CIMB which currently owns 52% of Touch ‘n Go is taking legal action against highway concessionaire PLUS for launching their own RFID system. According to CIMB, this is a violation of a joint venture agreement on toll payment collection that was signed two decades ago.
According to an announcement on Bursa Malaysia, CIMB Group Holdings Berhad and its wholly-owned subsidiary, CIMB SI 1 Sdn Bhd had filed and served a Notice of Arbitration on PLUS Malaysia Berhad on 17 December 2018. This came right after PLUS had kicked off its first RFID Pilot test on 15 December 2018.
CIMB, CIMB SI 1 and PLUS had signed a Joint Venture Agreement dated 12 May 1998 in relation to Touch ‘n Go. The announcement mentioned that CIMB and CIMB S1 are seeking an injunction to stop PLUS from engaging further business of PLUS RFID system together with damages, interests and costs.
In case you missed it, RFID is a new cashless toll payment system that will replace SmartTAG. Instead of a card reader, it uses a sticker that’s installed on either the headlamp or windshield.
Touch ‘n Go was the first to conduct public RFID testing for toll payments in September but they are focused mainly in Klang Valley. Last week, they have initiated registration for RFID Pilot testers in Penang.
PLUS had announced its RFID Pilot Test registration sometime in November and it’s currently available in Penang Bridge, BKE (Kubang Semang, Lunas) and Jitra Toll Plazas. Unlike Touch ‘n Go RFID which requires an eWallet, PLUS RFID can be linked directly to your preferred prepaid, debit and credit cards.