Publics queuing to get the number after the Immigration system offline at UTC Kuala Lumpur in Pudu Sentral. AZMAN GHANI / The Star
KUALA LUMPUR: Prestariang Bhd’s subsidiary Prestariang Skin Sdn Bhd (PSkin) on Tuesday entered into a RM3.5bil, 15-year concession agreement (CA) with the Home Affairs Ministry to implement an integrated core immigration system known as SKIN.
To be fully commissioned in three years, the new border control system will replace the current Malaysian Immigration System (myIMMs).
In a filing with Bursa Malaysia, the technology firm said PSkin, in which it has an effective 70% stake, would undertake the design, financing, development and commissioning of SKIN as well as carry out maintenance services.
The CA is conditional on PSkin having obtained a written notice from the Government confirming that it has fulfilled the conditions precedent (as stated in the CA) within six months from Tuesday or such extended period not exceeding three months as may be granted by the Government.
Payment to Prestariang wil only start on full commissioning of the system (after three years), with an average annual payment of RM294.7mil from year 4 to year 15 during the maintenance and technical operation phase.
Prestariang received a letter of confirmation of approval in principle from the Home Affairs Ministry to implement SKIN back in November 2015. Last November (2016), the Cabinet approved for the company to implement the project.
Prestariang said the concession was expected to contribute positively to the future earnings/earnings per share and net assets per share of the group.
It added that the development cost was expected to be financed via a combination of internally generated funds, borrowings and/or other fund raising exercise.
Prestariang, whose share trading was suspended on Tuesday, closed 8.18% higher at RM2.38 on Monday. The counter will resume trading on Wednesday at 9am.
