PERFORMANCE During the year, Zetrix AI further reinforced its commitment to embedding sustainability within its strategic and operational framework by conducting its annual ESG Board Briefing for Board members and Senior Management. The session provided insights into emerging sustainability trends and developments, improvements on current sustainability reporting and equipping the leadership with a forward-looking perspective on the evolving sustainability landscape. Complementing this, the Group also held a Climate Risk Asssessment (“CRA”) workshop involving key management and operational personnel. The workshop facilitated the identification, discussion and disclosure of climate-related risks and opportunities material to Zetrix AI, in alignment with the NSRF reporting framework. These initiatives strengthened Zetrix AI’s governance oversight and organisational readiness in addressing climate-related challenges, fortifying the Group’s commitment to long-term value creation, resilience and alignment with global best practices. The Group also continues to publish its complete ESG KPIs and Targets on the corporate website for transparent insight into the Group’s future sustainability goals. Zetrix AI’s steadfast commitment to advancing its sustainability agenda has seen the Group continue to receive independent recognition from leading global benchmarks, notably from the FTSE4Good Bursa Malaysia Index with an overall score of 3.8 – which maintains Zetrix AI’s 4-star rating on the Index. More information on sustainability-related disclosures is provided in the FY2025 Sustainability Statement on page 64 of this Integrated Annual Report. ECONOMIC OUTLOOK Looking into 2026, Malaysia’s economy is expected to remain broadly resilient, albeit at a more moderate pace amid evolving global conditions. Bank Negara Malaysia (“BNM”) projects Malaysia’s economy to continue expanding by 4.0% to 5.0% in 2026. According to the central bank, this growth forecast will be underpinned by resilient domestic demand, sustained investment activity, and a strong rebound in electrical and electronics (E&E) exports, with further support from strong household consumption, steady tourism amid the Visit Malaysia 2026 campaign, and strong fundamentals cushioning the effects of geopolitical tensions and global trade risks. Meanwhile, over the longer-term, the 13th Malaysia Plan (“RMK-13”) sets out a medium-term development agenda focused on strengthening economic competitiveness through digital transformation, innovation and sustainability. Key priorities include accelerating the adoption of advanced technologies, such as AI, digital platforms and renewable energy, alongside greater emphasis on research, development, commercialisation and innovation to enhance domestic technological capabilities. Budget 2026 further reinforces these priorities, with continued support for digitalisation, automation, AI adoption and talent development, as well as initiatives to strengthen national digital infrastructure. These measures are complemented by broader national strategies, such as the National AI Action Plan 2030, which seeks to accelerate AI adoption across industries, develop local talent and commercialise innovative solutions, alongside intensified green economy initiatives under existing industrial and energy transition roadmaps. Collectively, these policy directions provide a supportive operating environment for Zetrix AI, aligning closely with the Group’s focus on AI, blockchain and digital innovation, while creating opportunities for technology deployment, talent development and sustainable growth within Malaysia’s evolving digital economy. Therefore, while external risks stemming from slower global trade and geopolitical uncertainties may still persist, Malaysia’s economic resilience driven by structural reforms and diversification of the export base, the accelerated implementation of the aforementioned investment projects, and the digitalisation and innovation-centric approach under RMK-13 is set to further enhance Malaysia’s overall resilience and adaptability, as well as ultimately benefit Zetrix AI’s investments in the AI, blockchain and digitalisation spaces. MANAGEMENT DISCUSSION AND ANALYSIS (cont’d) PEORFVOERVMIAEWNCE 29
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