It’s something not many road users think about, but when toll fares are stable, and when there are no price hikes, it’s because the government is compensating toll concessionaires with public funds. It’s not an ideal situation, and there’s only one real winner – the toll companies with their black and white agreements.
How long can the government continue to absorb the difference in the toll fares charged to the rakyat versus the actual rates the concessionaire can legally charge, based on their concession agreements?
Works minister Datuk Seri Alexander Nanta Linggi said any decision must be made by the cabinet, explaining that the matter involves broader financial and policy implications for the government, and that the current suspension of reviews is intended to maintain existing rates to ease the burden on the public.
“Because if it’s based on the agreement, these toll rates are due for a review upwards, meaning toll rates would increase,” he said today, reported by Bernama.
“Since the public may still be burdened with rising living costs, the government is currently holding back and asking companies to postpone any upward review of toll rates. The public should understand that when toll hikes are deferred, it is the government that pays,” he added.
Recently, it was reported that toll compensation has cost the government RM7.7 billion since 2016, and RM591.56 million from the public purse has been allocated to prevent toll hikes on 10 highways this year.
“We are essentially subsidising private vehicle use at the expense of all Malaysians, including those in rural areas, public transport users and households without private vehicles. For motorists, the benefit is immediate and visible: no toll increase. But is this the most effective use of limited public funds at a time when Malaysia’s transport system, and its public finances, are under increasing pressure?” said MY Mobility Vision co-founder Rahman Hussin.
“When you look at the compensation figures, they could easily fund thousands of additional daily bus trips in major urban corridors for a year. This money could also be used to expand feeder services that determine whether public transport is viable for working households. Instead, it is deployed as a recurring operating expense, one that stabilises toll rates without expanding transport capacity or reducing long-term demand,” he added.
Looking to sell your car? Sell it with Carro.
