1. Introduction

Mesiniaga Berhad (“the Company”) is pleased to announce that the Company has today accepted a Letter of Award issued by Royal Malaysian Customs Department (RMCD) for the Provision of the MYGST Maintenance systems and License Renewal Services from 2020 to 2022 (the “Contract”).

2. The Contract Value
The total contract value of the project is RM42,010,604.82 Service Tax inclusive (Ringgit Malaysia: Forty Two Million Ten Thousand Six Hundred Four and Sen Eighty Two Only).

3. Duration of the Contract
The Contract shall commence on 16 October 2020 and is expected to complete by 15 October 2022.

 4. The effect on net assets of the Group
The proposed transaction will have positive effect on the Company’s Net Assets for the financial year ending 31 December 2020. It is also expected to contribute positively to the Company’s earnings over the period of the Contract.

5. The risks in relation to the Contract
The risks relate mainly to meeting deadlines imposed by the customer and meeting the terms of the service level commitments. The Company has however taken the necessary steps to mitigate the risks.

6. Directors' and Substantial Shareholders' Interest
None of the Directors or substantial shareholders or any person connected to the Directors or substantial shareholders of Mesiniaga Berhad have any interest, either directly or indirectly in the said Contract.

7. Statement of the Directors
The Board of Directors of the Company is of the opinion that the said Contract is in the ordinary course of business and is in the best interest of the Company.
 

8. Financial effects
In addition to the Company’s information disclosed, the Management would like to inform that the Contract will have a positive effect on the Earnings Per Share. The Contract however is not likely to have an effect on the dividend policy, gearing, share capital and the substantial shareholders’ shareholdings of the Company for the financial year ending 31st December 2020.

This announcement is dated on 7 September 2020.