News

1.       INTRODUCTION

With reference to the Company’s announcements on 20 November 2015, 24 November 2015 and 26 November 2015, the Company wishes to inform that today, it has received a letter dated 15 November 2016 from the Government of Malaysia (“Government”) via Ministry of Home Affairs to confirm that the Cabinet has approved for the Company to implement ‘Sistem Kawalan & Imigresen Nasional’ (“SKIN”).

1. SKIN is a Government-led border transformation program that will give confidence, facilitate and encourage the movement of genuine people in and out of our country. SKIN shall address both current and future operational demands including the facilitation in relation to Preventing and Combating Serious Crime, Homeland Security Presidential Directive-6 and Visa Waiver Program.
2. SKIN is a comprehensive and integrated technology platform to modernize the core applications and infrastructure of the national immigration system with the objective to enhance the national border security. When fully commissioned, SKIN will replace the current ‘Sistem Imigresen Malaysia’ (myIMMs). SKIN will also complement the existing ‘Sistem Pengurusan Pekerja Asing Bersepadu’ (ePPAx).
3. Prestariang’s proposal was approved after a comprehensive technical and commercial evaluation, and thorough due diligence process.
4. SKIN will be implemented by way of a Public Private Partnership through Build, Operate, Maintain and Transfer (BOMT) method.
5. The concession shall be for a period of fifteen (15) years and will consist of three (3) years of build and deployment phase and twelve (12) years of maintenance and technical operation phase.
6. The payment to Prestariang is inclusive of all costs incurred during the build and deployment phase, maintenance and technical operation phase.
7. Payment to Prestariang shall only commence upon full commissioning of the system (after 3 years), with an average annual payment of RM294.7 million from year 4 to year 15 during the maintenance and technical operation phase.
8. The commencement date shall be subjected to the finalization of the terms and conditions of the agreement to be mutually agreed between the parties.

2.         RATIONALE

SKIN is aligned with Prestariang’s transformational business that will drive its long term and sustainable growth.

3.         FINANCIAL EFFECTS

SKIN will not have any effect on the issued and paid-up capital, gearing and substantial shareholders’ shareholdings of Prestariang at this juncture. However, SKIN is expected to contribute positively to the future earnings/earnings per share and net assets per share of Prestariang Group.

4.         RISKS

SKIN will be subjected to the usual project risks. However, the Company will take the necessary steps to mitigate the risks as and when it occurs.

5.         DIRECTORS’ AND/OR SUBSTANTIAL SHAREHOLDERS’ INTEREST

None of the Directors and/or substantial shareholders or any person connected to the Directors and/or substantial shareholders of Prestariang has any interest, either direct or indirect in SKIN.

6.         DIRECTORS’ STATEMENT

The Board of Directors of Prestariang is of the opinion that SKIN is in the best interest of Prestariang Group.

The announcement is dated 18 November 2016.