We stand on the brink of a technological revolution that will fundamentally alter the way we live, work, and relate to each another.
Technology is a major driving force of economic growth and has now become a key component of a corporation's global business strategy.
As a result of this wave of technologies, the Fourth Industrial Revolution (IR4.0) has paved the way for transformative changes in almost every business sector.
For Naza Corporation Holdings Sdn Bhd (Naza), our NAZA2.0 transformation plan is to develop a way-forward strategy and road map to improve operational and cost efficiencies across all businesses, to create value, and eliminate redundancies for a more streamlined long term sustainability.
The transformation plan will soon be on full gear, akin to successful Merger & Acquisition (M&A) strategies right-sizing the organisation to support new growth.
From the present highly diversified group structure, spread over multiple sectors, NAZA2.0 will seek to transform into a centralised structure across four verticals – Property and Construction, Asset Management, Automotive and Other Businesses.
The Naza Group, now in the midst of a corporate overhaul, will continue to stay invested in the auto business especially when the automotive industry is moving towards electrification, sustainable mobility and connectivity.
While Ferrari, Maserati, Mercedes and Ducati are synonymous with luxury status, Suzuki is meant to address that niche lifestyle market which Naza proudly represents.
The Naza Automotive Group's new distributor company, Naza Eastern Motors Sdn Bhd, carries two iconic models, the Suzuki Swift sport which was introduced back in April 2021 and Suzuki Jimny launched recently. The company is poised to achieve its targeted revenue aided by the government's imposition of vehicles tax exemption until mid 2022.
The Naza Group's property development arm, Naza TTDI Sdn Bhd, is on course to becoming a formidable property developer in Malaysia. A total of six projects have been identified to be launched in the next three years with a gross development value (GDV) of RM3.7 billion. Out of the six projects, two are from its flagship development - the KL Metropolis, with a GDV of RM2.62 billion.
With KL Metropolis as the game-changer, Naza intends to accelerate the development pace of this township to place itself as serious player in the Property Development industry. Conceived as a township that will create and enhance human experience for its community, KL Metropolis aims to integrate trade, commerce, living and transport in one bustling hub.
Naza is also taking the opportunity to unlock the value of its land banks and readjusting its property investment portfolio through sales of some of its non-core assets to focus on those strategic lands for development.
In April this year, Naza TTDI established the Sukuk Murabahah Programme of up to RM300 million in nominal value, which is to be issued over the next 15 years. The company issued the first tranche of this Sukuk, amounting to RM86.25 million in June 2021.
Naza TTDI just closed the order book for Sukuk Tranche 2 and managed to raise RM52.5 million. The proceeds from the issuance of both Tranches will be utilised as working capital for the KL Metropolis project, general corporate purposes and expenses in relation to the issuance of the Sukuk.
Under the fourth vertical of Naza Group's centralised business structure is Other Businesses, with Naza Communications Sdn Bhd, an integrated telecommunications infrastructure provider and wholly-owned subsidiary of the Naza Group.
Taking the cue from 5G investments driven by Digital Nasional Berhad (DNB), Naza Communications is working to unlock this potential with valuable use cases for the nation. This will be undertaken through smart partnerships with the Group's property arm and automotive sector.
Naza's Other Businesses focus area is the Group's presence in the meetings, incentives, convention and exhibition (MICE) business segment.
The Group's iconic Malaysia International Trade & Exhibition Centre (MITEC) re-opened its facilities on 18 October 2021 to offer Malaysian businesses a platform to showcase, connect and trade with buyers, vendors and investors in an endeavour to springboard business recovery.
The re-opening of the Business Events sector, a major contributor to the national economy with 9.2 billion in revenue recorded in 2019, bodes well for SMEs and Malaysian businesses in general.
NAZA2.0 is helmed by a Transformation Committee consisting of experienced external advisers, the board as well as key decision-makers in the management team who work very closely with the shareholders to ensure fair value assessment of the group.
This is key in helping decision-making processes, independent of owner-based sentiments. Several key appointments were made at the Business Group level as part of the transformation programme. The Naza Group has also appointed a Big Four accounting firm to conduct a fair value assessment of the Group.
We started to look at transformation about two years back. However, the Covid-19 pandemic pushed the group to review and "remodel" overall business processes, accelerating this pace of transformation. With all these divestments in place, we need to be selective of how we want to move the group forward.
As the Group progresses in the transformation, Naza has also been proactive in adopting good environmental, social and corporate governance (ESG) practices and obtained certifications for its developments projects.
The Group focuses on driving the business growth to benefit communities, business partners, investors, and employees. Strong and effective corporate governance are implemented transparently across operation areas to cultivate a company culture of integrity, leading to positive performance and a sustainable business overall.