Highway tolls will not last forever – works ministry

Highway tolls will not last forever – works ministry

The claims that highway users will be paying toll indefinitely with the restructuring of four highway concessionaires are not true, the works ministry said in a statement. Highway concessionaires cannot arbitrarily add on new debts as enshrined in the new agreement involving the recent restructuring, it said.

“The government will always ensure that consumers are not burdened. If this restructuring is not allowed in order that the government can save on compensation, then the toll rate increase has to be given, which will then cause a chain reaction where the cost of goods will increase as well,” the ministry’s statement read.

Prime minister Datuk Seri Ismail Sabri Yaakob announced on April 4 that toll rates on highways operated by the four concessionaires will not be raised until the end of their concession period. The concessionaires manage the Kesas Highway (Shah Alam Expressway), Smart Tunnel, Sprint Highway and the Damansara-Puchong Highway (LDP).

Highway tolls will not last forever – works ministry

A clarification was also made by the ministry on the alleged fixed cost for the construction and maintenance of the highways as well as the extension of the concession period, which has always caused worry for consumers.

“This is a false and misleading statement. The government has never paid or provided allocations in the form of fixed costs for the construction or maintenance of the highways. Construction was done using fund obtained by the concession company through loans or the issuance of sukuk which must be repaid through toll collection, while the operation cost and maintenance is covered through toll collection,” the ministry’s statement read.

The ministry also explained that the restructuring meant that the toll rate would remain the same for a further period, and the government could also terminate the concession period at any time subject to its financial position in order to avoid increases in the price of goods due any increase in the toll rate.

Highway tolls will not last forever – works ministry

Regarding allegations made against the Amanat Lebuhraya Rakyat Berhad (ALR), claiming that it took over highway assets worth more than RM5 billion with capital of RM5,000, the works ministry also clarified the role of the ALR.

“The role of the ALR is solely as the custodian of the four highways. Prospective sukuk investors (or sukuk subscribers) need confidence to invest for returns and as such, the ALR consists of corporate figures who are not affiliated with any political party,” it said.

“This allows ALR with a capital of only RM5,000 to act as “guardian” of the four highways. In addition, since the original shareholders are no more and since ALR is non-profit, then no more dividend payment is required to be made, and which thus allows the toll rate to be maintained at the existing rate,” the ministry said.

Looking to sell your car? Sell it with Carro.

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

Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.



  • longjaafar on Apr 11, 2022 at 11:21 am

    If you want the public to support the proposal, then let everyone see the concession agreements that were signed before…

    Like or Dislike: Thumb up 8 Thumb down 3
  • Sick & Tired on Apr 11, 2022 at 11:28 am

    Ofcourse it wont last forever, it will just last my entire life… and probably my children’s lifetime as well…

    Like or Dislike: Thumb up 3 Thumb down 2
    • The key point is not the concession extension but the freeze in toll rates. Paying toll is a matter of fact, how else will the highway managements maintain it?

      Like or Dislike: Thumb up 0 Thumb down 0
      • komarad on Apr 12, 2022 at 1:08 pm

        government can maintain the highways instead of toll concessions…. just like MRR2

        Like or Dislike: Thumb up 1 Thumb down 0
  • AjibHamidikor on Apr 11, 2022 at 1:21 pm

    Wont be forever?
    So,30,40,50 years..is this too long or short?
    Come on,rakyat now better educated,many with PHDs.
    You throw a stone into a crowd now.You will hit a graduate.
    Until everything is totally transparent,this ALR is just a marketing ploy to tell a one sided story.
    It is insane to simply accept some thing at first glance.

    Like or Dislike: Thumb up 5 Thumb down 5
  • Mr Fakta on Apr 11, 2022 at 2:08 pm

    Won’t last forever, even 999 years is not forever too. A 999 years on land is also called a leasehold. But of course we need tolls to maintain the highway, if not we all will be riding a boat like the Putrajaya–Cyberjaya Expressway (Federal Route 29).

    Like or Dislike: Thumb up 5 Thumb down 1

Add a comment