MATTERS IMPACTING VALUE CREATION (cont’d) GLOBAL AND DOMESTIC MACROECONOMIC CONDITIONS POST THE PANDEMIC (cont’d) Risk Challenging socio-economic conditions can affect consumer demand for services as declining spending power reduces the appetite for consumption, notably for commercial services. Larger purchases such as buying of cars and others may be deferred or put off altogether. Businesses may also see less activities and with that, reduced demand for various services. Opportunities During challenging economic conditions, businesses may place more urgency on enhancing cost efficiencies and this may benefit our blockchain solutions such as trade clearances and supply chain financing. Additionally, certain services may see increased take-up i.e. the selling of cars or the BELI online retail platform as consumers look to unlock assets or source for more affordable products and services. (Refer to Strategies to Sustain Value Creation for more information). Business Strategies Macro-economic conditions are beyond the Group’s control. However, MYEG’s strategic response is to continue its pursuit of product and market diversification to diversify its revenue streams and reduce its exposure to socioeconomic upheavals in any single geographic market. (refer to Strategies to Sustain Value Creation Section). Material Capitals The Group’s expansion and diversification plans are supported by an agile business model that is market agnostic (not dependent on specific domestic conditions and has a high replication factor). MYEG’s business model enables fast market entry and the quick rollout of products, which supports the Group’s ability to respond swiftly to changing socio-economic conditions and market demands. TALENT RECRUITMENT AND RETENTION Securing and retaining talent is a major issue in almost all economic sectors, both locally and abroad. The issue of lack of talent is pervasive across various industries ranging from manual labour- intensive industries such as plantations and manufacturing (notably shortage of foreign labour) right to the tech sector (shortage of high-tech, knowledge workers). Despite various industry and governmental efforts to increase the talent pool, the tech sector in Malaysia (in which MYEG operates in and is dependent for talent) continues to see widespread attrition due to a competitive talent market and an ongoing brain drain. Risk and Opportunities Talent, which is a key component of MYEG’s intellectual and human capital, is material to the Group in undertaking research and development activities in driving the development and delivery of solutions and providing ancillary services, such as over-the-counter and delivery / despatch services. The latter is significant in completing the service loop in ensuring a satisfying and seamless customer experience. The present demand and supply imbalance contributes to the significantly increasing talent acquisition and retention costs. Business Strategies Talent Development Strategies, including increased advertising and marketing communications, improvements in benefits, developing a people-focussed organisational culture and strengthening employee engagement and empowerment (refer to Strategies to Sustain Value Creation Section). Material Capitals MYEG’s approach to addressing its talent needs is supported by its strong branding and reputation, the commitment of the Board and Management to put people first and to develop a conducive workplace environment centred on high performance as well as equality and diversity. 44
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