Response Digital transformation is vital for safeguarding our business, enhancing efficiency through improved operational systems, automated processes and effective data and cyber risk management. Besides leveraging CLI's capabilities, CICT is strengthening employees’ digital literacy to augment cybersecurity management. In addition, we are proactively elevating operational efficiency through internal initiatives by the CapitaLand Innovation Fund, and through external initiatives such as those earmarked at the CSXC and the Jurong Lake District Innovation Challenge. Response CICT is prudent in managing its operating costs, adopting bulk procurement and locking in utility rates until end-2024. CICT has also progressively increased the service charge for most of the REIT's Singapore properties to cover rising costs. In addition, we maintain an agile capital management strategy, retaining a healthy balance sheet through diversified sources of funding. Majority of our borrowings are on fixed rate, and we maintain a well-spread debt expiry profile to minimise concentration risks. Keeping a close eye on monetary policy, inflation trends and interest rate developments, CICT remains adaptable and flexible in making disciplined investment decisions. Trend Digital adoption and innovation are accelerating rapidly in response to the evolving environment. • Commercialisation of emerging technology is accelerated to enhance automation, consumer experiences and cybersecurity in business and daily life. • Data usage and cybersecurity have become increasingly important for businesses and stakeholders. Trend Emerging from the pandemic, economies are faced with heightened uncertainty, marked by surging inflation and high interest rates which are affecting capital flows. • High inflation challenges costconscious businesses and consumers. Singapore's progressive wage model raises operating costs in sectors like retail, food services, cleaning, waste management and security. • Prolonged periods of high interest rates impact capital management, raise debt concerns and limit opportunities for inorganic growth. • With capital flowing to markets with resilient returns or opportunities, Singapore remains a relatively favourable economic safe haven. TECHNOLOGICAL DEVELOPMENT MACROECONOMIC ENVIRONMENT ANNUAL REPORT 2023 15 Overview Leadership Performance Framework Other Information
RkJQdWJsaXNoZXIy NTkwNzg=