2025 UEM Edgenta Annual Report

4 MANAGEMENT DISCUSSION AND ANALYSIS 95 INFRASTRUCTURE SERVICES With more than 35 years of experience, our Infrastructure Services division has established itself as Malaysia’s leading infrastructure maintenance specialist. While our core expertise lies in expressways, we have built a strong track record in state and rural roads, rail networks and airports. Across each of these environments, we combine technical expertise with a practical understanding of the priorities and constraints of asset owners, enabling us to deliver tailored solutions that optimise infrastructure performance over the long term. Our core service offerings include: • Network Maintenance: Supporting road safety and asset longevity through input-based, output-based and performance-based maintenance models. • Pavement Products & Services: Delivering sustainable, high-performance pavement solutions through a Comprehensive Pavement Maintenance (“CPM”) methodology to optimise pavement lifecycle performance. • Traffic & Safety Management: Enhancing road safety through proactive traffic planning and incident management strategies. • Environmental & Material Testing: Supporting compliance with environmental standards and project specifications. • Pavement Research Centre (“PRC”): Advancing innovation in asphalt mix design and pavement engineering. • Road Asset Management Systems (“RAMS”): Leveraging data analytics to enable smarter infrastructure asset planning and performance monitoring. WHO WE ARE AND WHAT WE DO Malaysia’s construction and infrastructure sector remains a key driver of economic growth, underpinned by sustained public investment and major national developments. In Budget 2025, RM9.5 billion has been allocated for the maintenance of federal, state and non-main roads, alongside initiatives to enhance road safety and monitoring through advanced systems and infrastructure upgrades. The increase in minimum wages over the past year has become a key challenge for the infrastructure sector, exerting pressure on margins while material prices remain volatile amid ongoing geopolitical uncertainty. This heightens the need for asset owners to adopt mechanisation, automation, and digitalisation to reduce running costs and drive bottom-line value. Many market players have also adopted IoT-enabled monitoring and smart infrastructure technologies to improve real-time visibility and decision-making, supporting more efficient operations. Sustainability is another driver of value, with the use of eco-friendly and lower-impact materials gaining traction among infrastructure owners. Our Pavement Research Centre (“PRC”) supports this positive trend by undertaking research on sustainable road materials, such as lower-carbon pavement solutions and recycled asphalt pavement (RAP). BUSINESS ENVIRONMENT

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