MYEG to diversify into accommodation services

KUALA LUMPUR: MYEG Services Bhd yesterday announced its intention to diversify its existing principal activities to include the foreign workers’ accommodation programme (FWAP).

FWAP entails the setting up and management of centralised and integrated living quarters or hostels throughout the country to house foreign workers.

Yesterday’s announcement on the proposed diversification into the FWAP follows several related developments that had been announced previously.

Currently, MYEG is principally involved in the development and implementation of the electronic government services project and the provision of other related services for the electronic government services project, as well as investment holding.

MYEG, via wholly-owned subsidiary company MY EG Sdn Bhd, incorporated MY EG Lodging Sdn Bhd (MYEG Lodging) as a 55 per cent-owned subsidiary company on July 20 last year.

MYEG Lodging was incorporated primarily to oversee the FWAP business and its principal activities are building, owning and operating hostels for foreign workers.

On August 16 last year, MYEG Lodging entered into three tenancy agreements with the Melaka State Development Corporation for the rental of three hostels.

On June 20, MYEG Lodging accepted an offer from Johor Corporation (JCorp) for the leasing of a piece of land in Johor Baru from JCorp for RM10.76 million.

It shall utilise the land for the construction of new hostels under the FWAP to provide accommodation for foreign workers in the nearby industrial area, namely Tanjung Langsat industrial Complex and Pasir Gudang Industrial Area.

Rental income derived from the FWAP is expected to provide a new source of recurring income stream for the group.