18/05/2026

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MONDAY | MAY 18, 2026

Adnex eyes higher-value segments, overseas push

Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

PETALING JAYA: Adnex Group Bhd is seeing a tangible lift in brand visibility and deal flow, positioning the interior fit-out specialist for its next growth phase, with management signalling a measured shift into higher-value sectors and eventual expansion abroad. Managing director Adrian Kan said its listing on the ACE Market since March has provided the group with a stronger platform to engage with multinational clients and larger projects, translating into increased enquiries. “The listing is a big milestone for us. It gives us a bigger platform, and we can already see the impact in terms of branding and market recognition,” he told SunBiz in an exclusive interview. Kan noted that beyond multinational corporations, Adnex is attracting interest from Malaysian listed companies, reflecting a broadening client base that could support more consistent earnings growth. While the group’s core interior fit-out segment for corporate offices remains its main earnings driver, contributing about 80% of projects in 2025, Adnex is actively scaling its presence in healthcare and hospitality, which currently account for about 10% each. Chief operating officer Amber Wong said these segments are undergoing structural shifts that favour higher-quality fit-outs, particularly in healthcare, where patient expectations are rising. “Healthcare environ ments today are evolving. Hospitals are no longer purely functional spaces, they are designed to feel more like hotels or lifestyle environments.” This trend is expected to drive demand for premium interior solutions, offering better margins compared to traditional office projects. The hospitality segment is also gaining traction, supported by a rebound in tourism and refurbishment cycles for ageing hotel assets. Wong noted that consumer preference for newer, well-maintained accommodations is prompting hotel operators to upgrade or reposition properties. Against the backdrop of Visit Malaysia 2026 and shifting travel patterns amid geopolitical tensions, Adnex is seeing indirect benefits, particularly from increased domestic eco nomic activity. “We are receiving more enquiries not just

o Listing on ACE Market has raised group’s brand and market profile among multinational corporations and local listed companies alike

from hotels, but also from sectors like food and beverage, where business is improving and operators are expanding outlets,” Wong said. She added that reduced outbound travel is, in some cases, supporting local tourism and hospitality demand, feeding into Adnex’s pipeline of refurbishment and new build projects. On profitability, the group is maintaining a cautious but confident stance. Kan said margins, which stood at around 10% profit before tax historically, are sustainable with disciplined execution and a stronger focus on project selection. “Growth alone is not enough. What matters is how well we control execution, costing and product quality,” he said. Adnex is also refining its procurement strategy, including sourcing certain materials from China despite higher logistics costs, to balance quality and pricing. The group is increasingly prioritising projects with stronger value propositions to defend margins amid cost pressures. Supply chain risks and pricing volatility remain key concerns, particularly given ongoing geopolitical uncertainties. However, Wong noted that Adnex’s relatively short project cycle of three to six months allows for quicker pricing adjust ments and risk management. “We closely monitor material supply, timelines and costs. Our turnaround is relatively fast, so we can adapt to changes more quickly,” she said, adding that the group continues to leverage local suppliers and

subcontractors to mitigate disruptions. As at end-January, Adnex’s unbilled order book stood at RM66 million, providing earnings visibility for the near term. While current figures remain undisclosed pending its upcoming quarterly report, management indicated that project inflows remain steady. Looking ahead, Adnex’s immediate priority is growth, albeit with discipline. “It’s not just about doing more projects, but doing the right projects at the right margin,” Kan said. The group has no immediate plans for asset monetisation or acquisitions within the first year post-listing, opting instead to focus on strengthening its core operations and delivering on initial public offering com mitments. That said, Kan did not rule out potential acquisitions beyond the one-year horizon, as part of a longer-term expansion strategy. A key catalyst for re-rating over the next 12 months would be the securing of larger contracts, which could significantly scale revenue and elevate the company’s market positioning. At the same time, Adnex is laying the groundwork for international expansion, targeting overseas markets as early as 2027. “We are looking at expanding inter nationally as a new growth opportunity. The focus is on building strong, sustainable

Kan says Adnex is targeting robust growth in the current financial year. growth,” Kan said, adding that the group is targeting robust growth in the current financial year. Despite seasonal fluctuations that typically weigh on first-quarter performance due to festive periods, management remains opti mistic. “We let the results speak for themselves. That is what drives us,” Kan said.

Open DC sees northern corridor as gateway to Asean digital connectivity KUALA LUMPUR: Open DC Sdn Bhd is positioning Malaysia’s northern corridor as a strategic gateway for artificial intelligence ready infrastructure and regional data traffic as Asean’s digital economy drives demand for faster and more resilient interconnection infrastructure. infrastructure growth. “Our presence in PE2 in Bayan Lepas (Penang) and D8-1 in Delapan (Kedah) is a testament to our commitment to the nation’s AI agenda. Wong said Open DC’s locations near both the Singapore corridor and the Thailand border position Malaysia as a strategic interconnection bridge within Asean, enabling regional traffic, content and digital services to move more efficiently across markets. enhances connectivity efficiency, while D8 1’s location, about 5km from the Sadao border crossing, places it close to one of Thailand’s busiest trade gateways.

Wong said Open DC’s carrier-neutral ecosystem and the DE-CIX (Deutscher Commercial Internet Exchange) Malaysia peering model enable multiple networks, cloud providers and enterprises to inter connect directly through a single exchange point, improving route efficiency and lowering latency. Participants gain access to more than 142 active Autonomous System Numbers in Malaysia, as well as wider global connectivity through DE-CIX’s ecosystem, he said. “These combinations put us in a unique position to help the north compete more meaningfully for regional cloud, content and enterprise demand, not just as a location with available space, but as a location with real digital relevance,” he added. Wong said the company is also exploring plans for a pre-initial public offering, although the roadmap remains premature for public disclosure.

“What gives us an added advantage is that Open DC is not approaching this purely as a real estate or facility play, but through AI-ready infrastructure, strategic border location, carrier neutrality and an interconnection-led ap proach backed by strong network heritage,” he told Bernama in an interview recently. In April 2022, Open DC partnered with Northern Gateway Sdn Bhd, a wholly owned sub

He said AI-ready infrastructure increasingly depends on network density, proximity and seamless data exchange capabilities across mul-tiple ecosystems. Wong said the company’s D8-1 facility strengthens the Indochina Malaysia-Singapore digital trade corridor by improving latency, lowering transit costs and en hancing route resilience across the

Founded in 2015, Open DC is a data centre solutions provider and a wholly owned subsidiary of Extreme Broadband Sdn Bhd, an internet service provider licensed by the Malaysian Communications and Multimedia Commission. Open DC currently operates six data centres nationwide, offering more than 360,000 square feet of data centre space and over 80 megawatts of power capacity. Open DC founder/managing director Wong Weng Yew ( pic ) said the company’s focus for the second half of 2026 is centred on advancing the northern region as a platform for digital infrastructure growth and regional interconnection. “As we move into the second half of 2026, Open DC’s focus is on advancing the northern region as a regional platform for digital

region. The facility also reduces unnecessary backhaul through more direct peering and shorter routing paths, while strengthening route density and redundancy across the northern corridor, he added. Wong said the proximity of the Songkhla and Satun cable landing stations further

sidiary of the Minister of Finance Inc, to develop a Tier 3 data centre in the Delapan Special Border Economic Zone at Bukit Kayu Hitam, Kedah, along the Malaysia-Thailand border. The project has since been completed after initially being targeted for completion in the second quarter of this year.