Malaysian Government Initiates Negotiations with Toll Concessionaires for Highway Toll Restructuring

The Malaysian government has taken steps to restructure toll collection on 19 highways, following a Cabinet decision made on December 18, 2020. Deputy Works Minister Abdul Rahman Mohamad revealed that negotiations with highway concessionaires are underway as part of the toll restructuring initiative.

The highways involved in these negotiations include Amanat Lebuhraya Rakyat Bhd (ALR), Projek Lintasan Kota Holdings Sdn Bhd (Prolintas), IJM Corp Bhd, ANIH Bhd, and PLUS Malaysia Bhd. The objective is to address toll-related concerns, explore sustainable toll solutions, and ensure a fair arrangement for both concessionaires and the government.

While Deputy Minister Abdul Rahman did not specify which highways are currently being negotiated for toll restructuring, it is expected that the discussions will cover various aspects of toll collection and concessions.

Negotiations for other highways, including the East Coast Highway Phase 2 (LPT2), are also ongoing but may require more time to finalize due to the involvement of multiple stakeholders, including the government, concession companies, and financial institutions.

The restructuring of toll collection agreements is aimed at finding a balanced approach that takes into account the interests of all parties involved. Toll rates, concessions, and other related terms will be thoroughly discussed during these negotiations.

Abdul Rahman emphasized that any proposals to restructure concession agreements must go through a rigorous process of discussion with the concessionaires and approval from the Ministry of Finance. These decisions should be made comprehensively, considering their financial implications, the need to maintain investor confidence, and the concessionaire’s responsibility for highway asset management and costs.

While addressing toll-related concerns is a priority, the government also recognizes that any toll abolishment or restructuring must be carefully studied due to its substantial financial impact. It has been estimated that a nationwide toll abolishment could cost approximately RM400 billion.

In the past, the government has absorbed significant costs to prevent toll increases, reflecting its commitment to addressing the toll issue. For instance, in 2022, the government absorbed around RM435 million in exchange for no toll increases.

Additionally, Deputy Minister Abdul Rahman expressed gratitude to Prime Minister and Minister of Finance Datuk Seri Anwar Ibrahim for approving the toll waiver during the Deepavali celebration. The toll-free period nationwide for Deepavali involved a total cost of RM30 million.

The toll restructuring negotiations represent the government’s effort to find a sustainable and equitable solution to the toll-related concerns on Malaysian highways, balancing the interests of all stakeholders while ensuring the country’s infrastructure remains well-maintained and financially viable.

 

 

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