Project not cancelled on ad hoc basis, says MyEG

KUALA LUMPUR: MyEG Services Bhd was Bursa Malaysia’s most active stock and among the top losers yesterday after the government decided not to extend a 2015 contract for legalising foreign workers beyond June 30 this year.

The stock plunged to an intraday low of 65.5 sen after a news portal quoted Home Minister Tan Sri Muhyiddin Yassin as saying the re-hiring exercise of undocumented foreign workers would be terminated by monthend.

Muhyiddin said all dealings with the previous vendors would be terminated without any extension.

The programme was introduced in 2015 by the former government to legalise 1.5 million to two million foreign workers.

MyEG was one of the three vendors appointed to undertake the programme and its contracts had been renewed several times.

Yesterday, MyEG lost nearly 25 per cent before recovering slightly after the company issued a clarification with regards to the termination.

The stock closed 17.5 sen, or 20.35 per cent, lower to 68.5 sen, with 206.6 million shares traded.

In a filing to Bursa Malaysia, MyEG said the news articles, which appeared to insinuate that the re-hiring programme was terminated on an ad hoc basis, was “inaccurate and misleading”.

MyEG said it had received a letter from the Home Ministry in relation to the extension of the project until December 31 last year, instead of August 15 2016.

It added that the June 30 date as stated in the news articles was the grace period to allow all remaining registrants to complete pending procedures under the project.

“Therefore, the issue of any ad hoc termination of the project, as alluded to in the news articles, does not arise as the project, which is intended to run for a fixed duration, is adhering to its existing prescribed deadlines.

“The board would like to assure all parties that there are no changes to its business activities and all concession and commercial services are operating as usual,” MyEG added.