14/03/2025

Editorial T: 03-7784 6688 F: 03-7785 2625 E: sunbiz@thesundaily.com Advertising T: 03-7784 8888 E: advertise@thesundaily.com

SCAN ME

FRIDAY | MAR 14, 2025

Velesto Energy on expansion trail in Southeast Asia

KUALA LUMPUR: Malaysia External Trade Development Corporation (Matrade), in collaboration with Nazsoft Tech Sdn Bhd and supported by the Royal Malaysian Customs Department, yesterday launched Madani Digital Trade (MDT), a virtual integrated platform designed to strengthen Malaysian exporters’ access to international markets. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said MDT is a transfor mative initiative aimed at helping SMEs expand into international markets through digital solutions. “The initiative aligns with the Madani Economy Framework and the IRB, MyDigital ID cooperate to accelerate digital identity adoption PUTRAJAYA: The Inland Revenue Board (IRB) and MyDigital ID Sdn Bhd are rein forcing their partnership to accelerate digital identity adoption in Malaysia, particularly through the integration of MyDigital ID into the MyTax and MySTR platforms. In a statement, the IRB said the colla boration was formalised with the signing of a memorandum of understanding (MoU) on digital identity empowerment at a ceremony in Cyberjaya yesterday. “The MoU reflects the commitment of both parties in supporting the digi talisation of the country’s public services and aligning the adoption of emerging technologies with the public sector’s digital transformation, particularly in taxation and government assistance management. This collaboration not only aims to strengthen online data pro tection but also to give the people greater confidence in the government service delivery system,” the statement said. According to the IRB, the integration of MyDigital ID into the MyTax and MySTR platforms will enhance user access, streamline online transactions, and reduce cybersecurity risks. “This initiative aligns with the government’s digital transformation agenda and supports the national goal of developing a sustainable and com petitive digital ecosystem,” it said. According to IRB records, 687,361 users have utilised MyDigital ID veri fication on the MyTax Portal to search for their Tax Identification Number, while 14,137 users have used the system to verify access to the MySTR platform. The IRB said its MoU with MyDigital ID reflects a significant step towards a fully digitalised taxation system, improving service efficiency and public trust in digital governance and data security. “This strategic collaboration is expected to create more opportunities and serve as a catalyst for greater synergy between the public and private sectors in driving the nation’s digitalisation aspirations,” it said. – Bernama Ű BY AIMIE SHAZRIE sunbiz@thesundaily.com

Ű BY JOHN GILBERT sunbiz@thesundaily.com

million, exceeding the RM99.5 million recorded in FY23 by more than twofold. The group’s impressive per formance was driven by improved average daily charter rates of US$118,000 (RM523,200) per day from US$94,000 per day in FY23 and higher rig utilisation at 87% from 83% in FY23 under the drilling services segment, as well as the completion of the i-RDC project. When asked about Velesto Energy’s strategic priorities for 2025 and plans to diversify revenue streams beyond drilling services, Megat Zariman said the company is committed to maximising share holder returns through operational excellence, efficiency and financial discipline. It is targeting 99% fleet uptime, leveraging the strong perfor mance of Naga 4 and Naga 6, which achieved high utilisation in 2024. “To secure long-term earnings, Velesto Energy is actively bidding for projects in Thailand, Vietnam and Indonesia while prioritising long-term contracts. Cost efficiency is driven by automation and pre dictive maintenance to protect margins. “With long-term borrowings fully repaid, Velesto Energy is in a net-cash position, allowing for an increased dividend payout ratio of nearly 50%, with further oppor tunities being explored to enhance shareholder returns. “The exceptional results achieved in 2024 and our optimism for another strong year in 2025 provide us with a platform to drive sustainable shareholder returns and long-term value while main taining our industry leadership position,” Megat Zariman said. markets, the platform will help SMEs increase their revenue and competi tiveness, ultimately boosting the country’s trade performance. MDT’s integration with advanced techno logies such as artificial intelligence and big data analytics will enhance productivity, enabling businesses to scale more efficiently. “With Malaysia’s strategic posi tion in Asean and its growing digital economy, MDT has the potential to strengthen the country’s position as a regional trade hub while ensuring long-term economic sustainability,” he added. Tengku Zafrul also urged SMEs to leverage MDT to tap into new market opportunities, reaffirming the govern ment’s commitment to make Malaysia a key player in global digital trade.

o Company eyes growth opportunities in Thailand, Vietnam and Indonesia

KUALA LUMPUR: Velesto Energy Bhd is actively expanding its presence in Southeast Asia, with two rigs currently bidding for opportunities in Thailand, Vietnam, and Indonesia – key growth markets where the company has previously operated. “This aligns with our strategy to diversify and strengthen our re gional footprint,” president Megat Zariman Abdul Rahim told SunBiz . “Currently, Velesto Energy’s three rigs continue to operate with Petronas Carigali Sdn Bhd, and one rig contract in Malaysia is under negotiation,” he said. According to reports, the Southeast Asian oil and gas market is projected to post a compound annual growth rate of more than 4% through 2030, driven by industrial demand for natural gas as part of the energy transition and economic expansion. Megat Zariman said with the jack-up rig market in Malaysia and Southeast Asia remaining stable, Velesto Energy is strategically positioning itself to weather market shifts such as oil price fluctuations and regional competition. On the domestic front, Megat Zariman said, the demand outlook for jack-up drilling remains stable, with steady activity in Malaysia’s upstream sector. While exploration drilling may continue at a slower pace in 2025, he added, development drilling re mains a priority as Petroliam Nasional Bhd (Petronas) and re gional operators sustain their pro duction. “Velesto Energy remains operationally active, with three rigs

strong cash flow, minimise idle time, and drive profitability through 2025 and beyond, capi talising on market opportunities while securing long-term agree ments to ensure stable revenue. When asked how Velesto Energy plans to mitigate potential revenue gaps, with some rigs scheduled for maintenance, and optimise fleet utilisation in 2025, Megat Zariman said the company has two re maining scheduled special periodic surveys for Naga 3 and Naga 8 this year to keep them in optimal condition for future contracts while maintaining operational continuity. “Our fleet utilisation remains healthy, and we are actively working to optimise fleet utilisation and secure new contracts.” Megat Zariman said Velesto Energy strives to maintain stable revenue streams, with Naga 2, Naga 4 and Naga 6 contracted until early 2026. On the earnings front, Velesto Energy recorded revenue of RM276.1 million for the fourth quarter ended Dec 31, 2024, bringing full-year

under Petronas Carigali and addi tional contracts under negotia tion.” Velesto Energy’s RM709 million order book provides financial visibility until early 2026, Megat Zariman said. Elaborating, he said the order book provides a solid foundation for financial stability, ensuring earnings visibility through early 2026, driven by long-term contracts for its jack up rigs Naga 2, Naga 4 and Naga 6. To strengthen financial visibility and sustain growth, Velesto Energy is actively expanding its contract pipeline, with negotiations for Naga 5 expected to begin in June. Velesto Energy is also optimising fleet efficiency by maintaining Naga 3 and Naga 8 in preparation for future contracts. The company is also actively seeking contract extensions and bidding on new tenders across Southeast Asia to secure a robust pipeline while main taining cost discipline and strict control over operating expenses to maximise mar gins. This proactive ap

(FY24) revenue to RM1.36 billion, an increase of 12% from RM1.21 billion in FY23. Profit after tax for the quarter stood at RM55.2 million, contributing to a

proach enables the company to sustain

record high full year profit after tax amounting to RM207.7 Megat Zariman says Velesto Energy’s RM709 million order book provides a solid foundation for financial stability. Madani Digital Trade launched to help SMEs export to world markets

trade, with a strong focus on Asean, China and India under Malaysia’s trade agreements. “The government is also exploring opportunities in emerging markets such as Latin America and Africa, where demand for Malaysian pro ducts is rising,” he said. Tengku Zafrul noted that intra Asean trade currently stands at only 23–24% of the bloc’s total global trade, leaving significant room for Malaysian businesses to capitalise on the region’s 680-million-strong popu lation. “MDT will serve as a critical tool in strengthening Malaysia’s export presence across these high-potential markets,” he remarked. To ensure sustained growth, he said, the government is looking to

New Industrial Master Plan 2030, which emphasise economic security, inclu sivity and technological adoption. “SMEs make up 97% of Malaysia’s business landscape, yet they still lag in digital adoption due to high costs and limited literacy. MDT will bridge this gap by providing a one-stop platform for export promotion, business matching, and capacity-building,” he said at the launch of MDT. Tengku Zafrul said MDT integrates technologies such as artificial intelli gence, big data and cloud computing to enhance trade efficiency, and also offers training, advisory services and financial support mechanisms to SMEs. Furthermore, the MDT initiative aims to position Malaysian SMEs more competitively in regional and global

expand MDT’s capabilities by inte grating it with global e-commerce platforms, enhancing cross-border digital payment systems, and streng thening cybersecurity measures. “MDT will also align with the Asean Digital Economy Framework Agree ment, which aims to add up to US$2 trillion (RM8.8 trillion) to the regional economy by 2030. Malaysia’s role as Asean Chair this year provides an opportunity to push for greater digital trade harmonisation, which will directly benefit SMEs,” Tengku Zafrul said. He said MDT will play a key role in driving Malaysia’s export growth, which is a crucial contributor to the nation’s gross domestic product. “By streamlining export processes and improving access to global