HeiTech explores new marts
By KAMARUL YUNUS

June 10 2005

INFORMATION technology (IT) solutions provider Heitech Padu Bhd is exploring opportunities in new markets in Asia and Africa to raise its overseas revenue contribution higher than the current 5 per cent.



Executive chairman Datuk Mohd Hilmey Mohd Taib said the company aims to expand its overseas business to Indonesia, Sri Lanka, Bangladesh, Pakistan, Papua New Guinea, West Asia and African countries.

“Our targeted increase in revenue from overseas will depend on the number of contracts sealed this year.

“Of these markets, we are confident of clinching deals in Indonesia and Sri Lanka, which are considered as matured IT markets.

“We hope to secure deals in these two countries by the end of the year,” he told newsmen after HeiTech’s annual general meeting in Petaling Jaya, Selangor, yesterday.

Mohd Hilmey said HeiTech has received good feedback from its existing and potential customers overseas, and to expand the market for its electronic government solution suite in developing countries in South-East Asia, West Asia and the African continent.

“We are currently very active in developing these markets. With the information, communications and technology (ICT) industry expected to grow by 12 per cent this year, we see this as a positive development to expand our business overseas,” he said.

He said the company will probably go into these potential markets through joint ventures with local firms of the respective countries.

“We have started negotiating with several of the local companies of those particular countries for the possible joint ventures,” he said.

The company registered a profit of RM4.3 million for its first quarter ending March 31 2005, against RM6.5 million over the corresponding period last year.

This was achieved on the back of the revenue of RM71.1 million compared to RM57.3 million in 2004.

Mohd Hilmey also said the company is trying to increase contributions from the private sector to its revenue to a more balance percentage.

Currently, the public sector contributes 60 per cent of HeiTech’s total revenue, with the private sector contributing the remaining 40 per cent.

However, in terms of customer base, the private sector contributes 75 per cent of HeiTech’s total number of customers.

Ranked among the top five players in Malaysia in the ICT services sector, HeiTech recently secured a contract from Tabung Haji for a systems integration project.

“Additional inroads have also been established with the Malaysian banking system, namely RHB Bank Bhd and Malayan Banking Bhd,” Mohd Hilmey said.

He said the company has also completed the “Pencen POWER” project for the Public Services Department and the relocation of the department’s mainframe-based data centre to Putrajaya.

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