MyEG confirms value of concession at RM553mil


PETALING JAYA: My E.G. Services Bhd (MyEG) has confirmed that the five-year concession given by the Government to provide online renewal of temporary employment passes for foreign workers is valued at RM553.85mil.

In a filing with Bursa Malaysia, the group said it had signed the concession agreement on March 1 to provide the service from May 23, 2015 to May 22, 2020.

The online renewal of the employment pass, also known as Pas Lawatan Kerja Sementara (PLKS), will be provided for the Immigration Department of Malaysia.

The concession is renewable upon expiry subject to the Government’s approval, it added.

According to MyEG, its board of directors is of the view that the project is in the best interest of the company and is expected to contribute positively to the earnings and net assets per share for the financial years ending June 30, 2017 onwards until the expiry of the project.

“At this point in time, the board does not foresee any risks in relation to the project,” it said.

The confirmed figure of RM553.85mil matches the group’s estimated value for the contract when it was initially announced back in January.

The contract will also complement MyEG’s slate of digital offerings. Aside from providing online renewal of foreign workers’ permit and insurance, it also provides online renewal of vehicle road tax and ownership transfer.

The group’s success in securing the PLKS contract was largely expected, as it was already handling the foreign workers rehiring programme which ended in June last year.

The group reported strong earnings growth for its latest second quarter ended Dec 31, 2016, with net profit growing to RM47.62mil from RM30.32mil a year ago. Its revenue for the quarter grew to RM88.66mil compared to RM63.49mil a year ago.

MyEG shares have also been among the top-performing stocks on Bursa Malaysia over the past several years. Over the past one year, its stock price has risen by 25%.

Its shares rose nine sen yesterday to close at RM1.78, representing a new all-time high for the stock.

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