strategies employed – risks and opportunities identification MATERIAL TOPIC RISKS AND OPPORTUNITIES NATURE OF/ LIKELIHOOD RISK/ IMPACT SEVERITY AND TIMEFRAMES ISSB AND SASB DISCLOSURES Product Quality Risks The finished build quality of properঞes as well as the quality of services provided by the Group’s hospitality, healthcare and educaঞon businesses are inherent to customer saঞsfacঞon. A conঞnued focus on product quality supports lower number of defects and liabiliঞes issues. Going forward, climate change and other factors can affect overall build quality and cause an increase in defects. The Group conঞnues to take measures towards ensuring excellent build quality and the conঞnued high quality of all products and services. FIN OP VL REP SHO MID RS4 Number of homes delivered: 2,772 In FY2025, defect resoluঞon rate was 103.0% FY2024: 101.5%, FY2023: 93.6% Total costs spent on defect recঞficaঞon in FY2025: RM12,057,072 Total manhours consumed for defect recঞficaঞon in FY2025: 1,207,323 hours Customer saঞsfacঞon scores: FY2025: 88% FY2024: 82% FY2023: 84% Average QLASSIC score: 74.0% Opportunities The focus on product quality is customer and cost-centric. The focus is on strategising quality control towards enhancing customer saঞsfacঞon. Hence, beyond eliminaঞon and reducঞon of defects, the focus is also on speed of recঞficaঞon, overall management of issues as well as focusing on intangibles such as aspects of customer communicaঞon and experience. In essence, the conঞnued focus on product quality provides opportuniঞes to review the enঞre value chain process towards uncovering areas for further improvement. This includes consideraঞons for materials used, choice of suppliers, building designs and construcঞon methods deployed as well as management of interacঞons with customers upon handover of vacant possession. Likewise, the conঞnued focus on engaging customers to secure their feedback and inputs by the Group’s hospitality, healthcare and educaঞon businesses also uncovers opportuniঞes to not just improve service but also derive greater operaঞonal and cost efficiencies. For example, increasing uঞlisaঞon of technology i.e. arঞficial intelligence to automate and speed up responses to customers. FIN OP VL SHO IL2 MID LT 87 MATRIX CONCEPTS HOLDINGS BERHAD INTEGRATED ANNUAL REPORT 2025 05 VALUE CREATION STRATEGIC REVIEW
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