GEORGE TOWN: Electrical and electronics manufacturer PENSONIC HOLDINGS BHD is exploring the potential of the Internet of Things (IoT) business, and has put in place a five-year business plan besides joining an IoT consortium.
According to Cisco Systems Inc, a US technology company, the IoT market could be worth up to US$14 trillion by 2022.
IoT refers to the technology connecting everyday devices to the Internet.
Group chief executive officer Dixon Chew told StarBiz that it has become necessary for the company to explore this area because of the growth potential over the next five years. He said the IoT market was expected to grow on a compounded annual growth rate of about 15% per annum over the next five years.
“For Pensonic, we are now exploring the budget that would be needed to develop new range of consumer electronic products that could be connected to the internet and communicate with mobile devices.
“We are also studying the type of IoT products that would be required by the younger generation and the timing to launch them.
“We have not committed ourselves to a time frame for the IoT project. But we can safely say that we are committed to the project, which is now part of five-year business strategy,” he added.
In line with the company’s IoT business plan, Pensonic has jointly formed an IoT consortium with six other companies.
“The Malaysia IoT Consortium (MyIoTC) is looking into creating an IoT ecosystem so that it could better tap into the IoT business opportunities worldwide, leveraging on the members’ respective strengths and area of specialisation,” he said.
Besides the IoT plan, the company has not neglected its core business, with recently formed subsidiaries in Cambodia and Indonesia to expand the sales of its home appliances in the region.
“In Indonesia, we are partnering with our Indonesian distributor to tap into a ready network of points of sales. Our venture regionally is underpinned by a 4.8% economic growth in the first quarter of 2017.
“Indonesia saw its retail sales grow by 4.7% year on year in the same quarter. Notwithstanding the still weak consumer sentiment across the region, we are confident that it would bounce back together with the economic growth and we want to be ready to capture the market,” said Pensonic executive chairman Datuk Seri Chew Weng Khak.
On the local front, Weng Khak said the company has been granted nationwide MYTV set-top box (decoder) distributorship in anticipation of Malaysian television broadcasting going digital in 2018.
“The decoders would be a required item to receive television signals for continued access to Free-to-Air TV channels.
“The management is of the view that this distributorship would contribute to the group’s revenue in the short to medium term,” Weng Khak added. Pensonic will recommend a first and final dividend of two sen per ordinary share for the 2017 financial year at its AGM to be held today.
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