MMAG signs ECRL foreign workers agreement

In a filing with Bursa Malaysia, MMAG said its wholly-owned subsidiary MMANTAP Sdn Bhd will be responsible for all ICT aspects, logistics and transportation of the workers to the designated sites of the ECRL project and all financing aspects of JR Joint Resources over the implementation and execution of the ECRL agreement

PETALING JAYA: MMAG Holdings Bhd has entered into an exclusive partnership agreement with JR Joint Resources Holdings Sdn Bhd to provide total management solutions of foreign workers for China Communications Construction (ECRL) Sdn Bhd (CCCECRL).

JR had been appointed on March 18 as consultant and service provider for the ECRL project, to recruit, supply and provide foreign workers.

CCCECRL is the main contractor for the 640km multi-billion ringgit East Coast Rail Link (ECRL) project.

In a filing with Bursa Malaysia, MMAG said its wholly-owned subsidiary MMANTAP Sdn Bhd will be responsible for all ICT aspects, logistics and transportation of the workers to the designated sites of the ECRL project and all financing aspects of JR Joint Resources over the implementation and execution of the ECRL agreement.

JR Joint Resources, on the other hand, will be responsible in all negotiations with CCCECRL and where required, the Malaysian government and the relevant stakeholders in or outside Malaysia.

According to sources, the exclusive partnership agreement is forecast to contribute a revenue of some RM400mil over five years to MMAG. This is based on an estimate of 2,000 foreign workers.

MMAG chairman Datuk Rathakrishnan Vellaisamy, in a press release, said profits arising from the ECRL agreement that JR Joint Resources is entitled to will be shared 70:30 in favour of MMANTAP.

“This is definitely an exciting chapter for MMAG, with our recent acquisition of MAASDOTS and now, our exclusive partnership with JR Joint Resources for the national infrastructure project.

“With MAASDOTS, we are able provide the ready-to-be-integrated Travellers Advanced Health Screening System, which will get people moving again and revive the travel sector.

“At the same time, we will be able to help get the ECRL project back on track by managing and supplying the required foreign workers, ” he said.

MMANTAP is involved in the logistics and information and communications technology-related businesses, besides being a provider of third and fourth-party logistics solutions.

Last week, MMAG announced that it was looking to provide an integrated Covid-19 testing system for countries to resume travel in a safe and secure manner.

Its share price has since shot up and in a reply to an unusual market activity query from Bursa Malaysia, MMAG also said it intended to acquire an air cargo company to boost its logistics and couriers services business.