Source: Media Outreach
Upcoming listing marks the first Malaysian-owned HCM Solutions provider on BURSA’s ACE
Recent public oversubscription of company’s shares signal market appetite for cloud, AI-based HCM solutions and employee engagement platforms
CEO Cllement Tan carves niche and becomes youngest founder entrepreneur to reach IPO in recent times, spotlighting HR Tech as the next frontier in business digitalisation
More than 50 per cent of funding to be used for Product Expansion and R&D, leapfrogging Malaysia’s leading role in the development of emerging tech
CYBERJAYA, MALAYSIA – Media OutReach – 9 July 2021 – RAMSSOL Group Berhad (RAMSSOL), an innovative, digital human capital management (HCM) solutions provider aims to advance the adoption of Human Resource Technology (HR Tech) in and mainstream digitalisation of HR functions as part of its Southeast Asia focused IPO agenda. The company’s ambitions come at a time when there is an accelerated need for organisations to get back on a growth track empowered by its key enablers – talent and technology.
An independent study by Smith Zander has shown accelerated expansion of the HCM industry, from USD226.86 million (RM975.68 million) in 2017 to USD257.69 million (RM1.08 billion) in 2020, growing at a compound annual growth rate (CAGR) of 4.34%. The study, covering Malaysia, Singapore, Vietnam, Thailand, Indonesia and the Philippines, recognises today’s expanded HCM scope of total talent management, employee engagement and collaboration, cloud and mobile capabilities, and artificial intelligence (AI) and analytics – aside from traditional functions such as payroll, recruitment, and time tracking.
Helmed by Cllement Tan, Group Managing Director and Chief Executive Officer, the 14-year industry veteran and the youngest local technopreneur to list on BURSA, explains, “HR practitioners today are challenged in attracting and retaining top talent and establishing talent pipeline for agile organisations. The disconnect between talent touchpoints such as hiring, learning, performance, career, succession planning, and engagement has never been more pronounced. HR digitalisation and HCM transformation, therefore, must be a part of an enterprise-wide agenda for business viability, ensuring that one’s HR tech infrastructure provides strategic insights to key decision-makers.”
Employee engagement and collaboration platforms as differentiators in the talent war
There has been a surge in the demand for employee engagement and collaboration platforms since the outbreak of COVID-19, which makes RAMSSOL’s in-house mobile application, Feet’s, immediately relevant in today’s context of a hybrid, multigenerational and digitally-savvy workforce. As companies become more open to adopting intelligent technologies and creating a best-in-class employee experience, the app enables connected, happier and productive workplaces by modernising communications between employees. Recent integration with Zoom allows users to access or create Zoom meetings or webinars, bringing together on-site and virtual attendees without having to switch out of Feet’s mobile application or invest in additional enterprise subscription fees.
Elaborating on RAMSSOL’s HCM technology applications, Cllement said, “Feet’s has additionally adopted gamification elements to drive proactive and interactive participation no matter where employees are based, complemented by other built-in functions such as forums, peer recognition tools, suggestion platforms and meal groups. Our other signature solution is in the area of collaboration tech offered through LARK. Acting as a virtual office, LARK facilitates real-time communications and collaboration between employees, hosting several work-related functions such as document creation and editing as well as cloud storage and file sharing.
Measured in terms of sales revenue, the Smith Zander report shows the employee engagement platforms market chalked a growth from USD1.77 million (RM7.61 million) in 2017 to USD2.67 million (RM11.22 million) in 2020 at a CAGR of 14.69 per cent. On the other hand, the size of the collaboration platforms market grew from USD249.95 million (RM1.07 billion) in 2017 to USD400.90 million (RM1.68 billion) in 2020 at a CAGR of 17.06 per cent – and combined, they reflect a purposeful shift in HR practises as companies aspire to create a competitive edge in the looming talent war.
Demand in AI and real-time data fuels RM10.4M IPO allocation in regional Product Expansion and R&D
Representing more than 50 per cent of RAMSSOL’s RM25.1M total IPO target, the company’s focus on regional product expansion and R&D is buoyed by the adoption of HR Tech in the Asia Pacific[1] that has been in double-digits for the last three years. The company looks to further mainstream HR digitalisation and workforce management technologies among SMEs, billed as the fastest-growing segment among all new HR Tech adopters – creating more equitable economic recovery opportunities in SEA.
“What is certain is that technology will continue to play an essential role in helping HR teams build sustainable organisations and drive operational efficiencies. As practitioners turn to cloud and AI-based solutions, RAMSSOL’s product development roadmap anchored on introducing new functionalities is timely. This includes enhancing Feet’s with AI technology and developing bolt-on modules for our cloud-based HCM solutions,” emphasises Cllement.
Leveraging an international clientele that includes Megatech Education, Export Import Bank of Thailand, CapitaLand Business Services Pte Ltd, Bank Of Ayudhya Public Co., Ltd and PT Sigma Solusi Integrasi, RAMSSOL’s expansion agenda is backed by HR Tech expertise spanning over a decade, and a robust technology stack. The company’s IPO scheduled for 13 July 2021 marks the first move of its kind for a homegrown HCM solutions provider and allows it to expand its existing SEA footprint into the Philippines.
“We are fortunate to have earned the trust of many customers over the last 12 years of our operations and excited for what lies ahead for RAMSSOL. With the push for greater operational and cross-departmental efficiency expected to drive demand for HCM solutions, we look forward to establishing many more integrated, digitalised HR environments, and build next-gen, fit-for-future enterprise organisations as part of our commitment to “Advancing People through Technology,” Cllement concludes.
Currently operating in Malaysia, Singapore, Indonesia, Vietnam and Thailand, RAMSSOL’s business consists of three principal activities: HCM and Student Management Solutions; IT Staff Augmentation Services; and the provision of HCM Technology Applications featuring products such as Feet’s, Lark and Zoom. The company was recently awarded the Best SME in HR Solutions Provider at the SEBA 2020 Awards.
As of FYE2020, RAMSSOL’s total revenue of RM25.33 million saw HCM technology applications contribute RM9.1 million or 35.9 per cent, up from a marginal contribution in 2019. The HCM technology applications arm, RAMSSOL’s other key business principle that includes employee engagement and collaboration solutions, registered a high gross profit margin of 90.4 per cent. The company’s recent balloting with an offer of 11.20 million new shares at 45 sen each to the Malaysian public was oversubscribed by 102.88 times, receiving 19,564 applications for 1.16 billion new shares valued at RM523.54mil.
– Published and distributed with permission of Media-Outreach.com.
