 million will give the
opportunities to recover back disrupted activities that have caused financial difficulties.

The effect of the pandemic has slowed down construction projects in 2019 and 2020
as most of the main activities and projects were hampered due to the implementation of

42
movement control measures. With this weakness, it can take advantage of opportunities to
improve and increase business performance, reputation and profits. The opportunities of the
company which have been Malaysia’s positive outlook of the construction industry and
offered new contracts have helped to overcome the weakness. For instance, their competence
in offering end-to-end project management services and ensuring the project will be finished
on time and effectively has helped in limiting risks of growing costs. The new contract offers
also have contributed to recovering the losses where the company has been concentrating on
finishing off ongoing projects and selling off the finished buildings while also proceeding
with caution with the introduction of any new projects.

Lastly, Global Oriental Berhad can use Human Resource Management strategies in
hiring more new talented generation employees to improve management and production. As
the company has been running for more than 30 years, the average age of its directors is high
even though they completed with higher experience than younger directors. But their
capability and strength may not be robust as younger directors. Therefore, the company has
made a move in employing 14 new employees that have significant industry experience and
decision-making skills which is a great resource to the company as they are passionate and
ambitious to contribute to the Group's growth.

4.2.3 ST (Strength and Threats) 

Based on the analysis by combining strengths and threats using strengths to avoid threats,
many possible strategies can apply in Global Oriental Berhad to overcome threats. Firstly,
Global Oriental Berhad can implement growth strategies and expand its target market. As
property industries are gaining a competitive edge, the market has shown a steep fall and
remained slow due to lackluster sales and more unsold completed properties. However, the
company can use the opportunities to turn over the threats by expanding its network of
directly served clients to cover central Peninsular Malaysia. As a result of this, widening the
target market to compete with property development to locations such as Selangor, Penang,
and Klang Valley which are developed mixed residential and commercial properties.

In addition, due to the pandemic Covid-19 and the Movement Control Order that has
been implemented, various threats have been faced by the company such as economic
uncertainty, challenging business, property sales dropped, and development conditions as
well as the Malaysia Central Bank lowered its prediction for the country's gross domestic

43
product. The economic situation is getting worse as there is a continued abundance of unsold
merchandise and the state of the real estate market and trading business will be challenging.
Moreover, economic uncertainty has led to a temporary closure of physical outlets that are
the main attraction of tourists. This resulted from attempts to reduce stocks and focus on
high-demand goods. The unstable economy has caused challenges as the standard operating
procedures to alleviate restrictions have slowed down the production and operation of Global
Oriental Berhad.

From here, the company will use its strength to avoid threats they implementing a
stability strategy on production and operation location as well as a marketing strategy. The
company should start by extending the monitoring and enforcement of the health and safety
of its workforce and the environment of the workplace. With this, productivity will be more
efficient and effective. Other than that, the company also can regulate no limit on the term of
service of independent directors as their traits of mind, skills, experience, expertise and
integrity are the assets of the company in decision making and strategies as well as well-
versed in risk management.

4.2.4 WT (Weaknesses and Threats)

Based on the analysis carried out by combining the threats and weaknesses or a process of
minimizing the weakness and avoiding threats, several strategies can be applied in Global
Oriental Berhad. The first strategy is the diversification strategy can also help Global Oriental
Berhad to involve and improve more of the core business of the company. As mentioned, the
effect of MCO has temporarily disrupted both ongoing initiatives and future planning. The
company had to postpone its main core business for a period of time which has brought
negative performance on their sales and achievement. On the other hand, the company is also
facing some threats such as economic uncertainty. When the economy’s future outlook is
unknown, it is said to be experiencing economic uncertainty. Because their expectations are
clouded and they are unable to predict the effects of their decisions, business in the economy
will suffer as uncertainty increases. In order to achieve a smooth path of lifetime
consumption, consumers who have ambiguous expectations about their future income stream
could decide to delay their consumption today. In order to minimize all these weaknesses and
avoid threats, the company has to involve and improve more core business because new
business is always a new start for the company, for a new efficient young, intelligent team,
new market area, and new environment. So, the company eventually would not depend on

44
only one core business for profit, they could manage to survive in the industry even if the
business was not in a good position because the company would be financially stable.

Apart from that, Global Oriental Berhad also can try a growth strategy to optimize the
efficiency of the operation. As per the company’s weakness, the company is struggling with
the progress of construction that has been slowed down as they struggled with the spread of
the Covid-19 epidemic. On the other hand, the challenging business, economic, property
sales, and development conditions are also significant threats to Global Oriental Berhad.
Therefore, the company can implement standard operating procedures to alleviate restrictions
and be cautious in all development initiatives to ensure project success and minimize unsold
inventory.

4.3 Internal Factor Analysis Summary (IFAS)

Company
Key Internal Factor Weight Rating Score
S1 30 years-experience 0.15 4.5 0.675
S2 Expended its network of directly 0.05 4 0.20
S3 Extends the monitoring and enforcement of 0.05 4 0.20
Strengths (S)

health and safety

S4 Not limit on the term of service 0.05 3 0.15

2.6
S5 Well-versed in risk management 0.10 3 0.30
S6 Net cash position in over 60% of market 0.10 4 0.40
cap
S7 Earned high profit revenue in 2021 0.15 4.5 0.675
W1 Negative attitudes of customers have had 0.05 1 0.05
an impact on retail sales
Weakness (W)

W2 Debt level has increased 0.05 1 0.05

W3 Disrupted both ongoing initiatives and 0.10 2 0.20
0.5

future planning
W4 Construction has been slow down 0.05 2 0.10
W5 High average age of directors 0.10 1 0.10
Total 1.0 - 3.1

45
 4.4 External Factor Analysis Summary (EFAS)
Company
Key External Factor Weight Rating Score
O1 Listed on Bursa Malaysia Securities’ Main 0.15 4.5 0.675
Market
Opportunities (O)

O2 GOB’s CSR programs communicate its 0.10 3 0.30

altruistic views

2.025
O3 Employed 14 new employees (13% of new 0.10 3 0.30
hires) and had 8% turnover
O4 Malaysia’s positive outlook of a 0.15 4 0.60
construction industry
O5 New contracts have been offered 0.05 3 0.15
T1 Property market remained slow and muted 0.15 2 0.30
T2 The Malaysia Central Bank lowered its 0.10 2 0.20
prediction for the country’s gross domestic
product
Threats (T)

T3 Remains weak and tough under economic 0.05 1 0.05

0.75
uncertainty
T4 Challenging business, economic, property 0.05 2 0.10
sales and development conditions
T5 Decline sale due to COVID-19 0.05 1 0.05
T6 Climate change 0.05 1 0.05
Total 1.0 - 2.775

4.5 Strategic Factors Analysis Summary (SFAS)

Duration
Intermediat

Strategic
Weight Rating Score
Short

Long

Factors
e

S1 30 years-experience 0.20 4.5 0.90 X

S7 Earned high profit revenue in 2021 0.15 4.5 0.675 X
W3 Disrupted both ongoing initiatives and 0.15 2 0.30 X
future planning
W5 High average age of directors 0.10 1 0.10 X
O1 Listed on Bursa Malaysia Securities’ Main 0.15 4.5 0.675 X
Market
O4 Malaysia’s positive outlook of a 0.15 4 0.60 X
construction industry
T1 Property market remained slow and muted 0.10 2 0.20 X

46
 Total scores 1.0 - 3.45

5.0 RECOMMENDATION

According to Global Oriental Berhad’s strategic issues, which is poor financial performance,
supply chain disruption, and has a relatively stressed balance sheet. There are three strategies
which SWOT and TOWS analysis can be suggested to overcome the situations.

The first best strategy that can be applied to the company to overcome the first
strategic issues is through production and business strategy to optimize net income and
business performance. The company should implement a production strategy where they take
the opportunities to expand the business towards high property developments locations.
Moreover, the company also should maintain their performance on operation so that they can
accept new projects and contract offers where they are able to launch new projects with
higher gross development value. 

The second best strategy in the TOWS analysis is directional strategy where the
company should be well versed in risk management. Serious risks are continuously identified,
analyzed, monitored, and managed by the organization. Regular visits to the Group's property
are made by the Executive Directors and staff to monitor operations. The manager provides
an update on the state and performance of the various estates during the visits, as well as
discusses management problems and potential remedies.The Group's whole risk management
activities, including examining risk management policies, risk exposure, and risk mitigation
plans and tactics, are coordinated by the Risk Management Committee, which directly reports
to the Board. With this, the company will come out with a planning and alternative to
overcome the issues. 

Finally, Global Oriental Berhad also can use growth strategy as a Malaysia's positive
outlook of a construction industry to overcome stressed balance sheets. With the growing
project offer and their competence to ensure projects are finished on time and effectively.
They have gained growth in the industries in the fourth quarter of 2021. Additionally, they
are able to secure building materials at significantly reduced costs, which has resulted in a
cheap housing market. With this, the company will able improve its business performance
and services to current and new clients, at the same time the company also have been
concentrating on completing ongoing projects and selling off the completed building while
simultaneously moving forward with the introduction of new projects with prudence.

47
48
REFERENCES

Annual Report of Global Oriental Berhad 2019. (9 December, 2022). Retrieved from
BursaMalaysia:
https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?
id=195491&name=EA_DS_ATTACHMENTS

Annual Report of Global Oriental Berhad 2020. (9 December, 2022). Retrieved from KLSE
SCREENER:
https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?
id=202743&name=EA_DS_ATTACHMENTS

Annual Report of Global Oriental Berhad 2021. (9 December , 2022). Retrieved from
BursaMalaysia:
https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?
id=210577&name=EA_DS_ATTACHMENTS

Global Oriental Berhad. (20 December, 2022). Retrieved from SIMPLYWALLST:

https://simplywall.st/stocks/my/real-estate/klse-gob/global-oriental-berhad-shares/
valuation

Property. (2022). Retrieved from Global Oriental Berhad:

https://www.gob.com.my/property.php

Rachel W.Y. Yee, A. C. (2010). An empirical study of employee loyalty, service quality and
firm performance in the service industry. International Journal of Production
Economics 124(1), 109 - 120.

Share Price Global Oriental Berhad (1147). (2022). Retrieved from MalaysiaStock.biz:
https://www.malaysiastock.biz/Corporate-Infomation.aspx?securityCode=1147

SIME Share Price: Sime Darby Berhad (4197). (2022). Retrieved from MalaysiaStock.biz:
https://www.malaysiastock.biz/Corporate-Infomation.aspx?securityCode=4197

Sridharan, M. (23 December, 2022). External Factor Evaluation (EFE) For Competitive
Analysis. Retrieved from THINK INSIGHTS: https://thinkinsights.net/strategy/efe-
analysis/

Sridharan, M. (23 December, 2022). IFE Analysis. Retrieved from THINK INSIGHTS:
https://thinkinsights.net/strategy/ife-analysis/

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