EXCEL FORCE MSC BERHAD 15 Management Discussion and Analysis (Cont’d) REVIEW OF OPERATIONS Even with the challenging business environment, we continue to invest in research and development for new applications, refresh our product line-up and enhance our solutions to meet evolving regulatory and business needs. Amongst the new solutions under development is next generation back-office suite and a new web-based trading platform. We have carefully explored, prototyped, and incorporated many designs ideas into attracting more Millennials and Gen Zs to consider stock investment as an alternative for long term wealth building. This is in line with Securities Commission Malaysia call for action in the capital market as only 7 per cent of investors in the stock market are under the age of 45 (Source: Star 7 August 2023). We are proud to launch our first advance charting application named Interactive X-Chart. X-Chart is designed by a seasoned technical chartist for technical charting community in Malaysia. We aim to capture a slice of the increasing use of technical analysis by investors to enter and exit the market. It is being progressively rolled out to our customers and users at large. The Group remains steadfast in investing in our people to strengthen our core capability and explore alternatives to create new income stream by leveraging on our domain knowledge and expertise. We are open to collaboration opportunities, with local and overseas partners, that will further solidify our leading position in Malaysia as an innovative technology solution provider. EForce continues to optimise and improve on resource utilisation, leverage on its deep domain and system knowledge to enhance efficiency in service delivery, troubleshooting and supporting our customers. The Group seeks to eliminate non-value adding activities in our application development process and improve time to market of new and enhanced applications. The business performance of the Group’s wholly owned subsidiary company, Insage MSC Sdn Bhd (“Insage”) continues to be positive. More public listed companies are outsourcing their investor relation webpages and corporate websites to Insage. The Group will continue to capitalize on these opportunities in Malaysia. Xifu Sdn Bhd (“Xifu”), a subsidiary of EForce providing a digital platform to connect investors on everything stock investment, rolled out our maiden mobile app in 1st half of 2022. We are implementing our strategic business plan, focus on growing our subscriber base and connecting with market influencers to create a robust and vibrant ecosystem for all stakeholders. The Group’s other subsidiary company, E2 Trade Sdn Bhd and Excel Force Solutions Sdn Bhd, are still dormant and not operational in FYE 2023. KEY BUSINESS RISK AND MITIGATION STRATEGIES Changes to government policies, banking regulations, securities regulations and stockbroking rules have an impact to EForce's business and operational performance. The Group continuously monitors trends in regulatory development, and through regular engagements with brokers, regulators and relevant governmental agencies, the Group can better anticipate risks and formulate responses to changes. The Group’s business operation is highly dependent on the stability, availability and reliability of our application solutions, data centre, network infrastructure and equipment. EForce mitigates the operational and system risk through pre-trading system health check, close monitoring of equipment resource use for preventive actions, regular back up procedures to ensure business continuity, and fine tune our applications for performance improvement. Keeping abreast and updated on technology advancement is critical to ensure timely and effective maintenance of our application solutions and provide quick response to customers when issues arise. EForce mitigate this risk by providing training and exposure to our employees on relevant technology development, and update on changes in the broking business landscape to ensure our solutions remain current. The growing threats of cyber-attack to steal data for ransom and deny genuine user access to systems requires timely and effective countermeasures. To mitigate this risk, the Group tracks the latest cybersecurity trends and development, and periodically review its system security settings to strengthen cyber-defences. The Group also works closely with customers security teams to periodically review our application and fix or eliminate any vulnerabilities found. The Group adopted a zero-tolerance stance on fraud, bribery and corruption in all forms. In 2020, an Anti-Bribery and AntiCorruption Framework (ABAC) was established, with policy, code of conduct and ethic clearly articulated and published on our website. The Framework laid out the process and procedures to deal with bribery and corruption risks and incorporated them into our existing operational workflows.
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