Following apparently partially fallacious statements made by an MP in parliament and having spoken to management on the facts of the case, Maybank IB opines that MYEG does not appear to have contravened government standard operating procedures in the course of its business dealings.
As such, Maybank IB forecasts are maintained and accumulate on weakness. Allegations of illegal fee collection by MP Khoo Kota Melaka MP Khoo Poay Tiong claimed on Sep 12 during a parliamentary session that MYEG’s immigration concession biz had been suspended since Feb-23 and that the company has since been “illegally” accepting fees for permit renewals on its website. He further added that MYEG continued to issue invoices bearing the Immigration Department (ID) logo in that time.
MYEG said that it has abided by mandated SOPs Recall that on July 10, MYEG released an announcement stating it had
received a notification letter dated July 4 from the Ministry of Home Affairs confirming that the Ministry of Finance had approved the extension of its immigration concession for a period of 3 years. The announcement also explicitly stated that the agreement would be formalised and signed at a later date, subject to terms being finalised post-discussion with the
M’sian gov’t. Whilst it is true MYEG continued to collect fees for permit renewals post-expiry of its contract on May 22, the company maintains it had adhered to all gov’t-mandated SOPs in that time. This includes a full refund to employers who sought to renew their worker permits directly with the ID and were able to provide proof of payment of having done so.
The MyEG Mgmt disclosed that the total quantum of refunds processed has been negligible to-date, primarily due to the low number of formal refund requests received thus far. The house believes this may be primarily due to the additional costs associated with permit renewals done directly with the ID. Whilst the MP’s allegations cast a shadow on public perception of MYEG, Maybank IB said it does not believe, on the available facts, that it has contravened gov’t mandated SOPs since the initial concession expiry in late May. The group is also confident of receiving finalisation of the official concession extension in the coming weeks, which should then put this matter to rest
