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E-government service providers could be seeing more jobs in the pipeline as the government intends to pursue digitalisation agenda “aggressively” for higher digital adoption in the public service.

“In this regard, digital governance in the public sector will be enhanced at the national and ministry levels to support the national digitalisation agenda,” said the Mid-Term Review of the 11th Malaysia Plan 2016-2020 report released yesterday.

In addition, the Government Online Services Gateway will be expanded to offer access to a wider range of online government services through a single portal. At the same time, various digital tools will be utilised in undertaking the government’s digitalisation agenda.

Investment analysts said the announcement could mean that the government would deploy technologies more than before to provide e-government services on top of what it already has.

Such initiative is likely to create technology-related jobs in the labour market given higher demand for skilled labour specialised in information technology, including big data analytical, grows. Besides, e-government service providers are likely to benefit amid anticipation of more outsource contracts in the future.

In short, the government’s digitalisation agenda would be a strong growth catalyst to drive the domestic technology industry, especially if there is local content requirement in the public project.

Among the public-listed companies that are involved in provision of e-government service are MyEG Service Bhd, Datasonic Group Bhd, Prestariang Bhd, Dagang Nexchange Bhd (DNex), Kumpulan Fima Bhd, and Iris Corp Bhd.

Meanwhile, the Mid-Term Review states that the government wants to intensify and expand e-payment platforms with an emphasis on government transactions “for good governance and reducing corruption”.

“A cashless payment transaction system would ensure transparency as well as enable tracing and tracking,” said the report.

Nonetheless, some analysts reckon the possibility of more e-government service contracts on the cards it may not necessarily mean that the existing providers would get the jobs simply because the new government has stressed on awarding public contracts through open tender process.

Furthermore, the super fat profit margin could possibly be narrowed by the anticipated competitive tendering process. Companies will have to compete on technologies and costs, said analysts.

Some quarters believe that there might be multi-providers for the same type of e-government service or IT solution, unlike the current scenario, in which certain services are provided by a single-party.

In fact, the government announced in the report that uCustoms is set for full implementation in early 2019.

With that, there will be two players providing end-to-end solutions for cargo clearance, beside the current provider DNex.

The uCustoms single-window gateway initiative, the Mid-Term Review said, will improve efficiency and productivity and boost the competitiveness of the domestic logistics industry players.

The initiative has been brought about previously, but the slow progress of the system’s development has hampered improvement of cargo clearance work processes, added the report.


Autor(en)/Author(s): Kathy Fong

Quelle/Source: The Edge Markets , 19.10.2018

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