KUALA LUMPUR: Scicom (MSC) Bhd

is accelerating its international government technology (GovTech) expansion, leveraging a public-private financing model designed to help sovereign governments modernise border security without heavy upfront capital expenditure.

Chief executive officer Datuk Seri Leo Ariyanayakam said that the company is actively pursuing border management and immigration technology contracts across key international markets in South Asia, Southeast Asia, and Africa.

"Our border-management technology is designed as a full enterprise platform. It spans immigration control, biometrics, travel documents, visa and permit issuance, advance passenger screening, enforcement, and case management, with artificial intelligence (AI)-assisted traveller risk assessment integrated into the flow,” he told Bernama.

Beyond the platform’s technical capabilities, Leo said that Scicom’s primary commercial edge lies in its structured financing approach.

"Traditional public sector technology implementations often stall due to budgetary limitations, requiring governments to commit substantial capital upfront. Scicom’s model flips this traditional procurement dynamic on its head.

"Rather than requiring a government to fund the entire technology investment upfront, we can, where appropriate, offer a public-private financing model under which Scicom funds a substantial part, potentially all, of the initial build and earns its return through transaction-based revenues over the concession period,” he said.

For a government facing capital constraints, Leo said border modernisation could shift from being purely a large upfront budget item to a self-funding digital infrastructure.

He said that in terms of financial earnings, the company’s GovTech currently represents a significant contributor to Scicom’s business and earnings, and is strategically positioned for substantial growth in the coming years.

"Directionally, we expect GovTech to become a larger part of Scicom over the coming years.

"The attraction isn’t simply the amount of revenue. It is the quality and duration of that revenue,” he said.

Leo added that a concession-based digital platform could generate recurring or transaction-based income over a long period.

"It’s the difference between a services business that re-bids every few years and an infrastructure business that compounds,” he said.

Leo also acknowledged that pursuing this model requires balance-sheet discipline and corporate patience.

He added that public sector procurement timelines remain lengthy, and capital outlay precedes revenue generation, and that Scicom is prepared to undertake this commitment as part of its long-term strategy leading into 2030.

For the financial year ending June 30, 2026 (FY2026), the group recorded a higher net profit of RM46.927 million from RM20.63 million in FY2025.

Revenue was also firmer at RM301.80 million versus RM198.59 million in the same period last year, with current net assets of RM98 million from 83.46 million previously.

Listed on Bursa Malaysia in September 2005, Scicom has 3,900 employees and offers artificial intelligence (AI)-powered customer experience and digital transformation solutions. - Bernama