MyEG up 3.57% on expansion of tax monitoring system to 30 cities in Indonesia

KUALA LUMPUR (Jan 14): Shares of MyEG Services Bhd (MyEG) rose 3.57% after it announced that its Indonesian associate PT Cartenz Inti Utama has secured additional government mandates to roll out its tax monitoring system, marking an expansion to its successful commencement of the implementation in Jakarta.

At 10:26am, MyEG's share price was up 4 sen to RM1.16, with some 53.26 million shares traded, valuing it at RM3.88 billion.

In a Bursa Malaysia filing yesterday, MyEG said it has recently been contracted by the governments of seven other provinces in Indonesia to deploy, on a chargeable basis, the tax monitoring system to cover a total of 30 cities.

"The projects' tenure ranges from one year to three years and it is renewable upon expiry.

"The projects also have no fixed value as it is dependent on the number of installations to be undertaken by Cartenz," it added.

Nonetheless, MyEG's board of directors said the projects are in the best interest of the company and are expected to contribute positively to the earnings of the company for the financial year ending Dec 31, 2020.

MyEG managing director TS Wong said this has exceeded the group's initial targets.

"We now believe that our Indonesian roll-out will be faster and require lower capex than our previous expectations," he said.

Since unveiling the joint venture in 2018, the group has started the implementation of real-time monitoring of business transactions for tax computation purposes, with installations in retail merchant premises presently ongoing in Jakarta under a pilot programme offered at no charge.

The expansion of the tax monitoring system to more regions in Indonesia represents an important milestone for MyEG, not only in the strengthening of its position as the leading e-government services provider in Indonesia, but also in the widening of its footprint in the country's retail sector, it said.