SmartTAG (acronym in Malay for Sistem Membayar Automatik Rangkaian Tol or "Toll Network Automatic Payment Systems") is an on-board unit (OBU) vehicle-based device used as an electronic toll collection (ETC) system over long distances (maximum 15 metres) to complement Touch 'n Go, a card-based system. It was first introduced in Malaysia in 1999 and is also used as an Entrance Access Security.
SmartTAG was designed, developed and manufactured by Teras Teknologi Sdn Bhd as an extension of the Touch 'n Go system, initially as a replacement of PLUS TAG. It is being marketed by Touch 'n Go Sdn Bhd (formerly Rangkaian Segar Sdn Bhd).
The intellectual property right to the SmartTAG belong to an Austrian company known as EFKON Gmbh. The president of EFKON, Dr Helmut Rieder, was the one who set up a joint venture with UEM to form Infrared Advance Technology Sdn Bhd (IRAT).
The SmartTAG is currently priced at RM130 per unit inclusive of free Touch 'n Go card with RM10 reload value. This is a subsidised price as UEM has to pay royalty to EFKON for each SmartTag assembled by IRAT.
Built on a non-stop Electronic Toll Collection (ETC) philosophy, SmartTAG incorporated infra-red communication 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.
Prior to the introduction of SmartTAG, several different types of non-stop ETC were already being used in Malaysia:
SmartTAG was officially launched on 15 March 1999, phasing out PLUS TAG at over 20 plazas of Projek Lebuhraya Utara-Selatan (PLUS) / North-South Expressway.
In December 2003, Minister of Works, Datuk Seri S Samy Vellu directed the implementation of a single ETC nationwide as a form of standardisation and convenience of use for road users. The directive requires all major toll operators in Malaysia to have a minimum of 2 Touch 'n Go and 1 SmartTAG lanes per direction at every plazas. The directive was gradually implemented by all major toll operators on 1 July 2004 and marked the cessation of other types of non-stop ETCs in Malaysia.