MyEG: No award from Customs yet

Published: Wednesday January 8, 2014 MYT 12:00:00 AM 

Updated: Wednesday January 8, 2014 MYT 7:23:43 AM

PETALING JAYA: MyEG Services Bhd’s 40%-owned associate company, My EG Integrated Networks Sdn Bhd (MINT), has completed a pilot customs service tax monitoring (CSTM) system, although it has not yet received the letter of award (LoA) from the Customs Department.

In a filing with Bursa Malaysia yesterday, MyEG clarified: “To date, MyEG has not entered into any legally binding agreement with the Customs Department.”

The company’s clarification was in response to news reports that the company will receive a contract for the government sales tax collection system.

“MyEG will release public announcement should any award of contract be received from the Customs Department,” the company said.

It was also reported that MyEG’s stock price has been on the uptrend after securing government contracts, and traded at a record level. after Customs said it was testing the MyGST system.

To this, MyEG said the Customs Department was testing a holistic new system to facilitate the implementation of the goods and services tax (GST) by April 2015.

It has been reported that the company was the frontrunner to provide the collection system for GST.

A source said MINT was expected to roll out the CSTM system between March and April this year.

The stock price has recorded phenomenal growth, rising more than 260% in the past 52-week period up to close at RM2.86 yesterday.

CIMB analyst Nigel Foo said the CSTM system would cater for GST in the future. “MyEG may extend the CSTM service to the retail sector, after GST is implemented.”

The CSTM system will monitor service tax from restaurant and entertainment outlets by linking 100,000 points-of-sales terminals at 20,000 restaurants and entertainment outlets electronically.

Earlier, MyEG said that the Customs had approved the commencement of the pilot project in Nov 4, 2010 for the online service tax monitoring and that it expected MINT to complete it by December 2013. The total capital expenditure for the CSTM system pilot run is RM100mil.