KUALA LUMPUR (March 15): My EG Services Bhd (MyEG) has joined forces with a Philippine company to develop electronic government services projects and provide electronic payment services in the Philippines.

The company signed an agreement today with i-Pay Commerce Ventures Inc (IPCVI) to establish a joint venture company with MyEG holding a 40% stake and IPCVI 60%.

IPCVI is a payment processing provider and a direct agent of Western Union in Philippines.

"The joint venture company will enable MyEG to expand its geographical presence in the Asean region and open new frontier where MyEG will be able to offer its expertise to operate government services and government related services through the Internet," said MyEG in a filing with Bursa Malaysia.

MyEG added that this will enable the company to continue to grow its business organically and continue with its expansion plans to offer its services to new markets.

According to the terms set out in the agreement, MyEG will invest up to US$2 million in three tranches, said MyEG, adding that the investment will be fully funded by internally-generated funds.

"The investment is not expected to have any material effect on the earnings per share of MyEG for the financial year ending June 30, 2017," said MyEG.

Shares in MyEG closed unchanged at RM1.82 today, giving a market capitalisation of RM6.56 billion.