GLOBAL GEOPOLITICAL STABILITY Description & Implication on Value Creation The Russia-Ukraine war, trade tensions between the United States of America (“USA”) and China, and strained relations between China and Taiwan have contributed to an uptick in inflation. Consequently, we have been impacted by a slowdown in economic growth and investment, disruptions in our supply chains and hindrances in accessing crucial raw materials and energy resources. Opportunities • Taking advantage of the relocation of manufacturers to ASEAN and Malaysia in response to the USA-China trade war • Capitalising on Malaysia’s relative geopolitical stability to build our presence in an increasingly fractured geoeconomic environment Risk Impact • Investors/partnerships might hesitate to invest in company assets and technology. • Company business will be affected significantly due to the supply chain disruption • Uptrend cost pressure due to hight inflation in UK and higher level of O&G activities is still a concern Our Response & Mitigating Actions • Reviewing and adjusting our strategies and operational frameworks • Collaborating closely with expert consultants to mitigate global geopolitical stability risks and minimise impacts • Conducting ongoing evaluations and updates on global geopolitical stability risks and their effects on our operations • Diversifying our supply chains to decrease dependence on individual suppliers or markets wherever feasible Increased Decreased Unchange Capitals Impacted Stakeholders Material Matters Strategy M9 M10 M12 IMPACTING Risk Trend Risk Trend KEY RISKS AND MITIGATION Management Discussion and Analysis – Strategic Review DAGANG NeXCHANGE BERHAD 62
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