Dagang Net may Roll Out e-Clearing System for Pakistan

Published by New Straits Times (Business Times)

DAGANG Net Technologies Sdn Bhd is set to make inroads into Pakistan with its electronic-clearing system services.

Its general manager Yong Voon Choon said the company and Pakistan-based Software Pty Ltd will work as a consortium to apply for the right to set up an electronic-clearing system for the Customs Department in Pakistan.

“We are in the midst of submitting a proposal to set up an electronic-clearing system for the Customs Department in Pakistan ... if our application is successful, we will most likely proceed to form a joint-venture company to undertake the project,” he added.

Yong was speaking to Business Times at the sidelines of yesterday’s press conference to announce that Dagang Net has appointed Time Quantum Technology Sdn Bhd to manage its new information and communications technology (ICT) infrastructure.

“Our Pakistan partner has already held talks with officials from Pakistan’s Ministry of Finance, and we are waiting for further appointments with other relevant ministries,” Yong said.

He said Dagang Net plans to develop and implement a paperless system for trade documentation that would improve the movement of cargo in Pakistan’s ports.

The system that Dagang Net intends to roll out in Pakistan is similar to the electronic-clearing system used by Malaysia’s Customs Department, which aims to ease electronic submission of Customs documents for cargo clearance.

“The project in Pakistan will most likely be undertaken on a joint-venture basis. The equity structure of the joint-venture company has not been worked out yet, but the company will need about US$20 million (US$1 = RM3.80) to kick start the project,” he said.

Dagang Net’s roll-out plan for Pakistan involves a four-step approach. The first step will be to train the people on how to use the new technology — Customs officers, forwarding agents and port officials.

“Once this is done, the company will want to change the processes to adapt to the new technology, and then we will install the necessary hardware and software,” said Dagang Net senior general manager Zaharin Ali.

He said it is also important for the Pakistan Government to make changes to the legal framework to facilitate the usage of the new technology.

In Malaysia, the Government had to amend the Evidence Act to allow computer-generated documents to be admissible as evidence in court.

Dagang Net is 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.