MATTERS MATERIAL TO VALUE CREATION LABOUR ISSUES During the pandemic affected period ranging from March 2020 to June 2022, restrictions on foreign labour recruitment as well as the exodus of many skilled workers to their countries of origin had led to an acute drop in the labour supply pool. While the Malaysian government had reinstated foreign worker recruitment in the second half of 2022, the effects of the policy reversal would not be felt till well into 2023. Consequently, the lack of workers for recruitment had affected overall progress of works for many, if not most property developers. Due to labour scarcity, the cost of workers had also increased significantly, once again contributing to higher operating costs. Strategic Measures Taken Given the scarcity faced, in response, Matrix focussed on retaining as much as possible, its existing labour pool of workers. This included providing more competitive wages and other benefits. The Group also had looked to expedite its applications for new intakes of workers post the lifting of government restrictions in 2022. LANDBANK REPLENISHMENT The availability of land is a vital capital for property development. Hence continued replenishment of total landbank through acquisition of strategic parcels is often a prerequisite in sustaining the property development business model. Landbank Purchase Considerations Pricing and location (local or overseas) of land parcels Potential biodiversity considerations Impacted local communities Regulatory compliance Proposed development plans and expected dates of development Future capital appreciation potential In FY2023, Matrix has embarked on the journey to expand its landbank and the most strategic acquisition is the impending acquisition of MVV Lands. With the completion of this proposed acquisition, it would bring the total Group landbank to 2,203.7 acres. LOCAL VS OVERSEAS EXPANSION Matrix continues to expand its business presence both locally and abroad. Requirements for both geographical locations – domestic and international operations differ with the former driven by the flagship BSS and other strategic standalone developments, while Australia is driven by the focus on the city of Melbourne. Strategic Measures Taken The Group utilises proprietary ratios, local market intelligence, previous sales performance and other specific data to determine specific business strategies for Matrix’s domestic and local property markets. However, landbank replenishment must be undertaken with consideration for a wide range of factors as described below: INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 87
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