Maintain a prudent approach in managing manpower costs while identifying further optimisation opportunities. Continue investing in skill development and capability enhancement for Edgenta Stars, with a strong focus on engineering talent and AI knowledge. Continue focused on employee engagement and well-being to create a positive working environment. OUTLOOK EVOLVING WORKPLACE CHALLENGES Building and retaining a high-quality workforce is becoming increasingly complex, driven by evolving employee expectations, rising demand for talent in digital, sustainability, and other critical areas, and a more competitive job market. These challenges are further compounded by rising labour costs, including the increase in Malaysia’s minimum wage effective February 2025 and the introduction of mandatory EPF contributions for foreign workers. These developments call for a well-considered approach to workforce planning, employee engagement, and training — ensuring we meet both immediate and longterm business needs while maintaining cost efficiency. Risk: Opportunities: An uncompetitive employer value proposition may hinder our ability to attract and retain high-quality talent Inadequate or non-compliant employment practices could expose the company to legal risks and reputational damage If not properly managed, the increase in minimum wage could place significant pressure on our operating margins Strengthening our reputation as an employer of choice through targeted investments in employee benefits, well-being, training, and development Attracting and retaining top talent while building a sustainable pipeline of future leaders for the organisation Response: • Promoting holistic employee well-being through a range of wellness programmes • Future-proofing our workforce with personalised Individual Development Plans, supporting selfdirected learning via training modules, mentorship, job rotations, and knowledge-sharing sessions • Providing targeted training in critical areas such as digital skills and sustainability • Offering flexible working arrangements to help employees balance professional and personal responsibilities • Upholding diversity, equity, and inclusion as core values of a productive, engaged, and empowered workplace • Maintaining open channels for employee feedback and dialogue with management, fostering a culture of inclusion and continuous improvement • Adhere to new minimum wage order effective February 2025 and managed wage compression to address internal equity LINK TO Capitals Material Matters Risks Stakeholders M8 S1 S3 R5 65 MANAGEMENT DISCUSSION AND ANALYSIS
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