Prestariang aims to raise over RM1bil for SKIN, transformation agenda

Prestariang president and group CEO Dr Abu Hasan Ismail

KUALA LUMPUR: Prestariang Bhd aims to raise over RM1bil from the capital market, within six to nine months, to realise its main transformation agenda for its technology platform and to implement the integrated National Immigration Control System (SKIN).

Chief executive officer Dr Abu Hasan Ismail said the company was now on a fund raising drive before kicking off the development of SKIN.

“We have a few options and we might look at issuing sukuk or raise a direct term-loan.

“There are many proposals on our table because it involves a concession business. The capital market will love it. We will make the announcement very soon,” he told a press conference here today to update the media on Prestariang’s major businesses.

The company, through its subsidiary Prestariang Skin Sdn Bhd (PSkin), signed a 15-year concession agreement with the government, represented by the Ministry of Home Affairs, for the implementation of SKIN, a RM3.5bil integrated technology platform to modernise the core applications and infrastructure of the country’s immigration system.

Abu Hasan said SKIN would take three years, from 2018 to 2020, to develop, through a combination of    in-house and joint developments with key partners.

“It’s considered a zero risk for the government via the build, operate, maintain and transfer method under the public-private partnership concept.

“Payment from the government would only commence after three years, upon the full commission of the system,” he added.

This would be reflected in Prestariang’s financial year ending Dec 31, 2021, with an average annual payment estimated at RM294.7mil from year four to year 15 during the maintenance and technical operations phase.

“SKIN is expected to contribute positively to Prestariang’s future with stable and recurring earnings, as well as,  serve as a catalyst for the company to venture into the regional market,” said Abu Hassan.

Founded in 2003 and listed on Bursa Malaysia, he said the group had evolved from being a leading training and certification body for information and communication technology and software licence distribution and management, to a technology and talent player.

“Investment into EduCloud, a talent platform to empower entrepreneurs, education and e-Commerce, would be the next phase of our transformation business. Investment would be tapped from the income accruing from current businesses, “ added Abu Hassan.

Through EduCloud, the company planned to launch a pilot project in the fourth quarter in collaboration with prominent cloud device providers like Ali Baba Cloud, Amazon Web services and Microsoft.

It also planned a tie-up with a financial technology giant and form a strategic partnership with public and private universities, as well as, with the National Higher Education Fund Corporation.

Overall, Abu Hassan expected a revenue growth of 25 per cent, in the 2018 financial year, for the software and service segment and up to 100 per cent for training and certification.

As for its university operations, he expected Universiti Malaysia of Computer Science and Engineering (UniMy) to break even this year.

UniMY, the country’s first ICT boutique university, currently had 400 students and hoped to increase the number to 600 students by September.  - Bernama