Two consumer groups have welcomed the government’s decision to allow the public to use any digital payment provider to pay highway: Business Economics Assignment, UON, Singapore

Two consumer groups have welcomed the government’s decision to allow the public to use any digital payment provider to pay highway tolls. Spokesmen for the Malaysia Consumers Movement (MCM) and the Federation of Malaysian Consumers Associations (Fomca) said it was high time that Touch ‘n Go’s monopoly be broken. On Tuesday, works minister Fadillah Yusof said the use of other providers would be allowed once highway concessionaires were ready to link up with them and when radio frequency identification (RFID) penetration had reached a rate that would allow travel without barriers.

MCM secretary-general Sukhdave Singh said Touch ‘n Go had been in the monopoly for too long and the lack of competition had caused a risk of market abuse. “As the country moves towards digitization, it is important to allow other players in this space,” he told FMT. “Car park operators are already allowing the pay wave function of debit and credit cards to pay for parking charges. What is stopping our highway operators from doing the same?” He complained that the RFID system now had too many glitches that were causing inconvenience to road users.

“In the meantime, alternatives must be provided for consumers before a sizeable percentage of road users migrate to the RFID system,” he said. “Those who wish to use alternatives must be allowed to do so.” Fomca CEO Saravanan Thambirajah said the decision to allow alternative toll payment systems would force companies to compete in offering good products and discounts. He also said it was important to continue providing manual modes of payment in consideration of road users who do not have RFID. “You cannot force everyone to use it, especially those in the rural areas,” he said.

Transport consultant Rosli Azad Khan questioned whether the government was moving to encourage another monopoly with the shift to RFID. “If other forms of e-wallet payments are allowed but can only be done via Touch ‘n Go, then there is no difference,” he said. “PLUS and Touch ‘n Go will still benefit. This format is not acceptable, not when it costs RM35 per RFID sticker.” He said the best thing for the government to do was to allow more toll payment providers so that people could decide how they preferred to pay.