21 ANNUAL REPORT 2023 MST GOLF GROUP BERHAD MANAGEMENT DISCUSSION & ANALYSIS OVERVIEW MST Golf is a leading golf retail and service provider in Malaysia and Singapore with golf-related businesses in retail, wholesale, corporate merchandise, golf academy, club fitting, golf events and tournament management, driving range management and indoor golf. With 35 years of experience in the golf retail industry, MST Golf is the distributor and preferred retailer for many global golf brands and products. Our retail concept is regarded by the brands as one of the best in the world, offering a comprehensive range of products from golf equipment, accessories, apparel to footwear. Over the years, we have evolved our retail concept and are humbled to be able to deliver world-class golf retail experience to the growing golf communities across the region. We have a growing membership base of 140,000 golfers in our ilovegolf loyalty programme, a key asset of the company which serves as our direct and targeted marketing channel contributing approximately 70% of our retail sales. The golf industry witnessed a surge in interest towards the sport particularly among the younger demographic during pandemic. South East Asia is regarded by the brands as a key growth region post-Covid with vast and younger population and growing wealth. With MST Golf at the forefront and well poised to drive growth and accessibility to more consumers, we leveraged opportunities presented in line with our own plans to expand our business regionally. In 2023, we expanded into Indonesia by joint venture with PT Sinar Eka Selaras Tbk (Erajaya Active Lifestyle) and opened our first retail outlet in Jakarta with plans to open five more outlets in 2024. In addition, the use of advanced technologies in driving ranges and indoor golf centres is revolutionising the way golf is experienced and played. These technological advancements, such as sophisticated launch monitor and software for tracking golf ball flight and simulating real world golf courses are enhancing players’ experiences and performance. We can see that this trend is also evident in the rising number of indoor golf centres in the region including Malaysia. The increased popularity of golf, spurred by these technological innovations, is expected to drive demand for golf equipment and related services, presenting substantial opportunities for MST Golf in the region.
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