77 ANNUAL REPORT 2024 MST GOLF GROUP BERHAD Time Horizon RCP4.5/SSP2 (Intermediate Mitigation) Medium-term – (2030 – 2040) Risk Description Risk Category Impact Description Impact Likelihood Mitigation/Adaptation Strategy & Opportunities Land-use policies favour alternative sports. Policy and Legal Transition Risk Declining customer base & reduced sales. Medium High Reposition golf retail offerings to lifestyle sports & sustainable leisure markets. Long-term – (2040 onwards) Persistent adverse weather conditions reduce golf viability. Chronic Physical Risk Reduced industry growth & worsening sales. High Very High Pivot toward multi-sport offerings & climate-resilient leisure markets. Time Horizon RCP8.5/SSP5 (High Emissions, Business as Usual) Short-term – (2025 – 2030) Risk Description Risk Category Impact Description Impact Likelihood Mitigation/Adaptation Strategy & Opportunities Intensified rainfall & heatwaves disrupt outdoor golfing &reduce footfall to retail stores. Chronic Physical Risk Major revenue losses, reduced golfer participation & shifting demand to alternative leisure activities. Medium High Invest in weather-resilient retail locations & diversified revenue streams. Medium-term – (2030 – 2040) Climate instability makes golf unsustainable in some regions. Chronic Physical Risk Permanent market shrinkage in multiple regions, leading to severe loss of revenue. High Very High Transform business models to focus on diversified, sustainable sports retail rather than purely golf-centric operations. Long-term – (2040 onwards) Extreme weather events make golf unviable in many regions. Chronic Physical Risk Revenue streams collapse in certain locations, requiring a full transition to alternative revenue sources. Very High Very High Expand to regions less affected by climate volatility & explore alternative sports retail. To complement the detailed climate scenario analysis, the table below offers a narrative summary of how each scenario could affect MST Golf’s business and strategic response, providing an alternative view of potential impacts and adaptation pathways.
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