KUALA LUMPUR, Feb 2 — Putrajaya should review all outsourced public services to ensure they are in accordance with strict guidelines on competition, a civil society group said today following recent allegations of abuse against e-government services provider MyEG.
Centre for a Better Tomorrow (Cenbet) labelled the MyEG row “embarrassing”, noting that the Malaysia Competition Commission’s (MyCC) ongoing probe into the firm’s alleged monopolistic practices is as good as “a government agency investigating another agency”.
“This could have been avoided had the Home Ministry or the Immigration Department cleared the matter with the MyCC earlier on,” Cenbet said in a statement here.
“It was most embarrassing that MyCC has now started a probe.”
MyCC said last week that it has started investigations into claims of monopoly against MyEG over the renewal of foreign worker permits.
PKR lawmakers have demanded that the federal government explain the decision to outsource the permit issuance to MyEG, claiming that the firm could profit as much as RM100 million annually from collecting the fees.
The introduction of the new system had caused confusion at Immigration Department branches nationwide after employers and their agents were directed to use MyEG’s new online system in place of the discontinued permit counters.
Cenbet said after the public outcry against MyEG, Putrajaya should ensure that all future outsourcing plans strictly adhere to MyCC’s guidelines on competition.
This, the group said, is to ensure that consumers are not subjected to unfair practices that result in over-profiting by private companies.
“The government should further from time to time, review all outsourced services which have created monopolistic or oligopolistic practices to ensure consumers’ interest are not compromised over time,” Cenbet said.
It added that government services should only be outsourced to increase efficiency and save cost.
Citing MyEG as example, the group pointed out that the additional RM38 levy demanded by the firm for the renewal of worker permits has not gone down well with employers due to the added cost for their businesses.
“It has further disrupted the existing livelihood of large numbers of individual intermediary such as general insurance service providers, without any prior consultation,” Cenbet said.
The group added that future outsourcing bids must promote competition in accordance with the Competition Act 2010.
The purpose of healthy competition, Cenbet pointed out, is to give consumers choices, drive innovation and keep prices low.
“Whether it is renewal of foreign workers’ permit, inspection of vehicles, sewerage treatment or provision of water and electricity supply, more (competition) usually equals better service,” the group said.
