MyEG to expand to the Philippines in first overseas venture

MyEg online office that opens at Immigration Department of Malaysia in Putrajaya. MOHD SAHAR MSNI/The Star

KUALA LUMPUR: My EG Services Bhd (MyEG) is making its first overseas foray, forming a partnership to develop and implement electronic government (e-government) service projects in the Philippines.

The e-government services provider told Bursa Malaysia that it had on Wednesday entered into a joint-venture (JV) agreement with I-Pay Commerce Ventures, Inc (IPCVI), a payment processing provider and a direct agent of Western Union in the Philippines.

The aim is to establish a JV corporation to undertake e-government and e-government-related services there, including electronic payment services in accordance with the terms and conditions of the agreement.

The JV company, which will have its office and principal place of business in Pasig City, Metro Manila, will only be incorporated after the agreement is formalised.

MyEG will have a 40% stake in the JV and will invest up to US$2mil (RM8.9mil) in three tranches subjrect to certsain milestones being achieved by the JV company. IPCVI will contribute US$400,000 (RM1.8mil).

IPCVI is backed by investors such as IP Ventures Inc (a leading technoloby and retail conglomerate in the Philippines), Kaikaku Fund (a Softbank-affiliated fund), JJ Atencio (founder and CEO of 8990 Holdings Inc) and Derrick Chiongbian.

“The JV corporation will enable MyEG to expabd its geographical presence in the Asean region and open new frontier where MyEG will be able to offer its expertise to operate government services and government-related services through the Interney,” MyEG said.

“Furthermore, MyEG will be able to continue to grow its business organically and continue with its expansion plans to offer its services to a new market.”