MYEG (0138) - Myeg - A Perspective (1) - YiStock
Apa sudah jadi? Here is my perspective.
When think of foreign worker permit renewal, everybody will link it to Myeg. Is the business good?
Last time - YES, because it is still far from the max that we can accept
Now- Maybe, because we are approching the limit that we are allow to take
FUTURE - Not sure, unless the limit increase again, maybe.
Here is the story,
(1) The Government has actually a cap limit for the max foreign workers that can work here. That is 15% from the CURRENT TOTAL work force of 14 million.
(2) Based on article publish in HRAsia on 3 Aug 2016, our foreign workers numbers now stood at 14% or about 2 million. Here is the link: http://www.hrmasia.com/content/malaysia-halts-foreign-worker-intake. I think similar news can be googled online. So, we are now left only 1% of the gap to fill.
Meaning to say, if Myeg, being the single only appointed agent to renew foregin worker permit, if to continue to renew the permit for these 15% of foreign workers work force untill 2020, the RECURRING INCOME is GOOD, But no new business is bad.
(3) When ministry actually halt the intake of new foreign workers from their country of origin into malaysia in February 2016 and tell local employers to get illegal foreign worker that currently in malaysia via REHIRING PROGRAM, Myeg share price actually halt from marching north since then. It started move south.
(4) Then Rehiring program started on 15 Feb 2016 and 3 companies has been mandated Companies mandated for this rehiring programme were Bukti Megah Sdn Bhd (for worker from Mymmar origin), International Marketing and Net Resources Sdn Bhd (indonesia origin) and MyEG (all other origin).
The online registration of illegal foreign workers was supposed to end on Dec 31, but the Cabinet decided to bring forward the deadline to June 30 following the lacklustre response. http://www.thestar.com.my/news/nation/2016/07/02/rehiring-programme-ends-more-than-150000-foreigners-have-been-registered/ more news: http://www.mtuc.org.my/myeg-appointed-to-manage-foreign-worker-rehiring-programme/, more news: http://www.nst.com.my/news/2016/05/148848/rehiring-programme-now-expanded-17-more-subsectors
(5) One must not mix up between REHIRING vs RENEWAL OF WORK PERMIT. After the legalising the illegal workers via rehiring process, the legalised worker still have to go through Renewal of work permit again.
(6) Then the Rehiring program extended again to 31 Dec 2017 http://www.thestar.com.my/business/business-news/2017/01/23/myegs-contract-to-register-foreign-workers-extended-till-year-end/ in hopeful that employers will continue to take up the rehiring opportunity.
(7) With the 1% gap to be filled, the boss has diversified.
"While MyEG’s primary business activities are the development and implementation of e-government services and the provision of solutions that are related to the e-government initiatives such as vehicle road tax and drivers’ licence renewal and foreign workers’ permit renewal, among others, it made an effort to diversify into commercial solutions three years ago.
The contribution to its commercial revenue consisted of solutions such as automobile insurance, foreign worker insurance, advanced credit and debit payment solutions, the sale of telecommunications services and the provision of hostel accommodations for foreign workers. To read more, just go: http://www.thestar.com.my/business/business-news/2017/02/13/myeg-diversifies-portfolio/
(8) Below the finanical performance of Myeg for past 10 years
First part conclusion:
Being a good business man, when the potential of near future is stagnant, we need to diversify to maintain growth.
To be continue......
MYEG (0138) - Myeg - A Perspective (1) - YiStock
http://klse.i3investor.com/blogs/YiStock/116268.jsp
