Dagang NeXchange Berhad Annual Report 2025

STRATEGIC REVIEW • Portfolio and Asset Transition Risk The Group is repositioning its portfolio across its three core segments. This includes a shift towards higher-value semiconductor applications, a rebalancing of the Energy portfolio towards Malaysian upstream assets and expansion of recurring digital services in the IT segment. These changes introduce risks relating to execution, timing and delivery of expected economic outcomes. Mitigation measures include ongoing review of asset performance, disciplined capital allocation and alignment of resources with strategic priorities. Clear segment roles and focused execution improve the Group’s ability to manage these changes. • Cybersecurity and Data Risk Greater reliance on digital platforms and data-driven operations increases exposure to cybersecurity breaches, data privacy incidents and system integrity risks. These risks are most relevant in the IT segment, which operates mission-critical platforms for national trade facilitation and public sector systems. Mitigation measures include implementing cybersecurity frameworks, continuous system monitoring and compliance with data protection requirements. Investment in secure digital infrastructure improves system reliability and protection. • Workforce Capability and Talent Risk Execution of strategy and operational performance depend on the availability of skilled personnel and effective organisational capability. This is integral in specialised areas such as semiconductor manufacturing, energy production and services, and digital technology services. Mitigation measures include workforce planning, training and development programmes and improved organisational alignment to support execution and accountability. Continued attention to employee engagement and capability building supports long-term operational performance. DNeX INTEGRATED REPORT 2025 52 ABOUT THIS REPORT LEADERSHIP VALUE CREATION @DNeX LEADERSHIP INSIGHTS OVERVIEW OF DAGANG NeXCHANGE BERHAD

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