Govt to complete review of toll operators by end 2018 — Works Minister Baru Bian
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."
No toll for KL-Seremban and Salak highways starting June 1
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 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.
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 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