KUALA LUMPUR (Oct 23): Dagang NeXchange Bhd (DNeX) is partnering with Zhongheguoji Construction Group Co Ltd (CSI) to access high tech IT solutions from China as well as to expand its geographical footprint into the Middle East and North Africa (MENA) region.

In a statement on Monday, DNeX said it has entered into a joint venture agreement with CSI for the establishment of a joint venture enterprise (JVE) to source for state-of-the-art technology and solutions from China.

Under phase one of the JVE, DNeX via CSI, will secure access to Smart City technology from Chinese technology partners which include technology company Tencent and Tsinghua University Urban Institute under Tsinghua University.

"Beyond this, the JVE is also set to expand its technological scope by partnering with other Chinese entities specialising in various sectors such as supply chain and logistics, intelligent transportation, electrical manufacturing, clean energy, data centers and equipment," DNeX added.

In addition to the JVE, DNeX, through subsidiaries SealNet Sdn Bhd and DNeX MENA Sdn Bhd, also signed a collaboration agreement with Saudi-based Ajlan & Bros Information Systems Technology (Ajlan Tech) and CSI to explore opportunities in commercial projects in Saudi Arabia in offering Smart City solutions and other relevant technology solutions.

DNeX executive chairman Tan Sri Syed Zainal Abidin Syed Mohamed Tahir said the agreements will grant DNeX access to China’s cutting-edge technology solutions including Smart City Applications, such as e-government services and e-commerce, as well as emerging technologies like the Internet of Things, Artificial Intelligence and blockchain.

The agreements will also pave the way for DNeX's expansion in the MENA region, he said.

"Combining these technological assets with DNeX’s existing strengths in enterprise applications, system integration, project management, and logistics solutions, we are uniquely equipped to deliver a comprehensive suite of digital transformation solutions.

"Given DNeX’s track record of executing large-scale government and enterprise projects, we are fully capable of providing end-to-end execution capabilities for large scale IT projects encompassing Smart City developments, e-government service offerings and system integration works," Syed Zainal Abidin said.

"The collaborative synergies among Ajlan & Bros Holding Group, DNeX and DNeX’s China partners led by CSI, offer a compelling value proposition with considerable global reach, extending beyond Saudi Arabia to the broader MENA region, and even taking this expertise to bid for relevant large-scale projects in Malaysia.

"Looking ahead, the market potential is attractive, and our partnership is designed to leverage on these global trends in digital transformation. We are actively exploring and bidding for a wider range of IT projects with a specific focus on projects in Smart City infrastructure, advancements in e-government services and expansion of digital commerce," he added.

Shares of DNeX were unchanged to close at 41.5 sen apiece on Monday, with a market capitalisation of RM1.29 billion.