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PETALING JAYA: Privasia Technology Bhd has secured two contracts collectively worth RM1.2bil from the Communications and Multimedia Ministry or MCM.

In a statement yesterday, the information and communications technology company said the contracts were secured by Konsortium Apex-Privasat, which is a joint venture between Apex Communications Sdn Bhd and Privasat Sdn Bhd (which is a wholly-owned subsidiary of Privasia).

“The contracts signed by Konsortium Apex- Privasat entails the installation of fibre optics and maintenance of fibre optic infrastructure in surrounding schools, residential, business, commercial and industrial premises under Phase 2 of the expansion of broadband infrastructure using the point of presence (PoP) method.”

Privasia said the contracts will cover the southern region (Negri Sembilan, Melaka and Johor) and northern region (Kedah and Perak) and are worth RM627.2mil and RM617.5mil, respectively.

“The duration of the contracts is for 96 months, where the implementation shall be completed in 36 months and followed by a 60-month warranty period.

“This project is expected to strengthen Privasia’s existing order book, which currently stands at RM50.3mil (excluding this contract).”

In a joint statement, Apex Communications Sdn Bhd group executive chairman Tan Sri Abdullah Ali and Privasia group chief executive officer and managing director Datuk Puvanesan Subenthiran said they were delighted to be awarded the opportunity to lend their expertise in developing the PoP infrastructure within Malaysia.

“We strongly believe a robust information communication technology infrastructure can boost the nation’s economic growth.

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“The PoP project will bridge the connectivity and mobility gap between rural and urban areas.

“This is especially since it is estimated that at least 432,300 premises would have high-speed broadband services when both Phase 1 and 2 are completed by the end of the 12th Malaysia Plan in 2025.”

Privasia reported a net loss of RM1.38mil in its second quarter ended June 30, 2022, on a revenue of RM8.56mil.

In a filing with Bursa Malaysia following the announcement of its second-quarter results, the company said 2021 was a relatively subdued year, disrupted with lockdowns across various months.

“Hence, with the re-opening of the economic sectors and economic recovery in full swing in 2022, Privasia is working hard to capitalise on the diverse range of customers who would be able to benefit from our technological solutions.

“The group has recognised the need for continuous research and development to meet the demands of its clients.”

The company said it was hopeful that delivery lead times will normalise in 2022.

“In addition, we are working on reducing delays in contract sign-offs from clients to reduce the likelihood of delays in revenue recognition in the group.

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