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亚马逊云账号(www.2km.me)_Short position: Keeping up with the times, DNB's 5G and crystal ball gazing

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亚马逊云账号

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Keeping up with the times

SOME eyebrows were raised this week when Focus Dynamics Group Bhd, a food and beverage company and Permaju Industries Bhd, a vehicle distributor and property company, said they were venturing into the electric vehicle (EV) business.

The EV sector is an up-and-coming industry which is being heavily promoted and advocated by many parties, including governments around the world.

It wasn’t too long ago that both these listed companies announced plans to venture into the rubber glove business, which no doubt was the business to be in over the last couple of years.

In the case of Permaju, the group was in discussions for a potential glove manufacturing joint business with another public-listed company, Anzo Holdings Bhd, but that did not materialise.

Now that the glove euphoria has cooled down, it is the EV sector that Focus and Permaju have set their eyes on.

The companies are planning to set up a showroom with EV charging facilities in Kuala Lumpur.

“We want to be the Tesla of Asean,” Permaju executive director Tang Boon Koon Tang said recently.

It is yet unclear what skills set and technical knowhow these companies have to see through their ambitious Tesla-like plans.

Perhaps that is in the making. What is important is for there to be a route to profitability when companies embark on new ventures.

Investors ought to study the plans of such companies to determine if their plans are too ambitious and whether these organisations have the right skills set, funds and generally the ability to carry their plans through.

That said, being quick to pivot is not necessarily a bad thing for companies. In fact, when done right, it is good and essential.

Again, the question is, do these companies have the actual ability to carry out what they have promised?

A company’s track record and past business dealings can usually provide some insight to this.

DNB’s 5G

GOING by a recent wire report, there seems to be a lack of support by industry players to take up usage of the country’s planned 5G infrastructure to be built by government owned Digital Nasional Bhd. Such rhetoric is not new.

The government’s decision to build out a state-owned 5G infrastructure has changed the dynamics of the sector. Mobile service operators have been used to building their own infrastructure although they have also gotten used to the idea of sharing some of that among themselves.

However, now that the entire 5G spectrum and infrastructure rollout is taken out of their hands, they seem to be up in arms.

What has transpired after that news story appeared is that DNB had not even completed its initial discussions with the mobile operators for leasing of the 5G infrastructure.

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