KUALA LUMPUR (May 30): MyEG Services Bhd reported an 8.6% increase in net profit for its third financial quarter ended March 31, 2018  (3QFY18) to RM58.55 million from RM53.9 million a year earlier, on higher transaction volumes for its foreign worker services.

This includes higher transaction volumes from the online renewal of foreign workers’ permits (FWP), foreign workers rehiring programme services (FWR services) and foreign workers’ insurance from both FWP and FWR services, the group said in a filing with the stock exchange today.

The e-government services provider also saw contribution from its foreign worker job matching and placement programme which commenced in 2QFY18 and increase in revenue contribution from its motor vehicle trading related services

Revenue for 3QFY18 grew by 12.4% to RM111.53 million from RM99.22 million in 3QFY17.

For the first nine months of the year, MyEG reported an almost 20% increase in both net profit and revenue to RM170.38 million and RM318.8 million respectively.

However the group said that increases were offset by higher personnel-related expenses and operating expenses to support the growth in FWP and related services, as well as higher interest cost from the term loan to finance its newly acquired building, MyEG Tower in Empire City, Damansara.

On its prospects, the group said that while concession services continue to be its core business, non-concession related services such as its job matching and placement programme is expected to continue to contribute to its growth for FY18.

The group also said it is cautiously optimistic on working with the new Pakatan Harapan government.

“MYEG’s board of directors is cautiously optimistic that we will be able to work with the government of the day to continue rolling out new e-government services whilst maintaining the level of the current services which will continue to benefit the Malaysian public, consistent with the new coalition government’s manifesto.

“However, in view of the recent pronouncements of the new government to abolish the current goods and services tax regime, the board wishes to clarify that the company will wait for the official details by the government in regards to the implementation of the new tax system before making the necessary announcements to Bursa Securities.

“In addition, the board wishes to reiterate should there be any changes in policy of the new ruling government which affects any of the services or projects to date, the company will review and make the necessary impairments or provisions for all investments and expenditure incurred to date where deemed necessary and prudent in FY18,” the group said.

Since Pakatan Harapan’s historic win in the 14th General Elections on May 9, 2018, MyEG shares have plunged as much as 70.5% from RM2.58 on May 8 to a three-year low of 76 sen today. Within the period, some RM6.5 billion of the stock’s market capitalisation has been wiped out. Today MyEG's market capitalisation stood at RM2.7 billion.