procurement operations were co-created with business units to deliver tangible savings; meanwhile, we enhanced our Vendor Development Programme (VDP) in FY2024 with ESG-focused training, addressing core areas such as financial, risk, and human resource management to equip suppliers to meet evolving customer expectations in a sustainability-focused market. Advanced category management further enhanced our procurement practices through strategic sourcing and supplier relationship management, improving spend consolidation. During the year, we also advanced our financial optimisation agenda through the implementation of Phase 2 of the Treasury Management Centre (TMC). This marked a key step in centralising liquidity management and reducing reliance on external borrowings. Building on the foundational work of the previous phase, we launched our in-house banking arrangement in July 2024, extending internal loan facilities to our domestic subsidiaries to support their working capital needs. This internal funding mechanism allows us to optimise the use of available cash, reduce external financing costs and improve the efficiency of capital deployment throughout the business. The TMC platform also enhances the management of fixed deposits and short-term placements, maximising income on the interest from available funds. Collectively, our targeted and vigorous efforts to drive financial and operational efficiencies underline our commitment to scalable, sustainable growth that creates long-term value for our company, our customers and our stakeholders. cost savings target over 5 years (2024 to 2029) Realised STRATEGIC COST OPTIMISATION INITIATIVES In FY2024, our cost optimisation journey reached a significant milestone as we achieved the RM100 million cost savings target under the Edgenta of the Future 2025 (EoTF2025) strategy a year ahead of plan. Acknowledging even greater room for efficiencies, we set a new target of RM150 million in savings by FY2029 – and by end-FY2024, we had achieved RM41.1 million in cost reductions towards this target. These efforts were essential in preserving profitability in a high-cost environment while sustaining value creation across our business. At the core of our cost management strategy is a Group-wide programme focused on aligning expenditure with value delivery throughout the organisation. In FY2024, this programme established tighter budgetary controls, enhanced oversight by the Budget Spending Committee and more stringent budget transfer protocols across cost centres. At the divisional level, our business units were empowered to analyse cost trends, negotiate vendor terms and manage direct costs — particularly in contractors, materials and outsourced services — to protect their profit margins. In parallel, we undertook organisational restructuring and rightsizing to ensure our operating model aligns with our current and future business plans. While difficult, these decisions were essential to ensuring our competitive edge as we scale into new markets with leaner, tech-enabled delivery models. Additionally, we complemented our internal cost saving measures by strengthening our procurement strategy. Efficient RM150 MILLION RM41.1 MILLION savings in FY2024 CFO’s Statement UEM EDGENTA BERHAD 40 Integrated Annual Report 2024
RkJQdWJsaXNoZXIy NDgzMzc=