1. E-Government In Malaysia
Presented By
NIK AZMIN NIK HUSSAIN
Deputy Director of EG Division
Malaysian Administrative Modernisation and
Management Planning Unit (MAMPU),
Prime Minister’s Department
Malaysia

2. CONTENTS Overview of EG In Malaysia
Electronic Government Pilot Projects
Key Challenges
Critical Success Factors
Private-Public Sectors Roles in Managing Expectations
Good Morning ladies and gentlemen,
I would like to share some of our experiences in the development and implementation of the Electronic Government initiative in Malaysia.
My presentation will cover these five areas:
Overview of EG In Malaysia
Electronic Government Pilot Projects
Key Challenges
Critical Success Factors ( this topic will be covered in detail in the plenary session 4)
Private-Public Sectors Roles in Managing Expectations

3. Overview of EG

4. administrative process and service delivery through
THE VISION OF EG
“To transform
administrative process and service delivery through
the use of IT
and
multimedia”
Vision For eGovernment
The vision of the eGovernment sees the civil service, businesses and citizens working together using multimedia technology for the benefit of all Malaysians.
The landscape of eGovernment applications comprise of citizen and business to Government, intra-agency and inter-agency applications.
These applications are undertaken within the context of stipulated standards, relevant regulations and security requirements.

5. THE OBJECTIVES OF EG CATALYSE MSC REINVENT GOVERNMENT
Improve Connectivity
Better Access
High Quality Services
Better Process / System
Attract World Class Companies
Opportunities for Invention
Forum for Collaboration
The objectives of the E-Government Flagship Application is two pronged, that is:
Firstly, Reinvent Government by redefining the relationship of Government to citizens, to businesses and to itself. It will be enabled by improved connectivity and communication between all parties. To citizens, there will be dramatic improvement in services and new services will be offered. There will be greater access to more convenient, more responsive and higher quality and potentially less expensive services. Within the Government, the new relationship means improved information flows and communication and improvement in the coordination of resources; and the other objective is,
Secondly, Catalyse the MSC through the implementation of a number of pilot projects resulting in smart-partnerships between local and international consortia working together with the Government in developing leading edge E-Government solutions.

6. THE SCOPE OF EG Government Citizens Business Ladies & Gentlemen,
Please allow me now to describe briefly about the eGovernment flagship application.
The eGovernment flagship is an initiative aimed at reinventing how the Government works. eGovernment targets dramatic improvements in the quality of interactions with citizens and businesses by enhancing the convenience, accessibility and efficiency of its services.
With the full rollout of the E-Government flagship, a total of 950,000 government employees will reap the benefits from the applications currently being developed. These benefits will be translated into tangible services and products provided by the Government to citizens and businesses.

7. Applications – 7 Pilot Projects
THE EG ENVIRONMENT
Operations & Support
Security
Change Management
Network
Applications – 7 Pilot Projects
While the EG applications form the core of the Electronic Government environment, there are 4 other components that completes the full picture. They are:
Network – which represents a large portion of the infrastructure requirement
Operations and Support – which basically deals with cross-EG Application services
Change Management – which deals with the softer or more human side of an IT implementation
Last, but not the least, Security – addressing a key concern in this cyber age.

8. EG Pilot Projects

9. Project Monitoring System II
EG PILOT PROJECTS
eServices
Project Monitoring System II
eProcurement
Electronic Labour Exchange
ELECTRONIC GOVERNMENT PILOT PROJECTS
Generic Office Environment
EG-AG Integration
Human Resource Management Information System
The 7 pilot applications are :
eServices –
ePerolehan - To automate, reengineer and transform the current procurement system. This system will deliver cost savings and faster turn-around time and enable government to become a "smart buyer". Suppliers, large and small, will also benefit from the transparency created in the new system and receive faster and more accurate payments.
Prime Minister’s Office – Generic Office Environment - To provide the foundation for a truly multimedia and paper less environment that can be utilised by users in a wide variety of ways to meet specific business needs.
Human Resource Management Information System (HRMIS) -To provide a single interface for Government employees to perform HRM function effectively in an integrated environment. It serves as a centralised repository for human resource data capture which enables better access of strategic and consolidated HR information between Government agencies and relevant parties.
Project Monitoring System -To provide a mechanism for monitoring the implementation of government projects. The service also provides a platform for exchanging ideas and demonstrating best practices models in information management and communication services.
Electonic Labour Exchange (ELX) - To improve the job matching at the national level through electronic means; thus, enhancing the human resources employment and mobilisation. This project also enhances the dissemination of labour market information.
EG-AG – To enable the above 6 EG pilot projects to be integrated with the systems of the Accountant General Department.
These pilot projects were selected based on their level of impact and feasibility from a universe of some 100 applications that have been identified.

10. E-Services GOE Enables citizens & businesses to conduct transactions
through a one-stop service window
The eServices project is designed to enhance public access to Government services and to further improve the quality of services in terms of speed, reliability, transparency and security.
Among the services planned and are currently being developed in this pilot project are the issuance and renewal of driving licence/road tax, vehicle registration, payment of Road Transport Department summonses, electricity and telephone bills, and on-line access to information from the Ministry of Health. Discussions are underway to extend the scope of services to include payment of traffic fines, customs declarations and others.
These services will be delivered through multiple channels such as electronic kiosks, via the Internet through personal computers and interactive television, telephones, facsimile, and others.
Phase I of the eServices Project, which is expected to be rolled-out in July 2001 will allow Citizens to transact with the Government via multiple delivery channels that will be accessible 24 hours a day, 7 days a week.
PMS
HRMIS

11. E-Procurement GOE A system that allows the Government to conduct
procurement activities electronically
Next, the Electronic Procurement project.
This project enables the Government to purchase goods and services as well as make payments electronically. This project changes the approach of Government procurement from a manual paper-based system to an electronic, on-line system. The project scope covers on-line suppliers’ registration and on-line Government procurement through Central Contract, Direct Purchase, Quotation and Tender.
Government ministries will be able to electronically select items to be procured from the desktop, initiate an electronic approval process from the appropriate authorities, create and submit purchase orders, receive delivery orders, invoices and other related documents electronically.
On-line availability of products and suppliers information will enable quick and efficient evaluation of products and suppliers’ performance by the Government. This will result in faster turn-around time in the processing of procurement transactions and enables the Government to become a “Smart Buyer”, and ensure best value for money.
Suppliers, on the other hand are able to submit their application on-line via the Internet any day, any time.
The eProcurement application was implemented at selected pilot agencies on 6 October 2000.
PMS
HRMIS

12. Generic Office Environment
GOE
An electronic office environment to enhance productivity through better information management, communications and collaboration
The objective of this pilot is to develop the various components required to create a Generic Office Environment based on IT and multimedia. Pilot agencies will be equipped with state-of-the-art equipment and tools whereby government personnel will have on-line access to accurate, timely, current and reliable information.
The new environment will facilitate interaction and communication among government personnel. The GOE system provides a universal interface for users to manage, find, retrieve and compose information that is needed in their day-to-day operations. The information may be embodied in many forms, namely paper, electronic document, fax, , letters, bulletins, circulars, voice mail and others.
In short, it will create an electronic office environment to enhance productivity through better information management, communication and collaboration.
PMS
HRMIS

13. Human Resource Information System
GOE
Provides a single interface for Government employees to perform human resource functions
This system provides an efficient, effective and integrated Human Resource Management Information System for the Civil Service. The HRMIS is aimed at providing a single interface for Government employees to perform HRM functions effectively and efficiently in an integrated environment.
The scope of the HRMIS includes among others, recruitment, selection, creation of posts, design of organisational structures, performance appraisal and training.
This system is intended to support human resource processes such as organisational development, formulation of schemes of service and salary policies, manpower planning, skill management, rightsizing policies, staffing policies, and training programmes.
Benefits
Benefits that are expected from the implementation of the HRMIS are:
Human resource activities would be conducted efficiently with the availability of human resource information that is real time and on-line;
Standardized human resource policies and processes and availability of an integrated human resource database would facilitate the utilization of the HRMIS systems by all agencies;
Improved productivity via faster processing time, better working environment, and reduction of repetitive work and automation of work processes;
 Integrated human resource information database that would facilitate the sharing of information which is accurate and timely. It would also improve communications amongst agencies; and 
The reduction of unproductive work, which enables more time available for analysis, planning, making recommendations and decision making.
PMS
HRMIS

14. Project Monitoring System II
GOE
An on-line end-to-end project monitoring system creating a collaborative environment for better management of development projects
The PMS project provides an online, end-to-end mechanism to monitor the implementation of development projects such as building of schools, bridges, roads, etc. The PMS is able to track the progress of these projects as well as monitor the flow of financial allocation effectively.
Developed by a consortium of 4 local and international companies, the PMS has been rolled out on a pilot basis in August By May 2001, it has been implemented in all federal agencies at the federal, state and district levels.
PMS
HRMIS

15. Electronic Labour Exchange
GOE
Provides a one-stop centre for labour market information and systematic matching of job seekers to job vacancies
The ELX or Electronic Labour Exchange project aims to improve labour mobility and workforce utilisation by matching job seekers with job vacancies electronically. The project will create an efficient one-stop centre for labour market information for govt agencies, the private sector and the public. Lead agency-MOHR.
The benefits are:
Through the system, a systematic matching of job seekers to job vacancies will be effected, based on the registration of vacancies by the prospective employers and the registration of the job seekers.
The system also provides for accurate, real time labour market data for better planning of the labour requirement.
Prospective employment information and requirement profile will also be available, to provide enhanced job counselling services.
PMS
HRMIS

16. Key Challenges Ladies and Gentlemen,
Four years have passed since the inception of eGovernment and during these four years, we have experienced numerous issues and challenges. I will attempt to highlight a few of the key ones.

17. Information Privacy & Security
Reengineering and Streamlining of Current Processes and Procedures
Managing Diverse Technologies & Obsolescence
Information privacy & security – electronic systems must protect the confidentiality of information and assure that information is not altered without authorisation and be available when it is needed. Citizens and businesses should be able to understand how this is achieved, should have access to their own data and should be confident that personal and other sensitive information is protected and is kept and used accordingly. There is a need to authenticate the creator of electronic messages or transactions. This is facilitated by the passing of Digital Signature Act and the drafting of Data Protection Bill. There is also a need for a clear policy and guideline on IT security which is being drafted by MAMPU.
Streamlining and integration of processes – The reengineering of the Govt may necessitate changes to the existing laws, acts, procedures and policies. In streamlining and integrating processes, the challenge is to ensure that existing laws, procedures and policies are flexible enough to be modified in a timely manner.
Managing diverse technologies and obsolescence – the IT industry is very dynamic and is changing at a very rapid pace. The challenge is in selecting technologies that are leading edge and yet are mature, stable and have reasonable safeguards against obsolescence. In this respect, Govt must constantly monitor and evaluate new emerging technologies and their capabilities to ensure the successful implementation of EG

18. Human Resource Requirements Managing Change Funding
Integration & Interoperability of EG with Other Flagship Applications & Legacy Systems
Human Resource Requirements
Managing Change
Funding
Integration and interoperability of EG, other flagship applications and legacy systems – there should be integration between the flagship applications and within the EG projects. One such issue is the integration between the GMPC application (a flagship application) and E-Services (EG application). With the issuance of the GMPC whereby one of the applications inside GMPC is the driver’s license, E-Services multiple delivery channels must be able to assess and update the driving license in the GMPC as well as enabling citizens to renew the present driving license in use. The legacy systems that were built in the pre-EG era also need to be integrated into the new system.
Human Resource Requirement
Another challenge arising out of eGovernment implementation is the need for adequate human resources equipped with the necessary knowledge, skills and attitude. Currently, IT personnel in the civil service constitutes an estimated 5,000 or 0.75% of the 670,000 civil servants. Of these 5,000, only 840 or so are systems analysts. As such, the introduction of eGovernment imposes strains on the already tight manpower situation.
Managing Change
As the Government seeks to re-invent itself through eGovernment, Government personnel at all levels affected by the changes have also to adjust to this new paradigm. Issues that have to be grappled with, include the changed relationships between themselves and their clients in the need for greater transparency and accountability.
Funding
The implementation of IT projects requires huge outlays of capital investment. In addressing the issue of funding, creative approaches need to be explored especially those that are value-driven. In this instance, we are testing other modes of funding besides Outright Purchase (for GOE, PMS, HRMIS, ELX) such as:
Build Operate Own (BOO) with the eServices project and
Build Operate Transfer (BOT) with the eProcurement project

19. Critical Success Factors
I shall very briefly present the the key success factors in our EG experinece in Malaysia. As highlighted earlier this will be presented in detail in plenary session 4 – Implementation Principles of eGovernment later.

20. Administrative mechanism
Legal framework
Common infrastructure
Leadership and shared vision
Active Communication and Collaboration
Very broadly in Malaysia we ensure that the key ingredients for eGovernment implementation are in place. They are depicted in this slide:
Creating the necessary administrative mechanism such as the various councils at the highest level in Government to champion EG.
Putting in place the necessary statutory and legal framework to regulate EG.
Developing the common infrastructure such as a common network and a IT centre.
Obtaining support at the highest level in Government such as the participation of PM and Chief Secretary of the Government.
Establishing the necessary internal and external channels of communication.

21. Roles in Managing Private / Public Expectations
From my presentation, many of you would have realised that the vision of eGovernment would fail tremendously if not for the joint participation and partnership from the private sector.
Given this, I now like to share some key lessons learned especially in the context of roles for both Government and the Private Sector in managing the eGovernment expectations

22. Balancing e-Govt’s objectives vis-a-vis Business/Citizens expectations
Shifting paradigms for Government & Private Sector Businesses
Reaping the outcomes of eCommerce via eGovernment
From the Malaysian experience, these would include:
Balancing e-Govt’s objectives vis-a-vis Business/Citizens expectations.
Shifting paradigms for Government & Businesses; and
Reaping the outcomes of eCommerce via eGovernment.
Balancing e-Govt’s objectives vis-a-vis Business/Citizens expectations
Similar to all Governments around the world, we have the constant challenge of balancing expectations for both the Citizen and the Government alike.
The weighing scale shows that Governments are obligated to fulfil the services needed by both the private and public sector. For example, we recognise that a one-stop-connectivity is ideal to citizens, like the Single C2G/B2G portal. On the other hand we also recognise the need for a Government having streamlined processes, and being inter-networked and paperless that will remove large chucks of administrative efforts, thus freeing civil servants to attend to citizen needs.
As such, in meeting the needs of citizens and the private sector, we have eGovernment projects such as eServices, eProcurement and ELX.
Shifting paradigms for Government & Businesses
With the Government shifting its paradigm from “what they intend to deliver” to “what the citizens need”, it is all the more important for private sector technology solution providers when engaged in eGovernment projects to shift their paradigm from “purely developing systems” to the “actual integrated solution delivery of business capability”.
Reaping the outcomes of eCommerce via eGovernment
To reap the full potential of eCommerce for the Private Sector, both the Government and the Private Sector will need to collaborate to address the large issues of eGovernment such as fostering ebusiness entrepreneurship of Small and Medium Enterprises, bridging the Digital Divide and assisting with the Legal Framework

23. SUMMARY / CONCLUSION
In conclusion, I would like to attribute the success of the Malaysian eGovernment initiative to the full commitment of its leaders. This is manifested in the role that the Hon. Prime Minister plays in spearheading national IT initiatives including that of the Multimedia Super Corridor.
Malaysia is crossing the threshold into the Information Age with hope and confidence. The development of the MSC is an ambitious plan to leapfrog into the Information Age by providing intellectual and strategic leadership. This means investing in an environment that encourages innovation, helping companies, both Malaysian and international, to reach new technology frontiers, partnering with global IT players and providing opportunities for mutual enrichment and success.

24. THANK YOU