CIMB the owner of Touch N Go cashless payment system took PLUS Malaysia, the highway concessionaire who operates the North South Expressway and the Penang bridge to the courts over a new pilot program the company was testing that involved RFID.

For those who were following the story, the news of the program which was piloted on the Penang bridge just a couple of weeks back, saw a new technology that allows highway users to use the RFID lane with just a tag stuck to the headlamps of their vehicle. Customers can sync the tag to any payment option of their choice including debit, credit card or ewallet apps including TnG Digital (owned by CIMB 49% and Alibaba 51%). This is probably where CIMB is not too happy about, with an exclusive agreement (we assume) with PLUS Malaysia to use only Touch N Go for all non cash transaction at toll booths, the new system allowing multiple payment methods will potentially dilute CIMB’s haul from the tolls and commissions the bank receives.

PLUS Malaysia acknowledged on the notice served by the bank and its decision to initiate arbitration  proceeding under the UNCITRAL Arbitration Rules against the concessionaire on the disputes under their JV Agreement dated 12 May 1998. CIMB is seeking of injunction to restraint PLUS from engaging in further business of the RFID system together with damages, interests and costs.

The break in monopoly and giving highway users multiple choices in making payment for tolls is seen as a positive move as highlighted by many consumers. PLUS looks at it as giving choices to the rakyat as it offers options and convenience for customers to pay as you use, in addition to the existing e-wallet and prepaid mode of payment provided by Touch ‘n Go. The company therefore believes that it is not a breach of any agreement. Giving additional choices to the highway users should be considered a virtue in line with the spirit of the Touch ‘n Go  agreement to provide them the  best customer service.