KUALA LUMPUR: The government and Prestariang Berhad have agreed to the cancellation of the Immigration Department’s RM3.5 billion National Immigration Control System (SKIN) concession effective today.
Prestariang, whose subsidiary Prestariang SKIN Sdn Bhd (PSKIN) was given the task of developing the system, said in a statement today that it was in discussions with the government over compensation due to it in accordance with the formula set out in the concession agreement.
PSKIN had, on Dec 11, 2018, received a letter from the home ministry confirming the decision of the Cabinet to terminate the SKIN project.
Prestariang said today: “We wish to reiterate that PSKIN is not in default of the concession agreement. However, we respect the decision of the government to exercise its rights to terminate the concession by expropriation in accordance with the terms of the concession agreement and PSKIN does not intend to challenge the termination of the concession.”
In 2017 the previous government had appointed PSKIN to replace the Malaysian Immigration System (myIMMs) by 2020.
When Pakatan Harapan took over the government, Home Minister Muhyiddin Yassin said the government would cancel the SKIN concession to make way for the development of a new system that was “comprehensive, effective and user-friendly”.
The SKIN project was based on the Public Private Partnership (PPP) model, where PSKIN would finance, build, operate, maintain and ultimately, transfer the system to the government after 15 years.
PSKIN would, under the concession agreement, undertake the entire funding and execution of the SKIN Project.