53 Management Discussion And Analysis / Business Review DAGANG NeXCHANGE BERHAD Integrated Report 2024 BUSINESS REVIEW Competition from Global IT Players Risk Description The IT Business Segment faces increasing competition from global IT players who have larger scale, deeper resources and broader geographical reach. This competition intensifies the pressure to innovate and maintain a competitive edge, especially in cloud infrastructure, AI and trade facilitation solutions. Mitigation We differentiate ourselves by leveraging deep local expertise and a strong understanding of regulatory environments, particularly in Malaysia and the ASEAN region. Our focus on tailored solutions that meet specific industry needs, combined with strategic partnerships, strengthens our market position. Additionally, we continue to enhance our end-to-end service offerings, ensuring that we provide value-added solutions that integrate seamlessly into clients’ ecosystems, making us the preferred partner in high-trust, regulated sectors. Strategic Focus Going Forward As Malaysia’s digital economy continues to accelerate, the IT Business Segment is focused on scaling its presence in hightrust, high-growth areas, particularly cloud infrastructure, AI and trade facilitation. In line with this, we are prioritising high-value initiatives with significant revenue potential, such as business-to-business trade platforms, Smart Customs, Smart Ports and digital trade compliance solutions. These projects are central to expanding our service offerings and capturing privatesector demand, while further diversifying our portfolio beyond traditional government contracts. A major priority is to expand the rollout of GDC Services through our joint venture with Gamuda Berhad. As the provider of sovereign GDC infrastructure in Malaysia, we are well-positioned to serve the needs of government agencies and regulated sectors seeking secure, locally compliant cloud solutions. This will also pave the way for us to introduce AIenabled applications tailored for industries such as finance, healthcare, logistics and public administration. At the same time, we are strengthening our position in digital trade and customs modernisation, building on the long-term success of the NSW. Our aim is to move beyond compliance facilitation into smart logistics and automation solutions that bring value to importers, exporters and logistics providers. Additionally, leveraging our established expertise in major public sector contracts will be crucial for strengthening our position in mission-critical sectors. These efforts support our long-term strategy of becoming a leading digital transformation partner. The IT Business Segment is also accelerating its expansion into the ASEAN region, leveraging our proven experience in delivering mission-critical digital infrastructure. With a strong track record in nationally significant digital platforms, the Group sees an opportunity to elevate its regional presence and become a leading digital transformation partner across Southeast Asia. By building on its credibility in Malaysia, DNeX is actively expanding its international profile and pursuing projects in high growth, digitally transforming economies. In parallel, we are strengthening our expertise in enterprise systems, including SAP, to serve large-scale digital transformation needs, particularly in sectors requiring deep integration, compliance and performance scalability. The IT Business Segment is also enhancing its AI capabilities by developing industry-specific, AI-enabled applications to meet sectoral needs. In addition to this, a focus on AI-driven compliance, automation and predictive analytics to enhance trade facilitation and customs clearance will be an important part of our strategy. These innovations will help streamline compliance processes, improve operational efficiency and drive the next phase of automation in logistics and trade. To support the Group’s growth initiatives, we continue to invest in talent and internal capabilities, with a focus on emerging technologies and platform engineering. By prioritising the development of these technologies, we are building the foundation for long-term innovation and ensuring that our teams have the expertise to execute our strategic objectives effectively. Our commitment to talent development and upskilling will not only strengthen our technical capabilities but also foster a culture of agility and innovation within the Group. We also remain committed to strategic alliances that enable faster innovation and scalable solutions. These partnerships will play a critical role in our continued success as we evolve from a systems provider into a full-spectrum digital solutions partner. This transformation will empower the digital transformation of public services and regulated industries, both in Malaysia and across the region.
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