Breaking Touch ‘n Go’s monopoly: MyCC stands firm with the public

THE Malaysia Competition Commission (MyCC), an independent body which is tasked to enforce the Competition Act 2010, has applauded the recent commitment by Prime Minister Datuk Seri Anwar Ibrahim to urgently look into the monopoly of payment system provider Touch ‘n Go Sdn Bhd (TnG).

This is with regard to the use of the payment system for tolls and public transportation, including re-considering possible alternative to stimulate competition in the said market.

MyCC which was set up in June 2011 further noted that it has taken into account initiatives taken by Works Ministry and Transport Ministry such as the introduction of the multi-lane free flow (MLFF) which will allow users to pay tolls using other payment methods and the plan to develop more payment option for public transportation.

These moves are expected to end the monopoly of TnG in the relevant markets in line with the demand made by the public.

In order to ensure concrete development in this area, MyCC through the taskforce set up by Domestic Trade and Cost of Living Ministry will continue to monitor the progress and behaviour of the incumbent in order to guarantee seamless entry of new players into these markets.

“MyCC has investigated a few monopolies before this whereby one of them was found to have made an attempt to increase the cost of new entry by making an exclusivity agreement with its downstream players,” commented its CEO Iskandar Ismail.

Iskandar Ismail

“As a result, the aspiration of the government to inject competition in that market could not be fulfilled.”

He added: “Similarly, we will adopt the same approach in monitoring the development to instill competition in the payment of highway toll market and public transportation so that we can have viable alternative and strong competitor(s) that can compete effectively in the market for the benefit of the users.”

In late January, MyCC dismissed claims that it remained silent despite the increasing number of complaints from the people against the services provided by TnG.

Its chairman Datuk Seri Mohd Hishamudin Yunus insisted that the issues brought to the attention of MyCC, including those raised by the Federation of Malaysian Consumers Association (FOMCA) in 2018, were only related to consumerism.

Specifically, those issues raised by FOMCA centred on parking surcharge of 10%, difficulty to top up due to the scarcity of reload channels, reload charge of 50 sen at certain places, delayed refund for dormant or lost cards and other customer service-related matters. – March 21, 2023

Subscribe and get top news delivered to your Inbox everyday for FREE