KLANG Valley road users would have seen toll rates go up by 50 sen to RM2 per trip on four major city highways if Barisan Nasional were still in power.

International Trade and Industry Deputy Minister Ong Kian Ming said this when talking about the Pakatan Harapan government’s proposal to take over the LDP, Sprint, Kesas and SMART highways.

Pundits and analysts have questioned the rationale for the takeover as the concession agreements for some of these highways expire in less than 10 years, after which they would revert to public ownership.   

In a forum organised by think-tank IDEAS, Ong described by how much toll rates would rise in the five years if the government did not take over the highways.   

On the LDP, toll rates would go up from RM2.10 to RM3.10, it would cost RM2.50 from RM2 to use the Damansara stretch of the Sprint Highway.  

On the Sprint Kerinchi link, motorists would have to pay RM3.50 from RM2.50 while toll for the Penchala Link portion would go up from RM3 to RM5.

This would be the reality if there hadn’t been a change of government or if the proposed takeover is not realised, Ong told the audience at the forum, The Next Four Years: What Now for Malaysia?, organised by the Institute of Democracy and Economic Affairs.  

He said the government would save RM5.2 billion by not paying the concessionaires compensation to not raisw toll.

The government could then take that money to acquire the tolls with the promise of off peak toll discounts and no increase in toll rates, Ong said. 

Acquisition of the tolls would also remove the temptation to the government to extend the toll concession contract in lieu of paying compensation.

“This was something that was done by the previous government where the government did not want to pay compensation but instead would extend the length of the concession agreements. This could have easily taken place if there was no change in government.”  
 
Instead, Ong said, the acquisitions will be funded by the proceeds from toll collection, which would have no cost implications to the government or increase the budget deficit. 

“And you will still be able to enjoy discounts during non-peak hours.” – June 28, 2019.