Decision to remove 10% surcharge for use Touch n' Go at parking is up to service providers: Najib (Updated)

KUALA LUMPUR: The decision to remove the 10% surcharge for the use of pre-paid Touch n' Go (TNG) cards for shopping centres and parking sites lies solely on the service providers' discretion.

Stating this, Prime Minister Datuk Seri Najib Abdul Razak (pix) said that negotiations are ongoing between Touch n' Go Sdn Bhd (TNGSB) and the service providers to absorb the cost.

"TNGSB is in discussions with the service providers like car park operators to negotiate with them to absorb the cost of providing and maintenance of the TNG system.

"However, the decision to place the service charge for the use of TNG cards lies within the evaluation and discretion of the service providers," he said in a Parliamentary written reply dated Nov 16.

Najib, who is also Finance Minister, was responding to a question from Nurul Izzah Anwar (PKR-Lembah Pantai) on whether using the TNG card as a medium of sales and purchase will incur additional cost through a service charge on consumers.

He said many TNG system providers do not have any additional charges for the use of TNG cards for payment of goods or services like at toll booths on highways and grocery purchases.

"Nevertheless, there are certain service providers like car park operators, who place a surcharge for the use of TNG. This is to bear the operational and management of the facility at certain locations which offer the TNG facility.

"Yet, there are also service providers who choose not to place the additional charge on TNG card users and absorb the cost of operating the system instead," Najib said.

It was reported in May that TNGSB had opposed the 10% surcharge placed by TNG system providers at parking sites and shopping centres.

Many Malaysians have begun questioning the reason for the additional 10% surcharge for using the TNG card, which is an environmental-friendly and convenient practice and against the government's move to encourage cashless society.

On May 27, TNGSB had said that it supported a "no surcharge fee" business model and is negotiating with parking operators, building owners and interested parties to waive the surcharge.

"This effort has resulted in the establishment of nearly 20 parking sites that provide cashless services without surcharge," TNGSB corporate sales, marketing and communications division head Aina Abdullah had said.