GHL’s petrol subsidy win a market surprise





Drawing interest: The contract worth some RM25mil has been awarded through a tender process, says GHL.

Drawing interest: The contract worth some RM25mil has been awarded through a tender process, says GHL.

THE win by GHL Systems Bhd in the contract to develop and design a system for the targeted petrol subsidy for the RON95 fuel is a surprise to the market.

The contract worth some RM25mil has been awarded through a tender process and GHL says in a filing with Bursa Malaysia that it has been notified of this win through a disclosure in the Finance Ministry’s procurement portal.

Further details on the scope of the contract are scant and the terms of the contract between the government and the company had not been signed.

Industry observers point out that while details are lacking, the contract would need to state the terms of maintaining the infrastructure after the system is implemented.

“There would also need to be an allocation by the government for the upkeep of this infrastructure as it would deal with information technology systems. Then there is the need to keep the system up-to-date,” the observer points out.

GHL would also stand to benefit should the eventual system be rolled out ride on its existing e-wallet infrastructure system.

Unlock exclusive insights, analyses, and curated news on the economy on The Star Online's Business section with Starbiz Premium.

Oil & Gas