YY Group Holding Limited(YYGH) - 2024 Q4 - Annual Report

Construction Demand and Industry Trends - The total construction demand in Singapore for 2023 is projected to be between S$27 billion and S$32 billion, with the public sector expected to account for approximately 60% of this demand[444]. - The Building and Construction Authority (BCA) anticipates that total construction demand will range between S$25 billion and S$32 billion annually from 2024 to 2027, driven primarily by public sector projects[444]. - The cleaning services market is expected to grow due to increasing awareness of hygiene and the government's initiatives to improve cleaning standards[441]. Technology and Innovation in Services - The Innovating and Curating Better Automation and Technologies for Environmental Services (INCUBATE) Partnership Programme aims to transform the environmental services industry by promoting technology adoption and improving productivity[445]. - The adoption of outcome-based contracting (OBC) in cleaning services is expected to enhance service quality and drive technology adoption among service providers[439]. Employment and Talent Challenges - The number of freelancers in Singapore increased from 211,000 in 2019 to approximately 228,200 in 2020, indicating a growing pool of potential users for job-seeking platforms[455]. - 78% of employers in Singapore face challenges in filling job roles due to a lack of talent with relevant skill sets, highlighting the demand for staffing services[457]. - 75% of employers globally report difficulty in finding the right talent, indicating a significant talent shortage across various sectors[456]. Regulatory and Compliance Issues - The Environmental Public Health Amendment Bill proposes a revised cleaning business license framework, introducing three classes of licenses to enhance public health standards in the cleaning sector[450]. - As of December 31, 2024, the allowance for expected credit losses against trade receivables amounted to $62,425, compared to nil in 2023[478]. - The company identified material weaknesses in internal control over financial reporting, including a lack of qualified accounting staff and inadequate IT policies[481]. - The company is in the process of hiring additional finance and accounting staff to strengthen internal controls and compliance with IFRS and SEC requirements[482]. - The company has engaged external advisors to assist with the remediation of internal controls and financial accounting[483]. - The company qualifies as an "emerging growth company" with net revenues of less than$1.235 billion, allowing it to take advantage of reduced reporting requirements[485].