Integrated Annual Report 2023 2 3 4 5 6 7 8 9 1 37 MD/CEO’S STATEMENT PILLAR 2 EXTRACT VALUE FROM CORE BUSINESSES GOAL Realise RM100 million in cost savings over a five-year period. RM81.8 million in total cost savings since 2021 The success we have achieved has shown the extent of our strategic and prudent management, as well as our ability to optimise operations while maintaining high-quality service delivery. These efforts in extracting value through cost savings are vital in our pursuit of scaling and enhancing the profitability of our core businesses. This includes organisational simplification, which aims to streamline our operations for greater efficiency and effectiveness. Besides continuing to identify cost efficiency opportunities across our operations through our LEAN programme, we also focused on optimising procurement processes and reducing Selling, General and Administrative (“SGA”) expenses. These initiatives are crucial in trimming unnecessary costs and enhancing our financial health. Furthermore, our digitalisation and automation initiatives have seen us generate greater cost savings. These technological initiatives serve as enablers, allowing us to refine our operational processes. By embracing digital tools and automating where possible, we have improved our resource allocation and service delivery. In 2022, we collaborated with HSBC Amanah Malaysia Bhd to launch Asia’s first Syariahcompliant Supplier Financing Programme (“SFP”), offering collateral-free financing to suppliers for better cash flow and reduced business costs. This initiative earned recognition at The Asset’s “Triple A” Islamic Finance Awards 2023. The company also supports small and medium enterprises (“SMEs”) and micro, small and medium enterprises (“MSMEs”) through the Strategic Vendor Management Programme, enhancing vendor relationships, improving pricing, delivery schedules and product or service quality. These efforts contributed to decreased costs without compromising the quality of our products and services. Additionally, we established a centralised treasury function that will pool excess funds to ensure efficient capital deployment at optimal cost. This effort helps ensure effective cash management across our operations to reduce external funding costs. Achievement to date:
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