Mitsui to expand and deepen LGMS' regional customer base after acquiring a strategic 25% stake

KUALA LUMPUR, 27 April 2023:  Mitsui & Co., Ltd. (‘Mitsui’) of Japan is forming a strategic partnership with ACE-listed LGMS Berhad (“LGMS” 聯國名仕 集團) to broaden and deepen LGMS’ footprint throughout the Asia-Pacific region. The partnership is facilitated by Mitsui acquiring a stake from LGMS’ stakeholders.

[Pic above - Mitsui General Manager (Digital Solution Business Division) John Kenichi Kogiku (centre right) shaking hands with LGMS Executive Chairman Fong Choong Fook (centre left). Also present at the Signing Ceremony were (from left to right): Mitsui General Manager (Human Resources & Administration Division) Kazuyuki Otaku, LGMS Executive Director Goh Soon Sei, Mitsui & Co. (Malaysia) Sdn Bhd Managing Director Hiromitsu Narukama and Mitsui General Manager (AI and Cybersecurity Department) Takashi Masuda.]

In an announcement to the stock exchange, LGMS said that Mitsui had acquired an additional 23% stake in LGMS from Executive Chairman Fong Choong Fook and Executive Director Goh Soon Sei to supplement the 2% stake Mitsui held previously.

This development results in Mitsui currently holding a total of 25% equity interest in LGMS, which Mitsui General Manager of Digital Solution Business Division John Kenichi Kogiku described as being a ‘win – win’ situation for both Mitsui and LGMS, and a ‘strategic partnership set to broaden and deepen LGMS’ customer base across the region’.

This strategic partnership is expected to provide world-class levels of professional cybersecurity services throughout the Asia-Pacific region. The partnership will leverage the expertise of LGMS' highly skilled cybersecurity professionals and Mitsui's extensive global network and experience in the cybersecurity industry.

“With digital technology driving business innovation in every industry, digital transformation (DX) has become a vital factor for maintaining and enhancing a company’s competitiveness. DX cannot be achieved without using IT, but the increased use of IT also leads to heightened security risks,” said Kogiku.

“Companies need skilled cybersecurity professionals to protect their information systems and assets from cyberattacks and other threats, but the global shortage of qualified personnel has become a societal issue given the rapid increase in cybercrime,” he added.

LGMS is today a leading cybersecurity service provider in Malaysia, where DX is advancing rapidly.

“Highly skilled cybersecurity professionals at LGMS provide advanced penetration testing and other security services to various enterprises, including major businesses and government bodies,” said Kogiku.

LGMS’ clientele include local and international clients, first tier banks, payment gateways, and telecommunications companies. On the international front, LGMS’s customers include various Fortune 500 companies.

At its end, Mitsui also has a wholly-owned cybersecurity subsidiary – Mitsui Bussan Secure Directions, Inc. (MBSD) established in 2001 – which today provides Japanese top quality penetration testing, consulting, and managed services for Japanese blue-chip clients.

Being one of the Japan’s most diversified conglomerates, the Mitsui Group today has a global footprint of 127 offices in 63 countries spanning 6 continents. In the Asia-Pacific region, Mitsui is represented through its 26 offices located in 15 countries.

Mitsui’s business record in Malaysia stretches over 60 years. The Mitsui Group has successfully undertaken and/or invested in various Malaysian industries, such as gas supply (Gas Malaysia Berhad), palm oil (Palm-Oreo Sdn Bhd), airport (KLIA Satellite Terminal), infrastructure (Rawang-Ipoh Electrification & Double Track Rail and the Port Dickson Electric Generation Plant), car manufacturing (Perodua) healthcare (IHH Healthcare Berhad) and the digital economy (Axiata Digital Services Sdn Bhd), as well as property development (Sime Darby Property MIT Development Sdn Bhd).

LGMS is a Malaysian cybersecurity company that holds multiple industry credentials, including being the only PCI accredited ASV and QSA in Malaysia. The company has an ISO 17025 Accredited Penetration Testing Lab and is recognised by TÜV AUSTRIA Group for reliable and valid testing results. LGMS is a member of the Center for Internet Security and is the first Malaysian cyber security consultancy company certified by TÜV Nord in ISO/IEC 27001:2013.

The company also has partnerships with top cloud providers and has won international and local awards, including being recognised as the ‘Tech Excellence Award for Cybersecurity’ by ASOCIO and labeled as Malaysia's ‘Cybersecurity Company of the Year’ by Cybersecurity Malaysia. LGMS was also named a ‘Leader’ in strategic and technical security services by ISG, alongside other major companies such as IBM, Accenture, KPMG, Deloitte, and PWC.

“Mitsui's emergence as a substantial shareholder of LGMS would result in a partnership that provides ‘world class’ levels of professional cybersecurity services to the entire region,” said Fong. “We are extremely proud of this LGMS-Mitsui partnership which is a formidable one to realise sustainable growth in the years and decades ahead.”

Immediate initiatives in the pipeline include rolling out the LGMS PCI Compliance Wizard (code name: ‘Mercury’) for e-commerce merchants throughout the region. The Wizard platform, developed in-house by LGMS and which owns the Intellectual Property (IP), is supported and powered by official PCI Qualified Security Assessors (QSA) and simplifies e-payment compliance processes via step-by-step guidance.

Fong added that LGMS would continue investing in advanced cybersecurity research and development (R&D), talent building and intellectual property (IP) creation to meet growth targets. 

Kogiku concluded: “Through the global expansion of our cybersecurity business, Mitsui will continue supporting digital infrastructure and services with the aim of enhancing people’s quality of life. Concurrently, Mitsui strives to also protect businesses from cyber threats so that they are constantly protected and safe, and able to operate productively and efficiently.”

Source: LGMS Berhad