Tuesday 26 Sep 2023
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PUTRAJAYA (May 25): Minister of Home Affairs (KDN) Datuk Seri Saifuddin Nasution Ismail does not rule out the possibility of replacing Iris Corp Bhd as the contractor of the National Integrated Immigration System (NIISe), if the identity products and solutions provider is unable to implement the project. 

In a written reply on Wednesday (May 24) to a question posed by Kota Melaka Member of Parliament Khoo Poay Tiong on the implementation status of NIISe, Saifuddin said the project is currently in the requirement and design study phase, and is expected to be operational in August 2025.

“However, if the existing contractor [Iris Corp] is found to be unable to implement the NIISe project, the government will appoint another contractor who is truly capable of implementing the project to ensure the new system for immigration services can be realised,” he added.

Saifuddin reiterated that NIISe is aimed at replacing the current Malaysian Immigration System (myIMMs), which the Malaysian Immigration Department has been utilising for over 20 years. KDN has deemed myIMMS to be outdated and no longer capable of meeting the immigration needs in the future.

In a bourse filing on Wednesday, Iris announced KDN had extended its wholly-owned subsidiary Iris Information Technology Systems Sdn Bhd’s (IITS) contract to provide NIISe by 12 months from Sept 1, 2025, to Aug 31, 2026. 

Following news of the contract extension, shares in Iris Corp gained as much as 14.3% to 12 sen on Thursday. At 3.28pm, it was trading at 11.5 sen with 19.75 million shares traded — more than double its 200-day average trading volume of 9.71 million shares.  

At 11.5 sen, the company is valued at RM358.18 million. Year-to-date, the counter has fallen 11.54%.

It is worth noting that back in February, Iris Corp inked a share sale agreement to offload an 80% stake in IITS for RM70 million cash to Tass Tech Technologies Sdn Bhd, which is wholly owned by Tass Tech (M) Sdn Bhd. 

Iris Corp said the deal, which is expected to conclude in August, will enable the company to unlock its investment in IITS and contribute positively to its cash flow, with proceeds to be used for working capital and future business expansion.

Edited ByLee Weng Khuen
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