Interview with Hafriz Fayadh, Managing Director, Exceltech Solutions

08 Dec Interview with Hafriz Fayadh, Managing Director, Exceltech Solutions

What new trends and challenges are emerging in Brunei’s energy sector in 2024? How are key stakeholders like Exceltech Solutions Sdn Bhd navigating these hurdles and transforming them into opportunities?

The oil and gas industry plays a vital role in the economy and will likely remain so for some time. A key challenge we face is the volatility of commodity prices, which are influenced by market and geopolitical factors. Exceltech Solutions Sdn Bhdhas always focused on services for the oil and gas sector. When the industry thrives, so do we, but when it faces downturns, we bolster our defenses.

Diversification has been a key strategy in recent years to strengthen our business. For example, we have expanded into the utility sector, producing instruments for the telco industry and are venturing into renewable services. While these sectors still make up a small part of our business, they help reduce our reliance on oil and gas. Our expertise in oil and gas has also allowed us to transfer valuable skills to new industries, such as safety protocols in the utility and power generation sectors. This has allowed us to expand without starting from scratch.

Exceltech Solutions Sdn Bhd has evolved into a comprehensive service provider and was recognized at the Association of Southeast Asian Nations (ASEAN) Business Awards for its contributions to the energy sector. Can you provide an overview of Exceltech’s current operations and services and major milestones?

Exceltech Solutions Sdn Bhd provides operations and maintenance services for oil and gas producers who possess both onshore and offshore facilities. When we started we had just three employees. As a startup, we had to multitask and wear many hats. Since 2012, our growth has been steady and positive, with key milestones like winning the ASEAN Business Award, which showed our competitiveness in the region. We currently have over 100 employees with multiple opportunities in the pipeline that will create jobs and add to our growth in 2025.

We are also proud of our low employee turnover compared with the industry average, with some who have been with us since the beginning.. Personally, I was honored to win the Young Entrepreneur of the Year Award in 2021, alongside the ASEAN Business Award for the company. We have recently secured major contracts in the oil and gas, telco and government sectors. Looking ahead, our next ambition is expanding beyond Brunei with a key focus on regional growth in ASEAN.

Brunei’s Digital Economy master plan aims to establish the nation as a Smart Nation by 2025. How would you assess the level of digitization in Brunei’s energy industry? What role is Exceltech Solutions Sdn Bhd playing in advancing technological adoption across the country’s industrial value chain?

We now live in a digitally-dependent and connected environment both personally and professionally and this transformation has not eluded the oil and gas industry. Oil and gas producers are looking at more efficient ways of optimizing production and some are now autonomously managed with digital systems, aligning with the government’s push for digitalization to boost productivity. As a service provider, we are one of the participants in the government’s Unified Smart Metering Systems, which provides a platform to improve power management, monitoring and billing collection for water and electricity users in the country. These meters enable users to track their energy usage, promoting efficiency and better awareness. This initiative also digitalizes the government’s revenue collection and is a key part of the ongoing transformation.

Brunei has put a large focus on sustainability under its Vision 2035 program. How crucial are the UN’s Sustainability Goals for businesses in Brunei and the region? What actions has Exceltech taken to decarbonize the energy sector and foster an equitable and environmentally conscious business ecosystem?

Sustainability is crucial moving forward and we risk falling behind if we don’t keep up with our efforts. As a member of the APEC Business Advisory Council, sustainability is a key topic at every session. While Brunei’s industries are still adopting these policies, sectors like banking, telco and oil and gas are making good progress. However, SMEs face different challenges and more support is needed to help them embrace these initiatives.

For us, adopting sustainability was a strategic choice to stay competitive locally and regionally. We have applied for ISO 9001, 14001 and 45001 certifications to demonstrate our commitment to quality, responsible business practices and reducing our carbon footprint. The Brunei government is also encouraging companies to adopt greener practices and we are proud to contribute to this effort.

Despite strong institutions the energy sector continues to face challenges in sourcing specialized talent. How would you evaluate Brunei’s current talent pool in the energy industry? What initiatives has Exceltech Solutions Sdn Bhd undertaken to upskill the workforce?

We have seen positive growth in our workforce, with over 73% of our employees local Bruneians, which is above average for our specialized industry. While such industries typically rely on external talents, we invest in our employees and develop local skills. During COVID-19, when travel restrictions were in place, we focused on qualifying local technicians. This shift reduced our dependence on external OEMs wherever possible and allowed us to provide faster, in-country service. Clients appreciate this, as it helps them meet nationalization targets and supports the local economy. It’s a win for both us and our clients.

As Brunei’s representative on the Asia-Pacific Economic Cooperation Business Advisory Council (ABAC), you have championed the importance of regional integration in supporting economic diversification. How critical is regional cooperation in Brunei’s efforts to fulfil its Vision 2035 agenda?

Trade agreements between nations are crucial to keep us competitive, make Brunei an attractive place to do business, reduce tariffs and entry barriers. They also encourage local companies to export, supporting the government’s diversification strategy. For example, as an APEC member, Bruneihas direct access to 20 other economies, boosting our business opportunities. Additionally, ASEAN is the world’s fastest-growing economic bloc, with access to 680 million people. These agreements position companies like us strategically in a highly competitive global market and without active participation, our company risks falling behind. Brunei offers a stable economy and political environment, with the World Bank once naming it the most stable macro economy. While the oil and gas industry is robust, it’s not yet fully diversified. Opportunities exist in sectors like downstream oil and gas, agriculture, education, tourism and ICT.

Brunei’s modest economy and GDP, compared to ASEAN neighbors, attract companies with a conservative investment outlook. Personally, my fundraising experience has shown that companies with similar cultural values and risk-averse approaches feel comfortable doing business here, as Brunei provides a stable environment for cautious investors. Our growth has been driven by strong partnerships with international companies who can offer sound technical and proven solutions. These companies are business-friendly, with fast decision-making and minimal bureaucracy, which aligns with our needs as a private company. We seek partners of similar size who are eager to invest in Brunei, creating a win-win situation. I remain open to future partnerships where both parties can benefit.

Exceltech Solutions Sdn Bhd is actively diversifying beyond energy services and expanding its footprint in regional markets. What sectors and international markets present the most significant opportunities for Exceltech in 2025 and beyond and what steps are necessary to realize the company’s potential over the next decade?

We have a strong, qualified and versatile workforce, with excellent English proficiency, which helps us expand into international markets. Our high literacy rate, educated workforce and technical expertise/experience enable us to successfully export knowledge and personnel. Through mutual partnerships, we benefit from bilateral agreements, where we have the ability to send our qualified technicians abroad to support projects when the opportunity arises. This creates a mutually beneficial partnership, with both sides leveraging each other’s expertise.

What are your priorities as a top business leader in 2025? What vision do you have for Brunei’s industrial future and what critical challenges must be addressed to achieve this vision?

We need to create a more business-friendly environment by prioritizing ease of doing business. This enhances productivity, allows businesses to make faster decisions, raise capital, smoother permit applications and eliminates bureaucracy, so businesses can focus on their strengths. Collaboration between the private and public sectors is key to developing policies that support growth. While progress has been made, further improvements will benefit the entire economy.

Brunei is strategically positioned within this ASEAN region. While sometimes overlooked by investors, Brunei is a market with significant opportunities, especially in industries such as downstream oil and gas, agriculture, education, ICT and tourism. Our non-oil and gas sector has shown strong growth, highlighting the success of the government’s diversification strategy. To maintain this momentum, we need to promote Brunei more widely and attract investors to participate in our growth.

There is also a need to address skills gaps and expand human capital. With our participation in free trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, Brunei is open for business and the timing is right. By raising Brunei’s profile, we can position ourselves as a competitive option for investors in ASEAN.