DOMESTIC PROJECTS OVERSEAS PROJECTS Negeri Sembilan, Klang Valley, Johor Jakarta, Indonesia Standalone Developments Standalone Developments Township Developments Melbourne, Australia MANAGING RISING COSTS Costs escalations caused by external factors remain a perennial challenge for all property developers. The past financial year has seen how the rising costs of materials, labour, employees, land and more have tangible impacts on the business model, notably earnings and selling prices. Similarly, cost effects are also experienced across the other business divisions – affecting clubhouse and student enrollments and operations as well as the cost of medical care. Given that Matrix’s focus is on mid-ranged properties and affordable medical, lifestyle and education, managing rising costs and inflationary pressures are vital to the business model. While passing rising costs to customers is an alternative, frequent cost past through customers would impact their appetite for Matrix’s products and services and the overall brand appeal. Reducing administration and finance costs Inflation and a competitive job market will lead to increased costs, utilising technology and automation to reduce costs is a way forward to manage escalations. Increasing investment incomes Increasing recurring income sources reduces dependence on one-off incomes based on sales. The Group looks to grow income derived from rental and other passive streams going forward. Increasing adoption of digitalisation and technology While technology incurs upfront costs, it will yield medium-to-long term savings and efficiencies. The Group may consider growing its revenue contribution from the overseas projects wherever opportunities arise. Currently, Matrix has overseas projects in Jakarta, Indonesia and Melbourne, Australia. FORWARD FOCUS – OUR STRATEGIC PRIORITIES The Group has responded by focussing on the following: INTEGRATED ANNUAL REPORT 2023 MATRIX CONCEPTS HOLDINGS BERHAD 95
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