KUALA LUMPUR (Oct 14): Sime Darby Bhd group chief executive officer (CEO) Datuk Jeffri Salim Davidson said the continuing impact of the Covid-19 pandemic on the diversified group’s businesses cannot be accurately estimated at this juncture as there are still significant uncertainties over how long global Covid-19-driven movement restrictions will remain in place.

In Sime Darby’s latest annual report, which was filed with Bursa Malaysia today, Jeffri said it is still uncertain whether the Covid-19 outbreak will recur in a more significant manner, and whether a vaccine can be developed swiftly enough so that “things can return quickly to normal”.

"Nevertheless, we have been encouraged by the various support measures introduced by governments to stimulate economic activity, resulting in improved demand for our products and services.

"We continue to keep a close eye on the ongoing trade conflict between the United States and China. As a trading company, we have benefited from the growth and prosperity of the Asia-Pacific region as a result of free trade over the last many decades. Trade protectionism and the risk of more inward-looking trade policies remain a concern for us,” he said.

According to Sime Darby’s website, the group’s diversified businesses include car distribution, besides hospital and port operations.

In the annual report, Jeffri highlighted some emerging trends impacting the traditional car dealership model.

According to him, these include disintermediation of dealers, gradual displacement of internal combustion engines with electric vehicles, “Uberisation” and its resultant impact on future car ownership models and, though still in its infancy, autonomous driving. 

"The group continues to monitor these longer-term trends and has established our 'Engine 2' strategy to better understand and invest resources in possible new ventures.

"The reality is that these major factors make predictions a little difficult, but looking ahead, we remain optimistic that the economies of the Asia-Pacific region will continue to grow and provide growth opportunities for the group in the coming years,” Jeffri said.

As at 4.02pm today, Sime Darby's share price had fallen two sen or 0.83% to RM2.39, bringing the group’s market capitalisation to about RM16.32 billion. The stock saw 3.74 million shares traded.