PETALING JAYA: The government has extended Telekom Malaysia Bhd
’s (TM) concession contract for the MyGov*Net system for another 10 years at a lower value.
TM said its unit, GITN Sdn Bhd, has accepted the letter of implementation from the government.
“The contract will be for a period of 10 years from Jan 1, 2023 until Dec 31, 2032,” its filing with Bursa Malaysia yesterday stated.
TM said the project value of MyGov*Net is capped at a maximum of RM4.9bil which is inclusive of the 6% sales and service tax.
“The new concession is lower in value compared to previously with impact on the earnings of TM Group over the concession period,” the telco added.
It said the MyGov*Net project will still contribute positively to the earnings and net assets of TM Group for the current financial year ending Dec 31, 2023 and over the concession period.
MyGov*Net is the government’s integrated telecommunication network that connects more than 10,000 government premises in Malaysia and Malaysian Embassies overseas.
This secured and dedicated government network integrates with the intranet, internet, Government Campus Network and the Public Sector Data Centre.
TM said further details and information on this matter will be announced once the agreement between GITN and the government is executed.
