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Several experts are calling the government to end Touch ‘n Go’s (TnG) monopoly over toll payment for the good of consumers.
Former president of Transparency International and economist Tan Sri Ramon Navaratnam said that generally, monopoly is harmful to consumers as there is no competition.
Allowing one company to monopolise the business will allow the company to hold the public and government at a sort of ransom. He urged the government to give the public access to alternate services, products, and routes.
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“Malaysia should do away with monopoly and go for open tender. We have to be fair to our country. Unfairness will cause a lot of disunity, corruption, and cronyism,” he told the New Straits Times (NST) today.
He further pointed out that the monopoly over toll payment has allowed CIMB Group Holding’s subsidiary Touch ‘n Go Sdn Bhd to impose an exorbitant charge on the public as they forced road users to move on to RFID.
Also read: Works Ministry to PLUS and TnGo: Justify charging RM 35 for RFID stickers
Ramon added that TnG should be transparent in these charges. “When you are transparent, let the people judge. And if they feel exploited, it is their right to go against you - the company and the government of the day. What TnG is doing now is not good governance.”
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Dr Ahmed Razman Abdul Latif, a Putra Business school professor echoed Ramon’s sentiments. He said that RFID was supposed to allow multiple modes of payment and not just from TnG.
Other than his hopes that eventually there will be more modes of payment for RFID, he also added that RM 35 for one sticker is ridiculously high. The sticker should only cost RM 2 per piece instead.
Also read: Works Ministry confirms no more TnG and SmartTag services by 2025
Works Minister, Fadillah Yusof, has already announced in a Free Malaysia Today (FMT) interview that the government is looking into offering more payment methods. However, the additional modes of payment will still depend on the uptake of RFID usage in the country.
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Federation of Malaysian Consumers Associations (FOMCA) secretary-general Datuk Paul Selva Raj has also accused TnG for not caring about the wellbeing of its consumers or their needs and problems.
Also read: Touch 'n Go to introduce new card with NFC capabilities
The secretary-general pointed out that the decision to replace SmartTag with RFID had drawn outrage from the public, but though TnG had claimed to be sensitive to the public’s worries, they still went ahead with reducing SmartTag lanes at some toll plazas.
“The is clearly an abuse of its dominant position because consumers do not have a choice,” he said.
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Selva Rag also insisted that TnG is overcharging the consumers to make excessive profits.
“While the RFID was supposed to be given free to consumers or at a very nominal price, it charges RM35. This is clearly overcharging consumers. And without a competitor, consumers have no choice. The government has the Price Control and Anti-Profiteering Act to protect consumers against overcharging,” he added.
