UEM Edgenta to gradually move away from concession-based biz


UEM Edgenta managing director/chief executive officer Syahrunizam Samsudin

KUALA LUMPUR: UEM Edgenta Bhd will gradually move away from its concession-based business model to move into commercial businesses that will bring longer-term returns and enable the firm to further compete in international markets.

Managing director and chief executive officer, Syahrunizam Samsudin said the company has embarked on a transformation strategy, namely the Edgenta of the Future 2025 (EoTF25), which features a fundamental shift towards a highly sustainable and future-proof business model.

EoTF25 focuses on three pillars -- diversifying markets, driving cost efficiency and disrupting the industry with new products and services.

"This diversification will involve both inorganic and organic growth strategies and partnerships, where we will push our boundaries beyond our shores.

"The goal is to grow into larger addressable markets in the Middle East, Europe and Southeast Asia," he said in UEM Edgenta Annual Report 2020.

Syahrunizam said the company aims to expand its healthcare support services in existing markets.

Currently, UEM Edgenta has a dominant market position in providing soft support services in Singapore, managing 11 of the 15 public hospitals in the republic; as well as in Taiwan, where it operates in more than 75 per cent of the country’s government public health facilities.

"We are exploring niche support services such as Facilities Engineering Maintenance Services and Biomedical Engineering Maintenance Services in Singapore, which are currently being provided to our concession-based Hospital Support Services businesses in Malaysia.

"At the same time, we aim to pursue an inorganic strategy to acquire an ME-15 license in Singapore, which would allow us to compete in larger government tenders, thus enable us to penetrate the Integrated Facilities Management sector," he noted.

Additionally, UEM Edgenta is also expanding its footprint in Singapore’s Smart Facilities Management business.

As for infrastructure solutions, the firm believes its thrust into Borneo (Sarawak, Sabah and Kalimantan) will pave the way for regional expansion, with Opus Consultants providing an existing beachhead via involvement in the Sarawak Coastal Road Network and Second Trunk Road Phase 2 Project.

"We believe we will be able to capitalise on upcoming opportunities especially in view of recent developments, including plans for better transportation and connectivity in Sarawak as well as Indonesia’s decision to relocate its capital city from Jakarta to Kalimantan.

"At the same time, we will continue to explore opportunities in Peninsular Malaysia’s highways and roads infrastructure segment," he added.

For the financial year 2021 (FY21), Syahrunizam said he is confident that UEM Edgenta is well-positioned to capitalise on post-pandemic recovery trends and emerge stronger going into the year.

Meanwhile, independent non-executive chairman, Tan Sri Dr Azmil Khalili Khalid said the asset management and infrastructure solutions firm has been keeping a close eye on emerging trends following the pandemic and identified new opportunities that are opening up.

"In FY20, due to the unprecedented impact of the COVID-19 pandemic to our operations for both our healthcare and infrastructure divisions and our financial performance, the management made a prudent decision to preserve our cashflow and withheld dividends for the year.

"However, we remain committed to returning to our dividend policy as a key priority in FY21," Azmil said, adding that the company will continue to enhance shareholder value strategies, which is expected to build a more sustainable future-proof business. - Bernama

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UEM Edgenta , Concession , EoTF25 , Covid-19

   

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