UEM Edgenta doubles down on technology to address dwindling margins

THE closing of borders around the world because of the Covid-19 pandemic has forced many companies in the service industry to focus on their domestic markets in the interim. In the face of competition, a number of them are cutting prices at the expense of margins.

However, instead of competing on price, UEM Edgenta Bhd is doubling down on technology to offer better products and services, says CEO Syahrunizam Samsudin, adding that this is also a way to address the group’s rising cost structure.

“This (low-margin environment) is going to be with us, just like the pandemic is going to be with us for a while. [Rather than following the herd,] we are doubling down on technology — we have to learn to deal with this now,” he tells The Edge in an exclusive interview.

As a large company, UEM Edgenta likely has more leeway to play with margins, but Syahrunizam does not think that will help the group moving forward when it comes to investing in technology. Moreover, he believes that as a government-linked company (GLC), it has an important role to play.