PKR elected representatives are urging the Home Ministry to explain why the company MyEG Services Berhad has been given monopoly to handle applications to extend foreign worker’s work permits.
 
This follows reports that the Department of Immigration has closed its counters to Visit Pass (Temporary Employment) (PLKS) extension applications, with notices telling employers to apply online via MyEG instead.
 
“This means MyEG has a monopoly contract from the Immigration Department and the Ministry of Home Affairs to handle foreign worker’s PLKS extension applications,” said Sungai Petani MP Johari Abdul at a press conference today.
 
He demanded Home Minister Ahmad Zahid Hamidi (left) to explain why the Immigration Department’s free counter services are not continued as an option, and why is MyEG imposing a RM38 charge per application.
 
He also wanted to know when was MyEG given the contract, and whether it was given through an open tender.
 
According to theSun on Monday, employers were caught unaware by the move starting that day, and balked at the application fees for what was previously a free service.
 
However, some lauded the new system for not having to queue for hours to reach the counters.
 
The report also quoted immigration director-general Mustafa Ibrahim saying that the new system is meant to reduce congestion at immigration counters that deal with foreign workers, and to prevent employers from using middlepersons.

Database being compiled
 
A CIMB analyst’s report today quoted a MyEG presentation to fund managers yesterday saying that MyEG is working with the Immigration Department to compile a database of legal and illegal foreign workers in the country.
 
“This will allow MyEG to update and maintain the database as foreign workers permit renewal (FWPR) services enables the company to keep tabs on whether existing legal foreign workers renew their work permits or have already left the country.
 
“In addition, the company will be able to monitor which employer uses legal or illegal foreign workers. A penalty will be imposed on employers that hire illegal foreign workers,” said the report prepared by CIMB analyst Nigel Foo.
 
According to Johari, the new system would mean MyEG would be reaping RM87.4 million in annual profit, given that Malaysia has 2.3 million documented migrant workers.
 
“We consider this excuse (by Mustafa) unacceptable, because surely these management issues can be overcome with new methods and technologies.
 
“This explanation seems to belittle the government’s functions and the capabilities of the civil service,” he said.
 
He added that the new system is burdensome to employers, who also have to pay thousands for the levies, visas, and guarantee bonds for their foreign workers each year.
 
Speaking at the same press conference, Semambu assemblyperson Lee Chean Chung said the worst hit by this policy change would be factories that employ thousands of foreign workers, which may deter foreign investment.
 
Apart from questions posed by Johari, he demanded that the Ministry of Home Affairs also disclose the value of MyEG’s contract.

MyEG's shares hit all-time high

Meanwhile MyEG Services Bhd’s share price gained 43 sen or 10.1 percent to RM4.70 today, hitting an all-time high following the company’s resale of treasury shares.

According to Bursa Malaysia filings, MyEG sold a total of 8.19 million shares amounting to a 1.4 percent stake between RM4.30 and RM4.26 per share, or a total of RM34.57 million between Dec 30, 2014 and January 6 this year.

Earlier today, CIMB Research highlighted in a report that MyEG had recently been appointed by the government to work with the Immigration Department to compile and maintain the database on the country’s legal and illegal foreign workers.

As of 4.45pm today, MyEG’s share price had brought a one-year return of 65.76 percent according to Bloomberg data.