REGULATORY COMPLIANCE RISKS A high-level of compliance to environmental and social regulations is essential towards ensuring disruption free site operations, fines and censures and other impacts that would hinder or erode the effectiveness of the business model in sustaining value creation. This could be delays in project approvals, delays in securing labour or commencement of works. Regulatory compliance also reduces prevents exposure to customer complaints of non-adherence, legal action and other negative impacts. OPPORTUNITIES Matrix’s strong track record of regulatory compliance provides the Group with the confidence to undertake projects and to accurately plan the pace of works, duration as well as completion of projects. BUSINESS AND OPERATIONAL STRATEGIES Matrix adheres strictly to ensure regulatory compliance through its Environmental Management System. The value of good environmental performance is included in the Group’s business strategies. Matrix increasingly looks to incorporate more sustainable practices into its business model and its business processes, including in the design and build of homes. Environmental initiatives are given increasing focus as a means for longterm cost savings and efficiency and to develop new business opportunities. Environmental performance is important in attracting investors, seeking financing and developing a more sustainable business model. ENERGY CONSUMPTION RISKS Energy costs continues to maintain an upward trend in recent years, driven by higher electricity prices as well as higher global prices for crude oil and gas. Focussing on achieving improved energy efficiency is essential towards reducing exposure to rising energy costs that could lead to higher OPEX. In addition, continued dependence on fossil fuels for operations, may expose the Group to any future imposition of carbon taxes. The ongoing transition towards decarbonisation can also pose challenges in terms of pivoting towards renewable energy (“RE”) use would meet targeted cost-benefit ratios. OPPORTUNITIES Focussing on energy consumption provides opportunities for decarbonisation as well as cost savings, notably in the medium to long-term. For example, transitioning to solar reduces dependence on grid sourced electricity and thus averts exposure from rising commercial tariffs post the revision of the ICPT. Other opportunities include reducing combustive fuel, especially stationary sources on operational sites. This would lead to reduced emissions. BUSINESS AND OPERATIONAL STRATEGIES Matrix is taking measures to reduce or improve the efficiency of energy consumption, as well as transition to renewable energy. So far, Hospitality, Healthcare and Education Division have installed the solar panels on their business premise. Moving forward, solar energy consumption is expected to increase over time. MATTERS MATERIAL TO VALUE CREATION VALUE CREATION STRATEGIC REVIEW MATRIX CONCEPTS HOLDINGS BERHAD 88
RkJQdWJsaXNoZXIy NDgzMzc=