PUTRAJAYA could have saved millions of ringgit if it had acquired several highways to reduce toll rates to lessen the burden on the people, said DAP national public secretary Tony Pua.

Instead, the government chose to freeze toll rates and pay compensation to highway concessionaires, which made no financial sense, he said.

The former Pakatan Harapan (PH) government had proposed to buy several highways so that they would be toll-free. 

He said Putrajaya could have used the RM2.25 billion compensation paid to toll concessionaires to improve the welfare of Malaysians, citing Prime Minister Muhyiddin Yassin’s confession that the government is short of money.

“The PN government would have easily saved at least a few hundred million ringgit of the compensation to be paid had it continued with the proposed acquisition of the highways owned by Gamuda Bhd as announced by the Finance Minister for the 2020 Budget.

“In our proposal, Putrajaya would have acquired these highways for RM6.2 billion but it would not have to pay a single sen for it because it will be funded via the existing toll collection.

“As a result, the government (would have) no longer needed to pay these concessionaires any future compensation for ‘freezing’ toll rates – saving a few hundred million ringgit in 2021 alone.

“Over the entire term of the highway concession period, the government would save more than RM5.3 billion ringgit.  These funds could have been spent on the welfare of the rakyat or on new infrastructure projects, instead of being paid to the highway concessionaires,” Pua, who is the Damansara MP, said in a statement.

Last week, Works Minister Fadillah Yusof said Putrajaya would defer a proposed toll hike for the Kesas Highway, South Klang Valley Expressway and Lebuhraya Pantai Timur 2 to year end.

He said the toll hike was to have been introduced was on January 1 and that  the decision to freeze it would cost the government RM2.25 billion.

Fadillah said the government would also continue to defer toll increases on 21 highways and at a toll plaza, which were previously delayed.

The DUKE Highway, PLUS Highway, Damansara-Puchong Highway (LDP) and KL Putrajaya MEX Highway were among the expressways where a toll hike continues to be deferred,” he said.

Pua, who was special officer to former finance minister Lim Guan Eng in the PH administration, said the former government had planned to buy the Shah Alam Expressway, LDP, SPRINT Express and Smart Tunnel.

Pua said these highways contributed nearly half of the toll collection in the Klang Valley.

He said the PN government’s rejection of the plan meant that after it paid the highway concessionaires a massive amount in compensation, the concessionaires would still own the highways and continue to increase toll rates thereby burdening the people.

Puah said if PN had stuck with the PH arrangement, it would have been able to immediately reduce toll rates by 30% and would no longer need to raise toll rates ever again, reducing the burden on the rakyat.  

“In the first year alone, the rakyat would have saved more than RM180 million.

“Instead, because the PN government ditched the plan, these concessionaires still own the highways and will continue to increase toll rates every two to three years.

“If the government freezes the toll rates as expected, then they will be paying ridiculous amounts in compensation to these concessionaires amounting to RM5.3 billion.  And the rakyat doesn’t get any further discounts from the toll,” he said.

Pua said the PN government’s decision showed it lack financial sense and the ability to execute policies in the interest of the people, just like the previous Barisan Nasional government.  

He urged the PN government to revive highway acquisition plans immediately to benefit both the government and the people.

Pua said Finance Minister Tengku Zafrul Tengku Aziz, a former investment banker, must educate his cabinet colleague Fadillah as well as the prime minister to make policies that “make financial sense”. – May 1, 2021.