Abolishing tolls not feasible, says minister

The Sun

6 days ago

PETALING JAYA: Abolishing highway tolls is not a simple solution as it would require the government to set aside billions of ringgit for highway maintenance and infrastructure, Works Minister Datuk Seri Alexander Nanta Linggi told the Dewan Rakyat yesterday.
Replying to a supplementary question from Besut MP Datuk Che Mohamad Zulkifly Jusoh, Nanta said the funds could be better allocated to develop infrastructure in states with limited highway access, such as Terengganu, Kelantan, Sabah and Sarawak.
'It's not an easy move. If tolls are removed, the government must bear the cost of maintaining these highways and that figure runs into the billions.'
He added that a more realistic and sustainable approach would be to reduce toll rates once highway concessionaires have recovered their return on investment (ROI).
Nanta's remarks came in response to a question about the government's 2022 manifesto pledge to abolish tolls. In the lead-up to the 2022 general election, Pakatan Harapan promised to eliminate tolls on the North-South Expressway (PLUS) if given the mandate to govern.
However, Nanta said a complete removal may not be necessary if concessionaires have already recouped their investments.
'Once the ROI has been achieved, we can revisit the rates, particularly if they are burdensome to the public.'
In a related development, Nanta said the government's move to postpone toll hikes at 10 highways is expected to benefit close to one million users, particularly Class 1 vehicle drivers. (Class 1 is the category for trucks, lorries or large and heavy commercial vehicles).
He said the decision followed a significant gap between current toll rates and those outlined in concession agreements which permitted increases ranging from 50 sen to RM4.56, or a 79% to 83% hike.
'For example, on the MEX Expressway, the toll rate set for 2025 is RM6.90, but users are currently paying RM3.50 per trip. That's a saving of RM6.80 for a round trip. Over 20 working days, that amounts to RM136 in monthly savings, or RM1,632 annually.'
Nanta was responding to a question from Pekan MP Datuk Seri Sh Mohmed Puzi Sh Ali on the potential impact on motorists had the toll hikes not been deferred.
On July 23, Prime Minister Datuk Seri Anwar Ibrahim announced that the government had agreed to postpone the planned toll rate increases as part of an 'announcement of appreciation for Malaysians', allowing users to continue paying the current rates.
The highways included in the deferment are the MEX Expressway, South Klang Valley Expressway (SKVE), Senai–Desaru Expressway (SDE), Duta–Ulu Kelang Expressway (DUKE) and Kuala Lumpur–Kuala Selangor Expressway (Latar).