PLUS denies RFID launch breaches joint venture deal

PETALING JAYA: PLUS Malaysia Bhd today confirmed that it has been served with an arbitration notice by CIMB Group Holdings Bhd, but it refuted allegations of its Radio Frequency Identification (RFID) system breaching the joint venture agreement (JVA).

PLUS said in a statement that the recent launch of the PLUS RFID public pilot project will promote choices to the rakyat as it offers options and convenience for customers to pay as you use, with credit and debit cards, in addition to the existing e-wallet and prepaid mode of payment provided by Touch ‘n Go.

“Touch ‘n Go’s e-wallet and prepaid payment remains one of the options in the PLUS RFID public pilot project, PLUS therefore believes that it is not a breach of any agreement.”

PLUS opined that 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 customers service.

“PLUS is looking forward to making our case in the arbitration proceeding.”

Meanwhile, CIMB told Bursa Malaysia today that the group and its wholly owned subsidiary CIMB SI 1 Sdn Bhd have taken legal proceedings against PLUS vide an originating summons filed at the High Court of Kuala Lumpur.

They are seeking an injunction to restrain PLUS from implementing the RFID system as well as interfering in the sales, marketing and/or promotional activities conducted by Touch ‘n Go its RFID system.

The RFID system uses a radio frequency chip embedded on a sticker that is fixed to the vehicle. The sticker, which is unique to each vehicle, will be linked to the Touch ‘n Go eWallet, allowing users to monitor their balance and access online reload options via online banking and debit/credit cards. The RFID sticker will eventually replace the current SmartTAG device.

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