Mesiniaga Berhad said it had signed and accepted the Letter of Award from the Royal Malaysian Customs Department for the Provision of the MYGST System Maintenance Services and License Renewal from 2023 to 2025.
The total value of the contract is RM38 million. The duration of the contract is effective immediately and to be completed by October 2025. There is no automatic renewal clause in the Contract.
The group sees risks mainly in meeting the service level commitments and deadlines imposed by the Customer. The Company has taken the necessary steps to mitigate the risks.
Mesiniaga said the contract will not affect the share capital and substantial shareholders’ shareholdings of the Company; however, it is expected to contribute positively to the Group’s earnings and net assets for the financial year ending 31 December 2023 onwards until the expiry of the Contract.