This article first appeared in The Edge Financial Daily on December 19, 2018

KUALA LUMPUR: PLUS Malaysia Bhd confirmed yesterday it had been served with an arbitration notice by CIMB Group Holdings Bhd to restraint PLUS from engaging further in the PLUS Radio Frequency Identification (PLUS RFID) business.

Highway operator PLUS said in a statement that CIMB Group and its wholly-owned subsidiary CIMB SI 1 Sdn Bhd had initiated arbitration proceedings against PLUS, pursuant to the disputes under the joint-venture agreement (JVA) dated May 12, 1998.

PLUS said it is looking forward to making its case in the arbitration proceedings.

“PLUS hereby confirms that it has been served with the arbitration notice dated Dec 17, 2018 on the same date by CIMB. PLUS firmly believes that the recent launch of the PLUS RFID targeted pilot will promote choices for the rakyat as it offers options and convenience for customers to pay as [they] use, with credit and debit cards, in addition to the existing e-wallet and prepaid mode of payment provided by Touch ’n Go.

“Touch ’n Go’s e-wallet and prepaid payment remain one of the options in the PLUS RFID public pilot project; PLUS therefore believes that it is not a breach of any agreement. Giving additional choices to highway users should be considered a virtue, in line with the spirit of Touch ’n Go agreement to provide them the best customer service,” PLUS said.

On Monday, CIMB Group announced the arbitration it sought on the grounds that PLUS had breached its obligations under the JVA in relation to Touch ’n Go by launching its own toll collection system.

In a stock exchange filing yesterday, CIMB Group updated that it had filed an originating summons against PLUS in the Kuala Lumpur High Court, seeking an injunction to restrain PLUS from carrying out, using, developing and/or operating the PLUS RFID system for toll transactions on Malaysian highways.

It is also seeking to restrain PLUS from marketing or promoting the RFID system, and to restrain it from interfering with or disrupting Touch ’n Go’s RFID sales, marketing or promotions. The reliefs are sought pending the disposal of the arbitral proceedings it initiated against PLUS.