KUALA LUMPUR (Sept 15): MMAG Holdings Bhd has entered into an exclusive agreement that will see it providing ICT, worker transport and logistics services to a company involved in the East Coast Rail Line (ECRL) megaproject.

In a bourse filing, MMAG said that its wholly-owned subsidiary MMANTAP Sdn Bhd had entered into an exclusive partnership agreement with manpower consultant JR Joint Resources Holdings Sdn Bhd — who has been appointed to serve as consultant and service provider for the ECRL — to recruit, supply and provide total management solutions of foreign workers for the project by China Communications Construction (ECRL) Sdn Bhd (CCCECRL)

Under the agreement, MMANTAP will be responsible for all ICT aspects of JR's operations when it comes to the latter's operations with CCCECRL.

At the same time, the MMAG subsidiary will also provide workers logistics and transportation under the ECRL to designated worksites, while also being responsible for all financing aspects of JR when it comes to the implementation and execution of its agreement with CCCECRL.

"The directors of MMAG believe that the partnership will give MMAG Group an advantageous platform and better prospect in the future. The board believes that the partnership has potential and further the possibility of generating another stream of revenue source to MMAG Group's existing business as well as reduce its dependency on the existing business in the near future," MMAG noted on the agreement's rationale.

The IT services management company is expecting the agreement to contribute positively to its future earnings.

"This agreement shall commence from the date of the agreement and shall continue until all roles and responsibilities of the ECRL agreement have been fully complied with, or until the ECRL agreement has expired or has been terminated, or the agreement is terminated, whichever earlier," MMAG added.

MMAG shares finished 28.45% or 33 sen higher at RM1.49, valuing it at some RM1.53 billion. It saw 16.8 million shares done.