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| Talking Point | Interviews | Success Stories | China Today | Import & Export | Legally Speaking | Regional Development |
Malaysia Government E-Permit System kicks off
A total of 25 permit issuing government agencies (OGAs) begin exchanging approved permit application details electronically with the Royal Malaysian Customs and Excise Department's Sistem Maklumat Kastam (JKED-SMK) from July 2, 2001 as the central e-permit system undergoes a month-long 'live' testing period.

The OGA e-Permit System is being jointly implemented by Customs, Dagang Net Technologies Sdn Bhd (DNT) and CMNet Dotcom Sdn Bhd.

DNT, Malaysia's pioneer e-government and e-commerce service provider and formerly known as Electronic Data Interchange (M) Sdn Bhd (EDI Malaysia), will build and manage the network connectivity between JKED-SMK and the OGAs. Its business partner, CMNet, will focus on marketing and providing user-end facilities to importers and exporters.

Phase one of the project enables OGAs to transmit approved permit application details to and receive official acknowledgement from JKED-SMK using the front-end software, OGA SANCRT Interface Module for SMK (OASiS).

Phase two, implemented in August 2001, enables importers and exporters to submit permit applications electronically to the OGAs. The approved applications will be automatically routed to Customs for their acknowledgement and their response is electronically sent to the importers and exporters. The entire process is completed via a single connection through the Internet or the private DagangNet network.

Currently, five OGAs are already exchanging documents electronically with JKED-SMK. They are the Department of Veterinary Services (JPH), Malaysian Timber Industry Board (MTIB), Ministry of International Trade and Industry (MITI), National Forest and Wildlife Protection Department (PERHILITAN) and SIRIM.

According to Customs deputy director-general Dato' Abdul Rashid Bolong, the implementation of the OGA e-Permit System was a major step forward for the electronic government initiative.

"It effectively completes the trade cycle loop and drastically reduces the amount of paperwork and human intervention. Every party involved stand to gain substantial time and cost savings with the unprecedented levels of efficiency and productivity. On our part, we are now able to monitor the country's trade much more effectively to safeguard our country's economic, social and security interests. The task of tax collection can be done more efficiently and effectively to benefit the nation," he said.

Currently, the 25 OGAs manually process more than 300,000 permits annually, taking an average of three to 10 days to process a permit.

Each agency has its own unique system and requirements that necessitate tedious matching of declarations and approved permits at JKED-SMK and inaccurate data balancing between the OGAs, JKED-SMK and the Statistics Department.

"The OGA e-Permit System will reduce permit processing and approval time down to just a few hours within a day. Procedures will be standardised and a single e-document can be routed to all relevant parties without the need for duplication. Incomplete and inaccurate data would be things of the past," said DNT chief executive officer Hazree M Turee.

He stressed that the project was different from other e-government initiatives as it was based on a proven working model, the Port Klang Community System (PKCS), and uses the established SMK-DagangNet infrastructure that handles some 150,000 electronic transactions and some RM4 million in electronic payments daily.

As the proven leader in e-government implementation in the country, DNT has the expertise and experience, and the ready infrastructure to spearhead Malaysia's entry into the Knowledge economy.

It has built an impressive track record in implementing electronic trade communities such as the Port Klang Community System (PKCS), Kuala Lumpur International Airport Community System (KLIACS) and the Jusco Electronic Retail Community.

DNT also pioneered electronic trade documentation systems for Free Commercial Zones in Port Klang and the Kuala Lumpur International Airport in Sepang. Further information on the company can be obtained from its website, www.dagangnet.com.

 
Kuala Lumpur, June 2001

DagangNet (DNT) is the pioneer and specialist in managing port and Customs-related e-transactions in Malaysia. It owns and operates Malaysia's most established e-transactions exchange that handles some 47 million transactions and some RM4.8 billion in Customs duty payments annually. This article is courtesy of DagangNet. More information can be obtained at www.dagangnet.com.
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