The supplier of SmartTAG/Touch 'n Go card readers, Rangkaian Segar Sdn Bhd, is partly responsible for the inability of some toll plazas to meet the government's deadline in implementing the device as part of their payment system, claimed industry sources today.

The sources also disputed that highway concessionaires were to be blamed for the delay as insinuated by Works Minister S Samy Vellu yesterday.

The minister said there were several highway operators who have not prepared their lanes for the new system.

"I know there are a few, maybe one or two companies who have not bought the equipment," he said, adding that the government would not extend the July 1 deadline for implementation to accommodate the companies.

However, the minister also revealed that there was a three-month shortage in the supply of SmartTAG card readers by Rangkaian Segar, the owners and marketers to the system.

Industry sources today clarified that two highway concessionaires - Grand Saga and Kesas - failed to ready their lanes because Rangkaian Segar has run out of the card readers.

A SmartTAG reader is used along with the Touch 'n Go card and it allows cars to go through the toll booths without stopping.

Contacted later, a Rangkaian Segar official said the company to resolve the issue by the first week of July.

Hefty losses

According to news reports, highway operators using the other three payment systems - Express Tag, Fastrak and Saga Tag - are expected to lose millions of ringgit in the transfer. One operator, Kesas, reportedly said it will lose RM14 million in the process.

The issue raises the question why the ministry had been so adamant about the July 1 deadline.

The ministry initially wanted an earlier compliance date, but this was pushed back by one year, ostensibly to give highway concessionaires some 'grace period' to adopt the single system.

However, a bigger issue may arise from the government's adoption of the single electronic payment system based on SmartTAG.

Highway users with SmartTAG system face heftier costs compared to card readers used by competing systems like Fastrak and Express Tag.

SmartTAG card readers - an infrared reader - currently costs RM220, but after July 1, Rangkaian Segar will be lowering this to RM190.

Still, the lowered price remains more expensive than Express Tag and Fastrak card readers - both microwave readers - which prices have hovered between RM30 during special offer periods and the RM100 standard price.