MyEG writes off GST investment, redeploys assets to other countries

  • Business
  • Thursday, 29 Nov 2018

The Main Market-listed MyEG told Bursa Malaysia yesterday that its sub-subsidiary, MyEG (Indonesia) Sdn Bhd, has entered into a share subscription agreement and a shareholders

KUALA LUMPUR: MyEG Service Bhd posted its first ever quarterly loss in the three month through September on impairment charges related to the abolishment of the goods and services tax (GST) regime.

The company, in a filing with Bursa Malaysia Thursday, said it made a net loss of RM97.5mil on revenue of RM138.3mil.

MyEG, in a filing with Bursa Malaysia on Thursday, said its latest quarterly results were affected by impairment from an associate company amounting to RM95.45mil and impairment of equipment amounting to RM76.29mil.

“The board wishes to clarify that necessary impairments have been made in FYE2018, on the investments as well as capital expenditure incurred on the tax monitoring system which were supposed to be rolled out under the GST regime,” it said.

For the financial year ending Sept 30, 2019, MyEG said it will deploy these assets to other countries.

“The board is confident that there will be opportunities available to the company to roll out similar system in other countries which we are present and to re-deploy the system built and assets purchased (which the value have been impaired) in these countries,” it said.

Earlier this week, MyEG Services Bhd has signed a memorandum of understanding to buy a 40% stake in Indonesian-based e-government service provider PT Cartenz Technology Indonesia for US$10mil (RM42mil).

“We are expanding our regional presence in Asia with the recent introduction of new joint ventures and services in the Philippines, Bangladesh and Indonesia,” it said.

“These are the new markets which potentially will also contribute to our growth for FYE2019,” it added.

MyEG, in June this year, has changed its financial year end from June 30 to Sept 30. The company was listed on Bursa Malaysia in July 2007.

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