Mesiniaga Bhd has secured a three-year contract renewal worth RM43.28 million from Maybank Shared Services Sdn Bhd for the renewal of software licence subscriptions, providing earnings visibility for the group through 2029.
The information technology solutions provider said it entered into the agreement with Maybank Shared Services on June 11.
The contract, valued at RM43.28 million inclusive of the 8% Sales and Service Tax (SST), covers the renewal of licence subscriptions for a period of three years and will run until May 31, 2029.
Mesiniaga said the contract does not contain an automatic renewal clause.
The group noted that the key risks associated with the contract relate primarily to meeting service-level commitments and delivery deadlines set by the customer. However, it has implemented the necessary measures to mitigate these risks.
“The Board of Directors is of the opinion that the contract is in the ordinary course of business and is in the best interest of the company,” Mesiniaga said.
The company added that the contract is not expected to have any impact on its share capital or substantial shareholders’ shareholdings.
However, the contract is expected to contribute positively to the group’s earnings and net assets from the financial year ending Dec 31, 2026, until the completion of the contract period.
Mesiniaga, which specialises in information and communications technology (ICT) solutions and services, has been a long-standing technology partner to organisations across the financial services, government and enterprise sectors.
The latest contract renewal further strengthens the group’s recurring revenue base while reinforcing its relationship with one of Malaysia’s largest banking institutions.
