Sunday 14 Apr 2024
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KUALA LUMPUR (March 21): The Malaysia Competition Commission (MyCC) has applauded the government’s proposal to look into possible alternatives to the Touch ‘n Go (TNG) monopoly in the payment system for tolls and public transportation so as to increase competition in the market.

MyCC also welcomed the initiatives by the Works Ministry (KKR) and Transport Ministry (MOT), to consider the introduction of a Multi-Lane Free Flow (MLFF), which will allow users to pay tolls using other payment methods, as well as the plan to develop more payment options for public transportation.

In a statement on Tuesday (March 21), MyCC chief executive officer Iskandar Ismail said these moves are expected to end the monopoly of TNG in the relevant segments, as demanded by the public.

“MyCC has investigated a few monopolies before this, whereby one of them was found to have made an attempt to increase the cost of new entry by making an exclusivity agreement with its downstream players.

“As a result, the aspiration of the government to inject competition in that market could not be fulfilled,” Iskandar said.

On Sunday (March 19), Prime Minister Datuk Seri Anwar Ibrahim, in response to a question from a participant at the ‘Meet Anwar’ dialogue at the Kuala Lumpur Convention Centre, said the government will review TNG’s monopoly in the public transport and toll payment system.

In order to ensure concrete development in this area, Iskandar said that MyCC through the taskforce set up by the Ministry of Domestic Trade and Cost of Living (KPDN) will continue to monitor the progress and behaviour of the incumbent in order to guarantee seamless entry of new players into these markets.

"Similarly, we will adopt the same approach in monitoring the development to instil competition in the payment of highway toll market and public transportation, so that we can have viable alternative and strong competitors that can compete effectively in the market for the benefit of the users," he added.

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