MY E.G. SERVICES BERHAD Registration No. 200001003034 (505639-K) 50 OPERATING ENVIRONMENT (CONT’D) EXTERNAL FACTOR DESCRIPTION IMPACT ON MYEG / BUSINESS MODEL IMPACTED CAPITALS RISKS OPPORTUNITIES POLITICAL / GOVERNMENTAL The present political environment remains fluid, with unanticipated changes in leadership as well as the possibility of snap elections. This impacts muchneeded decisive policy making to stimulate the economy and inject fresh impetus into the government’s digitalisation agenda. Uncertain public sector project flows, which affects all players in the tech sector. This necessitates greater focus on private sector related offerings and foreign markets. Political factors are beyond the Group’s control. However, the value of what we provide transcends the politics of the day and is meant to serve the citizens. Relationship / Social Legal Unstable market, political and economic conditions Non-renewal of contracts Loss of access to spectrum Lack of new business opportunities Political and regulatory pressure The present sociopolitical scenario has further expedited MYEG’s expansion into new markets and supported the proliferation of new products and solutions. This includes both in Malaysia as well as other operating markets. It also justifies the intensification of efforts to develop more commercial solutions to further reduce reliance on concession services. ECONOMIC The Malaysian economy faces a wide range of factors that are dampening its growth potential, including effects of the COVID-19 pandemic and global inflationary pressures Muted economic growth impacts consumer confidence and disposal incomes, which affects private consumption levels. The economy is beyond MYEG’s control, but as MYEG expands beyond Malaysia, macroeconomic factors such as currency issues, etc. could have an impact on overall Group performance. The impact is felt in the pricing of services, especially commercial services. Services must remain affordable to the masses and therefore potential for upside is limited. Increased innovation, research and development are required to drive cost efficiencies across business processes and the value chain. Financial Human Unstable market, political and economic conditions The present challenging economic conditions provides the launchpad for the development of new services. Secondly, consumers may be looking for cost savings and convenience, with many opting for services delivered through digital channels to save travel costs, time, etc. Present downturn also promotes overseas expansion across Southeast Asia and beyond.
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