MyEG boss states case for new govt to continue using company’s services

PETALING JAYA: Government service provider MyEG Services Bhd managing director and single largest shareholder Wong Thean Soon does not see any reason for the new Pakatan Harapan government not to continue using MyEG as the service provider for e-government services.

Presently, MyEG’s various projects are grouped under the e-government concession which was awarded in the year 2000.

“MyEG, as a service provider to the government, has to work for the government of the day.

“We believe that we are a professional organisation that will continue to provide a high level of service to the government, moving forward,” said Wong.

Having said that, Wong added that MyEG is at the service of the government, and hence whenever the government wishes to discuss its new policies or requirements, MyEG will always be ready.

On the lesson to be learnt from this whole experience, Wong said that the rakyat and consumers are king, whether in politics or business.

On what MyEG can offer the new government, Wong said simply: “We offer a highly efficient service at a very competitive rate.

“I see opportunities in everything, whether during good or bad times. I am an optimist, I guess,” he said.

He added that there were no plans for management to change its shareholding significantly.

MyEG, which had a market capitalisation of some RM9bil prior to the 14th general election (GE14), has lost close to RM6bil in market cap over the last four days, because it is seen to be related to the previous ruling coalition.

On Wednesday, Bursa Malaysia had set MyEG’s lower limit price at RM1.27, following two consecutive days of the stock hitting limit down. MyEG again almost hit limit down on Thursday, with its share price shedding 36.5 sen or a 28.74% drop to 90.5 sen on a volume of 481.45 million shares.

The stock is now trading at a price earnings ratio of 14.5 times from its previous 45 times before GE14.

Wong owns some 30.26% of MyEG via his vehicle Asia Internet Holdings Sdn Bhd, and 7.76% under his name.

Based on Thursday’s closing price of 91 sen, Wong is still a billionaire and worth roughly RM1.24bil.

Meanwhile, the Pakatan Harapan government has delivered one of its key election promises by effectively abolishing the goods and services tax (GST). In a statement issued on Wednesday, the Finance Ministry said goods and services subject to the GST would be zero-rated from June 1. Wong said that the company has spent close to RM150mil on its GST programme, where it has acquired close to 20,000 dongles, and there are grounds to seek compensation should the programme be cancelled.

“We understand from the media that the GST would now be replaced with the sales and services tax (SST). Our system was originally designed for the SST, so we hope that we can revert to our original system.”

While there are grounds for compensation, Wong said that the company never likes to seek any form of compensation from its clients, in this case the Government, and in the past, has never done so.

“We prefer to discuss to achieve a win-win situation,” he said.

Presently, MyEG’s various projects are grouped under the e-government concession as one of the MSC flagship applications. This concession was awarded in the year 2000 after an open tender.

In order to continue operating under this new environment, Wong said that it is important to understand what the government’s new or additional requirements are, and ensuring that these requirements are met.

While many still see MyEG as a government concession, currently, only 20% of its revenue is derived from the government.

Some 80% of MyEG’s revenue is derived from non-government-related products and services. MyEG has also started its Philippines operations, which it is very excited about.

“The Philippines since it is a huge market, given its population, is practically a landgrab.

“Our initial projects have been well received and we are now scaling up,” he said.