MARC had announced on May 9, 2007 that it had received written confirmation from Bank Negara Malaysia that the Central Bank had terminated its 10 year contract for the purchase of raw materials with PRI. In relation to the earlier announcement, MARC wishes to highlight that in the Central Bank’s letter, the termination date was given as effective from May 9, 2007, with no reference made as to the duration of the abovementioned contract.

From MARC’s review of the contract, the rating agency understands that the said contract does not specify a determinate time period for the supply of raw materials. However, PRI had entered into a 10-year agreement with The Royal Mint of Malaysia Sdn Bhd, the sole minter official minter circulation coins in Malaysia, on March 9, 2005 for the supply of metal coil strips. Notwithstanding, termination of the contract is provided under certain events which notably includes a breach by PRI.
PRI remains on MARCWatch Negative where it has been placed since May 9, 2007.