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Image credit: The Malaysian Reserve

KUALA LUMPUR: Dagang NeXchange Bhd (DNeX), which operates the electronic-based National Single Window for Trade Facilitation, sees a positive outlook for its business as the group ramps up efforts to participate in digitalisation transformation initiatives in the country and the region.

Chairman Tan Sri Abd Rahman Mamat said that many opportunities had emerged despite the many uncertainties globally arising from the economic slowdown due to factors such as the US-China trade war and COVID-19 pandemic.

According to him, rising demand for digitalisation bodes well for DNeX as the group can provide end-to-end innovative services that allow connection and collaboration among governments, businesses and consumers leveraging on technologies such as blockchain, artificial intelligence, big data analytics and radio frequency identification.

“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 today.

“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,“ he said at the group’s first fully virtual annual general meeting (AGM) today.

At the AGM, shareholders did not vote in favour of the resolution to reelect Datuk Samsul Husin to the board; therefore, he has relinquished his position as DNex executive deputy chairman.

At a special board meeting held after the AGM, DNeX executive director Mohd Azhar Mohd Yusof was appointed as acting group managing director with immediate effect. Meanwhile, the board will seek a suitable successor to drive the business in response to the changing business conditions and the need for fresh new ideas.

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).

He previously held roles at Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank), Felda Global Ventures Holdings Bhd, Bursa Malaysia Bhd, Petroliam Nasional Bhd, the Securities Commission, and Ernst & Young.

Commenting on the impact of COVID-19 on the group, Abd Rahman said DNeX believed the impact of the COVID-19 pandemic to the group was manageable as most of its projects were ongoing and these would carry DNeX through 2020.

He said some other projects were also expected to return to “business as usual” as the pandemic continued to show signs of easing in the country.

“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,“ he said.

Source: https://www.thesundaily.my/business/dnex-ramping-up-efforts-to-participate-in-digitalisation-initiatives-XK2639246