Solutions • Drive Regulatory Evolution The Market Landscape 50 Our Value Creation Model 52 FROM OUR LEADERSHIP Sec 2 27 TENAGA NASIONAL BERHAD Integrated Annual Report 2023 28 CHAIRMAN’S LETTER TO SHAREHOLDERS Dear Shareholders, It gives me great pleasure to present to you Tenaga Nasional Berhad’s (TNB) Integrated Annual Report for the year 2023. OVERVIEW The year 2023 marked a significant turning point for the world with the declaration by the World Health Organization that COVID-19 was no longer considered a global health emergency. While the announcement in May provided some optimism that it would be the end of pandemic-related challenges, it was tempered with an equal measure of uncertainty and pessimism given persistent inflation and subsequent policy tightening. The macroeconomic environment was also impacted by the ongoing conflictsin Ukraine and the Middle East. The escalation of geopolitical tensions, particularly in the Middle East, had put markets on high alert, contributing to the volatility of gas prices and adding layers of complexity to the global energy landscape still adjusting to the aftermath of the Russia-Ukraine war. These headwinds have weighed on sentiment and growth prospects, with subdued economic figures being recorded in 2023 compared to the robust numbers produced during the immediate post-COVID years. Consequently, the International Monetary Fund has projected global Gross Domestic Product (GDP) growth to moderate to 3.0% in 2023, slowing from the 3.5% posted in 2022. Chairman DATO’ ABDUL RAZAK BIN ABDUL MAJID FROM OUR LEADERSHIP Sec 2 29 Domestically, Malaysia’s economy mirrored the global narrative of moderated growth, as it recorded a GDP growth of 3.7% in 2023 following the strong 8.7% rebound in 2022. Despite the resilient domestic demand, Malaysia’s growth was tempered by weak external demand, in line with the slower global economy. On our part, TNB has continued to support Malaysia’s economic growth. Our efforts are aligned with the Madani Economy Framework that was introduced