This article first appeared in The Edge Malaysia Weekly on August 9, 2021 - August 15, 2021

AMID the uncertainties of the Covid-19 pandemic, IFCA MSC Bhd believes it is in the right place at the right time, particularly as many companies have been forced to go digital in order to operate remotely.

The software solutions provider’s cloud-based X-series mobile solutions could prove to be the “right product at the right time” for companies as they embark on their digitisation, says its business experience director Grace Yong.

Designed with the Fourth Industrial Revolution in mind, the X-series aims to promote hyperconnectivity and to provide users the convenience of working anytime, anywhere on their mobile device.

“We had been working on this product pre-pandemic and when we were ready to launch it, it happened to be in this environment [the pandemic]. It turned out to be the right product at the right time and it is something we are working to capitalise on as well,” says Yong, daughter of the company’s founder and executive chairman Yong Keang Cheun.

Although there was a great deal of uncertainty at the start of 2020, when the pandemic hit, IFCA is weathering the economic crisis “reasonably well”, she says. “For us in the software industry, we did see an uptick in and appetite for digital solutions and I think it’s safe to say the pandemic has expedited digital transformation across the globe. What we are seeing is customer awareness and market readiness at an all-time high for business solutions, especially those that can enable a safe and remote working arrangement.”

Launched last year, the X-series solutions — covering the hotel, construction and human resources sectors — have received good feedback and interest from customers, says Yong, adding that the solutions for the property industry are slated for launch by year end.

IFCA considers the X-series solutions to be the only of its kind in the market at present. “We see that it will form the essential components of the digital transformation in Malaysia and we can adapt it to the new normal and meet the growing demand for mobile technology. We believe our solutions can help businesses adapt to what is happening in the market and overcome some of those things and thrive,” she elaborates.

The company is looking to introduce these solutions at its regional offices as well as to the rest of Southeast Asia after successfully implementing them here. As for when it will take the solutions overseas, Yong notes that the timing is fluid, given the uncertainty surrounding the pandemic.

IFCA is taking a wait-and-see approach as it hopes to ensure that the Malaysian market is comfortable with the solutions before moving on to other countries. Yong believes that in the upcoming financial reports, investors and observers will be able to see an uptick in new contracts for these solutions. However, the more tangible results will only be seen in the next financial year, she admits.

Of note is IFCA’s strategic partnership with Huawei Technologies (M) Sdn Bhd, signed in FY2020 to jointly explore digitisation and other innovative projects. Yong says the artificial intelligence-powered feature that is built into the X-series solutions is only one aspect of technology that was adopted from its partner. “We have worked with Huawei to understand how best to leverage its expertise and use its technologies — such as cloud platforms, AI and the Internet of Things — in our solutions.”

IFCA incurred R&D expenditure of RM6.2 million in FY2020 compared with only RM700,000 in FY2019. Yong expects to spend more on R&D this year, following which it is expected to taper off as the company focuses on promoting and implementing new solutions.

“Right now, a lot of investment is going into product development and building up capabilities for certain areas. Our workforce had expanded pre-Covid. All of these indicate that we are gearing up for growth and aggressive expansion when the time is right,” she says.

While IFCA seems to be in a good position to take advantage of the situation, it does not come without challenges. For one, small and medium enterprises, which it is looking to market its business solutions to, have put such plans on the back burner as the pandemic has made them more conservative.

However, the company also has its eye on medium and large enterprises which, Yong says, have a huge appetite and interest in its business solutions. “These are the players that, when given the opportunity or have the resources, invest in the right systems to establish a safe working environment and improve productivity.”

It is an exciting time for a technology company, she notes. “Customers are receptive and I’m excited about our future prospects, especially the regional expansion. The market is ready for a new generation of solutions.”

IFCA derives about half of its revenue from China, 40% from Malaysia and about 10% from Indonesia. It also has a presence in Singapore, Thailand, Myanmar, Pakistan, Maldives and South Africa, with a user base of about 500,000 across its markets.

For the first quarter ended March 31, IFCA recorded a net profit of RM218,995, compared with a net loss of RM2.6 million a year ago, while revenue increased 4.7% to RM16.04 million. Its share price closed at 30 sen last Wednesday, valuing the company at RM185.53 million.

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