KUALA LUMPUR (March 27): The Ministry of Finance (MOF) clarified that the RM356.56 million contract awarded to Edaran IT Services Sdn Bhd in early January this year is not related to the implementation of the e-Invoicing system by August 2024.

Instead, the contract pertains to the Sistem Maklumat Kastam (SMK) mainframe hardware and software rental service for the Royal Malaysian Customs Department, which hosts the primary customs taxation and inland tax management systems managed by the customs department.

"The contract involves a 48-month rental of mainframe hardware from January 1, 2024, to December 31, 2027, replacing the existing SMK mainframe hardware, which reached end-of-support status on August 31, 2023," MOF said in a written parliamentary reply to Datuk Seri Wee Ka Siong (BN-Ayer Hitam) on Wednesday.

The primary scope of the contract includes providing professional technical support and periodic maintenance services throughout its duration, along with migration services for systems and data from the current mainframe to the new one for the four regional zones of the customs department computer center.

Additionally, the contract involves offering technical training services and technology transfer to customs officers.

Regarding the implementation of e-Invoices, MOF noted that the Inland Revenue Board of Malaysia is in the process of developing the MyInvois system, expected to be fully operational before August 2024.

"This system aims to facilitate the exchange and management of e-invoices in a structured electronic format between sellers and buyers, accessible free of charge to all taxpayers," MOF added.

Edaran IT Services Sdn Bhd is a wholly-owned unit of Edaran Bhd. Edaran’s substantial shareholders are Valiant Chapter Sdn Bhd, holding a 23.8% stake, Kauthar Sdn Bhd (8.17%) and Unique Pyramid (7.93%).

Valiant Chapter is wholly-owned by Zamri Samsuddin, while Unique Pyramid is owned by Ruzila Ab Kadir, according to checks with the Companies Commission of Malaysia.

Meanwhile, Kauthar is 95%-owned by Edaran’s founder Tan Sri Tajudin Ramli, while the remaining 5% is held by his spouse Puan Sri Faridah Abdullah. Tajudin’s son, Fazlan Azri Tajudin, sits on the company’s board as an executive director.