ANNUAL REPORT 2025 SUSTAINABILITY Sustainability Statement (Cont’d) 51 RESPONSIBLE SOURCING (CONT’D) OUR PROGRESS In FY2025, 43.6% of our total procurement spending was directed towards local suppliers — up from 33.6% the year before. This upward trend signals our effort to anchor our sourcing activities within Malaysia, promoting local business growth and reducing our carbon footprint. At the same time, we acknowledge the strategic role of foreign suppliers in providing specialised products, technologies and capabilities not readily available locally. Meanwhile, 85.6% of our total suppliers were local in FY2025. FY2023 FY2024 FY2025 Proportion of spending on local suppliers * 33.6% 43.6% Percentage of local suppliers * 87.0% 85.6% External Provider Assessment rating 75.4% 83.0% 80.0% * Data not tracked in respective year. ETHICAL BUSINESS PRACTICES WHY IS THIS IMPORTANT? At NexG, strong governance and ethical conduct are essential to how we operate and grow. In an industry shaped by rapid technological advancement, these principles help us stay grounded and make responsible decisions. Upholding integrity not only protects our reputation but also creates a culture of accountability and transparency — key factors in attracting talent, supporting a positive workplace and driving long-term value. By embedding ethical standards across our operations, we aim to foster a responsible, resilient organisation that stands up to scrutiny. OUR APPROACH NexG’s commitment to ethical business practices is driven from the top, with the Board providing strategic leadership and oversight. Supporting this oversight is the Sustainability Committee, established in FY2025 to enhance ESG governance across the Group. The committee acts as an advisory body, monitoring sustainability-related matters and recommending improvements to align with global standards and regulatory requirements. At the operational level, these efforts are reinforced by the Risk and Governance Unit (“RGU”) which monitors compliance and promotes ethical standards throughout the organisation. The RGU ensures that governance measures are effectively implemented and reviewed to mitigate risks. The Group’s ethical practices are guided by our corporate governance framework, which includes defined policies, procedures and guidelines. Our key governance policies include: * Available in English and Malay languages In FY2025, NexG strengthened its governance framework through the introduction of new policies, namely Conflict of Interest Policy and Code of Business Ethics for Vendor. Additionally, updates were made to our ABAC Policy and Whistleblowing Policy to enhance clarity, alongside a revision of our Enterprise Risk Management (“ERM”) Framework to ensure it reflects emerging risks and regulatory expectations. Furthermore, we ensure new employees are briefed on the ABAC Policy and the Whistleblowing Policy during induction. 1 7 2 8 6 12 5 11 4 10 3 9 Anti-Bribery and Anti-Corruption (“ABAC”) Policy* Whistleblowing Policy* Sustainability Policy Director’s Fit and Proper Policy Code of Conduct and Ethics for Directors Board Charter Corporate Disclosure Policy Shareholder Communication Policy External Auditors Assessment Policy Gender Diversity Policy Conflict of Interest Policy* (New) Code of Business Ethics for Vendor (New) Proportion of Spending on Local Suppliers Local Suppliers 43.6% 85.6%
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