UEM Edgenta to invest RM40 million in technology

PETALING JAYA: UEM Edgenta Bhd has set aside about RM40 million this year to invest in various technology platforms as part of efforts to improve margin and save costs by between 20-30 per cent.

Managing director/chief executive officer Datuk Azmir Merican said this year’s technology allocation was the highest and includes automation and mechanisation, to help further reduce labour intensity and the time spent on documentation and manual processes.

“We have been investing in technologies for almost two years to change the way we manage our properties and buildings, and has proven to help us monitor performance in real-time,” he told reporters after the company’s 55th Annual General Meeting.

Backed by a strong balance sheet of 0.35x gross gearing and a net cash position of RM143.7 million in the 2017 financial year, Azmir said the company should be able to fund expansion plans and future growth, and unless the amount is extremely huge, would need bank borrowings.

As a total asset solutions company, he said the growth focus would be underpinned by existing projects which would give recurring income, including the Pan Borneo Highway, cross-selling within the healthcare services and revenue diversification and densification for real estate.

“In terms of the operational and organisational (process), we are adopting the performance-based contract, realisation of synergies between each sector in terms of using the right systems and tools, as well as setting up Edgenta Academy for our people to deliver better services to all clients,” said Azmir.

In total, the company has earmarked RM100 million for capital expenditure.