2024 UEM Edgenta Annual Report

CHALLENGES / MITIGATION Challenges Mitigation Actions Results • System interoperability remains a challenge, as integrating diverse systems from different manufacturers increases complexity and compatibility issues. • Adoption of open protocols and standards to improve interoperability across systems from different manufacturers. • Seamless integration across devices and systems from different vendors, enhancing system efficiency. • The shortage of skilled facility management professionals poses difficulties in effectively managing sustainable buildings equipped with advanced building technology systems. • Manpower development programmes to provide training and certification for energy managers and green building facilitators. • Strategic technology partnerships with Edgenta NXT and RDM Asia to support workforce upskilling. • A skilled workforce capable of maintaining green and sustainable building operations, supported by trained professionals. • Meeting client expectations for service delivery continues to be a challenge. • Consistent follow-ups to ensure compliance with service level agreements (SLAs) and key performance indicators (KPIs). • All sites achieved at least the minimum SLA/KPI requirement with no penalties or service scope deductions. • Rising material costs and minimum wage increases place constant cost pressure on operations, necessitating cost optimisation strategies. • Strengthening cost control measures, including overtime management and optimised shift arrangements, to mitigate rising costs. • Improved profitability and cost control, helping to offset the impact of rising material costs and wage increases. Growing demand for smart and green building solutions. Malaysia’s Net Zero goals under the National Energy Transition Roadmap (NETR) drives demand for sustainable facility management. RM4 billion investment in green and smart government buildings by 2030. The facilities management industry is shifting towards sustainability. OPPORTUNITIES 93 MANAGEMENT DISCUSSION AND ANALYSIS

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