Introduction

The Board of Directors ("Board") of MPay is pleased to announce that ManagePay Services Sdn. Bhd., a wholly-owned subsidiary of the Company ("MPSB"), had on 22 April 2026 received and accepted the Letter of Award dated 15 April 2026 ("Letter of Award") issued by ECRL Operation Sdn. Bhd. ("Employer" or "EOSB") to appoint MPSB to carry out the services of supply, delivery, installation, integration, testing, commissioning and maintenance of the open payment system for East Coast Rail Link ("ECRL") passenger ticketing system ("ECRL System"), subject to the terms and conditions as stipulated in the Letter of Award ("Works").

Information of the Parties

MPSB

MPSB is a Bank Negara Malaysia licensed Fintech company engaged in the business of development, provision and management of payment services, privilege and loyalty programmes, card issuing and acquiring business and its related payment technology, business know-how and security requirements thereto, and provision of logistics support.

EOSB

The East Coast Rail Link (ECRL) is a 665-kilometer railway network designed to connect Malaysia's east and west coasts, enhancing regional connectivity across Kelantan, Terengganu, Pahang, and Selangor. The ECRL project will comprise 20 stations - ten passenger stations and ten combined passenger and freight stations.

Phase 2 of the project continues the line from Gombak to Port Klang, passing through Serendah, Puncak Alam, and Jalan Kastam linking to one of Malaysia's busiest ports. This segment is vital for freight transport, allowing goods from the East Coast to be directly shipped to Port Klang and Klang Valley logistics hub.

EOSB, a joint venture between Malaysia Rail Link Sdn Bhd (MRL) and China Communications Construction Co Ltd (CCCC), will manage rail operations, which are scheduled to commence in January 2027.

Salient Terms of the Letter of Award

The salient terms of the Letter of Award, are inter alia, as follows:-

(a)        MPSB shall develop, install, test, commission and complete an initial proof-of-concept system comprising the Sunmi POS pairing Pinpad solution ("POC System") within four (4) months from 15 April 2026 ("Date of Commencement") and shall end on 14 October 2026, unless otherwise extended or varied in accordance with the provisions of the Letter of Award and payment processing agreement to be executed (collectively, "Contract"), and thereafter complete the Works in accordance with the Contract within a period of six (6) months from the Date of Commencement;

MPSB shall be entitled to remuneration solely by way of the applicable Merchant Discount Rates ("MDR") on successful transactions processed during the payment processing period from 1 December 2026 or the date on which the first successful external commuter payment transaction is processed through the live ECRL System, whichever is later, and shall continue for a period of sixty (60) months and the Employer may, at its discretion, extend the payment processing period for a further period of sixty (60) months, on the same terms and MDR then applicable, unless otherwise agreed in writing by the Parties.

Financial Effects

The Letter of Award will not have any effect on the issued share capital and shareholdings of the substantial shareholders of the Company. However, it is expected to contribute positively towards the earnings and net assets per share of the Company for the financial year ending 30 June 2027 and onwards.

Directors' and Major Shareholders' Interest

None of the Directors and/or major shareholders of MPay and/or persons connected with them have any interests, direct or indirect, in the Letter of Award.

Statement by Directors

Having considered all aspects of the Letter of Award, the Board of the Company is of the view that the acceptance of the Letter of Award is in the best interest of the Company.

Approvals required

The Letter of Award is not subject to approval of the shareholders of MPay and any relevant regulatory authorities.

This announcement is dated 24 April 2026.