CIMB files arbitration to stop PLUS RFID

KUALA LUMPUR: CIMB Group Holdings Bhd , the parent company of Touch ‘n” Go Sdn Bhd, is seeking to stop highway operator PLUS Malaysia Bhd from launching its own toll payment collection system.

In a filing with Bursa Malaysia today, CIMB said it has filed and served a notice of arbitration dated Dec 17 on PLUS.

The company claimed that PLUS has breached the obligations it owed to CIMB and CIMB SI 1 Sdn Bhd by commencing and launching its own PLUS radio frequency identification (RFID) system.

“The company and CIMB SI 1 are, amongst others, seeking an injunction to restrain PLUS from engaging in further business of the PLUS RFID system together with damages, interests and costs,” it said.

CIMB, CIMB SI 1 and PLUS are parties to a joint venture agreement dated May 12, 1998 in relation to Touch ‘N Go Sdn Bhd.

Last month, PLUS managing director Datuk Azman Ismail said the company will introduce PLUS RFID open payment system at the Penang Bridge, Butterworth-Kulim Expressway and the Jitra toll plaza.

He said the PLUS RFID project is aligned with the government’s innitiave to modernise the toll industry. PLUS FRID is an open payment system that offers drivers the flexibility to pay toll via debit and credit cards.

Corporate News , CIMB , PLUS