No, you can use the SIM in any 4G supported devices, eg. Phone, router, MiFi, etc.
You could take the SIM only, and it doesn't have contract.
12 months contract applied if you take the 4G router for RM1.

Please read carefully "Add on (optional): RM1 with 12-month contract" below the "buy now". Only if you take the 4G router from Maxis for RM1, you'll be tied to a 12-month contract. I don't see any "forcing" like you said.
This plan is RM138: NP. There's an RM30 rebate for 12-month (no contract) = RM108 if you're a Maxis postpaid user. Anyway, you may just visit any Maxis center and walk away with the SIM only free-of-contract.
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BTW, I was using this plan previously. Already terminated it due to changing to Unifi Fiber finally got coverage at my location.