Abstract: “This paper presents the findings of the field work and interview conducted on the challenges and difficulties of system development at the Perbadanan Hal Ehwal Bekas Angkatan Tentera (PERHEBAT) or Armed Forces Ex-servicemen Affairs Corporation. The study employed both personal interview and observation methods. The findings revealed that infrastructures (hardware and software), manpower, materials, methods and fund were the critical challenges and difficulties faced by PERHEBAT during their system development. Therefore, the study concludes that infrastructures, manpower, materials, methods and fund play crucial role for an effective system development. Our study recommends that there should be sufficient budget to procure the right system hardware and software for right requirements. Secondly, training of staff for both IS development and management should be given urgent attention”

Keywords: challenges, difficulties, information, system, PERHEBAT