OUR BUSINESS AND STRATEGY MATTERS IMPACTING VALUE CREATION Talent Recruitment and Retention Global and Domestic Macroeconomic Conditions Evolving Technological / Digital Landscape Regulatory Environment & Changes in Government Policies Rising Social Concerns Increasing Carbon / Climate Change Focus REGULATORY ENVIRONMENT & CHANGES IN GOVERNMENT POLICIES A pro-digital government in Malaysia meant there was continuity in terms of the implementation of policies, projects and programmes, including ongoing government digitalisation efforts. Zetrix AI’s services have played a key role in bridging the digital divide and improving the delivery of Government services while reducing costs. However, any changes to the regulatory environment or changes in Government policies and laws may impact the Group’s concession business model and operations, especially with the global legal and regulatory environment. This is particularly true for AI and blockchain that is continuing to evolve, with varying degrees of acceptance and support in different markets and countries. RISK OPPORTUNITY While the Group is not significantly dependent on concession-based revenues (as the bulk of revenues are generated from commercial services), any changes i.e. non-renewal or delays in renewal of e-Government services due to governmental / political factors can impact the business model and financial value creation, as well as social value creation i.e. due to users of Government services being unable to access such services. Investments into technology, equipment and personnel to support existing services may be at risk due to any non-renewal. Any change in law and legislation by Governments may lead to Zetrix AI unintentionally not complying with local laws or having to remodel its services. In terms of litigation, any legal suit against the Group would have a branding and possibly financial impact as well. Changes in policies, while potentially leading to disruption, can also serve as the stimulus for the remodelling of existing services or the development of new solutions. 49
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