Contemporary IT Services Pay Off

Published by The Star (Biz Week)

THE United Engineers (Malaysia) Bhd (UEM) group is poised to make bigger strides in the information and communications technology (ICT) sector, particularly now, following a major revamp. “We are now focusing on contemporary IT (information technology) services and products, as opposed to the more traditional legacy IT businesses,” Azlan Tahir, head of the UEM group ICT division tells BizWeek in an interview.

Azlan explains, previously, UEM's ICT business division was fragmented and largely focused on performing specific tasks within a single client environment. This resulted in duplication and inefficient utilisation of resources.

The newly revamped ICT division is grouped under subsidiary Time Engineering Bhd. Azlan points out: “The UEM group ICT division has presence in most of the ICT value chain, and we are able to offer a broad range of services including conceptualising, developing and managing business processes.”

Azlan expects the division's broad-based capabilities to be a major earnings driver for UEM group. Each company within the division has identified its core competencies, and has developed products which can be offered individually. One such product is the customs document clearing system and vessel information system for ports, developed by Dagang Net Technologies Sdn Bhd (DNT), a subsidiary of Time Engineering, which in turn is a subsidiary of UEM World.

DagangNet integrated information system, also known as Sistem Maklumat Kastam-DagangNet, (SKM-DagangNet) basically reduces paperwork and facilitates shorter cargo turnaround and document processing time.

Dagang Net group chief executive officer, Saifol Shamlan points out: “SKM-DagangNet has reduced the cargo turnaround time in Port Klang from 4 days to 2 days. In some cases, cargo is cleared within the same day. Previously, customs and related documents took as long as two days to be processed by two staff, whereas now, with the paperless system, processing time is reduced to just 15 minutes and it can be done by one clerk.” In addition, the rate of rejection of customs forms has been drastically slashed to 5 % from a staggering 40% previously, says Saifol.

SKM-DagangNet is an international trade portal based on Electronic Data Interchange (EDI) and used for trade documents by port operators. Saifol likens the system to a lubricant to the trade process. He says: “At the moment, the system covers customs and port documentation. In the future, we will have a system that covers all aspects of goods transportation.”

DNT itself, however, is by no means a start-up company. Although the fruit of its labour is only just beginning to show itself, the idea of Dagang Net, as Malaysia's EDI exchange, was conceptualised way back in 1993.

“Even after the successful launch of the paperless system, DNT encountered countless problems...clients were not able get used to the paperless system,” reveals Saifol. He goes on: “Even now, many clients depend on us to fill in the details online. These customers will not be able to benefit from all the cost advantages that SMK-DagangNet offers, although they will save tremendous time and effort.”

The paperless customs clearance system is not just confined to sea ports. The system is already driving the electronic trade facilitation of the maritime and aviation activities in Port Klang, Kuala Lumpur International Airport (KLIA), Port of Tanjung Pelepas (PTP), Pasir Gudang, Tanjung Kupang (at the second link to Singapore), Tanjung Puteri, Penang, Kuantan and Kemaman.

DNT recently launched MyPorts, a value-added service which includes a search engine on harmonised system codes, weekly reports on customs exchange rates, registered customs Cargo Report (CUSCAR) location codes and shipping schedules. MyPorts is designed to be linked to the SMK-DagangNet system, to enable further automation of the customs clearance process, and a one-stop trade exchange.

“We cannot depend on a single product to drive growth,” admits Saifol. However, DNT will still have to build new products that are to be used in conjunction with existing products.

With emphasis on that, DNT offers a value-added service called Vessel Information System , which provides information on incoming and outgoing vessels. Saifol says: “With this system, users are able to know where their goods are at any given point in time.”

Thus far, DNT has invested some RM86 million in existing technology. Saifol says it will soon have more innovative systems in warehouse management, a national integrated container information service and e-insurance.