MyEG aborts plans to invest in start-ups, venture into Kazakhstan - Business News | The Star Online

ADVERTISEMENT

MyEG aborts plans to invest in start-ups, venture into Kazakhstan


MyEG had planned to venture into Kazakhstan by leveraging on its extensive experience in delivering online government services in Malaysia.

MyEG had planned to venture into Kazakhstan by leveraging on its extensive experience in delivering online government services in Malaysia.

KUALA LUMPUR: My EG Services Bhd (MyEG) has aborted two proposed joint-venture (JV) projects -- one to set up a fund to invest in technology start-ups and the other to introduce e-Government services in Kazakhstan.

In filings with Bursa Malaysia, the e-Government services provider said it and Cradle Fund Sdn Bhd on Tuesday mutually agreed to terminate the memorandum of understanding (MoU) signed in October 2013 to establish a RM60mil JV fund to invest in equity or equity-oriented early stage technology start-up corporations.

Under the aborted plan, Cradle Fund was to invest RM40mil while MyEG was to put in the remaining RM20mil.

The two parties decided to cancel the project as “there were no further developments in the areas of collaboration.”

The other MoU that was aborted involved the plan to introduce e-Government services in Kazakhstan in a JV with National Information Technologies JSC (NIT).

The NIT is the appointed national operator for “informatisation” by the Kazakhstan government and provides official registration and support to domain names of government agencies and institutions.

MyEG said it and NIT mutually agreed to terminate the MoU signed in June 2011 also because “there were no further developments in the areas of collaboration.”

In a separate development, MyEG also announced on Tuesday its unaudited results for the first quarter (Q1) ended Sept 30, 2016.

Its Q1 earnings soared 42% year-on-year to RM40.51mil as revenue by 29% to RM78.60mil.

The growth in profit was attributed to higher transaction volumes from the online renewal of foreign workers’ permits and insurance and foreign worker rehiring programme services, increase in revenue contribution from its Road Transport Department-related services, and contribution from card payment and terminal company Cardbiz Holding Sdn Bhd, which became its subsidiary effectuve August last year, and its group of companies.

ADVERTISEMENT