:p

PROPOSED DIVERSIFICATION OF THE PRINCIPAL ACTIVITIES OF MLABS AND ITS
SUBSIDIARIES TO INCLUDE FACTORING, DEVELOPMENT FINANCING, LEASING AND
BUILDING CREDIT BUSINESS (“PROPOSED DIVERSIFICATION”)
“THAT approval be and is hereby granted to the Board of Directors of the Company (“Board”) to diversify the
existing businesses of the Company and its subsidiaries to include factoring, development financing, leasing and
building credit business.
AND THAT the Board be and is hereby authorised and empowered to do or procure to be done all acts, deeds
and things and to execute, sign and deliver, for and on behalf of the Company, all such documents as are
necessary to give full effect to and implement the Proposed Diversification with full powers to assent to any
conditions, modifications, variations and/or amendments in any manner as may be required or imposed by the
relevant authorities and/or parties, together with full powers to take all steps and actions as the Board may deem
fit, necessary and/or expedient to give full effect to and implement the Proposed Diversification.”
By Order of the Board
Chong Voon Wah (SSM PC No. 202008001343) (MAICSA 7055003)
Thai Kian Yau (SSM PC No. 202008001515) (MIA 36921)
Company Secretaries

ya ya diversify , lepas tu jualkan semua kpd papajack ataupun RCE, padan muka korang hehe

Prospects of our Group
Our Group is currently operating in four segments, namely Research and development, and
assembling, Factoring Business, Trading and Others business segments. Our Group is committed
to enhance long-term shareholder profit and has been actively identifying other business
opportunities to expand our revenue stream.
Our Group’s venture into the Factoring Business via the Acquisition of Ikhlas is intended to provide
a new recurring income stream as it provides our Group immediate access into the Factoring
Business. Our Group has embarked on the task of transforming Ikhlas’ conventional factoring
business into a digital-based factoring entity by leveraging its technology capabilities. This can
create an efficient and streamlined factoring process that can help clients and businesses access
funding quickly and easily.
The inclusion of Ikhlas as part of our Group has also enabled our Group to potentially benefit from
cross-selling opportunities. Our Group may leverage on our existing client base and offer factoring
service as an additional service to its clients. This can help to deepen our Group’s relationships with
our clients and create additional revenue streams for our Group.

In addition, our Group has been investing in digitalisation and automation, which has enabled us to
offer more efficient and effective factoring services to our clients. This has allowed our Group to
differentiate itself in a competitive market and to attract more customers. Having investing in
digitalisation, Ikhlas created a seamless customer experience, enabling clients to submit invoices,
track payments, and manage accounts online, significantly reduces the turnaround time for
processing, which is a key differentiator in the industry. Besides, with its digital platform and
automation capabilities, Ikhlas can handle a higher volume of transactions, making it highly scalable.
Ikhlas can easily adapt to changing market conditions and customer needs, which is essential in the
fast-paced finance industry. Our Group’s technological capabilities give an advantage in the highly
competitive factoring market by leveraging our expertise in the fintech sector to offer innovative
and customised factoring solutions to our clients.
Additionally, with Ikhlas being a Shariah-Compliant factoring house approved by the MOF, Ikhlas’
target customers are contractors and suppliers, generally the MSMEs appointed by government,
namely through the e-Perolehan platform, a government one-stop service and supply procurement
platform. These MSMEs customers are perceived to be more credible and financially stable since
they have been vetted by the government to provide goods and services. These government
contracts also have predefined payment schedules, which make it easier for Ikhlas to evaluate and
monitor loan repayment, supported by direct payments from the government through the ePerolehan platform, thus minimising collection risk.
Due to the nature of the Factoring Business, the expansion of our Group’s Factoring Business
requires cash funding in order for our Group to increase its capacity to provide financing to its
prospective factoring clients, subject to our Group’s credit risk assessment or review of each
application for our factoring services. As such, the quantum and timing of financial resources
required to be committed are not determinable at this juncture but are dependent on the availability
of funds for our Group’s Factoring Business. In addition, our Group will also continuously identify
new target customers or market segments which fits within Ikhlas’ risk appetite or profile with good
credit and/or financial records. Our Group may fund such funding requirements via, among others,
its internally-generated funds, bank borrowings, fund-raising exercises to be undertaken in the
future (if required) and proceeds from the exercise of our Group’s outstanding warrants (if any).
In light of the favourable outlook of the factoring industry in Malaysia as set out in Section 4.2
above and the performance of the Factoring Business in the latest unaudited 9M FPE 31 March
2023 as set out in Section 2.1 of this Circular, our Board is of the view that the Factoring Business
will contribute positively to our Group’s revenue and profitability in the future

Overview and outlook of the factoring industry in Malaysia
The factoring industry in Malaysia, based on the revenues of industry players offering factoring
services, grew from RM98.4 million in 2017 to an estimated RM149.1 million in 2021 at a
compound annual growth rate (CAGR) of 10.9%. Based on Providence’s estimates, the factoring
industry achieved a growth rate of 8.0% in 2022. Providence forecasts the factoring industry in
Malaysia to register a similar growth rate of 8.0% in 2023.
Factoring industry in Malaysia
(Source: Malaysian Factors Association, Companies Commission of Malaysia, and analysis from
Providence)
Moving forward, the prospects and outlook for the factoring industry in Malaysia is positive with
demand for factoring services supported by the following factors:
(a) Malaysia has seen a steady growth of newly registered companies at an average increase of
3.7% annually between 2016 and 2022. According to latest available data from the
Companies Commission of Malaysia, new companies in Malaysia grew from 1.2 million in
2016 to 1.5 million in 2022. This steady growth trend is expected to continue in light of the
nation’s developing economy over the long-term. The growing number of registered
companies provides opportunities for growth of the factoring industry in Malaysia.
(b) Malaysia recorded a total of RM264.6 billion worth of approved investments in the
manufacturing, services and primary sectors in 2022 across 4,454 projects. Of the total
investments approved, foreign investments accounted for RM163.3 billion or 61.7%, with
domestic investments accounting for RM101.3 billion or 38.3%. The services sector
attracted RM154.0 billion of the total approved investments, followed by the manufacturing
sector at RM84.3 billion, while the primary sector received RM26.3 billion. Malaysia’s
performance is a testament to investors’ confidence in Malaysia as a preferred investment
hub, particularly the conducive business ecosystem in providing high-skilled talents and
having strong readiness in advanced technology. This, in turn, further bolsters Malaysia’s
role as a prominent site in global companies’ manufacturing networks, enhancing the
nation’s position as an investment destination in the region. Malaysia is expected to continue
attracting investments, especially foreign investments, as the economy recovers. This will
bode well and create demand for factoring services as companies need to ensure they have
the cash flow necessary to meet their current and immediate obligations such as for the
purchase of raw materials.

The Proposed Diversification is part of our Group’s plan to diversify our business activities and to provide
another stream of revenue to reduce our Group’s dependencies on our existing core business in Research
and development and assembling of mobile application solutions. In an effort to further expand our earning
bases, Ikhlas serves as an entry point for our Group to venture into the Factoring Business.
Our Group has identified the Factoring Business to diversify its business activities mainly due to the
following:
(i) the growing demand for the factoring services in Malaysia which grew at a compound annual
growth rate of 10.9% from 2017 to 2021 based on the overview and outlook of the factoring
industry in Malaysia of the IMR Report as set out in Section 4.2 of this Circular; and
(ii) the relevant experiences of our key management personnel, namely Tan Sik Eek (the Executive
Director of our Company), Hui Kiat Bin (the Chief Executive Officer of our Company) and Razif
Mohar (the Chief Executive Officer of Ikhlas) in the financial and IT industries as detailed in
Section 2.3 of this Circular, vis-à-vis the Factoring Business and market strategy adopted by
Ikhlas.
Further, our Board is of the view that the Proposed Diversification is expected to improve our Group’s
financial performance and allow our Group to be in a better financial footing in the long run in view of the
recent financial performance of Ikhlas which recorded a PAT of approximately RM1.09 million for the
latest unaudited 9M FPE 31 March 2023.
Our management remains cautiously optimistic of our Group’s long-term prospects associated with the
expansion of our Group to include Factoring Business as part of our business activities and maintain our
existing business after the Proposed Diversification.
Premised on the above and barring any unforeseen circumstances, our Board anticipates that the Proposed
Diversification will enhance our Group’s financial performance and business portfolio moving forward.

Razif Mohar
Razif Mohar, a Malaysian aged 59, was appointed as the Head of Factoring of Ikhlas on 15
December 2021 and was subsequently promoted as Chief Executive Officer of Ikhlas in
January 2023, a position in which he currently holds. He is responsible for leading and
overseeing all aspects of Ikhlas’ operating and strategic directions.
He graduated with a Diploma in Business Studies in 1987 and Bachelor Degree in Business
Administration with First Class Honours in 1998 from Institut Teknologi MARA (ITM). In
2002, he obtained Master in Business Administration (MBA) from Universiti Teknologi
MARA (UiTM).
In April 1988, he started his career as a Correspondence Clerk in Great Eastern Life
Assurance (Malaysia) Berhad, reported to the policy serving department for administrative
task. In July 1990, he left Great Eastern Life Assurance (Malaysia) Berhad, and joined
Survey Research (M) Sdn Bhd as a Retail Auditor in December 1990 for a period of 6 months.
In June 1991, he joined Malayan Banking Berhad as a Credit Officer and had his career
advancement throughout the 17 years and became the Head of Dealer & Receivables
Financing (Automobile) department. He was responsible for product innovation and
development, new business acquisition, credit evaluation and approval.
In December 2008, he left Malayan Banking Berhad and joined Asian Institute of Chartered
Bankers (“AICB”) in January 2009 as a Research and Development Manager. He was
mainly responsible for technical and non-technical research, learning need analysis and
industry competency management during his 1 year tenure in AICB.
In May 2010, he joined Automotive Aftersales Industry (M) Sdn Bhd as a Research and
Development Manager. He was responsible for strategic, market and product research.
In May 2011, he left Automotive Aftersales Industry (M) Sdn Bhd to join Ikhlas as Head of
Factoring in June 2011 as one of the pioneers in setting up Ikhlas. In February 2020, he left
to Ikhlas and joined El Nuwr Capital Sdn. Bhd. (“El Nuwr”) as Head of Factoring and was
responsible for setting up the factoring business in Malaysia for El Nuwr in March 2020. In
September 2021, he left El Nuwr and took a career break and subsequently return to Ikhlas
as Head of Factoring in December 2021. He has been an integral member of Ikhlas as one
of the pioneers, bringing him a wealth of knowledge and experience in the field of Islamic
finance.
Based on the expertise and vast experience of the key management personnel as detailed above, our Board
is of the view that our Group has the necessary expertise and experience to manage the Factoring Business

The selected financial information of Ikhlas based on its audited financial statements for the
FYEs 31 December 2020 and 31 December 2021 and 6M FPE 30 June 2022 as well as
unaudited financial statements for the 9M FPE 31 March 2023 are as follows:
Audited Unaudited
FYE 31
December 2020
FYE 31
December 2021
6M FPE 30
June 2022(1)
9M FPE 31
March 2023
(RM’000) (RM’000) (RM’000) (RM’000)
Revenue 2 Nil 1,145 4,249
PAT/(LAT) (1,045) (295) (721) 1,088
NA (7) 4,698 3,978 5,066
Note:
(1) Ikhlas changed its financial year end from 31 December to 30 June to coincide with the
financial year end of our Company.
For the 6M FPE 30 June 2022, Ikhlas recorded a revenue of approximately RM1.15 million
mainly due to administrative / processing and factoring fees charged on the factoring clients
for its factoring services.
In 6M FPE 30 June 2022, Ikhlas recorded a LAT of approximately RM0.72 million mainly
due to professional fees of RM1.06 million, comprising legal fees and feasibility study
expenses, incurred in relation to the joint venture agreement entered into between Ikhlas and
Seacera Builders Sdn Bhd, a wholly-owned subsidiary of Seacera Group Berhad, on 25
March 2022 to jointly development of the Malay reserved lands located in Mukim Sungai
Karang, Daerah Kuantan, Negeri Pahang into 137 holiday home villas with all necessary
infrastructure, facilities and development components, as announced by our Company on 25
March 2022.
2.2.2 Share capital
As at the LPD, Ikhlas is a wholly-owned subsidiary of Mlabs Capital Sdn Bhd, which in turn
is a wholly-owned subsidiary of our Company. The issued and paid-up share capital of Ikhlas
is RM2,500,000, comprising 2,500,000 ordinary shares

Details of Ikhlas
2.2.1 History and principal activities
Ikhlas was incorporated in Malaysia on 24 May 2010 under the laws of Malaysia as a
private limited company. Ikhlas is principally engaged in factoring, development finance,
leasing and building credit business. As at the LPD, Ikhlas is operating from its principal
office located in Petaling Jaya, Selangor and does not have any branch or outlet for its
Factoring Business. At this juncture, the principal market for the Factoring Business is
Malaysia as Ikhlas’ target customers are contractors and suppliers appointed by
government through the e-Perolehan platform.
Its operations have been approved by the MOF since 2011 (which is not subject to renewal
and/or any further conditions to be complied with), allowing it to engage in activities such
as development financing, leasing, building credit and factoring. Pursuant thereto, Ikhlas
has commenced its operations on 1 June 2011. Being a MOF-approved factoring company
enables Ikhlas to receive payment directly from the MOF for invoices factored from
government contractors and service providers, who are its primary customers.

hehe

On 14 December 2021, our Company had completed the acquisition of 100% equity interest in
Ikhlas via our wholly-owned subsidiary, Mlabs Capital Sdn Bhd. The Acquisition of Ikhlas is a
strategic move by our Group to venture into the Factoring Business, diversifying our Group’s
earning bases and reduce business concentration risk. For information purpose, the Acquisition of
Ikhlas was not subject to the approval of the shareholders of our Company or other relevant
authorities.
After the Acquisition of Ikhlas, our Group’s principal activities are segmented into the following
segments:
(i) Research and development, and assembling;
(ii) Factoring Business;
(iii) Trading; and
(iv) Others.
Our Group has a diverse portfolio of products and services that cater to our clients’ needs, including
mobile messaging, digital advertising, and e-commerce.
Based on the latest audited financial results for the FYE 30 June 2022 and the unaudited 9M FPE
31 March 2023, the key financial performance of our Group are as follows:
For the unaudited 9M FPE 31 March 2023, the Factoring Business has generated higher revenue of
approximately RM4.25 million as compared to RM1.15 million generated for the FYE 30 June 2022
which was mainly due to the following:
(i) increase in demand from government contractors who required funding to bridge their
working capital pending collection for goods sold under the government’s centralised
procurement platform, namely, ePerolehan; and
(ii) increase in funding available for the Factoring Business. In this regard, on 5 April 2023, our
Company had announced to vary up to RM8.54 million of the un-utilised proceeds raised
from the Private Placement to fund the working capital of the Factoring Business
(“Variation”), which mainly comprises the funds or capital required to be disbursed to its
customers for the Factoring Business.
Audited Unaudited
FYE 30 June 2022 9M FPE 31 March 2023
Operating
segments
Revenue
Contribution
to our
Group’s total
revenue
PAT/
(LAT) Revenue
Contribution
to our
Group’s total
revenue
PAT/
(LAT)
(RM’000) (%) (RM’000) (RM’000) (%) (RM’000)
Research and
development,
and assembling
16,996 80.85 (17,683) 9,715 61.14 (3,804)
Factoring
Business 1,145 5.45 (1,015) 4,249 26.74 1,088
Trading 1,056 5.02 (647) 1,041 6.55 (730)
Others 1,825 8.68 (1,628) 884 5.57 (2,206)
Subtotal 21,022 100.00 (20,973) 15,889 100.00 (5,652)
Eliminations (153) 6,629 (168) 2,749
Total 20,869 (14,344) 15,721 (2,903)
2
3
The Variation was not subject to the approval of the shareholders of our Company or any
regulatory authorities as the Private Placement was undertaken pursuant to the general mandate
obtained from the shareholders of Mlabs during the annual general meeting convened on 26
November 2020.
Premised on the above, our Board anticipates that the Factoring Business will potentially
contribute 25% or more of our Group’s net profit and/or result in a diversion of 25% or more of
the NA of our Group. As such, in accordance with Rule 10.13(1) of the ACE LR, our Board
proposes to seek approval from our shareholders in the forthcoming EGM for the Proposed
Diversification.
Notwithstanding the Proposed Diversification, our Group remains committed to our other existing
businesses

uptrend ka? UP 2sen/// makan roti canai, capati, dhal , dll kat rumah lagi jimat.. usah makan kat kedai hehe

mau bertaubat ka? jadi islamic ahlong kini haha nampak papajack or RCE buat duit, ikut kini pulak




www.ikhlasaldain.com/ mlabs' focus now :)


Ikhlas Al Dain
• Invoice Factoring
• Leasing
• Development Finance

• Building Credit

MLABS SYSTEMS BERHAD
Registration No. 200401014724 (653227-V)
(Incorporated in Malaysia)
CIRCULAR TO SHAREHOLDERS IN RELATION TO
PROPOSED DIVERSIFICATION OF THE PRINCIPAL ACTIVITIES OF MLABS SYSTEMS
BERHAD AND ITS SUBSIDIARIES TO INCLUDE FACTORING, DEVELOPMENT
FINANCING, LEASING AND BUILDING CREDIT BUSINESS (“PROPOSED
DIVERSIFICATION”)
AND
NOTICE OF EXTRAORDINARY GENERAL MEETING
Adviser
The Notice of Extraordinary General Meeting (“EGM”) of our Company together with the Proxy Form are
enclosed in this Circular.

total share issued was ~72mil after consol, yesterday ~7% of total shares traded/// with current low total shares, the price is very volatile.. wait n see.. macam belum ada gameplay by hidden hand geng lagi hehe

for example, pasukhas, also up like crazy b4 the right issue... to attract investors to subscribe the RI, see whether the same tactic is recycled for Mlabs if the right issue is approved

i think, bursa would reject any right issue request. just use the existing funds in the company ... divest in those related co punya shares

usah banyak cerita, jualkan semua kpd papajack, habis cerita haha

MLABS SYSTEMS BERHAD
Registration No. 200401014724 (653227-V)
(Incorporated in Malaysia)
CIRCULAR TO SHAREHOLDERS IN RELATION TO
PROPOSED DIVERSIFICATION OF THE PRINCIPAL ACTIVITIES OF MLABS SYSTEMS
BERHAD AND ITS SUBSIDIARIES TO INCLUDE FACTORING, DEVELOPMENT
FINANCING, LEASING AND BUILDING CREDIT BUSINESS (“PROPOSED
DIVERSIFICATION”)
AND
NOTICE OF EXTRAORDINARY GENERAL MEETING
Adviser
The Notice of Extraordinary General Meeting (“EGM”) of our Company together with the Proxy Form are
enclosed in this Circular.

Can sell their stake to papajack... Hahaha

PPJACK (0242) Overview - PAPPAJACK BERHAD - I3investor
Stock name: PPJACK, Stock Code: 0242, Company: PAPPAJACK BERHAD, Sector: FINANCIAL SERVICES. ... Stock on Radar - Pappajack ... share price at above Rm1. 2023-12-27

Cash rich with zero gearing, high cash per share... Any white knight like in KNM to fight with the hidden hand gang? Famous yah hehe

Greatly undervalued... Market cap only rm10mil+ few million RMs could wrest of control over mlabs n kick the hidden hand gang out kidding

Cronyism abolished hehe

Starting September, DRB-Hicom unit, PUSPAKOM, will operate alongside other licensed vehicle inspection service providers, ending its three decade monopoly. This is part of the Transport Ministry's efforts to reduce monopolies and introduce healthy competition. Daniel Fernandez, Managing Editor of dsf.my explains the impact of these developments.

www.ikhlasaldain.com/ mlabs' focus now :)

Ikhlas Al Dain
• Invoice Factoring
• Leasing
• Development Finance

• Building Credit

https://www.ikhlasaldain.com/ mlabs' focus now :)

It would be easily changed hand. On paper, hidden hand gang does not have a convincing controlling stake :)

Analysis of Shareholdings
As at 29 September 2023
LIST OF TOP 30 HOLDERS
(Without Aggregating Securities from Different Securities Accounts Belonging to the same Registered Holder)
NO. NAME HOLDINGS %
1. M&A NOMINEE (ASING) SDN BHD
EXEMPT AN FOR SANSTON FINANCIAL GROUP LIMITED (A/C CLIENTS)
324,704,900 22.40
2. TAN YOUNG TAT 21,789,900 1.50
3. SU HOW GIONG 20,000,000 1.38
4 LIAN FONG CHEE 14,000,000 0.97
5. CHAN TIN WAI 11,700,000 0.81
6. AU SHIUN CHOUR 11,540,000 0.80
7. WONG AH YONG 11,456,800 0.79
8. SOO OON LAM 11,000,000 0.76
9. UOB KAY HIAN NOMINEES (ASING) SDN BHD
EXEMPT AN FOR UOB KAY HIAN PTE LTD (A/C CLIENTS)
10,000,000 0.69
10. HSBC NOMINEES (ASING) SDN BHD
EXEMPT AN FOR THE HONGKONG AND SHANGHAI BANKING CORPORATION
LIMITED (GCHK-LAZARUS)
9,000,000 0.62
11. CHUNG KIN CHUAN 7,500,000 0.52
12. NG KIM HUAT 6,961,300 0.48
13. BAN BOON SENG 6,900,000 0.48
14. CHIN CHEE KEONG 6,389,900 0.44
15. TA SECURITIES HOLDINGS BERHAD IVT (P06) 6,199,000 0.43
16. LIEW SWEE MIN 6,000,000 0.41
17. OOI KOON CHUAN 6,000,000 0.41
18. KENANGA NOMINEES (TEMPATAN) SDN BHD
PLEDGED SECURITIES ACCOUNT FOR GAN POH MUN
5,850,000 0.40
19. PUBLIC NOMINEES (TEMPATAN) SDN BHD
PLEDGED SECURITIES ACCOUNT FOR LIM KHEK KENG (E-TAI)
5,750,000 0.39
20. TEOH HIN HENG 5,750,000 0.39
21. KENANGA NOMINEES (TEMPATAN) SDN BHD
PLEDGED SECURITIES ACCOUNT FOR CHIN LEONG CHOY
5,700,000 0.39
22. EE KIM CHENG 5,500,000 0.38
23. CITIGROUP NOMINEES (ASING) SDN BHD
EXEMPT AN FOR OCBC SECURITIES PRIVATE LIMITED (CLIENT A/C-NR)
5,000,000 0.35
24. ROBERT TANG ENG HUI 5,000,000 0.35
25. TING KWONG KEONG 5,000,000 0.35
26. SEE CHII WEI 4,999,700 0.35
27. CHIA GIN FOOK 4,500,000 0.31
28. MAYBANK NOMINEES (TEMPATAN) SDN BHD
FOR TAN SUN PING
4,500,000 0.31
29. SOO KEE HIN 4,400,000 0.30
30. KENANGA NOMINEES (TEMPATAN) SDN BHD
CHIN KIAM HSUNG
4,200,000 0.29
TOTAL 556,068,200 38.45

A Price/Book ratio of 0.1+ could imply that the stock is unreasonably valued in relation to the company's net assets.

Would hidden hand gang cash out by selling to others or privatising it b4 selling to others?

Any gameplay? :)

Next, pasukhas ka? hahaha https://www.klsescreener.com/v2/news/view/1303483/macc-to-charge-casio-king-robert-tan-over-rm4-5b-spanco-deal-tomorrow

18.5 to 24sen today, what a range hehe

cayland island pun ada. haha

geng hongkong, dll mungkin rush in bila2 masa wait n see hehe

cash equivalents~rm50mil, market cap cuma rm10mil++ gearing sifar// salah dimana hehe

it would attract speculators or pejudi2, haha

mungkin hidden hand group collect enough then push up, taktik yg sama, jumlah syer terlalu sedikit kini ~72mil shares

jumlah syer tak banyak... senang dimanipulasi
Share Issued 72.470m

perlu beberapa RM juta untuk touch 30 to 40sen hehe

researchers should use mlab as a case study for strategies used by hidden hand gang hehe banker belum masuk kot?

joe after consol naik... adakah hidden hand akan sokong? wait n see

VWAP:0.2064 harga purata traded shares pagi hingga kini

study the share price behaviour post consol... many hidden hand shares pun akan consol tak lama lagi hehe

VWAP:0.2064

look like ada gang mau sapu bersih mlabs nanti :)

Market Depth
Best Buy
Position

Price

Volume

Orders

1

0.20

118,800

3

2

0.195

2,150,500

13

3

0.19

1,170,000

7

4

0.185

1,400,100

6

5

0.18

1,420,500

7

Best Sell
Position

Price

Volume

Orders

1

0.19

14,900

1

2

0.195

155,800

2

3

0.20

217,700

12

4

0.205

187,000

4

5

0.21

133,300

10

looking at the queue now, macam tsunami is coming

08MLABS SYSTEMS BERHAD | ANNUAL REPORT 2023
Karina binti Idris Ahmad Shah
Independent Non-Executive Director
Malaysian | Female | 54
Qualification She holds the following qualifications:-
(a) Bachelor of Laws (LLB Hons) from the National University of Malaysia (UKM)
Working Experience Ms. Karina binti Idris Ahmad Shah was appointed as the Independent Non-Executive Director
of the Company on 1 June 2023. She has over 15 years of extensive in house experience as a
legal consultant in a wide variety of disciplines, namely telecommunication, construction, fast
moving consumer goods (FMCG) and oil and gas industry.
She started her career in the Attorney Generals Chamber as Federal Counsel in 1994. Her
role was managing procurement contracts for the Army, Navy and Air Force. She moved to
private practice in 1996 with the firm Abu Talib Shahrom & Zahari as an Advocate & Solicitor.
She was then seconded to PLUS Bhd to manage the legal department and was involved in
various corporate exercises. In 2000 she moved to Johor Bahru and joined a commercial
property arm of the Kuok Group of Companies. In 2007 she was hired to set up the legal
unit for Iskandar Regional Development Authority (IRDA) a statutory body to develop Iskandar
Malaysia in Johor. She and her team successfully organised 5 members of the authority and
advisory council meetings with the Prime Minister’s office, government stakeholders and joint
ministerial meetings between Malaysia and Singapore.
In 2011, she took on a legal role in Doha, Qatar for a Malaysian construction firm that was
involved in the construction of the Ministry of Interior.
Upon her return from the Middle East she joined Zico Insource as a Legal Consultant. She has
been assigned to various organisations that include Time dot com, Heng Yuan Refining Co.
(fka Shell Refining Co.), Dutch Lady Milk Industries Bhd, Genting Bhd, Bumi Armada, Maxis
Bhd and Axiata Enterprise Sdn. Bhd..

Hah :)


Blogs Headlines
CEO Morning Brief
Mlabs to Diversify Into Factoring Industry

edgeinvest
Publish date: Thu, 18 May 2023, 09:06 AM

Mlabs to diversify into factoring industry
KUALA LUMPUR (May 17): Mlabs Systems Bhd, which principally engages in the business of research and development of mobile application solutions, has proposed to diversify its business activities to include factoring and related business activities.

This came after Mlabs completed the acquisition of an entire stake in Ikhlas Al Dain Sdn Bhd in December 2021, which aims to diversify the group’s earnings base and reduce business concentration risk.

Ikhlas has been approved by the Ministry of Finance (MOF) to conduct the business of factoring, development financing, leasing, and building credit since 2011. As an MOF-approved factoring company, Ikhlas is able to collect payment directly from the ministry for invoices factored from government contractors and service providers who are Ikhlas’ main clientele.

Ikhlas' company website showed that its financial products cover both accounts payable and receivable financing and it funds government procurement contracts as well as that from government-linked companies (GLC).

Mlabs’ bourse filing with Bursa Malaysia on Wednesday (May 17) showed that the rationale for the proposed diversification stems from the group facing intense competition in the market and was loss-making for years, including the latest cumulative six-month period ended Dec 31, 2022 (6MFY2023).

“In an effort to further expand its earning bases, Ikhlas serves as an entry point for the group to venture into the factoring industry. Should the proposed diversification be approved by the shareholders of the company, Mlabs is able to expand its revenue stream to include factoring and related business activities,” it said.

In view of the growing demand within the factoring market segment, Mlabs said the proposed diversification is expected to improve the group’s financial performance and would allow the group to be in a better financial footing in the long run.

However, the management of Mlabs remains cautiously optimistic of the long-term prospects associated with the expansion of the group to include factoring as part of its business activities.

Hence, the board anticipates that the proposed diversification will enhance the group’s financial performance and business portfolio moving forward.

The proposed diversification into the factoring business is anticipated to potentially contribute 25% or more of the group’s net profit, and/or result in a diversion of 25% or more of the group’s net assets, said Mlabs.

The diversification proposed is subject to the approval of the shareholders of Mlabs at the EGM.

It should be noted that the factoring business contributed revenue of RM2.63 million, or 23.56% of the group’s total revenue of RM11.01 million, for 6MFY2023, making the segment the second largest revenue contributor after research and development and the assembling segment, which contributed 63.45% or RM7.07 million of the group’s revenue.

For Ikhlas, audited financial results showed the company posting losses after tax (LAT) of RM1.05 million in FY2020, RM295,000 in FY2021 and RM721,000 in FY2022.

Shares in Mlabs settled unchanged at 1.5 sen, translating into a market value of RM22 million.

Source: TheEdge - 18 May 2023

Serius ka? :)

https://theedgemalaysia.com/node/667418

FACTORING SERVICES (IKHLAS AL DAIN)
This segment has been growing rapidly and benefited from steady government spending in procuring
services and supplies for everyday operations. With the government approval of RM32.0 billion in
the 2023 budget to procure recurring services and supplies, Ikhlas is presented with a significant
opportunity to source for vetted government suppliers who require financing assistance to complete
the delivery of their tenders.
Our target customer mainly focuses on MSMEs appointed contractors supplying various goods and services (e.g., agriculture,
cleaning service, F&B, IT, security service, etc) to the federal government and agencies. These customers are perceived to be
more credible and financially stable since they have been vetted by the government to provide the required goods and services.
These contracts also have predefined payment schedules and deliverables, which make them easier for Ikhlas to evaluate and
monitor the repayments, supported by direct payments that have already been assigned to Ikhlas through the e-Perolehan (eP)
platform, thus minimising collection risk.
Our primary focus is on eP-awardees of the federal government contracts from major federal ministries which include the
Ministry of Defence, Ministry of Education, Ministry of Home Affairs of Malaysia, Ministry of Health, Prime Minister’s Office, and
selected government agencies.
Moving forward, the team is studying non-eP-awarded contracts from selected Government-linked companies, public university
institutions, state governments, and statutory bodies. Similar to the eP contracts, the team is targeting short-term (i.e. less than
six (6) months) non-eP contract awardees that all have been approved and allocated yearly budgets for procurement of goods
and services (i.e. Supply contracts entailing delivery of goods such as machinery and equipment, food, etc and service contracts
involving provision of security and cleaning duties among many other recurring services.), thus ensuring that funds are readily
available to pay us upon delivery of contacts. We will identify appropriate public institutions and government agencies that have
a proper accounts payable system in place to secure our interest as the factoring house, thus minimising the potential collection
and performance delivery risks.
Mlabs had on 28 June 2023 diversified and included this factoring service as one of the Group’s core businesses after this business
has contributed more than 25% of the net profits of the Group under Section 10.13 of Chapter 10 Ace Listing Requirements
of Bursa Malaysia Securities Berhad. Furthermore, Mlabs had on 25 October 2023 announced a Rights Issue with Warrants
exercise (refer to page 23) to bolster this segment expansion plan. We are also actively identifying suitable funding from other
avenues to raise more working capital for the same purpose.

INBASE PARTNERS
In FYE 2023, Inbase Partners dealt with a few significant challenges including the adaptation to the
client’s transition from their original desire for a software platform to trade dory gold to Lithium. This
switch required a considerable amount of time and effort especially to accommodate their preferences.
There were also delays from our client in initiating trading activities via our own developed “Catch Markets” commodity trading
platform. Aside from the investment in developing and refining of our products, external factors such as client readiness and
external dependencies also contributed to these delays. Furthermore, the ever-changing crypto market conditions pose constant
risks and challenges. The volatility in the banking sector, specifically relating to the failures of Silicon Valley Bank and Signature
Bank has had a direct impact on the client’s activities with Inbase Partners.
With the demand for Lithium Ore, indicating strong growth potential for Inbase Partners, recent news has also highlighted a
large transaction to secure this resource. The ongoing drive towards green energy has poised an early position and captured a
substantial share of this market.

MOVING FORWARD
Overall, we anticipate that the short and medium-term trend macro environment remains challenging as global economies
continue to seek a sustainable and lasting solution in taming the inflation and rising interest rate and growing geopolitical tension
stemming from ongoing Russo-Ukrainian and Isreali-Hamas conflicts. Coupled with additional concerns about Malaysia lower
than expected gross domestic product results for the second and third quarters of 2023, coupled with a potential increase of
Sales and Service Tax (SST) from 6.0% to 8.0% announced in the federal government’s 2024 budget, businesses will continue
to exercise prudence and selective spending which continues to put pressure towards several of our business segments namely
on Enterprise Systems Integration, Trading, Distribution, Digital Marketing & Event Management business segments.
Nevertheless, we foresee that our Factoring Services, Enterprise System Integrator, Fintech Development, and investment
businesses to remain our main revenue drivers for the Group in the financial year ending 30 June 2024 (“FYE 2024”). These
three business segments have established their customer network and pursuing ongoing business strategies by exploring new
opportunities to secure more projects and contracts.
Domestically, we expect more activities from our factoring services and enterprise system integrator businesses as the Country’s
drive to improve MSMEs and tech venture ecosystem. However, with the proposed increase in SST, we foresee direct products
and services pricing pressure on our enterprise system integrator business due to the higher SST impacting directly on our
software-based solutions and professional services which results in higher acquisition costs by our customers. Our factoring
services will benefit from the federal government’s 2024 budget proposal for the procurement of goods and services remains
at an estimated RM38.2 million or about 9.7% of the total RM393.8 billion, which gives an avenue for our team to engage new
government contractors in this area.
Whilst our overseas-based fintech development and investment business is in the early stage talks with prospective corporate
clients to partner up with our own Catch Markets trading platform to be offered to their clientele.
Our training service and digital mobile application business segments are still in their infancy stage and both business heads have
placed their emphasis on improving their product innovation and service quality while exercising prudence in their expenditures.
We will closely monitor the recent federal government’s 2024 budget presentation and implementation to mitigate potential
impacts against the Group’s overall business activities. A potential areas for us to tap on are the government-approved contractors
and suppliers for the Rumah Mesra Rakyat programme by Syarikat Pembangunan Nasional Berhad (“SPNB”) to offer affordable
housing to low monthly income groups of RM5,000, 5G technology enhancements, and maintenance and upgrade works for
various public institutions.
The Group aims to continuously seek other growth opportunities within domestic markets and all business heads are endeavoured
towards bolstering our market presence to increase sales and customer base in FYE 2024.

Revenue information based on geographical location of customers are as follows:
Group
2023 2022
RM RM
Malaysia 14,702,438 16,076,506
Cayman Islands 7,309,192 4,497,194
Taiwan 481,534 295,351
22,493,164 20,869,051
(b) Non-current assets based on where the assets of core businesses and geographical locations of the key
operating companies, excluding financial instruments defined under MFRS 9, are as follows:
Group
2023 2022
RM RM
Malaysia 43,599,460 42,494,356
Taiwan 6,391,422 8,648,655
Hong Kong 610,418 713,661
50,601,300 51,856,672

Here’s an overview of our business segments within the Group:-
• Investment and holding of
investment properties
• Network Integration
• Data Center Build & Solution
• Cybersecurity
• Collaboration
• Cloud computing &
Co-Location
• Microsoft Solution
• Performance Optimisation
Inbase Partners
• Blockchain & Digital Assets
Advisory Services
• Fintech Technology Research
and Development
• High-Frequency and Quant
Trading Solutions
• Investment Managed
Account Services
• Software Application
Development
• Trading of Precious Metals
• Branding
• Digital Marketing
• Online Media Portal
• Offline Marketing
• Business Events
Organiser
• Seminar and Training
Organiser
• Trading of kitchen
equipment and related
products
• Private fine-dining
services
• Information technology
related services
• E-Commerce
• R&D and Provisioning
of Digital Business Card
(Mobile Application)
• Application and Web
Development
• Invoice Factoring
• Leasing
• Development Finance
• Building Credit
Winelouvre
• Trading of alcohol product

Razif Mohar (“Razif”)
Malaysian | Male | 59
PROFILE OF HEAD OF BUSINESSES – IKHLAS AL DAIN
He acts as Head of Factoring of Ikhlas
Al Dain Sdn. Bhd.. He possesses
a master’s degree in Business
Administration (MBA) from Universiti
Technologi Mara (UiTM). Razif has
over 30 years of experience in the
banking and financial sector. He
started his career in a managerial
position at Maybank as Head of Dealer
& Receivables Financing. During his
tenure at Maybank, Razif and his team
were tasked to perform due diligence
for the bank’s branch operations in
the Philippines and Indonesia. He
also conducted a feasibility study on
automotive financing products for
Maybank in Jakarta, Indonesia. Razif
was one of the pioneers in setting up
Ikhlas Al Dain Sdn. Bhd..

AUDIT COMMITTEE
Chairman
Chuah Hoon Hong
Member
Mejar Dato’ Ismail bin Ahmad (R)
Professor Emeritus Dr. Sureswaran
Ramadass
NOMINATING COMMITTEE
Chairman
Professor Emeritus Dr. Sureswaran
Ramadass
Member
Mejar Dato’ Ismail bin Ahmad (R)
Chuah Hoon Hong
REMUNERATION COMMITTEE
Chairman
Professor Emeritus Dr. Sureswaran
Ramadass
Member
Mejar Dato’ Ismail bin Ahmad (R)
Chuah Hoon Hong
OPTION COMMITTEE
Chairman
Ong Tee Kein
Member
Tan Sik Eek
Chuah Hoon Hong

Share Issued 72.470m
Market Cap RM14.494m@20sen

VWAP:0.2111Avg Vol/Trans:143.75Buy Rate:34%