Prestariang’s approved SKIN to be big boost to current earnings

KUCHING: Prestariang Bhd’s (Prestariang) approved ‘Sistem Kawalan & Imigresen Nasional’ ( SKIN) has been projected by analysts to be a big boost to the group’s current earnings.

Prestariang announced in a filing on Bursa Malaysia that the group received a letter dated November 15, 2016 from the government via Ministry of Home Affairs to confirm that the cabinet has approved for the group to implement SKIN.

The group revealed that SKIN is a government-led border transformation program that will give confidence, facilitate and encourage the movement of genuine people in and our of Malaysia.

“SKIN shall address both current and future operational demands including the facilitation in relation to Preventing and Combating Serious Crime, Homeland Security Presidential Directive- 6 and Visa Waiver Program,” the group said.

SKIN is a comprehensive and integrated technology platform to modernise the core applications and infrastructure of the national immigration system with the objective to enhance the national border security.

The group went on to highlight that when fully commissioned, SKIN will replace the current ‘Sistem Imigresen Malaysia’ (myIMMs).

“SKIN will also complement the existing ‘Sistem Pengurusan Pekerja Asing Bersepadu (ePPAx),” the group added.

According to the research arm of Public Investment Bank Bhd ( PublicInvest Research), the RM3.5 billion contract will be a 15-year concession, consisting a three-year building and deployment phase and a 12-year maintenance and technical operation phase.

PublicInvest Research noted that the contract value is inclusive of all costs incurred during both phases.

“It is expected to be fully commissioned by 2020 and will be installed in all immigration offices, including the country’s entry points as well as attached offices abroad.

“All-in, there will be a total of 236 SKIN project points to be installed,” the research arm said.

PublicInvest Research noted that Malaysia’s existing Immigration system is dated, with a need to completely overhaul the system, policies, people, processes and operations in order to improve the effectiveness of the national security system.

The research arm further noted that the implementation of the SKIN system also supports the country’s efforts in collaboration with the US under the Preventing and Combating Serious Crime and Homeland Security Presidential Directive- 6, which are the prerequisites for Malaysia to participate in the US Visa Waiver Programme.

“Assuming a 10 per cent to 15 per cent profit margin, the SKIN project could generate at least RM20 million to 30 million per annum to the group’s bottomline upon commissioning,” it said. “This will be a big boost to the group’s current earnings.”