our operating environment EXTERNAL FACTORS (TRENDS & MARKET DEVELOPMENTS) IMPACT TO MATRIX Domestic Economic Growth and Robust Industry Performance In 2024, Malaysia’s economy grew robustly with annual gross domesঞc product (“GDP”) growth recorded at 5.1%, driven by robust domesঞc demand and a rebound in exports. The Malaysian construcঞon sector recorded robust double-digit expansion of 20.2% in 2024 (2023: 8.4%) with all sub sectors recording doubledigit growth: Special trade acঞviঞes 35.9%, Residenঞal buildings 24.5%, Non-residenঞal buildings: 15.5% and civil engineering: 17.3%. In 2024, Malaysia’s property sector posted a robust performance with value and volume of property transacঞons expanding by 5.4% and 18.0%, respecঞvely, reaching 420,545 transacঞons worth RM232.30 billion, compared to 2023 (399,008 transacঞons worth RM196.8 billion). Robust domesঞc economic growth typically translates into improved domesঞc consumpঞon and increased wages and purchasing power. This leads to an increased propensity for buyers to transact in property, thus auguring well for property developers, with market auned products such as Matrix. Improving socio-economic condiঞons also inspires improved confidence in buyers to look for bigger or higher-end properঞes or properঞes with niched aributes as opposed to typical cauঞousness and opঞng to buy more affordably priced properঞes. Beyond residenঞal properঞes, improved economic condiঞons also supports the demand for other property types notably commercial and industrial properঞes. Government Incentives and Financiers’ Support for Property Buyers Conঞnued provision of various governmental incenঞves and reliefs such as stamp duty waivers for first-ঞme homeowners, new mortgage interest tax relief, extension of the housing credit guarantee scheme and other measures provided strong support in driving momentum in transacঞons. Banks and other lenders conঞnued to adopt a buyer friendly policy in the provision of loans, especially for first ঞme homeowners and those purchasing properঞes priced RM500,000 and below. The conঞnued provision of incenঞves and financial support sঞmulates demand for residenঞal properঞes and enables lower to middle-income demographic segments to have increased ability to buy properঞes. This leads to an expanded pool of buyers for property developers to market to and thus improves prospects for increased sales. Increased Regulatory (Environmental and Social) Compliance 2024 saw several changes introduced by the government to the OSH Act (Occupaঞonal Safety and Health (Amendment) Act 2022 (Act A1648). These amendments are aimed at enabling safer work condiঞons for higher risk workers such as those performing manual labour tasks on operaঞonal sites. The amendments are posiঞve as it will lead to improved operaঞonal site safety, which will promote a conঞnued excellent OSH track record in terms of zero fataliঞes and reduced loss ঞme incidents (“LTI”). However, costs of compliance has increased and there is also a higher requirement to be fulfilled to ensure regulatory compliance with Department of Occupaঞonal Safety and Health (“DOSH”) Malaysia and other regulatory bodies. Applying the abovemenঞoned integrated thinking driven process, Matrix in FY2025 has idenঞfied the following external trends and developments as being the most perঞnent to its business model and operaঞons, including its value chains: Related Capitals: Financial Manufactured Intellectual Human Social Natural 70 MATRIX CONCEPTS HOLDINGS BERHAD INTEGRATED ANNUAL REPORT 2025 05 VALUE CREATION STRATEGIC REVIEW
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