MyEG 1Q net profit up 30% on higher foreign worker permit renewals

This article first appeared in The Edge Financial Daily, on November 30, 2017.
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KUALA LUMPUR: My EG Services Bhd (MyEG) reported a 30% rise in net profit for its first financial quarter ended Sept 30, 2017 (1QFY18) to RM52.78 million from RM40.51 million a year ago, thanks to higher online foreign worker permit (FWP) renewals.

The rise in profitability was also boosted by foreign workers rehiring programme services (FWR) and foreign workers’ insurance from both FWP and FWR, as well as a stronger revenue contribution from its motor vehicle trading-related services.

Quarterly revenue grew 25% year-on-year to RM98.04 million from RM78.6 million, its Bursa Malaysia filing showed.

On prospects, MyEG said continued growth in volume of its existing concession- related services, primarily FWP and FWR, and the online renewal of foreign workers’ insurance, are expected to contribute positively to group revenue and net profit.

“In our financial year ending June 30, 2018 (FY18), under our non-concession-related services, we have embarked on a job matching and placement programme [through which] we will match foreign workers registered under FWR with employers who require foreign workers.”

Its directors are cautiously optimistic that results for FY18 will continue to be satisfactory as more Malaysians adopt online government services as a convenient and cheaper alternative to transact with the government, it added.