UEM EDGENTA BERHAD Integrated Annual Report 2025 88 Current operating structures risk misalignment with new and evolving healthcare operating models during renewal considerations • Strengthen operational data, cost benchmarking and performance reporting. • Develop a future-ready health support services operating model focusing on lean, digital and scalable solutions. • Align our future initiatives with concession renewal value propositions. • Enhance stakeholder engagement and readiness planning. • Built stronger commercial and operational future proof businesses through renewals and new contracts wins. Ageing hospital assets driving higher breakdowns and lifecycle costs, strained by limited capital for replacement and increasing utilisation intensity • Implement asset criticality-based maintenance and prioritisation strategy. • Strengthen preventive and predictive maintenance through computerised maintenance management system (“CMMS”) optimisation. • Develop asset lifecycle and replacement roadmap in collaboration with hospitals and health authorities. • Improve asset performance monitoring and failure trend analysis. • Sustained asset reliability through performance-based maintenance outcomes, with FEMS delivering over 98% asset uptime and over 98% preventative maintenance completion rate. • Meanwhile BEMS is continuously achieving 99% assets uptime with its completion of scheduled preventive maintenance work. Challenges Mitigation Actions Results OPPORTUNITIES • Strengthen healthcare support services and IFM delivery through digital enablement, automation, and data-driven decision-making to enhance operational efficiency, improve data accuracy, and address ongoing cost and workforce pressures. • Expand engagement across private healthcare and commercial building markets to diversify revenue streams through asset lifecycle management and enhanced IFM service offerings. • Capture non-clinical revenue opportunities by broadening value-added services, enhancing commercial resilience, and reducing reliance on government-funded contracts. • Transform the procurement-to-pay processes by strengthening governance, standardising sourcing strategies, and leveraging data analytics and supplier rationalisation to deliver significant and sustainable cost optimisation across operations. • Leverage ESG capabilities and specialist skills to deliver sustainable and energy-efficient outcomes, while aligning with sustainability and decarbonisation targets in our target markets. BUSINESS REVIEW HEALTHCARE SOLUTIONS
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