ARB shares edge higher on Cambodian venture
Shares in ARB Bhd edged up on Tuesday morning after the company announced its $20 million enterprise resource planning (ERP) system and solutions venture into Cambodia.
The wood product manufacturer rose 3.41 per cent, or 1.5 sen to 45.5 sen (0.36 to 11 US cents) with over 5.33 million shares traded. ARB-PA gained 2.22 per cent, or 0.5 sen with 1.75 million shares done.
ARB Bhd, a wood products manufacturer which diversified into information technology a year ago, has via its wholly-owned subsidiary, ARB Development Sdn Bhd (ARBD), on Tuesday inked a memorandum of understanding (MoU) with Cambodia’s East Insurance Plc to implement the ERP system and solutions in the Kingdom.
According to a Bursa Malaysia filing, ARBD will deploy the ERP system and information technology (IT) related hardware and software for East Insurance, while East Insurance shall outsource the IT management project to ARBD.
East Insurance, incorporated in 2017, is principally involved in the provision of general- and life-insurance coverage in Cambodia.
ARB CEO (investment and technology) Datuk Larry Liew Kok Leong said the venture was part of the group’s three-year international expansion roadmap, and it intended to grow its portfolio via similar collaborations.
“The MoU will mark the company’s maiden foray into Cambodia by leveraging on its expertise in the provision of ERP system to East Insurance and serve as a platform for ARBD’s regional expansion in Southeast Asia,” he said.
“Our entry into the Cambodian market marks another significant milestone for our ERP business as we continue to pursue growth in line with our strategy to expand our portfolio and geographical presence."
“This venture is part of ARB’s three-year international expansion roadmap, and we intend to grow our portfolio via similar collaborations.