MY EG Services Bhd (MyEG) and Iris Corp Bhd were the most actively traded stocks at the beginning of this week's trading.
This was shown by the 119.97 million shares of MyEG changing hands as of 10am, where the stock was trading dismally at 61 sen after falling 1.5 sen earlier in the session.
Iris also fell 1.5 sen to 12 sen with a total of 88.49 million shares changing hands in early trading.
Looking at these two stocks, many people must already know that they are related. However, for those who still don't know, INTRADAY can explain.
Immigration Department general new system
Last week, the MyEG stock exchange rocked the local bourse with a string of announcements by the Immigration Department to end its services in immigration matters by introducing a new system.
The National Integrated Immigration System (NIISe) is said to be developed by Iris Corp Bhd under a RM1.12 billion contract, thus driving its shares higher.
NIISe Investigated MACC
However, the implementation of NIISe is not easy due to allegations of possible abuse of power in the awarding of government contracts to Iris Corp involving the prime minister Tan Sri Muhyiddin Yassin and his son-in-law.
Recent reports say that this case will be investigated by the Malaysian Anti-Corruption Commission (MACC).
However, the decline in Iris shares on Monday was reported to be unrelated to the allegations, but down due to the disposal of an 80% stake in its subsidiary Iris Information Technology Systems Sdn Bh (IITS) for RM70 million in cash.
A report issued last Friday saw that the new owner of the interest is Tass Tech Technologies Sdn Bhd.
MyJPJ application introduction
The suffering of MyEG may not stop as far as the announcement by the Immigration department, following the introduction of the MyJPJ application.
Last Friday, Transport Minister Anthony Loke announced that private vehicle owners will no longer need to use road tax stickers and physical license cards.
It is well known that MyEG also provides vehicle road tax and license renewal services.
Although the impact is not comprehensive, but with the implementation of digitization, it can impact MyEG's income from its e-government services.
What fate awaits MyEG if more government sectors no longer use its services?
