KUALA LUMPUR (Jan 9): The Government has extended the MyGov*Net concession for Telekom Malaysia Bhd (TM) for another 10 years until Dec 31, 2032. 

According to TM’s bourse filing, the project value of MyGov*Net is at a cap of RM4.9 billion, inclusive of 6% sales and service tax.

MyGov*Net is a government integrated telecommunication network that connects more than 10,000 government premises in Malaysia and Malaysian embassies overseas. The network integrates with the intranet, internet, government campus networks and public-sector data centres. 

“While MyGov*Net will contribute positively to earnings and net assets of the TM group for the current financial year ending Dec 31, 2023 and over the concession period, the new concession is lower in value compared to previously, with an impact on earnings of the TM group over the concession period,” TM said. 

It added that major risk factors affecting MyGov*Net include changes in the economic and global supply environment. 

“Further details and information will be announced upon the execution of the agreement between GITN Sdn Bhd (TM’s wholly owned subsidiary) and the Government,” TM said. 

On Monday (Jan 9), shares in TM closed seven sen or 1.32% lower at RM5.23 each, valuing the group at RM19.98 billion.