Yesterday, My E.G. Services (MYEG) released an announcement on Bursa that the company has entered into an agreement to invest 10 million yuan (RM6.1mil equivalent) in China based education technology group Jingle Magic. This comes hot on the heels of the cabinet committee saying that MYEG and other companies are under review for monopolistic ways.
Investment in Jingle Magic
MYEG, through its wholly owned unit MyEG Capital Sdn Bhd, is investing 10 million yuan (RM6.1mil equivalent) in Jingle Magic (Beijing) Technology Co. (Jingle Magic).
Further, according to the release by MYEG yesterday, Jingle Magic was established in 2016 and is mainly involved in the development of virtual reality (VR), augmented reality (AR) and artificial intelligence (AI) based educational equipment and software. This investment is the second of its kind (in the VR/AR/AI space) for MYEG, who invested in Guangzhou based Ximmerse last year.
MYEG says that the investment forms part of MYEG’s overall strategy to continue tapping into disruptive technology that have the potential to bring benefits to society.
Under Review by the Government
News broke on Wednesday (3 Apr) that MYEG has been flagged by the cabinet committee on market monopolies. Domestic Trade and Consumer Affairs Minister Datuk Seri Saifuddin Nasution Ismail said that MYEG, along with pharmaceutical giant Pharmaniaga, rice purchaser Padiberas Nasional (Bernas) and vehicle inspection firm Puspakom are the four main companies being scrutinised by the committee.
Recommendations by the committee have yet to be submitted to the cabinet. According to Saifuddin, the three elements being considered in the assessment include whether the policies that allowed for the creation of these monopolies are still relevant, the size of their investments and the economic impact of potentially dismantling them (The Edge Markets, 4 Apr).
Source: Macquarie Research - 5 Apr 2019
https://klse.i3investor.com/blogs/kltrader/201069.jsp
