Serba Dinamik to reduce O&G reliance

The group is envisioned to diversify its revenue comprising 55% of tech-related and 45% of O&G in the next 2 years


SERBA Dinamik Holdings Bhd has targeted to increase contribution from the technology segment and thus reducing reliance on oil and gas (O&G) to about 45% of group revenue by 2022.

Group MD and CEO Datuk Dr Mohd Abdul Karim Abdullah said the company’s technology segment is expected to bring around RM350 million revenue this year, which accounted for 7% of the group revenue.

Mohd Abdul Karim said that figure is expected to double in 2021.

Overall, he said the group is envisioned to diversify its revenue comprising 55% of technology-related and 45% of O&G in the next two years.

The CEO said the O&G division contributed 85% of the total revenue last year and it further reduced to 75% for the first half of this year.

“We cannot put everything in one basket as each sector has its high time and volatility. This allows us to have a stronger financial position in the future while addressing the market volatility,” he said after signing a memorandum of understanding (MoU) with Huawei Technologies (M) Sdn Bhd to develop digital solutions and smart industrial areas, in Kuala Lumpur last Friday.

In line with the company’s vision to grow its technology segment, the MoU is aimed at bringing a digital transformation to the O&G industry, reaching rural areas and setting up smart industry areas in Sarawak and Johor.

Mohd Abdul Karim said the company is expected to roll-out the digital transformation under the partnership in the fourth quarter this year (4Q20), and a holistic implementation is set towards the 3Q21 and 4Q21.

Huawei Malaysia CEO Michael Yuan said the company will provide 5G, artificial intelligence (AI) and cloud services, and technologies to Serba Dinamik under the partnership.

“We believe that through this partnership with Serba Dinamik, we will be able to drive ubiquitous connectivity and bring cloud and AI solutions to every corner of Malaysia, reaching the previously unreached,” Yuan said at the signing ceremony.

Yuan said Huawei’s cloud and AI will provide platforms and technological foundation for Serba Dinamik and Huawei to jointly develop digital solutions.