Memorandum of Agreement entered between GEMS Malaysia Sdn. Bhd. and Prestariang Systems Sdn. Bhd., a wholly owned subsidiary of Prestariang

BackApr 30, 2013
Type Reply to query
Reply to Bursa Malaysia's Query Letter - Reference ID YL-130426-38661
Subject Memorandum of Agreement entered between GEMS Malaysia Sdn. Bhd. and Prestariang Systems Sdn. Bhd., a wholly owned subsidiary of Prestariang
Description PRESTARIANG BERHAD ("PRESTARIANG" OR "THE COMPANY")
Memorandum of Agreement ("MOA") entered between GEMS Malaysia Sdn. Bhd. ("GEMS") and Prestariang Systems Sdn. Bhd. ("PSSB"), a wholly owned subsidiary of Prestariang
Query Letter Contents
We refer to the query letter dated 29 April 2013 from Bursa Malaysia Securities Berhad ("Bursa Securities").

Further to the announcement dated 24 April 2013, the Board of Directors of the Company wish to provide the following additional information pertaining to the MOA:-


Reply to Query (1) - The tenure of the MOA.

One (1) year from the commencement of the training under GEMS 2.0 - O&G Sector program. Reply to Query (2) - Whether the MOA is renewable.

There is no clause on renewable of the MOA as this is a pilot project.

Reply to Query (3) - The risks in relation to the MOA.

Advances In Technologies And Products

The generally rapid rate of technological advances in ICT products and services may lead to the rapid obsolescence in ICT training and certification courses that are focused on outdated technologies and products. There is a risk on the demand for certifications may decline as newer technologies are developed and introduced.

The ICT industry is dynamic and is constantly evolving. As technologies become obsolete, new or improved technologies and products will be created to replace them. These new and improved technologies will continue to provide business opportunities. Operators in the ICT industry that constantly review and update their products and services to meet evolving technologies and product changes will continue to be relevant to meet the needs of the ICT industry and users of ICT.

Political and Economic Risks

The program’s operation may be affected by new development in political situation and economic conditions in Malaysia. Such uncertainties include but are not limited to changes in the political leadership, slowdown in economy, new policies and regulations which may impose and/or increase restrictions in the conduct of business.

Notwithstanding the macro uncertainties which are beyond our control, we believe that the recent ICT led initiatives by our Government to promote talent development specifically in the Oil & Gas ("O&G") industry within the local graduate communities will contribute positively to our Group's business prospect.

Reply to Query (4) - The companies defined as Host Companies.

The term “Host Companies” is defined as the participating O&G sector to host the trainees and deliver the on-the-job training during the training period.

Currently, we have just started working out the details of the MOA and are in the process of identifying the host companies as our partners

This Announcement is dated 30 April 2013.

 


Announcement Info

Company Name PRESTARIANG BERHAD  
Stock Name PRESBHD    
Date Announced 30 Apr 2013  
Category General Announcement
Reference No CS-130430-40EE0