Cyberjaya, 29 June 2020 – Dagang NeXchange Berhad (“DNeX”) expects a positive outlook ahead for its business as the Group ramps up efforts to participate in digitalisation transformation initiatives in the country and the region.
Speaking at the Group’s first fully virtual Annual General Meeting (“AGM”), Tan Sri Abd Rahman Mamat, Independent Non-Executive Chairman of DNeX said that despite many uncertainties globally arising from the economic slowdown due to factors such as the US-China trade war and Covid-19 pandemic, many opportunities have also emerged. With the world's attention now preparing for a “new normal” resulting from restricted mobility, more businesses and governments are embarking on digital transformation and increasing technology budgets.
Rising demand for digitalisation bodes well for DNeX as the Group can provide end-to-end innovative services that allows connection and collaboration among governments, businesses and consumers leveraging on such technologies as blockchain, artificial intelligence, big data analytics and radio frequency identification.
The Group remains committed to strengthen its market position as a dynamic and vibrant organisation in the rapidly changing technology sector. More specifically, having accumulated a strong track record in the Trade Facilitation sector, the Group has a competitive edge in making further headway in transforming digitalisation of trade processes.
Tan Sri Abd Rahman Mamat said, “There is tremendous potential for us to leverage on our in-house talent and established track record to develop innovative solutions and flexible market-leading capabilities that can respond quickly to meet the technology needs of today’s demands. In doing so, it is imperative we attract high calibre candidates with fresh ideas and deep industry experience to the Group’s Board and management team. The emphasis will be on building a performance-based culture that leads to value creation for all shareholders.”
Commenting on the impact of Covid-19 on the Group, Tan Sri Abd Rahman Mamat added, “We believe the impact of the Covid-19 pandemic to the Group is manageable as most of our projects are ongoing and these will carry DNeX through 2020. Some other projects are also expected to return to business as usual as the pandemic continues to show signs of easing in the country.”
At the AGM today, shareholders did not vote in favour for the re-election of Datuk Samsul Husin as Director of DNeX. Subsequently, he relinquishes his position as Executive Deputy Chairman of the Company. However, Datuk Samsul Husin is still the Executive Chairman of Dagang Net Technologies Sdn Bhd, a wholly owned subsidiary of DNeX.
Tan Sri Abd Rahman Mamat said, “The Board will take heed of the shareholders’ voice for change and transformation. On behalf of the Board of Directors at DNeX, we wish to thank Datuk Samsul Husin for his contributions on DNeX’s Board over the past six and half years.”
At a Special Board Meeting held after the AGM, DNeX’s Executive Director Encik Mohd Azhar Mohd Yusof has been appointed as the Acting Group Managing Director while the Board seeks suitable successor to drive the business in response to the changing business conditions and the need for fresh new ideas. Encik Mohd Azhar has over 20 years of experience in the field of capital markets and corporate finance where he was involved in fundraising exercise via equity and debt capital market, debt recovery, corporate restructuring and turn-around, valuation, financial modelling, financial due diligence and merger and acquisitions (“M&A”).
“To ensure the Group remains resilient to ride out the economic uncertainties ahead, there will be a critical focus on streamlining our business activities, focusing our efforts on projects related to our core competencies. This will drive operational efficiency, enabling us to improve our cost structure and enhance profitability. We will continue to adopt effective capital management discipline in managing our cash flows. It is now very crucial to focus on rebuilding a robust business with a strong income resiliency,” said Encik Mohd Azhar.
Encik Mohd Azhar previously held roles at Small Medium Enterprise Development Bank Malaysia Berhad (“SME Bank”), Felda Global Ventures Holdings Berhad, Bursa Malaysia Berhad, Petroliam Nasional Berhad (“PETRONAS”), Securities Commission Malaysia and Ernst & Young.