My EG Services Berhad Annual Report 2021

ANNUAL REPORT 2021 253 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS ʹˢ˥ ˧˛˘ Ѓˡ˔ˡ˖˜˔˟ ˬ˘˔˥ ˘ˡ˗˘˗ ʦʤ ʷ˘˖˘ˠ˕˘˥ ʥʣʥʤ (CONT’D) 49. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (CONT’D) (i) On 12 April 2021, the Company further subscribed to a total of 5,923,415 shares of MYEG Philippines, a joint venture of the Company, with par value of P1.00 per share representing 15% of the enlarged issued and outstanding capital stock for a total consideration of PHP43,704,000 which is equivalent to approximately RM3,723,300. As at the financial year end, the Company holds a 40% equity interest in MYEG Philippines. (j) On 27 April 2021, the Company announced that its existing e-commerce platform NAK BELI has been rebranded to BELI e-Mart, which will offer same day delivery for customers residing within Petaling Jaya and the vicinity of its two newly opened BELI Mart grocery stores in Puchong and SS15 Subang Jaya. (k) On 3 May 2021, the Company had informed that the Court of Appeal had dismissed MYEG and MECSB’s appeal against the decision by Kuala Lumpur High Court in affirming the decision by the Malaysia Competition Commission (“MyCC”) for violating competition law and having a dominant position in relation to the sale of mandatory insurance for online applications of temporary employment permits for foreign workers (“Pas Lawatan Kerja Sementara”). There is no financial impact for the financial year ended 31 December 2021 as MYEG and MYEGC has fully paid up the fines amounting to RM9.64 million in the financial year ended 31 December 2019. (l) On 6 May 2021, the Company received a letter of acceptance from MIMOS Berhad in relation to the provision of service desk and its related services for vaccine traceability system (“the Project”). The tenure of the Project is for a period of one year from 1 June 2021 to 31 May 2022 with an option to extend for a further one (1) year term upon its expiry. The total value of the Project for the first year is approximately RM400,000 and RM250,000 for the optional one (1) year extension. (m) On 24 May 2021, the Company entered into a Memorandum of Understanding with Breathonix Pte Ltd (“BRX”) to pursue the following objectives:- (i) establish a commercial relationship with BRX and to obtain regulatory approval in Malaysia to sell and/or lease the breath analysis technology developed by BRX for identifying certain Covid-19 biomarkers and correspondingly producing rapid Covid-19 test results. (ii) establish an exclusive distribution relationship with BRX for the sale and/or lease of BRX Technology and its Associated Systems in Malaysia. Further on 25 November 2021, MYEGM, a wholly-owned sub-subsidiary of the Company received a notification from the Medical Device Authority (“MDA”) under the Ministry of Health Malaysia dated 24 November 2021 on their concurrence for the use of Breathonix’s BreFence Go COVID-19 Breath Test System (“BreFence Go”) for mass screening, in accordance with the prevailing national protocols and guidelines pertaining to COVID-19 infection control. On 8 December 2021, MYEGM received a letter from MOH to allow the deployment of BreFence Go as an alternative COVID-19 screening method at the country’s entry points including international airports in accordance with the Government’s prevailing policies and guidelines. On 22 December 2021, MYEGM entered into a Comprehensive Exclusive Distribution Agreement (“Agreement”) with BRX for the purpose of appointing MYEGM as the exclusive distributor for all market segments in Malaysia for the marketing, sale and distribution of the contractual products in relation to the BreFence Go as stated in the Agreement for a period of 3 years commencing 22 December 2021 (“Initial Term”) and automatic yearly renewal for 1 year term after the Initial Term and subsequent terms. The Agreement shall now supersede the MOU entered on 24 May 2021. (n) On 16 June 2021, Bursa Malaysia Securities Berhad has resolved to grant an extension of time of 6 months from 15 June 2021 to 14 December 2021 for the Company to complete the implementation of the Proposed Placement.

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