Integrated Annual Report 2023 2 3 4 5 6 7 8 9 1 47 SINGAPORE INDONESIA Trends • Escalation of operating costs, including both non-manpower and manpower related expenses (due to the new progressive wage model, increase in the qualifying salary and foreign worker levy of S-Pass holders, increase in supply chain costs and overall inflationary pressures in the post-pandemic environment) • Intense competition from rivals • Increased demand from client for service and quality at lower costs Response • Stringent optimisation of revenue and costs to minimise margin erosion, focusing on optimising non-manpower expenses through bulk purchasing, negotiations with suppliers on the best pricing and efficient inventory management • Strong negotiation with clients on contract sum adjustment to reimburse and co-share the cost increase in regulatory driven measures e.g. Progressive Wage Model • Optimised manpower by enhancing productivity through workforce training, redesign of job scope and staffing levels and implementing automation solutions to streamline processes • Expanded digital solution offerings to the market by strengthening UETrack™ product profile • Expanded hospitality market with the provision of room attendants and laundry attendant services to new clients • Regular interaction with long-term clients fosters an environment where constructive feedback can be received and acted upon, leading to continuous improvement Trends • Rising operating costs due to inflation and manpower scarcity • Increasingly stringent service standard demands Response • Strengthened local supply chain • Partnered with local entities to improve market access • Participated mainly as Tier 2 or 3 contractor We have a growing footprint in Singapore, offering a range of services to both public and private hospitals. This includes healthcare support solutions, IFM, hospitality sector services and digital solutions. TAIWAN Trends • Escalation of operating costs, including both non-manpower and manpower related expenses (due to the increase in minimum wage, National Health & Labour Insurances and Pension in Taiwan) • Higher demand from client for service and quality at lower costs Response • Provided high-quality service (well-trained staff and standard operating procedure (“SOP”), good customer relationship, improved technology system-UETrack™ and continuously introduced innovative mechanisation In Taiwan, we focus on hospital support services, including services such as portering, housekeeping and cleaning. Our housekeeping services is gradually growing its reach into other commercial sectors. Our initial venture into Indonesia involved maintenance services for toll roads. We have since broadened our scope in this region, taking on highway construction projects focusing on pavement works. OUR OPERATING ENVIRONMENT AND MARKET TRENDS
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