51 Management Discussion And Analysis / Business Review DAGANG NeXCHANGE BERHAD Integrated Report 2024 BUSINESS REVIEW Financial Performance The IT Business Segment recorded solid year-on-year growth in FY2024. Revenue increased by RM29.0 million, reaching RM225.2 million compared to RM196.2 million in FY2023. The improvement was largely driven by project progress, higher system usage and the addition of new contracts across the business segment’s three core entities. The trade facilitation segment posted RM113.6 million in revenue, up from RM100.0 million the previous year, driven by increased transaction volumes on the NSW. The NSW remains a key source of recurring revenue and continues to support Malaysia’s trade compliance ecosystem. The technology consulting segment delivered RM35.3 million in revenue (FY2023: RM24.0 million), boosted by the continuation of the iGFMAS programme and a new contract with the Inland Revenue Board (“LHDN”) for the Hasil Integrated Taxation System (“HITS”) maintenance. The system integration segment contributed RM34.6 million in revenue, a sharp increase from RM0.8 million in FY2023. The jump was largely due to the substantial progress on the MAMPU - Pusat Data Sektor Awam (“PDSA”) project, which reached 79% completion by the end of FY2024. MAMPU is now known as Jabatan Digital Negara. On the profitability front, DNT remained the largest contributor, with normalised profit before tax rising to RM53.3 million, up RM5.0 million from the prior year. IAC narrowed its losses to RM2.2 million, a significant improvement from the RM17.3 million loss before tax in FY2023. DSSB, however, saw its loss before tax widened slightly to RM3.7 million, reflecting the front-loaded cost structure of the MAMPU project. The overall business segment turned into a 5% margin improvement year-onyear in profit after tax, underscoring steady operational progress and improving project delivery momentum. Key Initiatives and Developments FY2024 was a year of expansion and consolidation for the IT Business Segment, as we continued to enhance our service offerings while securing new strategic footholds across critical sectors. A notable highlight was the extension of the NSW contract, which allows DNT to continue supporting Malaysia’s crossborder trade facilitation infrastructure through to August 2025. Additionally, DNT secured a significant 3.5-year contract with the Port Klang Authority for the Malaysia Maritime Single Window project, marking a strategic move to expand beyond government contracts and strengthen its presence in the private sector. In parallel, DNT began developing next-generation trade facilitation solutions that go beyond the NSW framework, with the aim of improving transparency, efficiency and automation in exportimport processes. During the year, DNT also introduced the B2B Trade Platform, designed to simplify trade and regulatory compliance processes for manufacturers, importers and exporters. This platform aims to reduce costs and facilitate digital transformation within the supply chain. DSSB continued the rollout of the MAMPU digitalisation project. IAC strengthened its position as a trusted digital transformation partner by progressing key projects such as iGFMAS, SAP S/4HANA upgrades and maintenance services for LHDN’s HITS platform. These initiatives reinforce IAC’s role in supporting national financial governance and enterprise modernisation. In December 2024, we formalised a joint venture agreement with Gamuda Berhad to provide air-gapped Google Distributed Cloud (“GDC”) Services to the public and private sectors in Malaysia. The GDC services is a sovereign cloud solution that offers customers the highest regulatory requirements, access to Google Cloud’s leading AI and Cloud technologies in a secure, fully isolated, on-premise environment. This partnership positions us to serve high-value clients in regulated industries - including government agencies, financial institutions and securitysensitive sectors - with sovereign, scalable infrastructure tailored to local compliance needs. Taken together, these developments reflect the business segment’s steady evolution into a comprehensive, cloudenabled, AI-driven digital solutions provider, with a strategic focus on highgrowth and high-trust segments.
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