In recent years, public transport systems in Malaysia have undergone a significant transformation, particularly in the realm of transit ticketing. With a focus on enhancing convenience and accessibility for commuters, transit agencies have introduced various innovations and developments that have been reshaping the landscape of how people travel across the country.
While the Touch ‘n Go smart card currently dominates the cashless and contactless ticketing environment in the country, the Government of Malaysia is trying to end its monopoly. In line with this policy, transport operators are exploring the use of alternative ticketing methods, including open-loop systems and quick response (QR) code ticketing.
Existing landscape: The monopoly of Touch ‘n Go
The most commonly used mode of ticketing in Malaysia is the contactless smart card, especially the Touch ‘n Go card, which allows riders to pay for multiple modes of transportation, including buses and trains, with a single card. The contactless smart card allows for swift transactions and eliminates the need to carry cash or to purchase individual tickets for each journey.
Additionally, mobile ticketing apps have gained popularity in recent years, allowing commuters to plan their trips, to purchase tickets, and to access real-time travel information from their phones.
The Touch ‘n Go e-wallet also provides a way for commuters to pay for rides. The payment system uses near-field communication (NFC), which allows users to make payments by tapping their mobile phones at the fare gates. Figure 1 shows the existing modes of transit ticketing in Malaysia.
Figure 1: Existing modes of transit ticketing in Malaysia
In early 2023, the Government of Malaysia proposed to end the monopoly of the Touch ‘n Go card in the country’s transport system and to provide passengers with other options to pay their fares.
Rise of open-loop fare payments
The adoption of open-loop fare payments presents a significant opportunity for transport operators in Malaysia to improve convenience, enhance efficiency, and increase customer satisfaction while gaining data-driven insights for better decision-making. The KLIA Ekspres and the KLIA Transit ERL are the only rail services in the Klang Valley that currently support contactless card payments.
In 2020, Rapid KL and Payments Network Malaysia Sdn Bhd (PayNet) trialled the use of MyDebit card payments at selected LRT stations, but the system was never fully implemented.
In March 2023, the Ministry of Transport announced that it was planning to launch alternative contactless payment methods such as credit and debit cards besides the Touch ‘n Go card. The initial deployment will focus on key operators that account for the largest passenger volumes, including Prasarana Malaysia Bhd and the Keretapi Tanah Melayu Bhd (KTMB). Smartphone-integrated options such as Apple Pay, Samsung Pay, and Google Pay will also be available. Figure 2 illustrates the development of open-loop payment systems in Malaysia.
Figure 2: Timeline of the development of open-loop payment systems in Malaysia
The design and development of the open payment system on Prasarana Malaysia’s lines will begin in March 2024. By February 2025, around 50 per cent of the gantries at each station will support credit and debit card payments while the remaining fare gates will be upgraded by August 2025. Payment through QR codes will be introduced in the future.
In November 2023, the KTMB commuter network started accepting domestic-branded debit cards/MyDebit cards and credit cards at all 57 KTM stations in the Klang Valley. Support for Apple Pay and Samsung Pay transactions will be implemented in 2024.
Need for 5G coverage
To accept bank cards, the fare terminal has to be connected to the internet to authenticate and complete the payment. This means that all train stations, as well as buses, are required to be equipped with a stable internet connection. 5G increases the reliability and speed of transactions and data processing. This high-speed connectivity is key in handling a large volume of transactions in real-time, supporting instant authentication and authorisation processes.
Increasing 5G coverage is essential in ensuring that contactless payments can operate smoothly on city buses as well as train stations.
QR code ticketing
Some operators like Rapid KL are also exploring the use of QR code ticketing as an alternative to physical cards. In January 2023, the Petaling Jaya City Council (MBPJ) announced that all passengers using the city bus service must scan a QR code to pay for fares. This will allow passengers to purchase tickets or pay for fares by scanning QR codes displayed at stations or onboard vehicles using their smartphones. This offers a more convenient and contactless ticketing experience, particularly for people without a bank card.
This requires the passenger to have a stable connection to the internet and sufficient battery life during the trip to carry out all transactions.
Interconnectivity and integration
In addition to introducing more convenient modes of ticketing, the Ministry of Transport is also aiming to integrate various transportation services under a unified payment system. This will encourage multimodal journeys, allowing commuters to switch between trains, buses, and other transit options nationwide without the need for multiple tickets or smartcards. In line with this, a special purpose vehicle, the Land Public Transport Commission (SPAD), was formed to unify transit ticketing across Malaysia.
However, the cost of installing such a system is high, requiring GPS and other technologies to be fixed into the vehicles, especially buses, to determine the fare based on the distance travelled.
Due to the high cost of deploying the system, the roll-out, which was initially scheduled for 2019, has been delayed multiple times. In 2022, the Ministry of Finance announced plans to restart the project. However, the recent focus on open-loop ticketing could result in further delays in the implementation of a national integrated ticketing system in Malaysia.
This integration extends beyond city limits, with initiatives aimed at connecting different regions via intercity rail networks. Projects like the High-Speed Rail (HSR) linking Kuala Lumpur and Singapore have prompted discussions on interoperable ticketing systems, aiming to provide a seamless travel experience across borders.
Challenges and prospects
Despite the strides made in transit ticketing, challenges persist. Issues such as affordability, accessibility for all demographic groups, and managing the transition from traditional to digital systems need to be addressed.
Looking ahead, the future of transit ticketing in Malaysia appears promising. Continued investments in newer technology, partnerships between the public and private sectors, and a focus on user-centric solutions are expected to further enhance the efficiency and accessibility of public transport networks. Under the government’s National Automotive Policy 2020 (NAP 2020), the development of Mobility-as-a-Service (MaaS) will also be prioritised till 2030.
Moreover, advancements in artificial intelligence (AI), data analytics, and smart infrastructure can lead to further advancements in transit ticketing systems. Predictive analytics can optimise service planning, while AI-driven solutions can personalise commuting experiences and offer tailored route suggestions based on individual preferences.
