28 MY E.G. SERVICES BERHAD Registration No. 200001003034 (505639-K) Therefore, capital expenditure in 2024 will be devoted mainly towards ongoing and new Web3 projects. Investments will also be made in new non-blockchain projects such as the setting up of foreign worker accommodations in Penang and other potential locations. The Group maintains the flexibility to tap internally generated funds and/or borrowings. With these strategic positions in mind, MYEG is focused on mitigating key risks that might occur while capitalising on any opportunities that arise in 2024. Risks Mitigation Strategy In view of the evolving global regulatory landscape pertaining to digital assets, adverse changes in regulations and / or restrictions on the ownership / trading of digital assets may impede the growth and wider adoption of Web3 / blockchain technology. MYEG has been working closely with government agencies on the regulatory front. In fact, the Zetrix platform and many of the decentralised applications introduced are deployed in collaboration with government agencies or are related to government services directly or indirectly. With the endorsement and involvement of governments or government-owned entities, the services offered are less likely to face regulatory restrictions. Ensuring Zetrix standouts as a leading global Web3 platform will invariably entail consistent investment to enhance capacity, capability and reach. At the same time, the Group is cognisant of the need to remain prudent amid an uncertain global economic backdrop in order to be in a financially sound and healthy position to navigate any unforeseen turbulence that may arise. The extent of the investment and capital expenditure to be made moving forward will be scaled appropriately by balancing a range of considerations, including the Group’s present and future cash generation capacity, prevailing and prospective growth prospects of the business, global economic prospects, market conditions as well as rewarding shareholders through dividend distribution. Opportunities Leveraging Strategy Web3 technology is rapidly gaining momentum and has been identified (not least by influential bodies such as the United Nations Centre for Trade Facilitation and Electronic Business) as the ideal mechanism for the digitalisation of verifiable credentials, especially in relation to global cross-border trade processing and the verification of sustainable products. It is only a matter of time before Web3 solutions become the global standard and the new norm. Through its integration and connectivity with China’s national blockchain, and in view of China’s status as a global trading giant with extensive commerce and business links with the rest of the world, Zetrix is well-positioned to power the digitalisation of crossborder trade and capture a significant share of related transactions on the platform. Part of the requirements of building a vibrant, expansive ecosystem via the Group’s Zetrix-related projects and Web3 initiative would involve having the right strategic partners and collaborators participating in the Zetrix platform for mutual benefit. MYEG’s current collaboration-driven strategy has been in place since the inception of Zetrix, and it will remain for the foreseeable future. Moreover, the Group is hopeful not only of deepening its relationship with existing partners, but also anticipates welcoming new partners from distinct geographies and industries, each adding their own unique value to the Zetrix platform. In conjunction with fostering beneficial partnerships with important public and private entities, the Board remains cautiously optimistic about the future of the Group, barring unexpected developments. MYEG’s strong internal capabilities, which enable it to strategically leverage existing, new and prospective technologies, will continue to guide the Group’s core business strengths in the financial year 2024 towards achieving sustained growth on both the domestic and international fronts. MANAGEMENT DISCUSSION AND ANALYSIS (cont’d) Th f i l di i ill b d d i l d i d W b j I
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