KUALA LUMPUR (Feb 26): Datasonic Group Bhd has bagged a contract worth RM4.33 million from the Ministry of Home Affairs.

In a bourse filing today, Datasonic said its unit Datasonic Technologies Sdn Bhd had accepted a letter of award (LOA) from the ministry for comprehensive maintenance services of equipment, software and application of the facial live capture (FLC) image system at all issuing and receiving offices of the Immigration Department of Malaysia.

It said the contract is for a period of thirty-six months from yesterday (Feb 25, 2021) to Feb 24, 2024.

According to the LOA,  Datasonic Technologies is required to furnish a performance bond for RM72,084.11 to the ministry with a validity period from Feb 25, 2021 to Feb 24, 2025.

Datasonic said the contract is expected to contribute to its performance positively for the financial year ending March 31, 2021 (FY21) and the financial years thereafter for the duration of the contract. 

The group noted that the contract is subject to normal business risks, such as an increase in cost due to any escalation of material cost 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,” it said.

At the midday break today, Datasonic had dipped 1.96% or one sen to 50 sen, valuing it at RM1.35 billion.