A Chief Executive Officer who insists on rigorously measuring and managing all cultural elements that drive performance more than doubles the odds that their strategies will be executed. And over the long term, they deliver triple the total returns to stakeholders, as found by McKinsey & Company on ‘Mindsets, Practices, And A Model For CEO Excellence’.
The statement fits the strategic excellence of UEM Edgenta Berhad’s (UEM Edgenta) Managing Director/Chief Executive Officer Syahrunizam Samsudin, who has just surpassed a three-year unprecedented, challenge-riddled tenure with the leading Asset Management and Infrastructure Solutions company in the region and a subsidiary of the UEM Group.
Over the past three years, UEM Edgenta has strengthened its presence in Malaysia and expanded into new markets by remaining steadfast in its commitment to global environmental sustainability with partners in many nations stemming from technology innovation. The company remains committed towards delivering new Sustainability products and Technology solutions that caters to the needs of new business markets, anchored on technology, sustainability and enhanced user experience, in 2023 and beyond.
Syahrunizam, on never losing sight of UEM Edgenta’s mission, said: “Edgenta of the Future is our vision to sustain the Company’s growth and create value for our clients, shareholders, and other key stakeholders. The vision is outlined by a two-pronged strategy which is first, to protect and preserve current contracts and partnerships with long-term clients; and second, to spearhead our next phase of growth through new product and market expansion, as well as introduce new business models and revenue streams.”
Focussed Milestones
In critically evaluating a company, net profitability remains a company’s bottom line. On the criteria of creating sustainable value begins with being a sustainable business, Syahrunizam has led UEM Edgenta to a commendable 10.1% increase in both revenue and Normalised PAT for FY2022 with a noteworthy increase in revenue of RM231.2 million (10.1% Y-o-Y), from RM2,292.4 million to RM2,523.6 million.
This positive trend is attributed to the resumption of business-as-usual in the post pandemic era, particularly with the significant increase in infrastructure service works for expressways and the securing of key contracts in healthcare support services, especially in Singapore and Taiwan, being two of the most notable value drivers of our revenue growth.
As previously noted, the bottom-line was impacted by the general cost escalation resulting from external economic factors and our preliminary expenses related to exploring new technology and markets. Despite these challenges, the company was able to secure an increase in PAT of RM2.3 million (5.3% Y-o-Y) through our effective cost management and operational efficiency improvements to mitigate the impact of cost escalation and protect our profit margin, the group’s annual report 2022 revealed. This was achieved amidst a challenging, high-cost operating environment and is a testament to the effectiveness of its operational efficiency and cost optimisation efforts.
Key milestones were guided by its ‘Edgenta of the Future 2025’ (EoTF2025) vision, in which UEM Edgenta’s full suite of business services are driven by technological advancements throughout the business assets’ life cycle including consultancy, procurement & construction planning, operations & maintenance, as well as optimisation, rehabilitation and upgrades.
Salient Business Achievements
A quick response was initiated at the height of the Covid-19 pandemic in 2020 in supporting national recovery efforts with the contribution of 30 ventilators and 30 patient monitoring systems for use by the Ministry of Health (MoH) then which also led to development of a cloud-based Epidemic Management System for MoH and the National Crisis Preparedness & Response Centre and supporting testing along with mobilising 15 units of Field Hybrid ICUs in hospitals across Malaysia to manage better patient care and reduce the burden on the public healthcare facilities.
The Healthcare Support division reported higher year-on-year revenue growth supported by key contract wins from both commercial and concession businesses valued at RM1.0 billion representing 71% of all new contracts for the year.
In 2020, the direction of the group was set by Syahrunizam when he said: “The impact of the Covid-19 pandemic on our diversified businesses in the region have been carefully studied, serving us with more knowledge and clear datasets to remain agile and responsive. In this new operating environment, we will reposition our business and grow sustainably to achieve our value creation promise through clear and differentiated solutions offered to the market.”
At the time, Menara UEM was recognised as the first corporate building in Malaysia to be certified by Bureau Veritas for complying with the implementation of hygiene excellence and safety controls, and against the spread of COVID-19.
“Syahrunizam expressed that the company’s resilience, agility, and adaptability had played a crucial role in navigating through the highly unpredictable period. These qualities allowed them to swiftly emerge with confidence and determination, enabling the continuous delivery of their services and solutions amid the challenges posed by the pandemic.”
UEM Edgenta Berhad’s (UEM Edgenta) Command & Contact Center (CnC), applies the latest and innovative technology solutions to collect and distil data which is then analysed to enhance the performance of vital resources and systems to provide key data related to business accessed in real time.
UEM Edgenta’s CnC entails collecting vital information with critical communications systems received via sensors and a proprietary digital cloud which are connected to the centre. It further helps to manage the use of resources besides sharing of decisive commands, warnings, and alerts flawlessly for its clients.
Syahrunizam said the use of advance technology such as the Internet of Things (IoT) and machine learning allows UEM Edgenta to improve the quality of its services and make predictive analysis through real-time data.
“Through enhanced technology solutions for the Asset and Facility Management industry, we are able to make predictive analysis to identify potential breakdowns and improve maintenance services regularly towards smarter and more efficient asset management.
“We strive to bridge the gap between present and future service delivery – the Asset and Facilities Management industry is evolving fast, moving away from the traditional ‘maintain-repair-restore’ model towards an emphasis on Asset quality preservation and continuous operational optimisation of buildings, and even cities. This paradigm shift opens the door for innovative Technology-based solutions, which we are delivering through Edgenta NXT,” he added.
International Partnership, Digitisation & Technology Solutions
Digital solutions across multiple industries have now placed UEM Edgenta as a powerhouse to become a Technology-Enabled Solutions Company with a focus on healthcare by 2025. UEM Edgenta has operational presence in Malaysia, Singapore, Indonesia, Taiwan, United Arab Emirates and The Kingdom of Saudi Arabia.
Among the strategic alliances are Edgenta Arabia Limited completes 60% acquisition in MEEM for Facilities Management Company (MEEM) solidifying its footprint in the Kingdom of Saudi Arabia.
UEM Edgenta entered into a memorandum of business exploration agreement with ITMAX System Bhd to enhance its service offerings and technology solutions to deliver smart city solutions in the UAE and Saudi Arabia. The partnership will focus on extending its solution offerings into smart security and surveillance, especially in public and community spaces. The solution empowers authorities from townships and municipalities to react proactively to critical and emergency events.
The company enters into a tripartite Memorandum of Business Exploration Agreement with Sumitomo and SoftBank Corp to market and enhance its service offerings and technology solutions through a tripartite strategic partnership in the fields of Asset Management & Infrastructure Development, Industrial Machinery & Equipment, Commercial Asset Leasing & Financing, Technology and Digital Solutions, and a strong global presence.
Edgenta NXT, a subsidiary of UEM Edgenta partners Disrupt-X, a major global digital technology player based in Dubai, to present the highly anticipated ‘Cracking IoT Conference Chapter 2’ to bring together various global industry leaders to discuss and deliberate on the key benefits of Internet of Things (“IoT”), 5G and Digitalisation towards shaping a digitally empowered nation at the one-day event, first in the region event, was held at Kuala Lumpur Convention Centre in June.
“We brought together global industry leaders, some of the brightest minds in the IoT realm, to allow attendees comprising early adopters, start-ups, developers and IoT strategists to explore the boundless potential of a connected world as they exchanged valuable insights and shared best practices on the game-changing role of IoT, 5G, and digital transformation. All in all, we succeeded in preparing business leaders to be ready to propel their industries into a more sustainable and connected future,” said Syahrunizam.
Driving innovation for a sustainable future in business
Aligning with the growing significance of sustainability in the global economy, the company has intensified its focus on ESG, incorporating sustainable practices into its EoTF2025 vision. This involves expanding solutions, enhancing product and technology offerings, and extracting value from core businesses.
In efforts to realise the vision of ‘Optimising Assets To Improve Lives,’ Syahrunizam said: “We view sustainability as a core element in the value we provide to our clients. To further our commitment to sustainability, we began construction of a Recycled Asphalt Premix Plant in 2022. This plant is designed to produce recycled asphalt pavement and is expected to reduce up to 800 tonnes in CO₂ emissions annually. We aim to launch this solution commercially in the second half of 2023.
“We launched a Green Building certification program to help our clients adapt to sustainability-related demands from authorities and society. This program assists building owners in achieving certifications such as Green Building Index (“GBI”), Leadership in Energy and Environmental Design (“LEED”), or Malaysian Carbon Reduction and Environmental Sustainability Tool (“My CREST”).
Towards Nation Building
Aside from the various achievements met with MoH in addressing the needs of Malaysians during the pandemic, Syahrunizam was instrumental in leading various efforts in hearing the call by the government.
UEM Edgenta was conferred with The Institution of Engineers, Malaysia (IEM) Award 2022 for their contribution to the Engineering Industry in Malaysia for the role its subsidiary OPUS Consultants played in improving the efficiencies of the lifecycle assets of more than 4,000km of toll expressways, construction and upgrading projects in Sabah and Sarawak.
OPUS Consultants (M) Sdn Bhd delivered projects which contributed to the infrastructure landscape change in Malaysia with its legacy imprinted on the North-South Expressway, PUTRA LRT2, Kelana Jaya and Ampang Line LRT Extension, KTMB Electrified Double Tracks which stretches from Rawang-Ipoh and Ipoh-Padang Besar, the Malaysia-Singapore Second Crossing, the Cyberjaya Development, and expanded its service center and established its headquarters in Sarawak towards supporting the state of Sarawak’s aspiration to become a high income state by 2030.
UEM Edgenta Infrastructure Services also secured mega projects and new contract wins, providing Integrated Infrastructure Services of Pavement Rehabilitation, Network Maintenance, Traffic & Safety Management and Utilities Relocation Services, and Environmental & Material testing as they continue to maintain more 3,100km of network management and maintenance of expressways in Malaysia and Indonesia.
Salient Accolades
Syahrunizam’s track record, in reaching his third year in office with UEM Edgenta has not gone unnoticed as he was conferred with the Executive of the Year – Engineering, Malaysia Management Excellence Awards 2021 organised by the Singapore Business Review. The award acknowledges outstanding individuals and teams whose initiatives have brought tangible business gains for their company’s operations with the evolving work environment and the current economic landscape.
In 2023, he was again conferred the ‘Global Business Icon Leadership Award’, at the recent Global Business Forum 2023, organised by the Malaysian Global Business Council & KSI Strategic Institute for Asia Pacific, supported by Economic Club of Kuala Lumpur.
The award recognises business and industry leaders in driving excellence and steering the company’s track record on business innovation, sustainability practices, as well as shaping the future of Malaysia and transforming the nation through their commitments, exemplifying distinctive and transformational leadership.
