KUALA LUMPUR, Dec 18 — PLUS Malaysia Bhd (PLUS) today said it has not breached any agreement with CIMB Group Holdings Bhd (CIMB) over Touch ‘n Go’s facility as it remains an option in its Radio Frequency Identification (RFID) system.
It said in a statement today that it believed PLUS RFID will give customers options and convenience to pay as they use with credit and debit cards, and with Touch ‘n Go’s existing e-wallet and prepaid payment system.
“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,” it said.
PLUS said it was looking forward to making its case in arbitration proceeding after CIMB filed a suit claiming PLUS violated an almost-two decade joint venture agreement (JVA) regarding toll payment collection.
In an announcement on Bursa Malaysia Securities' website, CIMB Group Holdings along with its wholly-owned subsidiary CIMB SI 1 Sdn Bhd yesterday said it served a Notice of Arbitration to PLUS, dated to December 17.
“The company and CIMB SI 1 are seeking to invoke the arbitration agreement contained in the JVA in relation to disputes that have arisen with PLUS in connection with and/or under the JVA,” it said.
On May 12, 1998, CIMB SI 1 and PLUS signed the JVA in relation to cashless payment system Touch 'N Go Sdn Bhd.
CIMB Group argued that PLUS breached the agreement's obligations by launching its own RFID system.
“Among others, the company and CIMB SI 1 are seeking an injunction to restrain PLUS from engaging in further business of the PLUS RFID system together with damages, interests and costs,” it said, adding that it will continue to update Bursa Malaysia Securities on any developments.
CIMB Holdings Group's actions follow in the wake of PLUS Malaysia's launching last Saturday of its RFID system's public pilot phase for users of the Penang Bridge, Butterworth-Kulim Expressway and Jitra in Kedah.