KUALA LUMPUR (July 1): Telekom Malaysia Bhd (KL:TM) said it has been awarded a RM1.25 billion contract to undertake a new emergency call system, which will be a continuation of the existing Malaysia Emergency Response Services 999 (MERS999) system.

TM said its wholly-owned unit, TM Technology Services Sdn Bhd, signed the concession agreement with the government, represented by the Ministry of Communications on Monday, to develop and operate the Next Generation Emergency Services 999 (NG999).

"NG999 will be for a period of 12 years, commencing from the effective date in 2024, the date of which will be determined by the government, until 2036,” said TM in an exchange filing.

The group said NG999 is a strategic digital platform for public to access emergency services offered by five key emergency agencies nationwide, namely the Royal Malaysian Police, Ministry of Health, Malaysian Fire and Rescue Department, Malaysian Maritime Enforcement Agency and Malaysian Civil Defence Force.

The platform also integrates response centress operated by TM Technology Services with emergency agencies control and operation centres, added TM.

The group expects the concession agreement to have a positive impact on its future earnings and net assets over the duration of the contract.

TM's net profit grew 29% to RM424.81 million for the first quarter ended March 31, 2024 from RM330.1 million over the same period a year earlier, thanks to lower operating costs. Quarterly revenue inched up 1.8% to RM2.84 billion from RM2.79 billion.

Shares of TM closed two sen or 0.30% higher at RM6.78 on Monday, giving the group a market valuation of RM26.02 billion. The counter has risen over 21% year to date.