In a filing with Bursa Malaysia today, Opcom said the termination of the collaboration agreement with effect from today does not contravene any of the agreement’s provisions.

“The board is also of the view that the termination of the agreement will not have any material financial impact on the company and its subsidiaries,” it said.

Opcom is the country’s largest manufacturer of fibre optic cables, supplying such cables to the Malaysian telecommunications industry.

In its Bursa Malaysia announcement on Oct 22, 2021, Opcom said it entered into a collaboration agreement with Global Forway to form a 60:40 JV company called Opcom Vision Sdn Bhd, in a move to push into the 5G sector.

It also said Global Forway had the necessary licences and expertise for Opcom to expand its suite of services to include value-added services.

Global Forway holds network facilities provider, network service provider and application service provider licenses from the Malaysian Communications and Multimedia Commission.

“These services include connectivity services involving dedicated internet access, and point-to-point leased lines, security services such as managed security monitoring, as well as data centre services encompassing co-location services and data centre internet access to cloud services,” it said.

Opcom’s shares closed half-a-sen lower today at 74 sen, giving the company a market capitalisation of RM282.26 million.