The source said the extension is to ensure the government’s services are not affected by delays in the completion of the National Integrated Immigration System (NIISe) project.

“MyEG’s contract was supposed to end on May 22, but the ministry has decided to extend the contract until the NIIS system is completed,” said the source.

In February, then immigration director-general Khairul Dzaimee Daud said all immigration services would soon be managed by the department through the NIISe.

These include services handled by third-parties like MyEG, which had been given a three-year contract extension worth RM208 million to provide immigration related services in July 2020.

Previously, the government had allocated RM900 million to the home ministry to implement the NIISe.

In March, home minister Saifuddin Nasution Ismail said Putrajaya had yet to decide whether to scrap the NIISe project awarded to Iris Information Technology Systems Sdn Bhd.

Saifuddin said the project did not reach the desired level of progress under the company.

Last week, Putrajaya agreed to give MyEG a “non-exclusive” three-year extension for the e-government services it provides to the road transport department (JPJ).