Industronics ventures into education business
03 Nov 2022
Industronics Bhd has entered into an agreement to acquire a 50% stake in 5T3M Sdn Bhd for RM1 million, as part of its venture into the education industry.
The acquisition represents a further extension of the collaboration between Industronics and Eduspec Holdings Bhd following the memorandum of agreement signed to set up a special purpose vehicle (SPV) to offer electronic hardware and school equipment to over 10,000 schools in Malaysia.
Following the acquisition of 5T3M, Industronics will set up an SPV known as Advance Education. Aside from that, 5T3M will invest another RM50 million over the next three years to strengthen its Advance Education ecosystem, including training and investment in artificial intelligence (AI) technology, blockchain and data technology to future-proof its advanced education programme.
According to Industronics in a statement on Thursday (Nov 3), 5T3M, an associated company of Eduspec, is Malaysia’s first STEM-based edutainment centre and academy.
Industronics executive director Datuk Chu Boon Tiong noted the company views the education industry as another key sector that will offer strong growth opportunities, with the acquisition of 5T3M marking the group’s first investment in the education business.
He said it is vital to train high-skilled workers and talents as Malaysia competes with other countries in the region to be a high-technology manufacturing hub. Additionally, the lack of local schools and institutions to meet this demand puts Advance Education in a strong position to be the leading player as an education service provider.
“The investment in the Advance Education ecosystem over the next three years will continue to put us at the forefront of the education industry. As we have seen over the last decade, the advancement of technology has disrupted various industries.
“Technological advancement has accelerated rapidly from online shopping, blockchain technology, and AI to Metaverse. This makes it even more important for advanced education programmes to meet this new training demand for the future of work,” added Chu.
Industronics’ shares closed unchanged at eight sen on Thursday, bringing the group a market capitalisation of RM35 million.
Source: The Edge Markets