Teras Teknologi

TERAS was formed on 15 September 1994 by Renong Berhad to address the urgent needs of providing cost-effective, reliable and locally supported Electronic Toll Collection (ETC) as the outcome of Malaysia's large-scale program of public enterprises privatization outlined in Privatization Masterplan (PMP) in 1991. The program had enabled the imposition of tolls on roads previously built by the Public Works Ministry or the Malaysian Highway Authority (Lembaga Lebuhraya Malaysia, or LLM).

Following the incorporation of TERAS, Abd Karim Hercus who was instrumental in setting up Electronic Data Processing Department of Projek Lebuhraya Utara-Selatan (PLUS) was appointed as the first managing director. This in turn enabled PLUS TAG, predecessor of SmartTAG and South East Asia first ETC to be immediately developed through technical collaboration with Mitsubishi Electric Corporation of Japan and PLUS.

In 1996, TERAS created its own internally developed ETC named TERAS Revenue and Collections System (TRACS) which was instantly deployed for Penang Bridge, North–South Expressway Central Link (ELITE) and North–South Expressway (NSE/PLUS Expressways) nationwide highway network of over 800 lanes.

By 18 March 1997, TRACS was enhanced with development and introduction of Touch n Go (pre-paid smart card electronic payment system) at Jalan Pahang Toll Plaza.

The year also marked TERAS first international venture as ETC supplier and integrator for Manila–Cavite Expressway, Philippines.

The period sees TERAS expanded its core businesses and technology diversification in two major areas; ETC and general Information and Communications Technology (ICT) projects.

In term of corporate ownership, the highlight was divestment by Renong Berhad of its 70% equity stake in TERAS to UEM Group for RM11.3 million cash (US$5 million equivalent at that time) in June 1999.

A typical entrance of SmartTAG lanes developed and installed by TERAS on Malaysian expressways.

In ETC area, TERAS upgraded TRACS through the development of SmartTAG (a non-stop electronic toll collection) and completed its national implementation by 15 March 1999 (replacing PLUS TAG) at 20 toll plazas of North–South Expressway (NSE/PLUS Expressways).

Built on a non-stop ETC philosophy, SmartTAG incorporated infra-red communication, a proprietary technology control by an Austrian company; EFKON Gmnbh that communicated with infra-red transceivers mounted at the ceilings of toll plazas to allow vehicle drivers to drive through SmartTAG dedicated lanes and pay toll without stopping. It is designed to process up to 1,200 vehicles per hour.

A joint venture between EFKON, under Dr Helmut Rieder was set up with UEM Group that created Infrared Advance Technology Sdn Bhd (IRAT) to produce SmartTAG related hardware and on-board unit for mass production.

In general ICT projects, TERAS has bid and won contracts to supply total network environments and IT requirements for the Commonwealth Village in Bukit Jalil, in conjunction with the Commonwealth Games hosted by Malaysia in 1998. At the same year, TERAS was also contracted to design, build and equip TIMEdotCom data center in Glenmarie, Shah Alam.

As deterrence for Year 2000 problem (Y2K), TERAS was engaged by nine companies under UEM Group to ensure readiness, through creation of internal operations plans continuity in the event of possible technical glitches caused by the Y2K bug.

For financial year 1999, TERAS revenues breached US$20 million mark with over 140 employees employed. The year also marked the appointment of Akbar Ahmad as the new managing director of TERAS.

Early 2000 global recession gave significant impact to TERAS businesses and translated to negative business growth that lasted until mid-2004.

The negative business growth was attributed by the deferment of further ETC upgrading works at existing highways and of new highway projects in Malaysia and regionally. TERAS was further affected with cost-cutting measure implemented by most organisation where ICT projects were put as low priority.

As counter-measure strategy, TERAS deployed TRACS to other market usages, first as parking automation solution capitalising on Touch n Go platform in 2001. Following that, TERAS Automated Parking System (TAPS) was created and breakthrough was achieved with the first installation of 12 parking sites for Lien Hoe Group. It has grown to over 30 sites within the next 2 years.

In 2002, TRACS technology platform was also deployed to door access system for TIME Engineering, UEM Group, UEM Land, Macroworks, Tenaga Nasional Berhad (TNB) and various other companies; totalling over 100 operational access doors.

These measures enabled TERAS to remain profitable throughout this time-line even with negative business growth.

Configuration of typical electronic toll collection system at toll plazas as provided by TERAS in Malaysian Highways.

The Malaysia's economy pick-up during the period has benefited TERAS with an average of 20% annual business growth.

The Minister of Works, Samy Vellu directive of compulsory minimum 2 Touch 'n Go lanes and 1 SmartTAG lane at all existing and new toll plazas to facilitate highway users ease of travel has positioned TERAS at a higher value.

The north bound entrance of SMART Tunnel on the Kuala Lumpur–Seremban Expressway

Previously deferred highway construction projects also began in earnest. New Pantai Expressway (NPE), Maju Expressway (MEX), Stormwater Management and Road Tunnel (SMART), Duta–Ulu Klang Expressway (DUKE) and Butterworth Outer Ring Road (BORR) resumed and placed their ETC installation orders with TERAS whilst NSE called for third-lanes widening projects, toll plazas relocation and lanes upgrade, further contributed positively to TERAS.

With the realisation of the need to ensure sustainable growth, TERAS consolidated its business activities into three major segments; Transportation, Property and eBusiness.

Mercu UEM utilising TERAS' technology adapted from toll i.e.: SmartTAG parking and Touch n Go access security and attendance

TERAS first foray into property segment technology development was the implementation of resident/visitor integrated manual; Touch n' Go and SmartTAG access with security surveillance at Ledang Heights housing development, Nusajaya in 2005.

The property business segment secured a major US$2.2 million project of Integrated Building Management System with integration of Audio-visual, parking, security access, visitor management and facilities command center of 29-storey commercial office building at KL Sentral Business District, Kuala Lumpur in 2008.

Expanding out from ETC in transportation market, TERAS began development in Traffic Control and Surveillance System (TCSS) and scored major contract worth US$2.7 million with NSE for the setup of NSE Nationwide Traffic Monitoring Center (TMC) at Persada PLUS in 2008.

International market penetration was marked by TERAS completed the delivery and installation of ETC works for Bhiwandi–Kalyan–Shil Phata Road in India worth US$1.4 million in 2008. Similar planned project in Sri Lanka was however shelved.

By end 2008, TERAS effectively controlled 71% of ETC market share in Malaysia with over 1,200 cash highway lanes, 418 Touch n Go lanes, 198 SmartTAG lanes, 90 parking lanes, over 300 access control doors and 1,500 surveillance cameras installed

For the period of 1994–2008, TERAS has delivered a total contract worth US$160 million in 4 countries.

For financial year 2008 (audited in March 2009), TERAS recorded US$17 million revenue realised from US$36 million book order achieved.