Friday 29 Mar 2024
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KUALA LUMPUR (Nov 26): MyEG Services Bhd, whose earnings prospects are investors’ concern after the change of government in Malaysia, is now casting its eye on e-government projects in Indonesia.

MyEG announced that it is buying a 40% stake in an Indonesian-based e-government service provider PT Cartenz Technology Indonesia for US$10 million.

It seems that concern regarding its chances of getting local e-government project has become a strong drive for it to venture out of its home turf. This is the third joint venture overseas for the group, having been active in the Philippines since last year and it has set foot in Bangladesh.

In a statement today, MyEG said its wholly-owned unit MYEG (Indonesia) Sdn Bhd signed a Memorandum of Understanding today with Cartenz, marking the group’s entry into the Indonesian e-government space.

It said the strategic partnership is subject to the fulfilment of relevant terms and conditions, and both companies will jointly implement real-time monitoring of business transactions for tax computation purposes across Indonesia.

Headquartered in Jakarta, Cartenz is an information and communications technology company that is principally involved in the provision of information systems to all levels of government agencies for more efficient management, including in the administration of regional taxes.

To date, Cartenz has deployed its tax monitoring system to some 5,000 business outlets and has provided its tax revenue system to 76 local governments, including Jakarta and Bali.

Given Indonesia’s vast economic potential, the group aims to deploy the system to one million outlets within three years, said MyEG Managing Director TS Wong.

MyEG’s share price has tumbled 55% year to date. It closed down one sen or 0.89% at RM1.11 today, for a market capitalisation of RM3.92 billion. Some 54.79 million shares were traded today.

Last month on Oct 19, MyEG hogged the limelight for the wrong reason again. The company was mentioned in the charges brought against former Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi. Zahid had allegedly helped a company called Mastoro Kenny IT Consultant & Services obtain projects from MyEG in return for payment.

However, MyEG has since denied making any payment to anyone to secure concessions from the government. It had also stressed that it has no knowledge of Mastoro Kenny IT Consultant & Services nor has it ever been in contact with any representatives from the company.

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