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Awantec
Energy & Technology, News

Awantec Faces Share Suspension Amid Regulatory Compliance Challenges

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KUALA LUMPUR: AwanBiru Technology Bhd (Awantec) has announced that trading in its shares will be suspended starting April 26, following its failure to submit a regularisation plan to regulators within the required timeframe. In a disclosure to Bursa Malaysia Securities on Thursday, the software service provider revealed that it was obligated to submit the regularisation plan by April 13 but missed the extended deadline. Awantec now faces the risk of delisting if it fails to submit an appeal within five market days from the notification of potential delisting. The company, formerly known as Prestariang Bhd, was categorized as an affected listed issuer in January 2021 after its wholly owned subsidiary, Prestariang Systems Sdn Bhd, lost its membership in the Microsoft Partner Network. Seeking reprieve, Awantec applied for a waiver from the regularisation plan requirement on April 8, citing recent financial improvements. Additionally, the group requested a reclassification of its affected issuer status and a six-month extension until October 13 for plan submission in case the waiver and reclassification applications are not approved. Financially, Awantec showed improvement, reporting a net profit of RM1.19 million for the six-month period ending December 31, 2023, compared to a net loss of RM4.31 million in the prior year. Revenue also grew by 9.7% to RM28.63 million from RM26.1 million. Awantec recently made headlines by winning a lawsuit against the government, receiving RM231.55 million in compensation following the termination of the RM3.5 billion National Immigration Control System (SKIN) project in March. An appeal was lodged in early April. The SKIN project was awarded to Awantec’s wholly owned subsidiary, Prestariang Skin Sdn Bhd (PSKIN), in August 2017 under the leadership of former Prime Minister Datuk Seri Najib Razak. However, the project was scrapped by the Pakatan Harapan government in December 2018, leading to legal action by PSKIN against the government due to the failure to agree on compensation terms. Despite these developments, shares in Awantec closed unchanged at 32 sen on Thursday, with a market capitalisation of RM252.77 million. Investors and stakeholders await further updates from Awantec regarding its regulatory status and plans for compliance.

Vivek Sood
Energy & Technology, News

Axiata, India’s Bharti Airtel to Merge Operations in Sri Lanka

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KUALA LUMPUR: Axiata Group Bhd and India-based Bharti Airtel Ltd signed a definitive agreement to merge their operations in Sri Lanka. According to a joint statement, Axiata’s subsidiary, Dialog Axiata, will acquire 100 per cent ownership of Airtel Lanka through a share swap arrangement. Bharti Airtel will receive approximately 10.35 per cent of Dialog Axiata shares as part of the deal. While the Telecommunications Regulatory Commission of Sri Lanka has granted approval for the merger, the transaction is subject to additional regulatory approvals. The merger coincides with Axiata’s strategic move to divest some of its operations in frontier markets to improve its profit margins and reinforce its financial position. Axiata is currently divesting its tower business in Myanmar for US$150 million (RM716.78 million) and withdrawing from the country due to deteriorating macroeconomic conditions and business challenges. Additionally, in December of last year, Axiata sold its operations in Nepal at a loss after encountering prolonged regulatory hurdles and uncertainties over seven years. The integration aims to capitalise on economies of scale and streamline infrastructure, resulting in technological and capital expenditure synergies. According to the statement, this will enhance broadband connectivity, voice services, and value-added offerings while also yielding cost reductions and operational efficiencies. Axiata group chief executive officer Vivek Sood stated that Dialog’s and Airtel Lanka’s merger aligns with Axiata’s strategy of consolidating markets and building resilience. Sood highlighted that the merger will generate value for Dialog and Axiata shareholders through attainable synergies. Bharti Airtel Lanka (Pvt) Ltd chief executive officer Ashish Chandra emphasised that the merger in Sri Lanka presents new prospects for innovation and growth, which will ultimately benefit consumers.

Telegram
Energy & Technology, News

Telegram Hits 1 Billion Users Within a Year

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MOSCOW: Pavel Durov, the billionaire founder of Telegram, expects the messaging app to surpass one billion monthly users within a year, likening its rapid growth to a “forest fire.” Durov, who resides in Dubai, launched Telegram after leaving Russia in 2014 following a dispute over government demands to censor content on his VK social media platform. In an interview with US journalist Tucker Carlson shared on the X social media platform, Durov revealed Telegram’s current user base of 900 million and predicted significant further expansion. Despite governmental pressures, Durov emphasized Telegram’s commitment to neutrality in geopolitics. Telegram’s primary competitor, WhatsApp, boasts over two billion monthly users. Reports suggest that Telegram may seek a US listing once it becomes profitable. Particularly influential in former Soviet republics, Telegram ranks among the major social media platforms globally. Since Russia invaded Ukraine in 2022, Telegram has become a key source of uncensored, albeit sometimes graphic and misleading, information about the conflict. Durov conceived the idea of an encrypted messaging app under Russian government scrutiny. He left Russia to ensure independence from governmental influence and dismissed rumours of Russian control over Telegram as baseless. Durov highlighted challenges to freedom of speech posed by major tech companies like Apple and Google, who can restrict access to apps through their stores. He chose the UAE for Telegram’s base due to its neutrality and openness to all nations. Telegram remains a platform open to all viewpoints, serving both opposition movements and governments without taking sides. Durov values personal freedom over material possessions, opting not to accumulate significant wealth beyond cryptocurrencies. –Reuters

Google
News

Google Trims Workforce, Relocates Jobs Internationally in Cost-Cutting Push

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KUALA LUMPUR: Alphabet-owned Google spokesperson announced on Wednesday that the company is reducing its workforce. According to a news report, the number of employees affected by this decision has not been disclosed, and the specific teams involved have not been identified. The spokesperson clarified that the layoffs are not across the entire company and that those impacted can seek other positions within Google. A few of the affected roles will be relocated to key locations where the company focuses its investments, such as India, Chicago, Atlanta, and Dublin. The report further said that Google’s recent job reductions are part of a broader trend of layoffs within the tech and media sectors this year, intensifying concerns that job cuts may persist as businesses navigate economic challenges. A Google spokesperson explained, “In the latter half of 2023 and 2024, various teams have restructured to enhance efficiency, streamline operations, reduce hierarchical layers, and better allocate resources to key product areas.” According to a report by Business Insider on Wednesday, the layoffs have impacted multiple teams at Google, particularly within its real estate and finance departments. The finance areas affected include treasury, business services, and revenue cash operations. Business Insider also noted that Google’s finance head, Ruth Porat, emailed employees about organisational changes involving expanding operations to Bangalore, Mexico City, and Dublin. In January, Google dismissed hundreds of employees from various departments, including engineering, hardware, and assistant teams, as it escalated its focus on artificial intelligence development. Google chief executive officer Sundar Pichai has indicated to staff earlier this year that additional layoffs are to be expected.

Huawei
Energy & Technology, News

Huawei Malaysia Anticipates 5.5G Adoption Among Industries

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KUALA LUMPUR: Huawei Technologies (Malaysia) Sdn Bhd (Huawei Malaysia) is envisioning the transformative potential of its 5G- Advanced (5.5G) technology and its forthcoming implementation among major industries in Malaysia. Huawei Malaysia chief executive officer Simon Sun said the 5.5G technology is not targeted at individual consumers but provides greater connectivity capabilities that could benefit many crucial industries in the country such as the manufacturing sector. “The 5.5G technology, compared with 5G, is 10 times faster, supports 10 times more connections and has lower latency. We need to bring these cutting-edge digital facilities into the country, especially for the benefit of major industries to enhance operational efficiency as well as sustainability. “For example, previously in some factories, a lot of people or manpower were used to check quality. But now with 5.5G, high-definition artificial intelligence (Al) cameras can simultaneously analyse and give instructions to the production line. “It will be a game changer. Without this base foundation and good connectivity within the industries as an enabler, enhanced operational efficiency, which also leads to sustainability, will not happen,” he told Bernama. Sun elaborated that 5.5G unlocks numerous application possibilities, for example, its speed and low latency will deliver advanced, almost real-time capabilities for navigation systems in vehicles “With 5.5G, we have millimetre-wave radar technology that can help us detect objects when we navigate our vehicles in really bad weather conditions such as foggy days, low light conditions or under heavy smoke,” he said. Recently, Huawei Malaysia and Maxis Bhd inked a memorandum of understanding (MoU) to work on a 5G-Advanced (5.5G) acceleration programme. According to Sun, the collaboration with Maxis provides a commercial deliverable use case of the latest 5.5G technology advancements and not just a proof of concept from the lab. “What you see (in the collaboration) is what you will experience in the market,” he said. The collaboration would include several areas to drive commercialisation and adoption in Malaysia, spanning use cases, key technologies, technology evolution and the ecosystem. Both companies will explore initiatives to promote adoption and facilitate migration, showcasing the benefits of end-to-end 5.5G versatility, security and robustness via trial and testing and further accelerating the technology acceptance. Moving forward, Sun said Huawei Malaysia will continue to actively pursue its green energy strategy, focusing on solar inverters technology, data centres as well as technology and components for the electric vehicle industry. —BERNAMA

News

GDEX In IT Diversification Drive

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KUALA LUMPUR: Express delivery firm GDEX Bhd, which has incurred losses over the past two financial years, intends to expand its operations into information technology (IT) services and solutions in a bid to bolster its revenue streams. GDEX previously acquired ownership stakes in three IT enterprises in 2022, namely Web Bytes Sdn Bhd with 38 per cent ownership, Sweetmag Solutions Sdn Bhd with 51 per cent ownership, and Anon Security Sdn Bhd with 60 per cent ownership. In a Tuesday filing to the stock exchange, GDEX outlined these acquisitions as the initial steps in its strategic turnaround plan. According to the filing, investments in Web Bytes, Sweetmag, and Anon Security are a gateway for GDEX into the IT services and solutions sector, encompassing areas such as e-commerce and website development, enterprise software solutions, and cybersecurity consulting. For the financial year ending December 31, 2023 (FY23), the company’s IT division generated RM33.4 million, comprising 8.4 per cent of the total revenue of RM397.18 million. However, despite this revenue contribution, the segment incurred a net loss of RM1 million for the year. This loss was primarily attributed to escalated staff expenses, as the IT subsidiaries expanded their workforce to accommodate operational requirements. GDEX foresees a turnaround in this segment, which it perceives as poised for sustained growth, propelled by the escalating demand for technology-driven solutions. The company anticipates that the IT segment will rebound and contribute 25 per cent or more of its net profit in the future. Moreover, GDEX plans to pursue further initiatives, including investments, acquisitions, and strategic partnerships with other promising IT firms, to bolster the potential of its IT services and solutions business. Across the board, GDEX’s net loss doubled to RM34.8 million in FY23, compared to RM17.27 million in FY22. This was attributed to challenges in its core express delivery business, including intensified competition from foreign courier firms and what it termed ‘delivery masking,’ hindering access to the company’s delivery services on e-commerce platforms. On Tuesday, GDEX shares declined by half a sen or 2.86 per cent, closing at 17 sen, resulting in a market capitalisation of RM959.04 million. Year-to-date, GDEX shares have fallen by three sen or 15 per cent.

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