Stunned by the drastic toll rate hikes last year? It looks like there could be more on the horizon, as the government will soon decide on whether it should allow the rates for eight more highways to be increased, according to The Sun.
The English language daily quoted Sin Chew Daily – in the latter’s report, works minister Datuk Seri Fadillah Yusof said that to maintain the toll charges at the current rate, the government would have to compensate the concessionaires, and such huge payouts will burden the government with long-term debts.
He added that the government is facing a difficult decision with regards to this issue, as there are only two options it can take under the toll restructuring plan – allow the rates to increase and make motorists pay more for using the highway, or to foot the heavy cost of compensation.
Fadillah went on to say that the concessionaires were allowed to increase the toll rate on eight highways – the North-South Expressway (PLUS), Second Link Expressway (Linkedua), Shah Alam Expressway (KESAS), Damansara-Puchong Expressway (LDP), Butterworth-Kulim Expressway (BKE), Seremban-Port Dickson Highway (SPDH) and New North Klang Straits Bypass Expressway (NNKSB) – on January 1 this year, according to the agreements signed with them. The LDP had already seen a hike last year.
If the government ends up blocking the rate increases, it would have to pay compensation amounting to some RM593 million to date. “If the government delays in approving the toll hike, the amount (of compensation) will keep increasing every year. In other words, it will become a long-term debt for the government,” Fadillah said.
The minister added that between 2008 and 2014, the government had rejected requests to increase toll rates by highway concessionaires, resulting in the payment of more than RM2.2 billion in compensation – which he said was done out of consideration of the welfare of road users.
Fadillah declined to give any details as to whether the toll rates will go up after the government’s negotiations with highway concessionaires is concluded soon, adding that the committee tasked with negotiations will submit its report to the cabinet for a decision after the talks are completed.
Last year, a total of eighteen highways across Malaysia saw toll rate hikes, all on one day, October 15. These include AKLEH, Besraya, DUKE, Grand Saga, Guthrie Corridor Expressway, Kajang SILK, Karak, LATAR, LEKAS, LKSA, MEX, NPE, SMART tunnel, Senai-Desaru Expressway, SKVE, Butterworth Outer Ring Road (BORR), Sprint Expressway and the LDP.
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WTH! Same old excuse to hike the tolls everytime!
No needed to THINK. Just raise all tolls to actual price, do included Petrol actual price. ALSO pls apply same stadard to car price, which only 6% GST should applied to goods purchase.
they should increase the toll rate every six months. with less drivers on the road i can enjoy my jam-free ride daily.
Not hiking the toll, where got money to balance the RM1.5bil paid to Proton?
Penang toll, Putrajaya also toll
Thanks gvment really appreciate it…no reason not to raise the toll rate since everything else is increasing anyway
Okay,congratz rich guy.
Ayiah, just double the toll, fuel price and road tax la! as part of transformation program.
What to do…the govt has to do it bvoz tokong asked for 3rd bridge to be buiilt and govt has got to find a way to finance it…if tokong can build it under market value then no need to raise toll lor…then everybody happy lor…
kipidap, buy more cars.
Ribu ribu tahniahh !!
What’s new with this idiot govt ? Sign lopsided contract just to enrich their families while the rakyat get screwed over and over.
Thank you Barang Naik Govt !!!
Datuk Seri Fadillah Yusof, ask ur boss why the burden had to be transfer to the people..
That’s it; they need to go down @ next GE.
Hurrayy..let’s the ‘parties’ begin!
Hoping for at least one by election per month to stop fuel and toll hikes..
Don’t worry, we have to raise tolls. When you have to rent a private jet for RM98 million, Government now has no more money to help the rakyat.
Pitiful. Government already got 7 jets for VIPs in their hangar bay, but still want to pay RM98 million to get a private jet.
Where’s the Red “dignity” now??? Protek protek? When Rakyat suffer they just know how to protect “The billionaires” !!! Cronies keep on getting richer and richer… Rakyat when will you wake-up?!?!
And we don’t know yet how much was in those huge baggages being loaded on board. Receiving award? Looks more like preparing to bail in case can’t survive until GE14.
Off course. No announcement before the “buy-election”…
hehehe…need to fill up some dried pockets with leaking lubang
why dont they just impose a toll levy on motorbikes. That way every road user pays.
Yea, like that only fair mah. Motorbikes also ride on the express lane nowadays.
looks like my money goes to private jet bill
I suggest the govt takeover these toll operators. Privatization doesn’t work in Melisia.
Err, Fadillah,
Can you please consult Mininstry of Communication ke, Finas ke, RTM ke, Media Prima ke.
It seems we are hearing the same dialogue time & time again.
Its like watching P Ramlee movie, I can even memorize the dialogue very well.
this gov so ineffective…during my days want raise toll i raise only la…waste time for what
Life’s definitely good for Malaysian Expressway concessionaires ! Standard SOP, setup a RM 2 shell company, with the usual crony cohorts, bid for the one of the many highway projects, and draw up ridiculous concession contracts with the government, win the contract, and the most if not all of the financing will be provided by local banks, once the highway is completed, and then the milking starts for the next 20-40 years, depending how ridiculous the verbiage of said contracts are written, which doubt will ever have any provision for performance guarantee or exit clauses…to protect the end users, bottom line, for the Malaysian Highway saga….the Crony cohorts, ‘chosen’ Government Servants and Works Minister, Bent Legal Eagles and Banks are the Ultimate Winners, and the Losers footings are the Rakyat….typical!!
Seriously? fxxx the gov big time!!! so fxxxxxx sick of it! “not raising the toll rate….gov has to compensate…” screw whoever that signed such ridiculous contract!!! or it could just be an excuse without this term even being spelled out in the contract in the first place!
you gotta thank mahathir and anwar for that. They were the one responsible in approving the concessionaire contracts ages ago. And of course these were done to ‘help’ their friends. Nothing much can be done as the contract has been signed a loooong time ago.
No big fan of Dr.M but do you see a difference in the new concessions that are being signed after his tenure?
“If the government ends up blocking the rate increases, it would have to pay compensation amounting to some RM593 million to date.”
If we shun this government, we may be able to avoid rate increase.
You have a choice.
Always same reasons, don’t raise tolls have to compensate the concessionaires. Sickening. Why in the first place they add in these clauses to benefit them and not the government. Something is not right and the concessionaires ( who are they-board of directors or whatever )are the ones benefitting. We the Raakyat
are the losers, always.
This govt really cannot pakai. Expensive housing issue until now cannot settle go raise toll.simply because got some few people still afford.raised toll now la cakap lagi.. a few people can afford.. same goes with housing.. this mb johor says low cost housing is like slum in big town jb. Wtf. Malaysian really fcked up now.food expensive.rent expensive.public bus expensive and cincai.people got out work at 6 and took 2 hours to workplace.taxi expensive.why you guys still driving when toll everywhere? So rich? Buy car then say enpensive.dont buy la.less traffic jam.take lrt train bus taxi.then eat roti until you die. 600 can find salary in kl.this useless govt should not raid people stall at roadside.at least they dont have to work long hours for small pay.they can earn more from selling at roadside. Useless govt.
Yezzaaa, finally a toll hike, cant wait!!! less cars on the road..less jam, less accidents, less injuries!!
Actually why tell us all the bullS**T story. Just say la government no money because of Election Goodies/Feebies and Petronas. Isn’t that easier to understand.
Don’t like then please leave.
Macam MP BN, the country not belong to you alone .
Always singing the same song.
Better to just compensate the toll operators until the contract ends since its using tax payers’ money anyways.
Better yet just pay off the toll operators and lower the toll rates till the sum is recovered.
The people can’t possible be the victims of a guaranteed profit scheme.
Good news for rakyat , after this all government sector got extra money to spend , do all function at 5 star hotel , training , meeting etc
Don’t use the toll road and stary using federal road to save money
Please lah, do not hike toll fares.. Government just have to compensate the concessionaires.. Malaysian Gov are so rich, even IMF and WORLD BANK write that.. Just compensate them.. Or maximum toll hike below 1% every year..
Hike, users pay. No hike, Gomen compensates with taxpayers money. Either way we are screwed.
attn: sungai besar and kuala kangsar voters
This pondan govt what to condem
Yuk
Please raise the toll higher & let the prices of things & food rocket upwards…its the only effective way to teach govt supporters a lesson.
What kind of lousy lawyer become minister of works. Yes man only in front of highway concessionare. Shame on you Fadilah!!!
Thanks for the voters for BN. They seem to like being screwed harder everytime anytime.
BN should raise toll samor….so these voters can feel more of the screwing……The harder, the better.
The invester should be laughing and say: “hey,see those poors are crying. Haha, nice show.”
Their wife want buy new cincin again….