The Board of Directors of MPay is pleased to announce that ManagePay Services Sdn. Bhd., a wholly-owned subsidiary of the Company (“MPSB”), has been awarded a project entitled “SMART MBPP” by Majlis Bandaraya Pulau Pinang (“MBPP”) via its Letter of Offer dated 13 January 2022 (“LO”) to provide a software platform services to MBPP for payment of council bills in a cashless manner via jompay, internet and mobile banking, Visa and MasterCard, eWallet and others payment channels subject to the conditions to be fulfilled by MPSB within six (6) months from the LO (“Project”).

The SMART MBPP platform will also function as a “One Stop Smart Centre” to aggregate all facilities and services provided by MBPP into a mobile application and a responsive website to allow residents and business users of Penang Island to make booking of city council facilities, applying business licenses, seeking approval for development of project, paying assessment, compound and etc.

The duration of the Project is for a period of five (5) years and renewable for additional two (2) years. MPSB had on 17 January 2022 received and accepted the LO.

This LO is subject to a formal contract to be executed between MPSB and MBPP.

Financial Effects

The Project is expected to contribute positively to the revenue, earnings and net assets of the Company and its subsidiaries (the “Group”) for financial years ending 31 December 2022 to 31 December 2028.

The Project will not have any effect on the share capital, gearing and substantial shareholders’ shareholdings of the Company.

Directors’ and/or major shareholders’ interests

None of the Directors and/or major shareholders of MPay and/or persons connected with them have any interests, direct or indirect, in the LO.

Directors’ Statement

Having considered all aspects of the LO, the Board of Directors is of the view that the acceptance of LO is in the best interest of the Group.

This announcement is dated 19 January 2022.