MyEG falls 5.5% after MEF urges the govt to review online system


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KUALA LUMPUR (Mar 25): MyEG Services Bhd has fallen as much as 5.5% or 16 sen today after the The Malaysian Insider reported that its online system to renew foreign workers’ permits received complaints from more than 100 employers.

At 3.47pm, the counter regained some losses and eased to RM2.81, down 11 sen or 3.8%, with 11.2 million shares changing hands. It was one of the top losers on Bursa Malaysia.

In a recent interview with The Malaysian Insider, Malaysian Employers Federation (MEF) executive director Datuk Shamsuddin Bardan had urged the government to review MyEG's (fundamental: 3.0; valuation: 1.5) online system again as disruptions on the implementation of the online system had caused employers a lot of problems.

According to the report, MEF had received complaints from over 100 employers about the MyEG online system to renew foreign workers' permits since its implementation on Jan 5.

Shamsuddin had also said that employers wanted the RM38 fee per foreign worker dropped as the service was inefficient and took weeks to process applications even after MyEG had promised that it would take only three days.

Another complaint was that the online system "hung" or was disrupted after payment had been made, according to Shamsuddin.

Other complaints include the lack of response from MyEG and its inefficiency in renewing permits.

He had pointed out that the appointment of MyEG to renew the permits was supposed to make things easier but did not.

Hence, he said it would only be right for the ministry to review and, if necessary, appoint a different service provider.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)