The 14th Malaysian general election on 9 May 2018 is marked as a momentous day where the people regardless races, religions and language have united to vote for a new government. The opposition party, Pakatan Harapan coalitions that lead by Dr. Mahathir Mohamad has defeat against the ruling Barisan Nasional coalition and UMNO where government is the first time change hand in the country 61 years’ history. Following with the ruling of newly-formed government, the share price of MyEG Services Berhad crashed about 70% as they were perceived by investor to be linked with Barisan Nasional coalition.
MyEG Services Berhad is an e-government services provider of various government departments Dewan Bandaraya Kuala Lumpur (“DBKL”), Jabatan Pengangkutan Jalan (“JPJ”), Tenaga Nasional Berhad (“TNB”) and more. MyEG is facing a political risk as the new government may not employing MyEG in electronic government services concession or stop the monopoly for MyEG in by allow other competitors to operate the e-government services if the company fail to extend its contracts when expired. In addition, the Ministry Of Finance has announced starting from 1 June 2018 onwards the current Good and Service Tax (GST) rate will reduce from 6% to 0% and replace by Sales and Services Tax (SST).
This election manifesto caused MyEG stop its monitoring projects in phase 1 which included monitoring the food and beverage sector, the company has spent almost RM 150 million on its GST monitoring project. However, MyEG said that the GST monitoring system is originally designed for SST and they hope to revert it back to original system. There is also a risk that new government will not continue to use their system as government can let the competitors to run this monitoring system.All these above