2 LEADERSHIP INSIGHTS 39 Asset Consultancy Asset Consultancy’s revenue fell 42.0% to RM73.7 million in FY2025, primarily as a function of project timing rather than a weakening of our market position. The primary driver was the deferment of client development plans for energy efficiency projects, compounded by slower-than-expected progress on consultancy projects in East Malaysia due to delays in mobilisation and project scheduling. The segment recorded a net loss of RM52.3 million, compared with a net profit of RM12.6 million in FY2024. Profitability was affected by lower margins on ongoing contracts, reflecting persistent cost pressures, delays in project execution and pending client confirmations on certain contractual matters that affected margin recovery, together with one-off impairment charges on goodwill, other non-current assets, receivables and contract assets. Notwithstanding these outcomes, Opus Consultants grew its order book by 38% during the year through infrastructure and sustainability-related contract awards, a clear signal of continued market demand for our capabilities. Alongside our priority of securing work with defined scope and sustainable margin profiles, this provides a stronger basis for improved performance in FY2026. OUTLOOK Our operating environment is expected to remain challenging in FY2026, with cost pressures and cautious client spending likely to persist. Amid these conditions, structural demand for our core services remains resilient, supported by ongoing infrastructure, healthcare and facilities-related spending priorities in Malaysia, Singapore, Saudi Arabia and the UAE, as well as longer-term development programmes in the GCC nations. Moving forward, we will prioritise contracts supported by firm arrangements, clear execution plans and sustainable margin profiles, with well-defined scope and pricing discipline established prior to mobilisation. Projects will be assessed against defined margin thresholds, and participation in lower-margin opportunities will be considered selectively and only where there is a clear strategic justification. On costs, we are transitioning towards a more proactive and data-driven management model, one focused not solely on reducing expenditure but on allocating spend more selectively to support operational effectiveness and long-term value creation while eliminating inefficiencies. Operational processes will continue to be streamlined, supplier and subcontractor terms renegotiated to align with project economics, and technology-enabled solutions deployed to enhance cost visibility and strengthen project performance monitoring. Strengthened project-level cost tracking will allow us to identify and address potential margin erosion at an earlier stage of execution and improve margin resilience across our core service segments. Cash generation and working capital efficiency will remain central to our financial strategy. We will direct efforts towards strengthening receivables management through improved billing processes, timely milestone documentation, and more structured collection efforts, and towards better aligning supplier payment terms and billing cycles with cash inflows. Capital expenditure will be managed prudently, with a clear focus on returns, payback discipline, and alignment with our overall cash flow position. We enter FY2026 with a stronger platform from which to improve performance over time. Having weathered the storm of the past year, we look to the future with greater focus, less financial baggage and a differentiated proposition that positions us to thrive as the asset and facilities management landscape evolves. Our task now is to convert this robust promise into sustainable financial returns for our business and shareholders. AHMAD FAZRIL FAUZI Chief Financial Officer We approach the coming year with greater clarity, strengthened financial oversight and a clear focus on value creation.
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