UEM Edgenta to expand Indonesian ops, focus on tech-based solutions

UEM Edgenta plans to expand its healthcare support and infrastructure segments into Indonesia in the next two years. Azmir Merican (pictured), UEM Edgenta's managing director/CEO, told A+M in a statement that Indonesia is attractive due to its market size, number of highways and hospitals.

The country currently contributes less than 5% of the group's revenue and Azmir said the company intends to replicate its digital solutions for Indonesia. He added that offering technology-based solutions will be of prime concern for the company, in particular breaking into new and existing markets with customised solutions. The solutions will offer real-time IoT and data analytics to optimse asset management, Azmir said.

UEM Edgenta established its regional office in Jakarta last September and is currently partnering with Indonesian conglomerate Astra Group to manage and maintain the Cikampek-Palimanan Highway until 2022. He explained that it will implement its digital product, Road Assistance Management System, as part of its current operations in Indonesia.

According to Azmir, the company's investments in technology, operational excellence and process improvements have resulted in its ability to overcome rising costs of delivery, register cost savings, and increase operational efficiency. "This provide crucial in making the organisation efficient and resilient", he added.

For the year ended 31 December 2019 (FY 2019), UEM Edgenta posted a revenue of RM2.4 billion and net profit of RM188.0 million, representing a growth of 10.5% and 23.4% on a year-on-year basis. Nonetheless, the company remains cautious of its outlook for the short-term on the back of adverse macroeconomic conditions, exacerbated by the threat of the global coronavirus outbreak. According to its financial statement, FY 2020 will be a year of resilience through operational and organisational excellence to sustain the company’s profit margins, backed by the productisation of new technology solutions.