KUALA LUMPUR (July 27): Lingerie and baby apparel retailer Asia Brands Bhd will diversify its product range to dampen the impact of an expected decline in demand for its existing products as the company contends with the effects of Malaysia's Movement Control Order (MCO) to curb the Covid-19 pandemic.

Asia Brands chairman Datuk Seri Tan Thian Poh said in the company's latest annual report, which was filed with Bursa Malaysia today, that Asia Brands' cash flow was adversely affected due to the temporary closure of most of the group's core businesses following the MCO.

"The ongoing Covid-19 pandemic has had a dramatic impact on businesses globally with the retail industry being impacted the most. The MCO and its subsequent series of extensions have adversely affected the group's business and financial position.

"Productivity in all segments of our business has been reduced tremendously. The management team is monitoring the situation closely during this challenging time and business recovery plans are in place for all of our business units. The business is currently fully operational but we expect a slow path to recovery.

"Our teams will continue to support all of our customers' needs and will strictly adhere to the standard operating procedures implemented by the relevant authorities. We are confident in the resilience of our business and our ability to continue providing an extensive range of products to our customers. We remain cautious of the current economic environment but hope to fully recover within the next six months," Tan said.

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