ADAPTATION TO ECONOMIC CHALLENGES Cost Optimisation During 2024, Edgenta also underwent an exercise to optimise its portfolio and operations to improve profitability. We faced several economic challenges impacting our global operations, value creation, and financial sustainability. Elevated costs, including manpower wages, operational expenses, and infrastructure investments, continue to place pressure on margins. At the same time, intense market competition has led to pricing constraints, requiring the company to innovate while striving to maintain profitability. The labour market dynamics, characterised by workforce shortages, high turnover, and absenteeism, further challenge service delivery efficiency. To address these challenges, the company reduced its cost base via business process excellence, procurement process improvements and reduction in selling, general and administrative expenses. Revenue protection measures have been introduced to shield earnings from liquidated damages, clawbacks, and billing discrepancies, ultimately optimising financial performance. In parallel, the company has implemented cost optimisation initiatives, focusing on strict cost reduction, control, and avoidance strategies to minimise unnecessary expenditures. Furthermore, proactive contract management plays a crucial role in safeguarding contract sums, ensuring that regulatory changes and macroeconomic shifts, such as inflationary cost pressures, are carefully negotiated. These resulted in margin preservation and enhancement, supplemented by cost savings optimisation programme which drove a leaner organisation, and improved efficiency to create an agile workforce. UEM Edgenta’s economic activities in 2024 generated strong value, driving revenue growth and strengthening its international presence, with 79% of new contract wins secured from overseas markets. This progress aligns with the company’s EoTF2025 strategic pillar of reorientation, which focuses on expanding beyond domestic markets. The company’s successful entry into adjacent sectors, such as manufacturing, hospitality, and education, further diversified its revenue streams, contributing to sustained growth and enhancing its market position. These positive outcomes were underpinned by UEM Edgenta’s broader financial contributions, including taxes and Corporate Social Responsibility (CSR) efforts, which supported public services, infrastructure development, and community programmes across its operating regions. 137 ENHANCING VALUE THROUGH SUSTAINABILITY
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