BANK RAKYAT CANCELS SYSTEM UPGRADE PLAN WITH MICROLINK
Cancellation letter cites change of project requirements, specifications for decision
MICROLINK Solutions Bhd says Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) has cancelled the nonbinding letter of intent issued to it in July 2016 to participate in discussions to enhance the bank’s system.
“The cancellation letter thanks the company for attending the discussions and for providing its proposals on the project but advises that it will not be pursuing the discussions further with the company, due to a change of project requirements and specifications.
“The company intends to seek all advice, including but not limited to legal advice, on this matter,” said Microlink in a filing with Bursa Malaysia yesterday.
The two parties were previously in discussions in July 2016 to finalise the project costs, scope of work and timeline for works to upgrade Bank Rakyat’s core banking system.
Microlink has been providing financial technology services to banks for more than 20 years.
The information technology solutions provider’s clients in Malaysia include RHB Bank Bhd and Agro Bank. It also has clients in Brunei.
The company said recently it was looking to raise revenue contribution from its financial services segment to between 25 and 30 per cent of its total for the financial year ending March 31, from 10 and 15 per cent currently.
On Bursa Malaysia yesterday, Microlink shares declined two sen, or 2.86 per cent, to finish at 68 sen.