ARB, a wood product manufacturer that diversified into the information technology (IT) business last year, said it inked a memorandum of understanding (MoU) with the general and life insurance firm today to explore the potential collaboration.
The MoU, which is valid for six months, is expected to lead to East Insurance outsourcing the IT management project to ARB’s wholly-owned subsidiary, ARB Development Sdn Bhd (ARBD).
“The MoU will mark the company’s maiden foray into Cambodia by leveraging on its expertise in the provision of ERP system to East Insurance and serve as a platform for ARBD’s regional expansion in Southeast Asia,” it said in a filing with Bursa Malaysia.
ARB chief executive officer (investment and technology) Datuk Larry Liew Kok Leong said the venture was part of the group’s three-year international expansion roadmap, and it intended to grow its portfolio via similar collaborations.
“It is the board’s vision to increase the overseas’ revenue stream to reduce reliance in a single market,” he added.
Liew said its collaboration with East Insurance demonstrated the trust and recognition for its ERP and IT capabilities and technical skills.
The IT business accounted for slightly more than half of the ARB group’s revenue last year.