B - Cost of Living B00. Cost of Living

B06. Abolish Tolls

Pakatan Harapan May 10, 2018

Please note these historical updates display when articles associated to this promise were added, removed, or changed. The promise status matches the status of its most recent article, as determined by the article date.

In progress
May 2019

No decision yet on method of reducing toll, says PM

MalaysiaKini May 27, 2019

The government has not yet decided on the method for reducing the toll, Prime Minister Dr Mahathir Mohamad said today. Commenting on former Council of Eminent Persons chairperson Daim Zainuddin’s statement that the government is capable of cutting toll rates by up to 25 percent, Mahathir said there were several suggestions from the private sector to take over the highway concessions but the possible toll rate cut was not up to 25 percent. "We are now facing problems. We promised to abolish tolls, but if tolls are abolished, the government’s burden will increase tremendously. "For example if we abolish the North-South Highway (Plus) toll, the government has to buy over the highway for RM30 billion. Better to use that money to pay debts, can reduce our burden a bit,” he told a media conference after chairing the National Finance Council meeting in Putrajaya. While agreeing with Daim’s view that the people’s support for the Pakatan Harapan government would increase if toll rates are reduced, Mahathir (photo) said: "The people will be relieved for not having to pay the toll but the government will not feel so because toll has to be paid by the government.” On the Malaysian Bumiputera Contractors Association’s call for the government to give bumiputera contractors at least 20 percent of public works in the East Coast Rail Link (ERCL) project, the prime minister said the government would study the matter. "We have decided that local contractors be given jobs but whether they are bumiputera or non-bumiputera has not been decided,” he said. Asked on Hari Raya Aidilfitri incentives for Felda settlers, Mahathir said this question should be directed to Economic Affairs Minister Azmin Ali "We did not discuss Felda (today) but we have discussed Felda many times at other forums and we have other proposals to improve the situation in Felda," he said. The Felda NGO Consensus Council (Majlis Permuafakatan NGO Felda) recently asked the government to consider giving incentives or duit raya to the 112,635 Felda settlers throughout the country as has been done since 2011. - Bernama

Aug 2018

Govt to complete review of toll operators by end 2018 — Works Minister Baru Bian

The Edge August 02, 2018

Putrajaya is reviewing the operation model for tolls and expects the study to be done by year end, according to the Works Minister Baru Bian. He said the review will cover the operation model of future tolls including toll prices. "As it is a big concern to many people, we will try to expedite it. The toll issue is very clear, I think we have made our stand that we are going to review, look at the whole aspect of it, (including) the impact of it, to all the stakeholders," Baru told reporters at the Parliament lobby today. Noting that the abolishment of tolls is a "very sensitive" matter, Baru said the ministry will make a final decision after it is clear on the implications. "We also come to understand that the implication [of the toll abolishment] is huge. If we abolish it all at one go, as the previous government said, it could even cost us about RM400 billion," he said. Nevertheless, he noted that the ministry will not want to rush on this matter. When asked to comment on whether the government is going back on its promise to abolish toll as stated in the manifesto, Baru said: "In the first place, the manifesto committee has a very good intention. It is not the bible, it's not the Quran, but it's a guide for the new government."

May 2018

No toll for KL-Seremban and Salak highways starting June 1

The Edge May 31, 2018

KUALA LUMPUR (May 31): Malaysian Highway Authority (LLM) announced that toll concessions for the Kuala Lumpur-Seremban expressway and Salak Expressway will end midnight today. In a statement, LLM said there will be no toll collection for these two highways at Sungai Besi Toll Plaza beginning 12:00 am June 1 this year. "With the ending of the concession period for the said stretch of expressways, toll payment at all entry and exit at Sungai Besi Toll Plaza will be reduced between 1% [and] 50% (or between 40 sen and RM1.70) depending on the journey distance and vehicle class," the statement read.

LLM said the end of the concessions will benefit nearly 130,000 vehicles using the toll plaza every day. "Users who go through the Sungai Besi Toll Plaza now only have to pay a toll rate based on the distance travelled on the North-South Expressway," LLM said.

May 2018

Toll dilemma

The Star May 18, 2018

In order to nationalise and subsequently end toll charges in Malaysia, the government will have to defray the costs related to the takeover of the expressways’ assets. In addition, the government will also have to assume the debt obligations of the toll concessionaires. In a 2010 study by the Performance Management and Delivery Unit (Pemandu), it was revealed that the overall cost to acquire all highways in the country was about RM383.3bil. However, as noted by CIMB Research, Pakatan Harapan had earlier estimated that the takeover of all highways via the expropriation clause would only cost the government about RM50bil.

According to the Bond Price Agency Malaysia’s figures as at April 23, there was a total of RM55.3bil of outstanding bonds from various toll concessionaires within Malaysia. This means the government would have to pay over RM55bil just to take over the debts of the toll concessionaires in the event of a complete acquisition of toll operators in the country - aside from the cost to acquire the assets.

In a separate report, Maybank Investment Bank Research pointed out that the government would have to pay about RM79bil in compensation, at the most minimal, to acquire all outstanding debt and shareholders’ equity. This is assuming a general 70:30 debt-to-equity ratio.

May 2018

Council of Elders meets EPF, Khazanah heads over toll issue

Free Malaysia Today May 17, 2018

Employees Provident Fund (EPF) CEO Shahril Ridza Ridzuan says a holistic solution is needed to settle the issue of tolled highways. Speaking to reporters after a meeting with the Council of Elders and other stakeholders on the toll issue, Shahril was asked if the aim was to remove tolls within the first 100 days of Pakatan Harapan’s (PH) governance.

“I don’t necessarily think so. I think what we’re looking at really is the right holistic solution for tolled highways. “We have to be mindful that a lot of money was invested through capital markets and there’s a need for some balance in this situation,” he said.

Meanwhile, Khazanah Nasional managing director Azman Mokhtar said he had a “good” hour-long discussion with the council. Speaking to reporters after the meeting, Azman said the discussion was about tabling the facts and issues, and seeing how to address the matter of tolls as promised by the new government. However, he declined to divulge more details.

May 2018

Abolish Tolls

Pakatan Harapan May 10, 2018

Pakatan Harapan believes that the monopoly of these selected concessionaires must be stopped.

The Pakatan Harapan Government will review all highway concession agreements. We will renegotiate to obtain the best value for money for the people so that we can take over the concessions with the ultimate view of abolishing tolls gradually. We believe that infrastructure like roads and highways are the responsibility of the government for the people.

The Pakatan Harapan Government will provide fair compensation to the affected companies. Manifesto reference: Pillar 1; Promise 6; Page 26