Datasonic Group Bhd will jointly form a regional office and coordinate security services in the Middle East alongside the Bahrain-based Dynamic Structures WLL (DSWLL) to expand its business internationally.
Under an exclusive agency agreement, the largest security-related information and communications technology company in Malaysia will fully fund the formation of the regional office and cover the relevant rental, registration and salary costs.
Datasonic will use its technical capabilities and experience to acquire businesses in Bahrain, Saudi Arabia, Qatar, Kuwait, UAE, Oman, Yemen, Iraq, Syria, Lebanon, Turkey, Egypt, Sudan, Djibouti, Libya, Morocco, Algeria and Tunisia.
In turn, DSWLL will utilise its existing resources and networks to develop a profitable and cost-effective business model and settle all government-related fees while helping Datasonic secure the necessary licenses.
Datasonic, noted in an exchange filing yesterday, the business development activities in the region will contribute positively to the group’s future revenue and profitability. The agreement is valid for five years and remuneration of business development activities is under a 50% profit margin share between DSWLL and Datasonic.