MyEG contract to be terminated by end-June

PETALING JAYA: My E.G. Services Bhd (MyEG) will see its contract with the Immigration Department to carry out the government’s rehiring exercise of undocumented foreign workers being terminated by the end of the month.

The company together with two other vendor companies: Iman Resources Sdn Bhd and Bukti Megah Sdn Bhd will see their contracts eventually ending, an online news portal quoted Immigration Department director-general Mustafar Ali as saying.

Home Minister Tan Sri Muhyiddin Yassin had earlier said that the re-hiring exercise will end and that after it ends, all dealings with vendors appointed earlier will be terminated without any extension.

“The public and employers can deal with the Malaysian Immigration Department directly for all types of services on hiring foreign workers,” Muhyiddin said in an earlier statement.

“With the government’s decision, all these programmes will be terminated at the end of June,” Mustafar said in the report.

MyEG’s shares had been severely impacted after the new Pakatan Harapan government was installed post the 14th General Election.

It had lost almost 200% of its value since the elections and last closed at 86 sen with a market capitalisation of RM3.06bil on Friday.

At current prices, MyEG is trading at historical price to earnings ratio (PER) of 13.65 times as opposed to a PER of more than 30 times prior to the election.

Despite the termination of the government’s rehiring exercise of undocumented foreign workers, the company still has a handful of other ongoing contracts with key government agencies.

According to its annual report, some of these jobs include: the renewal of foreign workers insurance and work permits, renewal of motor vehicle insurance and road tax; the testing, issuance and renewal of drivers’ licenses; vehicle ownership transfer.

Other active contracts also include the bankruptcy and liquidation status searches; application for the identity card or MyKAD replacement; zakat collection; checking and payment of traffic offence summons and the assessment, compound, license payment and information services for the KL City Hall.