Commuters to save up to RM180m a year with switch from current toll to congestion charge model – LGE

Commuters to save up to RM180m a year with switch from current toll to congestion charge model – LGE

Here’s more on the government’s proposal to acquire highway concessions and abolish toll collection in stages, replacing it with a congestion charge model. The plan is to acquire highways which Gamuda Berhad has a majority stake in – Lebuhraya Damansara Puchong (LDP), Sistem Penyuraian Trafik KL Barat (SPRINT), Lebuhraya Shah Alam (KESAS) and the SMART Tunnel.

Finance minister Lim Guan Eng said yesterday that the government expects the acquisition exercise to take up to six months to fulfill legal, regulatory and financial requirements, The Star reports. He added that initial projections estimate that commuters will save as much as RM180 million per annum with the switch from today’s toll to the congestion charge model.

The proposed takeover of the highways by the government is described as a win-win solution for all parties – the government (which is spending taxpayers’ funds, let’s not forget) and urban commuters.

Commuters to save up to RM180m a year with switch from current toll to congestion charge model – LGE

According to the finance ministry, with this move, the government/taxpayers will save RM5.3 billion in compensation to the toll concessionaires for a continued freeze on toll rate hikes, which they are legally entitled to. In December, Lim said that the government will have to fork out RM972.75 million in compensation to 21 highway concessionaires for them to not raise toll rates in 2019.

As for commuters, we could save up to RM180 million per year and enjoy reduced traffic jam during peak hours. This presumes that a section of motorists will travel outside of peak hours to save on the congestion charge. Any surplus in the collection (revenue collected from the congestion charge will go towards the operations and maintenance of the highways, and repayment of borrowings) goes towards the financing, upgrade and maintenance of our public transport system.

The four tolled highways have 48% market share of the urban toll roads market (excluding PLUS) based on revenue collected, so this would involve many urban commuters. Here’s a recap of the original announcement by the PM’s office, and the leading government figures urging calm and deflecting criticism of the plan.

Looking to sell your car? Sell it with Carro.

Learn more:

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • Avenger on Feb 27, 2019 at 11:53 am

    Rafizi should tell Nobita how’d he saved Rm 400 Billion a year with a switch from current toll to abolishing all tolls immediately, via his formula.

    Like or Dislike: Thumb up 20 Thumb down 0
    • redpilled on Feb 27, 2019 at 11:11 pm

      3 years, kautim 1.2 trillion, then can keep all tall and lofty promises???

      Like or Dislike: Thumb up 2 Thumb down 0
  • Lolwhut? on Feb 27, 2019 at 11:57 am

    This useless minister again? Can anyone trust his calculations after he flipped and flopped with our country’s debts like some roti canai?

    Like or Dislike: Thumb up 30 Thumb down 6
  • We’ll wait and see. Now trust you only 50/50.

    Like or Dislike: Thumb up 13 Thumb down 0
  • Eh Nobita, why not count how much commuters can save if u abolish tolls at more meaningful hiways like North-South hiway, Penang bridges, Tuas 2nd link, and LPT? Saving Rm 180million to rich folks is no big impact compared to saving even Rm 18million to poor lowly paid workers.

    Like or Dislike: Thumb up 18 Thumb down 2
  • Terbaik FM!! Commuters misti la amek Ktm komuter dgn public transportations!

    Like or Dislike: Thumb up 8 Thumb down 3
  • Ben Yap on Feb 27, 2019 at 12:21 pm

    Now PTPTN defaulters can use the toll money saved to pay their study loans.

    Like or Dislike: Thumb up 4 Thumb down 1
  • lilytan on Feb 27, 2019 at 12:26 pm

    If midnight is free and off peak tolls slashed, will the peak hour rates be higher than current rates? I believe so. Other wise they will suffer huge loss.

    Like or Dislike: Thumb up 11 Thumb down 0
  • Manifesto Dicapati on Feb 27, 2019 at 12:50 pm

    Why this sounds like a bait-and-switch scam tactics, I wonder? What’s so difficult to ABOLISH the TOLLS as you have PROMISED?!

    Like or Dislike: Thumb up 21 Thumb down 0
  • shizuoka on Feb 27, 2019 at 1:26 pm

    Its better for him to come out and talk lesser,

    Although excellent rakyat welfare efforts.
    -generous BSH
    -Unlimited RM50 transport pass
    -KTM 20% diskaun
    -RON95 petrol rebate
    -Free car tax holiday
    -incoming no more tolls

    I still BASH no matter what, cuz his not my side.

    Like or Dislike: Thumb up 10 Thumb down 5
  • Sgt Scoop on Feb 27, 2019 at 1:57 pm

    I’d love to save RM180m per year.

    Like or Dislike: Thumb up 1 Thumb down 0
    • Matchy on Feb 27, 2019 at 9:35 pm

      He totally lost the plot. Majority Msians dun care how much the govt savings, but how much $$$ the govt can feeding majority Msians.
      I jangka RM1.8m spending elaun for a household family per year, is a fair amount.

      Like or Dislike: Thumb up 10 Thumb down 0
  • Autobahn on Feb 27, 2019 at 7:46 pm

    Dear mister finance minister, how come only the business community gain the most out of this move, i.e from switching delivery and transportation to night shift, we the majority 9 to 5 workers pau income tax, road tax and sst too. Not fair to use our tax payer money to only benefit a few.

    Like or Dislike: Thumb up 14 Thumb down 0
  • Travel off peak implies we don’t work or go office after peak hrs. It’s better to impose no commercial vehicles entry during peak hrs.cease traffic police for traffic control at critical route esp some towards PJ. Jalan templer etc

    Like or Dislike: Thumb up 1 Thumb down 0
  • We need a congestion charge, it only makes sense.

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required