KUALA LUMPUR (April 13): Matrix Parking Solution Holdings Bhd has signed a memorandum of understanding (MOU) with Managepay Systems Bhd (MPay) and Netton Resources Sdn Bhd for, among others, a cashless payment system at the Langkawi International Maritime and Aerospace Exhibition (Lima) 2023, according to its bourse filing on Thursday (April 13).  

The MOU includes establishing the cooperation between Matrix Parking and MPay for the management of the cashless payment system at Lima 2023 from May 23 to 27, after a four-year hiatus due to the Covid-19 pandemic.  

The MOU also entails the formation of a joint venture (JV) between the three parties — Matrix Parking, MPay and Netton — for the purposes of launching a mobile-based automobile-related financial technology (fintech) app and a new automobile businesses venture such as electric vehicle (EV) charging and event organising ecosystem.  

“The board, having considered all aspects of the MOU, is of the opinion that the MOU is in the best interests of the company,” it said.  

Under the MOU, MPay is obliged to design and develop a Super App for the JV company using MPay Fintech building blocks and provide the budgetary costing, which includes in-house and outsource for each module to the JV company for board approval. 

Meanwhile, Matrix Parking and Netton are responsible to provide all the available current or future sites that are managed by Matrix Parking for Super App implementation and engage with suppliers to provide hardware and application programming interface (API).  

“This MOU will take effect from the date of the last signature date, and a definitive JV agreement shall be executed by the parties within 90 days from the execution of this MOU, upon which this MOU shall be terminated unless sooner terminated by the parties,” it stated. 

MPay, in a separate filing said that the intention of the MOU is to kickstart the business by launching a mobile-based automobile-related fintech app in Malaysia with revenue and/or profit sharing, and to set up a JV company within three months for future expansion with other automobile business.  

“The risk factors involved in this MOU at this juncture is minimal and in the event MPay enters into a definitive agreement, the management of the company will exercise due care in considering the associated risks and benefits,” it said.  

The MOU is not expected to have any material effect on both Matrix Parking and MPay’s earnings per share, net assets per share and gearing of both companies for the financial year ended Dec 31, 2023 (FY2023).  

They also disclosed that none of its directors, major shareholders and/or persons connected with the parties have any direct or indirect interest in the MOU.  

At lunch break, MPay was 4.35% or half a sen higher at 12 sen, giving it a market capitalisation of RM103.36 million, while Matrix Parking was untraded. It last closed at 18 sen apiece for a market capitalisation of RM40 million.