PLUS: RFID launch is not a breach of any agreement

Giving additional choices to highway users should be considered ‘a virtue’


PLUS Malaysia Bhd denied allegations that the launch of its Radio Frequency Identification (RFID) system had breached any agreement it has with other parties on similar services.

The company said in a statement yesterday the recent launch of the PLUS RFID targeted pilot will promote choices to the people as it offers options and convenience for customers to pay as they 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 remain some of the options in the PLUS RFID targeted pilot.

“PLUS therefore believes that it is not a breach of any agreement. 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 customer service,” PLUS stated in the statement yesterday.

The statement was released in response to claims by CIMB Group Holdings Bhd, via its wholly owned subsidiary CIMB SI 1 Sdn Bhd, that PLUS has breached the obligations it owed to them under the joint-venture agreement (JVA) in relation to Touch ‘N Go Sdn Bhd, by commencing and launching its own PLUS RFID system.

In an exchange filing yesterday, CIMB noted the group and CIMB SI 1 have started material litigation against PLUS in the Kuala Lumpur High Court and are seeking an injunction to restrain PLUS or its employees offering or marketing the RFID system to the public.

These reliefs are sought by CIMB and CIMB SI 1 pending the arbitral proceedings commenced against PLUS at the Asian International Arbitration Centre on Dec 17.

PLUS has confirmed it has been served with the arbitration notice on Monday.

As such, PLUS is looking forward to making its case at the arbitration proceeding.