Malaysia-based ARB Bhd has terminated a memorandum of understanding (MoU) aimed at facilitating the group’s foray into Cambodia to implement the enterprise resource planning (ERP) system and solutions, the Edge Markets’ website said.

In a bourse filing, ARB said its wholly-owned subsidiary ARB Development Sdn Bhd and East Insurance PLC had mutually agreed to terminate the MoU with immediate effect on grounds of East Insurance’s internal restructuring exercise.

“After the signing of the MoU, East Insurance undertook an internal restructuring exercise. Hence, the group has decided to terminate the MoU, until East Insurance completes its restructuring exercise.

“Notwithstanding the termination, the group continues to explore business potential and look out for other business opportunities in Cambodia,” ARB said.

The MoU, announced by ARB on June 17, was for a project valued at no less than $20 million.

ARB Development and East Insurance were to have collaborated in the development and implementation of an ERP system in East Insurance’s Cambodian branch’s insurance operation platform.

Incorporated in 2017, East Insurance is principally involved in the provision of general and life insurance coverage in Canada.

Shares of ARB closed 4.48 per cent or 1.5 sen lower at 32 sen today, giving the group a market capitalisation of 90.56 million ringgit ($21.75 million).

The insurance industry is expected to see its gross premiums increase to about $260 million at the end of this year from $196.4 million last year due to rapid growth in the sector, the Ministry of Economy and Finance said.

There are 13 general insurance companies in Cambodia, 11 life insurance ones and seven involved in microinsurance.

Last year, the Kingdom’s insurance industry generated more than $190 million in gross premiums – an increase that was driven by life insurance of nearly 30 per cent over the previous year – the Insurance Association of Cambodia said.