The domestic economy finally reopened following two years of pandemic-related restrictions. As COVID infections slowly declined amidst high vaccination rates achieved and with the easing of containment measures, the operations of the Company had stabilised. The nation’s transition towards endemicity in the reporting year augured well for the Company as the resumption of all economic activities continued to revitalise market and economic conditions to pre-pandemic levels.

While overall economic momentum saw forward progression, many industries across the world were confronted with supply chain disruptions and rising inflation. This was compounded by the rise of geopolitical tensions (with the War in Ukraine as a main disruptor to key commodities); the subdued recovery in China, constrained by enduring COVID-19 lockdowns; and the echoes of global supply chain disruptions that still reverberated through most of the first half of 2022.

Amidst an economic background which remains challenging, the Company persevered and managed to deliver commendable performance for the financial year ended 31st March 2023. The results reflect the agility and tenacity of the Company in reinventing our business to not just survive but also thrive, thus setting the stage for sustained growth in the years ahead.

The Company is now focused on expanding the product range of its core businesses by introducing new products and new export markets whilst actively seeking investment in new businesses.

Financial Review

The Company achieved a revenue of RM991.6 million, an increase of RM122.8 million or 14.1% as compared to the previous year’s revenue of RM868.8 million. This is mainly attributable to the full market reopening and recovery in this financial year and the fulfilment of backlog orders arising from the flood incident in December 2021.

Correspondingly, the Company achieved a higher combined profit before tax of RM91.3 million for the year under review, representing a significant increase of RM38.3 million or 72.2% as compared to the previous year. The increase in profitability was mainly attributable to higher revenue achieved, increase in interest income by RM5.6 million following the recent interest rate hikes and a one-off insurance claim received amounting to RM22.3 million related to the flood incident that occurred in December 2021.

Flood Mitigation Initiatives

The Company’s SA2 plant was affected by the unprecedented floods in mid-December 2021 due to the continuous heavy downpour in Klang Valley. Production operations were disrupted for quite some time as the factory was inundated by flood waters.

In response to the natural disaster, the Company has implemented various activities to mitigate damages and prevention of future recurrence.

Some of the initiatives include installation of flood barriers for low areas as well as placement of sandless sandbags at every door of the building. In July 2022, the Company had also completed the installation of a flood level indicator at the guardhouse. The Company had also moved all machineries including the electrical sub switch board to elevated platforms.

Moving forward, the Company will continue to invest in permanent structures for prevention of flood; in the form of rebuilding and strengthening the perimeter wall and installing resistant flood barrier gates. These structures should be completed within the next financial year.

I am happy to note that the insurance compensation in respect of the losses incurred during the flood has been finalised during the financial year.

Realignment of Global Production Base

As part of the realignment of global production for the Panasonic Group for cost efficiency and enhanced competitiveness, Panasonic Corporation (“PC”) had notified the Company of its decision to terminate the Small Kitchen Appliances businesses effective from 31st March 2023. Recognising that the Company would be incurring substantial restructuring losses as a result of the global decision to realign its production bases, PC had agreed to bear the entire restructuring costs incurred; including staff retrenchment costs, write-off expenses of facilities by PMMA for the termination of the businesses. As such, a claim amounting to RM 14.4 million has been made to PC and this has been recognised as other operating income received during the financial year. The claims received were in relation to the first phase of products terminated; whilst the claims for the remaining products will be made within the next financial year.

New Business Strategy

The Company is now focused on expanding the product range of its core businesses by introducing new products and new export markets whilst actively seeking investment in new businesses. This is to address the loss of the contribution from the termination of the two businesses namely rice cooker products and small kitchen appliances.

The Company has identified certain water related products which is currently under the development stage and should be launched within the next financial year.

Capital Management

As of 31 March 2023, the Company’s cash and cash equivalents stood at RM482.9 million compared to RM442.7 million in the previous year. The Company continues to maintain a conservative capital structure to have the flexibility and resilience to utilise internally generated funds for capital investments, sustain a stable dividend pay out to shareholders and to have the capability to pursue new investments.


Despite multiple headwinds faced, the Company continues to deliver value to its shareholders. For the financial year ended 31st March 2023, the Company is pleased to propose a final dividend of 107 sen per ordinary share; an increase of 39 sen as compared to the final dividend of 68 sen paid in the previous financial year. Together with the interim single tier dividend of 15 sen per ordinary share, the total gross dividend for financial year ended 31st March 2023 will be 122 sen (FY2022: 83 sen) per ordinary share.


Sustainability is ingrained in our business DNA and is clearly reflected in Panasonic’s Basic Management Philosophy. As part of the Panasonic group, the Board upholds its commitment to undertake responsible manufacturing practices, focusing on sustainability and good corporate governance. The Board remains focused in meeting the ever-changing business environment and our strong commitment towards action taken to ensure continuous sustainability efforts alongside our pursuit for business growth and creating long-term value for our stakeholders, in terms of sustainable living and advanced technological innovation.

The Company through collaboration with Panasonic Appliances R&D Centre Asia Pacific Sdn. Bhd. is developing new technology and expertise in sustainable engineering in order to deliver innovative solutions which will definitely improve our customers’ trust and confidence towards our business approach. Our establishment of the Manufacturing Capability Development Department to spearhead digitalisation of business as part of Industry 4.0 initiatives, will transform the Company through Industrial Internet of Things (“IIoT”), Robotics Process Automation (“RPA”) and Smart Robotics, in order to strengthen business competitiveness. Various actions such as structured training and development programme for Production Engineering Personnel, development of Information Sharing Platform and Innovative Meeting Platform are in our plans to drive the digital transformation culture.

I am pleased with the progress made and grateful to our stakeholders for their support on this important sustainability journey. More information on our many Sustainability initiatives is covered under the “Sustainability Report” section from pages 17 to 34.

IR 4.0

To further improve productivity and overall line efficiency, the Company is utilising Industry 4.0 technologies.

Last year, we implemented Computer Maintenance Management System (“CMMS”) throughout the company. The system helps the maintenance team do their jobs more effectively as well as assist management make informed decisions.

We are also making progress on our 5-year Robotics and Automation plan. Robotics has fully automated all 3D (Dangerous, Difficult, Dirty) jobs, further reducing our reliance on labour amid a labour shortage. In order to further reduce our reliance on manual labour and increase productivity, we will incorporate more robotics and automation into the assembly processes.

In Phase 1 of the Company’s long-term strategy, the Internet of Things (“IoT”) was successfully implemented in all Ceiling Fans Assembly Lines and Home Shower Assembly Lines last year. As part of Phase 2 of the implementation, we will expand IoT technology to our Vacuum Cleaners, Electric Fans, and Electric Irons Assembly Lines in the next reporting year.


The Company welcomed our newly appointed members of the Board, Mr Shinichi Hayashi, who was appointed on 1 April 2023 to fill up the vacancy due to the resignation of Mr Michikazu Matsushita and the appointment of Mr Takashi Sugihara on 1 June 2023 as successor to Mr Kenji Kamada in the position of Managing Director.

The Board remains focused in meeting the ever-changing business environment and our strong commitment towards action taken to ensure continuous sustainability efforts alongside our pursuit for business growth and creating long-term value for our stakeholders.

On behalf of the Board of Directors and management, I wish to place on record, our heartfelt gratitude to Mr Kenji Kamada for his services as Managing Director as his tenure with the Company was through the most challenging of times with the Covid outbreak, flood incident and the restructuring of businesses. His tenacity in dealing with the difficult tasks was commendable and we wish him well in his new assignment in the Panasonic Group. We also want to thank Mr Michikazu Matsushita for his services during his term as Non-Independent Non-Executive Director for all his valuable contribution these years.

Note of Appreciation

It has been a challenging few years, not just for us but also for the global market, but we have come out of these few years stronger on a positive growth trajectory with sound fundamentals. Critical to this success has been the support of our key stakeholders, namely our employees, Board of Directors, shareholders, business partners, suppliers, financiers and, of course, the communities in which we operate.

I would like to express a heartfelt appreciation to all our stakeholders for your commitment to the Company, without which we would not be where we are today. With your continued support, we will grow our regional business onwards and upwards.

Dato’ Azman Bin Mahmud