Microlink Adds RM59.58 Million Immigration Screening Work in One-Year Extension
The contract now runs to November 2027 and covers additional airlines, infrastructure, licences and maintenance.
Microlink Solutions has secured a RM59.58 million, one-year extension for work on Malaysia's Advance Passenger Screening system, increasing the value of its Home Ministry contract to RM137.92 million excluding sales and service tax.
The extension runs from Nov. 6, 2026, to Nov. 5, 2027, taking the total contract period to 36 months. Microlink Systems, the group's wholly owned subsidiary, accepted the ministry's letter on Nov. 6, according to the company's bourse announcement.
The additional scope includes continued application services for bringing more airlines onto the system, infrastructure services, software licence renewals, support and maintenance. The system is being provided for the Immigration Department.
The company said a supplementary agreement would formalise the extension and that the subsidiary must furnish a performance bond under the contract's terms. The additional award continues an existing project rather than replacing it with an unrelated immigration system.
How the Original Award Compares
Microlink's original November 2024 disclosure put the project value at RM83,508,902.40 including 6% sales and service tax. It covered the two years from Nov. 6, 2024, to Nov. 5, 2026.
The original work involved studying, proposing, designing and developing the APS system, followed by supply, delivery, installation, integration, testing and commissioning. The new scope adds continued service and wider airline onboarding to that established project.
The RM78.34 million original value shown in the latest announcement is the amount excluding tax. Adding the RM59.58 million extension produces the new RM137.92 million tax-exclusive total. Comparing that total with the original RM83.51 million headline without accounting for tax would mix two different bases.
The initial award was accepted on Nov. 5, 2024, and announced two days later. The new period starts immediately after the original two-year term, keeping the stated contract timeline continuous through November 2027.
Airlines, Software and Support
The Star's report on the extension confirmed the new duration and the additional work for airline onboarding, infrastructure and software licences. Those components are material to a system that must keep operating while more carriers are connected.
For the supplier, the award provides another year of contracted work. The face value is the value of services over that term, however, rather than a statement that the full amount has already been earned or collected.
The company's announcement did not provide a new list of participating airlines, an onboarding timetable for each carrier or a measured change in passengers' processing times. The contract extension should therefore be assessed on its disclosed service scope and duration, without assuming a particular operational improvement for every traveller.
Contribution Depends on Delivery
Microlink expects the extension to contribute positively to revenue, earnings and net assets per share over the extended period, including its financial year ending June 30, 2027. That is the company's expectation, rather than a separately verified forecast of the size of the profit contribution.
The board identified timely delivery, the availability of technical resources and dependence on third parties as normal execution risks. It said the subsidiary would manage them through monitoring and experience gained from delivering the existing contract.
The extension does not change the group's issued share capital or substantial shareholders' holdings, and the company said no shareholder or government-authority approval was required for the award itself.
The next steps are formalisation through the supplementary agreement and delivery of the continuing services. Those developments will determine how the additional contracted value translates into the company's reported results.