KUALA LUMPUR (June 29): Dagang NeXchange Bhd (DNeX) director Datuk Samsul Husin failed to get re-elected to the board of the group in the annual general meeting (AGM) today, resulting in him relinquishing his position as the executive deputy chairman.

However, Samsul remains the executive chairman of Dagang Net Technologies Sdn Bhd, a wholly-owned subsidiary of DNeX.

At the same time, DNeX executive director Mohd Azhar Mohd Yusof has been appointed the acting group managing director (MD) effective immediately.

In a statement, DNeX said the appointment of Mohd Azhar was made in a special board meeting held after the AGM while the board sought a suitable successor to drive the business in response to changing business conditions.

Mohd Azhar has over 20 years of experience in the field of capital markets and corporate finance, and has held roles at Small Medium Enterprise Development Bank Malaysia Bhd, Felda Global Ventures Holdings Bhd, Bursa Malaysia Bhd, Petroliam Nasional Bhd and the Securities Commission Malaysia.

“To ensure the group remains resilient to ride out the economic uncertainties ahead, there will be a critical focus on streamlining our business activities and focusing our efforts on projects related to our core competencies. This will drive operational efficiency, enabling us to improve our cost structure and enhance profitability.

"We will continue to adopt effective capital management discipline in managing our cash flows. It is now very crucial to focus on rebuilding a robust business with strong income resiliency,” said Mohd Azhar.

Earlier in the AGM, DNeX said it expects a positive outlook ahead for its business as the group ramps up efforts to participate in digitalisation transformation initiatives in the country and the region.

It said rising demand for digitalisation bodes well for DNeX as the group can provide end-to-end innovative services that allow connection and collaboration among governments, businesses and consumers, leveraging such technologies as the blockchain, artificial intelligence, big data analytics and radio frequency identification.

Meanwhile, DNeX chairman Tan Sri Abd Rahman Mamat said the impact of the Covid-19 pandemic on the group had been manageable as most of its projects were ongoing and these will carry DNeX through 2020. "Some other projects are also expected to return to business as usual as the pandemic continues to show signs of easing in the country."

Shares in DNeX closed 2.86% or half a sen higher at 18 sen today, valuing it at RM316.46 million.