MoH’s project provides multiple opportunities for MyEG, says CGS-CIMB

by BERNAMA / FILE PIX

The appointment of My EG Services Bhd (MyEG) as COVID-19 test screening service provider by the Ministry of Health (MoH) would provide multiple monetisation opportunities, CGS-CIMB Research said.

The research house analyst Mohd Shanaz Noor Azam said said there will be three monetisation opportunities from the project, namely COVID-19 test screening fee, which ranges from RM30 to RM150 for Malaysians and RM60 to RM250 for foreigners, depending on the type of COVID-19 detection test.

Secondly, a service fee for mandatory quarantine at a private facility and thirdly, a “meet and greet” service to assist travellers throughout the processes.

“We understand that the COVID-19 test screening will be done twice, once on arrival and again on the 14th day after arrival,” he said in a research note.

On Oct 8, MyEG received a letter of acceptance from the MoH for an online payment system project which will enable travellers to register and make payment on arrival for COVID-19 screening tests and quarantine charges at all entry points.

The analyst said the project is intended to facilitate the government’s measures to control the outbreak of COVID-19 by enhancing and expediting the process of administering COVID-19 screening and designating quarantine locations for travellers.

The project duration is from November 2020 to October 2022.

Mohd Shanaz said the latest passenger traffic data published by Malaysia Airports Holdings Bhd indicated about 85,000 international travellers in August 2020.

“Assuming a 50-50 mix between arriving and departing passengers, we estimate an average of 1,300 international arrivals daily and we see room for higher COVID-19 test screening demand with the potential recovery in tourist arrivals of 10 million in 2020 to 18.6 million in 2021 and 39.9 million in 2022,” he said.

CGS-CIMB reiterates its add call on MyEG, with an unchanged target price of RM1.96.