Quick take: MMAG jumps 20% on ECRL foreign workers deal


  • Stock on the Move
  • Thursday, 17 Sep 2020

KUALA LUMPUR: Shares in MMAG Holdings Bhd jumped over 20% in early trade Thursday after signing an agreement to provide total management solutions of foreign workers for China Communications Construction (ECRL) Sdn Bhd (CCCECRL).

The counter, one of the top gainers on Bursa Malaysia, surged 20.13%, or 30 sen to RM1.79 with over eight million shares traded.

MMAG’s wholly-owned subsidiary MMANTAP Sdn Bhd had entered into an exclusive partnership agreement with manpower consultant JR Joint Resources Holdings Sdn Bhd — who has been appointed to serve as consultant and service provider for the ECRL — to recruit, supply and provide total management solutions of foreign workers for the project by CCCECRL.

CCCECRL is the main contractor for the 640km multi-billion ringgit East Coast Rail Link (ECRL) project.

Under the agreement, MMANTAP will be responsible for all ICT aspects of JR's operations when it comes to the latter's operations with CCCECRL.

According to sources, the exclusive partnership agreement is forecast to contribute a revenue of some RM400mil over five years to MMAG. This is based on an estimate of 2,000 foreign workers.

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MMAG , ECRL , foreign workers

   

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