SECTION 2: OUR STRATEGIC CONTEXT 22 OUR STRATEGY MST Golf’s strategy for regional expansion capitalises on the lack of golf specialist retailers in the South East Asian golf market and the urge by the brands to provide a retail solution to cater to the growing golf demand and interest. The primary driver of our listing on the Main Market of Bursa Malaysia Securities is to accelerate this regional expansion into key markets mainly targeting at Indonesia, Thailand and Vietnam with our retail presence. Our Strategy for Expansion Regional Expansion and Market Penetration Strengthening Presence in Existing Market Technology Integration and Customer Engagement Strategic Joint Ventures: Our expansion strategy involves partnering with local entities possessing established networks in the local retail industry to leverage on their expertise of importation and logistic, store location development, human resources, local laws and compliances. Our joint venture with Erajaya Active Lifestyle in Indonesia exemplifies this approach, leveraging their retail and distribution expertise to establish MST Golf’s presence in Indonesia by the end of FYE2023. Similarly, partnerships in Thailand and Vietnam are on track, aiming for store openings in key cities by 2024 and 2025 respectively. Securing More Brand Distributorships: We aim to be the brands’ regional solution and plan to secure more brand distributorships in the region especially Indonesia, Thailand and Vietnam. This is to improve the trade margins and better execution of brand strategy through our retail outlets. 1 2 Increase Retail Presence: In Malaysia and Singapore, we aim to enhance our market reach by establishing new retail outlets coupled with improving store efficiency to provide enhanced accessibility and world-class golf retail experience to the golf community. Addressing New Customer Groups: One of the key focusses in Malaysia and Singapore is to promote the play of more golf especially targeted to attract new golfers including juniors and ladies. We are also looking for new brands, especially in apparel, which will appeal and cater for the new and younger golfers. 1 2 Incorporating Advanced Technology: Leveraging technology in our retail outlets and indoor golf centres is a key component of our strategy. This includes state-of-the-art equipment to enhance the golfing experience from coaching, club testing, club fitting and baseline assessments available at our retail stores, MST Golf Arena and The Golf Lab. We will embark on e-golf tournaments in our indoor golf centres to create more excitement among social amateur and professional golfers. Upgrading of Digital Technology Facilities: Our strategy also includes significant investment in enhancing our digital technology infrastructure, in line with the Group’s expansion. This will involve a comprehensive upgrade of our Enterprise Resource Planning (ERP) and IT systems, to match our business growth and enhance operational capabilities with advanced data analytics features. 1 2 MANAGEMENT DISCUSSION & ANALYSIS
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