to address these risks adequately can undermine TNB’s competitiveness and financial stability. 4. Unfavourable Electricity Supply Industry (ESI) regulatory implementation and outcome Globally, the electricity supply industry is highly regulated. Government regulations and policies control various aspects, including approving generation capacity and mix, setting limits for investment and operation costs of electricity networks, and determining electricity prices. Uncertainty surrounding future regulations may hinder long-term planning and investment decisions whilst non-compliance with regulations can result in penalties and reputational damage. Inability to shape and manage the outcome of these regulation and policies governing the Malaysian ESI would be key impediment impacting TNB ability to deliver its business aspiration. 5. Regulatory Uncertainty Due to the nature of our business, we are susceptible to the decisions by regulatory stakeholders at the federal,state and international levels. Business operations may be delayed or encumbered due to measures and decisions in relation to investment and divestment, use of natural resources and right-of-way. Market 6. Unable to be competitive in non-regulated business (international & domestic) Growing TNB’s non-regulated business is a key strategy of TNB’s future growth plans. Inability to be competitive would result in difficulty to attract new customers and potential partners leading to stagnant or decline in market share and potential revenue. Inadequate competitiveness may result in lower operational efficiencies and higher costs that may hamper our ability to access capital while reducing the overall returns. Customer 7. Inability to remain as the electricity provider of choice by customers TNB supplies electricity to the entire nation, and we need to continue doing it reliably, safely and at a high quality to retain the trust and confidence of the people. At the same time, we need to continue growing TNB’s brand and reputation. Failure to do so may cause