Datasonic gets RM292m MyKad contracts

by **Cals** Fri 18 Apr 2014, 21:09

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Friday, 18 April 2014 14:43

KUALA LUMPUR (Apr 18): Datasonic Group Bhd has clinched two contracts with a combined value of RM292.2 million from the home ministry. The contracts involve the supply of 14 million Malaysian identity cards or MyKad to the government.

In a statement to Bursa Malaysia today, Datasonic said it had today received the letters of award from the ministry.

The first contract, which is valued at RM72 million, will see Datasonic supplying four million new raw MyKad with 100% polycarbonate material and new security features to the national registration department (NRD). The six-month contract which began on January 1 this year expires on June 30.

Meanwhile, second contract, which is worth RM220.2 million, involves the supply of 10 million similar cards, and an equal number (10 million) of consumables to the NRD. The two-year contract starts from July 1, 2014 and ends on June 30, 2016.

"The contracts are subject to normal business risks such as increase in cost due to any escalation of material costs and contractual terms including default provisions. As such, the management would put in place control measures and operational procedures to reduce the impact or likelihood of such events.

"The contracts are expected to contribute positively towards the future earnings and net assets per share of Datasonic group for the financial period ending 31 March 2015 and the financial periods thereafter for the duration of the contracts and will not have any effect on the share capital and substantial shareholders’ shareholdings of Datasonic group," Datasonic said.