OUR BUSINESS MATTERS IMPACTING VALUE CREATION (cont’d) COMPETITIVE MARKETSPACE Despite MYEG’s relatively leading market positioning, the Group still faces stiff and increasing competition from existing and new market entrants. The effect of competition is more pronounced for services where MYEG is presently not the market leader or newly launched services where there are established incumbents. Among these include MYEG’s online and in-store grocery shopping, BELI, its financing and hire purchase services and others. Risk and Opportunities The commercial success of products may be affected and product costs may increase as constant improvement and development efforts are required to maintain the appeal of services vis-a- vis competitors. However, for the most part, MYEG’s product offerings, despite facing stiff competition, retain commercial appeal and have proven to be successful. Most are expected to continue performing well notwithstanding changing marketplace conditions going forward. Business Strategies Continued market and product diversification (refer to Strategies to Sustain Value Creation Section). Material Capitals Strategic decisions that involve capital investments channeled into services over the short, medium and longterm are made based on internal criteria. Beyond revenues (derived from the said service) , the criteria consider the commercial appeal and overall value creation capability / potential of all products based on a set criterion that feeds into the determination of specific marketplace strategies as well as investments into product development, marketing, and research and development. CYBERSECURITY THREATS A significant portion of MYEG’s business model is highly dependent on the security of its digital infrastructure. While the Group’s present infrastructure and systems are robust with high data integrity, the risk of data theft, downed systems and other impacts require constant vigilance especially with more evolved and sophisticated cyberthreats continuing to emerge. Risk And Opportunities Hacking, phishing, malware and other cyber threats can impact service delivery resulting in downtime, hence affecting customer transactions. There would also be potential loss of brand trust and reputation as well as potential commercial losses. In addition, any breach of customer data could lead to loss of confidentiality or other issues, such as fraud, etc. However, MYEG continues to maintain its impeccable record for zero data breaches and its network and infrastructure remain resilient against cyberattacks. Business Strategies MYEG will continue to rely on its existing ICT systems and infrastructure, which has proven to be resilient against cyber attacks. The Group will also continue to upgrade its security systems and protocols. The deployment of the Group’s own Layer-1 blockchain platform Zetrix has also enhanced data privacy and security through the adoption of cryptography and decentralisation. Material Capitals MYEG will continue to rely on its existing ICT systems and infrastructure, which has proven to be resilient against cyber attacks. The Group will also continue to upgrade its security systems and protocols in tandem with new and emerging cyberthreats. 45
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