Finance minister Lim Guan Eng has defended the 18% toll reduction on highways operated by PLUS Malaysia, saying that the move would save the government billions of ringgit in the long run, according to a report by The Star.
“The value of the discounting factor is more than the previous concession period. We reduced the toll and we do not need to pay compensation, which means the government will save RM28 billion,” said Lim.
“The 18% (reduction) saves the people and the government RM42 billion to RM43 billion. That is a huge amount,” he continued, and claimed that those who criticised the move were “merely making statements without counting.”
Prior to the announcement of the toll reductions, PLUS’ concession period was set to come to an end in 2038, with many parties expressing their interest in acquiring the company. However, the government decided against selling PLUS due to unattractive bids, and instead extended the concession period by a further 20 years to 2058, with the condition of a 18% reduction in toll rates being implemented from February 1, 2020.
In an earlier report by Bernama, Lim said the toll reductions were part of a step-by-step plan implemented by the government with the goal of abolishing tolls in the future. He didn’t provide an exact timeline on the matter but noted that abolishing tolls would take time and is dependent on the state of the national economy.
“If we look at what we mentioned, that this is a gradual step towards the end goal. That’s what was stated in the promises of the PH (Pakatan Harapan) manifesto. But this will definitely take time as we have to wait for the economy to recover,” he said.
However, not everyone is convinced of Lim’s abolishment plan, with MCA president Datuk Seri Wee Ka Siong describing the step-by-step move as “mind boggling.” In The Star’s report, he said, “Lim has claimed that this is a gradual step towards the end goal and that was stated in the promises of the Pakatan Harapan manifesto.”
“This is the beginning of 2020 and the PLUS-owned toll concessions, which had 18 more years to expire, have now been more than doubled to another 38 years (before expiring). It’s a long, long wait and it being described as a step-by-step abolition is hard to swallow,” he continued.
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Now the RM42 billion can be used to build more schools and hospitals for the rakyat.
Previously, all the money was given to the abang2 concessionaire.
They make so much of money at the expense of their own people
Wage bill for Civil servants alone RM130BIL / yr.
We need a better education system because even this basic maths also many cannot understand
Everyday for 6 days a week my wife and I pay a minimum RM10.60 toll to Plus to get to work and back.
That’s RM63.60 a week.
Lets keep it simple and multiply by four weeks, round it up, and get RM255.00 per month.
So for one year I pay RM3,060.00 to Plus just to drive to work and back.
This means for the remaining 18 years until 2038 I will pay Plus = RM55,080.00
Now Guan Eng says I get an 18% discount.
But Guan Eng has extended the toll by another 20 years which becomes 38 years.
So lets take (1 year’s toll minus 18% x 38 years) :
(RM3,060.00 – 18%) x 38 yrs = RM95,349.60 !!
So my choice is between
i. paying a total RM55,080.00 over the next 18 years (the No Changes Option)
ii. paying a total RM95,349.60 over the next 38 years !! (with 18% discount)
You have to include the 10% increase for every 3 years.
you forgot to account for present value of money.
Yup. looks like rm19BillioN Bailout of TH..
Good start. Well done!
Can build more cheap house and bungalow or not. Or get good price
Still waiting gomen to fulfil their election pledges. So far have been very disappointed with them. Not going to vote these liars now
Rakyat dah kena tipu oleh PH lagi. Phuuii!!
All these years, PLUS was making so much of money. All the abang2 in PLUS all had 12 to 18 months bonus.
Easy life and goyang kaki whilst the rakyat suffered. Mostly the kampung people suffered with high tolls because they had to travel back to see Abah and Ibu during festive periods or every weekend.
This is why many were angry at PLUS. They rob their own people
Save what? 42 billion worth of profit that should go to EPF savers for retirement now only comes in the afterlife. One step towards abolishment? It is another 38 years of step back (or back stab).
Why suddenly got save money for government? Previously said government could lost billions if toll reduce / abolishment.. so actually they are hiding the fact..
I believe this goes the same to Petrol price.
The profit PLUS get all these years subjected to G tax also.
Wait a minute.. they just extended the concession by 20 years. How is that a step towards abolishment? Whatever happened to their boast of buying out the concessionaires and nationalizing the highway? Here, they’re extending the concession period. People who think that real savings have been made obviously hasn’t done any NPV & IRR estimates to see that PLUS actually ends up making more in the end.
Yet more BS from our fork-tongued ministers.. sigh..
We want RM0.00, not 18% reduce, that all.
It is near impossible to abolish toll given the cost involved. I didn’t believe PH promises but I still voted them instead of the corrupted BN….
Hmm..simple calculation..
Concession end 2038:
-no toll reduction
-let say im spending RM100 per year for toll
-2038-2020=18
-18xRM100=RM1800
Concession end 2058:
-with 18% toll reduction
-let say im spending RM100 per year for toll
-RM100-18%=RM82
-2058-2020=38
-38xRM82=RM3116
correct me if im wrong..based on simple calculation above do we save/spend more for toll???
Hmm..based on simple calculation..
Concession end 2058:
-with 7% KWSP dividen
-let say im average Malaysian Kwsp RM100,000
-2058-2020=38
-RM100,000×7%=RM700 dividen Kwsp per year
-38xRM700=RM26,600
-RM100,000+RM26,600=RM126K we save more
1)based on 2000-2016 EPF dividend its range between 4.25-6.75..so how blindly confident u are hoping for 7.0 for throughout 38 years???
2)how many of malaysian workers are able to put aside RM100K into their EPF by looking at the almost static salary???
Just my concern..tq
Both of you are wrong.
1st , without contract extension to 2058, PLUS can increase toll price every 3 years under the old contract, if gov dont allow the toll hike, gov will have to pay compensation every 3 years, which will be billions in total.
2nd, u think Plus highway is the only asset EPF holds ? EPF total assets stood at around 800 billions, and EPF equity in plus highway probably only worth 15 billions. Disposing the entire plus shares by EPF wont hurt EPF divided rate, AT ALL.
You are wrong. You need to calculate the 10% increment for every 3 years.
You’ll have been already meeting your Maker by the time 2058 comes. Your children and grandchildren will be continuing the legacy to pay the government more money. When 2040 come, it will be extended again for another 50 years.
Does this extension include no more hikes, if not a progressive reduction, for next 38 yrs? You know, nowadays it’s hard to predict what the top ppl are thinking…if they are thinking at all.
For people with monthly tight budget, reduce toll rate could reduce monthly burden. Although eventually more to pay till year 2058.
You travel more, you pay more. now enjoy 18%
Even then no parent would want to shift the burden onto their children’s generation, they would rather pay and suffer themselves and not to burden their children with such debts and yet this is what PH has done.
a book keeper talks about finance and economy…bs to the lax dude..
You wouldn’t trust your own finances to a failed accountant and yet a failed accountant is running our country’s finances. Well done PH voters!
Interesting to see the arguments above, both sides have highlighted interesting points. But without any contract details, all that we could makeup is assumptions. Hence its best if Paultan could get hold of and write on the previous contract details and also the new one. Only then a better understanding on the extension of Plus highway concessionary could be received.
yay! grandpa, father, son and grandson need to pay toll.
Now, everyone can pay toll.
One step to abolishing tolls. last time vote for PH also is 1 step to abolish toll. now reduce toll also is 1 step to abolish toll. What LGE say cannot believe. there is no way toll will be abolish as PLUS is owned Khazanah and EPF. Both of them are GL and no matter what, government wants to earn from PLUS. In fact this is 1 step for government to tie us down as long as they are in power.
ya..ya..ya..
listen..listen..listen.