Malaysia

No toll rate hikes for four highways until end of concession period: PM

Arrangement possible due to restructuring of the companies, says Datuk Seri Ismail Sabri Yaakob

Updated 4 years ago · Published on 04 Apr 2022 2:06PM

No toll rate hikes for four highways until end of concession period: PM
Prime Minister Datuk Seri Ismail Sabri Yaakob says the restructuring of the four companies was expected to reduce compensation costs from January 1, 2022, until the end of the concession period, and enable the government to save at least RM4.3 billion in toll subsidies. – Bernama pic, April 4, 2022

KUALA LUMPUR – The toll rates on highways operated by four highway concessionaires in the Klang Valley will not be raised and will remain unchanged until the end of their concession period due to the restructuring of the four concession companies, Prime Minister Datuk Seri Ismail Sabri Yaakob announced.

According to Bernama, he said the restructuring was implemented in line with the government’s main principle and objective, which was to alleviate the burden of Keluarga Malaysia (Malaysian family), and does not involve financial implications to the government.

“This is the government’s continuous effort to ensure that Malaysian families are not burdened, especially with the increase in toll rates as stipulated in the concession agreement.

“The savings from this move can be utilised for the country’s infrastructure development programme and other facilities that need to be given priority for the wellbeing of Malaysian families,” he said in a statement today.

The prime minister said the decision was made after a detailed study covering all aspects, namely the burden on highway users, the government’s obligations in line with the concession agreement as well as the government’s financial burden.

Ismail Sabri said the government had agreed to the proposed restructuring of the companies namely Kesas Sdn Bhd, which manages Shah Alam Expressway (Kesas); Syarikat Mengurus Air Banjir dan Terowong Sdn Bhd, which manages the Stormwater Management and Road Tunnel (SMART); Sistem Penyuraian Trafik KL Barat Sdn Bhd, which manages Kuala Lumpur Traffic Dispersal Scheme (SPRINT) Expressway; and Lingkaran Trans Kota Sdn Bhd, which manages the Damansara-Puchong (LDP) Expressway.

The prime minister said the restructuring of the four companies was expected to reduce compensation costs from January 1, 2022, until the end of the concession period, and enable the government to save at least RM4.3 billion in toll subsidies.

He said details of the government’s approval for the restructuring of the companies will be elaborated by Senior Works Minister Datuk Seri Fadillah Yusof later. 

In April last year, the government paid toll concession companies some RM2.25 billion in compensation after the operators postponed the scheduled increase in toll rates.

Fadillah had said the decision to postpone the scheduled rate hikes came after taking into account the rising cost of living amid the Covid-19 pandemic. – The Vibes, April 4, 2022

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