Serba Dinamik optimistic of RM2.5b sales from IT business

by TMR / pic by TMR FILE

SERBA Dinamik Holdings Bhd is optimistic its information technology (IT)-related business will achieve RM2.5 billion in sales by 2024.

Founder and group CEO Datuk Dr Mohd Abdul Karim Abdullah (picture) told Bernama the company made the projection based on the achievement of other IT companies globally and the borderless applications of IT-related products and services.

“You can see how Facebook Inc, Google LLC, Instagram, Amazon.com Inc and Alibaba Group Holding Ltd established their positions. There is a massive market out there,” he told Bernama in an interview yesterday.

He said the company had been putting a lot of effort in the last two years to develop IT-related technology, especially in applications for the industry’s future needs.

“For 2019, we initially allocated RM30 million for the IT business and it has almost reached the limit, so we are putting in an additional RM30 million to further prop up our technological advancement and our position as an IT solutions provider domestically and globally.

“I think we have reached the level that we want to market all these products and services to institutional customers and, of course, to the world population of 7.5 billion,” he said.

In line with Serba Dinamik’s push for IT and technologies of Industry 4.0, the company is organising the Beyond Paradigm Summit 2019, which will feature the social humanoid robot Sophia for the first time in Malaysia.

Held at the Malaysia International Trade and Exhibition Centre today and tomorrow, the summit will showcase advanced technologies encapsulating the core ideas of digitalisation and data exchange surrounding Industry 4.0.

Mohd Abdul Karim said the summit, which is expected to gather 1,000 participants, would be a valuable platform to connect industry players and for them to leverage each other’s strength and market potential in driving the country’s Industry 4.0 agenda.

The second summit is set to be held in Kuching on July 20-21 and is expected to garner 500 participants, he added. Meanwhile, Malaysian Rating Corp Bhd (MARC) assigned a rating of AA-IS to Konsortium KAJV Sdn Bhd’s RM1 billion Sukuk Wakalah Programme with a ‘Stable’ outlook.

The rating firm noted the assigned rating reflects the credit strength of the Terengganu state government to meet the unconditional and irrevocable payment obligations on the facility payment certificates (FPCs) issued for works done in the Kuala Terengganu Utara (KTU) water supply project.

The rating stand is premised on the state’s general creditworthiness which is underpinned by oil royalty payments, and expected continued economic and financial support from the federal government.

KAJV is a single-purpose company owned by Serba Dinamik Sdn Bhd or SDSB (40%), FASK Holding Sdn Bhd (35%) and Mirmas Holding Sdn Bhd (25%).

The joint venture was awarded a design-and-build contract for a 120 million litres per day (MLD) conventional water treatment plant (WTP) and a 28MLD membrane WTP, as well as related facilities that include retrofitting, refurbishing and rehabilitating five existing WTPs in Kuala Terengganu to a combined full capacity of 300MLD.

The proceeds from the sukuk issuances will largely fund the RM797 million construction cost for the WTPs and related facilities for the KTU water supply project.

Consisting of two phases — a four-year construction phase and a 12-year deferred payment phase — the construction phase will end in May 2020 with the deferred payment phase commencing the following month in June 2020.

The overall project will be handed over to the state government upon completion of the construction phase.

MARC said KAJV has completed 28.6% of the works against the scheduled 41.5% as at May 25, 2019.

The delay has been attributed to the requirement to construct an additional distribution unit at one of the WTP sites and administrative issues on pipeline construction.

The company expects the construction progress to be in line with the scheduled progress by November 2019.

Sukuk holders will not be exposed to construction risk as each tranche of sukuk will only be issued upon availability of the FPCs issued by the state government for partial completion of work under the contract.

The FPCs will be issued upon sectional completion of works under the contract and structured to match 12 annual deferred payments from the state government of RM108.8 million each.

The FPCs represent unconditional and irrevocable obligations on the state government to pay the approved sum on stipulated payment dates on the certificate notwithstanding any delay in the full completion or cancellation of the project resulting from a breach by either party.

Completion and cost overrun risks during the project’s construction phase will largely be allocated to the contractors, namely SDSB, Salcon Engineering Bhd and Mirmas, under fixed-price contracts. — TMR