The Board of Directors of Mlabs Systems Berhad (“Mlabs” or the “Company”) wishes to inform that Mlabs Research Sdn. Bhd. (“Mlabs Research”), a wholly-owned subsidiary of the Company, had on 23 April 2021 entered into a Supply and Installation Agreement (“SIA”) with XOX Com Sdn. Bhd. (“XOX Com”), a wholly-owned subsidiary of XOX Bhd (“XOX”) to supply, install, provisioning and subsequent support of the remote cloud-based Webex Contact Centre (“WCC”) to XOX Com.

The AI-powered digital solution powered by Cisco’s Webex enables enriched customer engagement experiences between businesses and their customers. It improves agent and customer experiences and optimises contact center performance with skills-based routing and data analytics. The WCC dynamically predict each customer’s needs and matches that need with the best agent, improving performance, first contact resolution, and customer satisfaction. The omnichannel feature allows the agents to attend to multiple customers via phone call, text chat, and email simultaneously without forgoing service quality and breakage. This cloud-based solution is an ideal platform for businesses seeking to digitilise their archaic customer support services with a highly scalable solution that is centrally managed, and yet operational anywhere. This allows businesses to have uninterrupted support services even at times when agents are required to work from home.

XOX Com is principally engaged in providing mobile telecommunication products and services without having its own spectrum and network infrastructure. Currently XOX is the No. 1 mobile virtual network operator (MVNO) in Malaysia, and has more than 2.5 million customers and 20,000 dealers nationwide.

Mlabs Research is principally engaged in the business of research and development in multimedia video conferencing system as well as assembling and trading of multimedia video conferencing system and equipment.

The SIA is for a period of 3 years, commencing on and from 23 April 2021, unless otherwise mutually extended or terminated by either party in writing. Either party may terminate the SIA upon delivery a written notice of at least 7 days prior to such termination should there be any breaches of material provision of the SIA not remedied within 30 days beforehand.

The SIA will not have any effects on the share capital and shareholding structure of the Company and is not expected to have any material immediate effect on the earnings per share, net assets per share and gearing of Mlabs for the financial year ending 30 June 2021. 

Similar to all business entities, the risk factors affecting the execution of the SIA, including but not limited to business risks such as prudent financial management, changes in political, economic and regulatory conditions. However, the Board will continue to exercise due care in considering the risks associated with the SIA and will take appropriate measures in planning the successful execution of the SIA.

The SIA being incurred in the ordinary course of business, is not subject to the approval of the shareholders.

Save as disclosed below, none of the directors and/or major shareholders of the Company and/or persons connected with them have any interest, whether direct or indirect, in the SIA :

(a) Common directorships of Mr Tan Sik Eek in Mlabs and XOX, and his shareholdings of 0.06% in Mlabs.

The Board, after due consideration, is of the opinion that the SIA is in the best interest of the Group.

This announcement is dated 23 April 2021.