At the governmental level, blockchain is being embraced by multiple ministries. In February 2023, the Ministry of Home Affairs and the Ministry of Human Resources announced their commitments to use blockchain technology to ensure security in the process of employing foreign workers, with this security system being more transparent regarding the management of foreign workers given its recommendation by the International Labour Organisation (“ILO”) as well. As the nation’s leading e-Government services provider and pioneer of blockchain adoption in Malaysia, MYEG looks forward to emerging opportunities to play a leading role in realising such national-level objectives. Internationally, the Group is also looking to deploy its blockchain application and infrastructure in the Philippines to expand the market for its blockchain business significantly moving forward. Speaking of the importance of MYEG’s immigration services, MYEG aims to further bolster its presence in the space of immigration service offerings by constantly working on solutions that are holistic and innovative. The increasing demand for foreign worker housing will also see MYEG continue expanding its accommodation capacity towards including more workers under the MyStay programme. MYEG is planning to commence with the development of additional dormitories in Selangor and Johor. In April 2023, MYEG’s sub-subsidiary MY EG Lodging Sdn Bhd secured a tender from Penang Development Corp to build a workers village and related facilities at Batu Kawan Industrial Park 3 in Seberang Perai Selatan, Penang. Additionally, in laying the groundwork for the future of the Group’s foreign worker housing business, MYEG will remain on the lookout for suitable land / property acquisition opportunities to build more foreign worker hostels in strategic locations in Malaysia. Regarding its road tax and driving license renewal services, MYEG wishes to assure all valued users, vehicle owners and drivers that they can continue renewing their road taxes and driving licenses as usual through the Group’s existing channels, with the added flexibility now for users to forgo receiving physical copies of their documents. This added flexibility comes in the form of the ability to display road taxes and driving licenses digitally, as recently announced by the Government. The Group remains committed to serving the Malaysian public by providing a secure and convenient online platform for vehicle owners and drivers to renew their road taxes and driving licenses respectively. The Group is also pleased to see the Government proactively pilot digital road tax and licences. This trend of digitalising important documents bodes well for the future of Zetrix, as blockchain’s unique features of immutability and verifiability of credentials would make Zetrix the ideal platform to accelerate such digitalisation. Meanwhile, BELI e-Mart’s continues to cater to customers’ growing needs for speedy convenience and accessibility via e-commerce. Plans in 2023 for BELI involve setting up a BELI retail outlet in Damansara Perdana, adding to its other established BELI retail outlets. Overall, where needed, MYEG will continue to see how best to expand BELI’s operational network of warehouses, retail stores and product suppliers / manufacturers. The Group’s stable financial position and strong internal cash flow generation will continue to support the aforementioned initiatives in Web3 development and foreign worker accommodation business, as well as other future plans going forward. When it comes to funding, the Group has demonstrated its ability to raise funds whenever needed in the past to support its growth objectives, MYEG is therefore confident that the Group will continue to have the support and confidence of investors in order to tap conventional financial markets when necessary, in addition to the Zetrix platform now also providing a new and innovative channel for fund raising through the sale of tokens. MYEG would also like to acknowledge that it stands ready and willing to collaborate with the Government of the day by continuing to play the Group’s role as a leading e-Government services provider to bring to market new services that can help stakeholders facilitate and realise their national objectives for the people. In tandem with relying on mutually-beneficial stakeholder relationships with key public and private entities, the Board continues to observe a cautiously optimistic outlook barring any unforeseen circumstances. Keeping in mind MYEG’s robust internal capacities that allow us to purposefully capitalise on current, new and potential services in order to be the best service provider for citizens, businesses and governments, the Group’s forward-thinking priorities in FY2023 will continue to strategically influence MYEG’s core business strengths towards treading in the direction of positive, consistent growth in domestic and international environments. MANAGEMENT DISCUSSION AND ANALYSIS (cont’d) 28
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