These domestic expansion efforts have injected a balanced blend of near-term and long-term prospects into our energy portfolio, while diversifying our exposure across various geographical locations. Furthermore, our move to invest in projects with near-term revenue potential will provide a stronger financial foundation for pursuing our long-term ambitions in the UK. This strategic approach is paramount, given that our Anasuria asset currently stands as our sole oil-producing asset, and the yet developed Avalon field requiring an estimated investment of USD300 million before commencing the production of oil in 2028, at the very earliest. On this note, we have further bolstered our long-term prospects in the UK North Sea by acquiring a 42.5 per cent interest in the Fyne oil field in November 2023. Situated in proximity to our existing Anasuria operations, this acquisition aligns with our strategy of pursuing new projects in the surrounding vicinity of existing assets, enabling optimal utilisation of resources and equipment across multiple projects. This strategic approach will also be replicated for our Meranti and Abu clusters, which are strategically located around 180km from each other. IT Division Our IT division stands as the foundational pillar upon which DNeX was established, historically relying on government contracts from operating the National Single Window (“NSW”) to ensure revenue stability. Leveraging the invaluable experience, infrastructure and network garnered from NSW operations, we have ventured into private sector trade facilitation, subsea telecommunications and technology consulting and system integration in recent years. While this diversification has broadened our expertise and unearthed numerous exciting opportunities for domestic and international growth, it has also shed light on areas within our processes and competencies that require attention, as evidenced by the division’s profitability struggles in FY2023. To restore stability and equip ourselves adequately to capitalise on emerging opportunities, we are actively undertaking strategic initiatives to bolster our financial and operational fundamentals across the IT Division. A key ongoing initiative involves consolidating SealNet and Dagang Net to streamline our B2B and B2G businesses, with the execution of this plan on track for completion by end 2024. By coordinating resources and enhancing internal collaborative synergies, we aim to unlock greater cost efficiencies, enhance customer service, and improve profitability. Even before the completion of this exercise, I challenged Dagang Net to reduce costs, and I am pleased to report that the team succeeded in reducing external fees, notably to consultants, by RM3 million during FY2023. Concurrently, in conjunction with the consolidation exercise, we have established a new IT Strategy and Transformation Department to spearhead the alignment of our B2B and B2G businesses, subsequently leading the charge for procuring large-scale IT projects that harness the combined expertise and resources of Dagang Net, SealNet and IAC. Recognising challenges faced by our current or legacy project, we took and conducted proactively a comprehensive study and implemented robust measurements to enhance the financial management in our unwavering commitment to financial excellence. Noteworthy business development updates during FY2023 include Dagang Net securing a 3.5-year contract from the Port Klang Authority in October 2023 to develop, implement and maintain the Malaysia Maritime Single Window (“MMSW”) Phase 1. Furthermore, Dagang Net launched TradeSwift DAGANGNET, an all-in-one trade facilitation SuperApp enabling entities involved in global trade to perform multiple trade facilitation services in real-time. IAC has also clinched a two-year maintenance contract extension worth RM11.2 million from the Inland Revenue Board of Malaysia (“IRBM”) for the maintenance, support and enhancement of its Hasil Integrated Taxation Systems (“HITS”). DRIVING INTERNAL TRANSFORMATION As a diversified business with various divisions, each posing its own challenges and opportunities, we recognise the importance of enhancing the competencies and capabilities of our people in lockstep with our ambitions. In my inaugural year as GCOO, I have instituted a clear mission to propel DNeX towards becoming a high-performing organisation. Central to this vision is cultivating a workforce of capable, independent and resourceful individuals poised to give their utmost for the company’s success. Leadership Insights DAGANG NeXCHANGE BERHAD 14 GROUP CHIEF OPERATING OFFICER’S STATEMENT
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