Gateless MLFF toll fare collection could start by 2027, highway concessionaires free to choose own partners

Barrier-free toll collection, or multi-lane fast flow (MLFF) toll collection on highways in Malaysia could be implemented in 2027 according to works ministry secretary-general Datuk Seri Azman Ibrahim, reported the New Straits Times.

The proposed MLFF system was still pending cabinet approval, and discussions with highway concessionaires cannot proceed until a formal decision is made, the works ministry secretary-general said.

“We already have a draft outlining the parameters required to streamline the system. But until a cabinet decision is reached, we cannot engage with the concessionaires. We want to avoid the risk of being charged before anything is finalised,” Azman was quoted as saying in a transcript of a Public Accounts Committee (PAC) proceeding on May 20 which was released yesterday, according to NST.

The projected 2027 timeline took into account the need for stakeholder engagement, the request for proposal (RFP) process by the concessionaires and the establishment of a regulatory body to oversee the initiative, the works ministry secretary-general said.

“Taking all these factors into account, the earliest possible implementation would be in 2027,” Azman said, adding that the MLFF system, once rolled out, must be fully concessionaire-led, without any government funding, and must not result in toll fare increases.

Gateless MLFF toll fare collection could start by 2027, highway concessionaires free to choose own partners

The latest report by the PAC also revealed that the works ministry has proposed allowing highway concessionaires to implement the MLFF toll fare collection system through a business-to-businses (B2B) model, reported The Edge Malaysia.

“Under this [B2B] model, the concession companies can invite any firm and issue a request for proposal (RFP) to carry out the project. That is what we have proposed to the Cabinet,” Azman was quoted as saying during the PAC proceeding on May 20. Azman also said that the government will not proceed with the previously proposed model of implementing “concessions on top of concessions” for the MLFF system.

“We are proposing a B2B approach, and it will be up to the concessionaires. Whether they choose to appoint a company directly or collaborate with others, it is entirely their decision. They could even set up a special purpose vehicle (SPV) to help implement the project — there are many options. We will leave it to the concessionaires to decide,” he said.

The PAC report cited Azman as saying that the appointment of KJS-SEP Synergy had lapsed last year, after it had failed to obtain agreement from the highway concessionaires.

In December 2023, a total of 32 highway toll concessionaires in Malaysia protested the government’s move to directly award multi-lane fast flow (MLFF) project to KJS-SEP Synergy, a company linked to YTL Corporation. The awarding of the project, valued at RM3.46 billion, was done without consulting the highway concessionaires who will eventually foot the bill.

In October 2023, The Edge Malaysia reported that resistance from highway concessionaires was due to concerns for leakages that could affect toll fare collection, and a source questioned the ability of a third-party collection in sustaining the low rate of leakage from a barrierless toll system.

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