There is still no certainty in highway concessionaires increasing their toll rates in 2016. Despite getting the go-ahead by the government last year, a change of heart may see the authorities confirm otherwise.
A unnamed source revealed to The Star that the government is looking at other ways for highway concessionaires to “rework their financial numbers,” rather than have to bluntly increase toll rates this year.
“The authority has told toll operators to look into other options instead of a toll hike, given the current challenging economic environment. Additionally, compensation is also not favoured for this year because of the government’s tight fiscal position.”
One suggestion made to avoid a toll hike this year is to increase the concession period. This would allow highway operators to charge the same rates, but to do so for a longer period. However, there is the matter of increased maintenance costs to the concessionaires to consider.
Notably, only PLUS Berhad and ANIH Berhad have held back from increasing their toll rates in last year’s rush. As such, PLUS is due to increase its rates for four out of its five highway concessions by at least 5% this year.
The news publication reported that PLUS is believed to have already submitted a toll hike proposal to the government, but has made no formal reply yet.
“The government is committed to safeguarding the interest of all stakeholders, including the rakyat. As far as possible, it is looking at ways of reducing the cost of living for the people,” said an unnamed official close to the government.
Currently, PLUS operates the North-South Expressway (NSE), New Klang Valley Expressway (NKVE), Federal Highway, Seremban-Port-Dickson Highway, North-South Expressway Central Link, Malaysian-Singapura Second Link, Butterworth-Kulim Expressway, and the Penang Bridge. All but the Penang Bridge are expected to face toll rate reviews this year, and every three years from now, as per the prevailing Concession Agreement.
Likewise, ANIH operates the Kuala Lumpur-Karak Highway, East-Coast Expressway 1, and Kuala Lumpur-Seremban Highway. These too are expected to have their toll rates hiked this year. However, all will depend on the Malaysian Highway Authority and the government’s final say.
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