Dagang NeXchange Berhad Annual Report 2019

MANAGEMENT DISCUSSION & ANALYSIS DAGANG NeXCHANGE BERHAD 12 TECHNOLOGY Trade Facilitation Dagang Net exclusively operates the NSW for Trade Facilitation System for the Royal Malaysian Customs Department (”RMCD”) since 2009 until its contract expiry on 31 August 2021. Dagang Net is also one of the two appointed service providers of RMCD’s uCustoms when the NSW is replaced. Over the years, the NSW contract has been a key component of the Group with sustainable revenues and profits. Leveraging on the Group’s exposure in the trade facilitation industry, DNeX is nurturing the development of small medium enterprises by offering one stop solutions via SealNet and global Halal services. DNeX expands its eServices by coupling it with financial technology gateways such as myPayment with the use of DNeX suite of services. SealNet and global Halal services are at their early stage of product life cycle. SealNet services are currently available in Malaysia and Thailand is expected to hit its growth stage in the coming years. The trade facilitation unit primarily the NSW services contributes 31% of the Group’s revenue and 55% of the Group’s profits in 2019. System Integration & Consultancy System Integration and Consultancy unit specialises in full project management, from design and build right through to installation and commissioning. It’s key projects are from the Government of Malaysia namely iGFMAS, re-engineering of tax self-assessment system for IRB and big data analytics project for Ministry of Energy and Natural Resources. The system integration & consultancy unit primarily the iGFMAS contributes 35% of the Group’s revenue and 28% of Group’s profits in 2019.