climate risks assessment FLASH FLOODING In light of Matrix’s miঞgaঞon efforts, climate projecঞons, and the anঞcipated impacts of extreme rainfall, the following risk assessment has been established (with regard to risks aributed to rainfall and flash flooding): Timeframes Likelihood Rating (1-5) Severity Rating (1-5) Overall Risk Rating Short Term (2024-2026) 1 2 Low With only a single precedent of flooding in recent years, and with the incident well managed with minimal financial impact, flash flooding is expected to not have high severity levels, though the likelihood or possibility of future events remains possible. In essence, flash flood remains the most likely event of occurrence. Potenঞal impacts include site shutdowns, damage to plant, property and equipment and potenঞally higher insurance premiums. All of which, may lead to delays in compleঞon of projects. However, the current BCP established by Matrix has enabled a swi[ and measured response to manage flood related impacts. . In the short-term, while the likelihood of flooding is present, the impacts are expected to be marginal as the Group is well experienced and prepared to respond and manage impacts. Medium Term (2027-2035) 2 2 Low With expected increase in precipitaঞon rates, the likelihood of flooding may increase, but given the BCP established, risk impacts are expected to be well miঞgated. Long Term (2036-2050) 3 3 Moderate Similar to the medium term prospects, likelihood of flooding may increase over the long-term horizon with the disঞncঞon of potenঞally higher impacts on operaঞons, notably operaঞonal sites for the property development division. This may necessitate enhanced measures such as strengthened flood prevenঞon infrastructure, advanced monitoring systems, or revised SOPs to address increasingly unpredictable weather paerns. These adaptaঞons could involve higher upfront investment costs as/if climate condiঞons become more extreme, a possibility in the long-term horizon. RISING TEMPERATURES Presently, the most realisঞc scenario is a loss of three days a year, while the other scenarios are developed for comparison purposes and are considered more extreme possibiliঞes with a low probability of occurrence. Timeframes Likelihood Rating (1-5) Severity Rating (1-5) Overall Risk Rating Short Term (2024-2026) 1 2 Low The minimal historical incident on HRIs infers that the risk remains low and manageable as projected temperatures over the short term remains within expected ranges. Current miঞgaঞon measures provide a robust buffer against potenঞal impacts. Medium Term (2027-2035) 2 2 Moderate The moderate risk raঞng reflects the anঞcipated intensification of surface temperatures, which may cause an increased HRI incidents. This may necessitate addiঞonal safeguards for workers and a shi[ to staggered or evening/night shi[s to maintain the pace of construcঞon works. Long Term (2036-2050) 2 3 Moderate While the likelihood of rising temperatures becomes more apparent, the lessons learnt over the medium term, should enable Matrix to respond effecঞvely and miঞgate impacts. Best pracঞces from other regions such as the Middle East can be applied to miঞgate the impact of heat while conঞnuing to maintain business operaঞons. HRIs- Heat Related Incidents BCP- Business Continuity Plan 103 MATRIX CONCEPTS HOLDINGS BERHAD INTEGRATED ANNUAL REPORT 2025 05 VALUE CREATION STRATEGIC REVIEW
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