Energy & Technology

KUALA LUMPUR: MASwings Sdn Bhd (MASwings), the airline that Sarawak Premier Abang Johari Abang Openg recently acquired, is expected to be in operation next year under a new name, pending several technical aspects of the acquisition, which is said to conclude by the end of this year. According to Abang Johari, the discussion is expected to conclude by August, adding that companies like Malaysia Aviation Group (MAG) and Khazanah National are already showing interest in purchasing shares of the company. He also mentioned that the acquisition is hoped to increase the rate of air connectivity to nearby regions like China, Singapore, Hong Kong, Indonesia and a handful of other Southeast Asian countries. In doing so, he said, it will allow Sarawak to have better trade and investment opportunities and boost the state’s tourism industry. He also mentioned that two state ministries, namely the Ministry of Tourism, Creative Industry and Performing Arts and the Ministry of Transport had conducted due diligence on the matter. “After having its airline, Sarawak is poised to become an aviation hub that can provide services like maintenance, repair and overhaul (MHO),” said Abang Johari during the memorandum of understanding (MoU) signing ceremony for the management of rural air services by Sarawak via the acquisition of shares in MASwings. Following some delays in the acquisition process earlier in March, MAG Group managing director Datuk Izham Ismail said it was due to the effort to ensure that both the Sarawak government and MASwings will benefit from the deal, which will also benefit the customers. “(While) MAG is steadfast in supporting the Sarawak state government in fulfilling the agreement we signed in 2023, we all should acknowledge that a transaction of such scale is not easy,” Izham said. “It encompasses valuation, due diligence, and agreement from service providers. Many doors need to be opened and closed, and most importantly, the utmost governance and integrity of both parties are not shortchanged,” he added. Most agreements of this size would typically take a year or more, but instead, it was an accelerated merger and acquisition, which is unprecedented, he said.

BERLIN (Reuters):  Tesla is undergoing significant workforce reductions, cutting over 10 per cent of its global employees amid declining sales and increased competition in the electric vehicle market, according to an internal memo seen by Reuters on Monday. Two key departures, battery development chief Drew Baglino and vice president for public policy Rohan Patel, also raised investor worries. Baglino, a long-time Tesla veteran, was among the core leadership team listed on the company’s investor relations website. CEO Elon Musk justified the layoffs as a routine reorganization necessary for future growth, stating, “About every 5 years, we need to reorganize and streamline the company for the next phase of growth.” The company’s headcount had surged from around 100,000 in late 2021 to over 140,000 by late 2023, as disclosed in filings with US regulators, despite Musk’s previous job cuts in 2022 due to economic concerns. Scott Acheychek of Rex Shares viewed the headcount reductions as strategic, but Michael Ashley Schulman from Running Point Capital Advisors highlighted the departures of senior executives as a negative signal for Tesla’s growth prospects. Tesla’s shares fell by 5 per cent to $162.42 following the news, with stocks of other electric vehicle manufacturers like Rivian Automotive, Lucid Group, and VinFast Auto also experiencing declines ranging from 2.2 per cent to 10.7 per cent. In his memo to staff, Musk emphasized the importance of cost reduction and productivity enhancements to prepare for the company’s next phase of growth, which led to the decision to reduce headcount by more than 10 per cent globally. Bloomberg reported that cuts of up to 20 per cent could occur in certain divisions. An email seen by Reuters informed at least three US employees of their immediate dismissal, and Tesla did not initially respond to requests for comment. These job cuts followed a Reuters report on April 5 that Tesla had scrapped plans for a $25,000 mass-market car, the Model 2, which investors had anticipated to drive broader growth. Musk disputed the report without specifics and has not commented further on the Model 2, leaving uncertainty among investors. Reuters also disclosed Tesla’s shift towards focusing on self-driving robotaxis on a small-car platform, with Musk announcing a “Tesla Robotaxi unveil on 8/8” without further details. Tesla’s struggles are part of a broader trend in the EV industry, with energy major BP also downsizing its EV charging workforce due to slower-than-expected demand growth. The labour union at Tesla’s German plant criticized the lack of consultation regarding the job cuts, stressing the legal obligation for management to engage with them. Analysts suggest Tesla’s cost pressures stem from investments in new models and AI, with the company reporting a drop in global vehicle deliveries for the first time in nearly four years. Rivals in China are aggressively rolling out cheaper models, impacting Tesla’s market position. Despite these challenges, Tesla is expanding into India’s auto market this year, planning to produce cars in Germany for export to India while establishing showrooms and service hubs in major Indian cities. In the fourth quarter, Tesla recorded its lowest gross profit margin in over four years. The recent job cuts underscore broader challenges facing the company as it navigates a shifting EV landscape.

KUALA LUMPUR: Microsoft chief executive officer and chairman Satya Nadella will visit Kuala Lumpur on May 2 as part of his Southeast Asian plan. He will speak at the Microsoft Build: AI Day Kuala Lumpur, which is scheduled for Nexus, Connexion Conference & Event Centre in Bangsar South. Before arriving in Kuala Lumpur, Satya will present his talk at Jakarta Convention Center Indonesia on April 30  followed by Bangkok on May 1 at Queen Sirikit National Convention Center (QSNCC) Plenary Hall. This visit is part of the regional Microsoft Build: AI Day Tour, during which Satya will deliver a keynote speech focusing on the new era of AI and the opportunities it presents for regional organisations to shape their future. During his previous visit to Thailand in 2016, he announced Microsoft’s commitment to supporting and enhancing the potential of Thai developers at the Microsoft Thailand Developer Day event. In Bangkok, Satya is also scheduled to meet with Prime Minister Srettha Thavisin, whom he had previously met during Srettha’s visit to the United States (US) for the Asia-Pacific Economic Cooperation (APEC) Summit in November. Additionally, a new meeting date has been arranged for Satya to meet prime minister Datuk Seri Anwar Ibrahim, according to the Minister of Investment Trade and Investment Tengku Zafrul. Apart from the highly anticipated CEO’s keynote address, the Microsoft Build: AI Day event will include panel discussions, tech demos, and hackathons, focusing on technologies such as Azure OpenAI Services and Copilot. Furthermore, attendees will be able to participate in a Connection Hub, where they can engage with experts, industry leaders, and fellow developers to discuss technical questions and potential collaborations. Registration for the event is available on Microsoft’s website, with limited seating.

KUALA LUMPUR: The Ministry of Transport clarified that the increased contract value of RM190.01 million awarded to HeiTech Padu Bhd for Road Transport Department (RTD) services is primarily due to an extended contract duration. Transport minister Anthony Loke Siew Fook clarified that the three-year period would encompass maintenance for the MySikap system, which includes both software and hardware components, along with servers at RTD offices across the country. He told reporters this following the official launch of the 2024 EVlution charging stations, which were developed in collaboration with Mastercard and RHB Bank Bhd. On Monday, HeiTech announced that it secured a RM190.01 million contract from JPJ for maintenance and technical support services for the RTD’s information and communications technology infrastructure and MySikap system without providing specific details about the job scope. Loke mentioned that the scope of work for the current contract aligns with previous agreements with RTD, even though the cost per contract period is relatively lower. In 2021, HeiTech Padu was awarded a contract valued at RM36.25 million for about 13 months, which ended on September 30, 2022. This contract was extended twice in subsequent years – first for four months in 2022 at RM10.49 million and then for 12 months in 2023 at RM27.29 million. This year, HeiTech Padu has secured two additional government contracts – one worth RM58.89 million for next-generation network services for the Inland Revenue Board, announced in January, and a contract extension in March valued at RM13.11 million from the Immigration Department for the upkeep of the Malaysian Immigration System (MyIMMs). The company’s largest shareholder is PKR Perak chief Datuk Farhash Wafa Salvador, who acquired a 15.91% stake last month through Rosetta Partners Sdn Bhd. Farhash, a former political aide to Prime Minister Datuk Seri Anwar Ibrahim, has denied involvement in government operations. Other significant shareholders include MyEG Services Bhd, holding a 15.89 per cent stake, and Padujade Corp Sdn Bhd with a 14.06 per cent stake. At Tuesday’s noon market break, shares in HeiTech Padu closed three sen or 1.23 per cent lower at RM2.40.

KUALA LUMPUR: RHB Research remains optimistic about Samaiden Group Bhd’s prospects, driven by its extensive pipeline and solid position in the renewable energy (RE) sector. The bank-backed research firm said that with a diversified portfolio comprising solar, biogas, and biomass, it strategically contributes significantly to Malaysia’s sustainable energy initiatives. RHB Research said Samaiden recently experienced a momentum surge, steadily securing RE contracts one after another. The company bagged two engineering, procurement, construction and commissioning (EPCC) contracts, namely a 50MW ground-mounted solar photovoltaic (PV) plant at Kulim Hi-Tech Park (KHTP) and a 2MW small hydro facility at the Pelagat Forest Reserve in Terengganu. Moreover, it managed to secure a gross total of 43.32MW capacity under the Corporate Green Power Programme (CGPP) and a 7MW biomass power purchase agreement or PPA under the Feed-in Tariff (FiT) scheme. “We expect these to start in the second half (2H) of 2024, providing earnings visibility for the upcoming year,” RHB Research said. The research firm said upcoming CGPP tenders, which are set to gain traction in the next few months, will further bolster Samaiden’s FY25 activities. According to industry players’ guidance, the tenders have been slower than anticipated, reportedly due to a Newly Enhanced Dispatch Agreement (NEDA) requirement. Other programmes to fuel Samaiden’s growth will be the much-talked-about National Energy Transition Roadmap (NETR) and the recently announced Integrated Clean Energy (TBB) programme, which features large-scale solar (LSS5). “The company’s recent CGPP win may help it for the LSS5 application, however, the categories it targets are likely to favour companies capable of applying for larger quotas given the 500MW capacity limit,” RHB Research noted. RHB Research maintained a Buy call and revised the target price for Samaiden to RM1.76 as the research firm rolled forward its base year to FY25. “There is a potential upside to our target price, which is linked to its CGPP assets, and we have yet to factor this in, given its net MW capacity is pending finalisation. “Our target price includes a 6 per cent ESG premium based on the 3.3 environmental, social, and governance (ESG) score, which is above the 3.0 country median. “Downside risks include discontinuing solar power incentives, competition risks, and higher-than-expected project costs,” RHB Research said.

KUALA LUMPUR: Businesses must embrace artificial intelligence (AI)- driven solutions to meet evolving customer expectations.   According to Zoom Video Communications Inc (Zoom), personalisation, efficiency, and technology integration with human empathy are key elements in building customer trust and loyalty. Zoom recently hosted its inaugural Asia Pacific (APAC) customer experience (CX) summit to share insights on AI’s transformative potential in shaping customer journeys. According to Zoom head of Asia Pacific (APAC) Ricky Kapur said most customers, or about 60 per cent, would leave a brand after one or two negative support experiences. “Customers today seek an experience that sets your company apart from others. They want to be treated well, they want issues resolved fast and with genuine empathy at every interaction,” Kapur said, adding that many customers are even willing to pay a premium. Due to the evolution of CX, he emphasised the importance of personalisation, swift issue resolutions and empathy. He explained that legacy solutions fail to meet modern customer expectations, underscoring the need for AI tools for seamless experiences. “Organisations need a single platform that provides a consistent and seamless experience – internally for collaboration and externally for customer interactions. By doing so, businesses can create more demand, increase customer loyalty, and accelerate revenue,” said Kapur. “Zoom is deeply committed to the CX space because we recognise its pivotal role in our own success story. We have reimagined how teams work and revolutionised employee experience in the workplace,” Kapur said. “To fulfil our mission of delivering limitless human connection, we also extended the power of Zoom Workplace into CX. “A big reason customers choose Zoom in the workplace is that we make the complex simple. They know Zoom is a modern workplace platform that works, and we are bringing that same modern philosophy and engineering to the customer experience,” he said. Similarly, AI-powered customer service can benefit every aspect of an operation, from delivering exceptional user experiences for customers and agents to creating more cost-effective, efficient workflows. In his keynote address, CX Innovation Institute chief innovation officer Simon Kriss shared AI use cases in APAC, such as real-time translation and automated post-call summaries, which resulted in enhanced customer satisfaction while reducing the need to hire language specialists. “Automated post-call summaries not only save time for human agents but provide more consistently formatted summaries that can be more easily analysed later,” said Simon. The Zoom Contact Center is said to be the world’s first video-optimised omnichannel contact centre, offering over 700 features designed to elevate customer experiences. It recently introduced AI innovations such as the AI Companion for Contact Center, which provides live transcription, summarises calls, and generates real-time follow-up tasks for agents. There is also the AI Expert Assist, an intelligent feature that transforms customer interactions by analysing conversations on the fly and providing agents with the information they need—right when they need it. Further, the Zoom Workforce Engagement Management harnesses AI-generated insights to forecast staffing needs, automate scheduling, and plan agent workload. “Organisations today strive to provide a connected, unified experience for everyone interacting with the brand, be it an agent, an employee, or a customer. “To do so, there needs to be a change in technology capabilities, particularly by harnessing a modern AI-powered CX platform like Zoom that looks at CX and employee experience as one,” said Zoom Contact Center head Chris Morrissey. The event also featured a customer panel discussion with Lenskart, Asia’s largest eyewear company serving 40 million people, with over 1,500 omnichannel stores across 175 cities in India, Singapore and Dubai, and Iress, a global provider of financial services software. The panel explored AI’s evolving role in shaping customer experiences and agent engagement and how organisations can strike the delicate balance between technology, efficiency, and human connection. The panellists agreed that humans must be at the centre of AI implementation. With the right tools and training, customer success teams can leverage insights to make data-driven decisions for better business outcomes. Lenskart product owner Rahul Rupani said that a significant challenge they faced was managing the uneven distribution of optometrists across different regions in India. To address this, Lenskart turned to Zoom Contact Center, which enabled optometrists to conduct remote eye tests for customers via video. Rahul added that the company plans to utilise AI features in the Zoom Contact Center to enhance CX outcomes while scaling its services. By analysing data from these remote interactions, his team will be able to quickly identify areas for improvement, such as whether optometrists are following eye test guidelines. Meanwhile, Iress’s chief corporate affairs and marketing officer Kelly Fisk said AI’s true power is to free humans up for higher-value work, such as building relationships and making informed decisions. “This is how Iress has leveraged Zoom Contact Center for its support teams. Large amounts of data from customer engagements are analysed with AI and fed back to product and customer support teams. “This has helped drive quality control and coaching for employee development and has empowered team leaders to manage customer queues and resourcing more effectively, ultimately resulting in more positive CX outcomes,” she said.