Straits Energy Resources Bhd (formerly known as Straits Inter Logistics Bhd) has entered into a memorandum of understanding (MoU) with Baicells Technologies Co Ltd to collaborate and drive the growing wireless network communication business opportunities of the 4G and 5G rollout and the digital transformation of the oil and gas (O&G) industry, through the Internet of Things (IoT).
Baicells Technologies is an international company, providing technical innovative 4G long-term evolution (LTE) and 5G new radio (NR) access solutions that connect more than 50 countries across the globe, said Straits in a statement on Tuesday (Nov 16).
It said Baicells Technologies’ vision of “connect the unconnected” has led to the establishment of offices across five of the seven continents and the development of 300 patents since its inception in 2014.
Baicells Technologies currently boasts over 700 private LTE networks across the world, with a large percentage of those trusted networks operating within North America.
Straits managing director Datuk Seri Ron Ho Kam Choy said the group looks forward to a successful partnership with Baicells Technologies to explore and tap the huge business potential in the 4G and 5G rollout space, as well as the IoT in Malaysia and regionally.
“The digital economy and technology will be the backbone of the nation’s economy and Straits is mobilising resources rapidly to ride on this vast digital arena, both in the 4G and 5G technology rollout and also in the digital transformation of the O&G industry.
“With our business infrastructure and networking, we are optimistic that we can contribute to the ongoing digitalisation process of both the public and private sector, with the strong backing of Baicells Technologies and other collaboration partners,” he added.
In addition to participating in the 4G and 5G rollout nationwide and regionally, Straits said it intends to drive the digital transformation of the O&G industry by enhancing the usage of automation, surveillance, remote operations and big data analytics through the IoT to achieve better performance and productivity.
Ho noted that the country is expected to see about 80% of the populated areas having 5G network coverage as part of the government’s efforts to reopen the country on a firmer footing.
He said the group’s aim in this highly scalable new digital venture is also very much aligned to the government’s measures to accelerate the development and growth of high speed, affordable and reliable 5G connectivity for the population’s socioeconomic benefits.
“The 5G rollout is expected to kick-start in Kuala Lumpur, Putrajaya and Cyberjaya by the end of 2021, and we hope to be able to contribute to this rollout process.
“This is an exciting time for Straits as being a fast-growing group, it will continuously pursue business opportunities to increase its earnings base and this digital venture with Baicells Technologies will offer vast business opportunities to the group.
“As the government pushes to successfully transform Malaysia into a digitally-driven, high income and a regional leader in the digital economy, Straits is positioning itself towards this digital transformation journey,” added Ho.
Straits's share price closed unchanged at 17 sen on Tuesday, giving the group a market capitalisation of RM132.73 million.