MSM INTERNATIONAL LIMITED ANNUAL

Letter to Shareholders

Letter to Shareholders (Cont’d) LOOkInG ahEaD (cOnT’D) While expansion by chain-store F&B operators has slowed amid post- pandemic normalisation, we are actively expanding our offerings to serve schools, factories, hospitals, and university canteens, where demand for kitchen design, outfitting, and installation services is rising. This reflects our strategic pivot from smaller, labour-intensive servicing jobs towards more scalable B2B engagements, allowing us to better deliver our full-suite solutions with greater efficiency. While the pace of mall expansion is likely to moderate in FY2026, we expect demand to come from tourism-driven retail and hospitality activities under the Visit Malaysia 2026 campaign. A continued societal emphasis on food underpins long-term demand for quality commercial kitchens and equipment, positioning us well to serve a broader customer base within the F&B ecosystem. Our cleanroom and laboratories segment has evolved into a key growth driver, in support of healthcare, pharmaceutical, and semiconductor industries seeking highly controlled environments for their operations. With a specialised workforce comprising local mechanical and electrical engineers and the ability and track record to deliver BSL-3 laboratory environments, we remain one of the few Malaysia companies equipped to meet rising demand for medical-grade cleanroom installations for medical research. With more multinational companies establishing advanced manufacturing and research & development facilities in Malaysia, we expect to see long-term demand from both private and public sectors. Additionally, with government and private hospitals expanding capacity and upgrading aging healthcare facilities to meet the increasing needs of patients, we foresee continuous growth in demand for various type of medical laboratories. In the year ahead, we will remain vigilant of challenges. Inflation, wage policy changes, and increasing competition from cross-border manufacturers like China, could exert pressure on our margins. We are proactively mitigating these through a disciplined approach to cost control, selective project bidding, and fostering long-term customer partnerships. aPPREcIaTIOn The results and progress of the past year reflect our people’s dedication and teamwork. I am grateful to all the staff and management of MSM for staying focused on delivering good work amid