Report: MySJ Sdn Bhd agreed to pay RM338.6 million for MySejahtera IP and software license

It’s been a rough couple of days for the MySejahtera app, with people concerned over the issue of who actually owns the app and Anwar Ibrahim also raising concerns about ownership and risk of abuse of private health-related data of millions of Malaysians. In a turn of events, a new report by CodeBlue claims that there’s actually already been a deal between Entomo Malaysia Sdn Bhd (formerly known as KPISoft Malaysia) and MySJ Sdn Bhd, with the latter agreeing to pay Entomo RM338.6 million for MySejahtera’s intellectual property and software license.

This comes as MySJ Sdn Bhd shareholder P2 Asset Management Sdn Bhd sues Entomo, MySJ as well as another MySJ shareholder Revolusi Asia Sdn Bhd for alleged breach of share sale agreement. In the High Court statements filed in 24 November last year, it seems as though MySJ had partnered up with Entomo Malaysia on the 6th of October 2020. MySJ would pay Entomo RM338.6 million in aggregate fees for the transfer of the MySejahtera app intellectual property along with the license for the software. Curiously, both Entomo and MySJ have the same business address, located in Q Sentral, Kuala Lumpur.

As a quick reminder, this comes just a day after Health Minister Khairy Jamaluddin denied that the MySejahtera app had been sold to a private entity. According to Khairy, the government through the Ministry of Health owns the MySejahtera app, something they had decided back in November of last year. Khairy also denied that the government had made any payments to KPISoft Sdn Bhd between 27 March 2020 to 31 March 2021, stating that the MySejahtera app was built as a Corporate Social Responsibility initiative by KPISoft for a period of a year. Once that year ended, the government then decided to continue the use of the MySejahtera app due to its capabilities.

The license agreement saw MySJ paying Entomo RM38.6 million for the last quarter of 2020 as a transfer of IP fee and a service fee, with further sums to be paid to Entomo annually for a total of RM338.6 million. According to Code Blue, MySJ would be paying Entomo RM60 million each year from 2021 onwards, with the last payment happening on 1 March 2025. This payment covers the first 24 million users of the MySejahtera app only though, with users exceeding 1% from 24 million users to cost MySJ a further RM1.50 per user per annum. Yesterday, Khairy had stated that there are over 38 million registered users on MySejahtera. This means that MySJ could end up forking another RM21 million per year on top of the agreed sum between them and Entomo.

As for MySJ Sdn Bhd, the company was only formed in September of 2020 based on records from the Companies Commission of Malaysia. Those who sit on MySJ’s board of directors include big names such as ex-Sapura Energy Bhd CEO Shahril Shamsuddin, Sime Darby Plantation non-executive chairman Megat Najmuddin Megat Khas, EcoWorld Malaysia executive chairman Liew Kee Sin and its chief financial officer Heah Kok Boon. There’s so far been no response by MySJ on the matter as of time of writing, nor has Khairy Jamaluddin.

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