IMPLEMENTATION OF E-PBT BY MALAYSIAN LOCAL AUTHORITIES

HALIMAH @ NASIBAH AHMAD (PRESENTER)
MD. SUHAIMI MD SALEH
MOHAMAD SHAROFI HJ. ISMAIL
NORHANI ARIPIN
Universiti Utara Malaysia

INTRODUCTION 

Today, more and more people are looking to the Internet as a source of information. Internet has also been described as a new platform in the distribution of information and services either by public or private sectors. Malaysian government is not in the exception where the implementation of e-government is the evident of enhancing the usage of the information communication technology (ICT).  “E-government is the delivery of information and services online through the internet or other digital means.”In order to realize the E-government, E-pbt is specifically design for all local authorities in Malaysia.  Therefore, this study attempts to investigate the level of readiness of all Malaysia local authorities towards the implementation of E-pbt. 

PROBLEM STATEMENT AND MOTIVATIONS OF THE STUDY 

ICT promises greater efficiency and greater convenience to the public. Through internet, services provided by organization will be more accessible and will provide faster turn-around time.  Consequently, E-pbt is introduced.  E-pbt which was formerly known as Smart Local Government-Governance Agenda (SLGGA) is a project that is being implemented in phases by the Housing and Local Government Ministry. It is expected that by year 2005, all local authorities would have their own websites that would be accessible through a portal at www.epbt.gov.my. Public will be able to deal with their local authorities online through this program[i]. Currently it is linked to (http://www.epbt.gov.my/html/epbt.asp).

The concept of e-pbt is that to have online application system based on all local authorities website to carry out their daily transaction. Among the services are e-assessment, e-compound, e-rental, e-licensing, e- complaints, e-submissions, e-business  and e-community[ii].  However, the evidence is still lacking on the implementation of E-pbt.  Thus, this study will focus on all Malaysian local authorities in order to investigate the level of implementation of E-pbt. 

RESEARCH QUESTIONS 

The main research question of this study is to investigate whether all Malaysian local authorities are ready towards the implementation of E-pbt.  Specifically, this study seeks the answers of the following questions:

1. Do Malaysian local authorities have websites that are linked to E-pbt?

2. Do Malaysian local authorities have five online application services as required by E-pbt?

3. Do Malaysian local authorities’ websites provide interactive features?

4. Do Malaysian local authorities have security systems to support E-pbt?

5. Do Malaysian local authorities have IT related staff to manage and administer the websites?

 OBJECTIVES OF THE RESEARCH

 The primary objective of this paper is to investigate the readiness of all Malaysian local authorities towards the implementation of E-pbt.  Specifically, this study investigates:

1. The number of local authorities having websites that are linked to E-pbt.

2. The number of local authorities that provides five services that is required under E-pbt.

3. The number of local authorities that provide interactive websites.

4. Current state of security systems in the local authorities’ websites.

5. The number of staff involves in managing and administrating the local authorities’ websites

SIGNIFICANCE OF THE RESEARCH 

The findings of this research would shed some light on the implementation of E-pbt by all Malaysian local authorities. It is also will be useful to the Malaysian Government and MAMPU to know the extent of implementation of E-services by local authorities after spending a lot of money in promoting the electronic government. Besides, the result may contribute to the body of knowledge and extent the existing literature on the implementation of e-services by government agencies especially in Malaysia. 

LITERATURE REVIEW 

Local authorities in Malaysia 

Local government or local authority is the third tier of the Malaysian government and is governed by the Local Government Act 1976. Local authority as the closest government agency to the public is very important to the life of the people. Its responsibility is not only accommodating the public with variety of services and basic facilities but also as an important channel for the public in their interaction with the government.  It is indeed a transformation of the way the government operates as well as how it delivers services to the people of Malaysia by using information communication and technologies (ICT) Ahmad et al. (2003).

E-services: Other Countries Experience 

E-services is defined as the conduct of business with the assistance of telecommunications, and of telecommunications-based tools Clarke (1997). However according to Hewlett Packard (HP), e-services is the idea that the World Wide Web is moving beyond e-business and e-commerce (that is, completing sales on the Web) into a new phase where many business services can be provided for a business or consumer using the Web. HP defines e-services as "modular, nimble, electronic services that perform work, achieve tasks, or complete transactions."

Australia Federal and local state governments are also increasingly offering better online services at greater convenience to the public and operating with greater transparency. They can be more responsive to the needs of clients, engage more closely with citizens, and be more efficient (NOIE, 2002). However study done by Lu and Zhang (2003), showed that lack of expertise and technique, together with expense, were three main barriers confronting e-service development.

United States is one of the countries that have some well-developed local and regional government websites. For example, many United States citizens can go online to file taxes, pay fines, renew driver’s licenses and register vehicles (Tillett, 2000;Verton, 2000).   The United States federal government believes it is important to provide e-government services in order to save time and money, reduce bureaucracy, make the government more responsive to the needs of citizens, and expand opportunities for participation in the digital economy (Gostyla, 2000; Whitehouse, 2000). According to Verton (2000) and Wood-Lewis (1998), e-government creates efficiency through providing citizens with relatively inexpensive, real-time access to consistent, up-to-date information and transaction facilities.

Similarly, New Zealand central government has also developed a portal called NZ Government Online (NZGO) that provides links to a vast amount of government related information. However, the New Zealand local and regional government websites are not as well developed as some in United States. A research done by Deakins and Dillon (2002) found that, at the time of their survey was carried out, 69 percent of the 49 local authorities in New Zealand had live websites, with an additional 8 percent having websites currently under construction. All local authorities without websites believed that online presence was important for making information more accessible to the public, even though they did not expect it to reduce the need for face-to-face client interactions.

Like the United States, New Zealand and other countries all around the world, Malaysia also determined not to be left too far behind the global leaders in e-government. The Malaysian government has mandated that each government agency to create their IT strategy plan in order to strengthen the relationships with public and businesses through better transparency and information flow (www.mampu.gov.my).

The launching of the Smart Local Government Governance Agenda (SLGGA) is also expected to promote e-government among local authorities. It was launched on 7^th of July 2003, by the Housing and Local Government Minister as a collaboration effort between the Ministry and National Information Technology Council (NICT).The program would enhance the local authorities’ efficiency in providing better services to the citizens using the information technology. SLGGA is also hoped to strengthen the elements of transparency, accountability and effectiveness and will also be more responsive. Under SLGGA, the ‘epbt.gov.my’ portal will be developed to enable the citizens to access the latest information about the activities and services provided by the authorities. Effective from September 2003, about 40 local authorities nationwide was expected to implement the online programs through the respective websites.

The SLGGA, now recognized as E-pbt offers five basic services. Among the services are e-collections, e-licensing, e-taxes, e-complaints and e-submissions. The objective of this project is to increase the quality of service to the public and to provide greater convenience for the public. It is also a move towards an Electronic government system and will help local authorities to improve their transparency, accountability, efficiency and response and would bridge the digital divide between local authorities that were more advanced and those that lagged behind. Therefore, it is expected that after the implementation of this project, public will be able to pay taxes, assessment rates, quit rent, renew licenses and make complain on the Internet.

Kalsom Salleh (2004) carried out an exploratory study on reinventing local government- Electronic Service Delivery and the study replicated the research done by Harman et al. (2001). Findings of the research showed that a high percentage of city councils (67%) and municipal council websites (71%) have external links (public and private sites) to web sites outside the organization. It was also found that more than 50% of both city councils and municipal councils had offered more than five online services such as suggestion, complaint, tax payable, and car parking compound, business licenses, e-form and others. Conclusion from the study done was that Malaysia’s Local Authorities have already made headways through web sites and electronic service delivery to drive towards e-government concept and citizen-centric initiatives. Marchioni, Samet and Brandt (2003) classify e-government application into 3 categories: access to information, transaction services and citizen participation. 

RESEARCH DESIGN 

Web sites of 146 local authorities linked to Housing and Local Government Ministry portal at (http://www.epbt.gov.my/html/epbt.asp) were visited between 23 July 2006 and 2 August 2006. The purpose of this exercise is to gather information on (i) accessible local authority web sites, (ii) classification of web site whether very basic, basic or interactive and (iii) to determine numbers of local authorities that provide more than 5 online application systems on web sites. Descriptive statistics are utilized to analyze the data.

A set of questionnaire was distributed to all Malaysian local authorities.  The questionnaire were addressed to all local government and addressed to the personnel incharged of the information technology (IT) department such as IT officer or the assistance. Descriptive statistics is used to explain the data received. Of the 8 City Councils, 34 Municipal Councils, 101 District Council and 3 Special Local Authorities that received the surveys, 6 (12%) are city council, 11 (22%) are municipal council, 32 (64%) are district council and 1 (2%) is other special local authority[iii] (Pihakberkuasa Tempatan) which is not subjected to Local Government Act 1976.In total, of the 146 local authorities that received the surveys, 50 responded, that is 34.2%.  Descriptive statistics is used to explain the findings. The respondent overview is shown in table 2. 

TABLE 1: Respondent Overview 

 FINDINGS AND DISCUSSION 

Between 23 July 2006 and 2 August 2006 websites of all councils that are linked to e-pbt portal were visited. Table 2 displays the result. 75% of city councils have interactive websites, while 56% of municipal council has the features and only 24% of district councils have interactive features on their websites.  44 out of 146 (30%) council have the very basic web sites, that only display menus with minimum content. This means that 76 out of 146 web pages are predominately limited to information only, as Layne and Lee 2001 referred to as cataloging. Only one (1) city council website was not accessible.  Overall, 17.8% websites were not accessible during the stated period.

A statement by Department of Local Government in 2003[iv] disclosed that 41 local authorities either without a website or have an incomplete website. It also shed a light that 92 (63.9 %) councils have some sort of online application system and 11 (7.6%) councils provide more than 5 online application services. It means that 103 local authorities have at least a basic websites. As revealed in Table 2, it is found that 118 web sites are accessible, that is 80.8% of all local authorities linked to Housing and Local Government Ministry Portal.

The study has provide some evident that there are little made by councils and much more need to be done to improve the electronic service delivery. 

TABLE 2: Interactivity of websites: Based on visit 

Table 3 shows the summarized results based on the survey of the awareness of E-pbt of city council, municipal council and district council. It is found that 96% of city council and municipal council are aware of the E-pbt. Out of 32 district council, only 2 (6%) are not aware of the E-pbt.

Table 3 also shows the number of local authorities having web sites that are linked to E-pbt. The results shown in this table revealed that 40% of local authorities admitted that their web sites are linked to e-pbt web site. Only 2 out of 6 (33%) city councils have the web sites that are linked to E-pbt and 1 out of 11 (9%) municipal council’s web sites are linked to E-pbt. However for district councils’ web sites, 16 out of 32 (50%) are linked to E-pbt.

TABLE 3: Awareness of E-pbt and Web Sites linked to E-pbt 

Table 4 reveals the web based applications used by local authorities.  These applications are develop to enhance the requirement of E-pbt.  From the table, it provides an answer on the availability of services that should be provided by E-pbt.

In the case of city council, 83% (5) of them completed the on-line complaint application system.  Generally, majority (67%) of city council do not have revenue, license, rental and query on revenue, license and rental. As for municipal council, about 63% (7) of them completed on-line complaint application.  However, at least 64% of them did not have the rest of the application.   The same result also was observed for district council where majority of them did not have the web-based applications. Table also 3 displays number of local authorities that have used web based application.  About 67% of city council had completed their inventory and assets application while 50% had a completed the Geographical Information System known as GIS and Electronic Document Management System known as EDMS application. Interestingly, 72% (8) municipal council completed the GIS and EDMS application.  A high percentage also occurred for not having an advance application such as GIS and EDMS. City councils lead the way by having advanced application systems especially the checking and query system. However, in terms of transaction many do not have the appropriate system to support the payment-enabled application.

Municipal Councils and District Councils are yet to have most of the online application system accept for few who have electronic complaint submission, electronic compound checking and electronic assessment tax checking system. It is interesting to discover that 16 councils (10.9%) have implemented GIS and EDMS in their respective organizations. This will assist the management to provide fast and efficient services by the use of technology. The use of EDMS is proven to reduce redundancy as filling systems are transformed from physical to electronic media and thus inline with the so called electronic government concept if implement wisely.

Table 5 discloses on the interactivity of local authorities website.  According to the table, the results indicate that 2 out of 6 (33%) city councils, 7 out of 11 (67%) municipal councils and only 11 out of 32 (34%) district councils have the interactive web sites.

TABLE 5:  Interactivity of websites (Based on questionnaires)

 On the other hand, Table 6 shows the findings on security of local authority’s system. It was found that 83% (5) of the city councils install the anti-virus software and 60% of them install the anti-virus software both at the PC and server level. All 11 of the municipal councils do have the anti-virus software and majority install both at PC and server level. Only 2 of the district councils do not install the anti-virus software in their organization. It was also found that majority (17 out of 32) of the district councils install their anti-virus software only at PC level. Data and information will become a major treat once councils open up their systems to the world. If councils are to be online, they ought to prepare themselves with up to date security systems.

The findings demonstrate that many councils have installed anti virus programs on the servers and on their computers to protect from any intrusions. Those local authorities that appear online especially that provide interactive features do have security measures to protect their data as well as their system from any invade.

In addition, most of the local authorities do have their disaster recovery system. 37 out of 50 councils have disaster recovery plan. There are several types of disaster recovery plan, namely magnetic tape, parallel back-up, roll back-up, parallel back-up to hard disk and emergency action plan. The most popular type of disaster recovery plan being adapted by most local authorities in Malaysia is magnetic tape and parallel back-up to hard disk. Surprisingly, one of the district councils has all types of the discovery plan in its organization. This findings shows that there are still lacking in terms of policy related to Information Systems Control. Considering the sensitivity of electronic systems including hardware, software, data, personnel, documentation and facilities, should an unexpected catastrophe occur, there must be a disaster recovery plan to ensure the system can be recovered as smoothly and quickly as possible. Data should be back up as frequent as possible, since data is the most fragile component in a system.

CONCLUSION REMARKS

The findings of this research suggest that majority are just providing information and many local authorities websites are not up dated. However most city councils and  55.9% (19 out of 34) municipal councils that provide online application system or transaction services. This could be considered quite slow since the initiatives took place 3 years ago. Majority district councils and town councils do not have online application systems needed to support online systems. Thus financial support and technical support from federal and state agencies are crucial to ensure the smooth implementation of e-government in Malaysia. This study on the other hand does not cover the financial aspects, training and the management involvement to evaluate successful of e-government implementation. This study does not cover the initiatives taken by state government that is observed by having a customize web pages. Future studies should strive to gain some information on effectiveness and efficiency of e-services implementation.