Prestariang tumbles 16% as Home Ministry confirms cancellation

The key FBM KLCI fell briefly below the crucial 1,600 level in afternoon trade on Monday on mounting selling pressure in line with the key Asian markets.

KUALA LUMPUR: Shares of Prestariang Bhd fell to a a multi-year low of 37 sen at midday on Monday as the Home Ministry confirmed the  Immigration Department's RM3.5bil national immigration control system (SKIN) concession has been cancelled.

At 12.30pm, shares of the technology company was down 7.5 sen or 16.5% to 38 sen with 19.77 million shares done.

The FBM KLCI was down 15.59 points or 0.93% to 1,664.95. Turnover was 1.39 billion shares valued at RM586.33mil. There were 131 gainers, 549 losers and 281 counters unchanged.

Star Online reported Home Minister Tan Sri Muhyiddin Yassin said on Monday the decision to cancel the SKIN concession was to make way for the development of a new system that is comprehensive, effective and user friendly.
"We also want to develop a system that is value for money and that can save government funds," he announced at the Immigration Day celebration on Monday.

Muhyiddin said the project would be given a priority given the urgent need to improve the departments system.

StarBiz recently reported the SKIN concession was one of the 44 projects done under a public-private partnership (PPP) model, where the private sector funds it and recoups the payment from the government in stages.

Towards this end, the Finance Ministry had previously stated that the PPP project would not be cancelled but reviewed for it to be implemented in a different model. 

In its existing form, SKIN is a 15-year concession project which officially started on April 25 this year. 
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