E-Commerce

Current application of E-Government in Malaysia:

1) E-filing
E-Filing is an application on filling and filing income tax returns electronically via the internet, which is an alternative to the usual manual from submission. It was first introduced in 2003 by Lembaga Hasil Dalam Negeri (LHDN). This e-Filing application can be used by all taxpayers who have access to the internet.

It is easy for taxpayers submit their return form via internet at any time and any place. The data and tax computation also are verified automatically which are more accurate compared to the manual procedure. Furthermore, Public Key Infrastructure (PKI) ensures safety of data. When the tax returns are filed manually, refunds are slow and time consumed. Through the e-Filing, the forms can be processed in a short time and this enables refunds to be processed fast.

2) Renewing Road Tax
For RM2.75, Malaysian can now renew their road tax online and, for an additional RM6, have the road tax delivered to them the next day in the Klang Valley. The delivery fee for those living outside the Klang Valley is RM8, and RM10 for those in Sabah and Sarawak. This online service enabled the public to renew their road tax from anyplace with Internet access and at anytime, via http://www.myeg.com.my/ and www.jpj.gov.my.The public can also renew road tax at E-Service Kiosks placed at the company's 54 E-Service Centres as well as selected bank branches nationwide. Payment for the online road tax renewal service can be made through credit or debit cards or E-cash (MyEG prepaid account).

3) e-Perolehan
ePerolehan is an electronic procurement system provided by the Government to enable suppliers to sell their products or services on the Internet. Through ePerolehan, suppliers and contractors can receive, manage and process orders or payments from Government agencies through transactions done electronically on the Internet.

Below are other examples of successful application of Malaysian e-government:

· Government’s drive for e-government services
·Electronic Labour Exchange (http://www.elx.gov.my/) has matched 75,000 potential employees with employers since 2005.
· SMS alert on e-government services
· Online renewal of driving licenses
· Electronic filing of income tax forms
· Voter information
· Details for government tenders
· Employment opportunities



The recent survey about e-government adoption in Malaysia, which was done by market information group TNS, indicated that the e-government use is growing but at a slow pace. As shown in the study, about 15% of Malaysians have used the internet to access online government services in year 2003 compared to 12% in year 2002. In the survey, Malaysia’s ranking is 25th out of 32 countries in terms of e-government usage growth. The Malaysians are also concerned about the security of doing transactions over the Internet and this resulted in low usage of e-government services. As far as the age group is concerned, the younger Malaysians who are under 34 are the primary users of e-government services. Also noted in the survey, households with high incomes and higher levels of education actively use the e-government services.

The implementation of e-government services will bring benefits to the public, businesses and the government itself. As for the public, saving time and money are the primary reasons to use the e-government implementation, the governments should market their offers, improve citizen’s awareness of the benefits and increase take-up of online services.

PROBLEMS faced in e-government implementation:

· Lacks of public awareness – 60% of the public are not aware of the services offered. Solution: Increase awareness through TV advertisements and organizing workshops at shopping malls.

· Online Behaviour - Malaysians remain sceptical on being distrust on electronic transaction especially on banking online and buying from an Internet store.

· Language barrier – Most of the government websites had in the past been in Bahasa Malaysia. However, there are English versions now.

CITIZEN’S ADOPTION STRATEGIES

E-Services form an emerging field, which is rapidly gaining attention and importance. Citizens expect and demand governmental services with a high degree of quality, quantity, and availability in a 24-hour, seven-days-a-week, and year-round fashion. Governments all over the world are developing information systems and electronic services that have the capacity to meet these emerging service needs and demands of citizens and other clients. Success in delivering electronic services depends upon the capability and self-confidence of citizens in performing e-transactions, as well as their trust and confidence in the protection of their personal data within an open and accountable government. The ease of use, compatibility, and trustworthiness are significant predictors of citizens’ intention to use e-Services and that perceived reactive advantage, perceived image, perceived compatibility, perceived usefulness, and relative advantage are significant elements of e-Government adoption.

E-Government adoption is affected by website design elements that provide perceived ease of use and perceived usefulness, by user characteristics such as sense of perceived risk, feeling of perceived control and prior Internet experience, and also by citizen satisfaction with the quality of its services.

1. Customer satisfaction

E-Government adoption requires that citizens show higher levels of satisfaction with the online service provided by the government. A higher level of customer satisfaction will increase the rate of e-Government adoption.

2. Service Quality

Online service quality for e-Government could be measured in terms of quality of content provided on the website, the speed of the response to the citizens concerns with problem solving approach, and the availability of names. Other important measurement factors are telephone and fax numbers of personnel with whom citizens might need to get in touch, and the integration of an offline channel with online channel so that citizens could interact with government departments through other means if necessary. Higher quality of service will lead to higher levels of customer satisfaction and thus can increase the use of e-government services.

3. Website Design

Personalization of websites, customization of product offerings, and self-care are the three key features that could be used not only to build relationship with the visitors, but also to enhance their experience. These features give visitors a sense of control and participation and could potentially enhance their adoption

4. User Characteristic

User characteristics such as perceived risk, perceived control, and internet experience can have a direct impact on internet adoption. Experience influences a citizen’s trust of e-Government. Users with prior experience, especially if satisfied, would be more likely to return to use e-Government services. Perceived risk leads to security and privacy issues that could discourage the use of online services. It is important to ensure that citizens can transact online securely and their personal information will be kept confidential to increase the level of trust and the e-government adoption rate.

The adoption of e-government bring more convenient to Malaysian and people no longer need to walk to the office to pay their tax form and etc, but pay it in the internet. Nowadays, this implementation still not popular among Malaysian but in the future this will be a great benefit for them.