MyEG on track for another record year with strong growth

MyEg online office that opens at Immigration Department of Malaysia in Putrajaya. MOHD SAHAR MSNI/The Star

KUALA LUMPUR: My EG Services Bhd (MyEG) looks set for another record financial year with a double-digit growth, having delivered a 63% increase in earnings to RM53.9mil for the third quarter ended March 31, 2017.

That raised its nine-month earnings to RM142.03mil, up 55% compared to the same period in the preceding financial year, according to the e-Government service provider’s latest interim financial report to the stock exchange.

MyEG’s year-to-date earnings were already close to its earnings for the entire last financial year ended June 30, 2016 (RM142.52mil).

Over the last five years, MyEG’s annual earnings had increased by a double-digit percentage, with the growth becoming progressively higher with each new year. Last year its earnings were up 91%.

On the better profit for the third quarter, MyEG said this was due to higher transaction volumes from its foreign worker-related services and an increase in revenue contribution from its motor vehicle trading-related services.

The firm’s foreign worker-related businesses include the online renewal of foreign workers’ permits (FWP), foreign workers rehiring programme services (FWR services) and foreign workers’ insurance from both FWP as well as FWR services.

The improved performance for the entire year was also attributed to the above, as well as to increase in revenue contribution from Road Transport Department-related services.

However, the better results were offset by higher personnel related expenses and operating expenses to support the growth in FWP and related services, higher marketing expenses and higher interest cost from the term loan to finance MyEG’s newly acquired building.

On its prospects for the year, MyEG said the continued growth in volume of its existing services, especially the online renewal of foreign workers’ insurance and foreign worker services, were expected to contribute to the group’s revenue and profit.

“While concession services continue to be our core business, non-concession related services, such as the road safety diagnostic services, sale of prepaid top ups for Celcom mobile lines and provision of hostel accommodation to foreign workers, are expected to contribute to our growth for FY17,” it said.