The Malaysia Competition Commission (MyCC) has said in a recent release that upon implementation of the multi-lane free flow (MLFF) toll system, highway users will be able to use any digital mode of payment, hence eliminating the monopoly of the toll payment system by Touch ‘n Go (TnG).
The release, which was dated January 28, 2023, was issued after the Federal of Malaysian Consumers Association (FOMCA) slammed MyCC for failing to end TnG’s alleged “monopolistic behaviour.”
In a statement, FOMCA secretary-general Paul Selva Raj cited the Competition Act 2010, which was introduced to prevent such behaviour by companies, adding that a complaint had been filed against the payment systems provider (that also operates the TnG eWallet through TnG Digital) as far back as 2018.
On August 28, 2020, MyCC responded to FOMCA by informing it had undertaken an investigation, although Paul claimed no action has been taken since then. “FOMCA welcomes the action by the domestic trade and cost of living minister to form a special task force to probe complaints against TnG. Beyond TnG, Fomca also calls on the minister to review the effectiveness of MyCC in protecting consumers,” Paul said in the statement.
MyCC is now clarifying that it was aware of the issues raised by the public, FOMCA and other stakeholders on the matter and has been continuously monitoring TnG’s operations. However, it said in its release that there was a clear misconception imposed by FOMCA on the issue of monopolies, as a company is only infringing the Competition Act 2010 when it abuses its position in the market.
“In this instance, MyCC recognises that TnG monopolises the toll payment system only. They became a monopoly naturally as soon as the government decided, via a gazette, to abolish cash payment for tolls nationwide with the intention of reducing the congestion at the toll booths for the convenience of highway users,” the commission explained, adding it does not have the jurisdiction in consumer issues between TnG and its users.
“TnG being an electronic money service provider is governed by Bank Negara Malaysia (BNM) through its relevant laws and guidelines. As for the association between TnG and toll concessionaires with regards to toll payment system, it is governed by Lembaga Lebuhraya Malaysia (Malaysian Highway Authority or LLM),” it continued.
MyCC also said it had carried out some limited intervention on issues raised, which has led to change being implemented by TnG. These include abolishing the parking surcharged imposed by TnG at 94% of its sites in 2021, providing more TnG reload channels with no service charge, introducing the Enhanced Touch ‘n Go card with NFC to enable reloads via the eWallet phone app, and refunding dormant or lost cards within 30 days as required by BNM provided sufficient information is provided.
On the matter of the MLFF toll system, MyCC said in its release that a discussion was held on January 17 last year with PLUS Expressways and TnG to address another issue relating to the implementation of the radio frequency identification (RFID) system by TnG. The discussion, which was MyCC’s own initiative, focused on the need to consider other payment methods besides debit or credit cards, but also additional e-wallet systems.
A week after, previous works minister Datuk Seri Fadhillah Yusof issued a call to all highway concessionaires to be ready for the implementation of a MLFF toll system, including the need to consider not only the payment of tolls via debit or credit cards, but also other e-wallet systems.
Meanwhile, earlier this month, the domestic trade and cost of living ministry (KPDN) formed a task force to look into the TnG Visa card that sparked confusion among consumers. The issue was the TnG branding on the card, which suggested it could be used to pay for toll or public transport when it really couldn’t due to an incompatibility issue.
KPDN minister Datuk Seri Salahuddin Ayub also instructed TnG to carry out advocacy and provide early notification to users to inform them of the expiry period in TnG cards, something that is not noticed by users, especially for those who use MyKad for TnG transactions. This is in addition to speeding up the process for refunds and reducing the period needed for balance transfers. Another matter brought up was the sale of TnG cards by third parties at prices well above retail.
The matter of providing users with additional payment options was also brought up by current works minister Datuk Seri Alexander Nanta Linggi. In a report dated January 17, 2023 by Malay Mail, he said there is a big possibility that drivers will be able to use other cashless methods to pay for toll using RFID other than the current, sole option of the TnG eWallet.
RFID is part of the transition to the MLFF toll system by 2025, which utilises a gantry structure without designated booths, lanes and boom barriers. The technology relies on the RFID tag and an automated number plate recognition (ANPR) system to identify vehicles and charge them accordingly.
While the idea of being able to pay for toll using other cashless methods sounds great, RFID tags can only be obtained from TnG. Would you consider that a monopoly? What do you think of the whole situation? Share your thoughts with us in the comments below.
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This MyCC is run by a group of hopeless dudes.
T n G is given a near or semi monopoly for donkey years.
Check their blardy accounts.They make tons of $$$ but in terms of efficiency.. they deserve “GAGAL” status.
3 weeks ago, all new T n G cards were sold out for 2 days all all LRT n retail stores.Those who order thro Lazada got to wait.What service r they providing? How can they be sold out? Consumers have to go from one petrol station,7 eleven,to LRT stations..to be told “TAK ADA STOK 2 HARI” .
PM Anwar,time to get another bumiputra GLC like Sime Darby to take over this shit company.
“PM Anwar,time to get another bumiputra GLC like Sime Darby to take over this shit company.”
You will need AP for each TnG card sold with the GLC.
Don’t tell PM u need AP.He force the Bernas taikoon to donate to PADI farmers due to semi monopoly..Can be done.If there is a will,there is a way .Don’t be a parrot , swallow the Garbage.
A more important question would be can TnG passive RFID do MLFF? Padahal single lane also cannot cope and have endless problems.
The fundamental problem with the entire system is simply that it doesn’t work properly. The failure rate (of reading the tags and clearing the toll) is too high. Malaysia should have adopted a MLFF system directly, instead of using MyRFID as an in-between, given that MyRFID is not all that different from SmartTag in terms of reliability.
Malaysia could let TnG monopolise the toll payment system as long as they can regulate it like a utility, which it essentially is. There is no guarantee that a free market system would work any better than a monopoly. In fact, introducing a free for all system would only make the system a bigger mess. There was a time when each tolled highway operator had their own prepaid card system, and the mess that ensued was what prompted the consolidation to TnG in the first place.
If they wanted to implement a market based system with many players in it, they’d have to first set up a common standard that is interoperable across all highway networks from day one. A standards setting body with participation from all market players might be the better long term solution but it will take time for the body come to an agreement and realise the benefits.
In the meantime, replacing the current booth system with a MLFF system should take priority regardless if they go monopoly or competition. The current toll system is letting the highway operator collect their revenues at the absurd expense of our money (additional gasoline or energy expensed to decelerate and then accelerate off the toll), risk of accidents from cross traffic (getting to the right booth and merging afterwards), and wasting time (the queue from transactions failures), just to name a few obvious problems.
In other words, the current system is costing the road users much more in hidden costs than the amount in toll that is actually paid, and this should be addressed as soon as possible. The debate if we should let it be a monopoly or not should be, at least for the time being, a secondary issue.
You are very right Rick ! Bulls eyes ! Hope both Ministers (KPDN and Works Minister) digest your comments.
Indeed there’s multiple problems. As long as the reload or payment system is not open for other credit cards and e-wallets, the problem will persist with or without MLFF. Imagine needing to pay surcharge at MRT station for reloads at the station master’s counter. That is because the reload machines are out of order. And they don’t even accept TnG eWallet for reload purposes. There are car parks now taking visa or MC as payment via paywave….. no reason for TnG Visa to not have that as well at the toll and other places….. Its just whether the shareholder of TnG wants to foot the bill for it or not. CIMB Bank….. help the nation….. you are the shareholder right?
Also, it continues to elude me as to the reason why we do not already have an MLFF system. There are plenty of systems successfully implemented more than a decade ago. We don’t even have to go that far to find a successful case as Singapore already provided us ample evidence that it is extremely effective.
The lazy excuse of saying active RFID is so costly that adding a RM500 device into all new cars is a burden to buyers is absurd. The cost of getting stuck behind failed transactions, decelerating and accelerating off the toll, and the simple accident risk from cross traffic, added up over the years, could easily cost more than the active RFID system itself.
Talk too much…. other country already successfully implement.
The richer will become richer monopoly since the beginning but the poorer will be poorer because they are the one voted for them and still blame the country owe them since they are born and also blame others people for their failure
But we still need to pay 35 for the sticker from them…
MLFF is but a dream. TnG is not only monopolistic but also a daylight robber. Do you know that the RFID that is registered to a dedicated vehicle cannot be use on another vehicle or transfered or return for a redund even if that vehicle it was registered is sold or is in a workshop? And its a bloody joke when it comes to refund on ‘expired’ balance retained in the card. TnG must be summon for deliberately ‘stealing’ from the rakyat.
it’s still monopolistic, Time to get rid of TnG, all cronies
Should allow payment by whatever cashless platform. TnG cheated us by deducting RM5 every 6 months of non usage and refused to refund whatever money left over in suspended cards. It’s like daylight robbery under supervision of BNM!!
In Portugal, not sure what they call it, you just link any credit card to your car number using a automated drive thru kiosk. Then you will be charged when passing the MLFF thing. There will be signs indicating you have been charged 2E and so on. Free flow traffic. Those not registered can pay at post office within 24 hours. If not paid summon will be sent to car owner.
Look at Singapore using the gantry with the deduction electronic system. I have seen near misses when all the cars are trying to figure out which lane they have to be to pay the toll.
Still monopoly. As long reload thru T&G ewallet.
another ‘sembang sampai babi terbang’ from MyCC…haha
New TnG cards are not available in official outlets, absolutely so grossly inefficient and indifferent.
As for the association between TnG and toll concessionaires with regards to toll payment system, it is governed by Lembaga Lebuhraya Malaysia (Malaysian Highway Authority or LLM),”… so shouldnt MInistry of Work & MHA add clarity to the whole issue and PLUS to provide explanation as to why Paydirect not enabled at PLUS toll as quick win before implementing MLFF? With Paydirect, no need to buy nfc card, no issue nfc card out of stock, no additional RM10 to be incurred, no issue need to scramble finding rfid lane as you approach toll lanes, no need to find reload booth.
Can’t they just reference to Singapore? Hopeless.
Another option to control everyone digitally…. easier to implement New World order’s CBDC!!
Good comment, Rick
Oi TnG, lu ingat lu punya kad baru beg tangan Chanel ka? mau limit sales… pooooodah!!
Do not need to use ewallet from TNG but the still need to install RFID that can only be provided by TNG. Isn’t that still a monopoly?
Lokasi topup TnG yg tiada cas 50sen selalu rosak berpanjangan tanpa d repair..wujudkan lebih banyak lokasi topup percuma tanpa cas 50sen jika ingin kekalkan TnG d pasaran monopoli..jgn biar rakyat terus bayar cas tersembunyi 50sen bila topup…rakyat bukan kaya
Fed up oledi. Another 10 more years same story crop up. What boleh land is this?
There is little doubt that T & G is an inefficient, user-unfriendly, bordering to user-dangerous when approaching and exiting toll booths, system.
I speak from my 40 years of driving and can say this system is hideous.
If on the other hand, we are thinking of providing cheap employment to toll booth operators by sustaining archaic systems, then I am on another planet and we can end the discussion here and now.
What operators of different toll systems need is the cash collected. Hence, any gantry setup which recognises a vehicle’s owner by his/her vehicle who is in turn connected to any payment system, should be able to reimburse any toll system owner. It is a matter of hardware, software and willingness on the part of authorities (with all toll operators contributing proportionately for expenses incurred in setting up the gantries)
Look around other countries and see how easily, at usual speeds the gantry system recognises vehicles and debits the owner’s payment system without fuss!
Tamatkan segara monopoly TnG Serra merta! Bayar dekat supermarket pun ada byk pilihan bayaran. Servis TnG pun agak teruk. Terutama RFID. Dah tiba masa customer di beri pilihan membuat bayaran.
Malaysia toll system is more than 10 years behind developed countries. Our RFID toll system is nothing better than smarttag but even worst.
It’s time to refresh the entire MYCC… unworthy and full of excuses instead of protecting the consumer rights … run by dumbells … obviously TNG is making full advantage and is not consumer friendly …instead they are gold diggers and full of insensitivity.
So many card in purse can be use to pay tol not only T&G card. Probably there are somebody or bunch of pedro thats taking care some business group, can say partner thats stop this to happen.
Credit card, bank card and now handphone clever enough to spend money through it. This matter to upgrade the software system if thinking to do good for malaysian.
I believe banks will be happy to have this business.
I’m RFID user and felt that the tag should be tied with the vehicle not the owner e-wallet. When the vehicle changed hand, the tag could be used by new owner…. If another person used the vehicle they can upload based on the vehicle registration number not the owner e-wallet. That is a kind of monopoly by TnG RFID option at present.
All toll to be collected by gov, then pay highway builder and take over highway after contract ends. Gov represent and work for people. Simplicity.
T&G has monopoly on the for TOL payments and is able to dictates its ‘wishes’ on highway users. Why would the T&G card or the NFC card have an expiry date? This means that when the card expires, T&G gains more income by forcing the user to purchase a new card. Even if the card has expiry date, users should not be charged a new card price to replace it. Already trying to get the remaining balance in the expired card is a hassle. The introduction of RFID is just a way for T&G to earn more money by forcing users to purchase the RFID stickers for their vehicles at exorbitant price.