THE Federation of Malaysian Consumers Associations (Fomca) fully supports Domestic Trade and Cost of Living Minister Salahuddin Ayub, who is finally taking firm action to stop Touch ‘n Go’s abuse of consumer protection and welfare.

The Competition Act 2010 was established to prevent monopolistic behaviour by companies that abuse their position in the market and cause suffering to consumers.

Fomca filed a complaint with the Malaysian Competition Commission (MyCC) on October 30, 2018, against Touch ‘n Go.

Two years later, on August 28, 2020, MyCC responded that it had investigated and, according to the results of its inquiry, “the issues raised do not raise any competition concern”.

No matter how consumers are abused by Touch ‘n Go, the MyCC feels that it is not an issue of non-competition or the monopoly abusing its power.

Abuse of consumer welfare cropped up again when Touch ‘n Go informed motorists that RFID would replace SmartTag.

There was an outpouring of anger and Fomca too a firm stand that consumers should be given a choice and not forced into purchasing RFID.

MyCC was again silent.

Fortunately, the then prime minster made a firm announcement that consumers should be given a choice.

MyCC failed but fortunately the prime minister and the then minister of domestic trade and consumer affairs stepped up to protect consumers.

RFID is being sold at an exorbitant price of RM35. Of course, a monopoly can overcharge consumers.

Meanwhile, MyCC has refused to act and liberalise the sector, ensure open competition so consumers will benefit from lower prices and better quality.

MyCC continues to remain silent, despite all the complaints. There are also a growing number of complaints against Touch ‘n Go.

In light of these continued complaints and practices, and an ineffective MyCC, Fomca welcomes the action by the new minister to form a special task force to look into complaints about Touch ‘n Go.

The new minister clearly is concerned about consumer welfare and consumer protection, and we believe that he will stop the bullying and abuse by the company.

Beyond Touch ‘n Go, Fomca also calls on the new minister to review the MyCC’s effectiveness and efficiency in protecting consumers.

We need a better governance and management approach that puts consumer well-being at its core.

A failed MyCC will clearly result in higher prices, lower quality, and a limited choice of goods and services.

Given the current high cost of living, consumers are certain to suffer further.

From 1998, Fomca fought for the creation of competition legislation, which was enacted in 2012.

We strongly believe that a truly free market – free from monopolistic abuses – would greatly benefit consumers through lower prices, better quality and more variety of goods.

For example, if the sales of the RFID had been liberalised, we are certain that free competition would drive down the price substantially.

The MyCC was formed for just that purpose: liberalise the economy and eliminate monopolistic behaviour.

Although there is the law if the commission fails to act, it is only good on paper and the consumer will continue to suffer unjustly.

We again call on the minister to review the MyCC and make it more effective to protect consumers.

The institution should be strengthened with to ensure that it fulfils its purpose to protect consumers and to enhance consumer wellbeing. – January 27, 2023.

* Press statement from Paul Selva Raj, Fomca secretary-general.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.