KUALA LUMPUR: The current lack of a decision on the National Integrated Immigration System (NIISe) project is unlikely to impede MY E.G. Services Bhd's (MyEG) ability to secure another three-year extension for its e-government concession.
MIDF Research said this was due to MyEG's impressive track record, adding that a decision on the extension was expected in May.
The government reportedly is deliberating on whether to continue or cancel the NIISe project, which has fallen behind schedule.
Iris Corp Bhd was awarded the project in March 2021 but as of March 2023, the progress reportedly had not been satisfactory.
The Cabinet has given the Home Ministry until next month to submit a memo on the project.
MIDF Research said only 10 per cent of the project had been completed.
"If the cancellation is confirmed, we believe it to be a positive development as the NIISe project is set to replace myIMMs system used by the Immigration Department, which has been in operation for over 20 years.
"The current myIMMs system is outsouced to vendors, one of it is MyEG. Therefore, a termination of NIISe may benefit MyEG as it could increase its chance securing extension."
The firm added this should give greater clarity and a more solid outlook to MyEG's core road transport and immigration divisions which were undergoing renewal processes.
"However, if the immigration services are transferred back to the Immigration Department, we expect that it could result in a long-term 20 per cent decrease in MyEG's earnings," MIDF Research said.
