PETALING JAYA: Former Umno information chief Shahril Hamdan has questioned whether the controversy surrounding MyEG Sdn Bhd and Zetrix AI Bhd should give the government a reason to reconsider its approach to privatising its services.
In the latest episode of Keluar Sekejap, Shahril said the current hybrid model, in which private companies such as Zetrix are awarded concessions to implement government services, perhaps warranted a review.
“Cynics would say that we had an era of privatisation under Dr Mahathir Mohamad (as prime minister), during which public assets were privatised, making a generation of billionaires overnight.
“But now there are not many assets left to be privatised. What is left is a hybrid model under which private companies can get concessions and still profit through the government,” he said.
MyEG and Zetrix are currently being investigated by police and the Malaysian Anti-Corruption Commission after the two companies were suspended by the road transport department (JPJ) as its collection agents for fees and summonses, following revelations that they owed the department hundreds of millions in arrears since May.
Transport minister Loke Siew Fook said Zetrix owed JPJ RM314 million and that it had been issued 35 notices for payment.
Shahril said while private companies were capable of delivering government services well, the controversy around MyEG and Zetrix had “triggered” him to think about which areas the government should be “less willing” to privatise.
However, co-host and Muda deputy president Zaidel Baharuddin spoke in defence of Zetrix and MyEG, saying that despite the alleged shortcomings, the delivery of government services by private companies had brought innovation.
He praised the two companies for simplifying access to JPJ's services.
“The processes for paying road tax and purchasing insurance have been greatly simplified. I do not think innovation would have happened without privatisation,” he said.
Zaidel said he supported the open market’s involvement, arguing that competition among private companies delivering government services led to greater efficiency and quicker responses to user complaints.
“It is faster than it would be if the services were monopolised by the government. Imagine if the internet was only provided by Telekom Malaysia Bhd. We would not see what we have today,” he said.