Malaysia: MyEG to buy food review website Eat Drink KL

MyEG to buy Eat Drink KL
View of Malaysia's Twin Towers at night

Malaysia’s electronic government services provider MyEG is in talks to buy a controlling stake in food review website Eat Drink KL.

According to the report in The Edge on Wednesday, MyEG is close to sealing a deal with the website owned by former Associated Press journalist Sean Yoong. The terms of the deal were not disclosed.

Malaysian stock exchange-listed MyEG has not formally made any announcement on the deal or issued a denial.

After the acquisition, Eat Drink KL may become a part of MyEG-subsidiary MyEG Capital Sdn Bhd that owns online advertisement platform MyEG Ad Networks, Car X Services, Picasso Media Sdn Bhd and online television provider Hurr TV Sdn Bhd, the report said.

Traditionally, MyEG is engaged in the development and implementation of e-government services and the provision of solutions for Malaysian e-government initiatives like vehicle road tax and drivers’ licence renewal and foreign workers’ permit renewal.

However, the organisation has taken to a diversification path in the past few years. In February this year, its subsidiary Hurr Tv Sdn Bhd formed another subsidiary MUCA Wellness Sdn Bhd which is expected to engage in e-commerce activities.

The organisation has always been seen as one dependant on government contracts but now MyEG is trying to reshape that image. It said in an interview to a local daily earlier this year that commercial solutions and services form 70 per cent of its business “thus no longer rendering it just a concession for various e-government applications”.

Nevertheless, this year it bagged a government contract for online renewal of the temporary employment passes for foreign workers for the Immigration department. The fiver-year project is estimated at MYR553.85 million.

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