33 Annual Report 2020 >> Our Value Creation Strategy I N T R O D U C T I O N T O S T R A T E GY MA L AY S I A A I R P O R T S F U T U R E F. I . T. Our strategy is developed by taking into consideration our external environment, risks and opportunities as well as matters that could affect the achievement of strategic objectives and substantively the Group’s ability to create value over time. The COVID-19 pandemic had brought sudden and unprecedented challenges to our business operations, resulting in massive revenue shortfall due to the rapid decline in air travel demand. Despite that, the safety and comfort of passengers continue to be our top priority. We focus on being continuously proactive by working collaboratively with our partners in order to meet the needs of passengers and survive the crisis. While we focus on surviving and stabilising from the impact of the COVID-19 pandemic, our strategy will chart a path forward to continue the momentum to recovery and capture potential growth by strengthening capabilities for long-term business sustainability. We have crafted a 5-Year Strategy and Transformation Plan, known as the Future F.I.T., which aims to make Malaysia Airports Financially sustainable, Impact driven and Technology focused. Future F.I.T. sets out the Group’s strategic direction for the next five years (2021 – 2025), consisting of two phases: Phase 1 (Survival and Recovery Plan) and Phase 2 (Growth and Transformation Plan). Phase 1 (2021 - 2022): Malaysia Airports SURVIVAL AND RECOVERY PLAN Malaysia Airports is facing a challenging operating environment as the travel and tourism sector weakens following the outbreak of COVID-19. As a response, we have developed the COVID-19 Recovery Plan, also known as Phase 1 (Survival and Recovery) of Future F.I.T., to help us navigate through the COVID-19 impacts and economic slowdown. Malaysia Airports’ Survival and Recovery Plan addresses how we plan to transition from the pandemic to recovery and reform, while continuing to improve passengers’ comfort and confidence. Fivemain strategic themes namely Survivability, Fixing the Basics, Horizontal Expansion, Digitalisation andCritical Asset Replacement, form the basis of our strategic endeavours under Phase 1 (2021 - 2022): Malaysia Airports Survival and Recovery Plan. Phase 2 (2023 - 2025): MALAYSIA AIRPORTS GROWTH AND TRANSFORMATION PLAN While the immediate focus is to ensure the survival of the Group and its recovery from the COVID-19 pandemic, it is also important to position ourselves for future business growth and sustainability. Our Phase 2 (2023 - 2025): Malaysia Airports Growth and Transformation Plan is anchored by three strategic thrusts namely Maximising Revenue Generation, Developing New Capabilities and Ensuring Business Sustainability. Future F.I.T. is further supported by four key enablers namely Operational Excellence and Innovation, Governance and Process, Communication and Branding and Human Capital, which serve as the mechanisms to reflect our core values and to accomplish our strategy. In the following disclosures, we will discuss in detail all strategic themes and key enablers, each with its own key activities to create value for FY2020, short to medium term focus, performance indicators, link to material matters and associated risks. COVID-19 brought unprecedented negative impact to the aviation industry globally. Malaysia Airports and its partners have had to work closer together than ever as the industry moves to a tipping point. Despite the challenges, the Group remains resilient and committed to deliver long-term value for its key stakeholders through the execution of a new 5-year strategy – Malaysia Airports Future F.I.T.
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