Heitech Padu looking at ‘right sizing’ to streamline its business

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KUALA LUMPUR (Aug 22): IT services management company, HeiTech Padu Bhd, is looking at ‘right sizing’ its operations to streamline its business amid the challenging environment, says Chairman Datuk Seri Mohd Hilmey Mohd Taib.

“We are open to the possibility of selling some shares in our units and partnering up with other companies that have the technologies, capital, market connection and ability to take the business to the next level.

“We are already in talks with a few parties but it is too early to mention,” he said in an interview with Bernama, New Straits Times and Berita Harian recently.

Mohd Hilmey said this would alleviate HeiTech Padu's load in terms of expenses without ever needing to look at retrenchment.

HeiTech Padu, a company that is an offshoot from Permodalan Nasional Bhd's IT department, started operations 20 years ago when the Multimedia Super Corridor programme was first introduced.

“IT companies were mushrooming at the time and we are proud to be one of the few that is still around today. We had 1,000 staff then and we have 1,000 staff now,” he said.

Commenting on prospects, Mohd Hilmey said the new ruling government has started coming out with tenders since early this month and he believed next year would be better in terms of contracts.

In 2017, the company managed to secure contracts worth RM222.1 million, of which, about RM127.7 million were IT-related and the remaining RM94.4 million were engineering-related works for the energy sector.

He said among the significant contracts that were secured from the public sector were for the  maintenance of the Immigration Department’s passport renewal application, MyIMMS system, worth RM42.4 million, and for the development of clinical documentation module for the Ministry of Health’s patient management system, worth RM10.1 million.

In the private sector, the group managed to secure a RM33.3 million four-year contract for security infrastructure services for Companies Commission of Malaysia and, maintenance of managed wide area network infrastructure services contract of RM41.9 million from Malaysia’s largest unit trust house.