UEM EDGENTA BERHAD Integrated Annual Report 2025 102 BUSINESS PERFORMANCE REVIEW Margin Compression Margin pressure remained a key challenge amid competitive market conditions and rising operating costs. The business continued to balance pricing competitiveness with service quality and delivery performance. • Implemented more disciplined pricing approaches and enhanced value differentiation strategies. • Secured over RM180 million in order book wins for 2025. Client Financial Constraints Capital constraints among certain clients continued to affect the pace of adoption for green technologies and large-scale sustainability initiatives. • Continued to promote the Zero Capex Programme as a funding solution to ease upfront capital barriers. • Achieved RM122 million in fund utilisation for sustainability-related adoption. Challenges Mitigation Actions Results CHALLENGES AND MITIGATION Description Key Initiatives Enhancing Engineering, Project and Asset Management Consultancy Capabilities During the year, the business continued to strengthen execution capabilities and improve margin resilience through the adoption of advanced technologies across the asset lifecycle. The DEU was established to centralise BIM capabilities, standardised support and improve delivery consistency across regional projects. A strategic partnership with Deighton was also formalised to enhance data-driven asset management through DTIMS analytics. In parallel, the business expanded its specialised offerings in modular Project Management Consultancy (“PMC”), geotechnical and bridge structural assessment services. • Improve cost management and pricing strategies to enhance market competitiveness. • Diversify into high-growth segments, such as EV and BESS engineering and infrastructure. • Deliver tailored solutions through specialised services, including Modular PMC, Building Condition Assessment (BCA), geotechnical services, and BIM. • Strengthen data-driven asset management capabilities through the Deighton collaboration. Accelerating Growth in Energy Efficiency and Sustainability The business continued to expand its energy efficiency and sustainability offerings in line with evolving market demand, Environmental, Social, and Governance (ESG) priorities and regulatory developments. Through the Zero Capex Programme, Energy Performance Contracting (“EPC”) and Green Performance Contracting (“GPC”) solutions were offered to help address upfront capital constraints faced by clients. This area was further supported by strategic partnerships in EV charging infrastructure and BESS, as well as continued industry engagement and the launch of the OPUS Super Energy Service Company (Super ESCO). • Intensify business development for end-to-end sustainability solutions and Zero Capex Programme. Market Access The expansion into new technical segments and geographic markets, including East Malaysia, continued to present barriers to entry. These included local registration requirements, such as the mandatory Unit Pendaftaran Kontraktor dan Juruperunding (UPKJ) licence in Sarawak, as well as the need to establish credibility in emerging segments such as EV charging and BESS infrastructure. • Fostered strategic partnerships with technology providers to support entry into EV and BESS infrastructure segments. • Strengthened market presence and expanded the project pipeline in emerging markets. BUSINESS REVIEW ASSET CONSULTANCY
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