KUCHING: Privasia Technology Bhd (Privasia) has ventured into the e-commerce services sector after the acquisition of a 12.5 per cent stake in Hubwire Sdn Bhd (Hubwire) for a total consideration of RM0.5 million in April.
Hubwire is involved in the development, running and operations of multichannel e-commerce platforms for inventory management, e-cart systems, warehousing and point of sale systems.
Speaking at Privasia’s Annual General Meeting (AGM) yesterday, chief executive officer and managing director Puvanesan Subenthiran said that the investment into Hubwire effectively expands the group’s existing market reach.
Industry statistics estimate that the e-commerce industry in Malaysia will double in size to about US$600 million in 2016, from about US$300 million in 2011 in line with the anticipated increase in internet penetration rate and user adoption of online purchases.
“With the local e-commerce industry on an upward trajectory, we are certain that our venture will be a fruitful one going forward,” Puvanesan said.
In its existing core business, Puvanesan also added that Privasia is looking to win more jobs from the telecommunications sector to strengthen its outsourcing orderbook.
Privasia currently has a total outsourcing orderbook of RM137.8 million, keeping the group busy till 2020.
“In order to enhance its range of services, telecommunication companies have to invest heavily in order to upgrade their hardware and software to meet the demand of their end-users.
“Thus, we believe that ICT outsourcing will provide these companies with a worthwhile solution that helps them improve their services corresponding with staggered investments,” he said.
“We are hopeful of securing a few jobs from the telecommunications sector by the end of FY2014,” Puvanesan concluded.