KUALA LUMPUR (Feb 13): AwanBiru Technology Bhd (Awantec) has sealed a RM294.27 million deal with REDtone Digital Bhd to provide cloud computing solutions and services which include products such as Google Workspace Enterprise and Google Cloud Platform for the government’s unified communication and collaboration project, known as MyGovUC3.0. 

The strategic collaboration marks a significant milestone for Awantec as the sole managed service provider (MSP) for Google Cloud in Malaysia under the government’s Cloud Framework Agreement (CFA). 

Awantec told Bursa Malaysia that its wholly owned unit Awantec Systems Sdn Bhd (ASSB) inked a service agreement with REDtone Digital’s wholly owned subsidiary REDtone Engineering & Network Services Sdn Bhd (REDtone) on Monday (Feb 12). 

Just last week REDtone secured the MyGovUC 3.0 contract worth RM398.1 million from the Malaysian Administrative Modernisation and Management Planning Unit (Mampu) to provide unified communications solutions. 

According to Awantec, the total payment from REDtone to ASSB for the services amounts to RM294.27 million, excluding any applicable taxes imposed by the relevant authorities. The service agreement covers a period of 57.5 months, starting on Feb 14, 2024 and concluding on Nov 30, 2028. 

The group said, MyGovUC 3.0 is a seamless continuation of the highly successful MyGovUC 2.0 project to increase the productivity and quality of public service delivery, thus, this collaboration demonstrates Awantec's critical role in pioneering digital transformation efforts and improving operations. 

Its chief executive officer Azlan Zainal Abidin, meanwhile, commented in a statement “Awantec's designation as the premier partner with MSP status for Google Cloud in Malaysia underscores our capabilities and unwavering commitment to bolster the government's digital transformation plan. With two decades of experience in successfully executing large-scale technology projects, we are confident that this collaboration will boost digitalisation in the public sector".

Trading in the shares of Awantec was halted for one hour from 9am on Tuesday.

It is worth noting that Awantec has been categorised as an “affected listed issuer” by Bursa Malaysia after it lost a major partnership deal in January 2021. 

Previously, the primary revenue stream for Awantec was derived from its collaboration with Microsoft, where the group’s subsidiary, Prestariang System Sdn Bhd, held the exclusive status of Microsoft Licensing Solutions Provider for all government agencies and public training institutes in the country. This Microsoft solutions contract accounted for 90% of Awantec's revenue back then. 

Awantec has since embarked on a business transformation plan and is looking for fresh opportunities. The company has partnered with Google to provide cloud services and Skillsoft to offer e-learning services.

For the first quarter ended Sept 30, 2023, Awantec posted RM404,000 net profit — its second consecutive quarterly profit — against RM1.4 million net loss in the previous year’s corresponding quarter, mainly contributed by the talent segment through Awantec’s strategic partnership with Human Resource Development Corp (HRDC). 

Quarterly revenue, however, decreased by 9.02% to RM16.47 million from RM18.1 million due to lower revenue contribution from software and services segment. 

At the time of writing on Tuesday, shares of Awantec climbed 4.5 sen or 13.04% to 39 sen, giving it a market capitalisation of RM303.66 million. 

REDtone Digital, which is 47.76%-owned by Berjaya Corp Bhd, rose one sen or 1.03% to 98 sen, valuing the group at RM766.8 million. The counter has risen over 34% year-to-date.