strategies employed – risks and opportunities identification MATERIAL TOPIC RISKS AND OPPORTUNITIES TYPE/ NATURE OF/ LIKELIHOOD RISK/ IMPACT SEVERITY AND TIMEFRAMES ISSB AND SASB DISCLOSURES Regulatory Compliance Risks A high-level of compliance to environmental and social regulaঞons is essenঞal towards ensuring disrupঞon free site operaঞons, fines and censures and other impacts that would hinder or erode the effecঞveness of the business model in sustaining value creaঞon. This could be delays in project approvals, delays in securing labour or commencement of works. Regulatory compliance also reduces exposure to customer complaints of non-adherence, legal acঞon and other negaঞve impacts. C/G FIN OP PS REP RS3 SHO MID LT Total properঞes vacant possession for FY2025 2,772 units Total amount paid in Liquidated Ascertained Damages for FY2025: RM96,747 (FY2024 : RM14,862 FY2023: RM Nil) 100% on ঞme compleঞon rate for all property projects between FY2021-FY2025 Opportunities Matrix’s strong track record of regulatory compliance contributes to improved percepঞons and relaঞonships with stakeholders notably, regulatory bodies. C/G FIN OP SHO IL3 MID LT Regulatory compliance is akin to a company’s license to operate and hence the focus remains on ensuring zero non-compliance. While the threshold for compliance has increased in tandem with new requirements introduce by the government, the conঞnued focus on good governance achieved through regular and comprehensive oversight mechanisms at both Board and Management levels, the implementaঞon of Group-wide policies and procedures and use of internal control systems and constant engagement with relevant stakeholders significantly reduces the risk of non-compliance. The cost of compliance is considered to be on the rise, but presently, there has been no definite aempts to breakdown the specific costs of compliance as it’s not possible to just idenঞfy compliance cost per se. Compliance costs is frequently embedded in overall business process and operaঞonal cost. This includes training costs, costs related with regulatory stakeholder engagement, costs related to internal audits, external inspecঞons and more. Matrix has conঞnued to maintain a track record of zero incidents of regulatory non-compliance in FY2025, including incidents of non-compliance with social and environmental requirements. Matrix is commied to full regulatory compliance, adhering to all applicable laws and regulaঞons. 90 MATRIX CONCEPTS HOLDINGS BERHAD INTEGRATED ANNUAL REPORT 2025 05 VALUE CREATION STRATEGIC REVIEW
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