The electronics manufacturing services (EMS) provider inked the MoU on March 9 this year to explore potential collaboration with Krakatoa to develop a battery management system-on-a-chip for EVs.
In a filing with Bursa Malaysia today, Betamek said the MoU termination notice, which requires a three-month notice period, was served on June 12 and was terminated effective today.
“After deliberation and consideration of the company’s circumstances, the board has decided not to proceed with the collaboration with Krakatoa and its wholly owned subsidiary Betamek Electronics (M) Sdn Bhd,” the filing said.
Krakatoa conducts business as a silicon intellectual property provider that uses open architecture (RISC-V ISA), focusing on power efficiency and customisation, and develops system-on-chip designs for several verticals.
Mirzan, the eldest son of former prime minister Dr Mahathir Mohamad, holds a 72% stake in Betamek via Iskandar Holdings Sdn Bhd.
In an interview last October, Mirzan, who is Betamek’s managing director, said the move towards EV will come faster than expected, and advances in technology are supporting this.
“Betamek is looking to invest and we are focused on strengthening our research and development,” he said.
He added Betamek is in a unique position to leverage on this growing market as hybrid, electric and autonomous vehicles gain global market share.
For FY2022, 95% of Betamek’s revenue was sourced from the Perodua Group, a business relationship that dates back to the mid-1990s.
On July 24, Betamek announced it secured a contract worth RM436.5 million to supply various electronic parts to Perodua’s new car model.
Previously in February, it had secured another contract worth RM123.5 million to provide electronic components to the second national car maker.
Betamek was listed on the ACE Market of Bursa Malaysia on Oct 26 last year, at an IPO price of 50 sen. On its debut, the counter hit an intraday high of RM1 before settling at 71 sen.
At press time, Betamek was down one sen or 2.08% lower at 47 sen with a market capitalisation of RM209.3 million.