GHL Systems Bhd, an end-to-end payment
services enabler, would focus on ASEAN after irregular transactions in the
China operations led to substantial losses last year.
The
company posted an RM26mil lost for the financial year ended Dec. 31, 2011 in
the China unit besides a write-down in the value of some of the assets.
“In the
immediate and mid-term future, we will not go back to China. There are enough
opportunities in our neighbouring countries with a population of 600 million,”
executive chairman Loh Wee Hian said after the company's AGM and EGM.
“Our
target is to be one of the leading payment solutions providers in this region.
We hope that by 2015, not less than 50 percent of our top and bottomline will
come from this region.”
“This
is in line with Malaysian banks, like Maybank and CIMB Bank, wanting to be
regional players.”
Currently,
20 percent of the firm's revenue comes from its foreign units in countries such
as Thailand and the Philippines.
“GHL is
not a domestic company. We position ourselves as a regional player. We are also
looking at opportunities in Indonesia.”
“The
use of electronic money in place of cash is increasing and the population in
this region is young. So, we are in the right place, right time and right
business.”
“As for
the other markets, we are looking at the Middle East, South America, and
Eastern Europe. We have no intention to set up offices there, so we will
appoint resellers,” Loh added.
Chief
executive officer Kanagaraj Lorenz said he was confident the company would turn
around, helped by its focus on increasing recurring income through renting its
electronic data capture (EDC) terminals and expanding its solutions services
and transaction payment acquisition (TPA) business.
“The
income from EDC terminal rental is more predictable and consistent as compared
with sale of the terminals.”
“We are
not paying dividends for these two financial years [2012 and 2013] as the
company can earn higher yields through reinvesting in the business.”
“We
will make money but it won't be spectacular this year,” he said.
As for
the TPA segment, the company has been working closely with Malaysian Electronic
Clearing Corp Sdn Bhd, a wholly-owned subsidiary of Bank Negara, to provide an
ATM PIN-based payment known as e-Debit to merchants.
Executive
director Ng King Kau said: “We are expanding our own sales force regionally and
in important secondary cities like Penang, Johor Bahru, Kuching, Kota Kinabalu
and Kuantan.”
He also
said they were looking at increasing the TPA operation's sales growth by no
less than five times within the next two years.
Ng Bei
Shan
The
Star
Business & Investment Opportunities
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