In a note yesterday, the investment bank maintained its “buy” call on MyEG at 80 sen with an unchanged target price of RM1.16.

On Tuesday, Kota Melaka MP Khoo Poay Tiong claimed in the Dewan Rakyat that MyEG had continued to illegally collect fees for foreign worker permit renewal services despite the expiry of its contract with the immigration department.

MyEG has denied Khoo’s allegation.

The group clarified in its bourse filing yesterday that there has been no misrepresentation by itself regarding the services offered on its online platform.

The group also reconfirmed that all its services are consistently provided in accordance with the terms and regulations stipulated by the government.

Adherence to SOPs

In its note, Maybank IB opined that MyEG had adhered to all government-mandated SOPs despite continuing to collect the permit renewal fees after its contract had expired on May 22.

“This included full refunds to employers who sought to renew their worker permits directly with the immigration department, and were able to provide proof of payment of having done so,” it added.

MyEG’s management also revealed that the total quantum of refunds processed has been negligible to-date, said Maybank IB. This was primarily due to the low number of formal refund requests received thus far.

In July, MyEG said it had received a notification letter from the finance ministry, which agreed to an extension of the company’s contract on processing foreign worker permits.

MyEG said the terms of the extension will be finalised pursuant to further discussion with the government in due course and an agreement will be signed at a later stage.

But there has been no updates on the matter.

“The management is confident of receiving finalisation of the official concession extension in the coming weeks, which should then put this matter to rest,” Maybank IB said.

As at 4.57pm, MyEG’s share price was up 0.5 sen (0.64%) at 78.5 sen, giving it a market capitalisation of RM5.87 billion.