No MyGST contract with the Customs, says MYEG

Publication: NST

Date of publication: Jan 8, 2014

Section heading: Business Times

Page number: 003

KUALA LUMPUR: MY E.G Services Bhd (MYEG) has clarified that it has not signed any legally binding agreement with the Royal Malaysian Customs Department on MyGST system for the implementation of the goods and services tax (GST).

The company said its 40 per cent owned associate company MY EG Integrated Networks Sdn Bhd (MINT) is one of a few parties involved in developing various components of the computer system.

"MYEG will release a public announcement should any award of contract be received from the Customs, which is expected to have a material effect on the price, value or market activity of the company's shares," the company said in a statement to Bursa Malaysia.

MyGST is a wholistic new system that the Customs is testing to facilitate the implementation of GST by April 1 2015.

Last week, Customs director-general Datuk Sri Khazali Ahmad said MyGST system is being tested and will be distributed to 300,000 traders nationwide. The system is said to cost some RM100 million.

MYEG shares have been heavily sought after since the statement was made by Khazali as the market expects such a contract to change the financial landscape of MYEG.

MYEG clarified that it is not a government-owned technological services provider and that certain government funds have invested in the company but their stake comprises less than two per cent of MYEG's total outstanding shares.