CIMB takes PLUS to court over RFID system

KUALA LUMPUR: CIMB Group Holdings Bhd, the parent company of Touch 'N Go Sdn Bhd, is taking PLUS Malaysia Bhd to court a day after it filed for an arbitration to stop the highway concessionaire from launching its own toll collection system.

The originating summons was filed at the High Court of Kuala Lumpur (commercial division) on Dec 18.

CIMB, in a filing with Bursa Malaysia today, said the legal proceeding was initiated following disputes that have arisen between the CIMB and its wholly owned unit CIMB SI 1 Sdn Bhd on the one hand and PLUS on the other  in connection with and/or under the joint venture agreement dated May 12, 1998.

The JVA resulted in the setting up of Touch 'N Go Sdn Bhd (TNG).

PLUS, in a response to CIMB's move on Dec 17 to initiate the arbitration process, said today that it is not backing down.

"PLUS firmly believes that the recent launch of PLUS RFID targeted pilot will promote choices to the rakyat as it offers options and convenience for customers," it said.

The PLUS RID system is an open payment platform, which also allows the use of Touch N' Go's e-wallet and prepaid payment, as well as debit and credit cards.

"PLUS believes that it is not a breach of any agreement,' it said.

Meanwhile, CIMB said today the legal action aims to restrain PLUS from commencing, carrying out, utilising, developing and/or operating the business and implementation of the PLUS radio frequency identification (RFID) system for the purpose of toll transactions on Malaysian highway systems.

It is also trying to block PLUS from carrying out any sales, marketing and/or promotional activities to secure and/or approach customers or potential customers from purchasing and/or utilising the PLUS RFID system.

At the same time, CIMB wants to ensure that PLUS does not interfere in the sales, marketing and/or promotional activities conducted by TNG for the Touch 'N Go radio frequency identification (RFID) system and/or to cause any disruptions in these activities conducted by TNG.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Next In Business News

Axiata seeks 66% stake in Indonesia's Link Net
Pos Malaysia appoints Charles Brewer as new Group CEO�
Bursa ends July on a disappointing note, KLCI closes below 1,500
Gamuda Engineering, Bosch Rexroth to raise construction benchmark
SC cracks down on Binance, tells investors to take their money out
KLCI falls below key 1,500 level
CIMB Niaga posts higher 1H net profit of RM614m
Oil prices drop, but on track for weekly gain
Dollar near one-month low, set for worst weekly showing since May
Asian shares extend losses, set for worst month since March 2020

Stories You'll Enjoy