Recent toll hikes a necessity, claims Works Ministry

Toll

In light of the recent toll hikes across several major highways, the Ministry of Works (KKR) has issued a statement justifying the need for such a move. According to the New Straits Times, the government has already paid a total of RM1,108.91 million in compensation to highway concessionaires as a result of the delay in imposing toll fare hikes from 2008 to 2013.

For the year 2014 alone, the government had reportedly paid a total of RM402.9 million to concessionaires for the same reason. The Works Ministry believes that the total figure, which sums up to about RM1,511.9 million, could have been channelled to “boost the economy and benefit Malaysians.”

“The government believes the compensation from the postponement of toll fare hikes could have been rightfully used to create multiplier effects to the nation’s economy which can benefit Malaysians people as a whole,” commented the ministry in a statement issued. Additionally, The Star has also reported that the ministry has claimed it chose to defer the increase earlier on to safeguard the welfare of the people.

toll booth

Additionally, the money paid as compensation could have been directed towards the establishment of more schools and hospitals as well as used to resurface existing roads. The ministry also defended the move by stating that only hikes on intra-city highways were implemented and not inter-city highways.

Also, toll rates for buses have been more or less maintained to further encourage the use of public transport. “This could potentially reduce traffic and road congestion,” said the ministry. For a full look at the affected highways and the corresponding updated toll rates, click here.

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Gregory Sze

An “actor” by training, Gregory Sze realised that he has had enough of drama in his life. Following his number one passion (acting was actually number two), he decided to make the jump into the realm of automotive journalism. He appreciates the simple things in life – a simple car with nothing but back-to-basics mechanical engineering and minimal electronics on board.

 

Comments

  • 1btgnaik on Oct 13, 2015 at 10:59 am

    My answer to the Works Ministry response “Pala Hotak Tok Hang!”.

    Well-loved. Like or Dislike: Thumb up 80 Thumb down 1
    • OMG…bullshit concession…always need to compensate…Show me LDP daily collection how much 1st? i dun 1 talk others. What the hell licensed robber king….puiiii

      Like or Dislike: Thumb up 15 Thumb down 1
    • Nonsense Logic on Oct 13, 2015 at 2:10 pm

      Highway already recoup cost, why not give it to JKR take over?

      Like or Dislike: Thumb up 9 Thumb down 0
  • Good Excuse. NOT!

    The people already paid taxes every year, and you also imposed GST on ALL levels of income. Yet it is not enough to pay the concessionaires? Really? There’s not enough money in the government account? WOW.

    I wonder where did the money go*sarcasm*

    Well-loved. Like or Dislike: Thumb up 53 Thumb down 1
  • crazypepper on Oct 13, 2015 at 11:08 am

    i bet somebody needed a new cincin…

    Like or Dislike: Thumb up 48 Thumb down 2
  • Henry on Oct 13, 2015 at 11:15 am

    We all know who is the idiot who knowingly signed such lopsided agreements which the people end up paying for.

    Like or Dislike: Thumb up 33 Thumb down 1
  • Henry on Oct 13, 2015 at 11:19 am

    Please don’t try to justify. The people know very well why they have to pay for such hefty increases.

    Like or Dislike: Thumb up 24 Thumb down 0
  • thepolygonal on Oct 13, 2015 at 11:23 am

    Ok what’s done is done. I think this thing centers around Selangor. What can the government do to help the rakyat? Please built alternative truck roads.

    Like or Dislike: Thumb up 11 Thumb down 0
    • Low Budget on Oct 13, 2015 at 3:31 pm

      Just remember that Selangor State Gomen is in opposition hands and Toll roads are in Federal Gomen hands. So don’t count too much from the Federal Gomen to the Selangor people.

      Like or Dislike: Thumb up 3 Thumb down 0
  • we all knw they will korek left rite centre to repay the debt

    hopefully we dont see increase tax rate in next budget…but u never know

    Like or Dislike: Thumb up 13 Thumb down 0
  • Kancil Hybrid on Oct 13, 2015 at 11:25 am

    Kalau tak nak bayar tol jangan guna lebuhraya.. Beli helikopter.

    Like or Dislike: Thumb up 16 Thumb down 12
  • seancorr (Member) on Oct 13, 2015 at 11:27 am

    Boost my ass got la. Because of this each product n service will go up in price. Only the government in Bolehland will increase everything in a span of one year from the GST to the fuel and then came the 1MDB debt that a certain PM robbed the country of and then came the toll hike. Next will be the price for using government services and maybe add in some spice to the utilities that the rakyat are paying.

    Like or Dislike: Thumb up 19 Thumb down 2
  • i dont understand how these concessions are written..please publish them to public!! the contract seems to benefit the companies only and its not fair to rakyat and government!!

    Like or Dislike: Thumb up 20 Thumb down 0
  • MARY MINAH on Oct 13, 2015 at 11:40 am

    Go ahead and increase. Cost of owning a car per month is very cheap in Malaysia. Cost of parking is cheap too. I can’t stand the presence of too many cars in Malaysia and the attitude of drivers in Malaysia.

    Like or Dislike: Thumb up 2 Thumb down 32
  • azrai on Oct 13, 2015 at 11:43 am

    The things obviously shows the G coffer is in dire state! They cannot fork out money to pay the compensation like they use to. janji dicapati. After this public transport turn. next month, petrol turn.

    Like or Dislike: Thumb up 8 Thumb down 0
  • Kerajaan BN sayang anda, toll naik semua salah LGE

    Like or Dislike: Thumb up 8 Thumb down 11
  • “could have been channelled to “boost the economy and benefit Malaysians.”

    We heard the same story when the oil subsidy was removed.
    We heard the same story when you demand more tax in GST.
    And now you give us the same story again…

    Please tell us in concrete details those money saved or collected go to which specific project that benefits the rakyat vs if no toll hike this project won’t happen.

    Like or Dislike: Thumb up 16 Thumb down 1
  • Gampang on Oct 13, 2015 at 11:50 am

    This has gone too much.. Dun try to justify like the rakyat are some kind of retarded people. The toll hike is nothing new in bolehland but the magnitude of increase is too much. Confirm nk kaut before anything happen.

    Like or Dislike: Thumb up 14 Thumb down 0
  • DonkeyKong on Oct 13, 2015 at 11:52 am

    So, toll rates are going up not because the roads have been widened, service quality has been improved, etc. but because of concession agreements that stipulate toll rates has to go up.. and if the toll rates are not raised, the government has to pay the concessionaires the difference. In order not to burden the government from this stupid arrangement, the concessionaires must be allowed to increase their toll rates.

    In other words, if I sold goreng pisang to some Ministry and in our contract I say that I expect to sell 50,000 fritters a day after a year, and I’ll need to charge RM1 (up from RM0.50) for the fritters by then, the Ministry has to sign this contract. After a year, if they ask me to keep my selling price at RM0.50, they’ll have to compensate me for the RM0.50 per fritter for all my sales and for the projected missing sales.

    How then, can I possibly lose money? How then, can I not get away with daylight robbery? I can jack up my revenue projections as unrealistic as I want, and if I don’t get to raise my toll rates to get me there, the government has to pay me money.

    Forget about Najib, this isn’t his sole doing. All those crooks who are the godfathers of these concessionaires.. the crooks who signed these agreements.. the crooks in the ministries who allowed such agreements to be accepted by the government.. they’re the ones at fault..

    Like or Dislike: Thumb up 31 Thumb down 1
    • peter on Oct 13, 2015 at 7:14 pm

      Don’t forget that all highway concessionaire have taken borrowings and issued bonds to finance the construction of the highways.

      These are all secured based on prescribed interest repayment amounts over a certain period and will most likely be paid on a step-up basis.

      When making the bond issuance, the concessionaire would have made a projected step-up of revenues and also taken into account the various expenses (don’t forget our tolled highways are quite well maintained) as well as the interest repayment sums.

      So if the toll rates do not step-up, how do you expect the concessionaire to repay the bonds? Bonds issued in USD will also be more expensive now to repay.

      And if the interest payments are not met, then we will be looking at more rating’s cut and higher cost of funding in the future. All of this is again ultimately passed on to the consumer.

      Like or Dislike: Thumb up 1 Thumb down 0
  • samyvalue on Oct 13, 2015 at 11:57 am

    Binalah jalan sendiri kalau tak mau bayar tol

    Like or Dislike: Thumb up 2 Thumb down 20
  • Songlap our money got lah.

    Like or Dislike: Thumb up 8 Thumb down 0
  • Then to be fair why not impose toll on motorcyclist as well? Any type of vehicles that uses the highway should pay the price!!!

    Like or Dislike: Thumb up 5 Thumb down 2
    • “dey, you punch me. why not punch my brother as well” is essentially what you are saying. go chase the fakar who punch you in the first place, why ask him to punch other people.

      Like or Dislike: Thumb up 3 Thumb down 2
  • kemosabe on Oct 13, 2015 at 1:06 pm

    Some how the number of increased number of vehicles using the toll roads over the years are not mentioned. Doesn’t this contribute to the profits of the toll concessionaires?

    Anyways the compensation are tax payers’ money as well. Double whammy.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Intra city highway aje yg naik, kata menteri…
    Yg intra city tu le yg hari2 org guna pegi keja balik keja, kata aku yg bukan menteri…

    Like or Dislike: Thumb up 6 Thumb down 0
  • MrPoppyplants on Oct 13, 2015 at 5:16 pm

    They really really think that we Malaysians are so stupid as to believe whatever the hell they choose to tell us?

    It is 2015. Wake the F up, government.

    Like or Dislike: Thumb up 5 Thumb down 0
  • TollSamy on Oct 13, 2015 at 5:57 pm

    I would gladly pay any increased toll cost – if they refunded me the money each time I encounter a traffic jam at the tolled-roads.

    Like or Dislike: Thumb up 5 Thumb down 0
  • I think we should consider ride a bicycle to work. I just did a 120KM in putrajaya fellowship ride and i enjoy it. Lets ride to work, only drive over the weekend with your family. See how much they can squeeze on us, real fartard Government.

    Like or Dislike: Thumb up 4 Thumb down 0
    • dugongx on Oct 14, 2015 at 2:46 am

      BUt you are risking your life being run over by ah beng in myvi SE or dugong or even rempit…anytime can say adios…

      Like or Dislike: Thumb up 1 Thumb down 0
  • dugongx on Oct 14, 2015 at 2:39 am

    Brainless works minister…necessary my ass. Talk with your mouth and not with your ass la. GST alone collected 15 billion in 3 months is enough to compensate for 10 years. What is the funds being used for? To bailout that stupid company 1MDB? So far I don’t see anything that benefit the country and economy. Benefit cronies only

    Like or Dislike: Thumb up 2 Thumb down 0
 

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