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Tuesday 2 June 2015

From Manual to Online System

(Source: Google Images)

  1. Said to increase integrity and efficiency, the Immigration Department contracted online foreign worker permit renewal to MyEG. However, there are numerous complaints on the system especially the additional fee imposed and longer time taken to process worker permit. Some of the grouses raised are:

MyEG gets permit job – and flak

SMEs against use of online service to renew foreign worker permits (22 January 2015)

  1. The Government said that there might be another service provider for foreign worker permit renewal in the future.

MyEG may see competition in online renewal of foreign workers' permits (8 April 2015)

To reduce complaints, the Government has decided to absorb the additional fee but this move will see that Government collection will be reduced.

Cost of online renewal of foreign workers’ permits will be borne by Govt (24 April 2015)

However, it was unclear whether that future service provider fee will also be borne by the Government.

  1. The Government departments have come a long way from manual (counter service) to computerized (still over the counter) to online systems. To implement those systems, the buying in from the stakeholders involved is the most crucial. Take JPJ as example which has numerous online systems. Those vehicle manufacturer, insurance companies, banks and financial institutions, and many more can see the benefits of those systems to them and their customers. 


  2. Those systems do not necessarily involve public money as most cost will be borne by the companies themselves. As benefits outweigh costs, the companies agreed to implement those systems. For example:

  1. NIK and eDaftar
Vehicle manufacturers built their own system and dedicated line to JPJ. Small volume vehicle manufacturers who could not afford to build their own system must use their own chosen gateway provider.

  1. eInsurans
The system was built by a three gateway providers who got the buying in from insurance companies. The transaction fee imposed by gateway providers to insurance companies is only 50 sen per transaction. 

  1. eHakmilik
The system initially was built by financial institution association’s IT company. Its members agreed to use the system and transaction fee imposed is RM3 for motorcycle and RM5 for other vehicles. Later, non-member financial institutions also agreed to use the system.

  1. The JPJ motivation to implement online systems is to obtain data from the original source. This is to:

  • Eliminate human intervention and mistakes (JPJ does not have to key in data anymore)
  • Control data manipulation and discretionary power (JPJ cannot amend data)
  • Original sources must be responsible on all data sent to JPJ
  • Guaranteed data integrity

  1. Therefore, it was not wrong for Immigration Department to introduce online system to curb corruption and increase efficiency. Apart from service fee issue which somewhat settled (with reduced Government collection of course), contracting it without consulting stakeholders (in this case the employers or at least employers’ association) proved that it becomes less efficient (permit cannot be obtained immediately anymore) compared to previous system. It also makes Immigration Department officers feel irritated as if to accuse them of corrupt all this while, but how the management can be sure that MyEG staffs are all holy?



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