This article first appeared in The Edge Malaysia Weekly on July 20, 2026 - July 26, 2026

THE Ministry of Transport has awarded a RM178.29 million contract to develop and operate the road charge and vehicle entry permit system (RC/VEP) at the Malaysia-Singapore border to private company Integriti Padu Sdn Bhd.

The six-year contract, covering the development, operation and maintenance of the system, was awarded on May 26, according to a tender result document sighted by The Edge.

The award came nearly a year after the ministry issued a request for proposals on June 30, 2025.

Integriti Padu, which was incorporated 18 years ago, is 34%-owned by executive chairman Datuk Nasir Baki, according to company filings. Nasir is the brother of Tan Sri Azam Baki, who stepped down as chief commissioner of the Malaysian Anti-Corruption Commission on May 12.

Nasir’s daughter Mardhiah Nasir, who is Integriti Padu’s managing director, owns 20% in the company. The remaining 46% is held by Ice Age Property Sdn Bhd, which is linked to businessman and former politician Datuk Mohamed Suffian Awang.

The transport ministry separately called a tender on July 9 for six months of hardware maintenance and storage subscription services for the RC/VEP system, according to the MyProcurement website.

Integriti Padu operates IPSB Technology, which provides IT infrastructure modernisation and digital media services. Its website lists its expertise in managing unstructured data, including audio and video, through asset management, platform development and monetisation services.

The RC/VEP system was introduced to regulate foreign-registered vehicles entering Malaysia and improve the enforcement and collection of outstanding traffic summons before they leave the country.

Foreign-registered private cars are charged RM20 each time they enter Malaysia. They must also install a VEP radio-frequency identification (RFID) tag, which is valid for five years and can be procured with a RM10 processing fee and a RM29.50 agent service fee.

The road charge can be paid through Touch ’n Go while the tag can also be used at Malaysian highway tolls that support RFID payments.

The system was previously spearheaded by TCSens Sdn Bhd, founded by Tan Chean Suan, which received a RM149.45 million contract in 2015 through direct negotiations intended to expedite the system’s rollout. Malaysian Chinese Association (MCA) vice president Datuk Seri Wee Jeck Seng held a 25% stake in TCSens before selling it in mid-2018.

The contract was examined by the Public Accounts Committee in 2019. The PAC found that the direct award had failed to achieve its stated aim of accelerating the project for completion by 2016 and said political influence had been involved.

The committee also flagged the subcontracting of the RM104.3 million operating portion of the contract to DNeX RFID Sdn Bhd in January 2017 without the transport ministry’s approval. DNeX RFID is a 51%-owned unit of Dagang NeXchange Bhd (KL:DNEX).

Enforcement of the VEP RFID requirement only began in October 2024, before it became compulsory in July 2025.

The government is still studying an expansion of the RC/VEP system to eight checkpoints along the Malaysia-Thailand border, Parliament was told this month. It is understood that the latest contract does not include the northern rollout.

Integriti Padu recorded a net profit of RM5.44 million for the financial year ended Dec 31, 2025 (FY2025), up 61.6% from RM3.36 million a year earlier. Revenue rose 7.5% to RM31.75 million from RM29.53 million in FY2024. The company had total equity of RM15.54 million and liabilities of RM37.14 million at the end of FY2025.

Aside from the RC/VEP job win, Integriti Padu in January also secured a RM40.85 million three-year contract via open tender from the Ministry of Communications to operate RTMKlik 3.0, a free over-the-top (OTT) streaming service operated by public broadcaster Radio Televisyen Malaysia (RTM).

Last year, it won an RM45.34 million contract from the Ministry of Education to supply ICT equipment for school administrations in Sabah under a five-year lease-to-own arrangement. 

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