Mesiniaga bags RM1.9b EM-IIG contract

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KUALA LUMPUR (Jan 18): Mesiniaga Bhd has secured a contract worth RM1.9 billion for the Malaysia International Internet Gateway (EM-IIG) project undertaken by Xiddig Cellular Communications Sdn Bhd.

Mesiniaga said the contract is for the commissioning of the core, metro distribution and access network with related support systems for the EM-IIG project.

The contract, which is effective from today, will end on March 31, 2020 and is expected to contribute positively to the company's earnings and net assets over the contract period, the group said in a stock exchange filing.

Mesiniaga said none of its directors or substantial shareholders have any interest in the contract.

Today's contract win comes on the heels of its RM27.4 million EM-IIG contract — for the four-month delivery of lab equipment and site preparation for service testing and verification — secured on Dec 28.

The EM-IIG project, costing RM5.45 billion, involves the installation of undersea fibre-optic cable linking Hong Kong's international Internet hub to Sabah, Sarawak and Peninsular Malaysia, with the aim to increase Internet speed, access and efficiency at a cheaper rate.

Shares in Mesiniaga closed one sen or 0.87% higher at RM1.16 today, for a market capitalisation of RM70.67 million.