THE Home Affairs Ministry has extended the contract for Datasonic Group Bhd regarding the provision of MyKad raw cards and consumables to the National Registration Department (NRD).
In its filing with Bursa Malaysia on Jan 16, Datasonic states that the letter of extension dated Jan 14, extends the contract period for an additional year to Dec 31, 2020.
This is an extension of the original contract awarded in May 2016, where Datasonic’s wholly-owned subsidiary, Datasonic Technologies Sdn Bhd was to supply 12 million units of MyKad raw cards and consumables over a period of three years and six months, from July 1, 2016 to Dec 31 2019, for a sum of RM260.4 mil.
However, the NRD only ordered 5.9 million of the 12 million units (49.71%) during the designated contract period, with “huge savings to the government”. This was attributed to the “better quality of the new MyKad raw cards and chips” by the group, which had resulted in a lower replacement rate of faulty chips and peel-off of MyKad cards.
The remaining 6.1 million cards and consumables from the original contract will be supplied over the aforementioned extended period, However, the subsidiary will have to extend the validity period of the performance bond to Dec 31, 2021.
At 2pm, Datasonic’s shares were last done at RM1.57, down two sen, with 7.06 million shares changing hands. – Jan 16, 2020
