Dagang Net to Set Up US$20m Joint Venture

Published by The Malay Mail (Mail Money)

Dagang Net Technologies Sdn Bhd plans to set up a US$20 million (U3$1 = RM3.80) joint-venture company with a Pakistan-based technology concern to handle Customs transactions in Pakistan. People familiar with the matter said yesterday.

Mail Money was made to understand that Dagang Net had submitted a concession-based proposal to set up an electronic clearing system for the Customs Department in Pakistan.

Dagang Net's proposal is believed to be similar to the electronic clearing system used by Malaysia's Customs Department which aims to ease electronic submission of Customs documents for cargo clearance.

If successful, Dagang Net will develop and implement a paperless system for trade documentation that would improve the movement of cargo in Pakistan's ports.

It is further believed that a decision on the proposal could be made as early as March, based on feedback from talks between Dagang Net and the Pakistan Government.

Dagang Net is also believed to have held talks with technology firms in Nigeria, Bangladesh and Syria to set up an electronic clearing system for the Customs departments in those countries.

Sources say talks with interested firms in the three countries are still at the exploratory stage and that Dagang Net's immediate concern is to break into the Pakistani market.

It's seen as a prime candidate to win the job in Pakistan, thanks to its experience in handling the Port Klang Community System (PKCS) project.

PKCS, Malaysia's maiden e-commerce project, is one of the most successful e-commerce projects in the region, making it the model of e-commerce application for trade administration in Asia and a reference site for many countries outside Asia.

Dagang Net holds a 15-year Government concession to manage port and Customs-related e-transactions in Malaysia.