This article first appeared in The Edge Financial Daily on July 17, 2018

KUALA LUMPUR: After being in the red for two consecutive financial years, Nova MSC Bhd, a digital government service provider, hopes to turn around in the current financial year ending March 31, 2019 (FY19) given its backlog of orders.

Speaking to the media yesterday, its group chief executive officer Steven Chan Wing Kong said Nova MSC is looking to secure more digital government service contracts, particularly in Malaysia.

“We are well versed in the implementation of the digital government agenda. Supported by our earlier experience and track records that span over 20 years in Singapore and other government agencies globally, where we enabled them to deliver transparent, secure and smart digital governance services seamlessly to the public, we believe we can replicate similar success in Malaysia,” said Chan, adding that the company will be focusing on its two strategic pillars of e-solutions, namely digital government and smart healthcare businesses.

After the disposal of its 51%-owned Singapore unit PrimusTech Pte Ltd, its current order book stands at RM117 million, which could last the company for the next three years.

Noting that the Malaysian government is still behind times in terms of digitalisation, Chan is of view that the government will be “playing a catch-up game”. Hence, he is optimistic about the opportunities in the digital governed service segment.

Moreover, Chan said the group is anticipating “a substantial revenue contribution” from its digital government services in Malaysia, banking on the Malaysian government’s aspirations to digitalise and to revamp the public areas.

For its healthcare segment, Chan said the company sees tremendous potential outside of Singapore, especially in Malaysia, for Nova MSC’s “Smart Healthcare” system.

With about 98% of Nova MSC’s total revenue derived from Singapore, Chan noted the need to diversify geographically.

“We want to be focused and [be] active in the Malaysian market. We are also looking into China, Japan, Australia and the Middle East,” said Chan, adding that Nova MSC aims to have its operations outside Singapore to contribute about half of its total revenue in the next three years.

For FY18, Nova MSC’s net loss narrowed to RM2.62 million, from RM20.43 million last year. Its revenue shrank nearly 25% to RM72.97 million from RM96.81 million in FY17.