AIM Sees Turnover of 20% from Indon Unit.
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Nov 25, 2006 - The Star


Kuala Lumpur: Business process outsourcing solutions provider Advanced Information Marketing Bhd (AIM) expects its new unit in Indonesia to contribute 10% to 20% to its turnover within three years.

Chief executive officer Nyang Koon Seng said this subsidiary, which will have a paid-up capital of about RM500,000 was scheduled to be set up in the first quarter of 2007.

" This new unit's initial focus will be to provide strategic consultancy, information technology (IT) and technology solutions. It will give us a chance to explore the Indonesian market for opportunities to introduce loyalty programmes," he told StarBiz.

Nyang said there were not many service providers like AIM in Indonesia and setting up a unit there would give AIM a "first mover advantage" to tap the market.

"Loyalty programmes is an emerging business. We have similar cultural and language with Indonesia, which gives us advantages," he said, adding that the new unit would be set up in Jakarta.

AIM is one of the few players in Malaysia to provide integrated services as a one-stop solutions centre.

The company now holds 80% market share in this segment. It provides a full range of outsourced loyalty management services to various industry segments, including fast-moving consumer goods, banking and finance, insurance, retail, hospitality, oil and gas and food and beverages.

Nyang also said AIM was looking at setting up a joint venture with an Indian company within the first half of next year.

"We may set up a marketing office in India and explore opportunities with the help of a local partner," he said.

Nyang also said the company would be launching a stored value card by the first quarter of next year.

The card, which would be supported by a bank, would act like a prepaid card where consumers could spend the total amount deposited into the card.

This loyalty card, which is a tied up with a local department store, works on a closed-loop system where consumers would only be allowed to spend within the department store.

Nyang also said company had embarked on a strategic partnership with New Zealand based Incentive Solutions on a new business model, which involves a loyalty programme with small retailers or business.

'Instead of having loyalty programmes that solely involve end-consumers, this new model allows us to service small retailers or business," he said.

Nyang said this would allow AIM to tap that market as well as exchange technology and market information with Incentive Solutions.

He said despite the conservative spending among consumers, AIM was on track to achieve its forecast revenue of RM41.6mil for its financial year ending Dec 31.

In its results for the third quarter ended Sept 30, this Mesdaq-listed company recorded net profit of RM2.24mil on RM12.4mil sales.