Cyberjaya, 2 December 2021 – Dagang NeXchange Berhad (“DNeX”) is well-positioned for further growth as it benefits from the greater demand for semiconductor chips as well as the positive outlook for upstream oil production resulting from higher oil prices in a post-COVID 19 environment.
Speaking at DNeX’s virtual 51st Annual General Meeting (“AGM”), Tan Sri Syed Zainal Abidin Syed Mohamed Tahir, Group Managing Director of DNeX said, “Our strategic investments in SilTerra Malaysia Sdn Bhd (“SilTerra”) and Ping Petroleum Limited (“Ping”) have transformed us into a formidable industry player in the Technology and Energy segments. Our efforts to improve efficiencies, productivity and overall performance across our core businesses have resulted in a strong turnaround in our financial performance.”
“The majority of DNeX’s revenue streams is now contributed by global private enterprises as we diversify our revenue concentration beyond local public sector projects. Looking ahead, we are positive of our prospects as we continue to strengthen our competencies and competitiveness across the core business segments we operate in.”
He said transformation efforts in SilTerra are focused on increasing wafer shipment output, optimising capacity mix and leveraging on the current semiconductor shortage to increase average selling prices. The positive results arising from these initiatives are expected to grow even further as SilTerra embarks on higher margin emerging technologies.
To enhance business sustainability, DNeX is working towards securing more long-term contracts that provides steady contribution such as the recently clinched USD400 million multi-year contract from Chiphone Technology and the multi-year contract from ILI Technology Corp.
The Energy segment will also be positively impacted by the rise in oil prices which are now trading at levels above USD70 per barrel. Ping is exploring opportunities to unlock its untapped potential and maximise economic value from its asset portfolio. There is opportunity to further improve Ping’s production output by rejuvenating existing wells to monetise economically attractive reserves in the Anasuria Cluster and by accelerating development of greenfield portfolio, such as Avalon.
“Under the Information Technology (“IT”) segment, the mid-term target is to scale our operations and presence beyond borders to cover key markets in ASEAN. With over 30 years of experience in trade facilitation and credible business relationships with the government and government agencies, we will foray into business-to-business (“B2B”) and small medium enterprise (“SME”) segment through new innovative offerings to nurture a thriving trading community in Malaysia and the region,” said Tan Sri Syed Zainal Abidin Syed Mohamed Tahir.
An upward trend in the IT industry presents DNeX with robust growth opportunities, backed by the acceleration of digitalisation, automation and technology adoption across both the private and public sectors, he said.
“With execution of our business plans for FY2022 and beyond, we are making further inroads into turning DNeX into a multinational corporation that is trusted for its world-class services and expertise,” he added.