MyEG says MyCC’s proposed penalties will not have significant impact

by **Cals** Fri 09 Oct 2015, 00:20

MyEG says MyCC’s proposed penalties will not have significant impact

By Gho Chee Yuan / theedgemarkets.com | October 8, 2015 : 6:33 PM MYT

KUALA LUMPUR (Oct 8): [size=16]My E.G. Services Bhd (MyEG) ([You must be registered and logged in to see this image.] Financial Dashboard) said today the proposed decision byMalaysia Competition Commission (MyCC) to impose a financial penalty of RM307,200 on the company for allegedly abusing its dominant position in the provision and management of online Foreign Workers Permit Renewal (PLKS) applications is not expected to have significant financial and operational impact on MyEG for the financial year ending June 30, 2016 (FY16).

"(This is) given the fact that management will prove to MyCC that the allegations are unfounded and, in their best endeavour, will work towards resolving the allegations amicably with MyCC," said MyEG in a filing with Bursa Malaysia today.

In the event that the proposed decision is final, the company said the proposed penalty is also not expected to have significant financial impact.

"Nevertheless, the operational impact cannot be ascertained at this juncture until the remedial actions have been finalised with MyCC," it added.

MyEG was referring to MyCC's statement on Tuesday that stated the commission had commenced its investigation into MyEG pursuant to the complaints filed by numerous parties.

"The investigation found that MyEG has harmed the level of competition in the selling of mandatory insurance policies for online PLKS renewal applications as the MyEG is also competing against other insurance companies in the market," said MyCC.

MyEG today reiterated that at this juncture MyCC's proposed decisions are not final.

"The management (MyEG) will review the proposed decisions with the external legal counsel and will submit a written representation and will make an oral representation to MyCC by Nov 18, 2015 to defend against the allegations made by MyCC," it said.

MyEG shares closed down four sen or 1.47% at RM2.68 today, with 16.12 million shares changing hands. It has a market capitalisation of RM3.2 billion.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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