The time has come for the new government to relook at the monopoly being enjoyed by Touch N Go and its impact on consumer protection and consumer wellbeing.
As a monopoly, FOMCA strongly feels that consumers are getting a shoddy deal paying higher prices for lower quality of services. Some of the grouses of consumers include:
- Instead of paying less when you use a cash card, you have to pay a surcharge up to 10%. Thus although you have already made a pre-payment, at point of use you still have to pay an additional 10%;
- In some parking lots, only Touch N Go is accepted;
- You need to pay an additional charge to reload/top-up your card;
- Consumers have complained of Smart Tag that does not work at the Toll gate showing “No Smart Tag” sign – this is certainly embarrassing as well as an obstruction to other drivers;
- Consumers have complained about use of the Touch N Go card at the Komuter stations;
- Charging dormant fees for non-use of the card;
- Smart Tag Centres being available on only very limited centres for repair or purchase;
- Power to deduct pre-paid monies without consent of the card holders.
FOMCA feel that it is time for the government to de-regulate the industry to ensure lower prices and better quality of services for consumers. The monopoly being enjoyed by Touch N Go is resulting in consumers being taken for granted as consumers have no alternatives. With better competition, the companies in the industry will be forced to provide lower prices and better quality of services.
FOMCA to protect consumer well-being will be filing a complaint with the Competition Commission to examine the actions of the monopoly and its impact on consumer welfare and if necessary to act to break the monopoly and free the market to more alternative companies. FOMCA strongly believes that a competitive market will ensure better consumer protection and enhanced well-being.
30 October 2018
Dato’ Dr. Paul Selva Raj
Chief Executive Officer,
Federation of Malaysian Consumers Associations (FOMCA).