MY E.G worries over new players

ELECTRONIC government services provider MY E.G Services Bhd is concerned about the possibility of three new players eating into its share and has submitted a proposal to the Government. It did not elaborate on the proposal.

“We have made our submission in respect of this and we are convinced that the Government will be fair to us especially taking into consideration the process and procedures before the appointment of MY E.G as a service provider.

“We hope the Government will take all these into consideration and give a fair judgment and not make a decision that is grossly unfair to anyone,” executive chairman Datuk Dr Norraesah Mohamad told reporters after the company EGM yesterday.

MY E.G’s services include electronic licensing and registration of drivers and vehicles, summons payment services and utility bill payments. It is also engaged in the provision of software solutions and maintenance and E-insurance solutions.

Norraesah was confident that MY E.G would remain competitive and was “cautiously gungho” about the company’s outlook.

It was recently announced that three other companies had been given the green light by the Government to provide electronic transaction services to the Road Transport Department. It is not known which companies these are but reports said two of them are listed on Bursa Malaysia.

On whether this would impact My E.G’s business, Norraesah said: “We do not know if there will be new players. We are just wrestling with smoke on that possibility.” MY E.G’s Government Enterprise Solution and Government to Citizen services contributed about 85% to its revenue of RM49.3mil for the year ended June 30.

Norraesah said she expected its online road tax renewal, driving licence service and other new services to contribute 40%-50% to group revenue next year driven by greater awareness of its products and increased promotions.

At present, online road tax renewal contributes 10% to group revenue.

The company has plans for more acquisitions and had received numerous queries from the Gulf states like Kuwait, Dubai and Iran. “We have received a lot of interest from overseas but we have to tread very carefully on this,” Norraesah said, adding that the company was in talks “but these are only in the preliminary stages.”

Shareholders at the EGM approved the proposed increase in authorised share capital and bonus issue, putting the company on track to transfer its listing status to the Bursa Malaysia main board by mid-January.

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