By Doreenn Leong
The government is believed to be re-tendering the RM2.5 bil Integrated Immigration System (IIS) due to some changes in the project’s specification. The request for proposal had closed on Aug 16 and saw some 30 bidders for the project.
It is learnt that there are four frontrunners for the project: Datasonic Group Bhd, HeiTech Padu Bhd, Opcom Holdings Bhd and S5 Systems Sdn Bhd.
The ISS is supposed to replace the RM3.5 bil Sistem Kawalan Imigresen Nasional (SKIN) project, which was awarded to education software licence purveyor Prestariang Bhd via direct negotiation in 2017.
At that time, SKIN was to replace the Malaysian Immigration System, which was awarded to HeiTech Padu. However, the new government under Pakatan Harapan terminated the project due to high cost and “weaknesses” in the SKIN concession.
Prestariang decided to make a legal claim of RM732.86 mil from the government as a result of the termination.
While much is learnt about the three listed bidders for the IIS contract, it is intriguing that S5 Systems is among the shortlisted bidders and could even be the dark horse in this bid.
S5 Systems is a global integrated security solutions provider, delivering solutions to governments and enterprises. It has a global clientele base spanning across many segments, including identity and documents security, law enforcement, intelligence monitoring, customs, immigration and border control.
So, who is behind S5 Systems? Based on filings on Companies Commission of Malaysia, NSA Technology Sdn Bhd is the holding company of S5 Systems. Meanwhile, NSA Technology is held by NSA Technology (L) Inc, which is believed to be controlled by a Malaysian businessman who is also involved in the e-government solutions and services.
There are talks that S5 Systems could seek a back-door listing via ConnectCounty Holdings Bhd, an interconnect and cable solutions provider.
The directors of S5 Systems are Syed Mohammad Hafiz Syed Razlan, Adi Wira Abd Razak and Aaron Lok Khy-Min.
The company posted a net profit of RM152.84 mil in the financial year ended June 30, 2014 (FY14), on the back of RM234.92 mil in revenue. However, its earnings and revenue plunged to RM7.23 mil and RM55.3 mil respectively in the subsequent financial year.
On a positive note, its financials started to improve in the following years. S5 Systems posted a higher net profit of RM108 mil in FY18 from RM64.5 mil the previous year, on the back of increased revenue of RM147.75 mil versus RM96.1 mil previously.
Key projects with Malaysian Immigration
Among S5 Systems’ key projects with the Malaysian Immigration Department are the i-Kad, National Enforcement and Registration System (NERS), and the Immigration Security Clearance (ISC) projects. The company is the key technical provider for these projects using its NexCode system. These projects contributed more than 93% of its FY16/FY17 revenues.
The i-Kad is a government-issued identity card for registered foreign workers, expatriates and their dependants in Malaysia. The i-Kad is a straightforward contract and is not a concession. S5 Systems’ subsidiary S5 Biotech Sdn Bhd is the contracting party with Percetakan Nasional Malaysia Bhd, the national printing agency that is responsible for supplying the card. The i-Kad was gazetted by the government on Feb 21, 2018.
The NERS project was established by the government to enable a nationwide registration and monitoring for all foreigners into and from Malaysia.
The contract tenure is for 12 years from 2011 to 2023.
The ISC project functions as the first and mandatory step of screening for prospective foreign workers, as the application processes take place in the respective home countries. The purpose of the ISC is to help the government combat unwanted or blacklisted foreign workers, and the detention or deportation of foreign workers after arriving in the country.
In 2017, S5 Systems was appointed by HeiTech Padu to integrate the foreign workers’ medical examination (FOMEMA) system with the Immigration Department’s system, and the provision of biometric verification capabilities at all clinics nationwide.
Only foreign workers with their fingerprints recorded under the biometric system can go through health screenings before getting employment.
