Integrated Annual Report 2023 2 3 4 5 6 7 8 9 1 121 WHAT IS OUR APPROACH? ECONOMIC DEVELOPMENT WHAT VALUE WAS CREATED IN 2023 WHY IT MATTERS? At UEM Edgenta, we are dedicated to driving economic value through our existing business activities and expanding into new markets to foster economic and social growth. We place importance in sustainable economic development, balancing growth with environmental and social responsibility. Our commitment extends to fostering shared prosperity and contributing to societal advancement. By supporting the growth of our customers, we strengthen partnerships and promote mutual success, while also contributing to broader economic growth initiatives. Local Hiring and Remuneration We understand the significance of local employment in improving the economic prosperity of the communities where we operate. By primarily recruiting from local talent pools, we actively engage with the community and help develop local skill sets. This ensures that the economic advantages of our operations directly benefit the communities we serve. Additionally, this approach aligns with governmental commitments regarding minimum and/or progressive wage requirements. Market Expansion Through strategic market expansion, we grow our business footprint and fuel economic dynamism in both new and existing markets. This expansion creates job opportunities, stimulates local economies, and facilitates the exchange of expertise and innovation, contributing to overall economic growth and development. Value Distribution Our economic contribution extends beyond our immediate operations. Through the development of innovative products and services, we drive growth across industries, enriching the economic landscape. Additionally, our financial contributions, including taxes and Corporate Social Responsibility (“CSR”) initiatives, play a crucial role in distributing economic benefits, supporting essential public services, infrastructure development, and community programmes, thereby enhancing the overall socio-economic fabric of the regions we operate in. VALUE DISTRIBUTION In 2023, UEM Edgenta focused on economic value creation through strategic enhancements in facilities management, demonstrating commitment to the community and market growth. Key Initiatives for Value Creation and Distribution • Targeted Business Development and Product Diversification We collaborate closely with our partners to address emerging demands and challenges by harnessing our wide array of solutions and services as well as expanding our service offerings This year, we continued delivering on our strategy to obtain significant milestones such as higher revenues and the expansion of our international presence, largely driven by tech-enabled contract wins (43% new wins on tech-enabled contracts) and our commitment to operational excellence. This aligns with our strategic focus under EoTF2025 to drive our growth through innovation and has brought us closer to our ambition of becoming a Malaysian company with a global presence. • Market Diversification and Expansion into International Market Continues to expand our presence in the region, intensifying efforts into adjacent sectors such as the manufacturing and hospitality sectors SUSTAINABLE ECONOMIC GROWTH GROWING PRESENCE Throughout the year, we strengthened our footprint in the hospitality, commercial housekeeping, and industrial sectors, particularly in markets like Singapore and Taiwan. These endeavours positioned us to effectively support both governments and private enterprises in meeting the increased demand for healthcare services and supply chain logistics in the aftermath of the COVID-19 pandemic. Income earned in other markets contributes to the realisation of economic benefits when consolidated, allowing such values to accrue to the economic performance of Malaysia. Revenue generated from international markets (%) 2021 40% 2022 38% 2020 39% 2023 38%
RkJQdWJsaXNoZXIy NDgzMzc=