Registration NO. 200001003034 (505639-K)
GOVERNANCE Corporate Governance Overview Corporate Governance Statement Audit Committee Report Risk Management and Internal Control Statement FINANCIAL STATEMENTS Directors’ Report Statement by Directors Statutory Declaration Independent Auditors’ Report Statements of Financial Position Statements of Profit or Loss and Other Comprehensive Income Statements of Changes in Equity Statements of Cash Flows Notes to the Financial Statements ADDITIONAL INFORMATION Additional Compliance Information Directors’ Responsibility Statement Analysis of Shareholdings List of Properties ANNUAL GENERAL MEETING Notice of the Twenty-Fourth Annual General Meeting Proxy Form WHAT’S INSIDE OVERVIEW About This Report Corporate Information Group Corporate Profile Group Corporate Structure Key Milestones Awards and Accolades PERFORMANCE Highlights of Financial Performance Statement of Value Added Distribution and Simplified Financial Statement Share Price Performance and Investor Relations Management Discussion and Analysis LEADERSHIP Board of Directors’ Profile Key Senior Management’s Profile OUR BUSINESS Our Business Model At Work Matters Impacting Value Creation Strategies to Sustain Value Creation Value Creation Model SUSTAINABILITY STATEMENT Overview FY2024 Sustainability Highlights and Achievements UNSDG Sustainability KPIs and Targets Sustainability Governance Stakeholder Engagement Materiality Matters Sustainability Performance Report 02 06 08 10 12 13 14 16 17 19 31 38 41 44 51 54 56 57 58 64 65 78 80 132 134 140 158 163 166 171 171 172 177 179 180 183 190 268 270 271 274 276
02 ABOUT THIS REPORT INTRODUCTION MY E.G. Services Berhad (“MYEG” or the “Company”) and its subsidiaries (the “Group”) presents its Integrated Annual Report (“IAR”) for the financial year (“FY”) ended 31 December 2024 (“FY2024”) (“IAR2024”). Contents for MYEG’s IAR2024 have been developed in accordance with the principles-based framework of Integrated Reporting as well as other reporting frameworks as follows: r .BJO .BSLFU -JTUJOH 3FRVJSFNFOUT iMMLR”) of Bursa Malaysia Securities Berhad (“Bursa Securities”) r .BMBZTJBO 'JOBODJBM 3FQPSUJOH 4UBOEBSET iMFRS”) r *OUFSOBUJPOBM 'JOBODJBM 3FQPSUJOH 4UBOEBSET iIFRS”) r /BUJPOBM 4VTUBJOBCJMJUZ 3FQPSUJOH 'SBNFXPSL iNSRF”) r #VSTB .BMBZTJB 4VTUBJOBCJMJUZ 3FQPSUJOH (VJEF SE &EJUJPO iSRG3”) r 5BTL 'PSDF PO $MJNBUF 3FMBUFE 'JOBODJBM %JTDMPTVSFT iTCFD”) r '54& (PPE #VSTB .BMBZTJB *OEFY %JTDMPTVSFT iFTSE Russell’s ESG Data Model”) r .BMBZTJBO $PEF PO $PSQPSBUF (PWFSOBODF iMCCG”) r $PNQBOJFT "DU iAct”) r *40 3JTL .BOBHFNFOU 4UBOEBSE JNQMFNFOUFE JO The usage of the Integrated Reporting framework enables MYEG’s transition to ultimately BEPQU UIF /43' XIJDI JODMVEFT *'34 4 (FOFSBM 3FRVJSFNFOUT GPS %JTDMPTVSF PG Sustainability-related Financial Disclosure (“S1”) and IFRS Climate Related Disclosures (“S2u *O FTTFODF the focus of MYEG is to present meaningful disclosures that meet the information needs of diverse stakeholders and providers of capital.
03 OVERVIEW ABOUT THIS REPORT (cont’d) Sustainability information tailored to audience needs Investor-focused general-purpose financial reporting Other corporate reporting (multi-stakeholder focus) Financial statements Sustainability-related financial disclosures GAAP-agnotics integrated reporting Accounting Sustainability 5ISPVHI JUT JOUFHSBUFE SFQPSUJOH BQQSPBDI .:&( JOUFOET UP QSPWJEF DPNQSFIFOTJWF EJTDMPTVSFT PO NBUFSJBM JOGPSNBUJPO UIBU FYUFOE CFZPOE QBTU àOBODJBM QFSGPSNBODF CVU UP BMTP QSFTFOU OBSSBUJWFT PO NBUUFST UIBU FSPEF TVTUBJO BOE FOIBODF WBMVF DSFBUJPO PWFS UIF TIPSU NFEJVN BOE MPOH UFSN QFSTQFDUJWFT Multi-Capital Lens Integrated Annual Report 2024 Business strategies to sustain value creation ESG matters that impact enterprise value creation Stakeholders influence and impact Significant capital dependencies Risks and opportunities
04 BASIS OF REPORT PREPARATION AND CONTENT DETERMINATION MYEG has drawn from the following in determining content for inclusion in IAR2024: Disclosures Driven by Regulatory Requirements Material ESG Disclosures from an Impact Materiality Perspective Material ESG Disclosures from a Financial Materiality Perspective Information Explaining the Group’s Business Model Forward- Looking Information Other Useful Information MYEG Considers the Following for IAR2024’s Content 1 2 3 4 5 6 4QFDJàDBMMZ JO SFGFSFODF UP UIF áPX PG DPOUFOU UIF TFRVFODJOH BOE GPDVT PO *OUFHSBUFE 3FQPSUJOH $POUFOU &MFNFOUT were driven based on a strategic approach developed during a previous Integrated Reporting Strategy Workshop as well as material disclosure requirements based on the following IFRS Accounting Standards’ principle: Information is NBUFSJBM JG PNJUUJOH NJTTUBUJOH PS PCTDVSJOH JU DPVME SFBTPOBCMZ CF FYQFDUFE UP JOáVFODF JOWFTUPS EFDJTJPOT 1SPHSFTTJWFMZ BEPQUJOH B EPVCMF NBUFSJBMJUZ BQQSPBDI *"3 MPPLT UP JEFOUJGZ TJHOJàDBOU NBUFSJBM UPQJDT UIBU would impact financial value creation and the associated risks and opportunities for each topic. Disclosures on FOWJSPONFOUBM TPDJBM BOE HPWFSOBODF iESG”) material from an impact materiality perspective are also provided in the Sustainability Statement presented in IAR2024. 5IFTF EJTDMPTVSFT TFU UIF GPVOEBUJPO UP FNCFE UIF /43' JOUP PVS SFQPSUJOH EJTDMPTVSFT JO UIF OFBS GVUVSF BOE JO turn incorporating IFRS S1 and IFRS S2 into how we report sustainability-related and climate-related risks and opportunities. IAR2024 has been reviewed and approved by the Management of MYEG prior to publication. No assurance has been undertaken with regard to Integrated Reporting. Internal assurance shall be progressively adopted in subsequent years’ reporting. IAR2024 REPORTING SCOPE & BOUNDARY SCOPE *"3 QSPWJEFT EJTDMPTVSFT QFSUBJOJOH UP UIF CVTJOFTT PQFSBUJPOT BDUJWJUJFT QSPDFTTFT FNQMPZFFT BOE XIFSF SFMFWBOU UIF TVQQMZ DIBJO PG UIF (SPVQ *O BEEJUJPO UIF GPMMPXJOH GRI reporting principles have also been applied in determining report content: stakeholder JODMVTJWFOFTT TVTUBJOBCJMJUZ DPOUFYU DPNQMFUFOFTT PG JOGPSNBUJPO CBMBODF DPNQBSBCJMJUZ BDDVSBDZ UJNFMJOFTT SFMJBCJMJUZ BOE DMBSJUZ *"3 QSPWJEFT EJTDMPTVSFT GPS UIF àOBODJBM QFSJPE PG ': XIJDI JT UIF QFSJPE DPNNFODJOH from 1 January 2024 to 31 December 2024. BOUNDARY An equity scope is applied whereby all operating entities of which MYEG has a majority equity TUBLF IBWF CFFO JODMVEFE JO UIF SFQPSU *O FTTFODF UIF MJTUFE FOUJUZ BOE BMM TVCTJEJBSJFT JO XIJDI MYEG holds a majority ownership position of 51% or more. ABOUT THIS REPORT (cont’d)
05 OVERVIEW ABOUT THIS REPORT (cont’d) REPORT DISTRIBUTION AND AVAILABILITY IAR2024 is available for download in PDF format via the following link: https://www.myeg.com.my/investor-relations/reports-presentations. IAR2024 is also available for download on Bursa Malaysia’s website. FORWARD-LOOKING STATEMENTS 5IJT SFQPSU DPOUBJOT JOGPSNBUJPO PO .:&( T TUSBUFHJD QSJPSJUJFT BOUJDJQBUFE SJTLT BOE PQQPSUVOJUJFT JOEVTUSZ PVUMPPL and the Group’s prospects. All information herewith was collated based on reasonable assumptions using existing GPSFDBTU NPEFMT BOE QSFTFOU NBSLFU DPOEJUJPOT XIJDI NBZ DIBOHF EVF UP B XJEF SBOHF PG GBDUPST UIBU BSF CFZPOE UIF Group’s control. "T TVDI BMM GPSXBSE MPPLJOH TUBUFNFOUT BSF OPU DPODMVTJWF "DUVBM QMBOT BOE SFTVMUT NBZ EJGGFS GSPN UIPTF FYQSFTTFE in this report. Forward-looking statements do not serve as guarantees of future operational or financial results or any other kind of outcome. Such have not been reviewed or audited by an external auditor. ASSURANCE 'JOBODJBM EBUB EJTDMPTFE IBT CFFO BVEJUFE CZ .FTTST 5(4 58 1-5 BOE CBTFE PO UIFJS àOEJOHT QSFTFOUT B USVF BOE fair view of the Group’s fiscal position for FY2024. Non-financial information has been assessed and reviewed internally by the Group’s Senior Management and it is of UIFJS WJFX UIBU BMM OBSSBUJWFT EJTDMPTVSFT BOE EBUB QSFTFOUFE IBWF CFFO JOUFSOBMMZ WFSJàFE CZ SFTQFDUJWF EBUB PXOFST GPS accuracy and veracity. 'VSUIFSNPSF UIF BTTFTTNFOU QSPDFTT JODMVEFT WFSJGZJOH UIF EBUB DPMMFDUJPO QSPDFTT JODMVEJOH WFSJàDBUJPO PG EBUB TPVSDFT TVDI BT UIF QPJOU PG PSJHJO PG BMM DPMMFDUFE EBUB BOE JOGPSNBUJPO UIF USFBUNFOU PG TBJE EBUB BOE JOGPSNBUJPO J F XIFUIFS JU XBT QSPDFTTFE BHHSFHBUFE BOBMZTFE SFQSFTFOUFE PS XBT QSFTFOUFE JO SBX GPSN GPS QVCMJDBUJPO JO *"3 BOE JNQPSUBOUMZ JG UIF EBUB BOE JOGPSNBUJPO SFNBJOFE BDDVSBUF BT JU XBT DIBOOFMMFE BDSPTT UIF EJTTFNJOBUJPO process. It is of the Management’s view that the non-financial data and information presented in IAR2024 are to the best knowledge of the Management to be accurate and present a fair view of the Group. FEEDBACK Feedback on this report and the issues covered can be channelled to our Investor Relations unit at (Tel) +603 - 7664 8000 or via e-mail to investors@myeg.com.my. DIRECTORS’ STATEMENT OF RESPONSIBILITY The Board acknowledges that IAR2024 has been developed based on good governance practices and guided by the aforementioned reporting frameworks. The Board also provides assurance that the financial statements audited by .FTTST 5(4 58 1-5 XFSF QSFQBSFE JO BDDPSEBODF XJUI UIF SFMFWBOU TUBOEBSET BOE GSBNFXPSLT JODMVEJOH UIF .'34 and IFRS.
06 CORPORATE INFORMATION
07 OVERVIEW CORPORATE INFORMATION (cont’d) Dato’ Othman Bin Semail Datuk Mohd Jimmy Wong Bin Abdullah Registration Number: 202001042098 (1398419-T) E-10-4, Megan Avenue 1 189, Jalan Tun Razak 50400 Kuala Lumpur W.P. Kuala Lumpur Malaysia Tel : 03 -2181 0516 Fax : 03 -2181 0516 Email : ir.shareregistry@gapadvisory.my E-10-4, Megan Avenue 1 189, Jalan Tun Razak 50400 Kuala Lumpur W.P. Kuala Lumpur Malaysia Tel : 03 -2181 0516 Fax : 03 -2181 0516 Email : office@gapadvisory.my Chin Wai Yi (MAICSA 7069783) (SSM PC No. 202008004409) Level 43A, Zetrix Tower, Empire City No.8, Jalan Damansara, PJU 8 47820 Petaling Jaya, Selangor, Malaysia. Tel : 03 -7664 8000 Fax : 03 -7664 8008 Email : investors@myeg.com.my Website : www.myeg.com.my (20210600004 (LLP0026851-LCA)& AF 002345) Unit E-16-2B, Level 16, ICON Tower (East) No 1, Jalan 1/68F, Jalan Tun Razak 50400 Kuala Lumpur, Malaysia Tel : 03 -9771 4326 Fax : 03 -9771 4327 Ambank (M) Berhad CIMB Bank Berhad HSBC Bank Malaysia Berhad Malayan Banking Berhad Public Bank Berhad RHB Bank Berhad Main Market of Bursa Malaysia Securities Berhad Stock Name : MYEG Stock Code : 0138 Dato’ Othman Bin Semail Dato’ Othman Bin Semail
08 GROUP CORPORATE PROFILE .:&( JT .BMBZTJB T MFBEJOH EJHJUBM TFSWJDFT QSPWJEFS $PNNFODJOH PQFSBUJPOT JO UIF (SPVQ DPOUJOVFT UP CF BU UIF GPSFGSPOU PG FOBCMJOH UIF EJHJUBMJTBUJPO PG B XJEF SBOHF PG HPWFSONFOU BOE DPNNFSDJBM TFSWJDFT JO UIF NPTU TFDVSF efficient and accessible manner through its electronic platform. Entrusted by regional governments to provide vital services of OBUJPOBM BOE JOUFSOBUJPOBM JNQPSUBODF .:&( JT BDUJWFMZ XPSLJOH today with the likes of the Road Transport Department (“JPJ”) and the Immigration Department (“JIMu JO .BMBZTJB UIF /BUJPOBM Bureau of Investigation (“NBI”) and the Bureau of Internal Revenue (“BIRu JO UIF 1IJMJQQJOFT BT XFMM BT UIF (FOFSBM "ENJOJTUSBUJPO of Customs of the People’s Republic of China (“GACC”) and China Academy of Information and Communications Technology (“CAICTu JO $IJOB BNPOH PUIFST *O BEEJUJPO UIF (SPVQ BMTP QSPWJEFT B NZSJBE PG DPOTVNFS DPNNFSDJBM CBTFE TFSWJDFT *O EPJOH TP .:&( FOBCMFT FBTZ BOE seamless access to various government and commercial services affordably and provides a complete digital solution. Technology has always formed the basis of all MYEG’s endeavours since inception. In SFDFOU UJNFT UIF (SPVQ IBT QPTJUJPOFE JUTFMG as a leader in the region’s Web3 revolution through the development and deployment of real-world decentralised applications on its proprietary Zetrix Layer-1 public blockchain. Please refer to our Business Model section for specific information on how MYEG delivers digital government and commercial services and the specific values (outputs and outcomes generated) through the business model. BUSINESS MODEL Harnessing inherent and external technological capabilities to create in-demand solutions that bring services and offerings closer to customers and meet present and evolving market needs. WHOM WE SERVE Federal, state and municipal governments, regulatory bodies and agencies, economic and industrial sectors, commercial businesses and the general public. FINANCIAL AND STAKEHOLDER VALUES CREATED Competitive propositions that deliver convenience, ease of access, protection assurance, development of technology, innovation, affordability and ultimately customer satisfaction. WHO WE ARE? WHAT WE DO Provider of digital e-Government and commercial services as well as various other technologically enabled products and solutions. OUR SERVICES IN MALAYSIA r 1BZNFOU PG DPNQPVOE TVNNPOT BTTFTTNFOU r "TTFTTNFOU BOE QBZNFOU PG [BLBU r "VUP àOBODJOH r "VUP JOTVSBODF r #&-* F .BSU r #MPDLDIBJO *EFOUJUZ 7FSJàBCMF Credentials and Blockchain-based Agreement Signing r $PNQFUFOU %SJWJOH -JDFOTFT (“CDL”) renewal r $3*' #J[JOTJHIU 4FSWJDFT r %SJWFS T UIFPSZ UFTU r 'PSFJHO XPSLFS JOTVSBODF r 'PSFJHO XPSLFS SFDSVJUNFOU placement r *OTPMWFODZ TFBSDI r 3FOFXBM PG ESJWFS T MJDFODF r .Z"TTJTU SPBETJEF BTTJTUBODF r .:%"5" 44. 4FSWJDFT r .Z4UBZ GPSFJHO XPSLFS accommodation services r 0OF TUPQ QPSUBM GPS NBOBHJOH workforce r 0OMJOF NFEJB r 1BZNFOU TPMVUJPO TFSWJDFT r 1BZSPMM NBOBHFNFOU r 1FSTPOBM BOE CVTJOFTT àOBODJOH r 3FNJUUBODF r 3FOFXBM PG GPSFJHO XPSLFS T QFSNJU r 3FOFXBM PG SPBE UBY r 3FOFX /PX 1BZ -BUFS iBNPL”) scheme for road tax and motor insurance r 7FIJDMF PXOFSTIJQ USBOTGFS r ;FUSJY -BZFS CMPDLDIBJO r ;5SBEF'J TVQQMZ DIBJO àOBODJOH solution r .:&( %SJWF 5FTUJOH 4ZTUFN r ;5SBEF $IJOB DVTUPNT DMFBSBODF processing r ;F'J ;FUSJY 4UBLJOH r ;FUSJY 9JOHIVP .VMUJ $IBJO 8BMMFU r .Z%JHJUBM *% 4VQFSBQQ r $SFEJU #VSFBV .BMBZTJB .Z4$P3& Report r #/1- TDIFNF GPS BVUPNPUJWF services
09 OVERVIEW GROUP CORPORATE PROFILE (cont’d) Penang Malacca Terengganu Kedah Sarawak Sabah Selangor Kuala Lumpur Negeri Sembilan Johore S k M l K d h Pahang Kelantan Perlis Perak GOING BEYOND MALAYSIA MYEG’s successful business model has been rolled out across Asia with the Group having expanded its QSFTFODF SFHJPOBMMZ QBSUJDVMBSMZ UP UIF 1IJMJQQJOFT Hong Kong and China. The elevation of the Group’s Zetrix blockchain to having the status of being the first international TVQFSOPEF PG $IJOB T 9JOHIVP #MPDLDIBJO Infrastructure and Facility (“Xinghuo BIF”) network as part of a broader Web3 collaboration with the $"*$5 B TDJFOUJàD SFTFBSDI JOTUJUVUF VOEFS $IJOB T .JOJTUSZ PG *OEVTUSZ BOE *OGPSNBUJPO 5FDIOPMPHZ has paved the way for MYEG to play a pioneering role in introducing game-changing decentralised applications that aim to revolutionise cross-border trade and credentials verification and catalyse the blockchain space as a whole in the region. CHINA PHILIPPINES MALAYSIA INDIA SRI LANKA SINGAPORE Bay of Bengal MYANMAR LAOS THAILAND CAMBODIA EAST TIMOR BRUNEI VIETNAM OUR SERVICES IN INTERNATIONAL MARKETS r $PWJOTVSF r &MFDUSPOJD CVTJOFTT QFSNJUT BOE MJDFODFT GPS MPDBM government units r .:&( JOTVSBODF QPSUBM r .:&( -BOECBOL -JOLCJ[ F 1BZNFOUT r /#* DMFBSBODF SFOFXBM BOE EFMJWFSZ r /BUJPOBM )PNF .PSUHBHF 'JOBODF $PSQPSBUJPO iNHMFC”) online payment r Online payment of fees to the Philippine Economic Zone Authority (“PEZA”) r 0OMJOF QBZNFOU PG JODPNF UBYFT UP UIF #VSFBV PG *OUFSOBM Revenue (“BIR”) r 0OMJOF 1BZNFOUT GPS )FBMUI .FUSP .BOJMB $FOUFS GPS Health Development (“DOH-MMCHD”) r 1IJM)FBMUI 7PMVOUBSZ .FNCFST 1BZNFOU r 4FDVSJUJFT BOE &YDIBOHF $PNNJTTJPO SFHJTUSBUJPO and fee payment r 4PDJBM 4FDVSJUZ 4ZTUFN POMJOF QBZNFOU r 4VCJD #BZ .FUSPQPMJUBO "VUIPSJUZ iSBMA”) Electronic Billing and Payment System (“eBPS”) r 5PVSJTN *OGSBTUSVDUVSF BOE &OUFSQSJTF ;POF Authority (“TIEZA”) Online Travel Tax Services System (“OTTSS”) r ;$FSU 7FSJàBCMF $SFEFOUJBMT r ;FUSJY -BZFS CMPDLDIBJO r ;FUSJY 9JOHIVP .VMUJ $IBJO 8BMMFU r ;JEFOUJUZ & TJHOJOH TFSWJDF r ;5SBEF $IJOB DVTUPNT DMFBSBODF QSPDFTTJOH r ;5SBEF'J 4VQQMZ $IBJO 'JOBODJOH
10 MYEG (BD) Ltd. Engaging in the business of technology services and e-government services in Bangladesh. MY EG (Bangladesh) Sdn. Bhd. Investment holding. 40% 100% GROUP CORPORATE STRUCTURE MY E.G. Digital ID Sdn. Bhd. Development and implementation of distributed ledger technology and solutions for digital identification services. MY E.G. Services Berhad %FWFMPQNFOU BOE JNQMFNFOUBUJPO PG UIF FMFDUSPOJD (PWFSONFOU TFSWJDFT QSPKFDU QSPWJTJPO PG PUIFS SFMBUFE TFSWJDFT GPS UIF FMFDUSPOJD (PWFSONFOU TFSWJDFT QSPKFDU QSPWJTJPO PG JOGPSNBUJPO UFDIOPMPHZ TPMVUJPOT BOE TFSWJDFT BOE JOWFTUNFOU IPMEJOH Gale Vector Sdn. Bhd. Provision of software solutions and maintenance services. MY E.G. Commerce Sdn. Bhd. Principally engaged in the business of providing auto insurance intermediary services and other related ancillary services. MY EG Management Services Sdn. Bhd. Provide management and consultancy services. MYEG Philippines, Inc. Development and Implementation of e-Government services projects and provision of other related services including payment services in the Republic of the Philippines. Zetrix Fintech Sdn. Bhd. Provision of digital solutions and ancillary services as well as investment holding company. MY E.G. Integrated Networks Sdn. Bhd. Provision of software and hardware solutions and related services. MY EG Sdn. Bhd. Principally engaged in the business of development and implementation of the electronic Government services project and the provision of other related services. MYEG Trade Sdn. Bhd. 5SBEJOH PG NPUPS WFIJDMFT SFOUBM PG NPUPS WFIJDMFT BOE QSPWJTJPO PG BODJMMBSZ TFSWJDFT NFT Capital (Labuan) Co., Ltd. Investment holding. MYEG Auto Assist Sdn. Bhd. 1SPWJTJPO PG NPUPS WFIJDMFT JOTQFDUJPO NBJOUFOBODF BOE SFQBJS PG NPUPS WFIJDMFT NPUPS WFIJDMFT CSFBLEPXO BTTJTUBODF XJUI UPXJOH TFSWJDFT TBMF PG SFNPWBCMF NPUPS WFIJDMF TQBSF QBSUT and provision of membership in relation thereto. NFT Capital Sdn. Bhd. Activities of holding companies. MY EG Lodging Sdn. Bhd. #VJME PXO BOE PQFSBUF IPTUFMT GPS GPSFJHO XPSLFST NFT Creative Sdn. Bhd. To carry on the business of providing solutions and technical services and support related to applications and software development. MYEG TwoCar Sdn. Bhd. Provision of undertaking the registration and transfer of NPUPS WFIJDMF PXOFSTIJQ CVTJOFTT TFHNFOU QSPWJEJOH complementary services arising from new and used car dealers and ancillary services. MYEG FWA (Tanjong Langsat) Sdn. Bhd. Property investments and provision of workers accommodation services. MY EG Lodging (Muar) Sdn. Bhd. Property investments and provision of workers accommodation services. MY EG Lodging (NC) Sdn. Bhd. Property investments and provision of workers accommodation services MY EG International Sdn. Bhd. Undertaking investments and joint ventures in foreign countries. MY EG (Indonesia) Sdn. Bhd. Investment holding. PT MYEG Services Indonesia #VJME PXO BOE PQFSBUF B EJHJUBM QMBUGPSN GPS DPNNFSDJBM TFSWJDFT MY EG (Philippines) Sdn. Bhd. Investment holding. MY EG (Thailand) Sdn. Bhd. Investment holding. Zetrix Tech Development (Shanghai) Co., Ltd. 1SPWJTJPO PG BMM LJOET PG UFDIOPMPHZ TFSWJDFT EFWFMPQNFOU DPOTVMUJOH UFDIOPMPHZ USBOTGFS USBEJOH PG DPNQVUFS hardware and software and other related activities. Zetrix Foundation To act as a holding company for all of its intellectual property and investment holding. 100% 100% 100% 100% 40% 49% 40% 100% 100% 100% 100% 100% 100% 65% 100% 100% 100% 100% 80% 100% 90% 49% 100% 100% Zetrix SG Pte. Ltd. Investment holdings. Zetrix Ltd. Investment holding. 100% 100% 100% 100% MY EG (Thailand) Co., Ltd. &OHBHF JO EJWFSTF CVTJOFTT BDUJWJUJFT JODMVEJOH CVU OPU MJNJUFE UP QSPQFSUZ NBOBHFNFOU àOBODJBM TFSWJDFT DPOTUSVDUJPO USBOTQPSUBUJPO IPTQJUBMJUZ IFBMUIDBSF FOUFSUBJONFOU SFUBJM DPOTVMUJOH USBEJOH PG WBSJPVT HPPET BOE DPNNPEJUJFT QSPWJTJPO PG TFSWJDFT UFDIOPMPHZ EFWFMPQNFOU BOE HPWFSONFOUBM F HPWFSONFOUBM TZTUFN TFSWJDFT
11 OVERVIEW GROUP CORPORATE STRUCTURE (cont’d) MY E.G. Capital Sdn. Bhd. Investment holding. MY EG Ad Networks Sdn. Bhd. Providing of advertising and marketing services. MY E.G. Alternative Payment Services Sdn. Bhd. Providing and operating an electronic payment and remittance platforms for the JTTVBODF USBOTGFS DMFBSBODF BOE TFUUMFNFOU of electronic money and all ancillary products and services related to it. MY EG Finance Technologies Sdn. Bhd. Financial leasing activities and other credit granting activities and money lending services. MY EG E-Settlement Sdn. Bhd. Providing of software solutions and maintenance services. Agensi Perkerjaan MY EG Jobs Sdn. Bhd. To carry on business as private employment agency to recruit and place a worker to another employer. PayMe Sdn. Bhd. Provision of human resource management and payroll solutions. MY EG Islamic Finance Sdn. Bhd. 1SPWJTJPO PG *TMBNJD àOBODJOH MFBTJOH BOE other Islamic credit granting activities. 100% 100% 100% 100% 100% 100% 100% 100% Beli Mart Sdn. Bhd. 5P CVJME EFWFMPQ PXO BOE PQFSBUF e-commerce platform. 100% Mydigitalcoin Sdn. Bhd. Provision of payment solutions and related services. Zetrix Sdn. Bhd. Development and provision of distributed ledger technology and solutions related products and services. MYEG Travel Services Sdn. Bhd. (f.k.a. Muca Wellness Sdn. Bhd.) 5SBWFM BHFOU BDUJWJUJFT JODMVEJOH EPNFTUJD international tourism management business and travel agency business. MYEG Pharma Sdn. Bhd. .BOVGBDUVSJOH USBEJOH FYQPSU BOE JNQPSU and distribution of medical devices and equipment and related ancillary services. 100% 100% 56% 100% Car X Services Sdn. Bhd. Principally engaged in the business of operating and managing automotive classified web portals; other value added services for automotive classified web portals. Picasso Media Sdn. Bhd. Provision of diversified media solutions and related professional services. Hurr TV Sdn. Bhd. #VJME PXO BOE PQFSBUF BO POMJOF 57 channel and e-commerce platform. NFT Pangolin Technologies Sdn. Bhd. %FWFMPQNFOU BOE QSPWJTJPO PG DPNQVUFS TFSWJDFT PUIFS information technology services and investment holding. CardBiz Holding Sdn. Bhd. Investment holding. POSPay Asia Sdn. Bhd. (f.k.a. Buy Now Asia Sdn. Bhd.) Provision and distribution of customised Point-of-Sale (POS) BOE QBZNFOU TZTUFN TPMVUJPOT JODMVEJOH EFWFMPQNFOU BOE JOUFHSBUJPO XJUI CBOLT BOE UIJSE QBSUZ TZTUFNT BOE PGGFSJOH end-to-end solutions for seamless payment processing. CardBiz Solutions Sdn. Bhd. Engaged in the business as an information and communication technologies software solution provider that provide software and system customisation for the clients. 1SPWJEJOH UVSOLFZ TPMVUJPO JODMVEJOH TVQQMZJOH PG OFUXPSLJOH UFMF DPNNVOJDBUJPO DPNQVUFS TPGUXBSF BOE IBSEXBSF related products. CardBiz Technologies Sdn. Bhd. 5SBEJOH PG DPNQVUFS IBSEXBSF TPGUXBSF QSJOUFS BDDFTTPSJFT QFSJQIFSBMT FRVJQNFOU BOE FMFDUSPOJD QSPEVDUT CardBiz Payment Services Sdn. Bhd. *OGPSNBUJPO UFDIOPMPHZ DSFEJU DBSE UFSNJOBM SFOUBM BOE PUIFS related activities. CardBiz eServices Sdn. Bhd. Engaged in the business of providing infrastructure for IPTUJOH EBUB QSPDFTTJOH TFSWJDFT BOE SFMBUFE BDUJWJUJFT Dinamik Koridor Sdn. Bhd. Activities of holding companies. 33% 55% 60% 60% 51% Essential Reviews Sdn. Bhd. Provision of digital platform for reviews and news on restaurants and food and beverage CVTJOFTTFT XJUI BEWFSUJTJOH PS NBSLFUJOH possibilities of related brands. 67% 55% 100% 100% 100% 100% 100% MY AdMarket Sdn. Bhd. Activities of holding companies. 40% 51% MYEG Vac Sdn. Bhd. To market medical products and services.
12 KEY MILESTONES 2024 MAY i. MYEG was named Most Innovative Islamic Deal in Asia at the Islamic Finance Awards 2024 by Euromoney. JUNE i. MYEG partnered with Credit Bureau Malaysia Sdn. Bhd. (“CBM”) to provide an additional avenue for users to self-check credit reports via CBM’s MySCoRE platform. ii. MYEG announced that live connectivity of the ZTrade cross- border trade facilitation services to GACC’s Single Window platform is enabled. JULY i. ZTrade expanded its scope of coverage to encompass the digital verification of Certificates of Origin (“COOs”) issued by the General Administration of Customs of the People’s Republic of China (“GACC”). ii. Zetrix blockchain revolutionised Miss Universe Indonesia and Hong Kong pageants by introducing Decentralised Autonomous Organisations (“DAOs”) to their operations. iii. MYEG Lodging (“Muar”) Sdn. Bhd. and Johor Corporation (“JCorp”) entered into a Sales and Purchase Agreement (“SPA”) for the acquisition of 9.53 acres of industrial land worth 3. GPS UIF DPOTUSVDUJPO of foreign worker accommodation. AUGUST i. Zetrix’s blockchain technology enabled a blockchain-based voting system in the form of digital collectibles for Miss Universe Malaysia 2024. ii. MYEG announced a strategic alliance XJUI .*.04 #FSIBE 8PSMEDPJO 'PVOEBUJPO BOE 5PPMT GPS )VNBOJUZ to revolutionise Malaysia’s blockchain infrastructure and digital ecosystem. JANUARY i. Announced that the provision of online renewal of Pas Lawatan Kerja Sementara (“PLKS”) for foreign workers will resume on 15 +BOVBSZ GPMMPXJOH UIF DPNQMFUJPO PG B TZTUFN FOIBODFNFOU carried out as part of the requirements for the extension of the service granted earlier by the Ministry of Home Affairs. On 16 0DUPCFS .:&( SFDFJWFE B MFUUFS PG BDDFQUBODF GSPN UIF ministry to extend the service for a period of 2 years. JJ 8FC -BCT )POH ,POH B 8FC EFWFMPQNFOU BOE JOWFTUNFOU powerhouse; and venture capital firm Summer Capital announced a strategic collaboration to propel Hong Kong’s Web3 ambitions and establish Zetrix as the preferred blockchain infrastructure for HK government-aligned applications. FEBRUARY i. MYEG Philippines and Social Security Systems (“SSS”) entered a groundbreaking partnership to enhance the payment experience GPS 444 NFNCFST FOBCMJOH UIFN UP FOKPZ IBTTMF GSFF BOE efficient online payment of loans and contributions through XXX NZFH QI *O BEEJUJPO NFNCFST XJMM CF BCMF UP FGGPSUMFTTMZ generate their Payment Reference Number on the same platform. ii. Signed an Memorandum of Understanding (“MoU”) in relation to a collaboration to provide Electronic Government Services in the State of Sarawak. iii. Zetrix and Web3Labs Hong Kong launched the Zetrix Global Accelerator Programme to incubate and nurture promising Web3 startups from all over the world with ecosystem support from Hong Kong’s progressive Virtual Asset (“VA”) ecosystem. MARCH i. Zetrix Global Accelerator Programme opened for registration with the aim to discover and support the most promising Web3 startup worldwide. ii. MY E.G. Capital Sdn. Bhd. announced acquisition of strategic interest in Heitech Padu Bhd. JJJ .Z"TTJTU JO DPMMBCPSBUJPO XJUI %JSFDU -FOEJOH BOOPVODFE B Shariah-compliant Buy Now Pay Later scheme for automotive services. APRIL i. Entered teaming agreement with Heitech Padu Berhad to work together and form a collaboration to explore services in relation to the Information Technology industry in Malaysia. ii. Zetrix Foundation entered into an MoU with MaiCapital Limited in )POH ,POH UP DPMMBCPSBUF PO UIF MBVODI PG 4FDVSJUJFT 'VUVSFT Commission of Hong Kong (“SFC”) approved Exchange Traded Fund (“ETF”) of a basket of digital assets which may include Bitcoin and Zetrix.
13 OVERVIEW AWARDS AND ACCOLADES May 2024 Named Most Innovative Islamic Deal in Asia at the Islamic Finance Awards 2024 by Euromoney November 2024 FTSE4Good Score - FTSE ESG rating improved to an overall score of 4.0 Placed within the top 19% of its peer group JO UIF 4 1 (MPCBM $PSQPSBUF 4VTUBJOBCJMJUZ Assessment January 2025 8PO UIF #SPO[F BXBSE JO UIF F DPNNFSDF category at the Putra Aria Brand Awards 2024 SEPTEMBER i. MYEG announced its collaboration with East -PHJTUJDT -JOL $P B XIPMMZ PXOFE BHFODZ of the General Administration of Customs of UIF 1FPQMF T 3FQVCMJD PG $IJOB UP FYDMVTJWFMZ collaborate on the development and operation of the National Single Window (“NSW”) platform for ASEAN countries. ii. MYEG signed an MoU with the Federation of Malaysian Freight Forwarders (“FMFF”) to promote the adoption of ZTrade among FMFF members and to establish the cross-border trade facilitation platform as the NSW. OCTOBER J ;&53*9 MBVODIFE $IJOFTF %JHJUBM *% *EFOUJUZ Verification Service on ZCert to be authenticated and verified digitally overseas. JJ .:&( 1IJMJQQJOFT *OD FOUFSFE JOUP B TJHOJàDBOU partnership with the National Home Mortgage Finance Corporation (“NHMFC”) for the integration of the MYEG payment gateway into NHMFC’s Online Payment Service platform. NOVEMBER i. MYEG was awarded a score of 4.0 in ESG BTTFTTNFOUT CZ '54& 3VTTFMM SBOLJOH UIF Group among the top 15% of global industry peers. It also placed within the top 19% of JUT QFFS HSPVQ JO UIF 4 1 (MPCBM $PSQPSBUF Sustainability Assessment. DECEMBER i. Zetrix and Astron launched enhanced China %JHJUBM *%T ;JEFOUJUZ iZIDu UP DPNCBU POMJOF identity fraud. ii. Zetrix partnered with Malaysia Digital Economy Corporation (“MDECu *OUFMMJHFODF 5SBDFBCJMJUZ 4EO #IE BOE #JGPSTU (SPVQ PO IBMBM traceability through blockchain. KEY MILESTONES 2024 (cont’d)
14 Revenue Shareholders’ Equity (RM’000) Net Earnings Per Share (Sen) Total Assets (RM’000) Net Profit Attributable to Owners of the Company (RM’000) Net Tangible Assets Per Share (Sen) 5-year CAGR(2) 18.5% 5-year CAGR(2) 11.4% 5-year CAGR(2) 31.9% 5-year CAGR(2) 32.8% (RM’000) FY2021 FY2022 FY2020 (15 months) FP2019(1) FY2023 FY2024 FY2021 FY2022 FY2020 (15 months) FP2019(1) FY2023 FY2024 FY2021 FY2022 FY2020 (15 months) FP2019(1) FY2023 FY2024 FY2021 FY2022 FY2020 (15 months) FP2019(1) FY2023 FY2024 FY2021 FY2022 FY2020 (15 months) FP2019(1) FY2023 FY2024 FY2021 FY2022 FY2020 (15 months) FP2019(1) FY2023 FY2024 1,016,900 774,261 651,107 593,578 530,463 721,877 2,843,892 2,204,088 1,875,977 712,932 1,149,222 1,547,063 9.4 6.6 5.4 4.3(3) 3.8(3) 4.3 707,690 487,648 398,662 303,090 268,656 315,940 1 2 2 7 1 4,246,645 3,217,778 2,539,677 1,030,030 1,416,735 1,883,604 4 5 6 9 3 13.1 13.1 16.6 9.8(3) 13.2(3) 16.2 Notes:- (1) MYEG had on 27 September 2019 changed its financial year (“FY”) end from 30 September to 31 December. The financial period (“FP”) 2019 was made up of results for 15 months covering the period from 1 October 2018 to 31 December 2019. (2) CAGR = Compounded Annual Growth Rate. (3) The comparative figures for net tangible assets per share and net earnings per share have been restated to reflect the adjustment arising from the bonus issue completed during FY2021. HIGHLIGHTS OF FINANCIAL PERFORMANCE
15 PERFORMANCE HIGHLIGHTS OF FINANCIAL PERFORMANCE (cont’d) GROUP INCOME STATEMENTS As at 30 June/30 Sep/31 Dec (RM’000) FP2019 (1) FP2020 FY2021 FY2022 FY2023 FY2024 Revenue 593,578 530,463 721,877 651,107 774,261 1,016,900 EBITDA (3) 355,237 312,593 377,890 475,636 592,700 842,672 Profit Before Tax (“PBT”) 306,939 268,958 320,683 404,367 489,405 719,234 Net Profit 302,156 267,194 316,705 400,402 486,839 708,050 Net Profit Attributable to Owners of the Company 303,090 268,656 315,940 398,662 487,648 707,690 Total Comprehensive Income 302,194 267,176 316,704 400,416 479,802 722,956 GROUP BALANCE SHEETS As at 30 June/30 Sep/31 Dec (RM’000) FP2019 (1) FP2020 FY2021 FY2022 FY2023 FY2024 Total Non-Current Assets 705,207 866,174 1,234,237 1,690,098 2,069,768 2,868,825 Total Current Assets 324,823 550,561 649,367 849,579 1,148,010 1,377,820 TOTAL ASSETS 1,030,030 1,416,735 1,883,604 2,539,677 3,217,778 4,246,645 Financed By: Share Capital 360,630 634,262 854,895 904,077 962,017 1,024,711 Treasury Shares (144,743) (61,652) (12,364) (36,642) (81,258) (81,643) Other Reserves 6,439 6,421 6,420 6,434 (671) 14,235 Retained Profits 490,606 570,191 698,112 1,002,108 1,324,000 1,886,589 Shareholders’ Equity 712,932 1,149,222 1,547,063 1,875,977 2,204,088 2,843,892 Minority Interests (4,937) (6,399) (5,614) (3,874) (3,802) (2,692) Total Equity 707,995 1,142,823 1,541,449 1,872,103 2,200,286 2,841,200 Total Non-Current Liabilities 138,738 125,124 101,397 331,017 731,028 1,166,085 Total Current Liabilities 183,297 148,788 240,758 336,467 286,464 239,360 TOTAL EQUITY AND LIABILITIES 1,030,030 1,416,735 1,883,604 2,539,677 3,217,778 4,246,645 Financial Analysis FP2019 (1) FP2020 FY2021 FY2022 FY2023 FY2024 Revenue Growth 5.6% (10.6%) (4) 36.1% (9.8%) 18.9% 31.3% PBT Growth 138.9% (12.4%) (4) 19.2% 26.1% 21.0% 47.0% Net Profit Growth 139.9% (11.6%) (4) 18.5% 26.4% 21.6% 45.4% EBITDA Margin 59.8% 59.0% 52.3% 73.1% 76.6% 82.9% PBT Margin 51.7% 50.7% 44.4% 62.1% 63.2% 70.7% Net Profit Margin 50.9% 50.6% 43.9% 61.5% 62.9% 69.6% Return on Average Equity 47.5% 29.0% 23.5% 23.4% 23.9% 28.1% Return on Average Total Assets 31.6% 22.0% 19.1% 18.0% 16.9% 19.0% Net Tangible Assets Per Share (Sen) 9.8 (3) 13.8 (3) 16.2 16.6 13.1 13.1 Net Earnings Per Share (Sen) 4.3 (3) 3.8 (3) 4.3 5.4 6.6 9.4 Notes:- (1) MYEG had on 27 September 2019 changed its financial year end from 30 September to 31 December. The FP2019 was made up of results for 15 months covering the period from 1 October 2018 to 31 December 2019. (2) EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization. (3) The comparative figures for net tangible assets per share and net earnings per share have been restated to reflect the adjustment arising from the bonus issue completed during FY2021. (4) Growth rate is negative due to FY2020 being a 12-month period against a 15-month period for FP2019.
16 STATEMENT OF VALUE ADDED DISTRIBUTION AND SIMPLIFIED FINANCIAL STATEMENT Property and Equipment RM356.69 million Trade Receivables RM350.45 million Cash and Cash Equivalents RM374.19 million Financing Receivables RM209.74 million Share Capital RM1.02 billion Retained Profits RM1.89 billion Borrowings RM1.26 billion Trade Payables RM29.56 million The Statement of Value Added Distribution and Simplified Financial Statement in IAR2024 provides readers a concise but comprehensive view of the Group’s financial performance beyond revenues and earnings, where MYEG also generates indirect economic values which benefit stakeholders: Simplified Statement of Total Assets FY2024 Total Liabilities and Shareholders' Equity FY2024 Statement of Value Added Distribution FY2024 (RM million) 1,200.00 1,016.90 270.71 Revenue Operating Expenses 1,000.00 800.00 600.00 400.00 200.00 0.00
17 PERFORMANCE 3/3/2025 3/2/2025 2/1/2025 2/12/2024 1/11/2024 2/9/2024 1/8/2024 1/7/2024 4/6/2024 2/5/2024 2/4/2025 1/4/2024 1/3/2024 2/2/2024 2/1/2024 1/10/2024 - 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 300,000,000 350,000,000 400,000,000 450,000,000 Close 3/3/2025 3/2/2025 2/1/2025 2/12/2024 1/11/2024 2/9/2024 1/8/2024 1/7/2024 4/6/2024 2/5/2024 2/4/2025 1/4/2024 1/3/2024 2/2/2024 2/1/2024 1/10/2024 0 0.2 0.4 0.6 0.8 1 1.2 SHARE PRICE PERFORMANCE AND INVESTOR RELATIONS Share Price Performance z High (13 June 2024): RM1.150 z Low (18 January 2024): RM0.755 z Closing Price as at 2 April 2025: RM0.930 z Closing Price as at 31 December 2024: RM0.960 z Market Capitalisation as at 2 April 2025: RM7,176 million z Market Capitalisation as at 31 December 2024: RM7,229 million
18 SHARE PRICE PERFORMANCE AND INVESTOR RELATIONS (cont’d) Engagement with investors and other related stakeholders remains pivotal for MYEG with the increased focus on investor relations (“IR”). This is reflected in its continued communication and engagement activities undertaken throughout FY2024. IR engagement comprises mandatory or stipulated communication and activities such as timely announcement of material information to regulators and ensuring equal and fair access to any material information. These include information pertaining to material changes or developments pertaining to the Group such BT SFOFXBM PG DPODFTTJPO DPOUSBDUT PS BDRVJTJUJPO PG OFX QSPKFDUT DPOUSBDUT CVTJOFTT FYQBOTJPO MPDBMMZ PS PWFSTFBT DIBOHF JO #PBSE PG %JSFDUPST BOE PS Senior Management and more. The Group also publishes quarterly announcements of financial results and the MYEG integrated annual report. All announcements as well as the integrated annual report are made available on the Bursa Malaysia site and also on the Investor Relations section of the Group’s website. This includes past announcements and financial information from previous financial years. )PXFWFS CFZPOE DPNQMJBODF SFRVJSFNFOUT *3 BMTP FODPNQBTTFT TUSBUFHJD engagement with shareholders as a regular basis through briefing with research IPVTFT JOWFTUPS BOBMZTUT NFEJB SFMBUJPOT QBSUJDJQBUJPO JO SPBETIPXT JOEVTUSZ engagements and more. 5IF PCKFDUJWF PG TVDI FOHBHFNFOUT XIJDI BSF IFME UISPVHIPVU ': JT GPS MYEG to: r $POWFZ SFMFWBOU JOGPSNBUJPO UP TUBLFIPMEFST BCPVU UIF (SPVQ T PQFSBUJPOT JUT àOBODJBM BOE CVTJOFTT QFSGPSNBODF JUT SJTLT BOE PQQPSUVOJUJFT BOE r 1SPWJEF BO PVUMPPL BOE QSPTQFDUT PWFS UIF TIPSU NFEJVN BOE MPOH UFSN QFSTQFDUJWF UPXBSET EFWFMPQJOH B NPSF TUSBUFHJD BOE DPNQMFUF QFSTQFDUJWF of the Group’s business trajectory. A key highlight on the investment calendar is the Group’s annual general meeting (“AGM”). *O UIF QSFWJPVT "(. IFME JO SFTQFDU PG ': UIF $IBJSNBO PG UIF "(. XIP was the Chairman of the Board was elected by the floor and she proceeded to encourage shareholders to seek clarification and ask questions of all matters raised during the AGM. Opportunities were provided to shareholders to raise queries and both the Board of Directors and Senior Management personnel were in attendance to respond to all pertinent questions raised. Attendees were also provided JOGPSNBUJPO QBDLT UIBU EFUBJMFE UIF "(. BHFOEB BOE QSPQPTFE SFTPMVUJPOT BOE TVQQPSUJOH JOGPSNBUJPO TVDI BT DPSQPSBUF QSFTFOUBUJPOT àOBODJBM JOGPSNBUJPO BOE more. The Group maintains a dedicated e-mail for investors and shareholders to request for pertinent information about company affairs. Queries that were sent through this channel were addressed in a timely manner while at the same time giving due consideration to the Group’s responsibility as a listed corporation to ensure no material information is disclosed on a selective basis. Investor Relations Contact Feedback or queries can be channelled to our Investor Relations unit at (Tel) +603 - 7664 8000 or via e-mail to investors@myeg.com.my. We always welcome open dialogue with the investment community. AGM HELD ON 25 JUNE 2024 Q&A SESSION WITH SHAREHOLDERS INVESTOR BRIEFINGS
19 PERFORMANCE MANAGEMENT DISCUSSION AND ANALYSIS REVIEWING THE MACRO-OPERATING ENVIRONMENT 2024 was a year that saw businesses worldwide having to contend with pockets of elevated inflation in many FDPOPNJFT DPODFSOT PWFS USBEF QSPUFDUJPOJTN BOE FDPOPNJD QPMJDZ VODFSUBJOUJFT PXJOH UP QPMJUJDBM DIBOHFT JO TPNF regions and geopolitical tensions amidst prolonged conflict in Ukraine and in the Middle East. "NJETU UIFTF DPOEJUJPOT .BMBZTJB T FDPOPNZ TIPXFE SFTJMJFODF XJUI PWFSBMM (%1 HSPXUI GPS DPNJOH JO BU driven by stronger household spending as well as a rebound in exports. Inflation moderated at 1.8% while net exports GPS UIF ZFBS HSFX XJUI UPUBM FYQPSUT PG HPPET BOE TFSWJDFT SJTJOH 5IF VOFNQMPZNFOU SBUF SFNBJOFE MPX BU 3.2% by the end of 2024. MYEG IN FY2024 The positive Malaysian economic performance in FY2024 set the stage for the country to advance further in its USBOTGPSNBUJPO JOUP B MFBEJOH EJHJUBM FDPOPNZ JO UVSO QSPWJEJOH UIF DPOEVDJWF CBDLESPQ OFFEFE GPS .:&( UP DPOUJOVF investing in and bringing to the market its suite of innovative digital e-Government and commercial services. FY2024 brought with it a fair share of headwinds that the business community had to navigate strategically. While macroeconomic factors such as global supply chain issues and a tighter labour market may have dampened business PQQPSUVOJUJFT JO DFSUBJO BSFBT PO UIF XIPMF DPOEJUJPOT BDSPTT àOBODJBM NBSLFUT XFSF HFOFSBMMZ QPTJUJWF QBSUJDVMBSMZ within the blockchain and digital assets space. This proved favourable for MYEG as the Group pressed on undeterred in realising its intentions to be a global pioneer and leader in unlocking the transformative power of Web3 technology. )BWJOH SFTPMVUFMZ MBJE UIF GPVOEBUJPO GPS JUT 8FC BTQJSBUJPOT JO QSFWJPVT ZFBST UIF (SPVQ TBX UIFTF POHPJOH FGGPSUT CFHJO UP DPNF UP GSVJUJPO JO ': XJUI UIF SPMM PVU PG B OVNCFS PG SFBM XPSME EFDFOUSBMJTFE BQQMJDBUJPOT NBOZ PG XIJDI BSF UIF àSTU PG UIFJS LJOE PO B HMPCBM TDBMF BOE FYDMVTJWF UP ;FUSJY UIF -BZFS QVCMJD CMPDLDIBJO QMBUGPSN developed by MYEG. 0G SFDFOU OPUF UIF DMPTF FOHBHFNFOUT GPTUFSFE BOE TVTUBJOFE XJUI HPWFSONFOUT BOE SFMBUFE BHFODJFT JO QBSUJDVMBS UIPTF PG .BMBZTJB BOE $IJOB SFTVMUFE JO UIF TVDDFTTGVM MBVODI EVSJOH UIF ZFBS PG B NBKPS TFSWJDF PO ;FUSJY LOPXO BT ;5SBEF ;5SBEF XIJDI IBT CFFO MJWF TJODF UIF FOE PG +VOF GPMMPXJOH UIF BDUJWBUJPO PG DPOOFDUJWJUZ UP ("$$ T 4JOHMF 8JOEPX 1MBUGPSN JT B DSPTT CPSEFS USBEF GBDJMJUBUJPO TFSWJDF CFUXFFO .BMBZTJB BOE $IJOB UIBU QSPWJEFT WFSJàDBUJPO BOE FYDIBOHF PG EJHJUJTFE USBEF EPDVNFOUT FOBCMJOH VTFST UP FOKPZ HSFFO MBOF BDDFTT GPS GBTUFS USBEF QSPDFTTJOH BOE DMFBSBODF .FBOXIJMF UIF (SPVQ T QBSUOFSTIJQ XJUI .*.04 #FSIBE .BMBZTJB T OBUJPOBM "QQMJFE 3FTFBSDI BOE %FWFMPQNFOU $FOUSF BMTP ZJFMEFE TJHOJàDBOU PVUDPNFT JO ': QBSUJDVMBSMZ SFMBUJOH UP UIF development and implementation of digital ID credential applications as well as the Malaysia Blockchain Infrastructure (“MBI”). "U UIF DPOTVNFS MFWFM UIF HFOFSBMMZ DPOTUSVDUJWF FDPOPNJD MBOETDBQF JO ': BMTP TVTUBJOFE IFBMUIZ TQFOEJOH USFOET XJUI UIF IBCJU PG USBOTBDUJOH POMJOF UIBOLT UP JUT DPOWFOJFODF BOE BDDFTTJCJMJUZ CFDPNJOH FWFS NPSF QSFWBMFOU JO TPDJFUZ *O UIJT SFTQFDU SJTJOH VTFS DPOTDJPVTOFTT BCPVU POMJOF TFDVSJUZ BOE TBGFUZ CPEFT XFMM GPS DPOUJOVFE HSPXUI JO UIF NBTT BEPQUJPO PG 8FC UFDIOPMPHZ XJEFMZ SFDPHOJTFE CZ FYQFSUT BOE SFOPXOFE JOUFSOBUJPOBM PSHBOJTBUJPOT GPS its superior capability to ensure greater security and privacy protection compared with existing conventional protocols. This is where MYEG’s first-mover advantage and distinct capability in establishing a vibrant ecosystem have been instrumental. The Group’s position as the preferred platform in powering innovations and transactions in the region VOEFSQJOOFE DPOTJTUFOU CVTJOFTT NPNFOUVN UISPVHIPVU ': ESJWJOH JNQSPWFE àOBODJBM QFSGPSNBODF *O BEEJUJPO significant steps forward were made during the year in expanding MYEG’s footprint in the technology space at IPNF BOE HMPCBMMZ OPU MFBTU UISPVHI JNQPSUBOU DPMMBCPSBUJPOT UIBU IBWF VOMPDLFE OFX PQQPSUVOJUJFT GPS UIF (SPVQ 5IFTF JODMVEF B TUSBUFHJD QBSUOFSTIJQ XJUI )FJUFDI 1BEV #FSIBE XIJDI IBT HPOF PO UP XJO NBKPS QSPKFDUT GSPN UIF HPWFSONFOU JO BOE UIF DPNNFODFNFOU PG BO BMMJBODF XJUI UIF 8PSME /FUXPSL PO B XJEF SBOHF PG JOJUJBUJWFT including bringing its proof-of-personhood verification to Malaysia. #FJOH B àSTU NPWFS BMTP NFBOT IBWJOH B àOHFS PO UIF QVMTF PG GVUVSF GPSXBSE UFDIOPMPHJDBM JOOPWBUJPO XIJDI JT XIZ MYEG has remained focused on harnessing the potent innovations in artificial intelligence (“AI”) and blockchain to catalyse productivity and efficiency gains besides enhancing data security and privacy in the region’s economies.
20 MANAGEMENT DISCUSSION AND ANALYSIS (cont’d) 8JUI UIF FNFSHJOH TFHNFOUT PG "* BOE CMPDLDIBJO FWPMWJOH BU WBSZJOH EFHSFFT BDSPTT EJGGFSFOU NBSLFUT BOE DPVOUSJFT UIF (SPVQ DPHOJTBOU PG UIF OFFE GPS UIF SFHVMBUPSZ FOWJSPONFOU UP LFFQ QBDF XJUI SBQJE UFDIOPMPHJDBM BEWBODFT continued diligently engaging authorities throughout FY2024 to ensure services deployed are fully in compliance with prevailing regulations. &WFO BT UIF 8FC CVTJOFTT BDDFMFSBUFE JO ': .:&( T MPOH SVOOJOH .BMBZTJBO F HPWFSONFOU TFSWJDFT DPOUJOVFE UP QFSGPSN XFMM NBJOUBJOJOH UIFJS TUBOEJOH BT B TPMJE SFWFOVF DPOUSJCVUPS UP UIF (SPVQ 5IF SFDPSE àOBODJBM performance delivered for FY2024 is testament to the Group’s commitment to pursuing the ongoing evolution of its business to one that is at the forefront of leveraging Web3 technology to enable the provision of cutting-edge UFDIOPMPHJFT UP BMM TUBLFIPMEFST m UIF HPWFSONFOU CVTJOFTTFT BOE JOEJWJEVBMT BMJLF MYEG’s expertise in deploying real-world Web3 use cases along with its decades-long track record in delivering digitalised critical Government services undoubtedly positions the Group as a leader and pioneer in its space. Through DPOTUBOU JOOPWBUJPO BOE B DPNNJUNFOU UP FYDFMMFODF USBOTQBSFODZ BOE FGàDJFODZ .:&( SFNBJOT XFMM QPTJUJPOFE UP maintain its competitive edge and continue driving the future of digital governance in the region. More details on MYEG’s FY2024 business and operational highlights can be found in the Highlights and Achievements section of this Management Discussion and Analysis. FINANCIAL PERFORMANCE *O ': .:&( SFDPSEFE UPUBM SFWFOVF PG 3. CJMMJPO DPNQBSFE UP 3. NJMMJPO JO UIF QSFWJPVT àOBODJBM ZFBS XIJMF QSPàU BGUFS UBY iPATu SFBDIFE BO BMM UJNF IJHI PG 3. NJMMJPO B JODSFBTF GSPN UIF QSFWJPVT year (FY2023: RM486.84 million). The growth was primarily attributable to Web3 services comprising service fees derived from applications including ;5SBEF ;*% BOE %JHJUBM *% SFHJTUSBUJPOT BOE USBOTBDUJPOT BT XFMM BT QSPDFFET GSPN UIF TBMF PG ;FUSJY UPLFOT "T JO UIF QSFWJPVT ZFBS DPOUSJCVUJPOT GSPN FYJTUJOH DPODFTTJPO BOE DPNNFSDJBM TFSWJDFT BMTP BDDPVOUFE GPS B TJHOJàDBOU QPSUJPO of revenue and PAT. MYEG continued to be at the forefront of cultivating and reaping the benefits of adopting cutting-edge digital innovations like blockchain. The strong positive trend in financial performance demonstrates the potential of Zetrix UP ESJWF UIF (SPVQ T OFYU QIBTF PG HSPXUI BEEJOH UP UIF POHPJOH DPOUSJCVUJPO GSPN UIF MPOH SVOOJOH F HPWFSONFOU services. SUKUK WAKALAH PROGRAMME .:&( SBJTFE BO BEEJUJPOBM 3. NJMMJPO JO ': CSJOHJOH UIF UPUBM SBJTFE UISPVHI UIF 4VLVL 8BLBMBI 1SPHSBNNF to RM1.0 billion. MARC Ratings has affirmed its rating of AA-IS with a stable outlook for the Sukuk Wakalah Programme. Proceeds raised from the Sukuk Wakalah Programme shall be utilised for foreign worker hostels and blockchain QSPKFDUT BT QFS UIF 4VTUBJOBCJMJUZ 'JOBODJOH 'SBNFXPSL DIVIDEND TO SHAREHOLDERS .:&( T #PBSE PG %JSFDUPST IBE EFDMBSFE PG B àOBM EJWJEFOE PG TFO QFS PSEJOBSZ TIBSF GPS ': m TFO which the shareholders had approved at the 23rd Annual General Meeting held on 25 June 2024. 5IF àOBM EJWJEFOE XIJDI BNPVOUFE UP 3. XBT QBJE PO 4FQUFNCFS 6OEFS UIF %JWJEFOE 3FJOWFTUNFOU 4DIFNF B UPUBM PG OFX PSEJOBSZ TIBSFT XFSF JTTVFE BU UIF QSJDF PG 3. QFS .:&( TIBSF XIJDI BNPVOUFE UP 3. OFU PG USBOTBDUJPO DPTU
21 PERFORMANCE MANAGEMENT DISCUSSION AND ANALYSIS (cont’d) On 20 August 2024, the Board of Directors declared a first interim single tier dividend of 0.25 sen per ordinary share (2023 – 0.25 sen) for FY2024, payable on 18 November 2024 to shareholders registered at the close of business on 22 October 2024. On 18 February 2025, the Board has proposed the declaration of a final dividend of 2.49 sen per ordinary share for FY2024 (FY2023: 1.68 sen) for the shareholders’ approval at the forthcoming AGM. The total dividend declared for FY2024 would thus amount to 2.74 sen per MYEG share (FY2023: 1.93 sen), representing a payout ratio of approximately 30%. CAPITAL AND OPERATIONAL EXPENDITURE As a digital service provider, the Group’s capital expenditure (“CAPEX”) naturally comprises mainly technology-related items, including the development of the blockchain platform and related applications, e-government services related modules and IT equipment. The Group places significant consideration towards finding optimal balance in managing its CAPEX. Toward this end, MYEG’s strategy remained focused on unlocking business growth and expansion, while also staying cognisant of the importance of rewarding shareholders and conserving adequate capital to meet current needs. Efforts to manage and ensure efficiency of operational expenditure (“OPEX”) were also prioritised. In FY2024, MYEG recorded a CAPEX of RM760.36 million, 60.37% higher year-on-year (FY2023: RM474.12 million), while its OPEX stood at RM270.71 million, 8.01% higher year-on-year (FY2023: RM250.64 million). The CAPEX and OPEX recorded in FY2024 were for the following areas: CAPEX OPEX r Development of technology including blockchain platform and related applications; r E-Government services related modules; r Office and IT equipment; and r Foreign workers hostels. r Personnel-related expenses and OPEX; r Advertising and promotion expenses; r Maintenance and OPEX for MYEG’s building (“Zetrix Tower”); and r Depreciation and amortisation charges. The Group will continue to closely monitor these important levers to ensure prudence in management of expenses in upcoming financial years. ASSETS AND LIABILITIES, CASH AND BANK BORROWINGS The Group’s balance sheet remained strong, with total cash and cash equivalents as at 31 December 2024 improving by 4.45 times to RM374.19 million compared with the previous year’s position (FY2023: RM84.14 million). This has continued to allow the Group’s access to potential investment opportunities and better navigate market challenges. Total borrowings from term loans, Islamic Medium-Term Notes (“Islamic MTN”) and revolving credits were at RM1.26 billion for FY2024 (FY2023: RM846.66 million). MYEG maintains a manageable net gearing ratio of 0.32 times in FY2024 (FY2023: 0.36 times). On total assets, both current and non-current assets contributed to an increase in MYEG’s total asset position at RM4.25 billion, 31.99% higher year-on-year (FY2023: RM3.22 billion). Property, plant and equipment was recorded at RM356.69 million (FY2023: RM304.44 million), while trade receivables increased by 2.76% to RM350.45 million (FY2023: RM341.03 million). Development costs registered an increase to RM1.85 billion (FY2023: RM1.21 billion). MYEG remains on track in pursuing its growth and expansion objectives, particularly in the Web3 space, supported by a strong balance sheet, which enables the Group to access additional capital, should the need arise.
22 HIGHLIGHTS AND ACHIEVEMENTS .:&( OPUDIFE B OVNCFS PG OPUFXPSUIZ BDIJFWFNFOUT JO ': BOE EFMJWFSFE BOPUIFS SFDPSE àOBODJBM QFSGPSNBODF with the increase principally fuelled by growth in demand for Web3 products and services. 8IJMF CMPDLDIBJO JT PGUFO BTTPDJBUFE QBSUJDVMBSMZ JO UIF 8FTUFSO XPSME XJUI EFDFOUSBMJTFE àOBODF BOE EJHJUBM BTTFUT USBEJOH .:&( T 8FC JOJUJBUJWFT HP XFMM CFZPOE TVDI DPOàOFT BOE BSF JOTUFBE GPDVTFE PO FOBCMJOH SFBM XPSME VTF DBTFT FTQFDJBMMZ JO BQQMZJOH UIF BEWBOUBHFT PG CMPDLDIBJO UFDIOPMPHZ UP EJHJUBMJTF DSPTT CPSEFS HPWFSONFOU processes. It is precisely for this reason that the Group has sought to work closely with the Chinese government given China’s prominence as the world leader in the application of blockchain in government services. MYEG’s long track record as an innovator and its ability to forge forward-thinking collaborations with other renowned JOEVTUSZ MFBEFST JODMVEJOH UIF MJLFT PG .*.04 $IJOB "DBEFNZ PG *OGPSNBUJPO BOE $PNNVOJDBUJPOT 5FDIOPMPHZ BOE UIF 8PSME /FUXPSL QVUT UIF (SPVQ JO QPMF QPTJUJPO UP DPOUJOVF CSJOHJOH UP UIF NBSLFU QJPOFFSJOH EFDFOUSBMJTFE BQQMJDBUJPOT UIVT FTUBCMJTIJOH ;FUSJY BT UIF SFHJPO T QSFNJFS BOE QSFGFSSFE 8FC FDPTZTUFN A number of key applications were rolled out on the Group’s proprietary Zetrix blockchain over the course of 2024. These include: r ;*% B EJHJUBM DSFEFOUJBMT TFSWJDF UIBU FOBCMFT UIF EJHJUBMJTBUJPO PG ESJWFST MJDFODFT BT XFMM BT OBUJPOBM *%T PG $IJOFTF OBUJPOBMT PO UIF CMPDLDIBJO UP FOBCMF GSBVE QSPPG UBNQFS QSPPG BOE SFBM UJNF WFSJàDBUJPO PG TVDI DSFEFOUJBMT CZ BOZ WFSJàFS PVUTJEF $IJOB BOE r ;5SBEF B àSTU PG JUT LJOE QMBUGPSN UIBU GBDJMJUBUFT UIF FYQPSU PG HPPET UP $IJOB CZ QSPWJEJOH NBOVGBDUVSFST BOE USBEFST XJUI HSFFO MBOF BDDFTT *U PQFSBUFT CZ BMMPXJOH VTFST UP VQMPBE UIFJS DFSUJàDBUFT PG PSJHJO UIVT streamlining the export process by ensuring the necessary documentation is readily available for customs authorities in China. "NPOH PUIFS 8FC JOJUJBUJWFT .:&( XBT BMTP QBSU PG B QBSUOFSTIJQ GPSNFE XJUI UIF 8PSME /FUXPSL 5PPMT GPS )VNBOJUZ BOE .*.04 XJUI UIF NVMUJ QBSUZ DPMMBCPSBUJPO VTIFSJOH JO BNPOH PUIFS UIJOHT UIF EFQMPZNFOU PG JSJT scanning orbs for the verification of users across Malaysia. The better financial results registered in FY2024 reflected the maiden contribution from the aforementioned new TFSWJDFT QPJOUJOH UP UIF QSPTQFDUT PG NPSF VQTJEF BIFBE BT UIF BEPQUJPO PG 8FC TFSWJDFT DPOUJOVFT UP FYQBOE 8FC TFSWJDFT BTJEF UIF (SPVQ T MPOH SVOOJOH F HPWFSONFOU TFSWJDFT SFNBJOFE SPCVTU VOEFSQJOOFE CZ TUFBEZ EFNBOE GPS DPODFTTJPO BOE DPNNFSDJBM PGGFSJOHT QBSUJDVMBSMZ JO SFMBUJPO UP TFSWJDFT GPS UIF *NNJHSBUJPO %FQBSUNFOU and the Road Transport Department (“JPJ”). The scope of JPJ-related services expanded during the year with the DPNNFODFNFOU PG UIF "VUPNBUFE 5SBJOJOH BOE %SJWJOH 5FTU 4ZTUFN PS F 5FTUJOH QSPHSFTTJWFMZ GPS UIF BTTFTTNFOU PG driving test candidates. MYEG is pleased to be working alongside these major departments in accordance with the FYUFOTJPO PG TFSWJDFT TFDVSFE JO FOTVSJOH VTFST DPOUJOVF UP FOKPZ VOJOUFSSVQUFE BDDFTT UP UIF PGGFSJOHT BU UIFJS fingertips. MYEG’s close collaboration with Government entities reflects the Group’s strong support for the Government’s ongoing digitalisation aspirations. Digitalisation not only enables greater user convenience but offers enhanced security CZ SFEVDJOH JOTUBODFT PG GSBVE #VJMEJOH PO UIF SFMBUJPOTIJQ XJUI UIF HPWFSONFOU UIBU IBT TQBOOFE EFDBEFT .:&( MPPLT GPSXBSE UP DPOUJOVJOH UP QMBZ BO JOUFHSBM QBSU JO BDDFMFSBUJOH UIF EJHJUBMJTBUJPO PG UIF DPVOUSZ T QVCMJD TFSWJDFT especially in light of the recent teaming agreement formed with Heitech Padu Berhad to execute major Government IT projects. ': BMTP TBX PUIFS OFX TFSWJDFT JOUSPEVDFE CZ UIF (SPVQ T POMJOF QMBUGPSN JODMVEJOH B TFMG DIFDL TFSWJDF GPS individual credit reports in partnership with Credit Bureau Malaysia Sdn. Bhd. (“CBMu BOE B #VZ /PX 1BZ -BUFS programme for automotive services in collaboration with Direct Lending Sdn. Bhd.. 5IF 1IJMJQQJOFT KPJOU WFOUVSF CVTJOFTT BMTP JNQSPWFE EVSJOH UIF ZFBS XJUI .:&( 1IJMJQQJOFT *OD EFMJWFSJOH B TUSPOHFS TFU PG àOBODJBM SFTVMUT PO UIF CBDL PG JODSFBTFE EFNBOE GPS F HPWFSONFOU TFSWJDFT FWFO BT NPSF NBKPS HPWFSONFOU departments and agencies were onboarded onto its platform. These include online payment services for the Social Security System of Philippines and National Home Mortgage Finance Corporation. MANAGEMENT DISCUSSION AND ANALYSIS (cont’d)
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