MyEG’s sub subsidiary prepares to launch foreign worker hostel biz

  • Corporate News
  • Tuesday, 16 Aug 2016

The MyEg counter still in normal operation at Immigration headquarters in Putrajaya. MOHD SAHAR MISNI/The Star

KUALA LUMPUR: My EG Services Bhd (MyEG), through recently-incorporated sub subsidiary MY EG Lodging Sdn Bhd (MyEL), is preparing to launch the business of operating hostels for foreign workers by signing on Tuesday a three-year tenancy agreement to rent 512 accommodation units from the Malacca State Development Corp.

“The signing of the tenancy will enable the company (MyEL) to commence operations and the ccmpany will use these sites as pilot sites for future expansion to set up more sites nationwide,” the e-Government service provider told Bursa Malaysia.

MyEG, which was appointed by the Home Affairs Ministry in February to undertake the registration of illegal foreign workers under a rehiring programme, said the monthly rental for all the units totalled RM195,000. The deposit payable amounts to RM1.36mil.

In a separate filing with the exchange, MyEG said its wholly-owned subsidiary MY EG Sdn Bhd (MESB) signed a shareholders agreement with the other MyEL shareholders to regulate the relationship among them and to set out, among others, the financial, administrative and other arrangements regarding MyEL.

MESB, which has 55% equity interest in MyEL, will be responsible for the general operations and management of the company and provide any initial funding of up to the principal amount of RM3mil.

The other shareholders of MyEL are Bright Billion Co Ltd whose shareholder/director is Quek Tee Kiam (30%), Datuk Tengku Zainuddin Tengku Zahid (10%) and Mohd Farhan Dziaudin Mohd Daud (5%).

MyEG shares gained 1 sen to close at RM2.05 on Tuesday, with 13.5 million shares changing hands.

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