Ceased Operations of loss making IT companies

CMS realised that its momentum would be better maintained without involvement in this aspect of the information, communication and technology (ICT) sector. It had originally entered into a share sale agreement with local information technology company I-Systems Group Bhd in early 2005 for the acquisition of shares amounting to just over RM18 million, representing a 51% equity interest in the MSC-status company. It was thought at the time that this would strengthen CMS’ foray into the ICT sector by leveraging on I-System Group Bhd’s experienced R&D team, capabilities in developing and marketing, and cross-selling of new products. However, this did not turn out to be the case. So, in 2010, CMS made the difficult decision to cease the operations of its technology subsidiary, CMS I-Systems Berhad, which had incurred considerable losses for some time. The subsidiary’s employees were retrenched with compensation and parts of its business sold off.