It’s something not many road users take into consideration, but when toll fares are stable, and when there aren’t any price hikes, it’s because the federal government is compensating toll concessionaires with public funds. It’s not a great situation, and there’s just one real winner – the toll firms with their black and white agreements.
How long can the federal government proceed to soak up the difference within the toll fares charged to the rakyat versus the actual rates the concessionaire can legally charge, based on their concession agreements?
Works minister Datuk Seri Alexander Nanta Linggi said any decision should be made by the cupboard, explaining that the matter involves broader financial and policy implications for the federal government, and that the present suspension of reviews is meant to keep up existing rates to ease the burden on the general public.
“Because if it’s based on the agreement, these toll rates are due for a review upwards, meaning toll rates would increase,” he said today, reported by Bernama.
“Because the public should still be burdened with rising living costs, the federal government is currently holding back and asking firms to postpone any upward review of toll rates. The general public should understand that when toll hikes are deferred, it’s the federal government that pays,” he added.
Recently, it was reported that toll compensation has cost the federal government RM7.7 billion since 2016, and RM591.56 million from the general public purse has been allocated to forestall toll hikes on 10 highways this yr.
“We’re essentially subsidising private vehicle use on the expense of all Malaysians, including those in rural areas, public transport users and households without private vehicles. For motorists, the profit is immediate and visual: no toll increase. But is that this probably the most effective use of limited public funds at a time when Malaysia’s transport system, and its public funds, are under increasing pressure?” said MY Mobility Vision co-founder Rahman Hussin.
“While you have a look at the compensation figures, they may easily fund 1000’s of additional day by day bus trips in major urban corridors for a yr. This money may be used to expand feeder services that determine whether public transport is viable for working households. As an alternative, it’s deployed as a recurring operating expense, one which stabilises toll rates without expanding transport capability or reducing long-term demand,” he added.
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This Article First Appeared At paultan.org
