The Malaysia Competition Commission (MyCC) has issued a statement to respond to the Federation of Malaysian Consumers Associations (FOMCA) on the ongoing Touch ‘n Go (TNG) monopoly for highway toll payments. A few days ago, FOMCA accused MyCC of failing to end TNG’s alleged monopolistic behaviour and called for a revamp of MyCC.
According to MyCC, it is cognizant of the issues raised by the public including FOMCA and other stakeholders on the matter and it has been continuously monitoring the market in which TNG operates. MyCC said there’s a clear misconception imposed by FOMCA on the issues of monopolies.
According to their statement, “The Competition Act 2010 (“Act 712”) clearly sets out that being a dominant or monopoly in a particular market is not an infringement. However, a monopolistic or dominant enterprise infringes Act 712 only 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.”
MyCC added that it does not have jurisdiction over consumer issues between TNG and its users. It clarified that TNG being an electronic money service provider is governed by Bank Negara Malaysia (BNM) through its relevant laws and guidelines. Meanwhile, the association between TNG and highway toll concessionaires with regards to toll payment systems is governed by the Malaysian Highway Authority (LLM), an agency under the Ministry of Works.
MyCC said it has looked into issues with TNG including issues raised by FOMCA in 2018. However, they found that TNG did not raise any competition concerns under Act 712 despite being a monopoly for the toll payment system in Malaysia. Other issues that were raised by FOMCA include 10% parking surcharge for using TNG card, the difficulty in finding reload channels, reload charge of 50 sen at certain TNG reload outlets, delayed refunds for dormant or lost cards and other customer service matters. MyCC said it told FOMCA that these issues are not competition related but it seems that FOMCA could not accept a legitimate conclusion of a regulator up until today and insisted that MyCC should address consumer issues despite laws clearly focusing on competition matters.
Despite this, MyCC said it had carried out some limited intervention on the issues and have resulted into changes implemented by TNG. This includes abolishment of TNG parking surcharge at 94% of its sites in 2021, increase in TNG reload channels with zero fees, new Enhanced TNG Card which allow instant reloads with NFC-enabled phones and refunds for TNG cards within 30 days as imposed by BNM provided sufficient information has been provided.
Touch ‘n Go urged to be more transparent on the proceeds of its RM25 special edition cards
Besides the ongoing confusion with the new TNG Visa card, MyCC is aware that TNG is unable to effectively address concerns on scalpers reselling TNG NFC cards at exorbitant prices. Although TNG has tried to fulfill demand, MyCC says TNG should take more stern action against scalpers who have caused losses to users who had to pay higher prices to obtain and enjoy the features of the new NFC cards.
MyCC has also advised TNG to be more transparent on the sale of its RM25 special edition TNG cards in terms of its actual cost and amount of donation that will be forwarded to the targetted organisations. The regular enhanced TNG card with NFC is priced at RM10, and Touch ‘n Go has released special edition United Voice and GreenPossible cards that are priced at RM25 each. Touch ‘n Go has even collaborated with Honor last year, to bundle a free special edition Enhanced TNG card for the Honor 70 Icelandic Frost edition. They have also released a badminton themed card in conjunction with Malaysia Open 2023.
MyCC had called for RFID tolling system to accept other payment platforms
Touching on RFID, MyCC said it fully supports the stance of the Ministry Of Domestic Trade & Consumer Affairs (KPDN) that TNG should be more proactive in addressing the issues surrounding the implementation of RFID. They advised TNG to increase the number of customer service locations to enable easy access to users to address issues and to carry out its advocacy in order to ensure more effective implementation and seamless transition to RFID for toll payment.
MyCC had previously also shared its assessment and concerns on the implementation of RFID last year including the need to consider not only the payment of tolls via debit or credit cards but also other eWallet systems. After issuing their statement, the former Works Minister Datuk Seri Fadhillah Yusof had called all highway concessionaires to be ready for the implementation of a multi-lane-free-flow system (MLFF) where users are free to use any digital mode of payment and it will put an end to TNG’s monopoly by 2025.
The commission is also working on enhancing its powers under Act 712 and the Competition Commission Act 2010 via the amendment of both Acts, which are expected to be tabled in Parliament by this year. MyCC said “The amendments focus on the powers of MyCC to investigate and enforce the law including the introduction of the merger control regime to prevent the formation of cartels and new monopolies. The challenges posed by the untimely Covid-19 between the year of 2020 to 2022 did not deter MyCC from continuing its ambition to achieve these amendments.”
Before Malaysia can implement a barrier-free MLFF experience for highway tolls, it will require further action from the Ministry of Transport, Ministry of Works and Ministry of Finance. This includes the enforcement of standardised number plates, enhancing legal framework to nab toll evaders, and allowing open payment system to accept other forms of payments other than TNG.
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- Touch ‘n Go reminds users to only buy Enhanced NFC cards through official channels to avoid being scammed
