PETALING JAYA: Poh Kong Holdings Bhd said adverse economic conditions and low interest rates have worked to its advantage as investments have shifted from other stocks into companies such as Poh Kong.
“This trend is expected to continue well into 2021 as gold is regarded as a safe haven at a time of great uncertainty. Poh Kong will continue to build on its strengths to craft a sustainable future for the group,” Poh Kong executive chairman and group managing director Datuk Choon Yee Seiong said in a statement in conjunction with its AGM on Tuesday.
He said despite the unforeseen changes due to the Covid-19 pandemic, the retail side of Poh Kong’s business remains viable and its prospects good.
“Primarily, two factors helped mitigate the adverse impacts. Firstly, gold prices gathered momentum during the year (2020), and reached an all-time high since 2011. Secondly, Bank Negara Malaysia’s decision to cut the Overnight Policy Rate resulted in interest rates falling, driving people and institutions to invest in other products; gold was often the preferred choice. As a result, the group managed to ride the crest of the Covid-19 wave.”
In a challenging market environment, the group said it will remain focused on building Poh Kong into a bigger and more powerful brand.
The group said its initiatives and strategies for growth and greater customer loyalty gained momentum. It extended customer engagement and experience, offering greater accessibility through more efficient social media marketing. At the same time Poh Kong streamlined its retail operations, closing down non-performing outlets without retrenching staff.
