Mun Siong, in FY2021, wrote an impairment loss for trade receivables on amounts du from Highbase. Highbase is the local partner to the Worldwide Master Service Agreement for Integrated Turnaround and Maintenance Mechanical Static awarded by Petroliam Nasional Berhad (Petronas).
After commencing legal actions against Highbase Strategic Sdn Bhd as announced in May this year, Mun Siong Engineering says it has received a series of payments from Highbase to its associate company, Pegasus Advance Engineering Sdn Bhd (PAE M). The total amounts received amounts to RM3.4 million ($1.0 million).
The amount will be written back in the company’s 2HFY2022 results and will have a “material positive impact” on Mun Siong’s results for the FY2022.
