54 SECTION 04 : CORPORATE GOVERNANCE The on-going instability in the middle east, driven by geopolitical tension, security incident in key shipping lanes and uncertainty around global oil supply has had mixed impact on the global chartering landscape. The latest development in that region however has limited impact to our new operation, as Hexagon Alpha is preparing herself for a fixed FSO contract. Nonetheless, the broader geopolitical environment underscores the important of maintaining fleet flexibility, diversifying risk, and adopting a balanced asset deployment strategy. The Group continues to monitor global development closely and will adapt its marine logistic business strategy to ensure resilience and long term sustainability. b. MRO Services The MRO Division is another key pillar of the Group’s operational capabilities, providing specialised services in the servicing and refurbishment of marine and industrial propulsion system, power generation units, and related mechanical equipment. Building on its continued marketing efforts and strategic collaboration with regional shipyards, the Division has gained traction in the commercial maritime sector. Recently, it successfully completed servicing works on engines and generators for several commercial vessels, reinforcing its position as a reliable and technically competent service provider. A major milestone for the Division was the award of MRO works for a high-specification vessel, demonstrating the Division’s capability to meet stringent quality and compliance standards. The Division’s growth prospects have been further enhanced by its recent partnership with one of the world’s largest shipbuilding groups. This collaboration has broadened the scope of opportunity not only for the Division but also for the Group as a whole, opening doors to high value projects, as well as potential technology and knowledge transfers. In the context of ongoing global geopolitical tensions, particularly those affecting critical supply chains and the sourcing of parts and components, the MRO business has demonstrated resilience. As the global maritime sectors increasingly prioritise asset lifecycle extension, regional selfsufficiency, and operational readiness, demand for localised MRO services remains strong. The Group views the MRO Division as a sustainable and strategic contributor to long term growth. By continuously strengthening technical expertise, deepening partnerships, and reinforcing supply chain adaptability, the Division is well positioned to capitalised on growing demand while recognising risks and competition. c. Property Development The Property Development Division remains committed to delivering high-quality and affordability housing solutions while selectively pursuing higher -end projects to diversify the Group’s property portfolio. A key highlight for the year is the Group’s affordable housing project in Dengkil, Taman Vista Impian which progressing well. The project has achieved a 94% sales rate and 90% construction progress, with vacant possession targeted for October 2025. The successful uptake reflects market confidence in the Group’s ability to offer quality homes at accessible prices. Building on this momentum, the Division has commenced two additional developments: - An affordable housing project in Teluk Panglima Garang, targeting first-time buyers and families. - A high end residential development in Jenjarom , catering to the premium segment. Both projects are progressing according to plan and are expected to contribute positively to the Group’s Profit and loss for the financial year ending 31 March 2027. Outside Malaysia, the Division continues to monitor its assets in Rugby, United Kingdom. The UK housing market faces growing affordability pressure amid elevated interest rates, slowing wage growth, and persistent inflation, all of which are impacting buyer sentiment and transaction volume. In light of these challenges, the Group is reassessing the viability of its property assets in Rugby, to determine the most prudent course of action moving forward. Despite uncertain economic climate both globally and locally, the Division remains focused on disciplined execution, cost management, and market aligned product offering to ensure sustainable growth and long term value creation. Sustainability Report (Cont’d)
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