Megachem Limited Annual Report 2015 9 Our Prospects 2016 A Challenging External Environment The final months of 2015 ushered in further signs of growth deceleration in China, weakness in Europe’s economies, meltdown in crude oil prices plus heightened conflict and tension in the Middle East. The hangover from last year seems likely to extend for some time into 2016. Therefore we expect a more challenging economic environment going into 2016, marked mainly by continued concerns over the impact of slowing China’s economy and the economic health of Europe. Risks are also lurking in the currency markets with higher volatility as well as in the overall financial market which could ultimately hurt the overall economy. The prospects in chemical industry will inevitably move in tandem with the overall economy. Our efforts to maintain revenue growth momentum will be faced with mounting external challenges. 、 Refining Our Strategy In response to the challenges, Megachem will refine our strategy with a focus on building resilience while keeping an eye on the longer term opportunities that the industry presents. This will involve: –– pursuing diversification in our business portfolio; –– adjusting our portfolio with more emphasis on coverage of more resilient industries; –– leveraging on our extensive network in Asia to capitalise on the long term growth of one of the largest markets for chemicals; –– enhancing relationships with key global customers and suppliers; and –– improving operational excellence. Longer Term Growth Prospect Despite many headwinds ahead, the long term outlook of the chemical industry remains positive especially in Asia where growth will continue to outpace other regions. Although we may take a more cautious business approach in the short term, our longer term prospect remains intact given our strong business fundamentals and our strength in Asia. BUILDING RESILIENCE
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